AIRPORT FUND

TOWN OF OCEAN CITY

FISCAL YEAR 2023 ADOPTED BUDGET

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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 Jet Fuel were increased, but the number of gallons of 100 LL were decreased from the FY 22 estimate. Wholesale costs for both types of fuel are projected to increase, so the resale price has also been increased. T-Hangar rental fees are increased on a biannual basis and were increased in FY 22. A one month rent holiday has been included due to runway 14/32 construction. 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 due to construction. Revenue from this operation is shown in the Service Charges line item. $4,940,000 in State and Federal grants are anticipated for the FY 23 budget. This represents 90% Federal, 5% State and 5% local match for the next phase of the runway 14/32 project. The General Fund subsidy of the Airport decreases $73,131, from $394,586 to $321,455. The FY 23 subsidy includes $61,455 for operations, and $260,000 for the Town’s local match for Runway 14/32.

PERSONNEL CHANGES:

Three full-time employees are budgeted in this division. A step increase effective January 1, 2023 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 approved by theCouncil for FY 22 and FY 23. Benefit costs for retirement, health insurance and unemployment decrease. No contribution for retiree health has been budgeted in FY 23.

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, and $5,000 has been included to cover miscellaneous fees for land acquisition consultation and review. Building maintenance expenses increase due to the replacement of two heat pump systems in the Maintenance Hangar. Concrete crushing has been included at $120,000. 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 in FY 22, 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 increase and include replacement lobby furniture. Sixty-six fire extinguishers were replaced in FY 21 at a cost of $11,640. Purchases for Resale fuel purchase costs are the primary expense of the Airport fund. Fuel purchases are budgeted at $414,600 for the coming year, an increase of $82,100, due to anticipated increases in the costs of both types of fuel. The number of gallons of 100LL decreased 7,000 gallons from FY 22’s estimate. Energy costs are expected to remain level. Vehicle fuel and vehicle maintenance costs are projected to increase for this division. Allocations for property and liability insurance, radio equipment lease and Vehicle Lease increase, while allocations for IT Services and General Overhead decrease. Capital Outlay includes the next phase of Runway 14/32 improvements at $5,200,000.