(REHOBOTH BEACH, Del.) - Rehoboth Beach has acquired over $40 million in debt from different projects over the years. The Mayor and Commissioners are starting to discuss how much water and wastewater rates are going to increase to help pay that back and pay for deferred maintenance of the water treatment plant.
"We've got to reset our wastewater rates specifically to look towards paying off our debt service for the Ocean Outfall project," says Mayor Paul Kuhns.
The recently completed Ocean Outfall project is one of many in Rehoboth Beach contributing to roughly $45million in debt. Kuhns adds, "We also have approximately 15 to 20 million more to spend over the next 5 years or so."
Residents are about to help pay for this whether they like it or not. "It might be a bit of a surprise to people," says local, Sturges Dodge.
Mayor Kuhns says they should have seen this coming. "They've known all along since we've been talking about the Outfall project that this would be on the back of the ratepayers," he explains.
The Mayor and Commissioners are looking at a 30% increase to the water rate and a 60% increase for wastewater. "We have looked at the numbers and come up with an average user which is approximately 150 gallons a day annually. That 60% will be based upon the present rates that they pay," Kuhns states.
Dodge expresses her concern, "Whenever it hits people in the pocketbook and it has differing effects on people depending on their incomes, it's going to be kind of hard to handle."
Many residents accept these increased rates as they would help the city address deferred maintenance of the water treatment plant. "I understand that if there's a need to raise them in order to improve the services we have or pay for the usage, I can afford it," Dodge continues.
Walter Brittingham of Rehoboth Beach adds, "The rates are not what they need to be and if the rates need to go up to support the structure fine. We've created too much debt. It needs to go up fairly."
"The Mayor and Commissioners have yet to vote on the exact rate increase but they plan to further discuss at a meeting later this month. They still have to consider a proposal from the county to transfer the operations of the wastewater treatment facility to them which could result in a smaller rate increase. Either way, the goal is for the new rate to be set by April 1st.