www.sussexcountyde.gov
For Fiscal Year Ended June 30, 2022
Popular
Annual
Financial
Report
Sussex County,
Delaware
Introduction
01
02
About Sussex County Government
03
Government Structure
04
Facts & Statistics
06
Where the Money Comes From
07
Where the Money Goes
Table of Contents
08
Governmental Trends
09
Business-Type Funds
10
Investments & Capital Assets
11
The "Bottom Line"
12
Long-term Debt & Capital Projects
13
Reassessment Project
The Sussex County Finance Department is pleased to
present its first ever Popular Annual Financial Report
(PAFR) for Sussex County government. This PAFR is for the
fiscal year ended June 30, 2022. The PAFR provides a
snapshot of financial activities in Sussex County, DE, as well
as an overview of the County’s general financial condition.
The PAFR is intended to be a more simplified explanation of
the County’s Annual Comprehensive Financial Report
(ACFR) which is published on an annual basis. Data in the
report comes from the 2022 ACFR which provides more
than 100 pages of detailed financial statements, notes,
schedules, and reports. The financial data in the ACFR is
presented in accordance with generally accepted
accounting principles (GAAP) and is audited by an
independent firm of licensed certified public accountants.
The PAFR condensed financial information and, therefore,
does not comply with GAAP. This report highlights all the
County's funds except the fiduciary (pension) funds. Any
questions relating to this report can be directed to Gina A.
Jennings, Finance Director/COO, by email at
View the complete FY 2022 ACFR on the County’s website
by visiting https://sussexcountyde.gov/comprehensive-
annual-financial-reports.
Introduction
www.sussexcountyde.gov 01
Popular Annual Financial Report
Finance Administration
Gina A. Jennings, Finance Director/COO
Kathy L. Roth, Deputy Finance Director
About
Sussex
County
Government
Sussex County Government operates under a council-
administrator form of government. The government is composed
of a legislative body – the County Council – and an administrative
arm – the County Administration – that includes operating
departments and offices, some which are administered by
independent officials elected at-large, known as Row Officers. The
County Council, which has legislative powers, consists of five
members who represent geographic districts. Council members
are elected to four-year terms, which are staggered. The County
Administrator is responsible for the entire range of executive,
administrative, and fiscal duties performed by all County
Governments.
www.sussexcountyde.gov 02
Popular Annual Financial Report
County Council establishes policies for the health,
safety, and welfare of County residents. They adopt
an annual budget for government operations and
enact plans for county growth, development and
employment.
County Council meetings are normally held each
Tuesday at 10 a.m. with zoning hearings, when
applicable, held at 1:30 p.m. The meetings take place
in the Council Chambers, located in the County
Administration Offices Building, 2 The Circle,
Georgetown, DE. Meetings are open to the public.
Government Structure
Administration
9-1-1 dispatching
Assessment
Court paper delivery
Deed recordation
Fire and police funding
Land-use code enforcement
Library services
Low-income housing
rehabilitation
Marriage licenses
Paramedic service
Planning & zoning
Sheriff Sales
Water and wastewater utilities
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Popular Annual Financial Report
(l-r) Mark G. Schaeffer, Cynthia C. Green,
Michael H. Vincent,
Douglas B. Hudson, John L. Rieley
Sussex County Council
Sussex County government is administered by
the County Administrator, Todd F. Lawson, who
was appointed by County Council in 2011. He
supervises departments that are charged with
providing the following services:
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
15,000
10,000
5,000
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
20,000
15,000
10,000
5,000
0
Economic Facts
& Statistics
www.sussexcountyde.gov 04
247,527
Population
4.0%
Unemployment Rate
Permits Issues
Number of Landings at
Delaware Coastal Airport
Popular Annual Financial Report
909
Jobs Provided at Delaware
Coastal Airport and
Business Park
Health care and social services
12,430
Retail trade
12,212
Accommodation and food services
10,963
Manufacturing
9,564
Government
8,943
Construction
5,797
Administrative and waste services
5,831
Other services, except public administration
2,703
Professional and technical services
2,670
Finance and insurance
2,034
Top Employer-Types
81,823 total
employees in
Sussex County
Delmarva Power & Light Co.
