Ocean Pines Golf Course is helping with budget bottom line. 

By Cindy Hoffman, Staff Writer

April numbers get boost from golf play, while year exceeds forecast by $1M

(June 22, 2023) The Ocean Pines Association recorded another positive month financially, as General Manager John Viola reported Saturday that April’s revenue and expenditures beat the budget by $36,000.

“Golf is driving this place right now,” said Viola.

Golf favorability to budget was $52,000, he said at Saturday’s board of directors meeting. Public Works posted $59,000 better than projected, while Administration and Recreation came in unfavorably by $31,000 and $29,000.

Altogether, the association came in at $1.150 million favorable for the year, he said, although he cautioned that “These are unaudited numbers.”

The numbers could change with the audit, but he believes they will not.

“Over 90 percent of this is driven by revenue growth.  It’s not revenue that grew by price increases. So, when I say organic growth, I am talking about new revenue we did not have before.  Because across the board, we have a very good product,” Viola said.

He also pointed out that because weather is the ultimate driver, good weather will allow the amenities to improve as well.

“There is some favorability on payroll, but keep in mind that we used contractors,” he continued. “That does not go to our payroll line.  Just look at everything that is getting done.

“We will look at the staffing in the next budget for Public Works, but that favorability we have reinvested. We put it in drainage, we put it in drainage reserve. We put into drainage, three, four, five, $600,000 a year. And then I hired outside contractors and that’s where it gets charged.”

 The reserve balance is at $6.7 million as of April 30, he said.

Viola’s flash estimates for May have OPA at $150,000 favorable in net operations, with net revenues at $7.6 million and net expenses at $1.08 million.

Association Treasurer, Director Monica Rakowski, also reported that the OPA had approximately $18.5 million in cash as of May 31. Cash decreased by about $100,000 from the same time period last year. Cash increased about $800,000 from April.

Of that total cash on hand, $11.1 million is invested in CDARs, Rakowski said.  The remaining $7.4 million is invested in insured cash sweep, treasury bills, money market and other operating accounts, diversified between two local banks.