Wilmington mayor touts city's economic strength, proposes water rate increases in new budget proposal

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After seven years leading Wilmington, Mayor Mike Purzycki detailed a nearly $200 million operating budget plan Thursday night for fiscal year 2025.

In his final State of the City address to the City Council, Purzycki said Wilmington residents would face no property tax hikes, but water and sewer rates would increase under his plan.

Overall, Purzycki's proposed $192 million operating budget reflects a 5.3% increase over last year's budget.

The previous year's budget proposal sought a 5.7% increase in water/sewer rates and a 6% stormwater rate. This year, the administration is seeking a 9% increase in water/sewer rates while requesting a similar 6% increase in stormwater rates.

This rate increase will cost an average household about $5.98 more a month, assuming the use of 4,000 gallons of water, according to the mayor's plan.

The requested rate increase came as no surprise, following city administrators' response to Councilperson Shane Darby's proposed ordinances to prevent Wilmington from including unpaid water, sewer and stormwater fees in foreclosure actions against residential customers.

Wilmington Mayor Mike Purzycki sits behind his desk in his office on the ninth floor of the Louis L. Redding City/County on Wednesday July 5, 2023.
Wilmington Mayor Mike Purzycki sits behind his desk in his office on the ninth floor of the Louis L. Redding City/County on Wednesday July 5, 2023.

Days ahead of Purzycki’s budget proposal, Darby introduced ordinances that would:

  • Exempt elderly and disabled residents, as well as homes with children under the age of 5, from having their water disconnected for nonpayment of water bills.

  • Create an affordable water system.

The mayor, who is not seeking reelection, defended the budget increases by citing additional expenditures due to challenges the city is facing. He advised officials to address impending difficult financial decisions now.

He pointed to smaller police recruitment classes, residency requirements that make filling jobs difficult and escalating labor costs.

During the last budget year, adjustments were made to cover a $2 million budget hike for increased salaries and compensation for all bargaining units except the police and fire unions. It also included Trinity Health's decision to discontinue free ambulance service provided by St. Francis Hospital for the city after December 31, 2024.

City officials promptly adjusted the budget and secured a $3.5 million one-year contract to maintain EMT services with the health system temporarily. Looking to address the issue, a new emergency medical services division was established within the Wilmington Fire Department to offer basic life support ambulance services and transportation. This division will be operated by 41 newly created positions, resulting in an additional cost of nearly $4.6 million to the budget.

After noting Wilmington's $2 billion economic growth since 2017 and improved public safety, the two-term mayor urged city officials to prioritize a welcoming approach for all residents to continue fostering and sustaining this growth. “Don’t fall prey to a cramped imagination,” Purzycki said.

Video highlighting the Purzycki administration's achievements

Purzycki's last budget address included "a campaign video" he said he would have used if he was seeking reelection. In the short film presented before the speech, the outgoing mayor touted creating the "pro-development environment" the city is experiencing. The film highlighted the city's reduced crime rate, the emergence of new housing and business projects and ongoing investments in marginalized communities.

State Of The City: Mayor Mike Purzycki from Jet Phynx Films on Vimeo.

During parts of his speech, Purzycki showed emotion while praising his administrative team and elected officials for their commitment to public service, helping to move the city into its current financial position. Notably, Wilmington's 2024 unassigned fund balance totals $95 million, a $61 million increase from 2017, with $70 million of that in cash.

Public hearings on the mayor's budget proposal for fiscal year 2025 will begin Wednesday, March 27, at 4:30 p.m. and will continue through April. The City Council is expected to vote on a new budget in late May. Wilmington's fiscal year begins on July 1, 2024.

You can contact reporter Anitra Johnson at ajohnson@delawareonline.com.

This article originally appeared on Delaware News Journal: Wilmington Mayor Purzycki unveils budget with increase water rates