HB 247, pending in the Delaware General Assembly will significantly change the enforcement of several laws concerning Consumer Protection and could be considered by the House of Representatives as early as today, Thursday, March 24th!

Consumer Protection is certainly a worthy goal, but because REALTORS are already regulated by the Delaware Real Estate Commission, you could comply with all their rules and regulations, yet still be accused of a violation of a consumer protection law. This seems fundamentally unfair and will create confusion as to what is acceptable conduct.

From: Karl Kalbacher, P.G., Director of Economic Redevelopment, New Castle County Government

BRAC Marketing: The second volume of the New Castle County BRAC Relocation Guide has been printed. 1,000 copies were sent to Fort Monmouth earlier this month for distribution. At the request of the Chesapeake Science and Security Consortium (CSSC), I delivered 300 copies to their offices. They have received inquiries from APG to have our Relocation guide. We are now working on Volume III of the New Castle County BRAC Relocation Guide. This volume should be issued in the late Spring, 2010.

Fort Monmouth will be having a final Relocation Fair on May 12-13 in New Jersey. We will be there to market the County. I will be asking for assistance from the trade associations and education programs to attend this fair and provide information.

We also need to decide on whether to hold/fund another residential relocation tour/fair here in New Castle County. My thought would be to hold it in the Spring, (April/May). Please provide me with your thoughts on this proposal.

BRAC Workforce Analysis: The CSSC issued a Workforce Analysis report in January, 2010. The current estimates for residential population gains for New Castle County as a result of the APG expansion range from a low of 4,684 to a high of 9,391 and it is estimated that 10.2% of the new jobs will be created in New Castle County. These estimates are from New Economies Strategies, LLC which was contracted by the CSSC. The study estimates that between 28,000 to 55,000 new jobs will be created as result of military and civilian units transferring to APG. Therefore, we should expect between 2,800 and 5,500 jobs to be created here from the APG build-up. This is very good news. The 2006 workforce analysis estimated 24,000 total jobs would be created. The workforce analysis report can be reviewed at the following web site http://www.marylandready.com/content/links/index.cfm

Another workforce survey was undertaken by the CSSC at the October, 2009 Fort Monmouth Relocation Fair. This survey indicates that 13.02% of the respondents will relocate to New Castle County. There were 553 survey responses so the datum is considered reliable. This is the highest recorded percentage received to date indicating that they will relocate to New Castle County. Harford County received the highest percentage of respondents at 35.44%, Cecil at 19.89%, Baltimore County at 12.3%, and other jurisdictions lower. The 2006 estimate had New Castle County at 2%. Clearly our collective efforts have made a difference in elevating these numbers.

BRAC Move Schedule: The current plan for relocating personnel to APG is ahead of schedule. The first building will be finished on Aug. 1. Fort Monmouth expects it will take at least 6 months from then to relocate the entire 8,000 workforce on-site. Therefore, we should expect lots of real estate activity from July, 10 - Mar, 11.

UD/ARMY CRADA Signing: On January 26, 2010, the University of Delaware and the U.S. Army Research, Development and Engineering Command (RDECOM) signed a Cooperative Research and Development Agreement (CRADA). In addition to the CRADA, UD's Center for Composite Materials (UD-CCM), signed a Cooperative Statement of Work to be carried out under the new CRADA. The work will focus on antenna technology and composite materials and will involve two Army research centers. UD reports that several other SOWs will soon be signed. This is the start of big things to come involving research and technology transfer. The Chrysler site will eventually be the epicenter for these collaborative research opportunities.

BRAC Regional Commuter Rail: As a follow-up to the MD-DE Regional Rail Conference that NCC sponsoredin October, 2009, a working group was formed under the leadership of MD State Delegate David Rudolph. Our working group is focused on short-term stop gap regional commuter rail solutions. A review of the Amtrak service indicates several possibilities for providing service from Newark to Aberdeen. Currently there are four runs from Wilmington to Aberdeen. The thought would be to have these trains stop in Newark and possibly Perryville.

