Delaware

Delaware coastal towns raising parking fees amid budget deficit

Parking fees in Rehoboth and Dewey Beach will be raised by up to a dollar as the cities grapple with a multi-million dollar budget deficit

NBC Universal, Inc.

It will cost vacationers more to visit Rehoboth Beach, Delaware, this summer after city leaders approved ways to cover a significant hole in their budget.

The city is raising parking fees from $3 to $4 an hour for summer 2024 as it faces a budget deficit that is now pushing a total of $4 million.

“To come up with a balanced budget, we gotta fill that gap,” Rehoboth Beach mayor Stan Mills told NBC10 on Feb. 9. “And one way we are thinking of filling that gap is to increase parking fees so that the visitor pays for some of these expenses.”

Parking fees were expected to rise from $3 to $3.75 an hour, but city officials officially voted this week to raise the summer price to $4 an hour.

Rehoboth Beach is demolishing its old beach patrol and bathroom buildings to make a for a new $5 million dollar building. Some city leaders argued visitors who choose to park in town should be expected to help foot that bill.

The hourly rate is also raising in Dewey Beach — from $3 to $3.50.

Daily passes, which used to be $15 on weekdays and $20 on weekends, will now be $25 every day of the week in both Rehoboth and Dewey Beach.

Other additional taxes to renters and homeowners could also be in the works, but increased parking fees will particularly hit summer daytrippers the hardest.

Property tax increases were proposed, but the cities aren't able to raise much more because city charter doesn't allow for more than $3 million to be raised through property taxes, and the city is already collecting more than $2 million.

The changes are set to take place Memorial Day Weekend in Dewey Beach, while Rehoboth Beach’s changes will be implemented on May 15.

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