NewsJournal - 5/16/05 "local"

New Castle County residents were supportive but cautious about a proposed 5 percent property tax hike Monday saying the average $16 annual increase seems minimal but could lead to greater burdens.

About a dozen residents took the chance to hear and comment on County Executive Chris Coons' proposed $230.2 million operating budget, which funds day to day expenses. The public has another opportunity at a 6:30 p.m. hearing tonight (May 16,2006) in Wilmington.

County council members are scheduled to vote on the 2007 budget at their May 23 meeting.

"The $16 is a real fair rate," said David Trincia of the Minquadale Civic Association. "What scares me is five years from now, is that rate going to be $64 or $96 because the rate of services has skyrocketed?

"Right now they don't know by the year 2012 how much of an increase we're going to pay" he said.

Coons' proposal includes a 5 percent property tax increase that would raise the average annual tax bill by $16 to $342, an escalation he said the county's growing deficit necessitates.

The change would be about $5 a year for disabled residents and seniors who qualify for property tax exemptions. Coons' plan also includes a 4 percent sewer rate increase that would add $9.36 to the average yearly bill.

No new projects
The proposed budget for next fiscal year, which begins July 1, would increase spending by 7.35 percent, with onethird of that amount going to pay the county's rising energy bills.

The plan, which contains $4.7 million in cuts, recommends no new projects. Nearly three fourths of county government costs are salaries and benefits.

Coons also plans to use $10 million of New Castle County's $80.8 million cash reserves to balance the next budget. He wants to draw down the reserves each year until they are depleted, probably in 2009.

Susan Dubb of Newark hasn't made up her mind about Coons' proposal. She is concerned about other financial burdens residents are facing, including higher school taxes, skyrocketing energy costs and $3 a gallon gas prices.

"Sixteen dollars doesn't seem like a lot, but that doesn't mean it isn't a lot, especially right now," she said.

The operating budget is separate from the county's proposed $58 million capital budget, which mostly pays for construction projects such as libraries, parks and sewers.

Council must approve operating and capital budgets by June 1. The public may view copies of both recommendations on the county's Web site at wwwnccde.org.

Contact Alison Kepner at 324 2965