TOWN OF OCEAN CITY

FISCAL YEAR 2020 ADOPTED BUDGET

WATER FUND

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BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

In accordance with the most recent rate study, the metered rate increases to $4.20 per 1,000 gallons, and the fixture rates remain at $1.60 per equivalent fixture. The number of fixtures was under-estimated in FY 19, resulting in an understated revenue estimate. Fixture rates were $2.60 per equivalent fixture in FY 15. Revenue from water connections is expected to decrease in FY 20. 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 $132,300 to fund Water department capital projects. The FY 20 budget does not require use of fund balance.

 

PERSONNEL CHANGES:

Twenty-one full-time positions are included in the Water Fund. A step increase effective January 1, 2020 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 for the use of Public Works’ manpower, has been budgeted at $51,500, a reduction of $6,000 from the FY 19 budget. Deductions have been made from Public Works for like amounts. Overtime costs are estimated to increase $5,750. Decreases are projected for health insurance and worker’s compensation, while retiree health and pension are projected to increase.

 

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 $56,300, a reduction of $24,488 from the FY 19 adopted budget. A rate study to set Water and Wastewater rates for the next five years has been budgeted. Contracted Services includes $100,000 to relocate a generator from 65th street to the 125th street well house. Contract documents and inspection of the 94th street water tower are budgeted at $75,000, an increase of $45,000 over FY 19. The Maintenance line item includes costs for building and equipment maintenance. No tank painting occurred in FY 18, but the FY 19 budget included $250,000 for the 64th street tank painting. The FY 20 budget includes $400,000 for painting the 136th street water tank. Plant building and equipment maintenance have been projected to increase $34,800. HVAC repairs not covered by the contract have been included at $100,000. Routine equipment maintenance, such as well maintenance, has also been included in this category and totals $320,000. Routine well maintenance has been included at $140,000. Inspection and repair of the chlorination equipment has been budgeted at $36,000, and rebuilding of two backwash pumps at the 15th street plant has been included at $40,000. Costs for Supplies and Materials are expected to remain the same in FY 20. Water chemicals are budgeted at $250,673. Supplies for repairs to water pipes, fire hydrants and valves are included at $80,000. Energy costs are expected to decrease in FY 20 and reflect anticipated solar energy rebates. Vehicle fuel has been budgeted at the average number of gallons used for the past two to three years, and is anticipated to increase. Vehicle parts and labor costs are expected to decrease. Intragovernmental allocations increase for General Overhead, IT Services, and Vehicle lease, but decrease for insurance. Debt service costs decrease $161,320 for this fund, as the FY 19 budget included $152,400 for potential property acquisition. Transfer to capital projects includes $200,000 for water main upgrades, $150,000 for the Disinfection By-product project, and $144,291 for the 66th Street Water Treatment plant project. A replacement ½
on 4×4 pickup truck has been funded in Vehicle Trust.