Millsboro residents approve referendum

By Glenn Rolfe
Posted 11/20/21

MILLSBORO — Residents said “yes” Saturday to a Millsboro referendum request that gives the town multi-million-dollar borrowing authority for capital improvement projects and …

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Millsboro residents approve referendum

Posted

MILLSBORO — Residents said “yes” Saturday to a Millsboro referendum request that gives the town multi-million-dollar borrowing authority for capital improvement projects and infrastructure upgrades.

By a 143-77 margin in the six-hour referendum, voters authorized the town to borrow up to a maximum $38 million, if needed.
“Almost a 2 to 1 margin in favor of the referendum,” said Millsboro Town Manager Sheldon Hudson. “So certainly, I think that is a solid result. We’re very appreciative for those who came out to vote, especially those who voted in favor. We don’t take that lightly as a town. We will certainly continue to budget in a fiscally conservative way moving forward.”

Projected projects and needs include a second sewage treatment plant, a new police station and replacement of aging water and sewer lines.

While many new homes have come into the town and continue to be built in communities such as Plantation Lakes, the majority of the town’s infrastructure is more than five decades old, dating back to the mid-1960s, according to town officials.

“There are some lines that are newer that are in need of replacement. But a lot of those will be the ones that were part of the initial water and sewer infrastructure in the town dating back to the 1960s,” said Mr. Hudson.

The lion’s share of any authorized borrowing would likely be for an additional sewer plant, which Mr. Hudson said would likely cost “tens of millions of dollars.”

A new police headquarters for the town’s growing police force is in the works. A 2.5-acre site on Ellis Street is the proposed location for a new police facility that would be built to accommodate a force of 30, with built-in expansion options, Millsboro Police Chief Brian Calloway said.

The current police station on Main Street has been the departmental hub since 1998 and was structured for 10 to 12 officers.

The current force stands at 17, with an authorized strength of 21 officers. “We will be at 21 hopefully by the end of this year,” Chief Calloway said.

Projected cost of the new station is about $7.5 million. The town, which has $5 million in reserve for the new station, has received state bond funds in the amount of $550,000, earmarked for a community center within the new station that Chief Calloway said would serve as a classroom and for community use and civic programs.

Design plans for the police station are 75% complete. “My hope is I’d like to have this thing to bid by anywhere from spring to summer next year,” Chief Calloway said.

Town officials say every effort will be made to seek and secure available state and/or federal funding, some possibly coming with partial or total principal forgiveness incentives.

“Let’s say theoretically the town ended up borrowing $30 million for an additional sewer plant. Based on past experience we have reason to believe the majority of that $30 million would be principally forgiven. But you have to go through the formality of getting the borrowing authority,” said Mr. Hudson. “Our goal obviously is to keep that borrowing down and get as much state and/or federal money as we possibly can.

“What was approved by the voters today is borrowing authority,” said Mr. Hudson. “To me it’s synonymous roughly with a credit line increase. Just because you have a credit line increase doesn’t mean you’re going to go out and spend that tomorrow. That being said, realistically, I do expect borrowing requests to come forward in the next couple of years. But again, it has to come back before the town council and be voted on. This is the first step in a multi-step process.”

Town officials are at present unable to provide any definite scope on the impact referendum passage will have in terms of impact on water/sewer rates. That would be determined at the time the town elects to exercise its borrowing power and the amount borrowed.

Growth, both commercial and residential, has been ongoing for many years in Millsboro, which ranks No. 1 in residential growth in Sussex County — Delaware’s fastest growing county. Referendum passage enables the town to be better prepared, Mr. Hudson said.

“My thought is we don’t want to be in a situation as a town, where let’s say we — God forbid — have an emergency next week. This process takes a few months. Then we are waiting those few months, which are valuable,” said Mr. Hudson. “We want to be prepared. This is a proactive measure.”

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