Rehoboth property tax rate unchanged in FY 2026 budget

A few minutes after hearing the meter season has gotten off to a slow start due to bad weather, Rehoboth Beach commissioners set a property tax rate that’s the same as last year’s 30% increase. There had been a discussion about possibly lowering the rate.

Last year, commissioners increased property taxes to $0.0775 per $100 of assessed value, which increased revenue by about $590,000.

During a meeting June 20, commissioners voted 3-1 in favor of keeping the same tax rate. The budgeted revenue from property taxes for the current fiscal year, which began April 1, is about $2.66 million. Commissioners Edward Chrzanowski, Suzanne Goode and Mark Saunders were absent.

Commissioner Craig Thier was the lone no vote. First, he said, when taxes were raised a year ago, commissioners had inaccurate information and not a full list of options to balance the budget.

Second, he said, the city has a fund balance policy for the general operating fund, which sets a minimum fund balance of $21.6 million. At the end of fiscal year 2024, the fund was $23.8 million, and the city is projecting a surplus of about $4.5 million for last year, for a total of about $28.5 million.

“If we don’t think the unassigned minimum is high enough, then let's have that discussion. Otherwise, we need to be getting back down to that unassigned minimum of $21 million,” said Thier.

Earlier in the meeting, City Manager Taylour Tedder said parking meter revenue for the month of May was up slightly – about $5,700 – but generally flat compared to last year. However, revenue for June 1 through June 15 was down about $150,000 – $712,000 in 2025 to $862,000 in 2024.

Presumably it’s because of the poor weather, said Tedder. If the weather picks back up, the city is confident the difference will be made up through the remainder of the parking season, he said, adding that parking permit sales were also down.

In response to Thier’s comments, and in light of Tedder’s financial update, Commissioner Patrick Gossett said the property tax is the city’s only revenue source not based on usage. Parking, rental tax, transfer tax, license and permits, hotel tax, fines and sale of property are all based on usage, he said.

Candidates certified  

Commissioners certified that the three candidates in the city’s 2025 election meet the qualifications set out in the city’s charter. There are three candidates for two commissioner seats – Chris Galanty, Jeffrey Goode and Susan Stewart – and all three meet those requirements.

Jeffrey Goode is the husband of Commissioner Suzanne Goode. Prior to his certification, City Solicitor Lisa Borin Ogden offered her opinion on what would be a city first if Jeffrey were to win – a husband and wife serving as commissioner at the same time. Ogden said she’s been asked multiple times if both Goodes can legally serve simultaneously on the board of commissioners. 

“Upon review, I find no explicit legal prohibition that would prevent such a circumstance,” said Borin Ogden. “However, while there is no legal barrier, it’s important to acknowledge that such a situation would present the potential for conflicts of interest to arise.”

Chrzanowski and Francis “Bunky” Markert are not running for re-election. Markert didn’t file for re-election, while Chzanowski withdrew a few days after filing for re-election.

The election will be held at city hall from 10 a.m. to 6 p.m., Saturday, Aug. 9. Absentee ballots will be available beginning Wednesday, June 25. The deadline to register to vote is 4:30 p.m., Thursday, July 10. The deadline for the city to mail ballots is Tuesday, Aug. 5. Any qualified elector may request an absentee ballot by filing a request form until noon, Friday, Aug. 8. Ballots must be received by mail or in person before the polls close on the day of the election. For more information, contact the city’s election office at 302-227-6181, Ext. 108, or go to rehobothbeachde.gov.