GREENWOOD, Del. - A proposal to dissolve Greenwood’s municipal government is fueling debate over the town’s finances, taxes and future services.
Some people in Greenwood are calling for the town to disincorporate and become part of unincorporated Sussex County. Supporters argue the change could reduce taxes and shift services to county agencies, while town leaders warn it could eliminate local control and weaken public services.
Jordan Warfel, a member of Greenwood’s Board of Adjustment, is helping lead the disincorporation effort. He said concerns about the town’s finances prompted him to begin discussing the idea about a year ago.
Warfel said Greenwood budgeted about $1.1 million for the year and had already spent more than $1 million by the end of June. He also said about $300,000 in the town’s general fund is restricted bond money that cannot be used for normal operating expenses.
Warfel argues Greenwood taxpayers are paying both town and county property taxes while receiving services that Sussex County could potentially provide.
“The town’s taxes are substantially higher, about 10 times higher than the county’s,” Warfel said. “The county offers essentially what are the same or comparable services.”
Mayor Donald Donovan strongly disputes claims that Greenwood is nearing insolvency. He said the town is paying its bills and plans to make changes to maintain financial stability.
Donovan said disincorporation could mean losing Greenwood’s police department and direct control over water, code enforcement, street maintenance and other local services.
“Sussex County is a big county,” Donovan said. “To think they’re going to come over here for every little issue you have, it’s kind of unbelievable.”
Homeowner Bill Baker said his biggest concern is the future of local policing. Greenwood currently has a small municipal police department, and Baker said officers can respond more quickly because they are already based in town.
“The town police force is right here in town,” Baker said.
Baker also said dissolving the municipality could weaken the identity and pride associated with living in a small town.
The process would require action from the Delaware General Assembly. State lawmakers would have to introduce legislation repealing Greenwood’s municipal charter, with a two-thirds vote required in both the House and Senate.
No bill has been introduced.
Warfel said the proposal remains in the community discussion stage. He plans to hold additional meetings before lawmakers return to Dover in January 2027.
The last Delaware municipality to disincorporate did so in 1921, according to the state Division of Legislative Services.
