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City manager highlights $5.8 million Merrick Boulevard contract and warns of property-tax reform risks
Summary
City Manager Blake reported a budgeted $5.8 million contract for Merrick Boulevard and warned that proposed state property-tax reform without a replacement would have broad fiscal impacts on Delaware and county public services.
City Manager Blake told the Delaware City Council on March 9 that staff had approved a notable construction contract and that state-level property-tax reform petitions could have outsized local consequences.
Blake said one of the most notable contract awards this month is Truco Construction for work on Merrick Boulevard at $5,800,000 and noted the project is budgeted. He discussed conference takeaways, including local property-tax reform proposals circulating via citizen petitions; Blake said the petition drive would need signatures equaling 10% of those who voted in the last gubernatorial election and that the petition organizers were reportedly close to that threshold. He warned that if property-tax repeal were to go forward without a replacement plan, the fiscal impacts would cascade across local governments, schools, public safety and other services and could affect local borrowing and credit ratings.
Blake also explained that because the city participates in tax-increment financing structures, a wholesale reduction in property taxes could reduce revenue streams that repay existing debt. He said staff will forward state memoranda and additional information to the council and that further analysis will follow.
Councilmembers discussed the issue at length in council comments, urging constituents to consider the budgetary implications and to engage with materials the city will circulate.
