Sussex County Approves Balanced $285.1 Million Budget for FY 2026

July 18, 2025
1

Sussex County Council adopted a $285.1 million balanced budget for Fiscal Year 2026 on June 17th, 2025, marking a historic first. 

The new property tax rate stands at 2.14 cents per $100 of assessed value (down from 44.5 cents), offsetting increased property valuations and maintaining revenue neutrality. 

This budget increases 7.3% (a $19.4 million rise over FY 2025) and is funded by a blend of taxes, fees, and realty transfer taxes.

County Administrator Todd F. Lawson called it a historic budget, stating that it continues Sussex’s tradition of delivering high-quality services at the best value.

Capital Investments in Utilities

One-time capital expenditures dominate this budget, mainly for utility improvements:

  • $76.7 million earmarked for wastewater infrastructure, including Inland Bays and Wolfe Neck plant enhancements
  • $62.8 million allocated to the Sewer Fund, a 9.3% increase from FY 2025
  • $2.4 million dedicated to new paramedic stations in Dewey Beach, Lincoln, and Milton

Enhanced Public Safety and Community Services

This year’s budget continues its strong focus on public safety and community wellbeing:

  • $6 million investment in local fire companies and ambulance squads for operations and EMT salaries
  • Increase from $4.6 million to $5.8 million for Delaware State Police coverage via supplemental state troopers
  • $1.2 million allotted to municipalities for local law enforcement, an increase from $900,000
  • $1.25 million earmarked for affordable housing programs, including rehabilitation and homebuying assistance

Revenue Sources and Fee Increases

The budget is funded through multiple revenue channels:

  • 36% from Realty Transfer Tax, a 5.7% increase or roughly $2 million
  • A 3.2% increase ($614,000) in property tax revenue due to new improvements
  • Use of $11.2 million in General Fund reserves and $12.6 million in Capital Fund reserves

Several modest fee adjustments were enacted to support operational costs:

  • Sewer fee increased by $12/year; unmetered water rate by $33/year
  • Sewer connection fees now $10,700 (up from $7,700)
  • Sheriff fees adjusted (e.g., summons from $30 to $40); new GIS mapping fee of $50/hour
  • New $500 construction-phase modification fee for sewer engineering

These revenues enable the County to continue funding essential services such as:

  • Paramedics and 911 dispatch
  • Public libraries
  • Building inspections
  • Wastewater treatment
7b1986b0-9dd9-4aea-a65c-5a7db1d76915

Image Generated by AI

Fiscal Prudence with Strategic Flexibility

The FY 2026 budget prioritizes:

  • Cautious assumption of revenue given market volatility in building permits and realty taxes
  • Conservative use of reserves to manage one-time capital needs without burdening taxpayers
  • Focus on long-term goals—economic development, housing, environmental protection, and public safety

Finance Director Gina Jennings and Council President Doug Hudson emphasized the County’s commitment to fiscal responsibility, maintaining services at high quality while respecting the taxpayer’s wallet.

Get Involved

Curious how this budget impacts you? Download the full FY 2026 Budget Book and Presentation on the Sussex County website. 

Stay tuned and follow our blog for more updates on local government, real estate developments, and coastal Delaware news.