FY 2026 Sussex County Budget Proposed – No Increase in Taxes

The Sussex County Council was presented with the proposed FY 2026 budget. The $285.1-million spending plan is a 7.3% increase over the current budget, which is driven by one-time capital expenditures in the sewer capital fund. These expenditures include major upgrades and improvements at the Inland Bays and Wolfe Neck Regional wastewater facilities.

There is no proposed increase in property taxes. Property tax revenue has increased by 3.1% due to newly added improvement values in the assessment rolls and the realty transfer tax is up $2.0-million from last year’s budget. The new tax rate is 2.14 cents per $100 of assessed value – and is based on being revenue neutral. This is much lower than the 44.5 cent tax rate which has stood since 1989.

There are some fee increases – a $12 increase in the sewer service charge and $33 increase in the annual water service charge – both increases cover operational expenses. There’s also a new fee for sewer construction phase design modification. And in the Sheriff’s office there are increases in several fees to cover expenses.

Additional information from Sussex County:

“There’s a lot to take in with this year’s budget, but the bottom line is Sussex County continues to deliver the best services at the best possible value,” said County Administrator Todd F. Lawson, who presented to County Council the proposed budget for the fiscal year that begins July 1. “Through all the change, that’s the one constant our constituents can count on.”

Among the highlights in the proposed FY2026 budget, the proposal includes:

• $76.7 million for wastewater infrastructure, including expansion of two treatment plants, new service areas, increased capacity, and other upgrades to the County utility systems;
• $7.4 million to acquire open space and farmland, preserving it for the future;
• Increased funding, from $4.6 million to $5.8 million, for the County’s contract with the State of Delaware for 25 supplemental state police troopers assigned to Sussex County;
• $2.4 million for the design, planning, and construction of paramedic stations in the Dewey Beach, Lincoln, and Milton areas;
• $6 million for local fire companies and ambulance squads to help with operational costs, including paid EMT salaries;
• Increased funding, from $920,000 to $1 million, for municipalities providing local law enforcement services;
• $1.25 million for affordable housing initiatives, including rehabilitation for low-income households, as well as home-buying settlement assistance;
• A number of fee increases are proposed, including $12 annually for sewer and $33 annually for unmetered water on public utility systems, as well as new and adjusted fees for the Sheriff’s, Geographic Information, and Engineering offices.

Revenue for County government comes through a variety of sources, including property taxes, realty transfer taxes, building permits, and other service fees.

Council President Doug Hudson praised the budget team, including Mr. Lawson, Finance Director Gina A. Jennings, Deputy Finance Director Kathy L. Roth, and Manager of Accounting Andrea Wall for developing the balanced plan. “That’s no easy feat, trying to satisfy a lot of competing interests, but this team always seems to pull it off,” President Hudson said. “It’s not magic. Just good teamwork and expertise. We appreciate it, and I know the taxpayers do, too.”

County Council will hold a public hearing on the proposal during its 10 a.m. meeting Tuesday, June 17, 2025, in council chambers at the County Administrative Offices building, 2 The Circle, in Georgetown. The public can comment on that date, or submit comments through the web at budget@sussexcountyde.gov. By law, Council must adopt a budget by June 30.

CLICK HERE FOR THE FY 2026 BUDGET PRESENTATION

CLICK HERE FOR THE FY 2026 BUDGET NUMBERS PROPOSED