On Friday January 25, 2008 the Budget Committee met with the Town Manager and Finance Director to discuss the budget for fiscal year 2009. FY 2009 runs from April 1, 2008 to March 31, 2009. To review draft budget and other details
Revenue budget highlights are:1. A reduction in revenues from Real Estate Transfer Taxes, Building Permits and Water Impact Fees due to the decline in the housing market. 2. An increase in Real Estate Rental Taxes as the rate increase from 5% to 6% takes effect. This increase was approved last March but implementation was delayed for a full year to allow businesses time to adjust their agreements.3. An increase in Water Department Usage Fees from the proposed rate increase (discussed below).
Operating budget highlights are:1. The General Fund Operating Budget for FY 2009 includes an increase of $18,100 from the FY 2008 budget. The budget for Beach Patrol increased 14% as additional lifeguards will be needed to patrol the enlarged beach. Two full time positions in Public Works, which are currently vacant, will not be rehired at this time. 0% total increase. 2. The Sanitation Department Operating Budget for FY 2009 includes an increase of $16,000 from the FY 2008 budget mainly from the recycling program. 3% total increase.3. The Water Department Operating Budget for FY 2009 includes an increase of $29,300 mainly from increases in the cost of treatment chemicals. 4% total increase.
The Budget Committee voted to support an increase in Water Department Usage Fees. The increase is needed to begin to accumulate funds for the water department’s ongoing and future capital and infrastructure needs.
The typical single-family household uses between 60,000 and 100,000 gallons of water per year. The expected cost increase for these users is $100 to $150 per year. The proposed rates for properties within town limits will result in bills that are on average 14% less then Ocean View’s proposed rates and 43% less then Sussex Shores’ proposed rates. The proposed rates for properties outside of town limits will result in bills that are on average 10% higher then Ocean View and 13% less then Sussex Shores. The next Budget Committee meeting is scheduled for February 29th.