By Greg Ellison

Final months show decline in revenue, but expenses also fall to reduce losses

(June 10, 2020) Despite a revenue slump in March and April because of facility closures, OPA General Manager John Viola reported last week the association still closed its fiscal year on April 30 with a positive variance of roughly $571,000.

During the OPA Board meeting last Wednesday, Viola reported that the financials took a $94,000 hit in April, as revenues were down about $135,000, with part of that made up by a $41,000 decline in expenses.

“We’ve been predicting over $100,000 for the month, so we came in pretty good … in this situation,” he said.

April’s budget projections anticipated revenues of $297,612, which ended at $161,627. At the same time, expenses were estimated at $1,140,176 and closed at $1,098,521 for the month.

Departments operating at a deficit during April were Recreation and Parks at roughly $12,000, Aquatics at approximately $10,000 and golf operations at $70,000.

“If it wasn’t for that, golf probably would have come in favorable to budget for the year, but a lot happened in April,” he said.

Viola said the April figures were helped by positive numbers in the maintenance, public works and the police departments.

Looking at the unaudited fiscal 2019/2020 ending budget numbers, overall revenues of $12.8 million topped the estimated total of $12.5 million, while expenses closed at $12.2 million instead of the projected figure of $12.5 million. The sums combine for an annual positive net operating variance of $571,912.

Viola said numerous departments closed the year ahead of budget including: Recreation and Parks by $69,000, Public Works by $155,000, general maintenance by $226,000, the Yacht Club by $202,000, the marina by $44,000 and the Beach Club by $22,000 with associated parking ending up by $35,000.

OPA Treasurer Larry Perrone reviewed ending fiscal year numbers for OPA laddered investments and reserve account balances.

“The overall laddered investment rate of return on CDARS for April was approximately 1.9 percent,” he said.

Perrone said the association’s coffers ended the fiscal year on April 30 with $12.3 million in cash and investments, including fully FDIC insured CDAR’s totaling $6.1 million, along with roughly $2.35 million in money markets and more than $3.8 million for operating accounts.

Turning to reserve fund balances, Perrone said between replacement, bulkheads and roads the ending fiscal year total was roughly $5.6 million.

This included $3,481,457 in replacement reserves, $1,652,979 for bulkheads and $506,450 for roads.

Perrone said after granting homeowners a 90-day extension for annual assessment fees collected May 1, to this point about $6.3 million of the $9.1 million tally due has been returned.

“We received 69 percent by June 1 but still need 31 percent by Aug. 1,” he said.