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Town of Dagsboro, DE
Sussex County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Council of the Town of Dagsboro 10-25-2004 by Ord. No. 75. Amendments noted where applicable.]
This chapter shall apply not only to all properties located within the municipal limits of the Town but also as a condition precedent to all properties located outside the Town's limits seeking connection to any of the Town's public utilities.
All property owners shall pay impact fees in such amounts and at such times as provided herein. Such impact fees shall represent that property owner's proportionate share of the Town's reasonably anticipated capital costs of supplying municipal and/or public services to the owner's property, either by using up existing capacity (such impact fees thus being collected to replace that used-up capacity in the future) or by presently expanding existing capacity in order to provide such services to the owner's property. For purposes hereof, "municipal and/or public services" includes but is not limited to all capital expenditures and improvements by the Town (other than those directly recovered from the property owner as reimbursement for extension of Town facilities, front foot assessments, installation charges, connection fees or the like) reasonably necessary or appropriate to provide water, sanitary sewer, storm sewer and drainage, street lighting and signage, traffic control devices, streets, curbs, sidewalks, gutters, and police, fire, code enforcement, and emergency protection and services to the residents and properties of the Town or served by the Town's water treatment and distribution system.
A. 
Any improvement which extends a building or structure beyond its existing "footprint" or which results in a net increase in the total floor area of an existing building by the addition of floors, porches, or decks; or the replacement of any building or structure which is not substantially the same size, scale, footprint, appearance, and configuration as the previously existing building or structure. The impact of any such improvements and/or replacements shall subject the complete project to the impact fees provided for under this chapter.
B. 
Any improvement and/or replacement which causes a significant increase in municipal and/or public services by either using up existing capacity or by causing the need to expand existing capacity, as reasonably determined by the Town Council and supported by analysis. Municipal and/or public services includes, but is not limited to, water, storm sewer and drainage, street lighting and signage, traffic control devices, streets, curbs, sidewalks, gutters, and police, fire, code enforcement, and emergency protection and services to the resident and properties of the Town or served by the Town's water treatment and distribution system. The additional impact upon the municipal and/or public services only shall be subject to the impact fees provided for under this chapter.
A. 
Properties located within the Town. Payment of impact fees shall be a condition precedent to obtaining a building permit. Where adequate utilities to serve the properties in a subdivision are already in place, the Town Council may, in the exercise of its reasonable discretion, allow impact fees to be paid any time prior to the issuance of a building permit; however, when adequate utilities are not in place to serve properties within a subdivision or land development project, impact fees shall be due and payable as a condition of final subdivision or land development approval.
B. 
Properties located outside the Town. Payment of impact fees shall be a condition precedent to the connection of any property located outside the Town to the Town's water treatment and distribution system.
C. 
The time for payment of impact fees stated in Chapter 130, § 130-5A and E, is hereby extended until the time of issuance of certificates of occupancy. The time allowance provided in this Subsection C shall automatically expire at 12:00 p.m. on December 31, 2009, unless a later date is determined by the majority vote of the Town Council at a regularly scheduled Town Council meeting.
[Added 6-22-2009]
[Amended 3-20-2006; 7-24-2006]
A. 
Water.
(1) 
Definitions. As used in this section, the following words shall have the meanings indicated:
ANNUAL PRODUCTION DAYS
The number of days per year a structure is open for business as documented by verifiable records.
EQUIVALENT DWELLING UNIT (EDU)
A term used to express the load produced on a water system, approximately equal to one dwelling place or 300 gallons per day.
WATER FLOW
Shall be determined by water consumption in accordance with water meter readings.
(2) 
Amount of impact fee: $3,000 per approved EDU.
(3) 
Assessment of impact fee.
