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Commissioners review enterprise funds: Ocean Pines debt service cut halves EDU fee for FY27; Riddle Farm EDU sales to repay General Fund
Summary
County staff detailed committee adjustments to solid waste and water/wastewater enterprise funds, including an Ocean Pines debt service reduction from $36 to $18 per EDU and projected Riddle Farm EDU sales that will repay prior General Fund advances; several fee and hookup changes were itemized.
County budget staff presented committee-reviewed adjustments to enterprise funds at the May 12 budget work session, focusing on solid waste and water/wastewater service areas.
For the Ocean Pines debt service fund, commissioners had previously approved cutting the debt service fee from $36 to $18 per EDU for most customers starting in fiscal 2027. Presenter (Speaker 4) said that decrease reduces revenue in the debt-service line by $694,264; staff noted the reduction will be offset by a corresponding increase in transfers from fund balance in order to balance the fund for FY27.
In the Riddle Farm service area, staff are factoring in anticipated commercial EDU sales tied to Route 50 development. Presenter (Speaker 4) quantified the increases in service-area revenues and noted that a portion (reported as roughly $2.97 million in the committee material) will be transferred back to the General Fund to repay prior developer-related advances. When commissioners asked how customers will realize credits if retroactive adjustments are approved, staff (Speaker 4) explained credits can be applied to end-of-year bills, refunded, or carried forward depending on the county's billing system and the size of the credit.
Staff also reviewed connection/hookup fee changes: Edgewater Acres's sewer fee was updated in FY27 to reflect a pass-through from Sussex County (noted as increasing from $700 to $10,700 in the packet sample), and EDU charges for Mystic Harbor, Newark, Ocean Pines and Riddle Farm were adjusted to reflect quarterly debt-service annualization. Snug Harbor's EDU charge rose substantially (about $7,000) to fund grinder pump replacements and associated labor.
Commissioners raised questions about leachate handling and PFAS concerns; staff clarified that leachate is being routed to Ocean Pines for treatment rather than being applied via spray irrigation at Newark to reduce PFAS regulatory exposure.
What happens next: staff will carry the committee-reviewed enterprise fund adjustments into the FY27 budget and will present capital requests and a rate-study procurement memo at an upcoming meeting to evaluate long-term cost recovery and capital planning across treatment plants.
Provenance: Presenter (Speaker 4) introduced the solid waste summary (SEG 014 onward) and the water/wastewater adjustments and EDU details (SEG 134 onward).
