(March 2, 2017) The Ocean Pines Association Board of Directors approved a $13.5 million fiscal year budget for 2018 during a meeting, Saturday.
In the document, total projected revenues are $11.8 million, equal to the amount of operating expenses and transfers. New capital from reserves was about $1.7 million.
Two late changes to the budget were beach club parking passes and 30/60-round golf memberships.
The annual parking-pass fee increased from $175 to $200, with a choice of a family membership to the beach club pool or a $120 swipe card for passes to all Ocean Pines pools included in the cost.
The new 30/60 membership, good for 30 18-hole rounds or 60 nine-hole rounds at the Ocean Pines Golf Course, will be treated as a limited membership allowing the individual who purchases it access to 20 percent golf pro shop discounts and preferred tee times. Guests of the individual cannot use the associated rounds. The fee for membership is $1,290.
Board President Tom Herrick said work on the budget started in October, with interim General Manager Brett Hill, outgoing Controller Art Carmine and new Finance Director Mary Bosack leading the effort.
“The board held many meetings in the last two months and discussed all the issues, and although we had many disagreements … I believe that we all understood the need to compromise for the benefit of the whole,” Herrick said. “All issues and concerns were discussed and decided by a majority up and down vote.”
Herrick said the budget kept the basic annual assessment flat at $921, while “maintaining the high level of services, facilities and amenities for the entire association to enjoy.”
A final vote on the budget passed 5-2. Directors Slobodan Trendic and Doug Parks voted against.
Some who did vote for the budget did so begrudgingly. Vice President Dave Stevens, for instance, called it highly speculative with significant areas of risk.
“I have considerable apprehension, particularly moving into an area of the unknown. We’re going to hire, hopefully [in the next few] months, another general manager who is going to take this up,” Stevens said.
Parks said rising labor costs “across the entire organization” concerned him.
“Apprehension? Yeah, maybe that is the right word,” Parks said. “I just wonder what could significantly change in that investment of an increase of $800,000 in our labor costs.”
Trendic said the association was missing an opportunity to significantly lower assessments. He missed two recent budget discussions because of personal reasons.
“I believe this year we had an opportunity to reduce the annual dues and make a statement to the association members that we are looking at operations on a year-to-year basis and making the assessment dollar number justified based on [that number],” he said.
He said he objected to about $650,000 in recovery reserve funds and what he called a huge spike in labor costs.
“When you add everything up, I believe that we could’ve and should’ve done a better job in producing a reduction in dues,” he said. “That has not happened.”
Director Pat Supik argued reducing assessments was not sensible because that money was needed to maintain Ocean Pines facilities.
“The police department, the fire department, parks and rec, public works, maintenance – that’s where our money goes,” she said. “I’m not sure where we’re going to reduce those services for the community – I’m not sure that’s reasonable.”
Before being elected last year, Supik served as chair of the budget and finance committee for two years.
“What I heard loud and clear in my first budget [as a director] is that we have not been doing enough in some of the areas of service,” she said. “Our public works and maintenance should be clearly stepped up a notch – or two or three, which I think is where a lot of the money for the staff is.”
In the document, total projected revenues are $11.8 million, equal to the amount of operating expenses and transfers. New capital from reserves was about $1.7 million.
Two late changes to the budget were beach club parking passes and 30/60-round golf memberships.
The annual parking-pass fee increased from $175 to $200, with a choice of a family membership to the beach club pool or a $120 swipe card for passes to all Ocean Pines pools included in the cost.
The new 30/60 membership, good for 30 18-hole rounds or 60 nine-hole rounds at the Ocean Pines Golf Course, will be treated as a limited membership allowing the individual who purchases it access to 20 percent golf pro shop discounts and preferred tee times. Guests of the individual cannot use the associated rounds. The fee for membership is $1,290.
Board President Tom Herrick said work on the budget started in October, with interim General Manager Brett Hill, outgoing Controller Art Carmine and new Finance Director Mary Bosack leading the effort.
“The board held many meetings in the last two months and discussed all the issues, and although we had many disagreements … I believe that we all understood the need to compromise for the benefit of the whole,” Herrick said. “All issues and concerns were discussed and decided by a majority up and down vote.”
Herrick said the budget kept the basic annual assessment flat at $921, while “maintaining the high level of services, facilities and amenities for the entire association to enjoy.”
A final vote on the budget passed 5-2. Directors Slobodan Trendic and Doug Parks voted against.
Some who did vote for the budget did so begrudgingly. Vice President Dave Stevens, for instance, called it highly speculative with significant areas of risk.
“I have considerable apprehension, particularly moving into an area of the unknown. We’re going to hire, hopefully [in the next few] months, another general manager who is going to take this up,” Stevens said.
Parks said rising labor costs “across the entire organization” concerned him.
“Apprehension? Yeah, maybe that is the right word,” Parks said. “I just wonder what could significantly change in that investment of an increase of $800,000 in our labor costs.”
Trendic said the association was missing an opportunity to significantly lower assessments. He missed two recent budget discussions because of personal reasons.
“I believe this year we had an opportunity to reduce the annual dues and make a statement to the association members that we are looking at operations on a year-to-year basis and making the assessment dollar number justified based on [that number],” he said.
He said he objected to about $650,000 in recovery reserve funds and what he called a huge spike in labor costs.
“When you add everything up, I believe that we could’ve and should’ve done a better job in producing a reduction in dues,” he said. “That has not happened.”
Director Pat Supik argued reducing assessments was not sensible because that money was needed to maintain Ocean Pines facilities.
“The police department, the fire department, parks and rec, public works, maintenance – that’s where our money goes,” she said. “I’m not sure where we’re going to reduce those services for the community – I’m not sure that’s reasonable.”
Before being elected last year, Supik served as chair of the budget and finance committee for two years.
“What I heard loud and clear in my first budget [as a director] is that we have not been doing enough in some of the areas of service,” she said. “Our public works and maintenance should be clearly stepped up a notch – or two or three, which I think is where a lot of the money for the staff is.”