By Greg Ellison

(Feb. 25, 2021) With several last-second cost reductions cutting assessment fee increases from $35 to $10, the Ocean Pines Board voted 6-1, with Director Tom Janasek opposed, to approve the fiscal 2021-22 budget on Saturday.

OPA Treasurer Doug Parks reviewed the final numbers for the next fiscal year recommended budget, which reflects a basic annual assessment rate of $996, with about $15.9 million in anticipated revenue offset by expenses over $13 million.

The association’s FY21-22 operating budget also earmarks more than $1.2 million for bulkhead maintenance and drainage repairs and just over $1 million for capital expenditures.

Parks said due to unanticipated changes since the public budget hearing on Feb. 6, Director of Finance and Operational Logistics Steve Phillips was tasked with revising balance sheets this week.

“I had pressed him and [General Manager] John [Viola] to get some updated numbers based on recent events and was uncomfortable that those events didn’t reflect the current status of the budget,” he said.

Parks applauded the quick revision of budget figures to reflect personnel departures, reduced health benefit premiums and amended deprecation totals.

OPA President Larry Perrone said in addition to eliminating salary and benefits for recently resigned Director of Amenities and Operational Logistics Colby Phillips, significant cost savings for staff health premiums came to light this week.

“We were anticipating a premium increase,” he said. “The original information we got from our broker said it would be at about $300,000.”

Perrone said the earlier estimates for health insurance were cut by roughly $100,000 on Thursday.

Viola said besides the sudden resignation of Phillips, larger expense reductions for medical premiums were delivered during a meeting with the association’s insurance broker days earlier.

“It’s part of a process so we had to go with estimates,” he said. “Right there you have $220,000.”

Viola said roughly $40,000 in additional cost cuts was located after Phillips recalculated depreciation rates.

Director Camilla Rogers asked if there were plans to recruit a replacement for Colby Phillips’ position.

Perrone noted that call is an operational decision left to Viola.

“At this point he has spread some of the duties that she has to other individuals,” he said. “I think that’s where it’s going to be for the time being.”

The last-minute budget revisions gave Janasek cause for concern.

“There’s been so many changes to this in literally the last 24 hours,” he said.

Janasek said the minimal time provided for review felt inadequate.

“I’m just not comfortable at this time voting to approve the budget, but that’s OK I’m sure it will be 6-1,” he said.

Director Frank Daly expressed understanding for Janasek’s sentiments.

“I was up to midnight reviewing changes,” he said.

Still, Daly felt the budget managed to hit one principal mark.

“The end item of this thing is exactly at the current rate of inflation,” he said. “We’re managing to do what we’re doing and still keep it at inflation rate.”