This Article addresses facilities and services that New Castle County provides which are impacted by population growth and new development. The further development of the County will necessitate the need for supporting facilities and equipment. This Article ensures that new development contributes adequate funds to enable the County to provide these facilities in a timely manner and at an established levels of service.

(Ord. No. 97-172, § 3(ch. 13, div. 14.000), 12-31-1997)

New Castle County may require that new development provide impact fees for the following services:

A.

Residential uses:

1.

Libraries.

2.

Fire and Rescue.

3.

Emergency Medical Services (EMS).

4.

Law Enforcement.

5.

Parks & Special Facilities.

6.

County Facilities.

B.

All other uses:

1.

Fire and Rescue.

2.

Law Enforcement.

3.

Emergency Medical Services (EMS).

4.

County Facilities.

(Ord. No. 97-172, § 3(ch. 13, § 14.010), 12-31-1997; Ord. No. 98-130, § 1, 1-12-1999; Ord. No. 01-112, § 1(Exh. A), 3-12-2002; Ord. No. 06-042, § 5, 7-25-2006)

A.

Impact fees are one (1) time payments used to fund system improvements needed to accommodate development. Impact fees for the County are proportionate and reasonably related to the capital facility service demands of new development. The impact fee methodologies establish that impact fees will adequately benefit new development. The County's impact fee methodology also identifies the extent to which newly developed properties are entitled to various types of credits to avoid potential double payment of capital costs.

Demand indicators are documented by type of development for each type of impact fees. Specific capital costs have been identified using local data and current dollars. Also, for each type of fee the impact fee report includes a summary table indicating the specific factors used to derive the impact fee. These factors are also referred to as level-of-service (LOS) standards and are contained in the document impact fees by Tischler Associates, Inc.

There are three (3) basic approaches used to calculate the various components of the County's impact fees. The impact fee for libraries uses a plan-based method. This method is best suited for public facilities that have specific capital improvement plans.

Impact fees for parks, public facilities and equipment, EMS, fire/rescue and law enforcement are derived mainly from the incremental expansion method. This method documents the current LOS for each type of public facility in both quantitative and qualitative measures. LOS standards are determined in a manner similar to the current replacement cost approach used by property insurance companies. However, in contrast to insurance practices, the County will not use the funds for maintenance and/or replacement of existing facilities. Rather, the County's intent is to use impact fee revenue to expand or provide additional facilities, as needed to accommodate new development. An incremental expansion cost method is best suited for public facilities that will be expanded in regular increments, with LOS standards based on current conditions in the community.

A third method, known as the buy-in approach, has been used in the calculation of the parks impact fee. The rationale for the buy-in approach is that new development is paying for its share of the useful life and remaining capacity of existing facilities. This method has been used for the County's special parks that should adequately serve residents until the year 2020.

Another general requirement that is common to impact fee methodologies is the evaluation of credits. There are several types of credits that have been considered. First, a future revenue credit has been evaluated to avoid potential double payment for capital facilities through both one (1) time impact fees and ongoing revenues that may fund system improvements.

The second type of credit is a site-specific credit for system improvements that have been included in the impact fee calculations. Project improvements normally required as part of the development approval process are not eligible for credits against impact fees. Specific policies and procedures related to site-specific credits for system improvements will be addressed in the ordinance that establishes the County's fees. However, the general concept is that developers may be eligible for site-specific credits only if they provide system improvements that have been included in the impact fee calculations.

B.

A synopsis of each impact fee is provided below:

The parks methodology used to calculate the parks impact fee includes an incremental expansion cost component to district parks and a buy-in cost component by special parks. The library methodology contains LOS standards for libraries which have been set using projected population in the year 2005, which corresponds to the opening of the new North Regional library. The County facilities methodology uses an incremental expansion cost approach that includes office space and vehicles. The emergency medical services (EMS) methodology uses an incremental expansion cost method, which was used to derive fees based on the current LOS standards in the County.

