TOWN OF OCEAN CITY

FISCAL YEAR 2022 PROPOSED BUDGET

WATER FUND

Print/Download Data Summary

BUDGET HIGHLIGHTS:

 

REVENUE CHANGES:

In accordance with the most recent rate study, the metered rate increases to $4.81 per 1,000 gallons, and the fixture rates increase to $1.83 per equivalent fixture. These rate increases generate $571,968 in additional revenue. Revenue from water connections is expected to remain the same in FY 22. 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 $128,520 to fund Water department capital projects.

 

PERSONNEL CHANGES:

Twenty-one full-time positions are included in the Water Fund. A step increase effective January 1, 2022 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 $60,000, an $8,500 increase from FY 21. Deductions have been made from Public Works for like amounts. Overtime costs are estimated to remain level for FY 22. Decreases are projected for health insurance and worker’s compensation, while pension and retiree health 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 budgetedat $78,800, a reduction of $53,200 from the FY 21 adopted budget. The FY 21 budget included inspection and bidding fees in preparation for painting the 94th street water tower. Contracted Services includes $50,000 for hydrant painting, an ongoing project first funded in FY 21. Perimeter fencing around the 100th street pump station was also included in the FY 21 budget at $75,000. The Maintenance line item includes costs for building and equipment maintenance. Painting the 94th street water tank is included at $325,000. No tank painting was included in FY 21. Plant building
and equipment maintenance have been budgeted at $433,892. HVAC repairs not covered by the contract have been included at $34,000. Routine equipment maintenance, such as well
maintenance, has also been included in this category and totals $297,964. Routine well maintenance has been included at $140,000. Inspection and repair of the chlorination equipment has been
budgeted at $36,000, and repairs to filters, scraper drives, mixers and compressors has been included at $34,000. Costs for Supplies and Materials are expected increase $58,745 in FY 22.
Water chemicals are budgeted at $267,922. Supplies for repairs to water pipes, fire hydrants and valves are included at $150,000, an increase of $68,000. Energy costs are expected to decrease in FY 22. Vehicle fuel has been budgeted at the average number of gallons used for the past three years, and is anticipated to decrease slightly. Vehicle parts and labor costs are expected to increase. Intragovernmental allocations increase for radio equipment lease, insurance and General Overhead, and decrease for IT Services and vehicle lease. Debt service costs decrease $66,698 for this fund. Transfer to capital projects includes $700,000 for water main upgrades, $125,000 for the Disinfection By-product project, and $354,204 for the 66th street Water plant.