Ocean City Mayor and City Council Budget Meeting – April 9, 2026

The Mayor and City Council met at 1:00 PM on Thursday, April 9, 2026, for an FY2027 budget meeting. The meeting included a time-sensitive private event approval, approval of the Recreation and Parks fee schedule, and budget presentations from Recreation, Parks, Golf, Special Events, Convention Center, Museum, and Tourism staff. No public comments were offered, and no minutes were available.

Approvals / Consent Calendar

• Private event – Worcester County Humane Society (Boardwalkin' for Pets), April 11, 2026: Approved 4–0 on a motion by Councilmember Matresick, seconded by Secretary Savage. Staff said the item was time-sensitive because the event is scheduled for the coming weekend.
• Recreation and Parks FY2027 fees and charges: Approved 4–0 on a motion by Secretary Savage, seconded by Councilmember Garrick. The fee schedule keeps non-resident program rates at least 20% higher and rental rates at least 25% higher and is intended to cover expenses at a nominal rate to prevent hardship for users.

Public Comments & Testimony

• No members of the public spoke.

Discussion Items

Recreation Administration, Programs, and Parks

• The combined recreation and parks presentation described a responsible budget with a total general fund increase of $258,753, including roughly $66,000 in administration, $130,000 in parks, $62,000 in programs, and a balanced golf fund; $270,000 of the total is from general fund salaries, wages, and benefits.
• Administration expenses are up $93,000, revenue is up $27,500, leaving about a $6,000 general fund increase. Revenue gains include $7,500 from a new kayak concession vendor and about $20,000 from additional tournament rentals, including a Black football tournament, baseball in May, lacrosse in June, and the Seafood Festival moving from September to August. Expense increases include $48,000 in wages and benefits, basketball hoop and East Gym siding repairs, additional cameras at North Side Park, and higher energy and IT costs.
• The programs division presented a net general fund increase of $62,343, with revenue up $66,548 and expenses up $128,891. Revenue gains come from 10 new summer camps, higher youth league and pickleball participation, added sponsorships including OC Recreation and Boosters, and $14,300 in concessions, including a new vending machine at the skate park. Expense increases include $91,541 in salaries and benefits, conversion of a part-time skate manager to a full-time recreation supervisor, added facility-monitor hours, $24,600 in contract services, and $7,871 in supplies. When asked about the conversion cost, staff said the $65,000 figure covered all division salary-benefit changes, while the position itself increased about $55,000.
• The parks budget increases $130,000, with personnel costs rising by almost the same amount. Salaries and wages increase $81,978 from step increases, cost-of-living adjustments, one exceptional achievement award, and part-time salary return, with no change in positions or hours; benefits increase $48,000. Other increases include repairs and maintenance, travel, general supplies, energy, IT, and intergovernmental expenses. Capital outlay decreases by $68,000 because the planned replacement of the 2-to-5-year-old playground at North Side Park is estimated at $200,000 versus the prior $268,000 phase-two project. The transcript says a $600,000 difference, but the cited figures equal a $68,000 difference.
• Combined, the recreation division has a net general fund increase of $128,550.

Golf Course and Eagles Landing Flood Mitigation

• Staff presented a balanced golf budget for FY27, supported by drawing from reserve funds. From November 1 through spring 2027 the course will operate 12 holes while six flood-prone holes are addressed; completion is targeted for May 1, 2027. One hole will be redesigned and raised roughly 3–4 feet in areas; other holes will be graded and drained to reduce tidal flooding. The course will offer 6-hole, 12-hole, and 18-hole rounds, with 18 holes played by repeating six holes twice. Revenue projections account for lost rounds during the closure.
• The golf budget increases by $85,248.27, including $37,955 in salary increases and $23,683 in benefits, with no position changes. Notable expenses are a $35,500 maintenance-building roof replacement and $60,000 to replace the last 400 feet of asphalt cart path, along with landscaping and screening between the course and the Humane Society. Decreases include $24,000 in contracted services and $49,650 in operational supplies because of no new small equipment; vehicle supplies and repair labor are down $2,000.

