FY2027 Budget Adoption

March 20, 2026

City of Rehoboth Beach | March 20, 2026

Overview

The City of Rehoboth Beach Board of Commissioners today adopted the FY2027 Annual Budget at its regular meeting on March 20, 2026.

The total all-funds budget is $50,094,684, covering the General Fund, Water Fund, and Wastewater Fund.
The General Fund budget is $29.9 million — balanced, with no tax increases and no new fees.

The General Fund generates an operating surplus of $875,000 before capital spending — meaning recurring revenues fully cover recurring costs.
The City’s total fund balance across all funds stands at $77 million, with $19 million in excess above policy minimums.
The City has consistently finished each fiscal year with a surplus; FY2025 produced a year-end surplus of $1.21 million.

The FY2027 capital budget totals $13.6 million across all funds — funding critical infrastructure in water, wastewater, streets, and public safety.
Major projects include Phase IV Wastewater Plant upgrades ($4.5M), PFAS treatment for Wells 7 & 8 ($2.4M), Pedestrian Safety Bollards ($1.0M), LED Boardwalk Retrofit ($550K), and Water Main Replacements ($550K).
All capital is funded from operating surpluses and excess fund balance — no new debt is being issued.

The FY2027 budget is achieved without any increase to property taxes, transfer taxes, or utility rates.
The City continues to self-finance capital projects, avoiding the interest costs associated with borrowing at today’s rates.

Total outstanding debt across all funds is $63.2 million, with all debt on track to be retired by FY2043.
Annual debt service drops meaningfully starting in FY2029 as a portion of existing debt matures, providing long-term fiscal relief.
The City is responsible for 58% of wastewater outfall and plant improvement loans — Sussex County covers the remainder.

The General Fund is projected to maintain an operating surplus in every year through FY2030, ranging from $861K to $1.19M annually.
The five-year capital plan (FY2027–2031) totals $18.3 million for the General Fund alone, addressing ongoing infrastructure needs across streets, stormwater, and public facilities.
FY2029 brings a 13.5% reduction in General Fund debt service as outstanding bonds mature, further strengthening the City’s long-term financial position.