Newark Train Station: A multi-jurisdictional committee has formed and funded a feasibility Study to expand freight and commuter rail operations at the current site of the Newark Train Station. A total of $70K has been committed from the State, Newark, New Castle County, WILMAPCO and UD to fund the feasibility study for expanding freight and commuter rail. A critical element of the Feasibility Study will be to determine if a 5th rail line can be built that would enable separation of freight and commuter rail. DelDOT appears amenable to using the current location of Newark Concrete site for passenger rail overnight layover which would allow MARC trains to be placed. The committee has awarded a contract to Parsons Brinkerhoff to complete the study by the end of February. Next would be more detailed analysis and then funding would need to be re-appropriated from the Rt. 72 rail station plan to the Rt. 896 rail station expansion plan.

Legal update for members from Board Counsel, Andrew Taylor of Cooch and Taylor.
Attached is a notice from New Castle County Recorder of Deeds, Mike Kozikowski, regarding a $24.00 increase in the state surcharge on each document recorded. Effect on August 1, 2009 the fee will be $30.00. New Castle County recording fees will then be $11.00 per page, plus $30.00 per document, plus $1.00 technology fee per document, plus $1.00 if you want a receipt from the recorders, plus a charge of $3.00 per parcel on a deed. Therefore, to record a three page deed will be $68.00. To record a standard 17 page FNMA mortgage along with a one page legal description will be $230.00. To record a one page mortgage satisfaction piece will be $ 52.00 plus what the attorney may charge for preparing the satisfaction piece or following up with the lender to make sure the mortgage is satisfied.
These figures are provided so salespeople and lenders can help to accurately estimate closing costs for buyers and sellers. For Kent and Sussex Counties the state surcharge fee also increases from $6.00 to $30.00 plus the other recording charges.

Governor Jack Markell is going to deliver on his promises.

That’s why The Governor’s Entrepreneurial Business Conference on June 5, 2009 will be the premier business event of 2009!

The Delaware Economic Development Office and its partners will be hosting the first Governor’s Entrepreneurial Business Conference for Governor Jack Markell’s administration on June 5, 2009 at the Chase Center on the Riverfront in Wilmington, Delaware.

We plan for this conference to be unlike any small business conference conducted previously in the State of Delaware. The conference will focus on the Delaware small business community in particular and the entire business community at large.

The Governor’s Entrepreneurial Business Conference will be the State’s premier business conference for 2009. The goal of the conference is to usher in the resources Delaware’s small businesses need to succeed. It is indeed a "new way for a new day," and your involvement and participation in this conference will make a difference in your business!

Governor Jack Markell will be the Keynote Luncheon Speaker. The Director of the Delaware Economic Development Office Secretary Alan Levin, will share their vision for business in the State of Delaware and the new and developing initiatives being designed specifically for the Delaware business community.

This conference will serve as a "small business success road map" to all who attend; a roadmap that will clearly identify small business resources, support entities and their core competencies, all who have a renewed pledge to offer "bulls eye" support and assistance to Delaware’s small businesses both now and in the future.

Gone are the days when participants show up to acquire just another pile of "stuff." You are now entering the age when our small businesses will identify, ahead of time, their needs and requirements through the "Customize your Conference" link that will assist us in making sure the resources you identify are in place to serve you at the conference.

Click HERE for more information.

Wilmington Mayor James M. Baker delivered his FY 2010 Budget Address to Wilmington City Council tonight. The Mayor’s budget proposal is intended to keep Wilmington moving forward in terms of neighborhood and business growth even during uncertain economic times. The budget does not reduce City services. To address a projected $21.5 million budget deficit, the Mayor has proposed significant reductions among various categories in the budget including no salary increases for City employees. The combination of budget reductions and new revenue will help reduce the projected deficit.

For additional details about the budget reductions, a proposed increase in the property tax rate ($7.25 per month increase for the average assessed property) and a proposed increase in water/sewer fees ($5.00 per month increase for a customer using 15,000 gallons of water per quarter), please read the text below of the Mayor’s Budget Address tonight to City Council.

To view or download the FY 2010 Budget Financial Summary, visit the City’s website at www.WilmingtonDE.gov.

