By Tony E Windsor

The Laurel Mayor and Council officially adopted the town of Laurel’s Fiscal Year 2025-2026 operational budget during their meeting on Monday, June 16. Town Manager Jamie Smith, joined by department heads, presented the proposal, which reflects a five percent increase over the previous fiscal year. Smith noted that the goal was to maintain a balanced budget without placing undue strain on residents, even as the cost of running town departments continues to rise.

The new budget anticipates continued housing growth, including the construction of at least 28 new townhome units and several single-family homes. Town officials are also reviewing plans for a larger residential development and working with a commercial developer to bring business activity to U.S. Route 13. In response to ongoing Sussex County property reassessments, the town is adjusting its tax rate to avoid generating additional revenue from the changes.

Smith emphasized the town’s obligation to follow federal regulations, especially regarding enterprise funds like water and sewer. These funds must be fully supported by system users and cannot draw from general tax revenue or grants. Any surplus must be set aside for future infrastructure maintenance or improvements.

Several line items in the FY2026 budget highlight increased revenue expectations, including an additional $32,000 from real estate tax penalties. Water and sewer penalties are also projected to climb significantly. New adjusted fees, excluding utility costs, will bolster revenue. These include rental license charges, police reports, site plan reviews, and construction permits. The town also introduced impact fees tied to police services, parks and recreation, stormwater management, and fire systems.

On the expense side, the police department saw the largest increase, with its total budget growing to over $3.1 million, up from $2.55 million the prior year. This includes higher personnel costs, janitorial services for the department’s move to the Dunbar building, and mandated testing for lead and copper in private water lines. Town employees across all departments will receive pay increases, and health insurance premiums will rise by five percent. Federal stormwater management (MS4) requirements remain a funded line item.

Fee adjustments adopted under Resolution 2025-3 take effect on July 1, 2025. Key increases include the administrative fee rising from $35 to $50, return check fees increasing from $35 to $50, and water reconnect fees jumping from $100 to $150. Building permit fees for new construction rise from $0.90 to $1.25 per square foot, while renovation permits will now cost $50 for the first thousand dollars and $10 for each additional thousand. Variance applications will cost $1,000, up from $500. Annexation fees triple from $500 to $1,500, with additional charges for professional services.

Several entirely new fees were also introduced. These include a $75 certificate of occupancy fee, a $500 police impact fee per “Equivalent Dwelling Unit” (EDU), a $500 park and recreation fee per EDU, and a $1,000 stormwater fee per EDU. Fire line impact fees were added based on pipe diameter, ranging from $2,500 to $6,000, along with a $250 annual fire sprinkler fee. A $100 annual grease trap inspection fee was implemented, with escalating fines for violations. Additionally, the Dunbar facility usage fee will increase to $20 per hour, and notary services will now cost $5.

On the development side, fees were restructured for site plans, subdivisions, and annexations. Developers will now be responsible for legal and engineering review costs. The town also eliminated the waiver of rental license fees for properties occupied by family members or in rent-to-own arrangements, making all rental units subject to the annual fee.

In total, the FY2026 budget projects $7.4 million in revenue across all government and enterprise operations, matching the expected expenditures. The police department accounts for the largest share of the general fund spending, followed by wastewater and water enterprise operations.

With a focus on sustainability, compliance, and controlled growth, Smith said the FY2026 budget sets the course for Laurel’s continued development, infrastructure maintenance, and essential service delivery, while sharing more of the financial responsibility with developers and users of town services.