Rehoboth Beach Increases Fees & Adopts $38.6-million FY 2025 Budget


The Rehoboth Beach Commissioners adopted a $38.6-million budget for FY 2025 on Friday. The new budget increases some fees, and focuses on staff resourcing and capital investments. In order to balance the budget, the Commissioners voted Friday in favor of committing to an anticipated 29% property tax increase – a vote on the property tax rate is expected at their June meeting. They also approved an increase in wastewater meter fees and anticipated increases in mercantile license fees. Additional rate increases including a hike in parking fees and the rental tax rate were already included in the budget.

Additional information from the City of Rehoboth Beach:

The city’s FY25 budget has a focus on infrastructure investments, with approximately $10 million appropriated for capital improvements, as well as appropriate staff resourcing, providing for raises as indicated by a compensation and classification study, increasing health insurance costs, and several new positions.

Today, in order to balance the budget, commissioners voted in favor of:

  • committing to an anticipated 29% property tax increase, from $0.06/$100 of assessed value to $0.0775/$100; a vote on the property tax rate is expected at commissioners’ June regular meeting
  • a 28% increase in wastewater meter fees from $14.70/1,000 gallons to $18.81/1,000 gallons to fund ongoing improvements at the city’s wastewater treatment facility
  • anticipated increases in mercantile license fees resulting in a projected additional $138,000 in revenue.

Previously, commissioners adopted additional rate increases, including:

  • an increase in hourly meter parking fees during the season from $3 to $4 per hour
  • an approximately 30% increase in parking permit fees
  • an increase in the rental tax rate, for contracts entered into after April 1, from 6% to 7%.

“This has been an extremely challenging budget year,” says Mayor Stan Mills. “We’ve had to make some really tough decisions.

“The increases adopted,” he adds, “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.”

The city’s $10 million capital improvement budget includes:

  • construction of the new beach patrol headquarters/comfort station at Baltimore Avenue
  • completion of phase 3B of critical upgrades at the wastewater treatment plant
  • resurfacing of the first two blocks of Rehoboth Avenue (in coordination with a DelDOT project to resurface the rest of Rehoboth Avenue)
  • annual citywide paving project (on Maryland Avenue and 1st Street in FY25) 
  • water main replacement on Maryland Avenue.

In addition to providing for salary increases and a 27% increase in health insurance costs, the adopted budget allows for several new staff positions, including a reorganization of the police department that will result in a new deputy chief position and the hiring of two new entry-level patrol officers. Another dispatcher position has been added in the 911 communications center.  In addition, two part-time positions have been added: a deputy city clerk and communications specialist.

The city’s FY25 budget also includes funds for development of a new city website and stormwater management plan, extended hours for restroom attendants in season, replacement of a street sweeper, and contributions to community organizations.