Here is the Mayor’s Budget Address to Council:

Good Evening Council President Griffiths, Treasurer Supinski, members of City Council, Department Directors and Managers, City employees and citizens of Wilmington.

No Turning Back on Our Progress and Our Future!

Tonight I will present the most difficult budget proposal I have had to assemble in my eight years as Mayor. It is a budget constructed in the midst of the most disturbing economic climate that I have seen in my 37 years in public service.

If there was ever a time for us to accept the fact that we are "in this together," this is it.

Whether your lot in life is currently good, bad or indifferent, now is the time that we all have to make sacrifices in order to make a very bad situation good again.

Now more than ever, we must work together to solve the local economic problems that are directly related to a national and world economic disaster that, so far, has no end in sight.

In my opinion, the financial crisis will not be over soon.

My message tonight should come as no surprise because Wilmington has not been spared from the same hardships facing cities, counties and states across the country.

That makes it imperative that we work together to preserve the prosperity and progress we have created in Wilmington over the last several years.

We can not and will not go backwards, especially not today, when we have very few options for surviving the economic crisis. We must continue to promote business and residential growth because these actions will sustain government services and strengthen our City’s financial base.

We can not and will not abandon the people or the programs that have helped us to create or retain thousands of new jobs and new homeownership opportunities in the past eight years. We must continue to strengthen our neighborhoods and create new ones, and we must assist private investors who believe in Wilmington and its future.

We can not and will not abandon the people in our community who have become more energized and determined in recent years to save our young people, to interrupt or stop the cycle of crime, and to make Wilmington a world class City.

We can not and will not abandon the people and programs that have made Wilmington a City that promotes the arts, cultural understanding, and the creation and expansion of entertainment venues that are so vital to our growing City, and our economic stability.

Together, over the past eight years, we have made sound, logical, and forward-thinking decisions about expenditures and the revenue needed to keep our City safe, clean, green, inviting, enjoyable and attractive to our own citizens and visitors alike.

As we move forward through Fiscal Year 2010 and beyond, we will continue to make sound, logical and forward-thinking decisions. Only now, we will have to do it in a new world that is battered and bruised, and in dire need of our collective wisdom, understanding and creativity.

Our Problem and the Realities of the Current Economic Crisis

Wilmington’s current financial problems did not develop because of how we spent public dollars. Our problems began last Fall when the world economic crisis rippled down to the local level, causing a dramatic drop in the amount of projected revenues.

We saw decreases in a number of areas including franchise fees, permits, the real estate transfer tax, investment income and, unfortunately, in the corporate filing fees that are some of our newest revenue sources.

To get through the current fiscal year ending this June 30th, we have cut expenditures as dramatically as we can, and will use reserves to close the gap.

From this point forward, the budget decisions we make will be much harder and much more complicated for all concerned.

However, without any hesitation, I say to you tonight "thank God" we made the correct decisions in the past few years to give the Finance Department the resources to collect delinquent revenue. In just a few short years, we have collected more than $30 million from delinquent taxpayers. Our financial problems would be far, far worse today, and the solutions would be near unbearable if it were not for this successful collection effort.

Even so, the solutions to our ongoing budget problems will still be tough, unwelcome and unpopular, but absolutely necessary.

We were elected to be leaders in good times and in bad, so let’s get on with being leaders and solve the worst financial crises many of us has ever or might ever experience.

Guiding Values

Before I present the details, I want you to know the values I used to craft the proposed FY 2010 budget. I feel it is important to respect and understand these values as we move through the budget debate and adoption process.

· First, everyone has a role in balancing the budget, including every City employee and administrator, every community group or individual receiving some type of government funding, and every citizen. Ours must be a shared burden.

· I also do not want to balance the budget by laying-off City employees. When layoffs are proposed, they inevitably lead to calls for across-the-board cuts that unnecessarily disrupt the levels of service we currently provide to citizens. Past experience has shown us that layoffs are costly, time consuming and seldom achieve their intended purpose. They should be avoided and only used as a last resort.

· Nor will I balance the budget by reducing people or programs by an amount equal to the projected deficit. Simply put, we can’t just cut our way out of this crisis. There are already those who are suggesting this. But, I believe this is foolish and impractical.

