A possible budget deal may be emerging between the New Castle County Council and the County Executive.
Delaware Public Media and other outlets reported the deal would phase in a 15 percent increase in property taxes over two years and comes with a tax credit to cushion the increase.
County Executive Matt Meyer proposed a 15 percent tax increase in the upcoming budget, which must be adopted by the end of June.
Meyer’s budget plan was rejected by the council by a wide margin.
The 15 tax increase would involve about a $1 a week property tax increase for many homeowners.
Meyer had warned that the county was facing a structural budget deficit brought on by dipping into reserves. He also proposed some other revenue changes including a three percent lodging tax.
The General Assembly must first sign off on giving the county the power to levy the tax.
“There is broad agreement between my administration and council members over our proposed expenditures for the upcoming fiscal year,” Meyer stated. “This compromise plan provides the revenue, phased in over the next year, to fully fund the county’s critical public services, balance our budget for the foreseeable future and end the years-long pattern of dipping into tax stabilization reserves to pay our bills. We support this legislation and appreciate the opportunity to engage in productive conversations with members of council over the past several days.”
The County Council did approve a 12 percent increase in sewer charges.