The fire and rescue methodology is based on an incremental expansion cost method. The current inventory of fire stations and equipment was used to establish the LOS standards on a Countywide basis. The County will collect fees by fire district, and amend its contract with the volunteer companies to transfer the funds as needed for growth-related capital facilities and equipment. The law enforcement methodology is based on an incremental expansion cost methodology, which has been used to determine an impact fee for law enforcement headquarters, communications systems and vehicles. Calls for service data were used to allocate capital costs to residential and nonresidential development.

C.

Population values are as follows:

1.

Single-family: two and nine tenths (2.9) persons per dwelling unit.

2.

Attached single-family: two and seven tenths (2.7) persons per dwelling unit.

3.

All other housing: two (2.0) persons per dwelling unit.

(Ord. No. 97-172, § 3(ch. 13, § 14.110), 12-31-1997; Ord. No. 98-130, § 2, 1-12-1999; Ord. No. 99-042, § 3, 6-22-1999; Ord. No. 10-113, § 1(Exh. A), 1-18-2011)

The costs to maintain the standard level of service shall be calculated on a per dwelling unit basis. The costs may include expenses related to buildings, vehicles, equipment, land, and other capital equipment and costs incurred in order to provide the service or facility. Cost estimates of planned systems or services may also be used.

(Ord. No. 97-172, § 3(ch. 13, § 14.130), 12-31-1997)

Impact fee amounts are provided in Table 40.14.210.

Table 40.14.210
IMPACT FEES (DOLLARS)

(Ord. No. 97-172, § 3(ch. 13, § 14.210), 12-31-1997; Ord. No. 98-130, § 3, 1-12-1999; Ord. No. 99-042, § 4, 6-22-1999; Ord. No. 00-024, § 3, 6-13-2000; Ord. No. 01-112, § 1(Exh. A), 3-12-2002; Ord. No. 06-007, § 6, 3-28-2006; Ord. No. 06-042, § 6, 7-25-2006; Ord. No. 06-047, § 1, 8-22-2006; Ord. No. 10-113, § 1(Exh. A), 1-18-2011; Ord. No. 25-045, § 1, 6-24-2025)

The impact fees hereby imposed shall be paid to the Department prior to the issuance of a certificate of occupancy or use. At the time of full payment, the Department shall issue a receipt to the applicant reflecting the type and amount of each impact fee. No certificate of occupancy or use shall be issued until all impact fees are paid in full.

(Ord. No. 97-172, § 3(ch. 13, § 14.220), 12-31-1997; Ord. No. 98-130, § 4, 1-12-1999)

A.

All costs in the impact fee calculations are given in current dollars with no assumed inflation rate over time. Necessary cost adjustments will be made as part of an annual evaluation by the Office of Finance which shall be reported to County Council by February 1 of each year and include any proposed corresponding update of impact fees utilizing the Consumer Price Index since the most recent adjustments or another professionally recognized and documented method or study. Any impact fee adjustments shall be implemented upon approval by New Castle County Council.

B.

Starting in January 2027 and no more than every five (5) years thereafter, the Office of finance in coordination with the Department of Land Use, shall prepare or have prepared, a study to review all impact fees. Such studies may propose any new or revised impact fees needed to provide services to support new development, to reflect the higher costs of development in State Strategy Levels 3 and 4, or to protect natural resources. Any proposed new impact fee shall be reviewed for adherence to the methodology in this Article and shall be implemented upon approval by New Castle County Council.

(Ord. No. 97-172, § 3(ch. 13, § 14.230), 12-31-1997; Ord. No. 98-130, § 5, 1-12-1999; Ord. No. 10-113, § 1(Exh. A), 1-18-2011; Ord. No. 25-045, § 1, 6-24-2025)

The Department, in consultation with the Department of Public Works, may approve on-site donations of land as meeting in whole or in part the impact fee requirements contained in this Article. In the Traditional Neighborhood, all the community open space shall be credited towards the parkland requirement.

