Newark residents to see tax and utility hikes, but not as much as earlier thought
CORRECTION: A previous version of this story stated that Newark's parking revenues were down this year. They were higher than the previous year, but below projections.
Newark residents will see a hike in their property tax rates and utility bills next year to help the city overcome revenue struggles.
The 2024 budget of $114.8 million was approved Monday night by the Newark City Council by a vote of 5-1 (Councilman Jason Lawhorn of District 5 was the sole opposing vote). The total budget is around $1 million less than what was proposed in September, but is still about 3% higher than last year’s budget.
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Some adjustments were made after the last financial workshop proposed a 10% tax hike and just under a 5% increase in utility fees.
Residents will instead see a 7.5% tax hike and around a 4% increase in utility fees next year.
The tax increase will cost the average Newark resident around $49.39 per year. Changes in utility rates will amount to an average monthly bill increase of $1.50 per household for water, $1.48 per household for sewage and an estimated $4.35 per household for electricity.
In addition to the tax and utility adjustments, Newark also removed two open positions in the Public Works Department, pushed back start dates for other new employees and changed two open positions from full time to part time.
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Revenue and hiring problems trickle down
According to the City Council, inflation and wage pressures have put Newark in a tough spot, making it harder to maintain utility service levels without increasing tax revenue. Redevelopment activity, while consistent, has not been enough to balance the increase in costs that the city has seen.
In August, the city’s budget presentation showed that Newark is also facing a $6.2 million deficit as hiring and employee retention continue to be an issue across the city, especially in the Police Department. All four of the city’s unions will be up for contract renegotiation next year, which is projected to put an additional strain on the city’s financial resources.
And parking revenues were also below projections this year, despite the increase in fine amounts.
The treatment of “forever chemicals” could also be an additional burden on residents, as water services may hike rates to comply with regulatory requirements.
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Contact Molly McVety at mmcvety@delawareonline.com. Follow her on Twitter @mollymcvety.
This article originally appeared on Delaware News Journal: Newark approves budget with tax increase and utility hikes
