Mayors Again Ask County To Share Sales Tax Revenues With Municipalities - Finance Committee Expected To Address Request Oct 8

DELHI - The Delaware County Finance Committee received a letter from the Delaware County Mayor's Coalition at their regular meeting on September 24. The letter outlines a proposal to share sales tax revenues with local municipalities, a request that has been submitted on multiple occasions.

The letter was distributed to all committee members by Colchester Supervisor Arthur Merrill, who serves as the County Budget Director and finance committee chair. The committee is expected to review the request for discussion at the next meeting on Wednesday, October 8, at 10:30 a.m.

Mayors first presented the shared sales tax model to the finance committee in August 2024, hoping that the shared tax could help offset village budgets. The request was not included in the 2025 budget; however, Merrill said at the time it was "not a dead subject." The two parties have been discussing the option since.

The letter acknowledges past budgetary concerns from county board members. Some supervisors have stated that county-wide initiatives, such as the tourism advisory board and grant opportunities funded by sales tax revenue, help support local economies. The grant funding helps businesses and infrastructure grow, and contributes to the sales tax revenue pot, some say. Merrill has stated that the funds help maintain the county government's financial stability.

In 2023, the county had only one bond outstanding, with no other debt. A 2024 audit reported no violations or issues in the county's financial management.

While appreciative of shared service initiatives, the Mayor's letter states, "...they do not always deliver equal impact across all communities."

Mayors argue that "A fair revenue-sharing model would empower municipalities to invest in projects and services most beneficial to their specific community."

They further state that many villages have "...pressing financial challenges that underscore the urgent need for financial support simply to maintain essential services for their residents." They emphasize the financial struggles of villages, which threaten their resilience.

Sales tax revenues are believed to help sustain the local police force, offset EMS costs, improve staff compensation, fund grant writing support, provide matching grant allocation, and help prevent dissolution.

Mayors propose that sales tax revenue be split based on final sales tax revenues from the preceding year, calculated annually. They suggest using a model developed by Walton Supervisor Joe Cetta, which uses the County's weighted voting system, or basing allocations on assessed land values. They propose that 25% of the County's $21 million budgeted estimated revenues be distributed to towns and villages, respectively. They further suggest the budget estimate be adjusted annually by the Consumer Price Index or by 2%, whichever is greater.

The County Finance Committee has already begun the budgeting process for 2026. The Delaware County tentative budget is typically due in mid-November.