CITY COUNCIL OF THE MAYOR AND COUNCIL OF NEW CASTLE
SPECIAL MEETING
WEDNESDAY, JUNE 20, 2007

Present:

Council President William Blest
Councilperson Churchill
Councilperson Teel Petty
Councilperson John Gaworski

Others Present:

City Treasurer Janet Carlin, City Administrator Cathryn Thomas, Finance/HR Director Marian Delaney, City Accountant Greg Sarnecki

            A presentation was given by Bob Mulligan of the Recycle Bank. This is a company that sets up programs in communities which offer residents incentives for recycling.

         Council discussed the pilot recycling program in place for 500 properties, managed by the Delaware Solid Waste Authority (DSWA) and funded by tax dollars at a cost of $1,000 per month. It was decided that a public hearing would be held concerning the pilot program and the
various alternatives for the future of recycling in New Castle. The Public Hearing date will be set at the next regular City Council meeting on July 10, and will be a Special Meeting of the City Council, to include a public hearing and discussion. Finance Director Delaney verified to Council President Blest that the $1000 per month recycling cost for the pilot program was included in the year-to-date landfill posting in the Public Services department.

            Council then reviewed the latest draft budget. With no tax increase, there is a gap between the revenues and expenditures of a little more than $70,000. This includes that $225,000 of unexpended fund balance from previous years' funds will be applied to the current
budget. It is estimated this would still leave about $150,000 in unexpended fund balance available for use in the event it is needed.

            Council members discussed the possibility of raising the tax rate from the current $1.10 to $1.13. City Accountant Mr. Sarnecki reported he had calculated that each cent of the tax rate equates to $22,500. Therefore, a three cent increase in the rate would nearly balance the budget.
Finance Director Delaney presented information to Council members listing the calculated tax revenue based on the current rate of $1.10 through potential rates up to $1.13.

            City Administrator Thomas reported that a three cent increase equates to a percentage increase in the rate of 2.7. Councilperson Churchill reported her recent research showed the inflation rate at 2.6%. The Council members concurred that an increase close to the inflation rate
may be reasonable.

            Council President Blest suggested the rate could be raised four cents, which could put the City in an even better financial position. Councilperson Churchill said she could agree to a four cent increase.

            Councilpersons Petty and Gaworski disagreed, noting that other taxes and government fees are increasing, such as those controlled by New Castle County, and therefore thought it better to hold the line at three cents for the increase in the City tax rate.

            Council agreed this could be settled at the final meeting where the budget will be adopted, scheduled for June 22. At that time, Councilperson Reese is expected to be present and his opinion will be an important part of the final decision-making process.

Respectfully submitted,

Jill DiAngelo,
City Clerk