TOWN OF OCEAN CITY
FISCAL YEAR 2020 ADOPTED BUDGET
Anticipated fuel sales are based on the average number of gallons sold for the past four years. The average number of gallons of Jet fuel remained the same, while the gallons of 100 LL decreased. Per gallon costs for both types of fuel are projected to increase. T-Hangar rental fees are increased on a biannual basis and will be increased in FY 20. 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 decrease. Revenue from this operation is shown in the Service Charges line item. Prior year revenue from the crushing operation will be recognized in FY20 and used to fund hangar painting at $120,000. No Federal or State grant funds were included in the FY 20 budget. The Town has applied for a 100% grant for construction costs for Runway 14/32. If the Town is not approved for these grant funds, the project will be funded in FY 21 at 90% Federal, 10% State and 10% local match. Miscellaneous revenue shown in FY 18 was payment from Delmarva Power for staging equipment at the Airport. The General Fund subsidy of the Airport increases $54,929, from $635,486 to $690,415. Included in the subsidy is $498,000 to cover a balloon payment on the Airport improvement bonds of 2010.
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, 2020 has been included. Two part-time, year-round Office Associates and two seasonal line technicians are employed by this division. Three hundred additional hours have been included for the line technicians at a cost of $5,451. Wages also reflect the increase in minimum wage to $11/hour. Benefit costs for health insurance, 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 increase $1,000. A replacement heat pump for the main terminal 2nd floor office was funded in FY 18. Both building and equipment maintenance estimates decrease for FY 20. Equipment maintenance decreases $1,800, while building maintenance decreases $1,122. Concrete crushing has been included at $67,500, a decrease of $7,500 from the FY 19 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. Purchases for Resale fuel purchase costs are the primary expense of the Airport fund. Fuel purchases are budgeted at $422,995 for the coming year, an increase of $43,085, and an anticipated increase in the costs of both types of fuel. The number of gallons of jet fuel remained the same, while the number of gallons of 100LL decreased by 3,000 gallons. Energy costs are expected to remain the same. Vehicle fuel is projected to decrease, while vehicle maintenance costs are projected to increase for this division. Allocations for IT Services, property and liability insurance and vehicle lease decrease for this division, while the allocation for General Overhead increases. Debt Service reflects Airport improvement bonds of 2005 and 2010, and includes the balloon payment due on the 2010 bonds. Hangar painting of units A through D have been included at $120,000.