Rehoboth Beach names city manager

Compensation package jumps $90K, adds interest-free house loan

By Brian Gilliland
Posted 4/15/24

It’s no secret that there have been some challenges filling the Rehoboth Beach city manager position.

But, for its newest hire, Taylour Tedder, formerly of Boulder City, Nevada, there are some added compensatory incentives in the contract.

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Rehoboth Beach names city manager

Compensation package jumps $90K, adds interest-free house loan

Posted

REHOBOTH BEACH — It’s no secret that there have been some challenges filling the city manager position.

But, for its newest hire, Taylour Tedder, formerly of Boulder City, Nevada, there are some added compensatory incentives in the contract.

The city manager role has been in transition since May 2022, when, after almost a decade, Sharon Lynn stepped down, at a salary of just over $141,000. The most recent person to vacate the job was Laurence Christian, who resigned in November 2023 at a salary of $160,000. He was subsequently hired by Rehoboth Beach as a consultant, at a rate of $120 per hour.

Now, Mr. Tedder has been named city manager, with a start date of May 15. He will oversee 101 full-time and 26 part-time year-round staffers, as well as 140 seasonal employees, with a 2025 budget of almost $38.6 million.

Since 2021, Mr. Tedder had been responsible for the management of Boulder City, a community of 15,000 about 26 miles southeast of Las Vegas and home to the Hoover Dam. There, he supervised a staff of 212 full-time and 135 part-time employees and a budget of $198 million.

According to his hiring agreement with Rehoboth Beach, he will begin with a yearly salary of $250,000, about $90,000 more than his predecessor’s. According to the Boulder City Review, his pay in the role there was $187,000.

But that’s only the beginning of the compensation package. He will also get a raise any time municipal employees do and is eligible for annual increases based on performance. Plus, the city will contribute 5%, or about $12,500, to its defined contribution plan the first year and will increase the percentage to 10, incrementing by 1% for each year of service.

Mr. Tedder will begin with 80 vacation hours and will accrue another month’s worth of paid time off during his first year, as well as additional sick leave. The city will pay 90% of Mr. Tedder’s and his spouse’s health, dental and disability insurance, and will pay him $750 per month to use his own vehicle to travel to meetings within 60 miles.

And, while Mr. Tedder is required to live within 15 miles of City Hall — unless Rehoboth officials approve otherwise — the mayor and commissioners are providing him an interest-free loan to buy a residence.

“A one-time conditional no interest loan of $750,000 ... shall be provided to the city manager,” the contract states. “The Loan shall be provided to facilitate the purchase of a home and shall be provided approximately contemporaneously with such a home purchase.”

The loan is available on the effective date of the contract, which was April 9.

The line of credit available to the new city manager will also be forgiven, according to the following schedule: After four years, if Mr. Tedder remains on the job, 15% of the loan will be forgiven, or about $112,000. The next year, another 15% is forgiven. Upon the sixth year, 30% will be forgiven, and on the seventh anniversary, it would be completely forgiven.

As for moving expenses, Mr. Tedder will also accrue up to $50,000 from the city for reimbursement, up to a full year after his move.

There are provisions to repay the loan if the city manager dies, becomes disabled or leaves employment before the terms of the agreement.

Also, should he be terminated for convenience and not cause, Mr. Tedder would be entitled to a severance package equal to six months’ salary. If terminated for cause, the city would have no obligation to pay severance, according to the contract.

Rehoboth Beach budgets almost $9.5 million, or 42% of its operations budget, for salaries, according to its fiscal year 2024 budget.

Of the 101 full-time employees, 59 earn between $40,000-$60,000 annually, and 43 full-time, as well as five part-time employees, have been with the city for more than seven years, according to Lynne Coan, the municipality’s communications specialist.

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