REHOBOTH BEACH, DE - Rehoboth Beach has adopted a $44 million budget for fiscal year 2026, with officials announcing no increases in taxes, rates, or fees.
Rehoboth Beach Commissioners adopted the upcoming year’s budget on March 21. At $43,993,060, the budget is larger than 2025’s budget by $5.4 million according to officials.
A Rehoboth Beach spokesperson says nearly $11.4 million of the FY26 budget will be allocated to capital improvements within the city, and officials expect a $222,735 surplus in revenues over expenses.
The budget allows for a 3% cost-of-living increase as well as an extension of employees’ health care from 90% to 100%. $15 million will be dedicated to enterprise water and wastewater funds, according to officials.
“The City of Rehoboth Beach’s overall strong financial position is reflected in our fiscal year 2026 budget,” City Manager Taylour Tedder said. “The newly adopted budget provides for several critical capital improvements and modest salary and benefit increases for our employees, all with a small, anticipated surplus. This year, we began to expand our budget projections and look further into the future as we plan for the city’s needs today.”
The budget also allows for the following contributions to Rehoboth Beach organizations:
-$250,000 for the Rehoboth Beach Volunteer Fire Company
-$75,000 for the Rehoboth Beach Public Library
-$60,000 for Rehoboth Beach Main Street
-$50,000 for the Rehoboth Beach Historical Society and Museum.
Among the capital improvement projects included in the budget are the following:
-$4.7 million to finish phase 3B and begin phase 4 of improvements to the
wastewater treatment plant facility
-Nearly $2.5 million for completion of the Baltimore Avenue restroom/beach patrol facility
-$585,000 for the annual city paving project, this year on Christian and Munson
Streets
-$105,000 for LED retrofit of lights on Rehoboth Avenue
-$100,000 for sidewalk improvements
-$80,000 for a shed to store police equipment
The new budget takes effect on April 1, the beginning of fiscal year 2026.