By Cindy Hoffman, Staff Writer
(Nov. 2, 2023) “We have a good story here and I want to continue it,” General Manager John Viola said of association finances at the October Ocean Pines Association Board of Directors meeting on Saturday.
For September, the association’s finances were favorable by $44,000, with revenues up $32,000 and expenses coming in at $12,000 under budget.
Year-to-date numbers also look good, with net revenue coming in at $575,000 over budget and expenses totaling $92,000 under budget. That puts the association in the black at $483,000.
The big revenue gains for the amenities were golf at $96,000 and the beach club at $61,000 above budget. The marina and the yacht club were down $48,000 and $7,000 respectively.
“The marina and yacht club unfavorability numbers are all weather-driven. The marina had over 90 small craft advisories,” Viola said, adding that both the marina and yacht club did well even with heavy rains coming in regularly on Friday and Saturday nights.
Viola said the association’s total reserve balance as of Sept. 30 was $9.1 million, including $6.2 million for general replacement, $1.3 million in bulkheads, $1.1 million in roads, $400,000 in drainage and $100,000 in new capital.
“These are big spends, but the money is there,” Viola said.
He said the association is in a good place for the additional spending, thanks to the amenities’ performance and efficiencies the team has instituted.
Viola announced that the budget process has already started for FY2024. Key items to be addressed in the review process include pricing and salaries, and reserves.
He expects to present his figures to the budget and finance committee Jan. 2-3, with a board work session to be held around the third week of January. Public meetings will begin taking place by the first week of February.
Each year the association has increased budget spending and the budget reserves, said Viola.
“We will continue to do that, because of the positive results of the amenities and efficiencies of the team. We have had decreases in the assessment, increases in safety and expect to see that over the next few years.”
Board Treasurer Monica Rakowski provided the treasurer’s report.
As of Sept. 30, 2023, the association had approximately $18 million in cash. This is an increase of about $600,000 from the same time period last year.
Cash decreased about $600,000 from August 2023. The association has $11.2 million invested in CDARs and $53,000 in interest income recognized for the month.
The remaining $6.8 million is in insured cash sweep, treasury bills, money market and other operating accounts, diversified between two local banks.