Dennis Barbour's finances, voting status questioned

Rehoboth Beach Commissioner Dennis Barbour's petition to run for re-election has been approved by the city commissioners, but the candidate is facing questions about his finances and residency status.

At the commissioners’ June 17 meeting, former Commissioner Bitsy Cochran asked Barbour to recuse himself from discussions of the city’s proposed property-tax increase.

“I’m uncomfortable with a commissioner who will vote on setting our tax rate when there are unpaid bills to the city,” she said.

Former planning Commissioner Nancy Meadows asked City Solicitor Glenn Mandalas if it was appropriate for Barbour to vote on the tax issue. Mandalas said it was up to Barbour to determine whether he should recuse.

Barbour did not recuse himself from the discussion and voted for the increase along with the rest of the commissioners.

City officials on May 9 sent a letter to Barbour citing his failure to pay the city’s 3 percent gross receipts rental tax. Barbour said he rents out his Columbia Avenue house in the summer.

Barbour’s property taxes and utility bills are all up to date.

City Manager Greg Ferrese said Barbour sent in a check for $600 for the gross receipts bill, received June 17. He said Barbour has until Thursday, June 30, to resolve the issue; if not, the city will not issue a renewed rental license. Ferrese said he did not know the amount due for Barbour’s gross receipts tax or whether the $600 Barbour paid is more or less than he owes, but he said he was confident Barbour would pay the city. Ferrese said he has not cashed the check.

Barbour said he has since settled up his $870 tax debt with the city and the 1.5 percent penalty, $15.50 per month, for every month past the deadline. He said the reason he missed the Feb. 15 deadline is that he did not have his income declarations back from his accountant and that he has received an extension on his 2010 taxes.

Barbour said he has nothing to hide, but he was concerned about confidentiality, citing city code that states the contents of a rental tax report are to remain confidential. Barbour said he has filed a Freedom of Information Act request to find out who got copies of the records.

Barbour is also the defendant in a civil case filed by Wells Fargo Bank over his mortgage. Barbour said this was part of the process of renegotiating his mortgage with another bank. He said he is working with the banks on the mortgage.

Wells Fargo’s attorney did not respond to requests for comment.

Resident or nonresident?

At the June 17 meeting, former Commissioner Ron Paterson asked Barbour whether he was filing for reelection this year as a resident or nonresident. Barbour said he filed as a nonresident.

Barbour said he votes, pays taxes and registered his car in Delaware. He said he has a Washington, D.C. driver's license – Barbour works in Washington, D.C. – and since he does not live in Rehoboth full-time, he claims himself as a nonresident. Barbour said he voted in Delaware in the last election.

Sussex County Department of Election Director Kenneth McDowell said a person could not have an out-of-state driver’s license and vote in Delaware, even if the person's car is registered in Delaware.

Barbour said he qualifies to run as either a resident or nonresident, but he has run and served as a nonresident commissioner because he spends most of his time in D.C. Barbour said it would be more to his advantage to run as a resident, because there are only three nonresident slots on the city commission.

“My options are very fuzzy here, and I’m telling people the situation, I’m telling them my intent, and I’m telling them why I’m doing it. I believe I’m doing this because it’s the ethical thing to do,” Barbour said.