Tangier Council Approves Budget

Approved by Town Council on August 8, 2025

On Aug. 8, 2025, the Town of Tangier approved a balanced budget for fiscal year 2025-2026 totaling $1.19 million in revenues and expenses. The budget encompasses three main operational areas: General Fund operations, Fuel Dock operations, and Water, Sewer, and Trash services.

Budget Overview

Fund	Revenue	Expenses	Net
General Fund	$170,130	$136,076	$34,054
Fuel Dock	$793,347	$809,944	($16,597)
Water, Sewer & Trash	$222,240	$239,693	($17,453)
Total	$1,185,717	$1,185,712	$5

General Fund – $170,130 Revenue

The General Fund maintains the town’s core governmental operations and shows a healthy surplus of $34,054. Primary revenue sources include:

• Real Estate Taxes: $105,000 (including $85,000 from current year and $20,000 recovery from prior years)
• County Sales Tax: $37,500
• Town Stall Leases: $5,150
• Vehicle Licenses: $4,800 (160 licenses at $30 each)
• Airport Landing Fees: $4,600
• Business Tax: $4,000
• ANEC Tax: $3,200
• Business Licenses: $1,680 (48 licenses at $35 each)

Major expenses include insurance ($52,331), payroll and administration ($45,095), utilities ($14,000), and debt retirement ($5,000).

Fuel Dock Operations – $793,347 Revenue

The Fuel Dock represents the town’s largest revenue operation, generating nearly $793,000 in fuel sales. However, operating costs result in a deficit of $16,597. Key financial components include:

Revenue: Primarily fuel sales ($792,847) with minimal food and supply sales ($500)

Major Expenses:

• Fuel purchases: $513,816
• Debt payments: $122,000 (including Pep-Up monthly payments of $98,000)
• Payroll: $58,808
• Fuel transportation: $52,800 (24 barges at $2,200 each)
• Excise taxes: $36,631 ($26,222 Maryland, $10,409 Federal)

Water, Sewer, and Trash Services – $222,240 Revenue

Essential utility services show a deficit of $17,453, requiring subsidization from other funds. The operation serves various customer categories:

Revenue Sources:

• Regular user fees: $173,760
• Subsidized fees: $39,000
• School & Brigadune fees: $5,160
• Church fees: $2,520
• Commercial fees: $1,800 (crab houses and gift shops)

Major Expenses:

• Payroll: $81,369
• Debt repayments: $70,964 (multiple USDA loans and other financing)
• Utilities and fuel: $30,000
• Water testing and laboratory services: $24,140
• Contractor services: $24,100 (trash collection and water system operation)

Key Financial Notes

• The town maintains multiple debt obligations across all funds, with significant loan repayments totaling over $197,000 annually
• Essential services (water, sewer, trash) operate at a deficit, typical for municipal utilities
• The fuel dock deficit may reflect competitive pricing strategies or infrastructure investment needs
• Overall budget balance of $5 demonstrates careful financial planning and management
• Insurance costs of $52,331 represent a significant expense reflecting the town’s liability and worker compensation needs

This balanced budget ensures continued provision of essential municipal services while maintaining fiscal responsibility for the island community of Tangier.