TOWN OF OCEAN CITY

FISCAL YEAR 2020 ADOPTED BUDGET

TRANSPORTATION FUND

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BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

In February 2011, bus fare was increased from $2 ride-all-day to $3 ride-all-day, or $1 per boarding.In FY 15, the $1 per boarding option was eliminated, resulting in a 17.5% increase in bus revenue. Additional deployments were added in FY 16. FY 20 bus revenue has been budgeted above the FY18 actual level, which is a reduction of $107,068 from the FY 19 adopted budget. Projected revenue from bus advertising is $240,000, a reduction of $20,000. Tram fare will continue to be $3.00 one-way seven days a week. Projected tram revenue is $1,300,000 for FY 20. Tram advertising has been estimated at $81,000. A County grant to cover ½ the deficit for providing service to the West Ocean City Park and Ride has been included. Federal and State operating grants are budgeted at $825,782, the same level since FY 07. Capital grants include reimbursement for preventative maintenance on the buses. The General Fund contribution to Transportation increases $90,766 for FY 20.

 

PERSONNEL CHANGES:

Since FY ’09, four full-time positions were eliminated in this division. Thirteen full-time employeeshave been funded in FY 20. A step increase effective January 1, 2020 has been included. In FY 18, one full-time bus driver position was converted to a full-time Dispatch position. Two seasonal supervisors continue to manage the money room operation. The total number of staff assigned to the money room was reduced from 7.5 employees to 6.5 employees. One of these employees is charged to the Parking cost center, while the remaining employees are charged to Transportation. Nearly 200 seasonal employees are employed by this department. Part time salaries in the bus division are funded at $1,670,027, a reduction of $36,530 from FY 19. Tram part-time salaries are funded at the same level as FY 19. All wages reflect the increase in minimum wage to $11/hour. The allowance for Police officers to patrol the buses has been increased from $38,000 to $45,000. Budgeted hours for the operation of the medical transport program continue to be included. In Employee benefits, worker’s compensation and retiree health increase, while retirement and unemployment decrease. Unemployment accounts for $504,000 of the Employee Benefits line item for FY 20. $3,200 was included to provide reimbursement for DOT physicals and licensing fees for potential new drivers.

 

OPERATIONAL CHANGES:

Contracted Services include building and equipment maintenance, printing, dues, and credit card fees. The annual fees for the bus locator system are included at $44,280. Attendance at the Transportation Association of Maryland conference has been included for two employees. National Transit Institute training has also been included for the Administration Manager and the Operations Manager. Year-round local advertising has been included at $14,000, while seasonal marketing has been included at $6,500. Credit card fees were increased $1,500 for the Tram division. $23,800 has been included toreplace the HVAC system at the Park & Ride and to reshingle the roof on the Park & Ride covered bridge. Operational Supplies are funded at $56,555. Supply items include oil and diesel exhaust fluid, and general supplies for daily bus operations. Energy costs are estimated to increase 1.6%. Vehicle fuel is a major expense for this department and is budgeted at $706,229. Parts and labor for the bus division have been budgeted at $1,383,500, a reduction of $96,500. Grant funds in the amount of $480,000 have been requested to offset the maintenance costs. Intragovernmental allocations for Vehicle Lease and insurance decrease for this division, while the allocation for General Overhead expense increases. Vehicle lease includes a one-time reduction of $35,000 to offset the loan payments for the boardwalk tram and jeep purchase. Vehicle lease in the bus division only covers the amount for vehicle insurance costs. Vehicle Lease in the Administrative and Tram divisions includes an amount for vehicle lease and for vehicle insurance. No capital outlay is included in the FY 20 budget.