Golf continues to be the economic engine driving the Ocean Pines budget.

Golf shows revenue gains as OP plan expects $2M   increase in total income

By Cindy Hoffman, Staff Writer

(Jan. 11, 2024) Most Ocean Pines residents can expect another decrease in lot assessments in the 2024-25 fiscal year budget.

The proposed non-waterfront lot assessment drops from $886 to $850, while waterfront lots remain steady at $1465, in the proposed budget reviewed by the Budget and Finance Committee last Wednesday.

The income projections are up over last year’s budget and total expenditures are higher than the last budget, yet the assessment decreased $36, General Manager John Viola said.

Total revenues were budgeted at $16.5 million in FY23-24. In FY 24-25, revenues in the proposed budget are $18.5 million.

“Golf is the economic engine driving this budget. But it’s across the board. Let me make that clear,” Viola said.

Reserves are expected to stay above $7 million. Currently, OPA reserves are 25.7 percent of fully funded, with that number trending up over the next five years, based on budget projections.

Viola told the committee that preparation for the budget was a “bottom up process” with department heads that lasted three months. They looked at last year’s budget and compared it with the forecast to determine the proposed budget.

Highlights of the proposed FY24-25 budget:

Finance: There is no increase in the number of full-time employees, but some positions have been reallocated. Proposed salary increases averaged 4 percent with 1 percent for promotions. Viola expects the range to be between 2-6 percent.

Public Relations and Marketing: Proposed revenue of $65,000, down from $66,000 budgeted previously. Total expenses proposed at $86,000, up from $77,000 previously. The proposed budget includes a $14,000 increase to promote banquets and weddings, per a request from the Matt Ortt Company.

General Maintenance: Proposed expense of $710,000, which is about a 5 percent increase to the total budget based on cost increases for vehicles, maintenance and materials.

Public Works Director Eddie Wells highlighted some of the work his team is doing at the beach club, including replacing some flooring and bar tops. Viola said more work is being done in house and with some outside contractors. Wells noted that a lot of the facilities are newer now, so they don’t need as much maintenance at this point.

Public Works: Total proposed revenues are $120,000, up from $95,000 previously. Total operating costs come in about the same at $1.8 million. Wells reported that he is close to fully staffed. Drainage repair and maintenance is budgeted at $175,000. Roads and bridge repairs and maintenance is budgeted at $100,000.

Bulkheads: Total revenue projected to be $1.17 million with expenses at $1.17 million. There has been no increase in bulkhead assessments for the past several years.

Contracting has been negotiated before the year starts and materials were purchased in advance to get the best prices. The plan remains to replace about 2,100 linear feet each year. Dredging costs are proposed at $50,000. OPA submits 20 lot applications a year and there is a two-year waiting period for dredging permits.

Marina: Total revenue projected to be $1.2 million, close to what was budgeted previously. Expenses are proposed at $181,000, up from $155,000. Capt. Ron Fisher recommended a 15 percent increase in slip fees, which he said would still leave the marina charging less than everybody else. The current charge is $85 a foot, which would increase to $104. That compares to $140 a foot at competing marinas, he said. Fisher reported that there are about 100 boats on the waiting list currently, with 87 slips.

 Police: Proposed revenue for FY24-25 is $605,000, with $550,000 coming from country grants. Operating costs are projected to be $2.23 million, up from $2 million previously. Chief Tim Robinson hired LEXAPOL for $25,000 with a $6,700 subscription fee annually to write policies and procedures for the department. LEXAPOL works nationwide to evaluate and develop the best practices and policies and fine-tune them for local departments. Robinson is planning for a new website funded by a grant for this year.

The pill drop-off box in the police lobby is emptied for $50 a week for proper disposal of medications. The department’s body cam contract is $30,000 a year. Robinson is focused on applying for grants to help with funding. He has proposed to raise $53,000 in grants next year from the state, as compared to $3,400 received in FY24..

There will be no increase in full-time employees, as the department is reallocating resources. A new part-time employee has been hired to manage the property room, evidence and reporting system.

Overtime is proposed at $65,000, but the chief expects that to go down as recruitment increases. He is trying to attract recently retired officers. His goal is to hire three to four recruits who can go into the academy in July and be working by the end of the year.

