Sussex County officially has its budget for next year.

Sussex County Council approves lower tax rate, $285.1M budget for fiscal year ’26

Jarek RutzHeadlines, Government

Sussex County officially has its budget for next year.

Sussex County officially has its budget for next year.

GEORGETOWN – The Sussex County Council has unanimously approved a $285.1 million operating budget for the 2026 fiscal year, marking a significant financial shift as the county adopts its first new property tax rate in decades following a court-mandated reassessment.

The budget, passed after a public hearing on Tuesday night, reflects a 7.3% increase over the current year’s spending plan.

The increase is largely driven by capital investments in wastewater infrastructure and public services. The new fiscal year begins July 1.

A key feature of the 2026 budget is the adjustment of the property tax rate from 44.5 cents to 2.14 cents per $100 of assessed value.

“This is a historic budget in that sense, but it remains true to what has been a familiar theme throughout the years in Sussex County,” County Administrator Todd Lawson said. “And that’s one of providing the highest quality services at the best possible value for our customers.”

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Although the rate has dropped dramatically, the move is designed to keep revenues steady after higher property values were assessed during the recent countywide reassessment.

Officials say the change maintains “revenue neutrality,” ensuring the county collects roughly the same amount in property taxes as it did last year.

The budget is funded by a mix of revenue sources, including realty transfer taxes, sewer and water service fees, building permits, and document recording fees. Several of these fees will see modest increases in the coming year.

Budget details

Notable spending highlights include:

  1. $76.7 million for wastewater infrastructure projects, including expansions and upgrades.
  2. $7.4 million for open space and farmland preservation.
  3. An increase in funding for supplemental state police coverage, from $4.6 million to $5.8 million.
  4. $6 million in aid for local fire companies and ambulance squads.
  5. $1.25 million dedicated to affordable housing initiatives.
  6. $2.4 million for planning and constructing new paramedic stations in Dewey Beach, Lincoln, and Milton.

Finance Director Gina A. Jennings emphasized the County’s commitment to balancing rising service demands with fiscal discipline.

County Council President Doug Hudson praised the plan, citing its responsiveness to inflationary pressures and population growth.

“Whether it’s a household budget or a government budget, we all can feel the squeeze of inflation and increasing demand on our pocketbooks and wallets,”  Hudson said. “The Council recognizes that. I’m proud of the work this County does year to year in respecting the value of the taxpayers’ hard-earned dollars, and that’s clearly what’s driving this budget, one that keeps costs in check, but recognizes the ever-changing needs of our growing community.”

The full FY2026 budget and presentation materials are available here.

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