20 years ago, parking in Rehoboth cost 25 cents an hour. Starting this year, it's $4

Rehoboth Beach commissioners are raising parking costs and the city's rental tax rate to address a budget shortfall.

The increases will address a missing $4.4 million in the city's proposed $37 million budget, expected to be adopted in March. The money will go toward employee raises, indicated as necessary by a recent study, and a big increase in employee health insurance costs.

Metered parking will go from $3 to $4 an hour. For some perspective, 20 years ago, Rehoboth Beach parking meters ranged from 25 to 75 cents an hour. Parking permits will go up 30%.

New parking permit prices are as follows:

• Seasonal, transferable: $325

• Seasonal, transferable beginning Aug. 1: $165

• Seasonal, nontransferable: $295

• Seasonal, nontransferable beginning Aug. 1: $150

• Weekly: $120

• Three-day weekend: $60

• Daily: $25

• Scooter (seasonal): $55

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The 1% rental tax rate increase will apply to all rental agreements made April 1 or later.

The commissioners are expected to consider increases to the city property tax and wastewater rates, as well, at their March 15 meeting.

“We are attempting to spread the burden of these increases among city stakeholders, so that both our visitors and our residents are vested in and investing in Rehoboth’s future," Mayor Stan Mills said in a statement.

Shannon Marvel McNaught reports on southern Delaware and beyond. Reach her at [email protected] or on Twitter @MarvelMcNaught.

This article originally appeared on Delaware News Journal: Remember when it cost a quarter to park in Rehoboth? Now, it's $4/hour