GEORGETOWN, Del. — Sussex County staff on Tuesday unveiled a proposed $300 million budget for Fiscal Year 2027 that includes major investments in wastewater infrastructure, emergency medical services, farmland preservation and affordable housing, while keeping the county property tax rate unchanged.
The proposed budget, presented May 19 by County Administrator Todd F. Lawson, would fund public safety, sewer system expansions and new county initiatives aimed at addressing southern Delaware’s continued growth.
While the overall spending plan increases by nearly $15 million, or 5.2%, from the current fiscal year, county leaders said much of the increase is tied to large-scale wastewater projects. The general fund budget for day-to-day operations would rise by about $4 million, or 3.6%.
The county property tax rate would remain at 2.14 cents per $100 of assessed value following last year’s court-ordered reassessment project.
“This budget is forward looking to a future that presents new challenges for County government, but it continues the past traditions of limited government, disciplined spending, and delivering critical local public services for the best value possible,” Lawson said. “Times and demands may change, but the need for sound financial planning remains.”
New fee to help school districts
One of the biggest proposed changes is a new school construction surcharge tied to building permits. County leaders are proposing a fee of $5 per $1,000 of construction value on most building permits. Of that amount, $4.70 would go to local public school districts, while $0.30 would support Sussex Technical School District.
Based on 2025 permit activity, the county estimates the surcharge could generate roughly $7 million annually. New home construction is projected to contribute about $5.5 million, while townhomes and duplexes would add approximately $830,000 and commercial projects another $550,000.
Cape Henlopen and Indian River school districts are each expected to receive about $2.8 million annually under the proposal. Sussex Tech is projected to receive about $400,000, while Milford, Seaford, Woodbridge, Laurel and Delmar districts would receive smaller shares.
County officials noted Kent County already has a construction surcharge, though its formula differs. Kent County charges $12.50 per $1,000 of construction value and reportedly generates less than $2 million annually.
The proposed budget also includes $74.6 million for wastewater infrastructure improvements, including treatment plant expansions, new service areas and utility upgrades.
Help for EMS
Emergency medical services would receive significant funding increases as well. The plan includes $7.6 million for local fire and ambulance companies to support operational costs, including EMT salaries, along with an additional $1.6 million for a centralized ambulance billing and ambulance purchase cost-share program. Right now, individual fire companies handle billing on their own, often using different vendors. That can mean inconsistent fees and missed revenue. Under the proposal, the county would create a centralized billing system, aiming to improve collections and cut down on administrative costs.
Additional highlights in the proposed budget include:
$7.4 million for farmland and open space preservation;
$6.1 million for the county’s contract with the Delaware State Police for supplemental troopers assigned to Sussex County;
$3.4 million for new paramedic stations near Dewey Beach, Lincoln and Milton;
$1.25 million for affordable housing programs, including rehabilitation assistance and homebuyer settlement assistance;
$1 million for municipalities that provide local law enforcement services.
Several fee increases are also proposed, including an annual $36 increase for sewer service and a $90 increase for unmetered public water service. New and adjusted fees are also proposed for Geographic Information, Engineering, and Planning & Zoning services.
Revenue for county government comes from property taxes, realty transfer taxes, building permits and other service fees.
County Council President Doug Hudson praised Lawson and Finance Director Gina A. Jennings for preparing the spending plan.
“Our constituents benefit thanks to the hard work of these folks, who keep the taxpayers top of mind every budget year,” Hudson said.
County Council is scheduled to hold a public hearing on the proposed budget during its 10 a.m. meeting June 16 in council chambers at the County Administrative Offices building in Georgetown. People can also submit comments online at budget@sussexcountyde.gov.
Council must adopt the budget by June 30.