· The budget must be balanced through a combination of a reduction in expenditures, revenue increases, and the continuation of our delinquent collections process. We will also aggressively pursue Federal stimulus funding and only, if absolutely necessary, will we use cash reserves.

· Finally, I believe it is imperative that we avoid using the City’s Rainy Day Fund to balance the FY 2010 budget given the uncertain scope and duration of the world fiscal crisis.

Unavoidable New Expenses

When we began crafting the FY 2010 budget in January, we were faced with a number of troubling and unavoidable new expenses that if not addressed would have left us with a staggering $21.5 million budget deficit.

For example:

· The City’s Commerce Fund, from which we funded the annual expenses of the City’s Economic Development Office for the past 13 years from the proceeds of selling the Port of Wilmington to the State, is now depleted. In FY 2010, the General Fund must absorb $6.1 million to fund the operations of the Economic Development Office and pay the debt service for the Port, which is still on the City’s books.

· To reduce police compensatory time that has accrued over many years, the City and its Police union recently agreed to a new periodic mandatory payout schedule for compensatory time earned, but not taken. This item will add $850,000 to the new budget.

· The market for recycled goods has collapsed as part of the current worldwide economic decline. This means the City will now have to pay a $25.00 disposal charge for every ton of recyclables. In addition, landfill fees have increased due to increased trash tonnage. Together, this will show up as an increase of $337,000 in the new fiscal year. If anyone has any thoughts of not continuing curbside recycling, forget it—the program is too important and the consequences for the environment are far too great.

· $746,000 in costs associated with six new Finance Department positions we added this current fiscal year will be continued as an expense in the new fiscal year. However, this is money well-spent since Finance is projecting that these employees will help collect $14 million in additional delinquent wage and net profit tax revenues through the end of FY 2011.

· Litigation costs, telecommunication issues, union negotiations and other legal needs will add $218,000 more to the next budget.

What City Government Will Do to Reduce Expenditures

To address these and other mounting costs, we had to make some tough choices.

The decisions we made are similar to the tough decisions that governments all over the country are making in the current economic climate. If you have less revenue, you have to cut as much as you can up to the point when it becomes necessary for reasons of public safety, the fiscal strength of the government, and the City’s future, to find new revenue.

Before I address our new revenue proposals, here is what I am proposing that City government and its employees do to cut expenditures:

· I am asking all City employees, elected officials, union, non-union and administrators, to forego any salary or step increases for FY 2010. This will save $2.5 million. I have communicated why we need to do this to the leadership of the City’s unions. I have also sent information to all City employees who are not represented by a union. We need everyone’s cooperation and understanding and I am hoping we will receive it.

· As previously announced, we have cancelled the next police academy which was scheduled to begin in June. We have budgeted for an authorized strength of 326 officers, which is the highest number of officers in the police department’s history. Realistically, we will not be adding any more officers at this time, so we can save money by reducing the authorized strength of the WPD from 341 to 326. These two decisions will save $1 million.

· City Treasurer Henry Supinski, working with the City Actuary, will save us another $1 million by extending a projected annual 18% increase in pension funding. This move will not harm or penalize the pension fund or pensioners.

· We have applied for a federal Byrne Grant that will allow us to shift the cost of the highly successful Child Development Community Policing Program and the City’s Camera Watch Program from the General Fund budget to federal funding for at least the next year. In addition, this federal funding will allow us to pay for new weapons and ammunition for our police officers. These actions will save us almost another $1 million.

· We will reduce overtime throughout City government for a savings of $978,000.

· We will reduce the size of the City’s vehicle fleet by 27 vehicles for a savings of $400,000.

· We are reducing non-contractual support from the Mayor’s office for grants to agencies and events, and funding for scholarships. This will save us $518,000.

· We are reducing the expenditure for temporary workers throughout the government for a savings of $200,000.

· We will cut funding for travel and conference registration fees, for a savings of $138,000.

· We will suspend a large portion of the Street Cut Program scheduled to be implemented in FY 2010 by deleting two unfilled positions and eliminating engineering and software costs. Our savings here will be $282,000.