$ 46,511,691
Verizon
22,757,375
Indian River Power LLC
12,786,471
Eastern Shore Natural Gas Co.
7,419,100
Chesapeake Utilities Corporation
7,526,050
Invista Sarl
6,827,200
Delaware Electric Cooperative, Inc.
6,410,850
Harim Millsboro LLC
6,334,400
Mountaire Farms of Delaware, Inc.
5,091,600
Sussex Sports Amenities LLC
3,207,800
Tax Facts &
Statistics
Total Taxable Assessed Value
$3,902,894,747
2-Year Tax Collection Rate
99.4%
Average Single Family Annual County Tax Bill
$121.75
www.sussexcountyde.gov 05
Popular Annual Financial Report
Principal Property Taxes
www.sussexcountyde.gov 06
Where the money comes from
Fines
and
Forfeits
Charges
for
Services
revenues from
permit fees, rent,
marriage licenses,
sheriff sales, and
other fees
revenues received
from code violations
Taxes
revenues collected from
property tax, realty
transfer tax, lodging tax
and the fire service fee on
building permits
Popular Annual Financial Report
Inter-
governmental
revenues received
from other
governments (state
and federal)
Taxes
84,241,990
Charges for Services
19,197,820
Intergovernmental
11,535,554
Fines and Forfeits
97,136
Governmental Funds
Governmental Funds include the County's general fund and capital projects fund.
The operating fund is the general fund. The capital fund is funded mostly from
transfers from the general fund. The capital fund had $762,643 in revenue and
$13,304,671 in expenses. Again, the difference is made up from transfers out of the
general fund. To focus on operations, the data below is General Fund only.
The major source of the general fund is taxes. Taxes are made up of property tax
($17,651,166), realty transfer tax ($63,006,928), fire service ($2,386,367), lodging tax
($955,080) and any applicable penalties collected ($242,449). These represent
78% of the County's total revenue. Realty transfer tax makes up 75% of all taxes.
Unfortunately, this revenue source is highly dependent on the economy; in fact, the
County collected half of what it collected this year only five years ago.
Miscellaneous
revenues that do not
fit under another
classification such as
donations
www.sussexcountyde.gov 07
Where the money goes
Engineering
Library
Public Safety
expenses from paramedics
and emergency preparedness
(dispatch center)
expenses for private roads, solid
waste management, and
engineering administration
expenses from library
administration and 3
county-owned libraries
Community
Development
Grant-in-
Aid
Planning &
Zoning
expenses for land-use planning
and enforcement
expenses for low-income
housing rehabilitation
expenses for grants made to
various nonprofits including fire
companies, police and libraries
Popular Annual Financial Report
General
Government
Economic
Development
expenses for airport, business
park and general economic
development
expenses from general
operations such as
administration, council, IT, HR
Transfers Out
30,122,429
Grant-in-Aid
22,629,342
Public Safety
21,956,416
General Government
15,899,638
Community Development
3,133,471
Library
2,957,958
Planning & Zoning
2,915,491
Governmental Funds
Row
Offices
expenses for marriage bureau,
recorder of deeds, register of
wills and sheriff
Transfers
expenses for moving funds to a
non-governmental fund -
primarily to the capital fund
Engineering
1,844,693
Economic Development
1,473,759
Governmental Funds pay for basic services including public safety, planning & zoning, library,
private roads, economic development, community development, and other general
administrative services.
Public safety is the largest expenditure area in the governmental funds when you include
internal public safety departments and the grants to outside public safety entities. Public
safety makes up $31.4 million, or 42%, of the $75.3 million of expenses (excluding transfers).
Transfers out is $30.1 million moving to the capital fund for future projects. The County moves
funds in financially strong years to avoid taking on future general fund bonded debt for
capital projects.