(Ord. No. 97-172, § 3(ch. 13, § 14.240), 12-31-1997; Ord. No. 09-037, § 1, 10-13-2009; Ord. No. 18-031, § 69, 4-24-2018)

The following are exempt from the impact fee requirements of this Article:

A.

Workforce dwelling units developed under the former workforce housing incentives.

B.

Moderately priced dwelling units as noted in this Chapter.

C.

Low income housing (<100% AMI as determined by the Department of Community Services or any qualified units built using the IRS Low Income Housing Tax Credit (IRS Section 42) or participating in the Delaware State Housing Authority/Cinnaire Catalyst Fund.)

D.

Redevelopment or Brownfields as per Section 40.08.130.

E.

Development on land in the Publicly Conserved Lands & Parks (P) District.

(Ord. No. 25-045, § 1, 6-24-2025)

Editor's note— Prior to the reenactment of Section 40.14.241 by Ord. No. 25-045, § 1, adopted June 24, 2025, Ord. No. 06-042, § 7, adopted July 25, 2006, repealed the former Section 40.14.241 in its entirety, which pertained to sewer impact fees and derived from Ord. No. 97-172, § 3(ch. 13, § 14.241), adopted December 31, 1997.

If an applicant disputes the amount of the impact fee to be charged pursuant to this Article, the applicant may perform a private impact fee study. A copy of this study shall be delivered to the Departments of Land Use, Law and Finance. The applicant shall submit all supporting data for the study and timely respond to any requests made by the Departments for any additional information related to the study. The Department of Land Use may hold a hearing on the matter at its discretion. If an impact fee study reflects that a reduced impact fee is warranted and the Departments concur with the conclusions of the study, the impact fee shall be reduced.

(Ord. No. 97-172, § 3(ch. 13, § 14.250), 12-31-1997)

A.

Fees collected pursuant to this Article shall be deposited into separate interest bearing trust funds for each impact fee type.

B.

Except as provided below, impact fees collected from new development north of the C&D Canal shall only be used for services and facilities located or provided north of the canal. Impact fees collected from new development south of the C&D Canal shall only be used for services and facilities located and provided south of the C&D Canal. Within each area, the impact fees shall only be used to adequately benefit the development which is the source of the fee.

C.

Impact fees collected within a specific fire and rescue district shall only be used to adequately benefit the development which is the source of the fee regardless of whether the fee was collected north or south of the C&D Canal. Because County facilities benefit new development on a Countywide basis, County facility impact fees can be used anywhere in the County regardless of whether the fee was collected north or south of the C&D Canal.

D.

If any fees collected during any fiscal year are not expended or encumbered by contract within the ten (10) fiscal years immediately following the fiscal year of payment for sewer, library, county facilities, fire and rescue and parks and special facilities impact fees or five (5) years for all other impact fees, the General Manager of the Department shall mail a notice to all then current land owners. The notice shall advise that the owner of the address (for which an impact fee had been paid) is entitled to a refund thereof. Any person so entitled shall have six (6) months from the date of the notice within which to apply to the Department of Finance for a refund of the fees paid.

E.

All refunds made will be for the full amount paid, together with interest received by the County from the date of payment of the impact fee to the date of refund.

F.

If no timely application for refund is made, all funds shall be retained in the trust fund hereby created and used only to pay for future capital improvements.

G.

Disclosure requirements for recipients of fire impact fees: Supplementation, Not Supplantation. Fire and rescue impact fees shall be distributed contingent upon the recipient fire company filing an annual financial statement on a form provided by the County in accordance with procedures established by the County. At a minimum, financial data shall be provided to the extent necessary for the County to determine that impact fees were utilized to supplement, not supplant, existing funding. The names of the individual or company donors need not be identified.

(Ord. No. 97-172, § 3(ch. 13, § 14.260), 12-31-1997; Ord. No. 98-130, § 6, 1-12-1999; Ord. No. 01-112, § 1(Exh. A), 3-12-2002; Ord. No. 10-113, § 1(Exh. A), 1-18-2011)

Cross reference— Administration, ch. 2.