By Glenn Rolfe

Indian River School District board opts for no tax increase

DAGSBORO — While noting there is an obvious need for more funding in challenging financial times, the Indian River School District Board of Education decided not to place additional burden on taxpayers.

With the district contemplating a current expense referendum last held in 2017, the board Monday night chose to continue collections of current expense, debt service, tuition and minor cap while passing on six other match taxes, which would have added $3.4 million for fiscal year 2025.

By a 9-0-1 vote – outgoing board member Dr. Donald Hattier abstained - the board opted to keep the tax rate at 3.2340%, the lowest of all school districts in Sussex County. It will generate $64.1 million, according to tax rate projections provided by district director of business Tammy Smith.

Dr. Hattier, the one board member who spoke about the rate, says now is not the time to increase taxes.

“Do we need the money? Yes, we do. But it could come back to haunt us during the referendum,” said Dr. Hattier. “So, for me, this is not the clearest-cut call in the world. I know we need the money, but I know we need to pass the referendum first.”

The board chose the first of four options, which basically retains the taxes historically collected by the district.

The proposed FY 2025 tax rates would have included current expense, debt service, tuition and minor cap, along with technology, extra time, reading resource, math resource, reading interventionists and opportunity grant.

The new taxes were offered to alleviate burden from current expense collections. The four traditional taxes and six new ones would have resulted in an increase of $42.22 to the average taxpayer.

Ms. Smith pointed out that the district has been supporting technology with federal funds that are going to expire.

“So, having that additional revenue to pay for that technology would be helpful,” Ms. Smith said. “But I also recognize that as we are headed toward a current expense referendum, and the impact of the Sussex County reassessment that will happen next year, which we do not have any preliminary numbers on yet, obviously will impact your decision on what you are comfortable with collecting.”

The technology and extra time match taxes would cover monies previously used. reading resource, math resource and reading interventionists would cover l salary portions at various grade levels, while OPPORTUNITY GRANT would cover the salary of approximately 50 mental health units.

The timing is not good for an increase, Dr. Hattier emphasized.

“The public right now is already saying we are automatically going to raise the taxes that the law would allow us to raise it. If we pass something now to raise the taxes, it would simply beat it to death,” said Dr. Hattier.

“The 10% Dr. Hattier is referring to is by law when there is a reassessment the board can vote to collect up to 10% more in revenues than the prior year,” said Ms. Smith.

At 3.2340, Indian River’s rate is the lowest in the county, followed by Cape Henlopen at 4.0282, Delmar (4.0764), Seaford (4.1015), Milford (4.6638), Woodbridge (4.9030) and Laurel, the highest at 4.9120.

Staff writer Glenn Rolfe can be reached at grolfe@iniusa.org. Follow @glennrolfeBTBN on X.