Delaware County’s preliminary 2027 budget shows $1.1 million gap as officials weigh infrastructure projects

DELAWARE — Delaware County’s preliminary 2027 budget includes about $1.1 million more in spending than expected revenue, but county officials say additional cuts will be made before commissioners approve a final budget.

Finance Director Justin Navhi projects the county will bring in $166.5 million through property taxes, sales taxes, charges for services and other revenue sources.

As it stands now, that number comes over $1 million below the expected expenditures, estimated at $167.6 million.

But County Administrator Tracie Davies noted she and other staff aren’t done putting the budget together completely to make sure the county is not overspending.

“We need to make additional cuts to achieve our balanced budget, but we wanted to go through the budget hearings before recommending cuts,” she told commissioners.

Commissioners heard budget requests from six county departments during hearings last week, including proposed spending on new employees, infrastructure improvements and maintenance projects.

“It’s always a challenge every year,” Commissioner Jeff Benton said. “We get more asks than what we have available.”

The county also maintains a cash reserve equal to 25% of the previous year’s revenues.

Navhi expects the largest share of expenditures will come under the public safety category at 41.5% of total spending, followed by general government spending at 29.6% of the total.

He attributed some of the proposed spending increases to inflation, growing demand for county services, a 2.4% increase in health insurance costs and population growth that requires additional infrastructure.

The proposed budget includes 21 new positions in 2027, including seven Emergency Medical Services employees and two Sheriff’s Office employees.

Benton emphasized the importance of closely reviewing requests for new positions because they represent ongoing costs to the county.

Facilities Department requests

Facilities Director Jon Melvin presented his department’s budget requests to commissioners Nov. 2.

Melvin said the department is not requesting any new positions or increases in materials and supplies. In fact, the department has one fewer employee following the retirement of its mail clerk earlier this year.

However, rising utility costs, increased maintenance contracts and higher fuel prices are driving up expenses. Melvin said fuel cost is the biggest impact to the budget, because diesel is almost $3 a gallon more than last year.

Melvin also requested funding for several permanent improvement projects, including:

• $915,000 for rooftop HVAC unit replacements at the Hayes Building, which houses Probate Court at 145 N. Union St.
• $800,000 to replace the Mitel phone system across county facilities.
• $325,000 for a new flat roof and $275,000 for a hot water boiler replacement at the county jail.
• $200,000 to rebuild or replace a chiller at the Willis Building.

Melvin said the proposed permanent improvements total approximately $3.17 million, although the department typically cannot complete every project in a given year.

The department also plans to finish renovations to the Willis Building in 2027, continuing work that began in 2026.

Melvin plans to secure a contract for phase one of the jail renovation project, which involves a medical and mental health area update, a kitchen update, administrative area upgrades as well as some dormitory improvements.

Commissioner Gary Merrell asked whether the county was pursuing state funding for the project. Melvin said it was, although funding might not be available.

He also noted the new EMS Station 3 and Sheriff’s Office south substation that will be located on Home Road are currently in the design phase.

Regional Sewer District requests

Regional Sewer Director Tiffany Maag requested a 2027 budget of approximately $16.97 million, covering operating expenses such as salaries and benefits, materials, supplies and services.

The department also plans to fill 11 vacant positions.

Maag said the district expects to finish 2026 with revenue approximately $859,000 below budget, partly because several anticipated development connections have been delayed.

Five multifamily developments originally expected to connect this year are now scheduled for 2027. Together, those developments represent 912 housing units that will require sewer service.

The sewer district also has several capital projects planned, including:

• Central Alum Creek Water Reclamation Facility: A new wastewater treatment plant would provide sewer service to portions of Berlin and Berkshire townships surrounding Alum Creek. An environmental assessment and facilities plan are expected to be submitted in 2027, with additional work planned for 2028.
• East Alum Creek pump station: The $4.5 million project will provide sewer service to the Tanger Outlets mall. Maag expects construction to finish in 2027 and has budgeted $1.5 million for the remaining work.
• Harlem Township trunk sewer: Design work is approximately 30% complete, with $690,000 budgeted for the remaining design costs. The project is currently on hold pending decisions about township zoning and a reimbursement strategy.
• West Branch Alum Creek interceptor: The district is planning to increase the sewer line’s capacity to accommodate continued development. Design is estimated at $600,000.
• Berkshire Township pump station: Maag said the project has appeared in the district’s budget for 10 years. She has allocated another $250,000 for design work.

County Engineer’s Office requests

The Delaware County Engineer’s Office expects approximately $41.1 million in revenue in 2027, compared with an estimated $44.5 million in expenditures.

The department is responsible for constructing and maintaining county roadways, with proposed spending covering employee compensation, materials, services, capital projects, grants and debt payments.

County Engineer Chris Bauserman and Chief Deputy Engineer Rob Riley highlighted several major road and bridge projects expected to require funding in 2027, although many will take several years to complete.

The office currently has 80 projects in its five-year plan.

Among the planned projects are:

• South Old State and Hollenback Road: The road will widen to three lanes from Avonlea Way to Hollenback Road with turn lanes and a traffic signal will be installed. Construction will last from fall of 2027 to fall of 2028.
• Byxbe Parkway, phase 1b: A new four-lane road will be constructed from U.S. Route 36/State Route 37 at Glenn Road north to the existing Byxbe Parkway. The project goes out to bid in the winter or spring, and construction will begin in the summer and last 15-18 months.
• Berlin Station Road, phase 2b: There will be pavement widening and a drainage upgrade on two sections of Berlin Road. Construction will last from fall 2027 to fall 2028, with an estimated construction cost of $3.5 million.
• Monkey Hollow over Big Walnut Creek: A new bridge will be constructed in the summer or fall of 2027 at a construction cost of $2.5 million. Riley said this is one of the few remaining bridges that needs attention.
• Home Road Extension to Lewis Center: This extension will build a bridge over two railroads to connect Home Road to the new roundabout on Lewis Center Road near Evans Farm, including a shared use path. Construction will begin in the summer of 2027 and cost an estimated $18 million.
• Orange Road railroad grade separation: This more than $48 million project involves constructing a new railroad underpass carrying Orange Road under the CSX and NS railroads. In 2027, Riley expects to finalize railroad permits and land acquisition before construction begins in 2028.
• Federal Highway Safety Improvement program projects: These roundabout projects will receive federal funding in the construction phase, with the county paying for design and right-of-way acquisition. They include a new single-lane roundabout at U.S. 36 and Ostrander Road, a roundabout at South Section Line and Clark Shaw Road and a roundabout at State Route 745 and Moore Road.

“We are really pursuing as many good projects as we can,” Riley told commissioners, noting the number of available engineers limits how many projects the office can manage.

Bauserman emphasized the rising cost of construction and the financial challenges associated with maintaining and expanding county infrastructure.

“I don’t think most people understand how expensive it is to do things that we’re doing, especially when we consider that the last five years what construction costs have done, it’s pretty staggering,” he said.

Commissioners also heard budget requests from the Delaware County Sheriff’s Office, Delaware County EMS and Delaware County 9-1-1 Department. Those requests will be covered in a second story.