Row Office
2,466,320
Revenues Expenditures
2018 2019 2020 2021 2022
125,000,000
100,000,000
75,000,000
50,000,000
25,000,000
0
Excess of Revenues over Expenditures
Fiscal Year
2018
2019
2020
2021
2022
Revenues
Taxes
$49,650,439
$51,665,225
$54,100,265
$76,945,223
$84,241,990
Intergovernmental
6,381,117
9,508,129
10,872,888
8,383,063
11,535,554
Charges for services
14,668,167
15,280,305
15,093,396
20,452,979
19,197,820
Fines and forfeits
43,850
130,750
42,889
76,071
97,136
Miscellaneous
1,425,147
4,091,413
3,319,298
494,815
(5,969,603)
Total revenues
72,168,720
80,675,822
83,428,736
106,352,151
109,102,897
Expenditures
General government
22,421,967
24,059,566
19,226,788
12,632,889
15,899,638
Grant-in-aid programs
11,270,949
13,881,654
15,161,605
22,435,725
22,629,342
Planning and zoning
1,702,870
1,647,045
1,519,867
2,549,785
2,915,491
Paramedic program
15,011,135
15,216,418
16,365,912
16,587,234
17,137,843
Emergency preparedness
3,311,123
3,554,384
3,963,013
4,447,013
4,793,373
Economic development and airpark
1,431,704
1,477,520
1,632,394
1,477,109
1,473,759
County engineer
1,811,453
1,518,135
1,339,204
1,276,974
1,844,693
Library
2,807,198
2,975,828
2,961,749
2,929,383
2,957,958
Community development
1,726,572
1,902,759
1,918,981
2,385,475
3,133,471
Constitutional offices
2,367,555
2,564,971
2,459,071
2,491,178
2,454,320
Debt service for Leases
-
-
-
-
37,200
Capital outlays
4,663,723
7,791,224
7,567,272
7,107,926
13,304,671
Total expenditures
68,526,249
76,589,504
74,115,856
76,320,691
88,581,759
Excess of revenues over (under)
expenditures before other financing
sources/uses
3,642,471
4,086,318
9,312,880
30,031,460
20,521,138
Governmental Funds Trends
The following chart shows the trend of revenues to expenditures in the governmental
funds (general and capital) during the last five fiscal years, excluding other
financing sources/uses. The category breakdown of the revenues and expenditures
can be found below the chart with a detailed overview of the general fund
components on the previous two pages.
08
Popular Annual Financial Report
www.sussexcountyde.gov
Revenue Expenses
Sewer Water
60,000,000
40,000,000
20,000,000
0
Business-Type Funds
www.sussexcountyde.gov 09
1% increase over 10 years
Water EDU's Sewer EDU's
Program Revenues and Expenses (operating and nonoperating sources)
Popular Annual Financial Report
Fiscal Year
Water
Sewer
2013
3,688
64,456
2014
3,676
65,735
2015
3,699
67,410
2016
3,715
68,965
2017
3,700
69,821
2018
3,702
72,398
2019
3,713
74,534
2020
3,722
76,769
2021
3,755
78,002
2022
3,727
83,761
Number of Equivalent Dwelling
Units (EDUs) Billed over 10 years
Business-type funds, or enterprise funds, are used to report any activity for which a
fee is charged to users for goods or services, similar to a private business. Revenues
generated from these funds should cover the costs of their operating expenses,
including debt service. The County's enterprise funds include the Unified Sewer District
and the Water District. The County operated four sewer treatment plants and two
water facilities. The sewer system operates with over 530 pump stations and 985
miles of underground pipe.
