TOWN OF OCEAN CITY

FISCAL YEAR 2018 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 18 bus revenue has been budgeted at the FY 16 actual level, which is a reduction of $176,352 from the FY 17 adopted budget. Projected revenue from bus advertising is $253,000. Tram fare will continue to be $3.00 one-way seven days a week. Projected tram revenue is $1,275,000 for FY 18, which includes revenue for extending the tram season the week after Labor Day and for several days during Bikefest. Tram advertising has been included 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 the purchase of two transit buses, and reimbursement for preventative maintenance on the buses. The General Fund contribution to Transportation decreases $81,050 for FY 18, and includes an allocation of $200,000 towards the purchase of replacement boardwalk trams.

 

PERSONNEL CHANGES:

Since FY ’09, four full-time positions were eliminated in this division. Thirteen full-time employees have been funded in FY 18. A step increase effective January 1, 2018 has been included. Nearly 200 seasonal employees are employed by this department. Part-time salaries for the money room were increased $22,187 to match the actual expense for FY 15 and FY 16. Part time salaries in the bus division were decreased $35,535 to a level slightly higher than the FY 16 actual. Tram part-time salaries were increased slightly. The allowance for Police officers to patrol the buses has been increased from $30,000 to $35,000. Budgeted hours for the operation of the medical transport program have also been included. In the Employee benefits category, costs for health insurance, retiree health, pension and unemployment are projected to increase. Unemployment accounts for $558,000 of the Employee Benefits line item for FY 18.

 

OPERATIONAL CHANGES:

Contracted Services include building and equipment maintenance, printing, dues and credit card fees. The FY 16 budget included $22,500 for repairs to the South end tram station. Attendance at the APTA conference has been included for the Manager and the Administrative Manager. This training is reimbursable through MTA’s RTAP program. Campaign media recruiting has been included at $3,850. Credit card fees were increased $8,000 for the Tram division. Operational Supplies included replacement currency counters in FY 15 and FY 16, which were covered by 90% grant funding. Marketing materials for both the Tram and Bus divisions have been included at $1,250. Other supply items include oil and diesel exhaust fluid. Energy costs decrease 4%. Vehicle fuel is a major expense for this department and is budgeted at $813,111, an increase of $92,451, due to projected increases in fuel costs. Parts and labor for the bus division have been budgeted at $1,310,000, a decrease of $65,000. Grant funds in the amount of $706,500 have been requested to offset this cost. This grant request is $166,500 more than the amount requested in FY 17. Intragovernmental allocations for General Overhead, Vehicle lease,and IT Services increase. Vehicle lease includes a “place holder” for the purchase of replacement boardwalk trams in the amount of $200,000. 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. Capital Outlay includes two transit buses budgeted at $467,600 each. 90% of this cost will be covered by FTA/MTA grants if approved.