No tax increases, no spending of the county’s general fund reserves, no service cuts or layoffs and a balanced budget for Fiscal Year 2013.
Those were the highlights of the plan New Castle County Executive Paul Clark presented in his budget address to New Castle County Council Tuesday night.
Clark offers his FY '13 New Castle County budget plan
Excerpts of NCCo Executive Paul Clark’s FY2013 Budget Address
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Clark’s total proposed budget – which includes $166.6 million in general fund spending, a sewer fund budget of $71 million and $17 million in capital improvements - represents a 2.1 percent increase in spending over the current fiscal year. The planned general fund budget marks a 1.6 percent increase over the current year’s spending. The sewer fund budget increases by 2.81 percent and requires use of $1.7 million in sewer fund reserves.
“Balancing a budget is not easy in these difficult times,” said Clark in his address. “As soon as Council passed the current budget [FY 2012], we started the process all over again because we faced a $5.1 million [general fund] shortfall for FY 2013.”
That shortfall would have been $7.4 million had it not been for $2 million in concessions agreed to by unions representing county workers last year. To close the remaining $5.1 million gap, Clark is using $1.7 million from real estate transfer tax reserve, $1.6 million from “stale funds” found in old or excess county accounts and $1.8 million in efficiencies - $1.4 million of which came from re-bidding healthcare contracts.
County Councilman George Smiley (D-7th District) “We would have had to dip into the [general fund] reserves” if not for the hard work and sacrifice of county employees. Smiley also credits Clark for making many of the tough choices that make it possible for him to offer a budget that does not raise taxes or cut services.
“We are operating more efficiently than ever, but at current prices, the cost of gas to operate our police cars, paramedic vehicles and construction equipment will escalate by $400,000 next year,” said Smiley.
Clark said that the county also faces other economic factors out of its control, including a housing market that has yet to rebound. Revenues from the county’s real estate transfer tax are only project to provide $16.2 million dollars - or 10 percent of General Fund revenue - in FY ’13. The real estate transfer tax provided $40 million dollars or 26 percent of general fund revenue at its high water mark in 2006.
He added that initiatives aimed at controlling rising health care and pension costs will benefit the county in future years, but do not provide relief in the 2013 budget.
County Council President Tom Kovach (R) believes the county has done some good work in curtailing pension costs, but feels more need to be done.
Clark offers his FY '13 New Castle County budget plan
NCCo officials offer their reactions to Clark's proposed budget
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“Other significant cost drivers have still not been addressed, and I haven’t heard any measures for addressing those significant costs in our upcoming budget,” said Kovach.
Kovach also takes issue with references that this is a balanced budget. “We’ve actually used our [sewer fund and real estate tax] reserve funds, we are increasing borrowing, and we are increasing our unfunded liability.”
Kovach renewed his call for more consolidation of county services and departments in order to reduce spending and do away with overlaps in areas that can be handled by municipalities, or the state.
During his 25 minute address, Clark also stressed his work to make public safety a high priority in his budget plan. The 2013 budget includes the addition of six new police officers with the aid of federal grant money. He also cited capital improvements in paramedic facilities and the addition of eight new 911-call center employees that will soon be added.
Additionally, Clark took time to discuss how he’d like to spend $424 thousand found in a sheriff’s department audit. He proposed the money be used to provide a one-time boost to the county’s Senior Home Repair Program, which helps seniors repair and maintain their homes so they can continue to live in them..
“That the program is funded exclusively through federal grants, and there is a considerable waiting list for these services. I believe we have found a creative solution for the problem,” said Clark.
Clark’s proposed FY ’13 capital budget is significantly smaller than the FY ’12 version. Clark is seeking only $17 million in capital spending. That’s down from $46 million in the current fiscal year. The reduction is mainly because Clark is only seeking $5.7 million for sewer construction and rehab. Clark says because previous work in Brandywine Hundred, Pike Creek, Delaware City and elsewhere has prevented storm water leaks into sewer lines and overflows, saving the county nearly $29 million.
“As recently as last year at this time, our engineers projected we would need almost $35 million for sewer construction in 2013.” says Clark. He credits the $155 million dollars spent repairing the county’s sewer system over the last five years for providing that savings.
The capital budget also includes $4.2 million for libraries, $1.8 million for county parks and $400 thousand for a new paramedic station that will be part of the new Christiana Care emergency center being build in Middletown.
County Council will hold hearings to examine the budget proposal, which needs to be approved by the end of May. The final budget goes into effect July 1.