Two months into new year, receipts, expenses come in much better than expected

By Greg Ellison

(July 29, 2021) Two months into its current fiscal year, Ocean Pines Association financials are ahead of budget estimates by more than $740,000.

Finance Director/Controller Steve Phillips reviewed departmental budget figures for May and June during the board meeting last Wednesday.

The association’s fiscal year got off to a strong start in May by beating the budget by roughly $533,000. Revenue came in $381,000 over estimates, while spending was $152,000 less than budgeted.

Beach parking was the most profitable amenity during May, closing at about $117,000 ahead of budget.

“Pretty much all these amenities were driven by very heavy membership volume,” he said. “We had people coming out in record numbers in May.”

Golf operations also hit a high mark in May, ending roughly $93,000 ahead of budget.

“It was good weather and people came out to play,” he said.

Other revenue budget-beaters in May were racquet sports at $54,000 and aquatics at $50,000.

Phillips said the aquatics department profited largely from membership sales and entrance fees.

Public works and general maintenance closed May about $49,000 ahead of estimates.

“A lot related to timing of repairs and maintenance [for] some of the drainage and other non–payroll expenses we have budgeted,” he said.

Food and beverage operations reported budget profitability at all three locations during May, including the Yacht Club at $44,000, the Clubhouse Bar and Grille at $24,000 and the Beach Club at $13,000.

“Banquets have been huge and were solid for May,” he said. “There’s a lot of money deposited on hand for future banquets.”

Other budget favorability during May included rec and parks at $31,000, police at $24,000 and marinas at $21,000.

While still ahead of estimates for June, overall profitability dropped by more than half.

The Association closed June $206,000 better than budgeted, with revenues over estimates by $98,000 and expenses under budget by $152,000.

Phillips said food and beverage accounted for the bulk of budget favorability in June at $131,000 over estimates.

Aquatics were the other principal contributor at $69,000 better than budget in June.

“Aquatics continues to have people come out with cash fees … at the door,” he said.

Other favorability in June included public works at $63,000 and golf operations at $38,000.

Beach parking ended June below budget estimates by $74,000.

Phillips said the negative beach parking figures from June are mostly due to seasonal timing and overall remain positive when combined with May figures.