OCEAN CITY — Ocean City is planning another $42 million in capital projects over the next two years, but will average only about $10 million more per year from 2028 through 2030.
Chief Financial Officer Frank Donato and Capital Projects and Engineer Director Vince Bekier provided an outline of proposed spending at City Council’s meeting Feb. 19.
The duo focused on 2026, during which the administration has tentatively scheduled $23.8 million worth of work, with some of the biggest chunks set aside for flood mitigation ($4 million); beach fill ($3 million); the new airport terminal building ($6 million); 18th Street pickleball and parking expansion ($2.5 million); replacing two fire department pumper engines ($2.25 million); and boardwalk work ($1.2 million).
RELATED STORY: Projects proposed for 2026
The city anticipates spending $18.4 million on capital projects in 2027, $13.2 million in 2028, $9.1 million in 2029 and $8.85 million in 2030 for a five-year total of $73.4 million, all pending City Council approval.
The five-year spending would mean adding about $70 million to the bonded debt the city has, according to Donato, unless some of that is offset by grant funding. The city often gets grants for part of its work, something Donato and Bekier highlighted in their presentation.
As of Dec. 31, 2025, Donato said the city had $168 million in permanent or bonded debt and $69 million in temporary notes or unfunded debt.
The work over just the next two years would amount to another $40 million in debt, if all the projects are completed.
Donato explained the city has to have a Capital Improvement Fund that includes 5 percent of most bond ordinances. That money is included in the city’s operating budget. That would mean $1.2 million in the budget for the 2026 projects.
In addition in each year’s budget is the debt service for the bonds. Donato said last year’s budget had a $2.8 million increase in debt service from the 2024 budget and $1.8 million going into this year.
He explained the debt service increases have been scaling down as the city starts getting closer to the end of its ambitious capital budget projects over the years.
“The increases in debt service will be starting to really tail off in the next couple of years. That’s what we’ve been trying to say for several years,” Donato said. “We had so many large-scale infrastructure projects, so much roads and drainage,” projects with pump stations, rebuilding the boardwalk, dredging in back bays and building improvements.
“We’re finally starting to turn the corner … most have been accomplished,” he said. “That is great news to residents and taxpayers and council, who has to vote on these budgets. It is good to see some relief finally.”
He also explained that in working on bonding and capital projects, including debt service, the point the city tries to achieve each year is to have a “smooth effect on the budget” to prevent tax rate spikes.
Donato envisions “a tapering down going forward.”
Three weeks from the Feb. 19 meeting the administration will ask council to put the capital plan resolution on the agenda to approve it, giving members of council time to provide feedback and ask questions.
“This is a plan, not what we spent,” Mayor Jay Gillian said of the presentation. “We have a great financing team that has been doing a good job.
“There is a lot of work ahead of us still,” he added.
Projects completed
or in the works
Before Donato and Bekier got into the capital spending plan, they updated council on the numerous projects that have been completed in 2025 and some on the way to completion. It was a long list:
— The new pump facility at West 17th Street and Merion Park Phase II that added three pump stations that have achieved great success with flooding. There was an offset of $3.7 million from an ARP grant and $400,000 county grant.
— Dredging Snug Harbor, Sunny Harbor and Britany Drive and updating the outfall at Fifth Street.
— Replacing the Moorlyn Terrace ramp, making it ADA-compliant with grant funds of nearly $600,000.
— Placed beach mats, a popular upgrade, at 28th Street.
— Acquired properties at the southwest corner of Ninth Street and Central Avenue (former cafe and frame shop) for $960,000 and $750,000, respectively. They’ll be torn down for more parking.
— Replaced the City Hall elevator; HVAC at the Ocean City Community Center; roof repair at Civic Center; roof replacement at Community Center; and completed building the new public safety substation at Eighth Street and the Boardwalk.
— Repaired the substructure at the Music Pier.
— Renovated and resurfaced the tennis courts at Fifth Street, reconstructed the Eighth Street basketball court and built a new outdoor fitness area at the east end of Carey Stadium along with a few bocce ball courts near the shuffleboard.
Work still in progress:
— Dredging at South Harbor, Venetian Bayou, Carnival Bayou, the 14th Street outfall and Bayside Center.
— Replacing the boardwalk from Fifth Street north to St. Charles Place, offset by a $4.86 million DCA grant, plus work from 12th to 14th streets that isn’t a complete replacement.
— Designing the new public safety building where it now stands at Eighth Street and Central Avenue for a cost just under $1 million.
— A complete renovation of the 34th Street recreational facility at a total cost of $7.5 million, offset by a $3.5 million Cape May County Open Space grant. The new recreation facility will have three pickleball courts; two hardcourt tennis courts; four turf tennis courts; two basketball courts, including one that can be a dunk court for special needs athletes; a multipurpose turf court; a new building with bathrooms; a small office; storage space and a stage for small performances; and new playground equipment.
— Renovating the dog park, work that was delayed by winter storms.
— Converting the 16th Street lot between Haven and Simpson avenues for more parking, green space and other activities.
— A multitude of road and alley work.
– By DAVID NAHAN/Sentinel staff
