Ocean City Advances $125M Budget Fueled by Grants While 34th Street Neighbors Rally Against New Cell Tower

The April 23, 2026, Ocean City City Council meeting featured a detailed formal introduction of the 2026 municipal budget, presented by Finance Director Frank Donato. While the overall budget figure has increased significantly, officials emphasized that the growth is primarily driven by external funding rather than increased taxation.

Budget Totals and the “Grant Factor”

The proposed 2026 budget has risen from an initial $118 million proposal to $125 million. Donato clarified that this $7 million increase is entirely due to new grants and donations received since the budget was first drafted. Importantly, the tax rate and tax levy remain unchanged from the original proposal.

“Spending is not out of control,” Donato stated, addressing potential headlines. “It’s in the grants.”

Key New Revenue Sources

The city highlighted several major additions to the budget that were not part of the initial March presentation:

• Shooting Island Restoration: A $5 million grant from the DEP for thin-layer dredging and marsh restoration to protect against coastal flooding.

• Airport Terminal Donation: A $3 million private donation from Leon Grisbaum to match city funds for the construction of a new terminal building at the Ocean City Municipal Airport.

• Safety Grants: Over $8,000 for bulletproof vests for the police department through federal and state body armor funds.

• Community Development: $266,000 in annual Community Development Block Grant (CDBG) allotments.

2026 Capital Plan & Bond Ordinance

In conjunction with the budget, the Council introduced Ordinance 2605, a bond ordinance appropriating $23.5 million for major city-wide improvements. Key projects include:

• Roads and Drainage: $5 million for paving and neighborhood drainage projects, specifically targeting 18th to 26th Streets and Ocean City Homes.

• Beach and Boardwalk: Funding for the city’s share of upcoming beach replenishment in the north end and $1.2 million to complete boardwalk reconstruction from 14th to 16th Streets.

• Public Safety Equipment: Replacement of pumper trucks for the fire department, a new police boat, and IT/communications upgrades.

• Recreation: Improvements to the 34th Street batting cages, the 18th Street pickleball complex, and netting for the golf course.

The budget was successfully introduced following a unanimous vote. It will now be advertised for 28 days before returning for a second reading and public hearing on May 21, 2026.

Cellphone Tower Debate

The meeting also saw a packed room of concerned citizens who argued that the proposed tower at the city’s entrance would destroy property values, pose a health hazard, and pose a significant danger to pilots at the nearby Ocean City Municipal Airport.

City Solicitor Dorothy McCrosson provided a detailed history of how the city arrived at the current proposal. The issue stems from a federal lawsuit filed by Verizon after the planning board denied an application to place antennas on the Compass building on 34th Street.

According to McCrosson, the Compass building proposal would have placed antennas at the level of second-floor residential bedrooms. To settle the lawsuit, the city spent months searching for an alternative location within the required coverage “red circle.” Many sites were disqualified due to wetlands or Green Acres restrictions, leaving the current site as the remaining option.

Residents were not convinced by the city’s reasoning. Several speakers with aviation backgrounds highlighted the tower’s proximity to the airport’s flight path. They questioned if the FAA had been properly notified, noting that the tower sits at the edge of the final approach and takeoff path, and the potential danger posed by crosswinds.

Other residents expressed outrage over the lack of notification and the tower’s potential impact on the health of those living close by. Data was also presented, suggesting that homes within line of sight of a tower can experience property value drops of up to 9%.

Council Response: A Search for a Third Way

In a rare move following the heated public comment session, Mayor Jay Gillian and Council President Terry Crowley expressed a willingness to take one more look at the situation. “Between council and I, we’ll try one more thing,” Mayor Gillian said, while cautioning that he could not make any promises given Verizon’s status as a federally protected utility. “I don’t want to give people hope… but I think there’s seven of you up there [on Council] thinking the same thing I am.” The Mayor urged residents to appoint a single point of contact to work with the administration as it attempts to reopen discussions with Verizon.

In Other Business

• Prohibited Trailer Parking: Approved an ordinance banning trailers and construction vehicles from parking adjacent to playgrounds and recreation fields to improve safety and visibility.

• Affordable Housing Update: Passed a comprehensive overhaul of the city’s affordable housing ordinances to remain in compliance with state mandates.

The next City Council meeting is scheduled for May 7, 2026.