By Greg Ellison

Coronavirus plays havoc with OP’s revenue sources

(Aug. 20, 2020) Newly ensconced OPA President Larry Perrone highlighted the importance of fiscal matters as he attempts to guide the board of directors through challenging budgetary decisions.

“The number one priority … this year is trying to understand the impact of covid-19 on our financial results,” said Perrone, who had been serving as the association treasurer.

The budget picture will begin to come into focus when amenity revenue figures are available after summer winds down.

“We’ll be doing a closer analysis in September and October to try to figure out where we’re going to be by the end of the fiscal year [on] April 30,” he said.

Unknowns also abound for long-sought drainage infrastructure improvements at Bainbridge Pond, which appeared to take a significant step forward last month with the award of a Department of Natural Resources grant.

“We did get a grant initially approved for about $550,000,” he said.

The original grant request, which was worked through the Chesapeake & Atlantic Coastal Bays Trust Fund, was for roughly triple that sum and intended to cover the cost of reducing flooding in Bainbridge Park by retrofitting Bainbridge Pond.

“Since we only got about a third of what we thought we might get, we have to go back and take a look at the scope of the project and financing,” he said. “Things are changing daily as we progress with this project.”

Already anticipating profit and loss statements to skew negative, the possibility of tapping reserve funds for the Bainbridge project could become an issue.

“Where is the money is going to come from and ultimately what is the impact on homeowners?” he said.

Last fall, Director of Amenities and Operational Logistics Colby Phillips and Public Works Director Eddie Wells began working with Vista Engineering consultants and established a drainage workgroup with support from General Manager John Viola and the board.

The eventual grant application was facilitated through Worcester County since Ocean Pines is a homeowner’s association and not a municipality.

In addition to county officials, Kevin Smith and Steve Farr with Maryland Coastal Bays have consulted on the upcoming project, along with engineers Rich Polk and Eric Jones from Vista Design.

“We’re going to have a presentation made at the September [board] meeting about the team’s recommendation,” he said.

The next regularly scheduled OPA Board meeting is Sept. 9 at 7 p.m.

After being selected as president by his board colleagues during the annual organizational meeting for officer selections last week, Perrone said prior committee involvement was helpful.

“Being involved in the budget and finance committee was a good education for me regarding what goes on in the community and then being [board] treasurer last year,” he said. “This is not a small business anymore, we’re about a $15 million operation.”

Perrone said a detailed knowledge of the association’s finances plays a critical role in leading the board, and by extension the community.

“That’s all in the interest of protecting the homeowners because [they] are the ones who have to come up with the assessment dollars,” he said.

Perrone said regardless of his new title, he remains one of seven equally empowered board members.

“We all have the same authority and we’re all just directors,” he said. “The only difference being the president is that the general manager reports to you directly.”

Perrone said the president is primarily tasked with leading the board through decision-making processes in pursuit of consensus.

“It doesn’t mean my opinions on everything is the way that things have to go,” he said. “That’s why we have seven people on there so we get a lot of different views.”