Why Matt Meyer Vetoed The Impact Fees Increases, And How Councilmembers Feel About It
GUEST POST BY VAL GOULD:
On December 10th, New Castle County Council passed Substitute 1 for Ordinance 24-008, which calls for an update to the county’s impact fees for the first time since 1999. On December 26th, outgoing County Executive Matt Meyer vetoed the bill, drawing criticism from some council members. Impact fees are charged to developers and help the county pay for services such as fire, police, EMS, parks, and libraries.
Concerns over the higher fees stem from the typical practice of developers passing any increased costs on to home-buyers, increasing the cost of homes. For this reason, the newly proposed ordinance exempts affordable housing, moderately priced dwelling units (MPDUs), and non-profit housing from the fees, exemptions the County Code does not currently include.
The ordinance’s prime sponsor, Councilwoman Dee Durham (District 2), brought the bill forward for numerous reasons, including lagging emergency services near new construction in the southern part of the county and undue financial burdens on existing Delaware residents. According to Durham, existing New Castle County residents are currently paying to cover gaps in those services through their taxes as new developments continue to explode below the C & D Canal. “People coming from out of state are demanding services because they’re used to paying more taxes and having more services,” said Durham. “Right now, existing residents are paying for those gaps in service with their taxes.”
“The proposed ordinance is enabling legislation,” said Durham. “It sets the stage for the new [County Executive] administration to come back to Council by July 1st with a proposal to phase in cost-of-living adjustments to the impact fees, which are 25 years overdue and required bylaw.”
Councilman Kevin Caneco (District 12) echoed Durham’s sentiments, stating that the county “is facing a budget crisis and loss of COVID money,” the latter of which has helped provide effective and reliable services over the past several years.
After issuing his veto, Matt Meyer issued a statement regarding his decision. “Now is not the time to increase the cost of housing in New Castle County,” stated Meyer “The county is facing an unprecedented housing crisis, not only for the most vulnerable around us, but also for many working families across our community.”
Councilman Jea Street (District 10) agrees with Meyer and voted against the measure. “We have a housing crisis, and raising impact fees places an undue burden on homeowners,” stated Street.
However, with most new construction in the county going for over $400,000, Caneco argues that these homes are not affordable for the working class, and that any increased impact fees on these properties would be
“negligible considering the potential mortgage size and term length.”
“Affordability is a red herring,” said Durham. “Affordable housing and MPDUs are exempted from the fees.”
Another concern some councilmembers had was that, with Meyer on his way to the governorship, the ordinance should wait until the new County Executive , Marcus Henry, takes office later in January. “It isn’t fair to burden the incoming County Executive with a decision made this late in the prior administration,” said Councilman Penrose Hollins (District 4), who also voted against the ordinance
Councilman Brandon Toole (District 1) voted in favor of the bill and believes that, while council may not have given the incoming Executive a chance to weigh in, “neither did Matt Meyer.” (Editor’s Note: I LIKE this guy.)
“Someone purchasing a newly constructed home in New Castle County should understand that funding infrastructure to support their new community is expected. If they don’t want to pay impact fees, they should consider purchasing from our existing housing stock,” added Toole.
Councilwoman Durham stated she spoke with Marcus Henry and believes he supports the ordinance . Additionally, she said, County Code requires the council to regularly update the impact fees. “Those who voted against it are ignoring what our current code demands” she said.
Durham stated that she intends to present the legislation for a veto override vote at the council’s next meeting on January 14th . If the override attempt isn’t successful, she intends to bring it forward again the following week, once incoming County Executive Marcus Henry takes office.
So. I have a process question. The new County Council has already been sworn in. That Council, in fact, passed the ordinance that Meyer vetoed.
If the override attempt fails, why can’t Council immediately pass an ordinance that is virtually identical, and request the Clerk Of Council to simply delay delivery of the ordinance until Marcus Henry is sworn in?
And/or, why can’t Marcus Henry encourage councilmembers who initially voted against the ordinance to support the veto override?
