REHOBOTH BEACH, DE - Rehoboth Beach homeowners are bracing for higher property taxes as city commissioners voted on an anticipated increase to address a looming budget deficit.
The city has been grappling with a budget shortfall in its proposed $37 million budget for 2025. To bridge this gap, commissioners have already raised parking fees and rental fees. Now, they have moved forward with a property tax increase of 29%.
The current rate of 6 cents per $100 of assessed value will rise to 7.75 cents per $100. This decision was part of a series of measures voted on today to balance the budget, including:
Committing to an anticipated 29% property tax increase, from $0.06/$100 of assessed value to $0.0775/$100, with a formal vote on the property tax rate expected at the commissioners' June regular meeting.
A 28% increase in wastewater meter fees, from $14.70/1,000 gallons to $18.81/1,000 gallons, aimed at funding ongoing improvements at the city’s wastewater treatment facility.
Anticipated increases in mercantile license fees, projected to generate an additional $138,000 in revenue.
Prior to this decision, the city had already implemented other rate increases, such as:
Hourly meter parking fees during the season increased from $3 to $4 per hour.
Parking permit fees saw an approximately 30% increase.
The rental tax rate, for contracts entered into after April 1, rose from 6% to 7%.
Mayor Stan Mills acknowledged the challenges of this budget year, saying in a press release,
“This has been an extremely challenging budget year, we’ve had to make some really tough decisions. The increases adopted impact a range of city stakeholders, including our residents, businesses, and our visitors. These increases are necessary to ensure that we have a highly functioning, appropriately resourced government that provides the outstanding level of service our residents and visitors have come to expect. The adopted budget appropriately invests significantly in our staff and in needed capital improvements," said Mayor Mills.
The 10 million dollar capitol improvement budget includes funds for the construction of a new beach patrol headquarters and comfort station at Baltimore Avenue.
Also in the budget is funding for the completion of phase 3B of critical upgrades at the wastewater treatment plant.
In coordination with a Delaware Department of Transportation (DelDOT) project, the budget includes the resurfacing of the first two blocks of Rehoboth Avenue.
Another significant project outlined in the budget is the annual citywide paving project, focusing on Maryland Avenue and 1st Street in the upcoming fiscal year.
Additionally, the budget allocates funds for a water main replacement project on Maryland Avenue.
The budget also includes salary increases and a 27% rise in health insurance costs. Several new staff positions are included in the adopted budget to enhance city services and operations.
The reorganization of the police department will result in the creation of a new deputy chief position and the hiring of two new entry-level patrol officers.
Furthermore, the 911 communications center will see an additional dispatcher position, and two part-time positions have also been added: a deputy city clerk and a communications specialist.
However, not all residents are pleased with the news of rising taxes. Some voiced concerns about the potential impact on locals and the increasing cost of living. Paul Dende, a property owner in town, expressed worry about the difficulty for younger or lower-income individuals to move into the area,
“I’m worried for the future with the inability of young people to move in, or people who aren't in a higher income bracket. Were I to move here now, it would be a challenge, we wouldn’t be able to do it," said Dende.
On the other hand, Kora Harrison noted that many older properties that haven’t been reassessed aren’t paying their fair share.
"They need to be stepping up and paying their taxes a little bit to help the rest of us out, because we’re assessed higher," Harrison said.