(a) 
Impact fees shall be assessed as outlined below:
Type of Structure
Assessment
(EDUs)
(1)
Any single-family residential dwelling with one kitchen and one or more baths
1.0
(2)
Any multifamily residential dwelling with one kitchen and one or more baths (per unit)
1.0
(3)
Any commercial, institutional or industrial structure. Any nonresidential use other than (A) or (B)
Based on water consumption 1.0
(b) 
The number of EDUs for structures under category (3) above shall be estimated by the Town Engineer in accordance with published flow data. After one year of operation, said structures shall be evaluated and the number of EDUs recalculated based on the following formula:
Water flow per year in gallons: (production days x 300 gal/day/EDU)
(c) 
Results will be rounded up to full number.
(d) 
The impact fee adjustment shall be billed or refunded at the time of the next regularly scheduled billing.
(e) 
Impact fees shall be imposed for projects meeting the requirements of § 130-3B of this chapter.
(f) 
Impact fees shall be waived for any property connecting to the Town's water system within the first 365 days of the date determined to be the completion date of the system in 2005.
B. 
Money in lieu of parkland. Where a cash contribution in lieu of land dedication is required by the Town pursuant to the Town's subdivision/land development regulations, an amount to be established per "approved dwelling unit."
C. 
Fire protection. An impact fee of 0.25% of the construction value of the building permit of new residential dwellings (including single-family homes, townhouses, apartment units and mobile homes), calculated upon the fixed rate of $85 per square foot of construction cost in accordance with § 75-9, shall be assessed at the time the building permit is issued; provided that the impact fee for any single building permit shall not exceed $2,500. An impact fee of 0.25% of the construction value of the building permit of new nonresidential structures of all types (including tenant fit-outs of existing structures), calculated upon the fixed rate of $85 per square foot of construction cost in accordance with § 75-9, shall be assessed at the time the building permit is issued, provided that the impact fee for any single building permit shall not exceed $5,000. The proceeds of the impact fee shall be transferred by the Town to the Dagsboro Volunteer Fire Department, Inc. at the end of each quarter of each year to be used for capital equipment and facilities to enhance fire-protection services to the residents and properties of the Town. In order to be qualified to receive such impact fee, the Dagsboro Volunteer Fire Department, Inc. shall submit an annual audited report, prepared by a certified public accountant, of its use of these impact fees, no later than May 1 following the close of its fiscal year. If such report is not provided in a timely manner and/or if such report reflects a failure to account for the impact fees, the Town Council may withhold fees collected, without interest, until a satisfactory report has been accepted. At any time, in the Town Council's sole discretion, the Town Council may amend this chapter to eliminate, change or otherwise modify the provisions contained herein.
[Amended 4-23-2007]
D. 
Ambulance services. An impact fee of 0.25% of the construction value of the building permit of new residential dwellings (including single-family homes, townhouses, apartment units and mobile homes), calculated upon the fixed rate of $85 per square foot of construction cost in accordance with § 75-9, shall be assessed at the time the building permit is issued; provided that the impact fee for any single building permit shall not exceed $2,500. An impact fee of 0.25% of the construction value of the building permit of new nonresidential structures of all types (including tenant fit-outs of existing structures), calculated upon the fixed rate of $85 per square foot of construction cost in accordance with § 75-9, shall be assessed at the time the building permit is issued, provided that the impact fee for any single building permit shall not exceed $5,000. The proceeds of the impact fee shall be transferred by the Town to the Dagsboro Volunteer Fire Department, Inc at the end of each quarter of each year to be used for capital equipment and facilities to enhance fire-protection services to the residents and properties of the Town. In order to be qualified to receive such impact fee, the Dagsboro Volunteer Fire Department, Inc. shall submit an annual audited report, prepared by a certified public accountant, of its use of these impact fees, no later than May 1 following the close of its fiscal year. ff such report is not provided in a timely manner and/or if such report reflects a failure to account for the impact fees, the Town Council may withhold fees collected, without interest, until a satisfactory report has been accepted. At any time, in the Town Council's sole discretion, the Town Council may amend this chapter to eliminate, change or otherwise modify the provisions contained herein.
[Amended 4-23-2007]
E. 
