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Golf budget irks Pines committee

Budget and Finance Chairwoman Pat Supik met with the Ocean Pines Board of Directors on Tuesday to discuss a lengthy list of recommendations, developed by the committee, for the fiscal year 2017 budget.
The majority of the recommendations were minor, and Supik said the committee’s meetings on the budget, held last week at the country club, went smoothly.
What did not go smoothly, apparently, was the committee’s review of golf operations. Supik said the group had problems following the business plan and projections provided by golf management company Landscapes Unlimited.
The committee said the budget worksheets were not consistent, the business plan did not “support or clarify” budget numbers, and the information provided was “difficult to analyze” and compare with previous budgets.
The “business plan, which was quite lengthy, did not present a clear picture of LU’s plan to achieve its revenue and expense goals,” the committee wrote, adding that oversight of golf was “fragmented” and caused “accountability and responsibility confusion to LU and Ocean Pines management.”
The committee recommended golf oversight become the “responsibility of Ocean Pines General Manager.”
On employee benefits, the committee said the percentage of costs were too high as compared to overall payroll, at 36 percent. Budget and finance cited a Bureau of Labor Statistics study, which showed benefits averaging 31.5 percent of total payroll costs.
Benefit costs were even higher at public works, the committee said, accounting for 58 percent of total payroll. A “thorough analysis” was recommended.
Other areas of concern included parks and recreation. According to the budget and finance report, Worcester County spends an average of $32.88 per resident to provide parks and recreation services, while Ocean Pines spends $73.32. To narrow that gap, the committee recommended raising costs for nonresidents.
The committee also singled out one capital purchase, recommending a $20,000 scissor lift included in the budget not be purchased, and called for the continued funding towards replacement and “legacy” reserves, which were previously known as the “five-year” funding plan.
According to the committee’s report, reserves account for $348 of the annual assessment, including a proposed $21 increase for legacy reserves in the fiscal year 2017 budget.
One area of concern the directors echoed during the meeting was the timeline with which the association develops its budget. The general manager starts his process in September, but receives budget guidance from the board two months later.  
“I think it’s a topic worthy of board discussion to make the cycle really effective,” Supik said on Tuesday.
She said if her committee drafted its recommendations earlier, in July rather than September, the board could start work on its suggestions during the orientation meetings in August.  
“Actually, I think that’s a good suggestion, that the budget and finance committee could have their guidance for the next year’s budget available for the orientation. I think that’s a good idea,” Director Tom Terry said.