Rehoboth task force recommends sharing costs of new utility

Last month, in an effort to fund 100% of a multimillion-dollar capital improvements list, the Rehoboth Beach Stormwater Utility Task Force voted in favor of a billing method that would tax a typical residential property hundreds of dollars annually, while nonresidential properties could pay thousands.

This month, during a meeting Dec. 6, the task force voted in favor of another recommendation: city commissioners explore additional revenue sources as a way to lessen the burden of the utility on property owners. The recommendation was purposely vague because the task force decided it was the commissioners who should figure out the details. However, task force members had their own recommendations.

Task force member Janice Miller, a council member in Fairfax, Va., which recently implemented its own stormwater utility, started the conversation by suggesting there could be increases to parking fees or building permits, and then earmarking the additional revenue. Any way it’s cut, there’s going to be a significant increase and it’s important that everyone contribute, she said.

As of now, almost $700,000 worth of annual operations and management is also included in the 100% funding method. Task force member Frank Cooper suggested moving the annual maintenance and operations budget into the general fund, which is funded in large part by revenue from visitors.

The proposed utility may cost most residential properties hundreds of dollars a year, but it could cost much more – into the tens of thousands of dollars – for nonresidential properties. The proposed billing method would be based on percentage of lot coverage, and nonresidential properties are allowed 100% coverage. 

Task force member Bob Suppies, a Baltimore Avenue restaurateur who is on the task force representing the business community, suggested paying for projects over a longer period of time. If this is going to be a forever thing, stretch it out, he said.

Engineer Christine Estes, who works for the city’s consultant AECOM, said most municipalities do not fund 100% of capital improvements.

In addition to recommendations on lowering costs for property owners, task force members continued to discuss how important it will be to educate the public on the need for the utility and why Rehoboth’s rates will be so high compared to other municipalities.

In Delaware, there are already three stormwater utilities – Wilmington, Newark and Lewes. According to information presented when the task force first started meeting earlier this year, all of those municipalities have an annual cost that’s hundreds of dollars less than the proposed rate for Rehoboth.

Following the meeting, Public Works Director Kevin Williams said the city has identified a couple of large, expensive stormwater infrastructure projects for which there is no current funding. Examples, he said, include rehabilitation of the stormwater system along Bayard Avenue and installation of a stormwater system in the Kent/Sussex/Dover streets area of the city.

There’s a large number of identified expenses and needs, and a relatively small population that is included in the stormwater utility area, said Williams.

Looking forward, the task force is next scheduled to meet Tuesday, Feb. 14. The expectation is members will review and finalize recommendations, and then make a presentation to commissioners in March.