TOWN OF OCEAN CITY

FISCAL YEAR 2021 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. FY 21 bus passenger revenue has been budgeted to decrease $191,417 to $2,551,283, and reflects that the Park and Ride will be free except for during certain Special Events. The level of funding for bus passenger revenue reflects the actual passenger revenue collected in FY 18 and FY 19 adjusted for the loss of the Park and Ride revenue of approximately $80,000 each year. Projected revenue from bus advertising is $250,000, an increase of $10,000. Tram fare was increased to $4.00 each way seven days a week in FY 20. Projected tram revenue is $1,536,293 for FY 21. Tram advertising has been estimated at $78,000. A County grant of $80,000 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 $116,588 for FY 21.

 

PERSONNEL CHANGES:

Since FY ’09, four full-time positions were eliminated in this division. Thirteen full-time employees have been funded in FY 21. A step increase effective January 1, 2021 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 in FY 20. 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 $1,700,449, an increase of $15,678 from FY 20. Tram part-time salaries increase, and include an additional Lead Supervisor position. All wages reflect changes to the pay table as a result of minimum wage increases. The allowance for Police officers to patrol the buses has been increased from $45,000 to $50,000. Budgeted hours for the operation of the medical transport program continue to be included. In Employee benefits, group insurance and pension increase, while retiree health, worker’s compensation and unemployment decrease. Unemployment accounts for $480,000 of the Employee Benefits line item for FY 21. $1,600 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. Year-round local advertising was discontinued at $14,000, while seasonal marketing has been included at $6,170. Credit card fees were increased $7,500 for the Tram division. $48,000 has been included to re-shingle the roofs at the North station and the Park and Ride building. The funds for the roof replacement will be taken from Transportation fund balance. A preventive maintenance contract was included for the machines in the money room and for the bus wash equipment. Operational Supplies are funded at $61,185. Supply items include oil and diesel exhaust fluid, and general supplies for daily bus operations. A replacement money room bill sorter has been funded at $4,000. Energy costs increase due to the new Tram storage facility at 2nd street. Vehicle fuel is a major expense for this department and is budgeted at $679,714. Parts and labor for the bus division have been budgeted at $1,261,000, a reduction of $122,500. Grant funds in the amount of $480,000 have been requested to offset the maintenance costs. Intragovernmental allocations for radio equipment lease, IT, Vehicle Lease and insurance increase for this division, while the allocation for General Overhead expense decreases. 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 a replacement paratransit van, which will be purchased using funds from Transportation’s fund balance.