232
Advertisement

This week’s most puzzling development was the lopsided vote against a  property tax increase in New Castle County.

The  County Council handed County Executive Matt Meyer a stinging defeat, while approving a 12 percent hike in sewer bills.

To date, Meyer has been getting good ratings from a business community that had grown tired of the antics of the previous administration. There have also been signs that the administration was making headway on the long-time frames for even routine developments.

Meyer seemed to be at least cautiously confident the tax hike would go through, based on what seemed to be muted response from a  public that likes its parks,  libraries and police.

After all, the property tax increase amounted to about a dollar a week for many households. Most of your property tax bill goes to school districts, although many are not aware of this. Of course, the headlines here and elsewhere focused on the 15 percent figure.

Advertisement

Lurking in the background was a proposed three percent hotel tax that would ease the tax bite somewhat, but would damage a growing industry in the county.

But the New Castle County Council can be a rough and tumble place,  and it is clear its members wanted to reassert their authority.

Based on accounts of the meeting,  there was not a lot of concern about the county being forced to cut services. The feeling was that the dwindling surplus could be tapped.

 Never mind that losing such surpluses can affect credit ratings and worse yet lead to severe fiscal problems during economic downturns.

Perhaps, this was a delayed reaction to Meyer’s predecessor Tom Gordon, who seemed to be able to roll over the council at times and avoid property tax increases through some financial engineering that his successors end up repairing.

One observer noted that Meyer made a rookie error in not counting votes before pushing forward on the proposed tax hike.

Had he pulled the measure, praised the council and engaged in some negotiations, Meyer might have emerged with some of his proposal intact.

With much of the spending already baked in through rising salary and benefit costs, the council is also in a tight spot.

 Kicking the budget can down the road might buy another year, but at some point, reality would intrude.

Meanwhile, Meyer and the council face a July 1 deadline to pass a budget.

Have a great  Memorial Day weekend and take a moment to remember those who gave their lives for our country. The newsletter returns on Tuesday. – Doug Rainey, publisher.

Advertisement
Advertisement