SERVICE CENTER FUND & IMPOUND LOT
TOWN OF OCEAN CITY
FISCAL YEAR 2023 PROPOSED BUDGET
Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that both gasoline and diesel fuel rates will increase from the rates budgeted in FY 22. Gallons of both types of fuel are anticipated to remain level in FY 23. Overall fuel revenue is anticipated to increase $57,934. Parts revenue is projected to remain level for FY 22. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has been budgeted to decrease for FY 23.
Nineteen full-time employees are funded in the Service Center budget and there are two full-time positions in the Impound Lot. A step increase effective on January 1, 2023 has been included. Wages for a seasonal warehouse employee were deleted in FY 22, but funding has been continued for a seasonal vehicle technician. In the Impound Lot division, funding remains at $16,650 for seasonal employees. Allocations for health insurance, retirement, and worker’s compensation decrease for this division. No contribution for retiree health (OPEB) has been funded in FY 23. A tool allowance of $500 per mechanic has been included in the Service Center budget.
CHANGES IN OPERATIONS:
Contracted Services expenses are expected to increase $17,506. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes National Institute of Governmental Purchasing courses for Purchasing staff and automotive training and certification for the mechanics. Building and equipment maintenance costs are projected to increase $17,813, which includes fuel depot maintenance, inspection and repairs and software maintenance for the fuel program. Tipping fees for tire disposal have been included at $2,000. Supplies and Materials remain level. The FY21 budget included the purchase of a truck tire changer and five hose reels for the fleet garage at a total cost of $28,110. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to increase in FY 23, leading to an increase in the estimate of fuel purchases of $42,080. Estimates of inventory for parts and supplies has been budgeted to remain level for FY 23. Energy costs for this department are anticipated to increase. Intragovernmental allocations for IT Services, insurance and vehicle lease increase for this division, while the allocation for General Overhead expense decreases.