Dewey holds FY 2027 budget workshop

Dewey Beach Town Council and the finance committee held a budget workshop Jan. 16, to review the draft Fiscal Year 2027 operating budget and hear from town staff regarding departmental needs.

“It’s been a marathon, not a sprint,” said Town Manager Bill Zolper about developing the draft.

Compared to the original FY 2026 operating budget, the draft FY 2027 budget includes a 5% increase in revenue and an 11% increase in expenses.

The main reason for the increased expenses is related to employee obligations. The police department’s union contract, for example, requires promotions and a minimum raise increase on a set schedule. 

Additionally, returning Dewey Beach Patrol lifeguards and other returning DBP staff members will receive their scheduled step raises.

For context, the town’s lifeguards and police officers have lower salaries and wages than surrounding towns, so these raises will help make them a little more competitive.

Transfer tax revenue and a couple other revenues were increased from the original FY 2026 budget to the draft FY 2027 budget, taking into account increased fees and higher property prices. However, most other revenues were budgeted to stay the same, an effort to budget conservatively in case of unpredictable changes or shifts during the year.

Commissioner Gary Persinger pointed out that the draft doesn’t include the regular contributions to the rainy day fund the town needs to make throughout the year to comply with its new fund balance policy, which was adopted in November 2025.

Mayor Bill Stevens noted the town will be sure to resolve that by adding those contributions into its calculations to determine what it needs to generate in revenue to cover its operating expenses.

He also asked Zolper and Accounting Manager Sheena Hall to cut back a bit on the budgeted spending, as the draft includes some extra cushion.

“I appreciate the honesty and the candor about having a little excess in there, but this is going to be a challenging year,” Stevens said. 

The new town hall is scheduled to be completed by September, and with the new building come some uncertainties, including changing expenses for things like utilities, cleaning and janitorial services. 

“We’re going to try to be as prudent as we can in terms of utilizing existing furniture and equipment as we move over there, but we really need to make this a tight year,” Stevens said. 

Additionally, the police department’s union contract will be up for renewal next year.

Zolper and Hall will go back through the draft and cut expenses where they can. Zolper estimated they can cut around $25,000 if necessary.

For a link to a recording of the workshop or to view a copy of the draft budget, go to townofdeweybeach.gov/meetings.