JOSH DAVIS/BAYSIDE GAZETTE
The view of an Ocean Pines bulkhead from White Sail Circle.

By Josh Davis, Associate Editor

(Jan. 24, 2019) Ocean Pines lot owners could see at least a partial bulkhead assessment holiday this year, but overall costs are likely to rise because of increasing costs to do the work.

General Manager John Bailey, during public hearings last week for the 2020 fiscal year budget, proposed a one-year waiver of the $19 bulkhead assessment for all Ocean Pines property owners, as well as the $465 fee for waterfront owners.

Based on a two-year spending plan that began this year, nearly all of the roughly $3 million bulkhead reserves will be spent by the close of fiscal 2020, according to Bailey’s projections. He said a reserve study estimated future bulkhead work costing about $1.1 million per year, or approximately $300,000 more than average spending during prior years.

“That may mean a slight increase in the bulkhead assessment,” Bailey said at the time.

Director Ted Moroney, last week, provided a roadmap on how future bulkhead collections could work.

First, he said delaying any new bulkhead work this year would be unwise. Much of the work during the last two years was suspended as bulkhead planning was reevaluated.

“Stopping the program for two years gained the association nothing, because the work is more expensive, has to be accelerated, and we went through the political pressure of the bulkhead reserves being overfunded and, due to previous years’ lack of execution, waived the overall fee … last year,” Moroney said.

He said it was clear from public sentiment that “homeowners don’t want a big surprise” and would rather pay an incremental assessment increase, as opposed to a larger, one-time fee hike.

Moroney asked whether Bailey would meet his spending goals by the next fiscal year’s 2020 close, saying it was more likely there will be an ending balance of about $400,000. Because of this, he said, waiving the overall $19 fee this year and reducing the waterfront fee made sense.

“If we waive the $19, but tell everyone we expect it to go up from $19 by about $2.30 to $4 per year going forward … we have been transparent … and not increased that part of an already increasing assessment,” he said.

Moroney proposed reducing the bulkhead differential from $465 to $275 – for one year – with incremental increases of $56.45 per year planned in 2021, 2022 and 2023.

“We then also have a little wiggle room if we have that emergency and, if the performance does not hit budget, the $465 can stay without an increase for FY21,” Moroney said.