Capital improvement impact fee for capital improvements for governmental, police, administrative and code enforcement improvements. An impact fee of $2,500 for each new residential dwelling unit (including single-family homes, townhouse units, apartment units, condominium units and mobile homes, if permitted) shall be assessed at the time of the issuance of the building permit for said structure, and an impact fee of $2,500 per equivalent dwelling unit for any commercial, industrial or business office structure shall be assessed at the time the building permit for said structure is issued. "Equivalent dwelling unit" is defined pursuant to § 130-5A(1). The proceeds of the impact fee shall be allocated in accordance with § 130-9. All residential units and/or commercial, business or industrial structures which have been issued a building permit prior to the date of enactment of this subsection shall be exempt from the impact fee imposed by this subsection.
[Amended 1-24-2022]
F. 
Exemptions. Building permits for decks, sheds, residential additions, pools, fences, sidewalks, moving and demolition, signs and renovations or repairs to existing structures are exempt from this impact fee.
G. 
Annexation/deannexation impact fees
[Added 6-20-2022]
(1) 
The annexation/deannexation impact fee is designed to pay for the equitable portion of the planning, design, and initial capital improvement costs to provide municipal and/or public services to the new parcel(s) regardless of use of density. This fee is intended to offset some of the risk to the Town for utility expansion and capital improvements completed in anticipation of future growth to said properties. The annexation/deannexation impact fee, in combination with other impact fees permitted by the Town Code, is the equitable share for such annexed properties in that such amount creates a balance that distributes the financial burdens previously borne and yet to be borne by those properties in comparison with the other properties within the Town as a whole. such funds may be deposited into the Capital Replacement account and, if so deposited, may only be expended for the purpose of repair and replacement of capital assets or improvements, the making of emergency repairs, major renovations, or extensions or expansion, or any combination thereof, to capital assets as determined by the Town Council.
(2) 
Annexation/deannexation fees for all parcels zoned residential and nonresidential.
Number of Acres
Fee
4.99 or less
$1,500 and all professional fees
5.0 to 9.99
$3,000 and all professional fees
10.0 to 24.99
$4,500 and all professional fees
25.00 or more
$6,000 and all professional fees
(3) 
Annexation/deannexation impact fee is due and payable upon annexation.
Anything herein to the contrary notwithstanding, where the property involved is subject to the procedures of the Town's subdivision/land development regulations, the Town Council may, in its absolute discretion and pursuant to a written agreement signed by the developer (with appropriate security), allow any developer to make payment of some or all amounts of any impact fees assessed as herein above provided by means of “in-kind” contributions (e.g., capital improvements, land) in lieu of cash payments, provided that such in-kind contributions shall not be credited towards any other dedications required pursuant to the Town's regulations.
Subject to the following limitation for new construction, the Town reserves the right to increase the amount of the impact fee assessed for each newly constructed unit to reflect one or more intervening increases in impact fees made pursuant to § 130-8 hereafter until a certificate of occupancy has been issued for that newly constructed unit or addition; whenever a building permit has been lawfully issued for the construction of any unit, then, unless and until that building permit shall have expired, been revoked, or been superseded by the issuance of a certificate of occupancy, the amount of the impact fee for that unit shall remain fixed at the amount in effect as of the date that the building permit for that unit was issued.
Annually, beginning January 1, 2006, the amount of the impact fees set out above shall automatically be increased to reflect inflation based upon changes in the consumer price index as established by the U.S. Department of Labor for the Philadelphia-Wilmington-Atlantic City (Pennsylvania, New Jersey, Delaware, Maryland) region for the preceding 12 months; provided, however, that the Town Council may act, by resolution adopted on or before December 31 of each year, to waive the increase for the following year.
A. 
The distribution of impact fees among the different accounts shall be set by resolution of Town Council. This distribution can be changed by resolution of Town Council for newly collected fees.
B. 
All moneys received by the Town as impact fees shall be deposited in such special account or accounts as designated by the Town Council, kept segregated from other Town moneys and strictly accounted for. All impact fee moneys shall be used for the purpose for which each is collected. Impact fee revenues may also be utilized by the Town to repay such borrowings, including principal, interest and necessary costs associated with obtaining such loan funds.