Sussex County Council will consider enacting a fee on building permits to help fund school construction projects that alleviate overcrowding.

A council’s May 13 meeting, members voted 4-1 to ask staff to draft a proposed school impact fee through a building permit surcharge. It was recommended by Councilman Steve McCarron, a business owner and former Woodbridge school board member who joined council in January.

Representatives of school districts in the county took to the podium in council chambers during the public comment session that preceded the discussion. They urged council to enact a fee to help fund projects to ease overcrowding in public schools resulting largely from booming housing development in recent years. 

A school voluntary assessment, authorized by the state General Assembly in 2023, was considered by council in January 2024. There was no support among council members and it did not come to a vote.

The concept of a fee on new construction has new life, as three incumbent council members were unseated in the fall elections by newcomers, including McCarron, calling for addressing consequences of booming development, such as crowded classrooms. 

Council Vice President John Rieley cast the lone no vote May 13. Rieley reiterated his position from January 2024 that a fee would be unfair to homeowners and shift some burden for school funding to the county.

“I think this problem needs to be solved at the state level and not the county level,” Rieley said.

The council on May 13 discussed creating a voluntary school assessment or a school impact fee collected through a building permit surcharge. New Castle County has a VSA, while Kent County assesses a building permit surcharge.

If council chooses to enact a building permit surcharge, it needs to get the state’s permission, then adopt a county ordinance to charge and collect the fee.  

“When I compare the two, I see more pros for the impact fee model for several reasons,” said Councilman Matt Lloyd. “I like the version that’s tailored to the county. I don’t like the idea of giving away the decision authority. I like that the control remains with the county.”

Jason Hale, Cape Henlopen School District’s director of operations, said after the council vote that a building permit surcharge would benefit all school districts in the county, while the VSA would help some – including Cape Henlopen – much more than others.

“Those of us in Cape want to see what’s best for Sussex County, not just Cape,” Hale said. “I recommend the impact fee over the VSA.”

“I am a strong supporter of a mechanism to ensure that the people who move into this county pay their fair share of the amount of money it takes to build our schools and manage our schools,” said Councilwoman Jane Gruenebaum.

“I’m a strong supporter of the Kent County building permit fee,” McCarron said, noting the fee would be completely under the control of the county, which could make changes.  

Council would have to determine the amount of the fee and the minimum amount of construction costs for which it would be applied, he said.

School building projects to ease overcrowding would still require a state certificate of need and voter approval through a local referendum, McCarron said.

A building permit fee would pay some of the local cost of school expansion projects and shift more of the burden to newcomers who have not yet paid for school facility costs, he said.

Tammy Smith, finance director for Indian River School District, said her school board passed resolutions in August 2023 and this March urging the county to pass a voluntary school assessment. Smith urged the county to create a funding mechanism for schools.

“We are in the process of constructing a new Sussex Central High School to alleviate overcrowding within our schools,” she said. “Additional funding resources are crucial to ensure that we can keep up with the pace of development.” 

Kelly Kline, a member of the Indian River school board and librarian of Selbyville Public Library, said the school and library both face pressure from growth. The library in November finished an expansion from 5,000 to 15,000 square feet, Kline said.

“The Cape Henlopen School District has been clear,” Hale said. “Continued development across the county has been placing an unsustainable strain on our schools and infrastructure. With each passing day, more developments are approved, each one compounding the pressure. And without an impact fee, the cost of accommodating this growth continues to fall on the backs of our existing taxpayers.”