The department does not have LEOPS (Law Enforcement Officers Pension System), but a retirement fund/equivalent has been proposed at $216,000. Take-home cars are a big benefit for officers and the chief said if a pay scale is implemented, “that will speak volumes for the people who are here.”

Fire: The Fire Department’s request remains close to flat for Ocean Pines at $987,000. Apparatus maintenance is proposed at $98,000, a $28,000 increase from last year due the age of the equipment. Total revenue is proposed at $1.7 million, up from $1.5 million previously.

The department is not short-staffed, it’s operating with four full-time personnel and a fifth person part time. President Joe Enste is working on recruitment with some of the high schools for volunteers. First Assistant Chief Steve Grunewald reported they are constantly getting new members now. He said he does not expect the department to need to be a fully paid department in the future. Call volume is continuously going up due to the older age of Ocean Pines residents.

Rec and Parks: Total revenues are proposed as $520,000, up from $415,000 previously. Total operating costs are proposed at $975,000, up from $898,000 budgeted previously. The department will be bringing back more classes, special events and bus trips for the spring and all of next year, including the Vienna Boys Choir, which is expected to make money with sponsorships, donations and ticket sales. Viola said the community center building needs to be evaluated, as it limits the revenue the association can bring in. This is just in the evaluation stages.

Golf: Proposed revenue of $1.7 million, up from $1.66 million previously. Total expenses proposed at $472,000, down from $493,000 previously. The membership fees will be increased $100, which is still the lowest around by hundreds of dollars. The assistant golf benefited the golf budget by $9,000 last year. The driving range is always packed now and making money like it never did before, according to Viola.

Racquet Sports: Revenue is proposed at $153,000, up from $103,500 previously. Pickleball is the revenue driver of the three sports, with membership trending up: $74,000, up from $48,000 in the previous budget. There was a $19,000 loss in platform and $57,000 loss in tennis.

Operating costs are proposed at $78,000, up from $54,900 previously. The Racquet Sports Director, Tim Johnson and Viola are looking at the parking issue at the facility. Johnson is doing more community outreach, meeting with local PE teachers to teach them how to run racquet clubs, instructional videos, and he is considering setting up nets at the farmers market. He is also looking at starting a racquet sports camp.

Aquatics: Revenue is proposed at $1 million, up from $941,000 previously. Total operating costs are proposed at $1.06 million, up slightly from $1.03 million previously. Director Michelle Hitchens has proposed reopening the swim and racquet bar to increase revenue. She has numerous lifeguards coming back next session and does not expect to have a shortage. The Budget and Finance Committee suggested raising rates on membership to do more to cover costs and will consider making a recommendation.

Beach parking: Proposed revenue is $649,000, up from $570,000 previously. Total operating costs are proposed at $64,000, up from $60,000 previously. It was proposed that the parking rate be raised from $215 to $240, weekly rate raised from $150 to $175 and daily from $45 to $70. Beach parking makes money every year, according to Viola. A card reader will be installed for the bathrooms at $5400.

Clubhouse Grill: Total revenue is proposed at $537,000, up from $506,000 previously. Operating costs are proposed at $292,000, up from $257,000 previously.

Beach Club: The Beach Club is one of the most profitable locations as far as net profit goes according to Matt Ortt. He proposed a revenue of $623,000, up from $594,000 previously. Total operating costs are proposed at $290,000 up slightly from $276,000 previously.

Yacht Club: Revenue is proposed at $3.3 million, about the same as last year. Total operating costs are proposed at $2 million, again about the same as last year. Matt Ortt Company has 19 weddings on the books with a goal of 20 by this month. He believes the tiki bar expansion will increase revenue and will pay for itself in three years.

Reserve Funds: The audited balance of the reserve fund was $6.6 million on April 30, 2023. It is expected to increase to $7.1 million by April 30, 2025. Viola wants to see the DMA reserve at 30 percent in the next two years.

The capital expenses are projected at $1.5 million. Some of the higher priced items include the golf course irrigation at $850,000, renovations of the driving range and building for lessons; $84,000 for electronic signs, restoring the splash pad at the swim and racquet club pool for $40,000.

The Ocean Pines Board is scheduled to review the proposed budget during a public meeting on Jan. 11 from 9 a.m. to 3 p.m.