Last year, when Marty Clarke was vice president of the Ocean Pines Board of Directors, he proposed several changes to a fiscal-year budget draft that would have saved residents $130 in assessments.
It did not go well, and the ensuing debate led Clarke to declare he would not seek reelection this past year.
This week, Clarke, who made good on his promise not to seek another term, sent a new proposal based on the fiscal year 2017 budget draft to the directors, General Manager Bob Thompson, Controller Art Carmine and members of the budget and finance committee, proposing similar changes that would again lower assessments more than $100.
The proposal included a 50 percent ($130,500) reduction of the payroll increase, raising the financial performance of the marina just over $20,000 and increasing the revenue projections at the beach club parking by $12,494.
Clarke would add road depreciation to the budget, $227,529, and eliminate the “five-year funding plan,” trimming more than $1.2 million from the budget. Those changes would lower assessments from $943 to $804.59.
“I am totally opposed to the implementation of the eighth (8) year of the five (5) year funding plan,” Clarke wrote in a letter attached to his proposal. He went on to say certain directors in the past had used the possibility of special assessments as a threat and as a reason to continue the five-year funding plan.
“I personally believe that one of the motivations for the so-called five-year funding plan was an effort to put hundreds of thousands of dollars into our association’s bank account in order to help sell future projects,” Clarke wrote. “This is a corrupt use of replacement reserves. There is no scenario, of which I am familiar, that allows for the collection of replacement reserves in order to actually replace an entire facility.
“Some believe that it is easier to sell a referendum to our membership with the money already in the bank. In my opinion, this is not exactly what was in mind when we talked about open and fair disclosure,” Clarke continued, insisting that replacement reserves were meant to pay for “components in existing facilities,” not necessarily for improvements “above the original function.”
“These kinds of new projects should be funded as a new capital expenditure. Having the money in the bank does not reduce the overall costs one cent,” Clarke wrote.
He went on to say the current proposed increase in payroll would cost each homeowner $30 in assessments and that his adjustments to the marina and parking would simply mirror previous-year projections.
Clarke also advocated replacing the “40-year-old” HVAC systems at the country club and adopting proposed renovations to the beach club bathroom facilities.
“These relatively simple and minor changes should reduce the 2017 assessment by approximately $138.00 per member,” Clarke wrote.
It did not go well, and the ensuing debate led Clarke to declare he would not seek reelection this past year.
This week, Clarke, who made good on his promise not to seek another term, sent a new proposal based on the fiscal year 2017 budget draft to the directors, General Manager Bob Thompson, Controller Art Carmine and members of the budget and finance committee, proposing similar changes that would again lower assessments more than $100.
The proposal included a 50 percent ($130,500) reduction of the payroll increase, raising the financial performance of the marina just over $20,000 and increasing the revenue projections at the beach club parking by $12,494.
Clarke would add road depreciation to the budget, $227,529, and eliminate the “five-year funding plan,” trimming more than $1.2 million from the budget. Those changes would lower assessments from $943 to $804.59.
“I am totally opposed to the implementation of the eighth (8) year of the five (5) year funding plan,” Clarke wrote in a letter attached to his proposal. He went on to say certain directors in the past had used the possibility of special assessments as a threat and as a reason to continue the five-year funding plan.
“I personally believe that one of the motivations for the so-called five-year funding plan was an effort to put hundreds of thousands of dollars into our association’s bank account in order to help sell future projects,” Clarke wrote. “This is a corrupt use of replacement reserves. There is no scenario, of which I am familiar, that allows for the collection of replacement reserves in order to actually replace an entire facility.
“Some believe that it is easier to sell a referendum to our membership with the money already in the bank. In my opinion, this is not exactly what was in mind when we talked about open and fair disclosure,” Clarke continued, insisting that replacement reserves were meant to pay for “components in existing facilities,” not necessarily for improvements “above the original function.”
“These kinds of new projects should be funded as a new capital expenditure. Having the money in the bank does not reduce the overall costs one cent,” Clarke wrote.
He went on to say the current proposed increase in payroll would cost each homeowner $30 in assessments and that his adjustments to the marina and parking would simply mirror previous-year projections.
Clarke also advocated replacing the “40-year-old” HVAC systems at the country club and adopting proposed renovations to the beach club bathroom facilities.
“These relatively simple and minor changes should reduce the 2017 assessment by approximately $138.00 per member,” Clarke wrote.