Newcastle County Council updates impact fees to reflect 2023 inflation rates

New Castle County's Land Use Committee is taking significant steps to update its impact fee structure, aiming to better reflect current economic conditions and support local development. During a meeting on June 17, 2025, committee members discussed Ordinance 24-045, which proposes amendments to the Unified Development Code (UDC) regarding impact fees.

The ordinance seeks to adjust impact fees for various services, including libraries, fire and rescue, emergency medical services, law enforcement, and parks. Notably, the proposed changes will align fees with the Consumer Price Index (CPI), allowing for annual reviews and a comprehensive study every five years. This shift from the previous construction-focused index aims to provide a more accurate reflection of overall inflation and the costs associated with essential services.

Matthew Rogers from the New Castle County Department of Land Use presented the ordinance, highlighting that the updates would exempt certain types of housing from impact fees, specifically workforce dwelling units and low-income housing. This move is designed to alleviate concerns about the potential negative impact on affordable housing initiatives.

Committee members expressed support for the ordinance but raised questions about its implications for redevelopment projects, particularly brownfield developments. Councilman Cartier emphasized the need for careful consideration of the impact on local fire services, noting that redevelopment can create new demands on emergency services.

The committee's recommendation for conditional approval signals a commitment to modernizing the impact fee structure while balancing the needs of development and community services. As the ordinance moves forward, it aims to foster responsible growth in New Castle County while ensuring that essential services remain adequately funded.