By 1808Delaware
At the upcoming Delaware City Council meeting on July 8, 2024, at 7:00 PM in the City Council Chambers, Ordinance No. 24-60 will be up for a public hearing and second reading. This ordinance proposes an amendment to Chapter 192 of the City’s Codified Ordinances, aiming to levy an additional forty-five one-hundredths of one percent (0.45%) income tax. The funds generated from this increase will be dedicated to capital improvements, maintenance and repair of streets, and the payment of securities issued for these purposes.
Details of Ordinance No. 24-60
Title of Proposed Ordinance: An ordinance amending Chapter 192 of the City’s Codified Ordinances to provide for the levy of an additional forty-five one-hundredths of one percent (0.45%) income tax to provide funds for the purposes of paying the costs of capital improvements, maintenance and repair of streets, and the payment of securities issued therefor, and declaring an emergency.
Background: The proposed ordinance, set for its second reading and public hearing on July 8th, seeks authorization for a 0.45% increase in the City’s income tax. This increase is specifically earmarked for capital improvements and the maintenance and repairs of streets within the city. A comprehensive presentation will be made during the public hearing to provide further details and address any questions or concerns from the public.
Financial Implications
Fiscal Impact: If approved, the tax increase is projected to raise approximately $7.7 million annually. This revenue will be exclusively utilized for capital improvements and street maintenance and repair, ensuring that the city’s infrastructure needs are adequately funded.
Income Tax Calculator: To help residents understand the impact of the proposed tax rate, an updated income tax calculator reflecting the new rate of 2.3% with a 65% credit has been made available. Residents can access the calculator through this [link](Income Tax Levy – Calculator 2.30%.xlsx) to estimate their individual tax contributions under the proposed rate.
Legislative Process
Reason for Legislation: Legislation is necessary to submit the proposed income tax levy to the voters for approval. This ordinance is a crucial step in addressing the city’s funding needs for essential infrastructure projects.
Committee Recommendation: The Finance Committee reviewed Ordinance No. 24-60 and voted unanimously (3-0) on June 13, 2024, in favor of its adoption. Their recommendation underscores the importance of securing adequate funding for the city’s infrastructure.
Public Hearing and Participation
The public hearing provides an opportunity for residents to voice their opinions and ask questions about the proposed tax increase. The City Council encourages all interested parties to attend and participate in the discussion.
Image by Florian Pircher from Pixabay
