By Greg Ellison

As year concludes, revenue up, spending below budget

(May 7, 2020) With one month remaining in the current fiscal year, the Ocean Pines Association operating budget continues to track more than a half million dollars in the black.

General Manager John Viola presented both year-to-date and monthly numbers for March 2020 during the virtual OPA Board meeting on Saturday.

Looking at fiscal 2019/2020 data, which launched on May 1, 2019 and runs through April 30, the OPA was $398,000 ahead of revenue projections and $268,000 under budgeted expenses.

“We’re still favorable over $600,000,” he said. “We were favorable for 11 months versus budget.”

Through the end of March, the OPA net operating tally was estimated at $842,000, while the actual figure sits at about $1.5 million, for a positive variance of $666,000.

“Keep in mind $250,000 of that was already earmarked for the budget for 2021 and we will be fine with that,” he said.

Drilling down on March 2020 figures, Viola said lower than anticipated revenues were offset by reduced expenses to close the month favorable by about $36,000.

“The revenues were unfavorable to budget approximately $60,000,” he said.

During the ongoing covid-19 pandemic numerous departments have been shuttered, with losses in March including about $19,000 at the OPA Yacht Club, roughly $13,000 for aquatics and approximately $12,000 for compliance, permits and inspections.

“It’s across the board,” he said. “The expenses are coming in favorable (so) there is a big offset there.”

Viola said despite numerous amenities being closed due to coronavirus, construction activities have remained on track, with the Golf Clubhouse project on the verge of completion.

“We’re hoping to get the CFO this coming week,” he said.

In addition to fire department officials already completing a site inspection, Viola said the Worcester County Health Department is scheduled to review the project next week.

“It’s looking good,” he said.

Anticipated to be completed this month for a total of roughly $1.6 Million, as of April 27 the total spend for the clubhouse building is about $1.2 million.

“We’re estimating it will come in $1.5 million [and] certainly under $1.6 million,” he said.

Viola said the associated golf cart barn project was wrapped up more than $100,000 under the estimated cost of $430,000, with occupancy paperwork mandated by Worcester County now in hand.

The Ocean Pines Police building project, which was anticipated to wrap up in Sept. at a cost of about $1.2 million, is on track to finish ahead of schedule, Viola said.

Another initiative recently completed was addressing drainage issues near the Borderlinks and golf course.

Groundwork to reduce water runoff issues, which was finished on April 20, came in about $1,000 over the estimated total of $100,000.

“We did do a lot of extra work there,” he said.

Turning to the ongoing governmental covid-19 response, Viola said the OPA has continued to monitor federal and state updates, while sharing the latest developments on its website and social media pages.

“There is no playbook for where we are right now,” he said. “Ocean Pines continues to share information with Worcester County, Ocean City, Berlin and others to supply benchmarking for closures.”