Dewey officials hold public budget workshop
The Dewey Beach Finance Committee and town council met for a public budget workshop Dec. 8, to review and discuss current revenue sources and trends, and brainstorm potential new revenue sources.
The workshop centered around larger data trends, cost drivers, and license and fee structures, rather than on granular numbers, allowing the group to see an overall picture of the town’s earnings.
“[As a] government, we’re not here to make a profit,” Commissioner Paul Bauer said. “We’re here to break even and provide service.”
In order to provide these services, the town needs to make enough money to pay its employees competitive salaries and benefits. Currently, Dewey Beach is competitive with many of its neighbors in terms of benefits but is lagging behind when it comes to salaries.
Over the next five years, the town plans to raise its seasonal and full-time staff salaries and benefits to try to keep pace with other towns. In order to fund these raises, the town will need to increase its revenue.
In the past, this has meant tweaking nominal fees, such as increasing the cost of parking in town. Some town officials, however, are pushing for a more permanent and dependable solution.
“We need a predictable, logical way to have a large amount of income each year for the town,” said finance committee member John Gephart. “We can tweak these fees ‘til we get red in the face, but the only way to have a predictable budget revenue amount that allows us to compete [and] hold our employees is to have a property tax.”
This certainly isn’t the first time someone has proposed enacting a property tax in town, and it’s long been a point of contention.
Dewey Beach is the only town in Delaware – and one of very few across the country – without a general municipal property tax, making it harder to generate money to fund local public safety, infrastructure, and other essential community and government services.
Under the Dewey Beach town charter, the town could enact a property tax only through the passing of a public referendum.
Rather than enacting a property tax, Mayor Bill Stevens suggested changing the town’s existing accommodations tax rate, which is currently limited to 3% by the town charter. For reference, other local towns, like Bethany Beach, Fenwick Island and Rehoboth Beach, charge rates of 6% or higher.
An increase in Dewey Beach would require the passing of a public referendum and a modification to the town charter – a process that is possible, albeit lengthy.
No action was taken at the workshop, as it was intended solely as a chance for the group to review and discuss data, and brainstorm ideas.
Another budget workshop is planned for January 2026, though the exact date has not yet been finalized. It will include participation by town department heads, which will allow for a deeper dive into town expenditure projections for FY 2027, opportunities for reductions and associated impacts and risks.
Ellen McIntyre is a reporter covering education and all things Dewey Beach. She graduated with a bachelor’s degree in journalism from Penn State - Schreyer Honors College in May 2024, then completed an internship writing for the Pittsburgh Post-Gazette. In 2023, she covered the Women’s World Cup in New Zealand as a freelancer for the Associated Press and saw her work published by outlets including The Washington Post and Fox Sports. Her variety of reporting experience covers crime and courts, investigations, politics and the arts. As a Hockessin, Delaware native, Ellen is happy to be back in her home state, though she enjoys traveling and learning about new cultures. She also loves live music, reading, hiking and spending time in nature.
