Newark City Council recently approved a new budget that includes a property tax hike for residents.
Newark residents will see a 2.5% property tax increase. Based off the 2024 median tax bill of $726, that’s an increase of $18.15. This increase is less than the initial proposed increase of 3.5%.
Councilwoman Corinth Ford says while unpopular, it’s necessary to raise taxes.
"Nobody wants to raise taxes, but the fact is, everyone has to understand that the cost of living has increased. This is now below the latest rate of inflation which is two point six percent," said Ford.
Ford notes last year council had to raise taxes 7.5% because the city had not raised taxes years before that, and if the increase didn’t happen this year, a bigger increase might have been in order next year.
The tax increase will add $120,000 of revenue to the city in 2025.
Councilman Travis McDermott was the only no vote on the tax increase.
"On our tax rate, that we're proposing here, I really think we could have sharpened the pencil a little bit more and gotten it down to a no tax rate this year. I really think that we could have provided a win to our residents this year and we're not doing it. You know, with all of these increases, I think we were probably in a position to say, hey, you know, this year you're not going to get a property tax increase and I think we're missing the mark on that a little bit," said McDermott.
According to the city, staff will go before council with a revised tax rate in the new year based on new assessment totals.
Council also passed a 10.5% increase in electric bills as part of the budget, that includes a 6% increase from the Delaware Municipal Electric Corporation and 4.5% from the city.
As for the budget as a whole, it’s growing by 7%, with an $8.5 million increase in operating revenues and total expenses. It passed unanimously.
