In 2019, then-Mayor Paul Kuhns said the city wanted to stay as neutral as possible and let everyone celebrate the holiday season the way they see fit.
The city responded to the lawsuit in August, saying that it had not violated any constitutional rights because it did not have a policy that prohibited religious displays, according to court documents.
Commissioners later approved a policy Dec. 7 that prohibits any private unattended displays on city property. This policy does not apply to unattended displays owned by the city.
In 2020, Rehoboth Beach displayed a holiday display that included an illuminated menorah, a Kwanzaa display, a snowman, lighted Christmas trees and a crèche it purchased in 2020 consisting of a wooden shelter and at least 10 statues.