Rehoboth Beach commissioners have begun working on the budget for the fiscal year 2026, focusing on employee benefits and community support. It is the new city manager’s first time working on the city’s budget, who took over the position in mid-May of last year.
With a revenue projection of $43.9 million and expenses of $43.45 million, the budget is designed to meet the city’s needs without raising taxes or fees on taxpayers.
Key Changes in Employee Benefits
A major highlight of the new budget is the increase in healthcare coverage for city employees.
- Healthcare coverage: The city will now cover 100% of employees’ healthcare costs, marking a significant improvement from the 90% coverage approved last year.
- Merit-based salary increases: Commissioners decided to maintain merit increases rather than offer one-time bonuses, ensuring that employee performance is rewarded in a sustainable way.
Commissioner Patrick Gossett emphasized that city staff is the backbone of Rehoboth Beach, and their hard work must be appreciated and supported.
Community Partner Funding
The city has also allocated funds to support local organizations within the community. These community partners play an essential role in the city’s overall functioning.
- Rehoboth Beach Volunteer Fire Company: $250,000
- Rehoboth Beach Public Library: $75,000
- Rehoboth Beach Museum: $50,000
- Rehoboth Beach Main Street: $60,000
These contributions reflect the city’s commitment to fostering a strong community, which benefits both residents and visitors.
Budget Highlights
The 2026 budget proposal includes the following:
- Capital improvement budget: Almost $11.3 million
- Revenue and expenses: $43.9 million in revenue, with $43.45 million in expenses
- No tax or fee increases: The city will maintain current tax rates and fees, ensuring stability for residents and businesses.
The budget was set to be formally discussed at a regular commissioner meeting tomorrow, March 21st, but has recently been cancelled, and passage of the budget has been placed on the agenda for a regularly scheduled commissioner meeting.
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Source: Cape Gazette