TRANSPORTATION FUND

TOWN OF OCEAN CITY

FISCAL YEAR 2023 PROPOSED BUDGET

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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. FY 23 bus passenger revenue has been budgeted to increase $341,261 to $2,120,369, as ridership and revenue are expected to return to 80% of the FY 19 pre-COVID actuals. Projected revenue from bus advertising is $150,000, a decrease of $50,000. Tram fare was increased to $4.00 each way seven days a week in FY 20. Projected tram revenue has been increased $184,793, to $1,536,193 for FY 23. Tram advertising has been estimated at $15,000, a reduction of $23,000. A County grant of $80,000 for providing service to the West Ocean City Park and Ride has been included. Federal capital grants have been included in FY 23, to cover 80% of the cost of two articulating buses. The remainder of the Corona Virus Response and Relief Supplemental Appropriations Act (CRRSAA) funding and American Rescue Plan funds (ARPA) have been included at $1,907,644. A General Fund contribution of $238,271 has been included towards operations, and a General Fund contribution of $455,000 has been included as a local capital match.

PERSONNEL CHANGES:

Nineteen full-time employees have been funded in FY 23, as six bus driver positions were converted from part-time to full-time. A step increase effective January 1, 2023 has been included for all full-time employees. 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 in FY 20, and has been further reduced to 5 in the FY 23 budget. 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 $1,322,025, a reduction of $83,467 from the FY 22 adopted budget. Wages reflect increases for bus drivers from $15.95/hour to $17.75/hour in 2022 and $18.45/hour in 2023. Tram part-time salaries increase as well, reflecting wage increases for tram drivers from $12.65/hour to $15.65/hour in 2022 and $15.91/hour in 2023. Other staff in the tram division received increases from $11.75/hour to $15.00/hour. The allowance for Police officers to patrol the buses is funded at $30,000. Budgeted hours for the operation of the medical transport program continue to be included. In Employee benefits, group insurance, retirement and worker’s compensation increase, while Unemployment decreases. Unemployment accounts for $440,000 of the Employee Benefits line item for FY 23. Recruitment and retention incentives have been funded at $95,600.

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 $44,575. Seasonal marketing for the bus division has been included at $10,770. Credit card fees were budgeted at $39,100 for the Tram division, an increase of $19,100. Operational Supplies are funded at $73,516. Supply items include oil and diesel exhaust fluid, and general supplies for daily bus operations. A replacement money room coin sorter has been funded at $16,000. Energy costs decrease $1,000 for FY 23. Vehicle fuel is a major expense for this department and is budgeted at $501,580. Parts and labor for the bus division have been budgeted at $1,020,000, a reduction of $137,000. All vehicle expenses will be submitted under the FTA/MTA preventive maintenance grant in FY 23. Intragovernmental allocations for radio equipment lease, and insurance increase for this division, while the allocations for IT Services, Vehicle Lease and General Overhead expense decrease. 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 the purchase of two articulating buses, funded with 80% Federal grant funds, and a 20% local match. There is no State participation in FY 23.