30% increase over 10 years
Fiscal Year
Water
Sewer
Operating Revenues
1,412,570
29,431,586
Operating Expenses
1,541,103
38,623,580
Operating (Loss) Income
(128,533)
(9,191,994)
Nonoperating Revenue/(Expenses)
(57,095)
15,498,148
Contributions/Transfers
4,001,555
9,421,841
Change in Net Position
3,815,927
15,727,995
Investment Maturities (in years)
Total
Less than 1
1 - 5
6 - 10
U.S. Treasuries
$20,664,779
$21,181,021
$13,589,831
$4,893,927
Governmental Agencies
240,981,023
31,201,122
209,779,901
-
Corporate Obligations
35,433,597
23,678,013
7,818,674
3,936,910
Certificates of Deposits (CDs)
19,901,255
19,901,255
-
-
Mutual Funds
110,411,373
110,411,373
-
-
Infrastructure
9,925,355
9,925,355
-
-
Global Pooled Equities
7,042,355
7,042,355
-
-
Core Real Estate
14,276,332
14,276,332
-
-
Total Investments
$458,636,069
$218,616,826
$231,188,406
$8,830,837
Governmental Activities
Business-type Activities
Total Government
2022
2021
2022
2021
2022
2021
Land
$31,831,679
$26,715,655
58,692,023
57,072,709
$90,523,702
$83,788,364
Construction in Progress
9,334,461
1,775,261
61,403,658
42,510,174
70,738,119
44,285,435
Buildings
33,178,927
34,135,063
38,495,775
39,116,076
71,674,702
73,251,139
Improvements Other Than Buildings
25,942,926
29,350,099
4,949,605
4,950,389
30,892,531
34,300,488
Machinery and Equipment
3,370,499
3,860,426
2,831,343
2,809,328
6,201,842
6,669,754
Infrastructure
210,749
219,744
360,255,594
349,134,701
360,466,343
349,354,445
Right-of-use lease building
59,812
96,734
-
-
59,812
96,734
Right-of-use lease land
-
-
1,760,125
1,842,997
1,760,125
1,842,997
Purchase capacity
-
-
4,006,375
3,301,056
4,006,375
3,301,056
Total
$103,929,053
$96,152,982
$532,394,498
$500,737,430
$636,323,551
$596,890,412
Investments
The County's investment policies and practices are constructed foremost
around the safety of its principal. The general government is only authorized to
invest in: obligations of which the faith and credit of the U.S.A. are pledged,
obligations of federal governmental agencies, CD's, money market mutual funds
regulated by the S.E.C., and commercial paper in the highest rating category.
The investment policy of the pension funds allows for more types of investments
such as equities, core real estate, and private infrastructure.
Capital Assets
10
As of June 30, 2022, the County's capital assets (net of depreciation) were
valued at $636.3 million. This amount is an increase of $35.4 million.
Popular Annual Financial Report
www.sussexcountyde.gov
SUSSEX COUNTY'S SCHEDULE OF NET POSITION
As of June 30, 2022 and 2021
Governmental Activities
Business-type Activities
Total Government
2022
2021
2022
2021
2022
2021
Current and Other Assets
$266,849,196
$235,622,351
$119,671,238
$137,106,941
$ 386,520,434
$372,729,292
Capital Assets
103,929,053
96,152,982
532,394,498
500,737,430
636,323,551
596,890,412
Total Assets
370,778,249
331,775,333
652,065,736
637,844,371
1,022,843,985
969,619,704
Deferred outflows of resources
15,306,887
2,649,642
5,266,886
813,943
20,573,773
3,463,585
Total assets and deferred outflows of resources
386,085,136
334,424,975
657,332,622
638,658,314
1,043,417,758
973,083,289
Current and Other Liabilities
71,192,346
46,384,688
8,885,733
10,769,930
80,078,079
57,154,618
Long-term Liabilities
20,425,153
7,793,690
209,556,418
203,823,747
229,981,571
211,617,437
Total Liabilities
91,617,499
54,178,378
218,442,151
214,593,677
310,059,650
268,772,055
Deferred inflow of resources
5,906,917
18,766,517
1,082,111
5,800,199
6,989,028
24,566,716
Total liabilities and deferred inflows of resources
97,524,416
72,944,895
219,524,262
220,393,876
317,048,678
293,338,771
Net Position:
Net Investment in Capital Assets
101,525,312
95,551,537
324,432,012
312,780,719
425,957,324
408,332,256
Restricted
129,854,977
103,290,603
86,645,337
85,391,251
216,500,314
188,681,854
Unrestricted
57,180,431
62,637,940
26,731,011
20,092,468
83,911,442
82,730,408
Total Net Position
288,560,720
261,480,080
437,808,360
418,264,438
726,369,080
679,744,518
2018
2019
2020
2021
2022
General Fund
Nonspendable
$315,913
$352,961
$316,316
$267,909
$342,349
Restricted
52,560,032
57,923,703
64,131,190
74,207,956
68,379,675
Committed
838,424
1,811,458
1,867,007
10,439,101
1,567,434
Assigned
17,237,808
20,899,412
8,516,719
2,079,742
2,563,861
Unassigned
34,518,709
29,029,042
37,826,924
38,531,552
55,678,488
Total general fund
$105,470,886
$110,016,576
$112,658,156
$125,526,260
$128,531,807
All Other Governmental Funds
Restricted
$17,575,194
$17,119,804
$23,769,732
$42,372,227
$60,387,128
Committed
1,425,270
1,454,505
1,477,446
-
-
Total all other governmental funds
$19,000,464
$18,574,30
$25,247,178
$42,372,227
$60,387,128
The Bottom Line
Fund Balance - Governmental Funds only
Net Position
11
Popular Annual Financial Report
www.sussexcountyde.gov
Governments are required to show their governmental funds' "bottom line" two ways - as net position and
fund balance. The Statement of Net Position provides readers with a broad overview of the County's financials
in a manner similar to a private sector, which contains assets and deferred outflows minus liabilities and
deferred inflows. The fund balance financial statements focus on near term inflows and outflows, as well as
spendable resources available at the end of the fiscal year. It does not include long-term items such as
capital assets and long-term liabilities.
