TOWN OF OCEAN CITY
FISCAL YEAR 2018 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 fuel has increased, while the average number of gallons of 100 LL have decreased. Per gallon costs for both types of fuel are projected to decrease. T-Hangar rental fees have been increased slightly. Land rent to the Lion’s Club will remain at $3,600, and land rent to the Golf Couse is budgeted at $1,080. Usage of the concrete crushing operation has been anticipated to decrease. Revenue from this operation is shown in the Service Charges line item. Federal and State grants for Runway 14/32 design have been included. The total project cost is $450,000 and is funded 90% Federal, 5% State and 5% local match. A state grant has been included for the West Ramp Rehabilitation project, with a total project cost of $2,000,000, funded 75% State and 25% local match. Also included is a State grant for property acquisition and easements with a total project cost of $300,000, which is also funded at 75% State and 25% local match. Delmarva Power will pay the Airport a fee for staging equipment at the Airport, which is shown in Miscellaneous Revenue. The General Fund subsidy of the Airport increases $564,133, from $244,307 to $808,440. Included in the subsidy is $597,500 for the Town’s local match for the grant-funded projects.
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, 2018 has been included. Two part-time, year-round Office Associates and two seasonal line technicians are employed by this division. Benefit costs for health insurance, pension, and unemployment are projected to increase.
CHANGES IN OPERATIONS:
Contracted Services include professional services, building and equipment maintenance, credit card fees and other services. The Airport business plan was included at $60,000 in the FY 17 budget, but the State did not fund in FY 17. Credit card fees are anticipated to decrease, while legal fees are projected to increase. A replacement heat pump for the main terminal 2nd floor office has been included at $6,500, and replacement of the jet fueler hoses has been included at $2,000. Concrete crushing has been included at $42,000, a reduction of $13,000 from the FY 17 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, $10,000. Purchases for Resale fuel purchase costs are the primary expense of the Airport fund. Fuel purchases are budgeted at $375,500 for the coming year, a decrease of $95,500, and an anticipated reduction of the costs of both types of fuel. The number of gallons of jet fuel has increased, while the number of gallons of 100LL is declining. Energy costs have been budgeted to decrease slightly. Vehicle fuel, parts and labor costs are projected to decrease for this division. Allocations for property and liability insurance and for vehicle lease increase for this division, while allocations for General Overhead expense and IT Services decrease. Debt Service reflects Airport improvement bonds of 2005 and 2010. Capital projects include the West Ramp Rehabilitation, design of runway 14/32 and property acquisition/easements, requiring a total local match of $597,500.