Newark officials have withdrawn a proposal for a 1 percent tax hike in 2021.
The tax hike would have generated $39,000 in 2021. A reduction in employee health care costs will help make up for not having that additional revenue, as the premium renewal cost came in lower than expected, according to city spokeswoman Jayme Gravell. The city will also reduce a capital project by $20,000.
The tax increase was proposed by City Manager Tom Coleman on Oct. 6 as the city continues to feel the impact of the pandemic and the economic downturn.
Officials are projecting a revenue decrease of 2.4 percent, mostly due to a drop in utility sales related to the University of Delaware moving much of its operation online and some businesses remaining closed. Other expected revenue decreases include parking fees, lodging tax, traffic fines and parks and recreation fees.
Meanwhile, officials have made a number