TOWN OF OCEAN CITY

FISCAL YEAR 2022 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. FY 22 bus passenger revenue has been budgeted to decrease $765,175 to $1,786,108, in anticipation of continued effects of COVID on public Transportation. Projected revenue from bus advertising is $200,000, 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 reduced $184,793, to $1,351,500 for FY 22 in anticipation of the effects of COVID on ridership. Tram advertising has been estimated at $38,000. A County grant of $80,000 for providing service to the West Ocean City Park and Ride has been included. Federal and State operating and capital grants have not been included in FY 22, as funds are available through the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) that should cover 100% of the operating loss of the Bus division in FY 22. No General Fund contribution is necessary in FY 22, saving the Town $1,387,206 over the FY 21 budgeted amount.

 

PERSONNEL CHANGES:

Since FY ’09, four full-time positions were eliminated in this division. Thirteen full-time employees have been funded in FY 22. A step increase effective January 1, 2022 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 $1,405,492, a reduction of $294,957 from the FY 21 adopted budget. Tram part-time salaries decrease as well, in anticipation of reduced ridership due to COVID. All wages reflect changes to the pay table as a result of minimum wage increases. 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, retiree health and pension increase, while FICA and worker’s compensation decrease. Unemployment accounts for $480,000 of the Employee Benefits line item for FY 22. $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. Seasonal marketing for the bus division has been included at $8,200. Credit card fees were budgeted at $20,000 for the Tram division. Re-shingling of the roofs at the North station and the Park and Ride building were included in the FY 21 budget at $48,000. No similar maintenance has been funded in FY 22. A preventive maintenance contract was included for the machines in the money room and for the bus wash equipment. Operational Supplies are funded at $62,016. 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, and the new facilities at 65th street. Vehicle fuel is a major expense for this department and is budgeted at $558,815. Parts and labor for the bus division have been budgeted at $1,157,000, a reduction of $104,000. All vehicle expenses will be submitted under the CRRSAA grant and not under the FTA/MTA preventive maintenance grant in FY 22. Intragovernmental allocations for radio equipment lease, Vehicle Lease and insurance increase for this division, while the allocations for IT Services 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 an articulating bus, purchased through the VW mitigation fund. The VW Mitigation fund will cover 80% of the cost of the bus, while the local match will be covered by bus advertising revenue.