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04/05/2024 OC Today-Dispatch

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OC Today-Dispaatch APRIL 5, 2024

STUBBORNLY LOCAL, EQUALLY INDEPENDENT

Sign up now for new daily newsletter to debut soon. — Page 8

PRICELESS

WaPo, OCPD argue motions PHOTO COURTESY OCEAN CITY BAPTIST CHURCH

SUNRISE SERVICE Hundreds rolled out of bed early on Sunday to view this gorgeous scene, listen to praise music and hear spiritual messages provided by the Ocean City Baptist Church’s annual Easter sunrise service.

Sports complex chase continues

Your Community

Tickets on sale for OC air show

City Council entertaining proposals from facility operations companies Four offers submitted as officials wait to see if state will award the city $250,000 in bond money to help pay for site evaluation and preliminary design work. Officials have yet to acquire property for the facility, but say they want to be ready when they do. — Page 10

Newspaper claims in court police use of force reports are public documents, but city says they contain personnel information. — Page 6

DECATUR PROM NIGHT IS ON: And will be in May at the convention center in Ocean City. — Page 70

Ticket sales for the Aug. 24 and 25 event are underway and include an “Intro Sale Price” ending Mon. — Page 46


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OC Today-Dispatch

APRIL 5, 2024


APRIL 5, 2024

OC Today-Dispatch

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OC floats reduced tax rate in FY25 budget Property owners still may not see savings with higher assessments this year By Bethany Hooper Associate Editor (April 5, 2024) Resort officials are proposing a $168.8 million budget and a reduced tax rate for the coming fiscal year. City Manager Terry McGean and Budget Director Jennie Knapp presented the Mayor and Council this week with the proposed budget for fiscal year 2025. The spending plan, totaling $168,859,445, features additional positions within the police department, step and cost-of-living adjustments for employees, and a tax rate of $0.4426 per $100 of assessed value. “The budget reduces the current property tax rate from .4526 cents per $100 of assessed value, to .4426 cents per $100 of assessed value,” McGean said. “However, to be clear, due to increases in assessments, that is an increase of approximately four cents over what would have been constant yield.” McGean told the council Wednesday the upcoming budget focuses on four priorities – public safety, employee compensation and benefits, tourism and marketing and infrastructure maintenance. McGean noted that the town’s

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workforce has evolved since the pandemic, as the number of part-time positions – particularly within the police and fire departments – has decreased. As a result, overtime has increased by nearly 30,000 hours. Under public safety, McGean said there continues to be a shortage of part-time EMT/paramedic applicants. Adding to staffing challenges, he said, is the elimination of the seasonal officer program, which will end after the summer season. “In order to offset the expected loss of the seasonal officer program, the budget includes funding five new full-time police officers for 12 months beginning July 2024 and five new full-time officers for six months beginning January 2025. In the interim, I would propose a police manpower study be conducted by an independent third party to make recommendations for the reorganization of the department and the number of necessary full-time sworn officers versus civilians. Because this summer we will still be able to utilize seasonal police officers, while the new full-time officers are in the academy, the bulk of the reduction in part-time salaries will not occur until FY26.” McGean said the budget also features a step merit increase for all fulltime employees and a 3% cost-of-living adjustment (COLA) for

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all employees. He noted that both the Fraternal Order of Police and the Ocean City Career Firefighter Paramedics Association also negotiated a 3% COLA in fiscal year 2025. “The budget also maintains various signing and seasonal bonuses offered to critical part-time employees in FY24, along with continuing the overtime pay for beach patrol surf rescue technicians and tram drivers,” he added. The spending plan also proposes a $519,000 increase in the advertising budget and four new full-time positions at the convention center. Officials have also increased the special events budget in preparation for the town’s 150th anniversary celebration, which will occur in the coming fiscal year. Additionally, the budget fully funds the annual street paving and canal dredging projects. McGean said money will also be set aside to refurbish the Boardwalk arch at North Division Street and refresh the Boardwalk comfort stations, among other things. “These are all pay-as-you-go projects,” he said. Knapp said total revenues are estimated to increase $7.3 million in the coming year, mainly as a result of admissions tax, grants, property tax and other sources. She said the proposed

property tax rate would generate an additional $4.67 million for the town. “The Homestead Property Tax Credit is available for the principal residents of a property …,” she added. “And since our tax rate is scheduled to go down for FY25, those people would receive a reduced tax bill.” Officials noted that expenses are also estimated to increase as a result of additional personnel, pay increases and benefits, and more. They noted $4.7 million would be used from fund balance to pay for salary and pension increases and other items. “However, it maintains the 17% reserve fund balance per policy, adds $1.5 million to the capital reserve fund and maintains reserve balances for additional pension and pay increases for in the future,” McGean said. Officials are expected to meet over the next week to review budgets for each of the town’s departments. More information on the proposed budget and each of the budget work sessions can be found on the town’s website, oceancitymd.gov. “I would like to thank all of the department heads and especially Jenny Knapp for working together to prepare what I believe is a very thoughtful and responsible fiscal year 25 budget,” McGean said, “and I look forward to reviewing it in detail during the upcoming meetings.”


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