TOWN OF OCEAN CITY
FISCAL YEAR 2021 ADOPTED BUDGET
Anticipated fuel sales are based on the average number of gallons sold for the past five years. The average number of gallons of Jet increased 3,765 gallons, while the gallons of 100 LL decreased 1,000 gallons. Per gallon costs for both types of fuel are projected to remain the same. T-Hangar rental fees are increased on a biannual basis and will be increased in FY 22. Land rent to the Lion’s Club will remain at $3,600, and land rent to the Golf Couse is budgeted at $2,053. Usage of the concrete crushing operation has been anticipated to increase. Revenue from this operation is shown in the Service Charges line item. Prior year revenue from the crushing operation was utilized in FY20 to fund hangar painting at $120,000. $2,090,000 in State and Federal grants are anticipated for the FY 21 budget. This represents 90% Federal, 5% State and 5% local match for runway 14/32. The General Fund subsidy of the Airport decreases $377,993, from $691,164 to $313,171. Included in the FY 20 subsidy was $498,000 to cover a balloon payment on the Airport improvement bonds of 2010. The FY 21 subsidy includes $203,171 for operations, and $110,000 for the Town’s local match for Runway 14/32.
Three full-time employees are budgeted in this division. One full-time position was converted to a part-time, year-round position in FY 11. A step increase effective January 1, 2021 has been included. Two part-time, year-round Office Associates and two seasonal line technicians are employed by this division. Wages reflect pay table changes resulting from the increase in minimum wage. Benefit costs for health insurance and pension are projected to increase, while retiree health, worker’s compensation and unemployment are projected to decrease.
CHANGES IN OPERATIONS:
Contracted Services include professional services, building and equipment maintenance, credit card fees and other services. Credit card fees are anticipated to increase $2,000, and legal fees are anticipated to increase $3,500. A replacement fire alarm system has been included at $8,750. Both building and equipment maintenance estimates increase for FY 21, with an overall increase of $12,700. Concrete crushing has been included at $90,000, an increase of $22,500 from the FY 20 budget. Mowing of the fields surrounding the airport has been included at a cost of $17,664. Other expenses included in Contracted Services include maintenance of the field lighting, $10,000, and Navigation Aid technical support, $12,000. Replacement of 66 fire extinguishers at a cost of $11,640 is the increase in the Supplies and Materials line item. Purchases for Resale fuel purchase costs are the primary expense of the Airport fund. Fuel purchases are budgeted at $431,664 for the coming year, an increase of $7,669, with no anticipated increase in the costs of either type of fuel. The number of gallons of jet fuel increased, while the number of gallons of 100LL decreased by 1,000 gallons. Energy costs are expected to increase. Vehicle fuel is projected to increase, while vehicle maintenance costs are projected to decrease for this division. Allocations for IT Services, property and liability insurance, vehicle lease, radio equipment lease and General Overhead increase for this division. Debt Service decreases as the 2010 Airport bonds were paid off in FY 20. Capital Outlay includes the first phase of Runway 14/32 improvements at $2,200,000.