By Greg Ellison

(Dec. 16, 2021) In addition to discussing the 2022/23 fiscal year budget process, Ocean Pines General Manager John Viola also provided updates on bulkhead repairs, drainage work and audio system enhancements during the board meeting on Saturday.

Viola said next fiscal year’s proposed budget figures have been reviewed and signed off on by all department heads.

“The good news is we’re actually ahead of schedule,” he said.

The Budget and Finance Committee are slated to receive budget binders before Christmas.

Viola said the pending budget process faces unique challenges.

“There are headwinds,” he said. “Inflation … has raised its head again.”

Rising costs for goods and services are likely to add a degree of difficulty.

“It will impact the proposed budget,” he said. “I’m trying to break out the effect of inflation on each department.”

Additionally, an increase in minimum wage is also at play.

“It’s a big number for us,” he said.

Viola said besides aligning with higher minimum pay, the association has also faced challenges recruiting and retaining staff.

Although not approved last session, Maryland’s General Assembly is expected to pass legislation in 2022 to mandate reserve balances for homeowner associations.

“It will have an impact on our assessment premiums,” he said.

As introduced last year, the state legislation would require homeowner associations to conduct a survey of asset values.

Association President Larry Perrone said from all indications the legislation would be considered again in 2022.

“We don’t know what the legislation will require,” he said. “We won’t have years to get it adjusted.”

On a brighter note, Viola said there are also tailwinds likely to aid budgeting.

“We have a surplus that we recognized last year,” he said.

Viola also noted higher revenues from amenities and improved departmental bottom lines evidenced during the current fiscal year.

“We are favorable, and we have increased revenues,” he said.

In line with the prior year, Viola said the association is currently operating with a budget surplus.

At this point, Viola said the association needs to weigh options to lower assessment charges or stash funds in reserve to account for potential new state mandates.

In terms of current financials, Public Works Office Manager Linda Martin reported the association closed October $72,000 favorable to budget.

October figures included revenues favorable by $149,000 with expenses running $77,000 higher than budgeted.

Martin said the year-to-date figures through October reflect a net operating surplus of $1.3 million, including revenues over budget by $1.2 million and expenses under by $150,000.

Turning to capital projects, Viola said the previously budgeted additional pickleball courts are now moving forward.

“We finally received the permits for the pickleball courts at the Racquet Center,” he said.

After permits were received, bid packages for the project were sent to four area contractors.

Viola said the pickleball court additions should be completed before next summer.

Viola also presented a recommendation to install a hybrid video system in either the Golf Clubhouse or the Assateague Room in the community center.

The association previously contracted Mid-South Audio to install comparable equipment in the board room in the administration building.

“We used it for the budget process last year and I thought it was great,” he said.

The proposal would involve Mid-South installing a custom table with built-in microphone and cameras, which would be integrated with the existing system and work with Microsoft Teams.

The cost would be $15,000 to install the equipment in either location, with the Assateague Room costing an additional sum for a projector and screen.

Viola also reviewed recent work completed on the North Gate Bridge.

On Dec. 9, wooden bridge beams were power washed with holiday decorations added to spruce up appearances.

Following a pair of recent accidents on the bridge, cost estimates were prepared to either repair or relocate the guard shacks.

Viola said it would cost roughly $2,500 to repair or remove guard shacks, while relocating the structures to White Horse Park would run about $12,000.

Viola recommended repairing and maintaining the shacks in their traditional spot.

“You can see we’re cleaning it up,” he said.

Additional recommendations offered included adding LED floodlighting for all four corners of the bridge.

“We would light up the bridge and approach on both ends,” he said.

Looking at upcoming bulkhead repair work, Viola said approximately 2,000 square feet along Pintail Drive and Pintail Park is slated for attention next spring.

The total cost at $425 per square foot would be $850,000.

To guarantee pricing rates stay unchanged, Viola requested the board grant early approval for the next round of repairs.

“This is the same drill as last year,” he said. “We did it last year to lock in prices and we had savings.”

Switching to drainage work, Martin said high density polyethylene pipes intended for installation under three roads, — Sandyhook, Beaconhill and Pinehurst — are now on site.

Martin said the drainage work was delayed after it was discovered utility lines running under the roads would require relocating.

Worcester County Public Works estimated costs at $76,000 to relocate utility lines, with materials running $50,000 and installation around $170,000.

“The total for this portion is $297,000,” she said.

Martin said the project is intended to wrap by early spring.