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Milford school officials ask city to back county school impact fee to fund capital needs
Summary
Milford School District representatives described the funding gap for major and minor school capital projects and urged the city to support a county-level school impact fee model similar to Kent County's 1.16% building-permit charge. Council members voiced support and raised concerns about affordability, exemptions and state-level authorization.
Dr. Sarah Hale, representing the Milford School District, told the Milford City Council in workshop remarks that the district is studying a county-level school impact fee to help pay for school capital projects.
"Currently Kent County charges 1.16% on their building permits, and that goes to the school district," Hale said, adding that the Milford Middle School project was fully funded without raising local taxes in part because of Kent County's impact-fee revenue. Hale told council staff that, using city permit records since 2020, the district estimated it would have received "just over $400,000" in qualifying revenue under a 1.16% charge.
The request matters because Milford school leaders said state-level authorizing legislation will be required before Sussex County, or an individual municipality, can collect an education impact fee. Hale said school officials are talking with Sussex County Council members and plan to seek authorizing legislation at the General Assembly when it reconvenes.
Council members and other participants discussed how a fee could be structured and who would pay it. Speakers referenced the Kent County model'including exemptions'noting that the Kent ordinance exempts permits under $60,000 and places a cap for some nonresidential uses (about $1 million under that model). Several council members said a percentage-based fee is more scalable than a flat fee and suggested thresholds to protect ADUs and lower-cost housing.
Rob Pierce, who provided building-permit data to the school district, confirmed the office'based calculation: the $400,000 figure reflects qualifying permits issued since 2020 under an assumed 1.16% rate.
Council members raised two practical points. First, several said whether the fee applies only in unincorporated county areas or also inside municipal limits is an unresolved policy choice for Sussex County; Kent County's existing program currently applies only in unincorporated areas. Second, members cautioned about the fee''and any related communication''affecting affordable-housing goals and public referendums, noting the need to set thresholds, exemptions and clear public information.
Other residents and participants who spoke during the workshop expressed general support for tying new development to school capital needs, while urging careful public outreach. No formal action or vote was taken; city staff and council members said they will follow Sussex County's work and consider further discussion in future meetings.
The school district emphasized it wants revenues to cover both major renovation projects and smaller, recurring capital needs that state funds do not fully cover. Hale said the district has applied in recent years for state certificates of necessity for larger projects but did not receive them this year, leaving the district short on major-capital funding.
