TOWN OF OCEAN CITY

FISCAL YEAR 2020 ADOPTED BUDGET

WASTEWATER FUND

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BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

In accordance with the rate study, the rates for wastewater service increase from $9.45 per quarter to $9.60 per quarter, generating $13,150,272 in revenue. Capacity fees are expected to generate $231,000 in FY 20. Capacity fees are used to offset debt service costs for Wastewater department capital projects. Service to West Ocean City is budgeted at $835,000. Actual charges for this service in FY 19 were $811,867. Revenue from plumbing permits decrease, while lab fees are expected to remain level in FY 20. Federal Government grants include the Build America Bond interest subsidy. No funds are required to be taken from Wastewater fund balance to support this budget.

 

PERSONNEL CHANGES:

Forty-six positions are funded in the Wastewater Fund. Three positions are currently shared with Water: an Office Associate, the Purchasing Technician and a SCADA Technician. A step increase effective January 1, 2020 has been included. Overtime costs are anticipated to increase $13,400 in FY 20. Benefit costs for health insurance, worker’s compensation and unemployment decrease, while retirement and retiree health increase.

 

CHANGES IN OPERATIONS:

Contracted Services include services provided by professional architects and engineers and tipping fees.  A rate study to determine Water and Wastewater rates for the next five years has been funded. Potential engineering fees were reduced $24,500 from the FY 19 budget. A SCADA fiber optics upgrade and a graphics panel display upgrade were included in FY 19 at $64,500. Tipping fees and land application disposal fees are funded at the same level in FY 20, and have been included at $422,750. Permit fees paid to the Maryland Department of the Environment have been budgeted at $6,500. Building maintenance has been budgeted at $251,880, and includes replacement of three roofs at a cost of $115,350, and replacement rollup doors on the Biosolids building at a cost of $21,356. Plant equipment maintenance has been budgeted at $503,000, a decrease of $71,580. Fournier press maintenance, primary thickener valve replacement, oases relief valve repairs and oases D.O. meter replacement have been funded in the Plant division. Supplies and Materials decrease $12,590 from FY 19. Approximately $756,199 of this line item is budgeted to purchase chemicals for wastewater treatment. Lime is included at $175,000 and sodium hypocholorite is included at $235,000. Energy costs have been budgeted to increase. Vehicle fuel increases and repair cost estimates decrease for this department. Intragovernmental allocations for vehicle lease and insurance decrease, while General Overhead expense and IT Services increase for this fund.  Debt service decreases in FY 20. Transfer to capital projects includes $365,000 for phase III disinfection, $685,969 for the Cure in Place project, $700,000 for wastewater main repairs, $75,000 for ocean outfall diffuser repairs, $200,000 for treatment plant concrete repairs, and $350,000 for design and engineering of the Secondary clarifier 2,3 and 4 rehabilitation. A ¾- ton 4×4 pickup was funded through Vehicle Trust for this division.