County Council votes down proposed tax increase, passes sewer fee increases

New Castle County Council rejected a proposed 15 percent increase of residents’ property taxes on Tuesday, putting the county's budget-making process in limbo.  

At the same meeting, County Council approved a 12 percent increase to residents' sewer fees. 

But the rejected property tax hike creates a showdown between council members unwilling to stomach the tax increase and County Executive Matt Meyer, who refuses to use government reserves to balance what his administration calculates as a $21 million shortfall.

Meyer has characterized his proposed tax raise as "modest," but opposing council members said the increase was too much. Multiple council members noted that school districts have passed property tax increases recently. 

Councilman Penrose Hollins said "he can't imagine" any "middle-class person working a job" getting a 15 percent salary increase. 

"Some people would refer to this as small," Hollins said. "Fifteen percent is not small in anybody's imagination." 

Councilwomen Lisa Diller and Janet Kilpatrick emphasized they wouldn't support the measure unless it was phased in over multiple years — a proposal Meyer has persistently rejected. 

“There is a more graceful way to do this,” Diller said.

In an interview after the vote, Meyer criticized council members for being happy to approve multi-million-dollar libraries and paramedic stations while lacking the political gumption to responsibly fund workers to staff those assets.

"I understand it is an election year for many council people," Meyer said. "They need to do what is right for their constituents and New Castle County and not choose the political route out of this." 

Meyer has argued that county government should not rely on reserves to pay for basic operations and the county's increased property tax would remain below jurisdictions in neighboring states. His tax proposal would have brought in an additional $17 million in annual revenue.

County officials said the average taxpayer that does not live in one of the municipalities inside the county currently pays $476 in property taxes and would have seen their annual tax bill increase by $71.

Councilman John Cartier said his constituents can afford the hike. 

"They understand we deliver just an incredible value for the dollar and are willing to pay more to support the government,” Cartier said.  

The measure died receiving support from three council members: Cartier and Councilmen David Tackett and Bob Weiner.

It was an uncharacteristically lively meeting of County Council that sowed division between the second-year executive and the legislative branch as dozens of residents took to the floor to discuss the proposal.

Several residents of the Edgemoor Gardens neighborhood spoke about their appreciation for the county's attention there, beckoning council to support for the tax increase. Others noted good being done by county police and paramedics.

"The programs provided by New Castle County are literally keeping the children in my community alive on a daily basis," said Daniel Elkins. "Nobody ever lost votes for saying no to a tax increase, but sometimes we have to do the hard thing."

Likewise, officials from labor unions representing public safety and public works employees warned the council against cutting their workforce. 

In budget presentations throughout the county in recent weeks, Meyer has presented residents with what some have described as "doomsday" scenarios of cuts to county services if the increase wasn't approved. 

Among those cuts are ending proactive policing, closing two major parks like Glasgow or Rockwood, no longer cutting the grass at 207 neighborhood parks and closing a major library like the new, $30 million Route 9 library or the Brandywine Library. 

Council members characterized that talk as "scare tactics." They attacked Meyer's credibility when a last minute proposal was floated while members voiced their uneasiness with a 15 percent increase. 

Kilpatrick interrupted debate on the 15 percent increase saying an amendment to raise taxes 12.5 percent had made its way down from the eighth-floor executive office during the meeting. 

The move didn't garner one vote and infuriated some members.

Councilman Bill Bell said the move was "too little, too late" after months of debate and requests for compromise. 

"This isn't the Price is Right," Bell said. "This is serious business." 

Meyer said Kilpatrick communicated via text message that she was amendable to such an increase, buffered by other revenue from fees paid on real estate transactions. 

"By the time the ordinance was written and got to the floor, I guess Ms. Kilpatrick changed her mind," Meyer said after the meeting.

She did not vote on the amendment. 

With multiple council members' votes still undecided on the 15 precent increase, the amendment might have been the death knell for Meyer's initial proposal. 

The additional revenue to supplement the 12.5 percent increase wasn't discussed on the council floor. This led some to question if Meyer really needs a 15 percent increase to make the numbers work. 

Councilman Jea Street called the move "the epitome of an insult to the (legislative) branch."

The amendment also made county labor representatives unhappy after being warned that drastic cuts would be required in lieu of the full, 15 percent increase. 

Councilman George Smiley said he was ready to vote in favor of the 15 percent increase, but changed his mind seeing the amendment. 

"This doesn't deserve one vote because of the way it was handled," Smiley said.

Meyer denied having a communication problem with council. He said such criticism over the amendment was down to a "misunderstanding with how it was presented."

"That's all I can say," he added.

With less angst, council raised fees that pay for sewer infrastructure and operation on Tuesday. 

County officials have said the average customer currently pays $263 annually for the service and will see that go up about $36. The proposal will bring an additional $6.9 million for the county's sewer fund. 

The sewer hike and failed property tax increase and come as the state's General Assembly is considering giving the county permission to raise taxes on hotels, cap who is eligible for first-time home-buyer tax exemptions and give local government more money to pay for paramedic service.

With those proposals pending, the council and Meyer's administration must now come up with new revenue ideas or make millions-worth of cuts to county services to balance the budget for the beginning of the coming fiscal year on July 1.

County Council has scheduled a special meeting for Tuesday to discuss the budget impasse. 

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com. Follow @Ber_Xerxes on Twitter.