Why Should Delaware Care?
Mayor John Carney’s administration is tackling its first Wilmington budget, marking a shift from his fiscally conservative track record as governor. The new plan makes sizable investments in emergency services, parks, and public infrastructure. But it also brings higher property taxes and utility fees, fueling frustration among residents across the city.
One week after the Wilmington City Council passed a resolution asking city officials to reject recent property reassessments, the mayor’s office said it cannot do what the council wants.
Matthew Ford, a spokesman for Mayor John Carney, told Spotlight Delaware on Thursday that the power to revoke new property assessments sits with the city council. He said the mayor shares concerns about what he said were inequities in the recent assessments, “but it is important to clarify that we cannot do what City Council’s resolution is proposing.”
“Only an ordinance passed by City Council can revoke New Castle County’s power to assess values, and then only for the next year,” Ford said in an email.
Last week, criticisms over the recent property reassessment in northern Delaware threatened the passage of Wilmington’s more than $200 million city budget.
In an 8-to-5 vote on May 22, the Wilmington City Council approved new property tax rates despite concerns that the recent property reassessment unfairly raised taxes on homeowners.
The passage allowed for a subsequent approval of Wilmington’s budget for Fiscal Year 2026, which begins July 1.
The city’s budget is based on revenue brought in from several sources, including property taxes.
Last year, New Castle County contractor Tyler Technologies completed a reassessment of all properties in northern Delaware, including in Wilmington. Since then, several residents and elected officials in Delaware’s largest city have claimed that homes were overassessed.
The opinion was widely shared by residents who attended and spoke at last week’s meeting as city council members engaged in a discussion around whether to approve new property tax rates – a necessary step before the council could pass the annual budget.
“The new reassessment is not helping us, it’s hurting us,” Wilmington resident Lourdes Rivera said at the meeting.
Another city resident, Scott Foster, said that a lot he owns was overassessed. He claimed Tyler Technologies assessed its value at $375,000, even though he purchased the property for just $45,000 in 2018.
Multiple council members also criticized Tyler Technologies during the meeting, with Council President Ernest “Trippi” Congo even calling the assessments “evil.”
Critics on the council also argued that a recent lowering of property tax rates did not fix the problem.
The new rates will have residents pay $3.74 per $1,000 of assessed value for their property, while non-residential properties will pay $5.83 per $1,000 of assessed value. An initial proposal in March called for a flat rate of $4.55 per $1,000 of assessed value on all property. Carney’s office made the change in response to resident and councilmember concerns.
Despite the pushback on the property taxes, Councilmembers Latisha Bracy and James Spadola stressed that if the council didn’t approve the assessments and rates, they wouldn’t be able to pass the budget which is due on June 1.
Those comments led Councilwoman Zanthia Oliver to change her position against approving the tax rates, and to instead vote in favor of them.
Ultimately, council members Oliver, Bracy, Spadola, Michelle Harlee, Yolanda McCoy, Chris Johnson, Nathan Field, and Maria Cabrera voted for the new rates.
Council members Coby Owens, Christian Willauer, Shané Darby, Alexander Hackett, and Congo voted against them.
Later in the meeting, the full council considered the city’s budget ordinance, which supporters called a collaboration with the Carney administration that invests in neighborhoods, seniors, and diversity initiatives.
“Look, we’re never going to get a perfect budget, but this one enhances our neighborhoods, enhances home senior home repair program, and enhances our parks,” Councilman Johnson said.
Ultimately, 11 council members voted in favor of the budget, while Congo and Darby voted against it.
The budget reflects a $7.8 million increase in total spending from the previous year, with a nearly $11 million boost in projected revenue for the city.
The approved budget also includes a 20% year-over-year increase in funding for the City Council. Spadola called the sharp increase “embarrassing,” arguing that the council has been calling for fiscal accountability from other city departments.
The approved budget will head to Mayor Carney’s desk to be signed for adoption.
Who should revoke city property assessments?
Following the passage of the budget, Willauer sponsored the resolution that said new property assessments in Wilmington “should not be adopted by the City as they admittedly do not meet well-established industry standards.”
The resolution also urged the city’s Board of Assessment to withdraw certification of the reassessment, and to certify new property assessments “that reflect current fair market values and otherwise comply with constitutional and statutory requirements for tax equity and uniformity.”
The resolution passed overwhelmingly with 12 members in favor. Darby was absent during the vote.
“It’s symbolic of our disgust for what’s happening with this assessment process and with Tyler Technologies,” Bracy said.
In his comments to Spotlight Delaware on Thursday, Ford, from the mayor’s office, also said the city’s Board of Assessment has little power until the city council acts first to revoke property values that had been assessed.
Utility fee Increases
Also during last week’s meeting, council members heavily debated proposed increases to water, sewer, and stormwater fees.
Council members Willauer and Darby said raising water rates for residents without having more generous financial assistance measures in place, and without having an assessment of what the water/sewer revenues are funding, is “irresponsible.”
Despite the opposition, the council increased the rates – which total 5.5% for water and sewer, and 6% for stormwater.
The new Water/Sewer Fund Operating Budget totals $95 million, marking a $5.2 million increase over the prior year’s budget. The dollars will support maintenance and upgrades to the city’s water and sewer systems, among other services.
Budget Highlights
- About a third of Wilmington’s operating budget – more than $67 million – will be allocated toward police. Of that, a total of $115,000 will pay for police license plate recognition software – an expense that previously was covered by federal COVID dollars.
- The next biggest chunk of the budget is allocated to the fire department and public works. Both will receive more than $31 million.
- Starting July 1, Wilmington will operate its own 30-member ambulance service through its fire department. The change comes after St. Francis Hospital announced it would end its EMS service with the city. The city paid $3.8 million to St. Francis for the service last year. It will pay $4 million to run ambulances itself, but anticipates recouping some of that funding through insurance reimbursements.
- Starting July 1, Wilmington will operate its own 30-member ambulance service through its fire department. The change comes after St. Francis Hospital announced it would end its EMS service with the city. The city paid $3.8 million to St. Francis for the service last year. It will pay $4 million to run ambulances itself, but anticipates recouping some of that funding through insurance reimbursements.
- The approved budget also allocates $2.5 million for Neighborhood Stabilization, which in part goes toward fixing up older properties in the city. A total of $500,000 of that fund will go toward the city’s Landbank.
- Nearly $12 million will go towards the city’s parks and recreation department, which maintains city parks and provides “recreational, social, employment and educational opportunities,” according to a city website.
- The City Council’s Office of Educational Advocacy, which was established earlier this year, will receive more than $230,000.
- The City Council’s budget will see a 20% increase – the largest of any city department.
- Wilmington’s budget also outlines an ambitious six-year Capital Improvement Plan with $15 million allocated for park projects, including future upgrades and maintenance of public spaces. The plan also includes major investments in water and sewer infrastructure, totaling $360 million, and $43.5 million for Public Works projects.
- Additional capital investments target the fire department with $19.5 million, and city transportation initiatives with $18.5 million. The proposal is double the amount of what former Mayor Mike Purzycki outlined in his plan for the last fiscal year.
