The Town of Smyrna is doing away with school impact fees.
At a meeting last month, council members unanimously passed a 30-day moratorium on collecting the fees - usually between $5,800 and $10,000 per new unit of construction. They also heard from a Home Builders Association of Delaware attorney, who argued the town couldn’t legally collect those fees.
On Monday, council members seemed to buy that argument, voting unanimously to repeal school impact fees altogether.
At last month’s meeting, members of the Smyrna Board of Education took a pugnacious tone, arguing if new construction is causing the need for new schools, then some of that cost should be paid by the builders of those new homes. But on Monday, Board of Education Vice-President Jonathan Snow struck a more conciliatory note.
“We look forward to finding other ways that we can work together in the future," Snow told council members. "So thank you guys very much. Thank you for putting the time and effort in to seriously consider that. And we also look forward to hearing from counsel for the Delaware Home Builders Association, as they've said, they look forward to supporting districts, so if we hear any update from them, we’ll be sure to let you know.”
In a statement, the Board of Education seemed to concede the legal argument against the town collecting school impact fees, but noted it is, “discouraging that developers will no longer be paying for the true impact new construction has on the District.”
In another vote, council members approved a one-time credit to electricity rateplayers.
The town is getting a refund from the Delaware Municipal Electric Corporation following the closure of the Indian River Power Plant in February.
The $276,000 refund comes from adjustments to the Purchased Power Cost Adjustment Clause after the state’s last coal-powered plant was shuttered. On ratepayers’ bills, it adds up to a fraction of a cent per kilowatt hour used.
Council members agreed to a one-time rebate of 76% of that PPCAC cost on the most recent month's bill - a relatively small amount, noted Town Manager Torrie James.
“This is 76% of the PPCAC not the [total] billing," James said. "PPCAC is a very small amount and some people might see $20 or $30.”
The rebates are expected on the next power bill.
