By Benjamin Rothstein

DOVER — City Council convened the week of May 27 to discuss the forthcoming budget, which passed 6-3 after three days of debate and resulted in an increase in property taxes.

Two variables rose to the top quickly among council members on May 28, 29, and 30.

First was the implementation of a property tax increase, originally proposed to be 3 cents per $100 of assessed fair market value. Dover’s current rate is $0.415 per $100 assessed.

The boost in funding would assist with revenue, which city manager David Hugg and several council representatives said the city needs.

“We talk about kicking the can down the road. Come 2026, there’s no guarantees. We may be in the same predicament or even worse,” Councilman Brian Lewis said.

A second point of contention was a catchup plan for pensioned employees. One retiree, Traci McDowell, noted that they were being underpaid — around 30% below the poverty line — which is something City Council said it wanted to rectify.

The pensioners are also already planned to get a 2% yearly increase, starting in 2025.

These two elements were discussed extensively over two days. On May 30, Mr. Hugg gave council four options and described how they would affect the budget.

Option A included only the 3-cent property tax increase. Option B had a 2-cent increase, as well as the removal of the Streets Division, which handles street repaving, repairs and Americans With Disabilities Act street-related improvements. Option C had a 1-cent increase, along with the removal of both the Streets Division and the purchase of some road construction equipment. Lastly, Option D had no increase in property tax, a 5% decrease in the general fund’s operating budget and the removal of the Streets Division and the equipment purchases.

Each of the options also included three additional pension checks.

Ultimately, council decided on Option B, meaning a 2-cent property tax increase will be put into effect when the budget is enacted July 1.
The option will leave the city with an additional $2 million.

Regarding the removal of the Streets Division and canceling the equipment purchases, Councilman Andre Boggerty said funding from other places could potentially come for these projects down the line.

Not all council members agreed on the choices.

“I’m saying that the reason why I won’t support B is only because of the tax increase because I never want a tax increase,” Councilman Roy Sudler said. “So, my compromise, for me, would be (a 1-cent increase).”

The schedule for the additional pension payments will be decided at the Aug. 15 council meeting. Meantime, city staff will be instructed to run the numbers to distribute funds based on time since retirement and, potentially, poverty status.

Councilwoman Tricia Arndt and Councilmen Sudler and Lewis voted against the budget.

The first reading of the budget ordinance for adoption will take place at the June 10 council meeting.