City Council sized up a $71.7 million Ocean City budget during a public workshop on Thursday and set to work to trim it before a spring deadline.
The draft budget asks for $44.9 million from local taxpayers — a 2.89 percent increase in its current form.
Thursday's workshop included a presentation on the expense side of the budget by Finance Director Frank Donato.
See
budget summary on the city website for more detail, but here are some of the major elements:
- Pension Contributions: $4.1 million for employee pensions. Costs have stabilized (down 1.4 percent for 2014) since the city was required to fully fund pension obligations in 2008.
- Health Insurance: $7 million for employee health benefits. Costs have fluctuated as the city moved from a self-funded plan to a state-sponsored plan to an AmeriHealth plan. But a spike in claims led to a 19 percent increase for 2014. Employees are now paying 20 to 25 percent of their premium costs.
- Debt Service: $9.8 million to pay back loans on road, beach, boardwalk and other capital projects.
- Library: $3.8 million is paid for by a separate state-mandated tax based on a percentage of the city's ratable base.
- Salaries and Wages: $28.6 million for Ocean City's 256 full-time employees (a figure that's down from 2003's 297 full-timers but up by two from 2013). The figure is up by 2.2 percent — based largely on contractual increases.
- Other Expenses: $22.5 million for various operating expenses.
Councilman Pete Guinosso requested an analysis of costs centers. The Ocean City Aquatics and Fitness Center, for instance, brought in more than $1 million in revenue but operated at a $344,888 loss in 2013. The Ocean City Pops Orchestra lost $333,336 in 2013, and the Ocean City Municipal Airport lost $168,559.
The administration asked council to consider the community benefits of the facilities as they consider any potential changes.
Councilman Scott Ping asked the administration to consider using professional grant writers to bring in new revenue on a commission basis — something he said worked successfully in the past.
Councilman Keith Hartzell asked for an analysis of overtime expenses and full-time positions.
Council must approve a final budget by May.
An multiyear project to replace the Ocean City Boardwalk between Fifth and 12th streets is part of $9.8 million a year Ocean City spends in debt service.
