Rehoboth raises parking fees, rental tax rate to help address budget deficit

The Rehoboth Beach Board of Commissioners voted reluctantly but determinedly – and unanimously – February 16 to raise the hourly parking meter rate, parking permit fees, and the rental tax rate. The increases are designed to address a $4.4 million deficit in the city’s proposed $37 million fiscal year 2025 budget, which is expected to be adopted next month.

The proposed budget, which is about $2 million more than the city’s current budget, has a strong focus on appropriate resourcing for staff, including providing raises as indicated by a classification and compensation study recently undertaken and addressing a 17% increase in health insurance costs.

“These are really tough decisions we’re having to make,” says Mayor Stan Mills. “We don’t take our fiscal responsibility nor our responsibility to our team lightly. We have to invest in our most valuable assets, our employees. And ensuring that the Nation’s Summer Capital maintains its reputation as a clean, safe, and welcoming destination requires significant capital investment as well. To not adopt these and other increases, we believe, would be to fail our team and our future.”

ed a citywide seasonal meter parking rate of $4/hour, up from $3/hour. Parking permit fees were increased approximately 30% across the board. Permit fees for the 2024 season, May 15-September 15, will be as follows:

• Seasonal, transferable – $325
• Seasonal, transferable beginning Aug. 1 – $165
• Seasonal, nontransferable – $295
• Seasonal, nontransferable beginning Aug. 1 – $150
• Weekly – $120
• Three-Day Weekend – $60
• Daily – $25
• Scooter (seasonal) – $55

Commissioners also increased the gross receipts rental tax rate from 6% to 7%, effective on all rental agreements entered into on or after April 1, 2024.

Commissioners are expected to consider increases to the property tax rate and wastewater rates at their March 15 meeting.

“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,” says Mills. “We are attempting to spread the burden of these increases among city stakeholders, so that both our visitors and our residents are vested in and investing in Rehoboth’s future.”

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Author: lcoan