Lewes approves FY 2025 budget

March 29, 2024 5

Lewes Mayor and City Council unanimously approved a $12.3 million balanced budget for fiscal year 2025 at its March 25 special meeting.

The amount is a 2% increase over the current FY 2024 spending plan. A new budget was required to be in place by Monday, April 1.

The budget includes a 1% increase in the gross rental receipts tax on short-term rentals, from 5% to 6%. The increase will generate $90,000 in annual revenue, Acting City Manager Ellen Lorraine McCabe said.

Council appropriated money to fulfill requests from some local nonprofits.

They pledged $250,000 to the Open Space Alliance for the acquisition and maintenance of the 29-acre Fourth Street Preserve. McCabe said that money will come from the FY 2026 budget, since it will not be paid until the property is purchased.

The alliance is now a year into its campaign to raise $8.3 million to buy and save the preserve from development. Alliance Chair Jim Ford had asked council for $500,000.

The alliance is trying to raise $2 million to receive a matching $1 million grant from the Longwood Foundation. Council said it would revisit the alliance request for an additional $250,000 in next year’s budget cycle.

The 2025 budget does not address the Lewes Fire Department’s request for a $600,000 annual contribution. The amount is based on the the department’s figures that show 16% of its annual responses are within the city.

Rather than include money in the budget, council decided to have its finance committee look for a long-term solution for fire department funding.

“We’re looking for creative, sustainable revenue sources for the future,” said Deputy Mayor Khalil Saliba.

The city gave the fire department a $75,000 contribution in February. The department is an independently funded organization not connected to the city.

The FY 2025 budget includes a $5,000 contribution to the Lewes Public Library toward maintenance of its new outdoor pavilion. Groundbreaking for the pavilion is scheduled for May. It is scheduled to open in the fall. Library Director Jill DiPaolo had asked for $50,000.

Council said it will consider appropriating more money in next year’s budget, once the pavilion is built and the library has a better idea of its maintenance costs.

The new budget also includes a $3,000 increase to Lewes in Bloom to cover the growing cost of plants and flowers.

“We need to set up future councils with funding sources so they have these funds available to them,” said Mayor Andrew Williams. “These [organizations] are looking out for the community too. We need to make this an easier process.”

Councilman Tim Ritzert said he will work on creating an application to streamline requests, rather than council only relying on presentations from outside groups. Ritzert said the process will be in place by the fourth quarter of this year.

Council deferred a decision on a $260,000 budget request from the city maintenance department for a new trash truck to replace an older model.