TOWN OF OCEAN CITY

FISCAL YEAR 2021 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 $4.50 per 1,000 gallons, and the fixture rates increase to $1.70 per equivalent fixture. Fixture rates were $2.60 per equivalent fixture in FY 15. Revenue from water connections is expected to remain the same in FY 21. 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 $109,620 to fund Water department capital projects. The City Manager proposed budget included $38,378 in funding for a lighting retrofit project, which was not included in the Council Adopted budget.

 

PERSONNEL CHANGES:

Twenty-one full-time positions are included in the Water Fund. A step increase effective January 1, 2021 has been funded. 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, the same level as FY 20. Deductions have been made from Public Works for like amounts. Overtime costs are estimated to remain level for FY 21. Decreases are projected for health insurance and retiree health, while pension and worker’s compensation 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 $132,000, a reduction of $4,000 from the FY 20 adopted budget. A rate study to set Water and Wastewater rates for the next five years was budgeted in FY 20. Contracted Services includes $50,000 for hydrant painting, and $75,000 for perimeter fencing around the 100th Street pump station. Contract documents and inspection of the 94th street water tower are budgeted at $75,000. The Maintenance line item includes costs for building and equipment maintenance. Painting the 64th street water tank was included in the FY 19 budget at $250,000, while the FY 20 budget included $400,000 for painting the 136th street water tank. No tank painting has been included in FY 21. Plant building and equipment maintenance have been budgeted at $455,758. 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 one backwash pump at the 15th street plant has been included at $40,000. Costs for Supplies and Materials are expected increase $46,898 in FY 21. Water chemicals are budgeted at $250,673. Supplies for repairs to water pipes, fire hydrants and valves are included at $82,000. A ground penetrating radar machine has been funded at $30,000. Energy costs are expected to increase in FY 21. Vehicle fuel has been budgeted at the average number of gallons used for the past two years, and is anticipated to increase slightly. Vehicle parts and labor costs are expected to remain the same. Intragovernmental allocations increase for radio equipment lease, insurance and Vehicle lease, but decrease for IT Services and General Overhead. Debt service costs increase $181,312 for this fund. Transfer to capital projectsincludes $450,000 for water main upgrades, $75,000 for the Disinfection By-product project, and $300,000 for mains associated with 66th street Water plant. The Water Fund share of the lighting retrofit project was deleted from Capital Outlay in the Council Adopted budget.