WASTEWATER FUND

TOWN OF OCEAN CITY

FISCAL YEAR 2023 PROPOSED BUDGET

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BUDGET HIGHLIGHTS:

REVENUE CHANGES:

In accordance with the rate study, the rates for wastewater service remain the same at $9.60 per quarter, generating $13,438,272 in revenue. Capacity fees are expected to generate $234,960 in FY 23. Capacity fees are used to offset debt service costs for Wastewater department capital projects. Service to West Ocean City is budgeted at $767,000. Actual charges for this service in FY 22 were $739,810. Revenue from plumbing permits increase, while lab fees are expected to remain level in FY 23. No Federal grant funds are shown as the bonds with the Build America Bond interest subsidy were refinanced.

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, 2023 has been included. Overtime costs are budgeted at $70,900 in FY 23. Benefit costs for health insurance increase, while retirement decreases. No contribution to retiree health (OPEB) has been funded.

CHANGES IN OPERATIONS:

Contracted Services include services provided by professional architects and engineers and tipping fees. Credit card fees for online customer payments have been included at $26,000. Tipping fees and land application disposal fees increase in FY 23, and have been included at $535,664. Permit fees paid to the Maryland Department of the Environment have been budgeted at $6,000. Building maintenance has been budgeted at $188,181. Included for FY 23 are $30,000 for door/window replacement, $22,000 for HVAC repairs, and a replacement rollup door on the Biosolids building, $25,000. Plant equipment maintenance has been budgeted at $343,960, an increase of $39,010. Secondary influent pump VFD rebuild, oases aerator seal repairs, and Rotork Valve operators were funded in the Plant division in FY 23. Supplies and Materials increase $45,958 in FY 23. Approximately $749,374 of this line item is budgeted to purchase chemicals for wastewater treatment. Lime is included at $165,000 and sodium hypocholorite is included at $180,000. Sodium bisulfite increased to $165,750. Energy cost estimates have been budgeted to decrease. Vehicle fuel and repair cost estimates increase for this department. Intragovernmental allocations for radio equipment lease, insurance, IT Services, and vehicle lease increase for this fund. General Overhead decreases. Debt service increases in FY 23 due to the FY 22 bond issue. Transfer to capital projects includes: $200,000 for force main replacement, $300,000 for main repairs, $443,309 for Primary Influent Building rehabilitation, $2,164,000 for Montego Bay pump station improvements, and $100,000 for ocean outfall inspection and repairs. Two truck/tractors were included in Vehicle Trust at a cost of $150,000 each.