More groups seek money as Rehoboth budget season nears

The turning of the yearly calendar means it’s budget season in Rehoboth Beach, and city officials already know more community organizations will be asking for more money than in years past.

Rehoboth Beach’s fiscal year runs April 1 to March 31. Commissioners hammer out the details of the budget during the months of January, February and March, typically approving the budget during the regular meeting in March.

As part of the annual budget, the city awards grants to a handful of community organizations. In the current budget, commissioners awarded $435,000 worth of support 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 and $50,000 for the Rehoboth Beach Historical Society and Museum.

City Manager Taylour Tedder announced Dec. 8 that there’s been a $152,000 increase in requests over the current year, with two new additions.

Tedder said the city received the following requests: $300,000 for the Rehoboth Beach Volunteer Fire Company, $75,000 for the Rehoboth Beach Public Library, $60,000 for Rehoboth Beach Main Street and $52,000 for the Rehoboth Beach Historical Society and Museum. New this year, he said, are requests for $25,000 from CAMP Rehoboth and $20,000 from Clear Space Theatre Company.

There wasn’t any discussion following Tedder’s announcement of the increase. However, Commissioner Suzanne Goode said the addition of more requests is a troubling trend. Hopefully, during the budget season the city will not be receptive, especially to some of these new requests, she said.

Mayor Stan Mills quickly moved past the topic, saying it’s more appropriate for when budget talks begin.

Following the meeting, Matty Brown, CAMP Rehoboth communications director, said the organization has actually requested $75,000, not $25,000.

CAMP Rehoboth put a request in for a grant writer to help diversify funding streams, and expand affirming services, health navigation, culturally competent education, peer and advocacy programming, and inclusive events that would benefit LGBTQ+ individuals, families, local businesses and community partners, said Brown. This funding would strengthen the well-being, visibility and advocacy capacity of LGBTQ+ residents across coastal and rural Sussex County, focusing on Rehoboth Beach and surrounding areas, he said.

Joe Gfaller, Clear Space managing director, said the organization received a letter from the city inviting them to consider a grant application. It was the first time to his knowledge the city had provided Clear Space directly with an application, he said.

Based on the invitation, Clear Space prepared an application requesting the city consider supporting its Scaling Potential, Bridging the Future program through grant funding. This program is intended to help Clear Space expand the capacity of both its arts institute and its theatrical programming over the course of the next several years to better meet the needs of the community until Clear Space is in its new facility.

The Longwood Foundation is supporting the initiative with a $350,000 gift, but it must be matched through revenue gained from the program, a combination of earned revenue and contributed support, said Gfaller. If the city decides to fund the request, its support would be part of what helps to meet the multiyear match against the Longwood Foundation's gift, he said.

The current fiscal year’s budget is about $44 million, which represented a 13.5% increase over the previous fiscal year, but the city didn’t increase taxes or fees because officials projected an increase in revenue. The current budget included a 3% cost-of-living increase for all employees and up to a 3% merit increase for eligible employees. The city also extended coverage of employees’ healthcare costs from 90% to 100%; dependents are covered at an 80% rate.

The additional community requests come with the city already knowing parking revenue for the current fiscal year fell $1 million short of the anticipated budget. That information came to light during an end-of-the-season report by city staff in October.

During a meeting in November, commissioners approved an official schedule of those fees, fines and penalties. There were changes to the monetary value in the fees, fines and penalties. However, commissioners said they are planning to update fees, fines and penalties as part of next year’s budget.

The city’s first budget meeting for FY 2027 is Friday, Jan. 16.