CONVENTION CENTER FUND & MUSEUM

TOWN OF OCEAN CITY

FISCAL YEAR 2022 ADOPTED BUDGET

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BUDGET HIGHLIGHTS:

REVENUE CHANGES:

Budgeted revenue for Hall Rental and rental of the Performing Arts Center decrease $20,000 in FY 22. Special Events revenue includes $59,000 anticipated from the Holiday Shopper’s Fair, and $41,000 for city- sponsored events to be held in the Performing Arts Center. Revenue estimates for Concession Revenue and Service Charges increase $5,000. Sales/Other reflects membership dues for the Convention & Visitor’s Bureau and is expected to remain level. Food & Beverage Tax generated goes toward the retirement of debt for the Convention Center expansion. The rate was reduced from 1% to ½% in FY 10. Food & Beverage Tax is anticipated to generate $1,450,000 that will go toward debt retirement in FY 22. $200,000 will go into a fund for capital improvements at the Convention Center. The State Operating grant will increase $106,086 and the General Fund subsidy is also budgeted to increase $106,088.

PERSONNEL CHANGES:

Thirty-four full-time positions are funded in FY 22. Six positions have been eliminated since FY 09. In the FY 15 budget, one part-time Maintenance Worker position was converted to full-time. In FY 16, the Sales Director position was replaced with a Sales Manager position, and one additional Maintenance Worker II position was included as well. In the FY 19 budget, a sales position was eliminated and replaced with a Maintenance Worker position. A step increase effective January 1, 2022 has been included. Wage adjustments due to the increase in minimum wage have also been included. The Museum division employs two full-time employees. Part-time and seasonal positions are used by both the Convention Center and the Museum. Fourteen part-time, year-round Maintenance Workers and one part-time Event Coordinator are utilized by the Convention Center, while three Museum Aides and an Office Associate are funded in the Museum division. In addition, staffing of the Welcome Center at the Convention Center has been included at $11,496. Overtime in the Maintenance division is funded at $75,000. Projected costs for retiree health and retirement increase, while worker’s compensation is projected to decrease.

CHANGES IN OPERATIONS:

Contracted Services increase in FY 22, and include travel, credit card fees, dry cleaning and advertising. In FY 22, $41,000 has been included for potential city-sponsored events held in the Performing Arts Center. Credit card fees were budgeted at $28,577, and a Comcast fiber contract was included at $21,312. One-time costs and onboarding fees to transfer the Ungerboeck software to the Cloud have been included at $67,710. After the onboarding in FY 22, the annual cost will decrease to $33,560. Maintenance costs account for $338,329 of the Convention Center budget. Escalator, elevator, HVAC, and equipment repair are budgeted at $270,579. HVAC repairs recommended by the Public Works Facilities Manager totaling $112,500 will be paid for from the capital maintenance fund. Building maintenance accounts for another $67,750. A sound system maintenance contract is included at $20,000. Overall maintenance costs decrease $22,297. In the Museum budget, routine building maintenance has been included at $16,271. Operational supplies for the Convention Center include costs for such items as exhibit decorating materials, supplies to clean and maintain the building, aisle and booth carpet, and replacement AV equipment. Replacement seats and backs for 200 folding chairs has been funded at $9,630. Energy costs for the Convention Center are budgeted to decrease $70,000 in FY 22 due to the Town’s solar energy contract. Vehicle maintenance costs are expected to increase. Intragovernmental allocations for radio equipment lease, property insurance and General Overhead increase. Debt Service includes principal and interest on the 2013 and 2018 bonds and the Energy Performance Lease. Food and Beverage tax receipts and interest will be used to pay the debt service on the bonds. Prior year food tax reserves will also be used to cover the interest and principal payments. Transfer to Reserves includes $200,000 to be set aside for the capital reserve fund.