Property taxes will be going up in the Colonial School District, driven largely by the third and final year of an operating referendum approved by voters in 2024.
Because it is in New Castle County, the district can take advantage of a state law allowing districts in the state’s most populous counties to set two different tax rates, one for residential property owners and another for non-residential property owners.
In Colonial, the residential tax rate will climb by 13%, from 45 cents per $100 of assessed value to 51 cents. Non-residential property owners will see an 8% increase, from 74 cents per $100 to 80 cents.
Much of those increases stem from a 2024 referendum for operating expenses, which voters approved by a nearly two to one margin.
Of particular concern as the district looks into the future is the amount of money it is spending on tuition for students with special needs. Colonial Chief Financial Officer Emily Falcon told Board of Education members that number is rising.
“The cost this year and the number of students that we are seeing with more complicated needs does continue to grow,” she said.
The growth is so dramatic, she added, that even after seeing a decline in enrollment, the district still qualified for more state funding.
“We lost 300 kids and the state's formula still says we need more teachers because that's the level of need that our students are showing,” Falcon said.
The recent surge in students with complex needs, and the district’s need to pay their tuition at appropriate institutions, means Colonial needs about $4 million more in the upcoming fiscal year to support them. Fortunately, Falcon told board members, the district has a surplus in its operating funds that can be used to offset some of the cost.
“I am recommending a smaller increase in the tuition tax than would otherwise be necessary if that $3,000,000 was not being repurposed for tuition,” she explained.
With the use of that operating surplus, the actual increase in the tuition tax is a modest one, less than one cent for both residential and non-residential taxpayers.
Board of Education members unanimously approved the new tax rate. Property tax bills will go out in the coming weeks, with taxes due by December 31.
