Rehoboth sends package of charter changes to legislators

After months of discussion, Rehoboth Beach commissioners have sent a package of 15 proposed charter changes to the General Assembly for consideration. The favorable vote came during a meeting April 6.

Most of the discussion at the meeting centered around two of the changes.

The first is the removal of the $3 million hard cap on the amount of property taxes the city can collect. The city favors a percentage-based approach. The reason for the change is because the city is approaching that cap – for the fiscal year that began April 1, the city budgeted $2.7 million in property tax revenue.

City Manager Taylour Tedder said changing to a percentage-based approach would allow the city to collect property taxes as new, large projects get underway. For example, he said, there are plans for new hotels near the Boardwalk and a new neighborhood out on the highway.

As proposed, the percentage would be 0.1% of the fully assessed value of all real estate in the city, which would increase the current amount collected to a little less than $3.6 million.

In advance of the meeting, the city received more than 40 form letters from property owners against removing the hard cap. During the meeting, public comment was about 50/50.

Resident December Hughes was against the change, describing it as a guardrail against escalating expenses. This change represents a fundamental shift in the way the city operates, she said, suggesting a split-rate system for residential and commercial properties or lowering the existing rate to accommodate the new construction that’s going to take place in the future.

Resident Cindy Lovett said she was in favor of removing the hard cap. The charter is a living, breathing document, she said, and it needs to be updated with the times.

The second topic that drew public comment was related to who can serve as a commissioner. A proposed change that was moved forward would prohibit the spouse, domestic partner or cohabitant of a serving commissioner from serving. Another change would exclude someone who has a financial interest in the city with a serving commissioner.

Former Commissioner Lisa Schlosser said she wanted this provision removed because it was specifically targeting one property owner and was reminiscent of an ordinance passed by the city related to keeping trailers on private property that targeted her. The voters of Rehoboth don’t need artificial constraints, she said.

Jeffrey Goode, husband of Commissioner Suzanne Goode and a candidate in last year’s election, spoke against the proposal. It makes sense to let the voters of this city pick who they want, he said.

The remaining changes include: 

• Eliminating mileage reimbursement for nonresident commissioners

• Updating the process for changing the salaries of elected officials

• Removing the mayor’s civil and criminal jurisdiction

• Eliminating the penalties if the mayor fails to return city documents and money because the mayor does not hold either

• Increasing the maximum fine that’s allowed to be issued by the city from $500 to $2,500

• Making updates to the auditor of accounts section

• Removing the minimum valuation of $1,000 for real estate improvements subject to assessment

• Adding the option for Rehoboth to adopt the county assessments for municipal tax purposes

• Requiring the city to reassess property at least every five years

• Updating the deadline for certification of a quarterly tax list to match the city’s fiscal year

• Changing the deadline for preparing the city budget from May to March and changing the deadline for levying annual taxes from June to March to align with the city’s April 1 fiscal year

• Removing a few powers of the commissioners because they’re not relevant to present day and are no longer exercised by the commissioners.

There was some discussion about voting on each change individually, but that didn’t happen because this was at least the fifth time commissioners discussed the possible changes. In the end, the full slate of changes moved forward by a 5-2 vote, with Goode and Commissioner Craig Thier voting no.

The package of proposed changes now goes to the state’s General Assembly for consideration and possible approval. As of press deadline April 16, the proposed changes had not been introduced. The General Assembly meets annually until June 30.