By Greg Ellison

(Oct. 21, 2021) With fiscal 2021/22 nearing the halfway point, Ocean Pines General Manager John Viola reported last week that the association beat the budget by roughly $1.2 million through September.

Viola presented a financial breakdown for August and a flash report of estimated numbers in September during the Board of Directors meeting Saturday.

“Revenues, as well as expenses, came in favorable,” he said.

In August, the association’s operating fund closed ahead of budget by $155,000, which was comprised of revenue figures ending roughly $138,000 over estimates and total expenses $17,000 under budget.

Viola also shared a flash report for September figures, which are estimated to close roughly $176,000 better than the budget.

Looking at year-to-date data through August, the association is trending in the black with a positive operating variance of $1.12 million. Broken down, revenues topped estimates by $869,00 and expenses remained under budget by $253,000.

“It’s across the board revenue and expenses,” he said. “We see … new growth developed by this team in place … for all our amenities.”

Viola highlighted positive financials for golf operations, aquatics and racquet sports, as well as food and beverage services.

“We looked at reallocation and we scrubbed every account,” he said.

Topping the financial returns for August was the Ocean Pines Yacht Club at $53,200, followed by aquatics at $41,600 and public works at $36,600.

Positive departmental year-to-date figures through August include the yacht club at $261,300, closely followed by golf operations at $221,800, aquatics at $188,400 and public works at $163,500.

“The yacht club … banquets are coming in big time,” he said.

Viola said the positive figures for public works and general maintenance are somewhat related to timing and staffing.

“We have had a challenge hiring people,” he said.

Viola also highlighted strong revenue at the Ocean Pines Golf Course.

“The place is packed,” he said. “We’re seeing … rounds going up.”

Viola said maintaining the increased profitability at the golf course was contingent on avoiding funding cuts.

“If you cut $30,000 from there two years in a row you’re probably going to lose $200,000 in revenue,” he said. “You invest that $30,000 in there you’re probably going to make $200,000.”

Viola also cautioned the positive budget numbers could wane when the fiscal year closes at the end of April as revenues typically subside through the winter months.

“We do have expenses coming in,” he said.

Also during Saturday’s board meeting, Treasurer Doug Parks reviewed the associations’ financial standing, investment rates of return, reserve balances and assessment fee collections.

To close out August, the association reported about $16.8 million in cash and investments, split with $9.5 million in CDARs (Certificate of Deposit Account Registry Service) and $7.3 million in money market funds and other operating accounts.

Parks said overall investment rate of return on CDARs was .85 percent.

“It’s been consistent for the last several months,” he said.

Turning to reserve balances, Parks said through August the overall sum deposited among the five accounts is about $ 7.8 million.

To close August, the totals include $5.3 million in replacement funds, $1.6 million for bulkheads, $600,000 for drainage and $300,000 for new capital.

“There was not much change from last month,” he said.

The association opened the fiscal year in May with a total reserve balance of $5.7 million.

“We’re still tracking well toward the end of the fiscal year,” he said.

Looking at assessment collections, Parks said through the end of September the association had received $9.23 million or 98.7 percent of the $9.34 million total due.