The release this week of the Ocean Pines Association reserve study, coupled with comments made by General Manager Bob Thompson at his town hall meeting Saturdy, should provide residents with plenty to think about — and argue over — should they be so inclined.
The reserve study, conducted by Design Management Associates Inc. of Richmond, Virginia, concluded the OPA has about 25 percent of what it needs to maintain its common properties over the course of a 30-year period.
Among other things, that assumption is based on the desire to build enough of a cushion to avoid hitting association members with a dramatic increase in their assessments should something serious occur that needs immediate attention.
Naturally, there is strong disagreement about whether keeping reserve funds that total a little more than a year’s worth of revenues is the right thing to do, but the fact remains that property owners could do it if they so desired.
As Thompson pointed out Saturday, property owners do have a sweet financial deal as compared to what residents of the county’s municipalities pay to their governments for essentially the same services.
In Ocean City, for instance, a home with an assessed value of $250,000 would pay $1,195 in property taxes. By comparison, that home in Ocean Pines would have paid $921 last year. An Ocean City home valued for tax purposes at $300,000 would generate a tax bill of $1,434, while a $300,000 Ocean Pines home would have been billed for that same $921. As for Berlin, a $250,000 home there results in a tax bill of $1,700.
Although the debate will continue over whether a bigger reserve fund is needed, there should be no dispute that the OPA’s assessment leaves room to do something.
Whether members would want to is another discussion altogether.
The reserve study, conducted by Design Management Associates Inc. of Richmond, Virginia, concluded the OPA has about 25 percent of what it needs to maintain its common properties over the course of a 30-year period.
Among other things, that assumption is based on the desire to build enough of a cushion to avoid hitting association members with a dramatic increase in their assessments should something serious occur that needs immediate attention.
Naturally, there is strong disagreement about whether keeping reserve funds that total a little more than a year’s worth of revenues is the right thing to do, but the fact remains that property owners could do it if they so desired.
As Thompson pointed out Saturday, property owners do have a sweet financial deal as compared to what residents of the county’s municipalities pay to their governments for essentially the same services.
In Ocean City, for instance, a home with an assessed value of $250,000 would pay $1,195 in property taxes. By comparison, that home in Ocean Pines would have paid $921 last year. An Ocean City home valued for tax purposes at $300,000 would generate a tax bill of $1,434, while a $300,000 Ocean Pines home would have been billed for that same $921. As for Berlin, a $250,000 home there results in a tax bill of $1,700.
Although the debate will continue over whether a bigger reserve fund is needed, there should be no dispute that the OPA’s assessment leaves room to do something.
Whether members would want to is another discussion altogether.