Chesapeake Beach council adopts FY2026 budgets and tax rates; amendments and procurement questions linger

The Chesapeake Beach Town Council voted June 12 to adopt the town’s fiscal year 2026 budgets and to set municipal tax rates for the coming year.

In a single meeting the council approved ordinances adopting the general fund budget, the mitigation fund budget, the water park fund budget, the utility fund budget (including rates, charges and fees), and the water reclamation treatment plant fund budget. Council also amended the general-fund ordinance to explicitly state the operating (personal) property tax rate before approving the amended ordinance.

Why it matters: The votes set the town’s spending plan and revenue rates for the fiscal year that begins July 1, 2025. Council members also debated whether to use general-fund revenue to support the utility fund while the town awaits the results of a utility rate study by consultant NewGen.

Key outcomes at a glance

- O-25-6: General fund budget and municipal tax rates — APPROVED (amended to add operating property tax rate) - O-25-7: Mitigation fund budget — APPROVED - O-25-8: Water park fund budget — APPROVED - O-25-9: Utility fund budget and water/sewer rates, charges and fees — APPROVED - O-25-10: Water reclamation (wastewater) fund budget — APPROVED

Council debate and unsuccessful amendments

Two council amendments were proposed during debate and failed to pass.

1) Admissions and amusement tax increase: Councilmember [name withheld in meeting audio] moved to raise the town’s admissions and amusement tax from 0.5% to 1.0% and to direct the additional revenue into listed general fund priorities. Town counsel advised the council that the tax rate is codified in town code and that any change would require a separate ordinance amending the municipal code; the amendment vote failed.

2) Reclassify a grant to the utility fund as a…