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Ocean Pines Board passes budget for fiscal year 2019

Basic assessment to go up $30; final vote was 5-2, as Trendic and Herrick oppose

By Josh Davis, Associate Editor

(March 1, 2018) Ocean Pines Association assessments will increase $30, based on the fiscal 2019 budget approved on Sunday.

Budget adoption by the board of directors followed a series of public meetings begun in early January and including work sessions with both the board and budget and finance committee, as well as three public hearings.

As a result of those meetings, the basic annual assessment was set at $951, a $30 increase.

The board voted 5-2 on Sunday to approve the budget, with directors Slobodan Trendic and Tom Herrick opposed.

During the meeting, Trendic unsuccessfully proposed several budget amendments.

First, he moved to adjust health care premiums to include a 10-percent employee contribution for single coverage and a 15-percent employee contribution for family coverage.

Trendic later withdrew the motion to allow for reevaluation by a human resources consultant, a new hire included in the fiscal 2019 budget.

A second motion proposed a reduction of the public relations and marketing budget by at least $125,000.

General Manager John Bailey said $60,000 had already been trimmed from the original budget draft. Bailey said he understood the rationale for cuts given the unusually high operations deficit posted during the last two fiscal years, but was reluctant to gut what would amount to about 35 percent out of any department.

Director Colette Horn said additional cuts could have a negative effect on the consulting group expected to take over operations at the yacht and beach clubs, and Association Vice President Cheryl Jacobs added the board previously considered reductions over a period of several days and with recommendations from advisory committees.

The motion was defeated 5-2, with only Trendic and Herrick in favor.

Trendic also moved to reduce labor expenses for golf by at least $100,000 from the original budget draft. He said losses at the amenity continue to put an unfair burden on homeowners and the decrease would bring projections closer to industry standards.

However, the board had already cut $40,000 from golf expenses and the motion fell 6-1, with only Trendic in favor.

Trendic next moved to increase drainage repairs by $100,000, but the motion did not receive a second.

He also called for a delay of a proposed $26.50 per-homeowner fee for road depreciation, but that money was instead reallocated to pay for a forensic audit.

The board by a 6-1 vote approved a motion to set the basic annual assessment at $951.

Trendic was the lone “no” vote. His motion to eliminate the $30 increase over the previous-year assessment did not receive a second.

To view Ocean Pines fiscal 2019 budget documents, visit www.oceanpines.org/forms-docs-cat/budget-for-fy-2018-2019.