Directors consider approval for FY23 proposed figures in meeting on Wednesday

By Greg Ellison

(Feb. 24, 2022) Ocean Pines’ assessment fees for next year continue to dwindle with the proposed FY23 budget presented for Board of Directors approval on Wednesday. The new fee reflects a $100 reduction from current charges.

General Manager John Viola had earlier recommended earmarking $450,000 from prior year budget surplus, which would have knocked $53 off assessment fees next year.

Last week, the latest budget documents upped the surplus contribution to $650,000, which would result in a onetime assessment reduction of $77.

An estimated $50,000 in higher revenues from golf greens and cart fees would cut $6 off assessments, while increased profits in food sales cuts $10 from previous FY23 figures.

At present, the proposed FY23 assessment rates are $896 for non-water lots, down from $996 this year, and $1,344 for waterfront properties, down from $1,494 at present.

Contingent on board approval, the new line item for assessment charges proposed by Viola would become a permanent feature.

Viola cautioned that the assessment line item would be dependent on the prior year performance and current status, which could serve to decrease or increase fees based on profitability.

Other changes to the proposed FY23 budget include an $118,000 decrease in general replacement fund contributions. That cuts $14 off assessments.

The reduction was based on results from a reserve balance study conducted by Design Management Associates.

Also, an $100,000 decrease to pay down past bad debt, which peaked at $1.6 million if FY18, shaves $12 off assessments.

The proposed FY23 budget includes revenue projections of $16.4 million, compared to current year estimates of $18.08 million, representing a reduction of approximately $1.6 million.

On the expense side, the FY 23 budget includes projections of $16.4 million or roughly $570,000 under current year estimates of $16.9 million.

Bulkhead funding of approximately $738,000 is included in FY23 budget figures, with roughly $731,000 put aside for capital funding.

Ocean Pines annual budget requires final approval 45 days before the next fiscal year, which begins on May 1.