Sussex County Council Tuesday approved a measure to use more than $12 million in extra funds for continued land preservation, as well as to set up a one-time revenue sharing program for local municipalities.
The action comes as better-than-expected numbers for property sales during the past eight months have boosted revenues for the county’s annual budget, adopted last summer.
Sussex typically runs a surplus, with property taxes in unincorporated areas of the county among the lowest in the nation. The Sussex building boom continued during the pandemic and further boosted revenues.
The county also received federal stimulus funds that cannot be used to lower property taxes.
Taxes fall hardest on buyers and sellers of real estate since Delaware has among the nation’s highest real estate transfer taxes with counties getting a portion of the proceeds.
“The county’s finances are very strong. When you’re lucky enough to be in that position, you should do what you can to help those around you and do some good,” County Council President Michael H. Vincent said. “This is revenue that’s above and beyond, and by setting aside some to protect more open space and the rest for our towns, we’re making an investment in the future.”
Nearly $5.6 million of the funding will be set aside for land acquisitions by the county in the current fiscal year; the balance, in the form of grants ranging from a minimum of $100,000 to a maximum of $500,000, will go to every municipality in Sussex to help offset expenses related to eligible expenses and projects. Municipalities receiving more than $100,000 would have to match the County grant dollar-for-dollar and must use the awarded funds within the next year.
Municipalities will be able to use the funds for items such as public safety, economic development, infrastructure, and capital projects.
Incorporated areas of the county typically have their own police protection. Sussex makes payments for Delaware State Police coverage rather than operating its own county police department.
There has been criticism in northern Delaware over whether the county pays its fair share in law enforcement costs. New Castle County operates its own police department that for the most part provides services in residential areas.
