FENWICK ISLAND – Town officials last week voted to approve a $2 million-plus budget for fiscal year 2023.
Last Friday, the Fenwick Island Town Council voted 7-0 to accept the proposed fiscal year 2023 budget with $2.14 million in projected revenues and $2.44 million in projected expenses.
“Between those two, the projected net operating loss, which is revenues less the expenses, results in an operating loss of $295,000 for the fiscal 2023 budget, compared to a projected loss of roughly $379,000 in the budget for the year ending in the next six weeks,” said Councilman Bill Rymer, town treasurer. “So on a positive note, we are now projecting an operating loss that is roughly 22% lower than what the town council projected going into fiscal 2022.”
Rymer noted billings to property owners, including property tax, trash collection fees and ambulance fees, contributed to 46% of projected revenues. Other major revenue categories, he noted, include building fees and rental tax.
“When you look at the budget, 81% of our revenues come from these three categories …,” he said. “What you also see is a budget that is pretty consistent on those smaller revenue line items.”
Rymer added personnel costs, including salaries, benefits and taxes, made up 74% of the coming year’s expense budget. He said that included pay raises and promotions.
“The budget committee proposed a 4.5% raise and a couple of proposed promotions,” he said. “That’s reflected in the budget.”
Under capital expenditures, Rymer noted the town had budgeted $650,000 for sidewalks, $96,000 for new police vehicles, $70,000 for street maintenance and $100,000 for dredging consulting fees, to name a few projects. He added that the town expected to have nearly $3.6 million in cash reserves at the end of the fiscal year to cover the operating loss, capital spending and more.
After further discussion, the council voted unanimously to accept the proposed budget for fiscal year 2023.
The council last week also voted to adopt its fee schedule for the coming fiscal year, as well as establish a second banking relationship with Calvin B. Taylor Bank.
“The finance committee approved for council consideration the development of a second banking relationship with Taylor Bank of Berlin as a safeguard for managing the town’s funds …,” said Councilman Paul Breger, committee chair. “Right no,w we have one bank that handles all of our major deposits, that’s Bank of Ocean City. And the subcommittee felt that it would be safer for the town to develop a second relationship with a strong entity.”
