By Josh Davis, Associate Editor

(Oct. 25, 2018) “Every effort should be made to lower the assessment or hold the assessment at the current level,” says a budget guidance draft developed by the Ocean Pines Board of Directors.

The board on Saturday formally accepted a budget guidance document created by the budget and finance committee. Based on a draft document obtained by the Gazette, the directors made several additions of their own.

For one, Director Ted Moroney suggested General Manager John Bailey “use the same collaborative process employed last year in concert with the Budget & Finance Committee prior to submittal to the board of directors.” That appears to be the plan, as the association recently announced several public meetings involving all three parties.

Moroney also called on the association to address recent losses totaling more than $1 million “with a three- and four-year plan to eliminate all prior year losses.”

Association Vice President Steve Tuttle said any increase in assessments should “be clearly justified by appropriate plans, supporting detail, and verifiable spending.”

Previously, department revenue or expense fluctuations of 5 percent or more required justification. Director Frank Daly asked that to be lowered to 2.5 percent.

Also in the budget guidance draft: Bailey is to present a payroll review to the board and budget and finance committee “to include a position analysis of comparable salaries (OC, Berlin & Worcester County), where possible, for positions in the proposed budget.”

Daly asked that salary increases not exceed 2.5 percent.

He also called for “a full business plan for golf operations developed by the GM and Director of Golf that accounts for both the negative impacts of the construction [of the country club] and that positive impact on revenue growth when completed with measurable supporting detail on the activities planned to increase net operating profit.”

Daly added, “I would like to see a full business plan for each fee-based amenity developed by the GM and Director/Department Head with measurable supporting detail on the activities planned to increase net operating profit.”

On food and beverage operations, the board asked for the contract with the Matt Ortt companies “be presented and explained” and that “any actual or anticipated bonuses to Matt Ort should be clearly delineated.”

Moroney asked for capital reserves to be based on the reserve study, which was approved Saturday, and that Ocean Pines develop a plan to start road and bridge repairs “in accord with final [budget and finance committee] recommendations.”

The guidance also called for a “realistic spending plan” for bulkhead repairs and replacement.

Capital items in the guidance included culverts and “under road piping owned by OPA and in failing condition,” repairs of a swim and racquet club tennis court, lighting and exercise stations around the south gate pond, expansion of the sports core pool, replacing the golf cart barn, improvements to the yacht and beach club recommended by Ortt, and restoring the park area at the swim and racquet club.

A first draft of the fiscal 2020 budget was due Oct. 5 and subsequent drafts are due Nov. 2 and Nov. 30.

Bailey is scheduled to present his proposed budget to the budget and finance committee on Jan. 2, with a public introduction to the board set for Jan. 5.

Work sessions with the budget and finance committee are scheduled Jan. 7-9 and a public hearing hosted by Bailey and Treasurer John Viola is slated for Jan. 12.

Board work sessions are set for Jan. 14-16, with a final hearing scheduled Feb. 2.

Final comments related to the budget and budget adoption is scheduled to occur on Feb. 16.