Fund balance helps the reader understand the availability of resources. Restricted fund balance includes
funds that are externally regulated. These funds can be used for public safety, infrastructure, public works,
economic development, and assessment. Committed fund balance includes funds already obligated by a
vote of Sussex County Council. Assigned fund balance includes funds to be used for next fiscal year.
Unassigned fund balance can be used for any governmental expense. There was an increase this year due
to legislation being passed that allowed a broader use of realty transfer tax.
12
Long-term Debt &
Capital Projects
OUTSTANDING BONDED DEBT
Debt is solely used to fund business-type water and sewer activities.
As of June 30, 2022, the County had $202.2 million in outstanding
bonds payable.
WATER
SEWER
At the end of the year, sewer had $61 million worth of projects under
construction. The largest projects were:
GENERAL FUND
Paramedic Administrative and Training Facility - $5.2 million
Improvements at the Delaware Coastal Business Park - $1.6 million
Western Sussex I.T. Data Center - $0.7 million
www.sussexcountyde.gov
Popular Annual Financial Report
Both S&P and Moody's has assigned a triple-A rating to the County's
bonds.
South Coastal Treatment Plant Expansion - $40.9 million
Herring Creek Sewer Area - $10.5 million
Inland Bays Stormwater Management - $4.0 million
The Water District only had one capital project under way in Fiscal Year
2022. It was the completion on the Ellendale Water area in the amount of
$5.4 million.
At the end of the year, general fund had $9 million worth of projects
under construction. The largest projects were:
Reassessment is being done as a result of a Court
Order issued in 2020. The court determined that
property values had changed significantly enough
since the previous assessment done in 1974 and
were no longer representative as the "true value of
money." The new assessed value will be based on
what is believed to be the market value for the
property as of July 1, 2023 valuation date.
Reassessment Project
Frequently Asked Questions
www.sussexcountyde.gov 13
Popular Annual Financial Report
Background
2. What should I expect when data collectors
come to my community?
The County's contract, Tyler Technologies, will
canvas Sussex County to verify improvements
and take measurements. Working by tax districts,
these data collectors will perform site visits
during regular business hours.
Data collectors will visit each property and
attempt to make contact with the occupant to
take EXTERIOR measurements and photographs.
Data collectors, WILL NOT enter dwellings unless
invited in.
1. When will the new assessed value take effect?
The Court settlement is for July 1, 2024
3. Will the county or school collect more taxes as a result of the reassessment?
The County and the school districts are capped by law on how much additional
revenue can be generated from reassessment. Following the reassessment, property
taxes will be adjusted to ensure the taxing entity does not collect more than allowed by
statute. There is no intent to raise taxes by the County in the year of the reassessment.
4. What if I feel the preliminary value is not close to my property's value?
You can make an appointment for an informal review to go over the data and value.
Instructions on how to schedule an informal review will be included with your notice of
tentative value.
Visit the dashboard at:
https://empower.tylertech.com/Sussex-County-
Delaware.html
Popular
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Financial
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Want more Sussex County news?
Signup for our monthly newsletter at:
https://www.sussexcoutyde.gov/newsletter
Want information on the reassessment project?
www.sussexcountyde.gov
Want more financial information?
View our transparency website at:
https://www.sussexco.finance.socrata.com
