SUMMARY OF DEWEY BEACH TOWN COUNCIL MEETING HELD AT THE LIFESAVING STATION ON SATURDAY, April 14, 2007, AT 9:00 A.M.

Highlights:

1.  Ruddertowne Committee reports that a developer that had been interested in redeveloping the Ruddertowne property has decided not to pursue the project.  Other potential developers are being sought.

2. Approval for two new eating establishments moved forward.

3. A five-year strategic budget and operating plan developed by the Finance Committee was approved.  It was noted that Dewey Beach is the most financially healthy town among its neighbors, including Bethany Beach and Rehoboth.

4. Plans for the Civic League sponsored Town Cleanup and Planting Day at 9:00 am on May 12 were announced, along with a Happy Hour for business owners and residents at the Starboard at 4:00 pm later that afternoon.

5. A new structure for town business license fees was approved.

6. Planning and Zoning Committee summarized new residential zoning requirements that are under study, based on citizen input.

Proceedings:

With all Commissioners present, and the meeting began at 9:00 am.

I. Red Hat Day

            The mayor read and presented to Vivian Berry a proclamation honoring the Red Hat Society and making April 25 Red Hat Society Day in Dewey Beach.

II.  Change of Fiscal Year

            After discussion, it was agreed that the town’s fiscal year should be changed from a January 1 start to an April 1 start.  This would allow for easier budgeting after the induction of new commissioners and an ability to react to early-in-the-year events and decisions by other towns.  Since the proposal requires a charter change, the commissioners felt it was best to have the change approved by the voters in a referendum at the next election, after which it would have to be approved by the state legislature.

III.  Parking in Town

            The parking committee is continuing its work to make parking more available in town in the summer months.  Several vacant lots have been identified and the owners will be approached about allowing public parking on them, perhaps with some incentives offered to the owners for making this accommodation. 

IV.  Ruddertowne

            Commissioner Eisenhauer reported that a Northern Virginia developer that had expressed an interest in re-developing Ruddertowne had just announced that it would not move forward due to the press of other projects.  Other developers have expressed interest, and discussions will be held with them in the near future.  The Ruddertowne Architectural Design Committee’s next meeting is on May 2.

V. New Restaurants and Eateries

            There was approval for the application of Rita’s Water Ice to be located at Highway One and New Orleans Street.

            There was also active discussion and ultimate approval to send to the Planning and Zoning Committee an application for the building of two Hawaiian restaurants (one a bar and grill and one for fine dining) at Highway One and Dickenson street.  There was a discussion about available parking (there would be no new parking) and potential noise from music (the owners present promised it would be limited), but in the end, most felt that the restaurant would benefit the town and its submission was approved.

V.  Five Year Capital and Operating Plan

David King summarized the work of the Finance Committee to develop a five-year strategic budget for the town based on anticipated needs for capital improvements, operating expenses, and revenues expected in years ahead.  The document is intended not as a binding budget or set of limitations, but as a planning and reference document to anticipate future needs. It would be subject to periodic review and change.  It anticipates increased expenses in the future due to a 3% per year inflation factor applied to salaries, supplies, and other expenses.   It also anticipates replacement of equipment such as computers and copiers as they wear out. The committee and the Council was commended for this wise strategic step.

It was noted that Dewey has a large surplus, largely due to transfer taxes, and appears to be much healthier financially than its neighboring towns, many of which are raising taxes and fees to cover deficits and expenses. 

VI.  Business License Fees

The committee attempting to restructure the town’s business license fees has completed much of its work and presented its proposals for a new structure for the fees and the resulting changes in the dollar amounts.  The fees have  been a subject of controversy in the past as their rational basis and relative fairness have been a source of irritation to various business owners, many of whom expressed their unhappiness with the current structure at the meeting.  The new structure was intended to make the system of calculating license fees more transparent and more rationally related to the cost of regulation.  A scaling of fees based on the relative size of the business is a feature.  The plan would result in a $90,000 shortfall in revenue, but the committee’s hope and expectation was that this would be recouped by better compliance, more businesses being attracted, and other increased revenues the town was currently experiencing.  Some businesses argued that they have been over-paying the town’s costs under the current structure and, due to the financial surplus of the town, they deserved a reduction in fees.  Others noted that transfer tax revenues were slowing down and that the state and the county might take some of that revenue in the future under a bill under consideration in the state legislature.  The town would also probably lose federal money for beach replenishment in the future due to federal budget limitations.  In the end, the new structure for calculating fees was approved by the Council, subject to future debate on the actual multipliers and with the stipulation that, for 2007, no business would experience an increase in fees.

VII.  Town Beautification and Unity Day on May 12

            The Mayor, Civic League President David Main, and Diane Hanson (Chair of the League’s Town Beautification Committee)  announced that on May 12 the League, the Town, and local businesses would combine to hold a cleanup and beautification event, starting with volunteers gathering at Sunset Park at the west end of Dagsworthy Street at 9 am.  Many flowers and trees will be planted throughout the business district, and after the work was done, there will be a Happy Hour from 4:00 to 7:00 pm at the Starboard.  Business owners were joining the League in offsetting the costs of plantings and T-shirts for all workers.  The Happy Hour would also be in celebration of Mother’s Day on May 13. 

There was an appeal for more volunteers, as it will take at least 50 workers to get the job of planning and cleanup completed.

VIII.  Zoning Changes Under Consideration

The Planning and Zoning Committee summarized public feedback that was under consideration which could lead to changes in the residential zoning regulations in the future.  Preferences had been expressed against box-like structures and flat roofs, and in favor of larger back yards, balconies and preserving views, among many other factors.  The committee planned to meet at 2 pm later that afternoon and requested greater public input on these important considerations for the future look of the town.