TOWN OF OCEAN CITY

FISCAL YEAR 2018 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 $8.95 per quarter to $9.25 per quarter, generating an additional $781,908 in revenue. Capacity fees are expected to generate $171,600 in FY 18. Capacity fees are used to offset debt service costs for Wastewater department capital projects. Service to West Ocean City is budgeted at $844,000 as the actual revenue for FY 17 was $832,433. Revenue from plumbing permits and lab fees are expected to remain level in FY 18. Federal Government grants include the Build America Bond interest subsidy. Wastewater fund balance of $847,019 is necessary to support this budget. When the last rate study was completed, it was anticipated that $1.1 million would come from reserves for FY 18.

 

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, 2018 has been included. Benefit costs for health insurance and pension account for most of the increase in employee benefits.

 

CHANGES IN OPERATIONS:

Contracted Services include services provided by professional architects and engineers and tipping fees. Professional Services include a facility assessment update at a cost of $130,000. Contracted safety training has been included at $10,000 and contracted biomonitoring and toxicity testing has been included at $20,000. Tipping fees and land application disposal fees are projected to remain the same in FY 18, and have been included at $381,900. Permit fees paid to the Maryland Department of the Environment have been budgeted at $6,000. Camera inspection of sewer laterals in conjunction with street paving projects has been included at $65,000. Building maintenance has been budgeted at $232,690, an increase of $35,658 from FY 17, and includes $100,000 in concrete repairs in the plant. In FY 17, a drywell work platform at 2nd street was funded at $28,000. Plant equipment maintenance has been budgeted at $212,250, a reduction of $36,650 and covers routine maintenance. Supplies and Materials increase $55,325 from FY 17. Approximately $676,927 of this line item is budgeted to purchase chemicals for wastewater treatment. Costs for lime and polymer increase nearly $88,000, to a total cost of $304,304. Sodium hypochlorite is included at $235,000, and sodium bisulfite at $52,900. Supplies necessary for the SCADA radio system upgrade have been included at $24,080. Energy costs have been budgeted to decrease. Vehicle fuel and repair cost estimates were reduced for this department. Intragovernmental allocations for IT Services, General Overhead, Vehicle Lease and Insurance increase. Debt service in FY 18 decreases. Capital outlay includes $60,000 to replace the East primary clarifier drive, $32,000 to replace the third of three pumps at Montego Bay, and $50,000 to renovate the lab. Transfer to capital projects includes $1,960,000 for the Cure In Place pipe project and $900,000 for Main repair, which includes $100,000 for the Public Safety/Emergency Operations sewer bypass on 65th street. No vehicles were funded through Vehicle Trust for this division.