Dewey approves FY 2027 budget

Dewey Beach Town Council approved the Fiscal Year 2027 budget and discussed the progress of its FY 2026 budget during a Feb. 13 meeting.

The final FY 2027 budget includes $6.16 million in total projected expenditures and nearly $6.66 million in total projected revenue. This leaves a projected net gain of about $500,000.

In comparison, the FY 2026 budget projected nearly $5.8 million in total expenditures and just over $6.19 million in total revenue. 

Key changes in projected revenue from FY 2026 to FY 2027 include a 21% ($100,000) increase in transfer tax revenue as a result of increased home values; a $100,000 decrease in building permit revenue due to the projected loss from the recent change in permitting standards and FY 2026 actuals; and a $35,000 increase in parking revenue as a result of a recent extension to the town’s hourly parking fee window.

Additionally, council just approved a new rental and business license fee model, which is projected to increase revenue by nearly $125,000.

In terms of expenditures, major changes include a $75,000 reduction in lifeguard salary and wages as a result of a time clock issue that was recently resolved; a reduction in across-the-board increases for non-union and contract staff; a reduction in employee benefit costs based on updated information from the state provider; and the elimination of the $20,000 beautification contract budget line, as work like cutting and weeding will instead be done by town maintenance staff to save contracted-out costs.

There is also a $25,000 decrease in vehicle repair and maintenance costs and a $30,000 decrease in legal fees, based on the historical spending averages.

To view the FY 2027 budget, go to tinyurl.com/cxw9jha6.

FY 2026 

FY 2026, which ends Tuesday, March 31, is going well overall, said Accounting Manager Sheena Hall.

The town is expecting a net surplus of about $634,000.

Town council does not plan to pass a budget amendment for this fiscal year.

“A budget amendment can align your budget amount but overlap[s] the unforeseen items, such as major grants,” Mayor Bill Stevens said. “I do not see the benefit of making the budget match actual.”

For example, during the summer of 2025, the town’s parking enforcement wrote more than 12,000 tickets, compared to 9,000 the year prior. 

“I don’t believe we should amend the budget by things in our control versus amending for things out of our control,” Stevens said.

While council is not amending this year’s budget, in FY 2027, Stevens said they will meet monthly to track items that might require an amendment at the end of the year. That way, when the end of December comes, commissioners will be able to agree that the components of the budget amendment make sense.

For a list of budget materials and a link to the Feb. 13 meeting recording, go to townofdeweybeach.gov/events/41776/.