· In addition to the salary savings I have already noted, we have deleted four more positions from the General Fund, three of them permanently, for an additional savings of $225,000.

These reductions are difficult but necessary, as we share the burden of a weakening economy across all Departments of City government.

After all of the cuts I’ve mentioned, the budget I am presenting to you tonight totals $146.5 million. This is a 3.4% increase over the current year General Fund Budget. An increase that is largely due to the unavoidable increases I spoke of a few moments ago.

New Revenue Proposals

Now, I’ll turn to what I will ask from taxpayers in order to balance the budget after factoring in all proposed savings and required expenditures.

We have not asked the taxpayers of Wilmington for a property tax increase in four years.

Tonight, however, we must.

This comes at a most inopportune time when each of us is coping with the economic situation the best we can. It also comes after years of our government making sound and effective decisions about revenue and expenditures. Together, we put Wilmington in the best financial situation it has seen in years. But, it is amazing how quickly fortunes can change.

To balance the new budget, keep City service levels where they are today, and move forward with neighborhood and business growth and development, I must request a property tax increase of 15%.

This increase will add $7.25 per month to the average tax bill.

Because about 39% of the property in Wilmington is tax-exempt, this proposed increase will generate only about $4.7 million.

In addition to the property tax increase, I am also proposing the following fee and fine increases, along with new economic development revenue that together with the property tax increase will produce $8.3 million in new revenue for FY 2010:

· Parking citations would increase by $15.00, from $25.00 to $40.00 and produce $1 million in new revenue.

· Parking meter rates will double from $.50 per hour to $1.00 per hour, generating $407,000 in new revenue.

· Subject to State approval, the fine for traveling through a red light will increase from $75.00 to $110.00, producing an additional $490,000 in revenue.

· The monthly head tax paid by businesses in Wilmington that employ five or more people will increase by $5.00 to $15.00 effective January 1, 2010. This will produce $600,000 in new revenue.

· Additional revenue of $354,000 is projected from enhancements to the City’s booting program for delinquent traffic tickets and scofflaws.

· Our continuing commitment to economic development projects will produce more results in FY 2010 with $739,000 in new revenue from wage tax, fees, and property tax generated by the Upstairs Development Project which is helping to create a new, vibrant Downtown District.

What About Stimulus Funds?

I have directed all of our Department heads to seek any and all Federal stimulus funds that may help ease the City’s financial struggles. While some available funding, like the Police Byrne Grant I mentioned, may help offset operating expenses, other funding may help with critical capital projects, like our fire station renovation plan. These funds could also help us meet important climate change and ‘greening’ efforts we have set forth.

These capital dollars could turn out to be extremely important because I am also proposing to you tonight that we delay the funding of the FY 2008 capital budget until at least Fiscal Year 2011 to avoid additional debt service costs.

We are pleased to have already been awarded $1.6 million in HUD Stimulus funds, the majority of which will be used for continued support of homeless prevention programs throughout the City, including rental assistance, utility payments, security or utility deposits, and housing relocation and stabilization services.

The Water/Sewer/Stormwater Dilemma

Now I must turn to another fiscal problem that needs our immediate and sustained attention. The City’s Water/Sewer Fund is a disaster waiting to happen. It is not self-supporting and has not been for several years. You will recall that I suggested a few years ago that we adopt a four-year fee increase schedule to make the fund solvent. We stuck to the plan for the first two years, and then went off course in years three and four.

Unfortunately, during that time, the Water/Sewer Fund has lost ground. Its rates are simply insufficient to cover expenses. It has been hit by ever-increasing costs for chemicals and electricity. It has also suffered due to New Castle County’s refusal to pay its fair share of sewage treatment costs, an issue that has led us to legally binding arbitration.

Now the day of reckoning is here.

The Water/Sewer Fund is projected to be in a deficit position for the next several years. If we do not establish and stick to a sensible multi-year solution, it will have serious ramifications for the City’s entire financial structure. We must deal with this matter now.

I am proposing an increase in water/sewer rates and will ask Council to approve an upcoming resolution that puts us on the path of a multi-year, independently validated approach for setting sufficient yearly fee increases.

