REHOBOTH BEACH, Del. - Parking revenue in Rehoboth Beach dropped significantly during fiscal year 2026, falling nearly $1 million short of the city’s projected budget. Officials say the shortfall is largely tied to heavy rainfall in June and general uncertainty in the Washington, D.C. area.
The city says parking revenue came in at $10.1 million, down from $10.6 million in fiscal year 2025, a $510,800 decrease, or 5 percent. The biggest loss came from metered credit card payments, which were down by $480,000. City leaders believe the early season weather was a key factor.
In addition to that drop, parking fines brought in $571,000, down $79,800, or 12 percent, from last year. Parking permits generated $1.27 million, a 3.4 percent decrease from the prior year.
Overall, the city was down $998,142 compared to the fiscal year 2026 budget and $647,218 compared to fiscal year 2025.
Despite these revenue declines, the city says it anticipates a break-even year. Officials say they expect general fund revenue to remain flat compared to fiscal year 2025 and that the current fiscal year 2026 budget will still meet expenses.
The city is already planning for the future. It will spend $21,150 on new software and implementation costs for the 2027 parking permit season. City staff noted that while the bulk of parking fine revenue (meters and permits) has been collected, some will continue to “trickle in” throughout the remainder of the fiscal year.
This year, the hourly rate remained at $4, following an increase in 2024 from $3. Officials considered extending the season to run from May 1 through Oct. 31, but ultimately decided to keep it at May 15 to Sept. 15.