Rehoboth commissioners agree to increase employee benefits

Looking to attract and retain city staff, Rehoboth Beach commissioners agreed to increase healthcare coverage to 100% for employees and keep merit increases to salary, not one-time bonuses, as part of next year’s budget.

Since January, commissioners and staff have been working on next year’s budget, which runs annually from April to March 30. It’s the first budget for City Manager Taylour Tedder, who took over in mid-May last year.

As proposed, between the general, water and wastewater funds, the revenue would be about $43.9 million, while expenses would be about $43.45 million. The capital improvement budget is almost $11.3 million. There are no tax or fee increases proposed.

If approved, this will be the second year in a row for a change in healthcare coverage. Last year, commissioners approved an increase from 80% to 90%. Dependents will still be covered at 80%.

Commissioner Patrick Gossett said the staff is what makes the city run. They’re the most important part of the operation, he said. Taking care of them and showing appreciation for their hard work is important, he said.

There was discussion about changing from merit increases to one-time bonuses for city employees, but ultimately commissioners decided to stick with merit increases.

Commissioner Edward Chrzanowski said merit increases do compound, but the city conducts salary studies every few years to make sure city employees are being paid appropriately. The city would just be playing catch-up in the end, he said. 

Commissioners also agreed to fully fund the community partner requests. This was the second year for the city’s new application program for community partners.

The Rehoboth Beach Volunteer Fire Company will receive $250,000. The Rehoboth Beach Public Library will receive $75,000. The Rehoboth Beach Museum will receive $50,000. Rehoboth Beach Main Street will receive $60,000.

The city needs all these organizations, said Commissioner Craig Thier.

Commissioners had scheduled a fifth budget meeting for the morning of Friday, March 21, but that has been canceled. Instead, passage of the budget has been placed on the agenda for a regularly scheduled commissioner meeting for the afternoon of the same day. The budget is the only old business item on the agenda.