Anything to stop the cycle of delaydelaydelay…
Marcus could indeed support the veto overrides.
Veto overrides, though, must by Rules happen within 30 days from the date of the veto. So there is not enough time to hold the votes ’til the next Council meeting after Marcus is sworn in.
So, if one or both of the veto overrides fail, the ordinances will be immediately reintroduced.
But, if the veto overrides fail, can the new ordinances be immediately voted on, and held until Marcus takes office?
Why doesn’t Delaware adopt some procedures that other states adopt –
1) out of state ex pass pay more at de ez pass than instate drivers do
2) new residents moving into the state from out of state pay additional taxes for the first 5 years of residency to help cover new resident infrastructure costs
What states have tax schemes found in your second suggestion? I struggle to see the constitutional justification for such discrimination–especially in the situation where a new resident moves into a state and buys a home in an older, established neighborhood–how is that new resident more of a burden on infrastructure costs than the resident that sold and left?
Incredibly on-brand for a Highlands Hippie
Forget the constitutional angle. Let’s use logic instead.
If it’s new construction causing the problem, then why penalize the new residents instead of the new construction?
So if someone moves from out of state into an existing house, you gratuiously want to welcome them with “additional taxes” for 5 years? Many of us are beyond the kids-in-school stage, which is the biggest expense on our tax bill. Can’t say I think you’ve thought this through.
We don’t want you here. That’s the idea. We don’t want to incentivize people who came here to die. Sorry to be brutally honest but we want people who are here to grow and contribute and want to contribute to the community. Not people who think this is a low cost and low tax state. That’s how we also die.
I appreciate your honesty, bigoted though it is. I’ve heard it from other Delawareans of generational long standing as well . Are you working on having us deported to our “home” states when ICE comes calling? As far as coming to Delaware to die, unless your complaint is that we are filling up military cemeteries, I don’t see that our dying is an inconvenience to you.
Yes with your attitude and condescending feeling toward natives you are not welcome
Military cemeteries? Oh. Am I supposed to genuflect because you’re an alleged veteran? For such a hero you seem to be a sensitive flower.
Regardless, if you want to live here – pay the taxes! And pay more of them so our kids you can go to school. If you want to be a part of this community then you need to contribute to society. Sorry! I know your stick house in Smyrna is so idyllic but I’m sure you can find a shitty red state somewhere that would love to have a brave soldier with delicate pearls.
You’ve done a great job of introducing yourself and letting us know who and what you are.
Which is not a compliment. Enjoy your brief stay here…
@Phil: If I’m reading you correctly, you want to increase taxes to make Delaware less desirable to the New York/New Jersey retirees. But you don’t want to increase your own, I take it.
Can’t have it both ways.
These ordinances would not apply if someone moves into an existing home. We’re talking about new construction, and new construction not designed to provide affordable housing.
Reasonable questions but unrelated to the County.
What a weak move by Matt on his way out.
And handing Marcus a crap show on the way out….
Check this out. A bit of hypocrisy perhaps?
A recommendation regarding school funding from page 5 of the Meyer For Governor education plan:
“Increase school impact fees for new development. The state charges fees on new residential developments that enable the local school district to accommodate the resulting increased student population. Because such fees are insufficient, districts in our state with rapid population growth more frequently hold referenda. Existing residents in Appoquinimink and Cape Henlopen districts subsidize the developers additional burden on local schools. The impact fee calculation for new develooments must be recalculated to more accurately capture the true cost of additional population in our communities, with respect to schools AND ALL OTHER INFRASTRUCTURE AS WELL.” (Emphasis mine.)
Last time I checked the people who vote for school boards also elect the county representatives who rubber-stamp development. Meaning they voted for this.
As Mencken observed, “Democracy is a pathetic belief in the collective wisdom of individual ignorance.”
Hope to see you in office soon, Val.
Have the state legislature raise the county transfer tax 1% for new construction, exempt low income buyers, first time homebuyers and people selling a Delaware primary residence to move to a nursing home, and earmark the money for infrastructure.