LEWES, Del. - The Cape Henlopen School District is holding a referendum March 26 to propose a new tax rate in order to generate local revenue. The revenue will help the district address expenditures due to increasing enrollment.
Cape Henlopen's enrollment has grown from 4,150 students in 2001 to 6,587 students this past September, according to the district. In January 2020, the district population was 5,861. The district says population studies predict enrollment will continue to increase significantly over the next 10 years.
According to the district, the new proposed increase is around 55 cents per $100 of assessed property value. This is broken down into a debt service increase of about 21 cents per $100 over three years and 34 cents for the current expense increase, which would begin July 1.
For example, CoastTV randomly selected a 2,500 square-foot, single-family home off of Route 9 with three bedrooms, three bathrooms and a Lewes address. It is valued at $475,000 on Zillow, however it has an assessed value of $52,600 according to Sussex County property records. This property would have a monthly tax increase of $24.11 and an annual tax increase of $289.30 if this referendum is passed.
According to the Cape Henlopen School District, the average assessed value of a home in the district is less than this, sitting at $28,006. This means the average homeowner's monthly increase would be $12.84.
This rate increase is based on assessed property value, not market value. Cape Henlopen has an online calculator to help residents determine the added cost for their households.
Courtesy Cape Henlopen School District.
Enrollment has been an ongoing topic of concern for the district, and it even started a tip line this school year to report people who live out of district but send their children to Cape schools using secondary or false addresses. According to the Delaware Department of Education, the district is at 92 percent capacity for the 2024-2025 school year based on projected enrollment. Cape Henlopen High School and Mariner Middle School are over capacity at 105 and 104 percent, respectively.
Earlier this month, district leadership expressed disappointment when the Sussex County Council chose to halt conversations regarding a tax on new developments that could potentially contribute to school capacity issues.
"[The Voluntary School Assessment fee] would allow us and other districts to use funds collected from the assessment to offset ongoing district construction costs due to growth and infrastructure concerns," Cape Henlopen Superintendent Bob Fulton said on Feb. 2. "I see this as a missed opportunity for our very supportive Cape community."
Voting for the upcoming referendum is scheduled for March 26 from 7 a.m. to 8 p.m. at Cape Henlopen High School, Mariner Middle School and Rehoboth Elementary School. To be eligible, voters must be residents of the district, U.S. citizens and 18 years old.
This article was updated on April 15 to reflect corrections relating to the reference of market value versus assessed value in the fourth and fifth paragraphs. An updated referendum will be held May 21.