TOWN OF OCEAN CITY
FISCAL YEAR 2019 ADOPTED BUDGET
Anticipated fuel sales are based on the average number of gallons sold for the past three years. The average number of gallons of both types of fuel has decreased. Per gallon costs for both types of fuel are projected to increase. T-Hangar rental fees are increased on a biannual basis and were increased in FY 18. 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. Federal and State grants for Runway 14/32 design have been included at a 90% Federal, 5% State, 5% local match. State grants have been included for environmental mitigation/obstruction removal and non-tidal mitigation. Both projects are funded 75% State and 25% local match, with a total cost of $2,000,000. Miscellaneous revenue shown in FY 17 and FY 18 was payment from Delmarva Power for staging equipment at the Airport. The General Fund subsidy of the Airport decreases $172,954, from $808,440 to $635,486. Included in the subsidy is $421,611 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, 2019 has been included. Two part-time, year-round Office Associates and two seasonal line technicians are employed by this division. Benefit costs for retiree health and pension are projected to decrease, while unemployment is projected to increase.
CHANGES IN OPERATIONS:
Contracted Services include professional services, building and equipment maintenance, credit card fees and other services. Credit card fees and legal fees are anticipated to decrease. A replacement heat pump for the main terminal 2nd floor office was funded in FY 18. Equipment maintenance increases $5,068 and includes maintenance on the fuel pumps. Concrete crushing has been included at $75,000, an increase of $33,000 from the FY 18 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 $380,910 for the coming year, an increase of $5,410, and an anticipated increase in the costs of both types of fuel. The number of gallons of both types of fuel have decreased. Energy costs have been budgeted to increase slightly. Vehicle fuel is projected to increase, while vehicle maintenance costs are projected to decrease for this division. Allocations for General Overhead and for vehicle lease increase for this division, while allocations for property and liability insurance and IT services decrease. Debt Service reflects Airport improvement bonds of 2005 and 2010. Capital projects include the design of runway 14/32 and environmental mitigation and non-tidal mitigation for runway 14/32. Design of Hangar K was proposed, but delayed to a future year.