By Greg Ellison

(Jan. 28, 2021) Seeking clarity regarding ongoing financial impacts from coronavirus, last week the Ocean Pines Board of Directors weighed options to reduce projected six-figure losses next year in aquatics.

The board performed departmental reviews of the proposed fiscal 2021-22 budget during an all-day meeting on Jan. 19, which followed a vetting by the Budget and Finance Committee earlier this month.

Director of Amenities and Operational Logistics Colby Phillips said pool facilities, which are forecast to lose $236,000 this year, are projected to lose $381,000 during the next budget year.

With the pandemic continuing to alter societal interactions, and timeframes to complete vaccine disseminations yet unknown, the influx of pool patrons is likely to be slowed next spring.

“Based on community feedback we feel it will start slow and have to be rebuilt,” she said.

OPA President Larry Perrone, while noting aquatics was one of the departments most impacted by coronavirus, said strategies should be developed to decrease the bottom line deficit.

“Do you have a plan in place to try and reduce that number?” he said.

Phillips said the first consideration would be reducing operating hours at select pools.

Following the earlier review of next fiscal year’s proposed figures by the Budget and Finance Committee Phillips and Director of Aquatics Kathleen Cook crunched numbers to identify savings.

“If we closed Sports Core Pool for 14 weeks we’d save $42,000 on payroll,” she said.

Phillips said the move would entail lost revenue of a smaller magnitude.

Phillips said prior to that possibility would be consideration to either close or reduce hours at the Beach Club Pool.

“Adjustments can be made based on where we are … next summer,” she said.

Perrone expressed concerns that despite reducing hours last summer the revenue loss for aquatics was massive and looks to increase further next season.

“I think we need to do more, I’m just not sure what that is,” he said. “We need some more solutions … because this is big number.”

Cook said a healthy portion of current year revenue reductions were tied to instructional offerings.

“Group swim lessons and private one-on-one swim lessons equate to approximately $150,000 worth of revenue lost,” she said.

Cook said among the handful of Pines swimming facilities, the highest capacity and ability to generate revenue exists with the Swim and Racquet Club Pool, Yacht Club Pool and Sports Core Pool.

“Everyday I opened the beach pool this summer I lost money because of the capacity,” she said.

Director Frank Daly asked if revenue and expense data could be obtained for each individual pool.

“It appears there will be capacity restraints this year,” he said.

Daly said each facility should be vetted individually to ascertain potential lost revenue prior to reaching a conclusion on potential closures.

“When we hit the opening button on Memorial Day, best case projections there’s still going to be a whole lot of people not vaccinated and … a whole lot of virus still in the U.S.,” he said.

Phillips said budget figures from the prior five years are readily available and pool specific operating costs could be broken out in short order.

Director Doug Parks, who concurred capacity restrictions would persist this year, questioned the need for definitive solutions for cost containment at this time.

“The message I would like to convey would be that all options are on the table,” he said. “If faced with a significant loss there would be an appetite for closing pools.”

Parks said the matter should be entrusted to the operations team, with the potential for pool closures a board-approved option.

“That option is one for them to consider,” he said.

Parks said a real-time analysis of profit and losses should be the top priority next season.

“One of the challenges you’re going to have is to continue to do an analysis on a weekly basis to see how revenues are coming in based on capacity,” he said.

Director Tom Janasek questioned the impact of shuttering pools on membership percentages.

“If you look at the numbers we’re close to $300,000 down in memberships for the last full year of numbers,” he said. “That’s a huge hit we’re taking, period.”

Aquatics membership dues were more than $414,000 in fiscal 2019-20, with the current budget year forecast at close around $142,000 and projected at more than $216,000 for fiscal 21-22.

Janasek said closing pools at the Yacht Club and or Beach Club would impact profits from food and beverage sales.

“Last year food and beverage took a huge hit when we closed the Beach Club pool,” he said.

Perrone disagreed with the sentiment to track revenues and expenses in real time next season to ascertain the best path forward.

“To come and say in the budget process, ‘Well, we’re going to close some hours like we did last year’ doesn’t change anything,” he said. “We need your team to come forward with a plan for us to look at.”

Director Dr. Colette Horn echoed Daly’s earlier sentiment about analyzing individual facility net operating figures.

“We should at least look at that data and see what story it tells us,” she said.

Phillips and Cook pledged to provide financial data to later that day.

Perrone said the search for solutions could resume after further research into past fiscal benchmarks is conducted.

“Let’s get the information and see what contingency plan is proposed,” he said.

The board will hold a public hearing for the fiscal 21-22 budget on Feb. 6 prior to potential adoption on Feb. 20.