Rehoboth Beach commissioners have approved a $44 million budget for the upcoming fiscal year, reflecting a 13.5% increase from the previous year.
Despite the rise in spending, the city anticipates increased revenue, allowing for no hikes in taxes or fees.
City Manager Taylour Tedder, overseeing his first budget process in Rehoboth, described the budget as balanced—not too aggressive, yet not overly cautious.
Commissioner Craig Thier noted that while it may not be perfect, it is a significant improvement.
Key Budget Highlights
- General Fund & Enterprise Funds: $28.3 million in general fund expenses and about $15 million in enterprise water and wastewater funds.
- Capital Improvements: $11.4 million allocated, including:
- $4.7 million for wastewater treatment plant completion & improvements.
- $2.5 million for Baltimore Avenue restroom/beach patrol facility completion.
- $585,000 for city paving projects on Christian and Munson streets.
- $400,000 for stabilizing the Grove Park Canal Dock.
- $350,000 for water main replacement on Munson Street.
- $257,680 for a new hook hoist container truck.
- Employee Benefits:
- 3% cost-of-living salary increase.
- Up to 3% merit-based salary increase.
- 100% healthcare coverage for employees (up from 90%), with dependents still covered at 80%.
- Community Contributions:
- $250,000 for Rehoboth Beach Volunteer Fire Company.
- $75,000 for Rehoboth Beach Public Library.
- $60,000 for Rehoboth Beach Main Street.
- $50,000 for Rehoboth Beach Historical Society and Museum.
Revenue and Future Considerations
Projected revenue increases stem from property transfer taxes, parking fees, building permits, and rental taxes. For example:
- Property transfer tax revenue is expected to rise from $1.85 million to $2.3 million.
- Rental tax revenue is projected to increase from $3.1 million to $3.6 million.
A significant concern is potential future costs for beach replenishment.
Commissioners recently discussed the issue with federal legislators, noting uncertainty regarding whether funding will continue as a 65/35 split between federal and state governments.
Budget Controversies and Surplus
Commissioner Susan Goode opposed the budget, citing reliance on increased debt and lack of significant spending reductions.
Her proposals to cut specific expenditures, such as an $80,000 office space fit-out and the salary for the vacant planning and community director position, failed due to lack of support.
The city is projecting a $6.35 million surplus for the current fiscal year, partly due to a $3 million loan for the beach patrol project and a $2.3 million surplus in the water fund.
A new element in this year’s budgeting process is a three-year outlook, which Tedder hopes to extend to five years for better financial planning.
The approved budget ensures continued investments in city infrastructure and employee benefits, while maintaining stable tax rates for residents. Stay updated on city developments by following our blog!
Source: Cape Gazette