Indian River holds first operational referendum in 8 years March 20, $289 avg. tax increase

The Indian River School District will have a referendum Thursday, March 20, five days after Smyrna has theirs.

Those are the only two districts having a referendum this year, compared to last year when six of the 19 school districts had one, which was the highest in 14 years.

READ: Why Delaware is having the most school referendums in 14 years

Like Smyrna’s, Indian River’s referendum is an operational one.

A referendum is a request of taxpayers to support school districts in operations and capital projects through a ballot initiative — when a referendum passes, local school taxes are increased.

Operational referenda are focused on raising taxes and in turn increasing district revenue for aspects like educator salaries, educational programming, new curriculum, increased energy costs, and other additions to the day-to-day operations of the district.

READ: Smyrna to hold operational referendum March 15, $277 avg. tax increase

A capital referendum, on the other hand, increases taxes and district revenue to help pay for capital projects like new buildings, parking lots, HVAC systems, and other projects. They typically include the state ponying up money to pay for a chunk of the district’s projects, too.

“During the last three fiscal years, our operating expenses have increased an average of 7.4 percent per year,” said Jay Owens, Indian River superintendent. “During that same time period, revenue has increased by only 3.55 percent per year.”

That trend is not sustainable and the district has been in a position of deficit spending for the past two fiscal years, he said.

“Passage of this referendum is imperative if we are to continue the premier educational services currently being provided to our students,” he said.

Taxes for Indian River residents

If passed, the average district taxpayer will have their tax bill increase by $1.2105 per $100 of assessed property value, which correlates to an increase of $24.10 per month or $289.23 per year for the average district taxpayer.

Once tax rates are adjusted downward to account for Sussex County residents’ reassessed property values, the district expects the tax increase to be just $0.057 per $100 of assessed value.

Indian River has a nearly 100 percent fill rate on its instructional openings  in the midst of a national teacher shortage, which it states is the direct result of a positive and supportive working environment and a competitive compensation package.

A primary goal of the referendum is to allow the district to continue offering a strong salary package that will attract talented educational professionals and maintain the quality educational services provided to students.

2017 was the last time Indian River increased taxes for operating expenses, and the district has the lowest school tax rate in Sussex County.

“During the past eight years, we have exercised responsible spending and utilized federal ESSER funds received as a result of the COVID pandemic,” Owens said. “School districts build local reserve balances in the first few years following a current expense referendum. However, those reserves are eventually spent down as expenses increase and in fiscal year 2023, IRSD began operating at a budget deficit.”

While proud of the eight years without an operational referendum, the district states it’s reached the point where it can’t sustain a premiere level of instructional services with its current budget.

Polls will be open from 7 a.m. to 8 p.m. on referendum day. For voter eligibility details and polling locations, click here.