WATER FUND

TOWN OF OCEAN CITY

FISCAL YEAR 2023 ADOPTED BUDGET

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BUDGET HIGHLIGHTS:

REVENUE CHANGES:

In accordance with the most recent rate study, the metered rate increases to $5.15 per 1,000 gallons, and the fixture rates increase to $1.96 per equivalent fixture. These rate increases generate $368,112 in additional revenue. The estimated number of gallons increase 30,000, increasing revenue estimates an additional $154,500. Revenue from water connections is expected to remain the same in FY 23. 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 $134,568 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, 2023 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. Deductions have been made from Public Works for like amounts. Overtime costs are estimated to increase $8,000 for FY 23. Decreases are projected for health insurance and retirement. Worker’s compensation increases. No funding has been included for retiree health.

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 $121,038, an increase of $41,000 from the FY 22 adopted budget. The FY 23 budget includes inspection and bidding fees in preparation for painting the 42nd street water tower. Contracted Services includes $50,000 for hydrant painting, an ongoing project first funded in FY 21. The Maintenance line item includes costs for building and equipment maintenance. Painting the 42nd street water tank and replacement of rods is included at $700,000. No tank painting was included in FY 21. Plant building and equipment maintenance have been budgeted at $477,823. HVAC repairs not covered by the contract have been included at $30,000. Routine equipment maintenance, such as well maintenance, has also been included in this category and totals $265,964. Routine well maintenance has been included at $120,000. Inspection and repair of the chlorination equipment has been budgeted at $25,000, and repairs to filters, scraper drives, mixers and compressors has been included at $34,000. Costs for Supplies and Materials are expected increase $254,806 in FY 23. Water chemicals are budgeted at $474,228. Supplies for repairs to water pipes, fire hydrants and valves are included at $200,000, an increase of $50,000. Energy costs are expected to increase in FY 23. Vehicle fuel has been budgeted at the average number of gallons used for the past three years, and is anticipated to increase $6,362. Vehicle parts and labor costs are expected to increase as well. Intragovernmental allocations increase for radio equipment lease, IT Services and General Overhead, and decrease for vehicle lease. FY 23’s insurance allocation increases $48,193, mainly for property insurance. Debt service costs increase $297,216 for this fund. Transfer to capital projects includes $450,000 for water main upgrades, $201,000 for the Water Master plan, and $180,000 for design and engineering of Gorman Avenue Architectural upgrades. Two pickup truck replacements have been funded through Vehicle Trust.