By Greg Ellison

(Feb. 25, 2021) Ocean Pines Treasurer Doug Parks reviewed the associations’ financial standing and updated assessment fee collections during the Board of Directors meeting on Saturday.

To close out January, the association reported approximately $10.5 million in cash and investments, with that sum split with $7.1 million in CDARs (Certificate of Deposit Account Registry Service) and $3.4 million in money market funds and other operating accounts.

Parks said the overall investment rate of return on CDARs has continued to hover at 1 percent, which was reduced from 1.8 percent in August.

Turning to ongoing efforts to collect unpaid assessment dues, Parks said the tally continues to inch higher as the remaining months dwindle during the current fiscal year.

“We’re still a little bit short with the amount of money we had budgeted to be collected for the assessment,” he said.

Through January the association has received $8,872,591 of a total $9,126,236 owed for assessments this budget year.

“That’s up to 96.7 percent of the amount anticipated to be collected, which reflects a shortfall of  $253,645,” he said.

Parks said annual assessment remittance rates have peaked at 98 percent in recent years.

Ocean Pines President Larry Perrone noted the bylaws require an annual report on assessment collection progress is filed in February.

“This report from Doug we will accept as a report to board,” he said.

In a related matter, Parks also included a motion to establish a 6 percent interest rate for delinquent assessment fees for the fiscal 21/22 that begins in May.

After the motion passed later in the meeting, Parks noted the associations’ governing documents require interest rate for past due assessments be set annually, with the 6 percent rate remaining consistent over the past several years.

Looking at reserve balances through January, Parks said the overall sum deposited among the five accounts is more than $ 6.6 million.

To end last month the totals include just over $4 million in replacement funds, $1.6 million for bulkheads, $215,000 for roads, $675,000 for drainage and $87,000 for new capital.

After opening fiscal 20-21 with a total reserve balance of $5.6 million last May, the aim is to end the budget year with a comparable, albeit slightly smaller, sum.

“Our projected balance at the end of April 30, 2021 is $5.2 million,” he said.

Parks said despite significant cash outlays for capital projects and long-term maintenance needs in the past few years, the association remains on track to meet prior goals for reserve balances.

“In the past we committed to a reserve balance of 22-24 percent of the overall value of assets,” he said. “We are well on our way to making sure that we stay along with that commitment.”