Chesapeake Beach previews FY27 budget, plans $18 million water-park construction and taps reserves to balance books

The Chesapeake Beach Town Council reviewed proposed FY27 budgets in a work session that laid out revenues and a capital program centered on an $18 million water‑park construction project and a mix of capital improvements.

Treasurer Dan presented the general fund revenue package, saying the proposed real‑property tax rate would remain at 0.2977. Because assessed values in town rose roughly $27 million, keeping the rate the same would generate an estimated $82,000 in additional real‑property revenue and push projected property‑tax receipts to about $3.2 million for FY27. The FY27 revenue picture also reflects higher admission/amusement taxes and a projected rise in speed‑camera receipts tied to renegotiated vendor terms.

Why it matters: the town is proposing to use multiple one‑time and financing sources to fund capital work. Treasurer Dan told councilors the budget assumes $16.9 million in transfers from fund balance plus roughly $1.1 million in state bond proceeds tied to the water‑park project, bringing the FY27 capital funding for the park to about $18 million. In addition, roughly $1.898 million in surplus funds is proposed to balance other general‑fund expenditures. Debt service for the water park is estimated at about $500,000 annually under a 15‑year repayment beginning in FY27.

Councilors pressed staff on revenue assumptions and line‑item reclassifications. On speed cameras, the treasurer explained the town currently pays a fixed monthly fee per camera to the vendor and collects a similar or smaller amount in fines; negotiating a contract that shares violation processing fees (for example, a $15 processing fee on a $40 ticket) would allow the town to retain a larger per‑violation share without raising fines. Councilors also asked that staff provide maps and line‑by‑line history showing last year’s highway‑user expenditures and the planned uses for the highway‑user funds in FY27.

Capital priorities presented in the budget include design and staging money for the railway‑trail extension, an estimated $5 million concept build for Kellum’s Park (to be advanced in part with grants), maintenance and boardwalk allocations, and a nearly $3.9 million consolidated capital list for other projects. A new separate recreation department was proposed to consolidate seasonal wages and event costs for clearer tracking.

What’s next: staff said the water‑park operating budget will be presented at an upcoming May work session and that capital budgets may be refined as grant opportunities and project design work proceed. The council asked staff to return with more detailed project maps and a clearer accounting of prior highway‑user expenditures before final adoption.