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Mayor: Ocean City—s infrastructure work, beaches and budget keep the city ——strong

Ocean City City Council · March 13, 2026
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Summary

Mayor delivered the annual State of the City on March 12, highlighting beach replenishment plans, boardwalk reconstruction projects, flood-mitigation pumps, a new police substation and a proposed budget that would raise the tax rate by 1.38 cents; Finance Director Frank Donato will present details March 26.

Mayor Jay delivered Ocean City—s annual State of the City address on March 12, saying the municipality remains "as strong as ever" and outlining infrastructure, public-safety and budget plans for the coming year. He said the administration has prioritized beach replenishment, a multistage boardwalk reconstruction and ongoing dredging and flood-mitigation work.

"We all know Ocean City is an amazing place to live and the state of the city is as strong as ever," the mayor said in his remarks. He told the council the city has secured "more than 60 million" in grants since he took office and that beach replenishment funding exceeds $100 million; he also cited a double-A bond rating as a factor that allowed lower borrowing costs.

Major projects the mayor listed include an overdue sand-replenishment project for the north end and downtown beaches, a boardwalk reconstruction from St. Charles Place to Fifth Street with additional rebuilding planned from 14th to 16th Streets after summer, five new pavilions, three new restroom facilities and ADA improvements paid in part by a $4.9 million grant. He said the city restarted bayside dredging less than a decade ago and now dredges as needed, and that the town operates 35 pumps at 15 pumping stations to manage flood risk.

On public safety, the mayor said the city recently opened a new police substation and expects to begin construction on a new public-safety building on the site of the old police station before year—end. He also referenced technological upgrades described at a recent public-safety recognition event, including a drone demonstration used in open-water rescue scenarios.

On the budget, the mayor said the proposed plan trims the capital budget while protecting key services and that the debt-service increase for current projects will drop by $1.4 million. The administration—s proposed tax-rate increase is 1.38 cents. Finance Director Frank Donato is scheduled to present a detailed budget review at the next council meeting on March 26; the administration plans to introduce the budget to council on April 23 and schedule a final vote for May 21.

Why this matters: Ocean City relies on a combination of grants, bond financing and recurring revenue to support coastal protections, boardwalk infrastructure and emergency services that affect residents, businesses and the summer visitor economy. The mayor framed the work as a shift from capital build-out to maintenance of completed projects.

The council did not take votes on the mayor—s speech itself. The budget will return for formal consideration through the usual presentation, introduction and public-hearing schedule.