New Castle County Council approves FY2026 operating and capital budgets, sets 2026 tax rates and authorizes bond sales

New Castle County Council on June 10 adopted its FY2026 operating and capital budgets, set next year's property tax rates and approved several bond authorizations and grant appropriations, voting on a slate of ordinances and resolutions that council leaders said fund public works, parks, housing and public-safety projects.

The council voted 13-0 to approve the annual operating budget (Ordinance 25-052) and the capital budget (Ordinance 25-051). Council members also approved Substitute No. 1 to Ordinance 25-048, the annual revenue ordinance, which sets the 2026 residential real-property tax rate at 15.75 cents per $100 of assessed value and the nonresidential real-property tax rate at 23.8 cents per $100.

Why it matters: the operating and capital budgets together determine county spending priorities for the coming fiscal year beginning July 1, 2025, and the revenue ordinance establishes the levy that will fund many of those projects.

Most contested and notable votes - Ordinance 25-052 (FY2026 operating budget): approved 13-0 on roll call. - Ordinance 25-051 (FY2026 capital budget): approved 13-0 on roll call. - Substitute No. 1 to Ordinance 25-048 (annual revenue ordinance): approved 13-0 on roll call; sets residential tax rate at 15.75 cents per $100 and nonresidential at 23.8 cents per $100. - Ordinance 25-050 (authorization of general obligation bonds for FY2026 capital projects): approved 13-0; total authorizations reported in the meeting: $71,906,000. - Resolution 25-106 (providing for the sale of general obligation bonds): approved 13-0; the resolution authorized issuance of up to $82,000,000 and permitted sale by competitive or negotiated sale at the county executive's discretion. - Resolution 25-088 (adopting the New Castle County capital program for FY2026'FY2031): approved 13-0.

Council members also approved smaller grant and contingency allocations by voice and roll call, including three contingency-fund resolutions allocating county funds to community nonprofits. Resolution 25-103 (a contingency grant to the Food Bank of Delaware) passed 8-4-1; Resolutions 25-104 (Good Neighbors Home Repair) and 25-105 (Charity Crossing Inc.) each passed 8-4-1. Several ordinances to install street lighting in subdivisions and year-end transfers to senior repair and housing programs were approved, mostly by unanimous rolls documented on the record.

Discussion and context Council members praised county staff and the county executive for preparing the budget and noted work to limit the need for next-year spending cuts. One council member raised the point that the budget draws on combined tax-stabilization and RTT reserves by roughly $36 million; the meeting record shows council members sought assurances from the county executive that those drawdowns would not harm the county's fiscal position or credit rating. The county executive (identified in council remarks as Marcus Henry) and staff were reported in the discussion as committing to seek alternative revenues and to protect the county's AAA status; the discussion on this point occurred during consideration of the operating budget.

Votes at a glance (selected items from the meeting record) - R25-098 (honoring Drs. S. Todd and Cleo B. Townsend): approved 13-0. - R25-103 (grant from Council contingency fund to Food Bank of Delaware): approved 8 yes, 4 no, 1 not voting (roll call recorded on the transcript; clerk announced 8 yes, 4 no, 1 not voting). - R25-104 (grant to Good Neighbors Home Repair): approved 8 yes, 4 no, 1 not voting. - R25-105 (grant to Charity Crossing Inc.): approved 8 yes, 4 no, 1 not voting. - Ord. 25-048 (revenue ordinance, substitute No. 1): approved 13-0; sets residential tax rate at 15.75 cents per $100 and nonresidential at 23.8 cents per $100. - Ord. 25-049 (sewer service charges for FY2026): approved 13-0; transcript notes sewer service charges do not increase and have not increased since FY2023. - Ord. 25-050 (authorization of GO bonds for FY2026 capital projects): approved 13-0; total authorizations noted $71,906,000. - R25-106 (resolution providing for sale of GO bonds): approved 13-0; authorizes sale of up to $82,000,000. - Ord. 25-051 (capital budget ordinance for FY2026): approved 13-0. - Ord. 25-052 (operating budget ordinance for FY2026): approved 13-0. - Ord. 25-064, 25-065, 25-066, 25-067, 25-068, 25-069, 25-070, 25-071 (various streetlight installations, grant reallocations and program funding, and an ordinance adding an electronic speed monitoring article to county code): each recorded as approved on roll calls (most recorded 13 yes on the transcript).

What the measures do - The revenue ordinance fixes the 2026 levy that will fund county operations and capital projects. - The operating and capital budgets set spending for county departments, public works, parks, libraries and housing programs beginning July 1, 2025. - The bond authorizations and resolution permit the county to issue general obligation bonds to finance capital projects at prevailing market terms; the resolution allows the county executive to determine final sale details and to appoint financial advisors. - Several ordinance substitutes and grant-line transfers direct FY2025 year-end funds and council contingency allocations to senior home repair, emergency housing, and other community programs; multiple streetlight ordinances direct installation and a light-tax basis for specified subdivisions.

What comes next Most ordinances and resolutions approved at the June 10 meeting take effect according to county code and the language of each ordinance; bond sales will proceed subject to final terms set by the county executive and market conditions. Council members indicated follow-up on implementation and monitoring of reserve use and on planned capital projects.

Ending note Council members thanked staff and the county executive for work on the budget and capital program. Several members noted the county's AAA bond rating and said they would monitor fiscal plans to maintain that rating.