Special Events, Festivals, and Programming

• Staff described the event strategy as using hotel and short-term rental pacing reports to target weak periods, keeping events self-sustaining and buzzworthy for visitors and residents, and generating tax revenue and economic impact. Staff also said the team must recruit events rather than just take orders.
• Sunfest will mark its 50th year and add Winefest at the Inlet parking lot, to be re-evaluated after the first year. Vendor rearrangement last year generated about $25,000 in additional revenue.
• Winterfest will be open January 1 and 2 instead of closing on December 31, and carriage rides will expand from four nights to eight, including Monday and Tuesday nights when Winterfest is normally closed.
• Springfest paid concerts move to the Performing Arts Center, with about $85,000 in gross revenue collected against roughly $35,000 in talent and vendor expenses. A band switch to The Hubcaps drove about 1,000 ticket sales. A street-painting festival featuring artist Michael Kirby and the Art League will be added, with about 20 vendors and potential to become a standalone event.
• Other event items: a $50,000 calendar-change payment is tied to moving Boardwalk Rock to May; Bike Fest moves one week earlier; fireworks move from Monday nights to Thursday nights and will be tourism-funded; July 4th fireworks receive about $80,000 more for the U.S. 250th anniversary; and planned or proposed events include Summer Beach Safari beach soccer, a summer send-off hot air balloon event, an ESPN-televised international beach soccer event with teams from Italy, France, and Spain, and July 4th tribute performances by Tom Petty and Neil Diamond acts with speed painter Jessica Haas.
• Beach matting was discussed as a possible way to hold events and create parking on the beach, with an estimated cost of $900,000. Staff noted installation and removal labor and equipment are a challenge, and using the event parking lot for Bike Fest setup and teardown would cost about $60,000 in lost parking revenue.

Convention Center

• The city contribution to the convention center will increase by $216,442 in FY27; the total city contribution was referenced as about $2.6 million. Hall rental and package revenue are projected to increase by $210,000, and revenue is expected to increase across most categories.
• Staff highlighted a 3.1-to-1 return on investment to the state, $120 million in direct spending to the county, $131 million to the state, roughly $144–150 million in total economic impact, $15.2 million in combined county and state tax revenue, and 1,430 jobs supported. USA Field Hockey was booked for an additional day in December, and portable sports flooring is paying for itself through rentals.
• Utility costs are a major budget driver: FY27 is projected to increase $150,000, an additional $150,000 was needed this year, and staff cited about $250,000 in utility growth over two years. The HVAC contract is $234,000. Other items include $138,000 for Terrazzo floor repair, future bathroom upgrades, a $65,000 dance floor, phased table and chair replacement, and a new destination services coordinator position.
• The food-and-beverage contract, identified in the transcript as Sodexo/Center Plate, expires in 74 days; staff are evaluating a proposal and plan to bring a recommendation to the city. Lost business from groups that could not be accommodated is estimated at about $13 million. Staff also cited parking, internet service, and building attrition as challenges, while noting the recent completion of four elevators and two escalators.

Museum

• The Museum of Ocean City and the Ocean City Life-Saving Station Museum operate together under the convention center with two full-time and eight part-time employees; a part-time office associate was converted to full-time. Since the Museum of Ocean City opened in May 2025, it has welcomed just under 3,000 visitors and hosted 13 programs and community events, and the museums presented more than 150 programs and events in the past year.
• The museum budget increases $106,558 from FY26 to FY27. Items include $41,891 for the full-time office associate and $21,320 in benefits, $9,805 for exterior painting and repair at the Life-Saving Station, $42,312 for attic and floor insulation at the new museum, new phones, $4,820 for conferences and preservation training, $1,789 for pest control, window cleaning, and power washing, and about $14,000 in energy costs.
• A boardwalk expansion around the Life-Saving Station Museum is anticipated, with staff aiming for spring 2027 and describing it as beneficial for bike and foot traffic and as an outdoor classroom and programming space.

Tourism and Business Development

• A new ordinance passed in early January dedicates $12 million for tourism expenses, including $10.6 million for advertising. The FY27 tourism budget includes 11 full-time and one part-time employee. Contract services increase about $110,900, and the advertising increase is about $90,987.
• Staff described a softer travel landscape caused by high gas prices and economic uncertainty, and said marketing must defend core markets, expand where value exists, and prioritize efforts. A third-party study measured $241 returned for every dollar spent on the FY25 campaign; this measurement will continue. The SMILE campaign creative will be refreshed, with a new campaign expected around 2028.
• Staff argued that a sports complex would overcome many tourism challenges because youth tournament travel is a growing demand source that Ocean City currently lacks the facilities to capture.

Key Outcomes

• The council approved the Worcester County Humane Society event request for April 11, 2026, by a 4–0 vote.
• The council approved the FY2027 Recreation and Parks fee schedule by a 4–0 vote.
• The FY2027 budget presentations were informational and preparatory; no budget ordinance was adopted at this meeting.
• A wrap-up budget meeting is scheduled for Friday, April 10, 2026, at 1:00 PM, with items including special appropriations, one new funding request, an FNE increase request, tram principal and interest payoff, CIP pay-as-you-go projects, city solicitor hourly rate, and beach patrol code enforcement.
• The meeting adjourned with a motion by Secretary Savage and four votes in favor.