Taxes won’t increase quite as much as originally proposed in Wilmington following the City Council’s adoption of the 2023 budget Thursday.
Weeks of budget discussions among council members and department heads yielded a reduction in the overall tax increase to 6%, council Finance Committee Chairman Christofer Johnson said.
Wilmington Mayor Mike Purzycki initially proposed a 7.5% property tax increase, but council members sought to reduce the financial burden on homeowners by using additional American Rescue Plan funds to fill the gap.
“Council, wisely, thought it was too much for our residents and we able to come to an agreement of a 6% (tax) increase,” Johnson said Thursday night prior to the budget’s approval.
That means the median homeowner will now see their annual tax bills rise about $40, or $3.35 monthly.
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Council ultimately voted, 10-3, in approval of the revised spending plan adjusted by legislative members.
Council members Shane Darby and James Spadola both indicated they couldn’t support the budget due to “wasteful spending.”
“I just think there are a couple misplaced priorities here, and I’m not able to support it,” Spadola said prior to casting his vote.
Darby echoed Spadola’s sentiments, stressing that council members have more power than others let on. She suggested the legislative body could create a new department, like a housing department, to tackle housing issues in Wilmington.
The original budget anticipated property tax bills for a typical home in Wilmington would increase $52.20 annually, or $4.35 monthly.
While tax increases were reduced slightly, Johnson warned that long-term fiscal issues for the city remain.
“ARPA funds are going to run out in a few years, so we are looking at other strategies – mainly the state legislature and working with the business community to see how we can move forward as a city,” Johnson said.
Purzycki initially budgeted $12 million from the federal funds to help close the budget gap.
Council President Ernest “Trippi” Congo urged members to vote against the budget to send a message to Purzycki’s office in light of what transpired on North Adams Street on Monday and added the city should have used more of the federal funds to avoid tax increases.
“When Mayor Baker joined our team, he brought to my attention – and hopefully some other council members’ attention – that ARPA funds we received should really be used to make up that budget shortfall,” Congo said. “That was the primary intention for the ARPA funds, to support the shortcomings of our budget.”
Beside the adjustment in property tax collections, the mayor’s proposed budget remains largely unchanged, including the elimination of 14 city positions, contractual and cost-of-living increases for employees as well as paying qualifying employees premium pay for working through the pandemic.
Council also approved, albeit reluctantly, Purzycki’s proposed $82.1 million water and sewer budget, which carries a 5% increase.
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