REHOBOTH BEACH, Del.- The Rehoboth Beach Board of Commissioners adopted a nearly $44 million budget for fiscal year 2026, which begins April 1.
The $43.99 million budget is $5.4 million larger than the city’s 2025 budget but does not include increases in taxes, rates or fees, according to city officials.
The budget allocates $28.3 million for general fund expenses and about $15 million for enterprise water and wastewater funds. Approximately $11.4 million is earmarked for capital improvements, and the city anticipates a $222,735 surplus in revenues over expenses.
“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.”
City employees will receive a 3% cost-of-living increase, along with up to a 3% merit increase for eligible employees. The city will also cover 100% of employees’ health care costs, while dependents will continue to be covered at 80%.
The budget includes contributions to several community 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
Key capital improvement projects include:
$4.7 million for wastewater treatment plant upgrades
$2.5 million for the Baltimore Avenue restroom and beach patrol facility
$585,000 for paving projects on Christian and Munson streets
$400,000 for Grove Park Canal Dock stabilization
$350,000 for a water main replacement on Munson Street
$257,680 for a new hook hoist container truck
$105,000 for LED streetlight retrofits
$100,000 for sidewalk improvements
The city anticipates increased revenues from property transfer taxes, parking, building permits and rental taxes in FY26.