The City of Lewes has officially approved its budget for fiscal year 2026, and it brings several notable changes — most importantly, there will be no property tax increase, despite earlier proposals.
Instead, the focus is on creating a new resiliency fund to improve disaster preparedness and strengthen the city’s response to climate-related challenges.
Key Features of the FY 2026 Budget
Lewes’ fiscal year 2026 budget highlights several key elements:
- No Property Tax Hike: After initial discussions about increasing property taxes by as much as 20%, the City Council unanimously agreed on a budget without any tax increases. This also means no increase in bonfire fees, which were originally set to double.
- New Resiliency Fund: One of the budget’s main priorities is the creation of a resiliency fund, designed to enhance flood mitigation efforts, improve climate resilience, and ensure the city’s preparedness for natural disasters. This fund will start with $1.4 million and is expected to grow by $500,000 to $600,000 annually.
Confusion Over Resiliency Fund Amounts
There was some confusion about the exact amount allocated to the resiliency fund.
While City Manager Ellen Lorraine McCabe’s final budget document outlines a total of $1.4 million, Deputy Mayor Khalil Saliba and Councilman Joe Elder were under the impression the amount was to be $1.1 million.
Despite this, Saliba expressed support for the fund, though he suggested starting with a lower amount to address more immediate needs first.
Identifying Initial Resiliency Projects
The city has already identified two major projects to kickstart the usage of the resiliency fund:
- Fourth Street Preserve Campaign: A $250,000 contribution to help protect open spaces and address environmental concerns.
- Cedar Street Flood Gate: A flood gate project, with funding slated for the FY 2027 budget, to help mitigate flood risks in this area.
To ensure that the resiliency fund is used effectively, withdrawals will require approval from four out of five council members, adding a layer of accountability to the process.
Budget Highlights: Capital Investments and Community Support
Other significant aspects of the budget include:
- Capital Infrastructure Projects: $1.705 million earmarked for infrastructure improvements across the city.
- Support for Local Nonprofits: $389,270 allocated for contributions to city-based nonprofits.
- Increased Police Budget: The Lewes Police Department will receive a 32% budget increase to fund additional personnel, including a new officer.
Looking Ahead: A Roadmap for Future Growth
For the first time, the city’s budget has been created using a multiyear financial model, helping to plan for the long-term financial stability of Lewes.
This approach allows for better preparation for future challenges and growth.
Looking to the Future
While the FY 2026 budget avoids property tax hikes, the city plans to consider future increases in parking meter revenue and possibly raise the salaries of mayor and council members in FY 2027.
What are your thoughts on Lewes’ budget decisions for FY 2026? Let us know in the comments below, and keep following the blog for updates on upcoming city projects!
Source: Cape Gazette