Kent County outlines FY2027 budget and warns of short-term cash needs for planned middle school

County finance staff on Monday presented a proposed FY2027 budget that maintains existing tax rates while forecasting roughly 6% revenue growth and pressing the commission to plan for short-term cash needs tied to the proposed Kent County Middle School project.

"The real property tax rate is not changed," the county's chief financial officer told the commission, noting that recent assessment increases — not a rate change — explain rising bills. The budget recommendation includes a 5% salary increase county-wide, five new public-safety positions and an 8% increase in benefits.

The presentation, led by the county finance official, highlighted several budget drivers: property- and income-tax growth, inflationary pressures on operating costs, and a 4% water-and-sewer rate increase. Staff also emphasized that water and wastewater operations remain heavily subsidized by the general fund — the subsidy rate falls from about 52.6% last year to an estimated 39.5% in the proposed budget.

On the capital side, staff presented a five-year portfolio of projects totaling roughly $92 million and explained that several large items — notably a proposed new middle school — are paid from funds other than the general fund. Still, staff said the county could face both a near-term cash-flow window and a long-term funding need if the school proceeds.

"We would need to come up with as much as almost $21,000,000 in short term funding" to bridge timing differences between county outlays and state reimbursements, staff said, adding that current estimates show a persistent $10,720,000 difference the county would need to fund over time.

The numbers presented were explicitly described as estimates. Commissioners and staff said final project costs and the state reimbursement schedule are expected by mid-July.

Public commenters urged the commission to move forward with the school. "Kent County is in the best financial position ever to build a new middle school," said resident and parent Dan DiVilio, who cited rising county revenues and available fund balance. Parents and teachers speaking during the public hearing called the existing facility unsafe and argued delaying construction will increase long-term costs.

County staff and several commissioners said the budget as presented is a planning document that builds in the most recent state estimates but does not itself approve the school project. "This is a separate exercise tonight," staff told the board, urging commissioners and the public to await final state numbers before a formal decision.

The public hearing on the proposed FY2027 budget closed following the comments; the county accepted written comments through Friday, June 5. The commission did not take a final vote on the school project at the meeting.