The first of the multi-year increases I am proposing tonight is 20% for the water/sewer fee and a 10% increase in the stormwater management fee. This will result in an overall rate increase of 18.21% for City water customers.

This represents a $5.00 per month increase for the average City water customer who uses 15,000 gallons of water per quarter.

Even with this increase, Wilmington’s water rates remain the best bargain in the region.

For example, the average City customer using 15,000 gallons per quarter will pay a combined bill of only $107.00, while customers of United Water pay $145 and Artesian customers pay $208.

These figures do not take into account Artesian’s pending 27% rate increase or New Castle County’s pending 10% sewer increase.

Earlier this week, I signed an Executive Order creating the Wilmington Water Sewer and Stormwater Review Council that will assist us in a fashion similar to the Wilmington Economic and Financial Advisory Council or WEFAC. I will soon send Council a resolution asking you to endorse a multi-year plan that will restore the fund’s fiscal health and keep it on track well into the future. (A copy of the Executive Order is attached at the end of this address)

The new Council will review government data concerning the cost of providing water, sewer and stormwater service to City residents and our customers in northern New Castle County. On an annual basis, the Council will also review and certify any necessary annual fee increases and an updated multi-year plan.

Closing Thoughts

These are times that are difficult for all of us.

The plan I have presented is painful in many ways, but I believe it is a balanced approach for dealing with the current economic climate.

There is no way to avoid adding to the burden placed on everyone’s shoulders to keep the City government and our wonderful City moving in a positive direction.

In spite of the challenges we face, I feel strongly that we will weather this storm and see better days.

As a City government though, we must plan for next year and beyond as though those better days are still somewhere in the future.

We cannot fail to do now what must be done for the future of our children and our children’s children.

We cannot play politics with the future of our City.

We cannot ignore the dangers of this current economy ands the way it has changed our lives.

We cannot play the coward’s game of fear.

We can, however, rely on our intelligence and creativity to take bold steps to protect and strengthen our City.

Wilmington is, after all, a great City with great people and great institutions.

All of us have made it a great City, and together we will continue to make it a world-class City.

We must continue to celebrate the wonderful growth of our City and not dwell solely on this climate of concern.

New and improved retail outlets, supermarkets and restaurants have opened, and others will open soon. The expansion of the Wilmington Hospital and Barclay’s Bank will create hundreds of new jobs. We are very optimistic about the expansion of other local companies that will also produce hundreds of new jobs. The Queen Theatre will come to life and bring additional respect and excitement to Downtown Wilmington. New ‘green’ businesses have opened or are planned. We have a real chance by working with DuPont, Delmarva Power, the non-profit community, and organized labor to make our City a regional leadership hub for climate change initiatives and other energy-saving and environmentally important efforts.

There are countless reasons to be optimistic about our future, because there are countless people working hard every day to make it a better future.

We should always learn from our history in order to be prepared for our future.

Benjamin Franklin’s comment to our Founding Fathers about our separation from Britain could easily apply to today’s need to pull ourselves out of this economic rut when he said, "if we do not hang together, we will certainly hang separately."

Before the Civil War began, Abraham Lincoln spoke words that could apply to today’s need for the country to work together, when he said, "A house divided against itself cannot stand."

The 1930’s Depression brought us wisdom for the ages from President Franklin Roosevelt who said, "The only thing we have to fear, is fear itself."

Today, President Barack Obama inspires us to move forward by honoring and learning from those who came before us to build America.

The President said, "I think about America and those who built it, this Nation’s founders, who somehow rose above the petty ambitions and narrow calculations to imagine a Nation unfurling across a continent. And those like Lincoln and King, who ultimately laid down their lives in the service of perfecting an imperfect union. And all the faceless, nameless men and women, slaves and soldiers and tailors and butchers, constructing lives for themselves and their children and grandchildren to fill in the landscape of our collective dreams."

As friends, neighbors and Wilmingtonians, we must put aside our divisions to ensure that our great City emerges from the current fiscal crisis stronger than ever.

We must all have faith and confidence that there is a better tomorrow in store for Wilmington.

God bless our country, God bless our City and God Bless all of you!