Dover officials spar over tax increase

Two elected Dover officials verbally sparred with the city's budget writers, pummeling them with questions about a seven-cent tax increase and pay bumps for some employees in this year's proposed city budget.

Councilman William Hare called the proposal to offer $1,250 bonuses and 2-percent pay increases for each of the city's 11 department heads, and a 3-percent increase for the city's non-bargaining employees, a slap in the face.

"We're saying to the people, 'We are going to raise your water rates and fee and raise your property taxes by 21 percent so we can generate $3 million, and oh, by the way, we are going to give a pay increase of 3 percent,'" Hare said.

The proposed 21-percent tax increase raises roughly $2.3 million, enough to plug a hole in the city's $39 million proposed general fund budget. Based on a property's assessed values, homeowners would pay between $36 and $165 more a year.The city's proposed municipal budget stands at about $138 million and also includes hikes to water and wastewater-related surcharges.

Through Monday night's budget hearing, Hare and Councilwoman Beverly Williams argued with city manager Scott Koenig over the proposed increase, questioning its need and saying it would heavily impact those on fixed-incomes

The questioning became so intense that council prematurely ended the meeting, asking Koenig and finance director Donna Mitchell to gather more information about the city's financial balances before reconvening Thursday.

"I know no one is happy with this budget. This is the reality we have to face," said Councilman Sean Lynn while appealing for decorum among his colleagues. "This isn't Donna's fault, or Scott's fault. They are doing the best they can with the cards they have been dealt."

This is not the first time Dover has dealt with a budget deficit and a proposed tax increase. Traditionally, city officials have opted to raid reserves, transfer funds from the city's electrical and water and sewer utility account rather than raise taxes.

Council members asked Koenig to come back Thursday with alternative budgets that would reflect a number of those options.

"We're not going to find one big Band-Aid to fix this," Lynn said. "I think the big Band-Aid is an aggregate."

Contact Jon Offredo at (302) 678-4271 or at joffredo@delawareonline.com or on Twitter @jonoffredo.