TOWN OF OCEAN CITY

FISCAL YEAR 2019 PROPOSED 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 19 bus revenue has been budgeted at the FY 17 actual level, which is a reduction of $145,500 from the FY 18 adopted budget. Projected revenue from bus advertising is $260,000. Tram fare will continue to be $3.00 one-way seven days a week. Projected tram revenue is $1,283,500 for FY 19, and includes a proposal to offer tram service during the Spring Cruisin’ event as well as the week after Labor Day and during Bikefest. Tram advertising has been included at $78,000. 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 $139,361 for FY 19.

 

PERSONNEL CHANGES:

Since FY ’09, four full-time positions were eliminated in this division. Thirteen full-time employees have been funded in FY 19. A step increase effective January 1, 2019 has been included. In FY 18, one full-time bus driver position was converted to a full-time Dispatch position. A request was made to convert one full-time bus driver position to a full-time Money Room Supervisor, but the conversion was not approved. Two seasonal supervisors will continue to manage the money room operation. Nearly 200 seasonal employees are employed by this department. Part time salaries in the bus division are funded at $1,706,557. The recent pay table adjustment increased salaries by $41,245 in this fund. Tram part-time salaries were increased $2,573 to cover Saturday and Sunday of Spring Cruisin’ weekend. The allowance for Police officers to patrol the buses has been increased from $35,000 to $38,000. Budgeted hours for the operation of the medical transport program continue to be included. In the Employee benefits category, health insurance increases, while retiree health, pension and unemployment are projected to decrease. Unemployment accounts for $540,000 of the Employee Benefits line item for FY 19.

 

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 Transit Manager. This training is reimbursable through MTA’s RTAP program. Year-round local advertising has been included at $14,000. Credit card fees were decreased $1,000 for the Tram division. Operational Supplies are funded at $56,115. Marketing materials for the Tram division has been included at $500. Other supply items include oil and diesel exhaust fluid. Energy costs are estimated to increase 2%. Vehicle fuel is a major expense for this department and is budgeted at $678,761. Parts and labor for the bus division have been budgeted at $1,579,500. Grant funds in the amount of $480,000 have been requested to offset the maintenance costs. Overall, costs for vehicle fuel and vehicle maintenance increase $2,750. Intragovernmental allocations for Vehicle Lease, IT services, general overhead, and insurance all decrease for this division. Vehicle lease includes a $150,000 “place holder” for the purchase of replacement boardwalk tram coaches and jeeps. 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 19 budget.