BUDGET PRINCIPLES
This budget attempts to comply with the specific fiscal principles that govern budgeting. In
regard to the operating budget, these principles require among other things, that:
- Recurring expenses be funded only from recurring revenue sources;
- Non-recurring revenues shall not be used for normal year-to-year operating expenses because the continuation of such revenue sources is uncertain; and
- The unassigned General Fund Balance should be maintained at a minimum level of 12% of the annual requirements of the General Fund operating budget in order to provide the County sufficient working capital and a reasonable margin to adequately address emergencies and unexpected declines in revenue, without having to rely on short term borrowing.
REVENUE FACTORS
The FY23 adopted budget is based on a real property tax rate of $.48 per $100 of assessed value.
This represents a $.10 decrease in the adopted real estate tax rate. The FY23 General Property Tax
revenue estimate is $11,119,029, an increase of $1,441,063 (or 14.89%) more than the current year’s
estimate.
EXPENDITURE FACTORS
General Operations: The FY23 operating budget reflects incremental changes in various line items
throughout the budget. The largest single expense is allocated for Education. The Sussex County
School Board is requesting $7,749,170 in local funding for FY23 based on Average Daily Membership
(ADM) projections of 1,000 students.
Personnel salaries and related benefits for employees are the second largest expense incurred by
Sussex County. Currently $9,931,684 is appropriated for personnel cost. This proposed budget
includes full funding of Health Insurance premium increase. This will provide 100% funding for
single coverage in the high deductible plan offered.
Capital Budgets: No funds were appropriated for capital projects (Fund 302).
SUMMARY
It is hoped that this budget reflects a reasonable and fair allocation of scarce resources in
attempting to meet the County’s pressing social and economic issues. Additionally, this adopted
financial plan attempts to incorporate some of the Board’s directives within the scope
of available resources.
Respectfully submitted,
Richard Douglas, County Administrator
Made in the U.S.A.