Dewey Beach council approves allocation of FY26 surplus, designates funds for town hall and rainy-day account

The Dewey Beach Town Council on April 17 approved a resolution reallocating fiscal-year 2026 surplus, directing funds to meet a 15% unassigned balance target, replenish capital expenditures, and place the remainder into the town-hall capital fund.

Finance director Miss Hall told council that March transfer-tax receipts added $213,000 to FY26 totals, bringing transfer-tax revenue to approximately $1.2 million and pushing total FY26 revenues to about $7.5 million—roughly $1 million above budget projections. After adjusting for town-hall construction and capital outlays, total expenses were roughly $6.8 million.

Under the adopted resolution, the council will designate 13% of FY27 parking-fee revenue to grow the rainy-day target to a stated year-end goal and transfer $633,944 from unassigned funds to the town-hall capital account after other allocations are made. Council also clarified language to reflect that the rainy-day target had been set by resolution rather than by code and specified that $45,000 previously self-committed for the comprehensive-plan project be treated as a committed balance.

Commissioners said the allocations are intended to protect core operating reserves while supporting capital work the town already approved. The motion to adopt the resolution with the suggested wording changes passed unanimously.

Staff noted final entries will be made to close the year before the audit and that the council will direct adjusting journal entries to deposit remaining funds into the town-hall account after ensuring a 15% unassigned balance.