After lengthy discussion and a few testy exchanges, Rehoboth Beach commissioners have signed off on a package of changes to the city’s charter to pass on to state lawmakers for approval.
While many of the proposed changes were fairly straightforward - like moving the month for budget approval to better line up with the city’s fiscal year - or clearing up antiquated policy, like the removal of commissioners to “regulate the observance of the Sabbath Day, some were more controversial.
Commissioner salaries and reimbursements
One point of contention was commissioners’ ability to give themselves a pay raise and how they are reimbursed for mileage. The proposal on the table in front of commissioners would allow them to change their salary by a vote, with the caveat that the salary change would not take effect until after sixty days or the next election, whichever is later.
Commissioners were generally in favor of the move, which would remove salary numbers from the charter and place compensation in the hands of commissioners, rather than having to go to state legislators for charter changes if they want a raise. But, Commissioner Suzanne Goode, who pushed for a big pay raise last year, took exception to the waiting period, which she characterized as arbitrary.
GOODEWEB01: “It should take effect immediately because of common sense, because we're magnitudes lower [in salaries] than other communities. So it makes no sense to have another six-month waiting period or until the next election.”
City Solicitor Lisa Borin Ogden explained the delay was an important check on the system.
OGDENWEB01: “The six-month period functions as a cooling-off provision to ensure that the compensation changes are deliberate, stable, and subject to sustained public scrutiny and that they may be evaluated in the context of the city's budgetary cycle.”
Goode was unconvinced, drawing a parallel between raising commissioners’ salaries with requested raises for city staff.
GOODEWEB02: “I think it's sad that we are inventing things as we go, that somehow we need this cooling off period or waiting period for the Board of Commissioners, but we never need it for anyone else. It seems like unequal treatment to me.”
Goode joined the six other members of the body in supporting the measure. A motion she offered to do away with the waiting period failed due to lack of a second.
Commissioners differed more sharply over whether to reimburse themselves for mileage. Unlike many municipalities, Rehoboth Beach allows so-called nonresident commissioners who own property in the city but don’t make their primary residence there to serve. The charter allows nonresident commissioners to be reimbursed at the standard IRS rate for travel from their primary residence to the city for meetings.
The only nonresident commissioner, Christopher Galanty, said he hasn’t availed himself of the mileage reimbursement, but still opposed eliminating the provision.
GALANTYWEB01: “If you had an instance where a city resident was elected who was living full-time in another location, it is like a business trip to come here, and every company provides mileage reimbursement for employees who are going on business trips.”
Commissioners were sharply divided over doing away with the reimbursement provision, resulting in the narrowest vote of the package of changes. Four commissioners voted to do away with the mileage reimbursement, with Galanty, Patrick Gossett, and Craig Thier voting to keep it.
A proposed addition to the charter introduced by Commissioner Susan Stewart would make it impossible for spouses, partners, or people who have financial ties to current commissioners to run for the body. That met with opposition from Galanty, who said it took power out of the hands of the voters, as well as from Goode, who said the measure targeted her directly.
GOODEWEB03: “This is targeted specifically at me. My husband regrets running and has no further interest in that. But be that as it may, we're disenfranchising people based on whom they've chosen to marry, live with, or have financial relationships with.”
Goode’s husband, Jeffrey, ran unsuccessfully for the Board of Commissioners last August.
Property assessments
Commissioners also discussed at length a charter change that would allow the city to use Sussex County’s property assessment figures instead of contracting to provide their own. Mayor Stan Mills stressed that the change would give the city an option, not a requirement to use Sussex County’s assessments.
Commissioner Craig Thier opposed even the option, however, saying he found it unlikely that the city’s assessment goals and the county’s would align. He also noted that city residents would have to appeal to the county if they disagree with their assessment.
THIERWEB01: “If a resident wanted to appeal, are they really appealing - with our objectives not aligning - are they going to get a fair appeal?”
Commissioner Susan Stewart argued that the measure just gives the city the option to use county assessments.
STEWARTWEB01: “I'm a strong proponent for allowing us to do this in the future and feel that we will have that debate at the time.”
Thier was the sole vote against the proposal.
Changes to the revenue cap
A further charter change would affect how much money the city can raise from property taxes, rehashing a debate commissioners had last month. Currently, the amount the city can bring in is capped at a flat $3 million per year. Right now, the city is at about 90% of that level, some $2.7 million. Commissioners debated a proposal that would do away with the flat cap and instead limit revenue to 0.1% of the total value of assessed property in the city. With the current tax digest, that would amount to about $3.5 million.
Goode spoke in opposition to the change, saying the city’s budget was out of control.
GOODEWEB04: “To me, this is just a way of almost ensuring that the property owners will be bearing more of a burden in this city of an ever-increasing budget.”
But Stewart pointed out that an increase in the cap did not necessarily mean that taxes would go up.
STEWARTWEB02: “So let's just say we all get reassessed by the city and they're really high. We'd still have to come back here to set the tax rate.”
The change to the cap passed 5-2 with Goode and Thier voting against it.
Commissioners also voted 6-1 to require a citywide reassessment every five years, in line with the requirements for all three Delaware counties.
After the city’s solicitor updates the changes, the proposals move to Dover for evaluation and a vote from state lawmakers.
