TOWN OF OCEAN CITY

FISCAL YEAR 2022 ADOPTED BUDGET

AIRPORT FUND

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BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

Anticipated fuel sales are based on the average number of gallons sold for the past five years. The estimated number of gallons of both Jet Fuel and 100 LL were decreased slightly from the FY 21 estimate. Wholesale costs for both types of fuel are projected to decrease, so the resale price has also been reduced. T-Hangar rental fees are increased on a biannual basis and were 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 remain the same. 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. $4,018,500 in State and Federal grants are anticipated for the FY 22 budget. This represents 90% Federal, 5% State and 5% local match for phase 2 of the runway 14/32 project. The General Fund subsidy of the Airport increases $81,415, from $313,171 to $394,586. The FY 22 subsidy includes $183,086 for operations, and $211,500 for the Town’s local match for Runway 14/32.

 

PERSONNEL CHANGES:

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, 2022 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 retiree health and pension are projected to increase, while unemployment is 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 decrease $1,000, and legal fees are anticipated to decrease $2,500. Both building and equipment maintenance estimates decrease for FY 22, with an overall reduction of $16,348. The NavAid service contract will be included in the commissioning contract for the new localizer and covered 100% by an FAA grant for the next three years, saving the Town $12,000 annually. Concrete crushing has been included at $90,000. Mowing of the fields surrounding the airport has been included at a cost of $22,912. The number of field cuttings was increased from 12 to 16 per year, at an increased cost of $5,728. Other expenses included in Contracted Services include maintenance of the field lighting, $10,000, and Airport hangar door preventive maintenance, $6,000. Supplies and Materials decrease as the replacement of 66 fire extinguishers at a cost of $11,640 was completed in FY 21. Purchases for Resale fuel purchase costs are the primary expense of the Airport fund. Fuel purchases are budgeted at $332,500 for the coming year, a decrease of $97,414, due to anticipated decreases in the costs of both types of fuel. The number of gallons of both types of fuel decreased slightly from the FY 21 estimate. Energy costs are expected to decrease. Vehicle fuel and vehicle maintenance costs are projected to decrease for this division. Allocations for IT Services, property and liability insurance, and radio equipment lease increase, while allocations for Vehicle lease and General Overhead decrease. Capital Outlay includes phase 2 of Runway 14/32 improvements at $4,230,000.