TOWN OF OCEAN CITY

FISCAL YEAR 2018 ADOPTED BUDGET

WATER FUND

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BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

In accordance with the most recent rate study, the metered rate increases from $3.90 to $4.00 per 1,000 gallons, and the fixture rates remain at $1.60 per equivalent fixture. Fixture rates were $2.60 per equivalent fixture in FY 15. Revenue from water connections is expected to decrease. Capacity, or Impact fees were enacted in FY 2005 and were increased to $126 per fixture in the FY 11 budget. Capacity fees are anticipated to result in $98,280 to fund Water department capital projects. The FY 18 budget does not require funding from fund balance in the Water fund.

 

PERSONNEL CHANGES:

Twenty-one full-time positions are included in the Water Fund. A step increase effective January 1, 2018 has been included. Three additional positions are currently shared with the Wastewater Fund. They are: an Office Associate, a Purchasing Technician and a SCADA Technician. Interdepartmental labor has been budgeted at $57,000 for the use of Public Works’ manpower, an increase of $4,500 from the FY 17 budget. Deductions have been made from Public Works for like amounts. Increases are projected for health insurance, retiree health, pension and the allocation for worker’s compensation.

 

CHANGES IN OPERATIONS:

The Contracted Services line item includes professional and contracted services. Professional Services, which include engineering services and tank painting inspection services are budgeted at $97,788, the same level as the FY 17 adopted budget. Demolition and removal of the Worcester Street and 15th Street water towers was also included in the FY 17 budget at $250,000. The Maintenance line item includes costs for building and equipment maintenance. Touch-ups for the 64th street water tower paint were included in the FY 17 budget at a cost of $75,000. The FY 18 budget includes an estimate for the 100th street tank painting at $250,000. Plant building and equipment maintenance have been projected to decrease $37,647. HVAC repairs and maintenance recommended by the Public Works Facilities Manager were included in FY 17 at a cost of $27,000. No similar projects have been requested in FY 18. Routine equipment maintenance, such as well maintenance, has also been included in this category and totals $301,400. Routine well maintenance has been included at $140,000. Inspection and repair of the chlorination equipment has been budgeted at $33,000, and replacement of the variable frequency drives at three well houses has been included at $27,000. Costs for Supplies and Materials are expected to increase in FY 18. Water chemicals are budgeted at $250,673. Supplies for repairs to water pipes, fire hydrants and valves are included at $90,000. Three replacement meter reading devices have been included at $23,501. Energy costs are expected to increase in FY 18. Vehicle fuel has been budgeted at the average number of gallons used for the past two to three years, and is anticipated to increase due to a projected increase in fuel costs. Vehicle parts and labor costs are expected to decrease, partially offsetting the anticipated increase in fuel costs. Intragovernmental allocations increase for General Overhead, IT Services, and Vehicle lease. Debt service costs decrease for this fund. Transfer to capital projects includes $306,499 for water main upgrades and $200,000 for the Disinfection By-product project. An estimated $114,673 will go into Water Reserves to fund future capital projects. A replacement ¾ ton pick-up truck has been funded through the Vehicle Trust Fund.