The Ocean Pines Board of Directors discussed the following items during a budget review meeting at the country club on Tuesday. The board also met on Wednesday to discuss the budget, after press time.
Also present during the meeting were General Manager Bob Thompson, Controller Art Carmine and Budget and Finance Committee Chairwoman Pat Supik.
Also present during the meeting were General Manager Bob Thompson, Controller Art Carmine and Budget and Finance Committee Chairwoman Pat Supik.
IT position
Supik, speaking on behalf of the budget and finance committee, strongly recommended that the association create an information technology position.
Thompson said the OPA had been exploring just that, either by adding a staffer or using a consulting firm. The latter proved to be difficult, he said, because of the limited pool of local consultants and the cost-prohibitive nature of firms based “over the bridge.”
He said the community also had to decide whether it wanted to use a “hosted” or cloud-based system, and that fiber optic cable, recently installed by the county along Route 90, could help bring down costs.
“Sometime this year we have to get it done,” Thompson said, referring to the position. “Are we going to put a stake in the ground this year? Definitely, yes.”
Supik, speaking on behalf of the budget and finance committee, strongly recommended that the association create an information technology position.
Thompson said the OPA had been exploring just that, either by adding a staffer or using a consulting firm. The latter proved to be difficult, he said, because of the limited pool of local consultants and the cost-prohibitive nature of firms based “over the bridge.”
He said the community also had to decide whether it wanted to use a “hosted” or cloud-based system, and that fiber optic cable, recently installed by the county along Route 90, could help bring down costs.
“Sometime this year we have to get it done,” Thompson said, referring to the position. “Are we going to put a stake in the ground this year? Definitely, yes.”
Assessments background
While assessments are projected to rise in the next budget, $22 according to the latest draft, Thompson said that figure was originally a $67 increase in the first incarnation of the 2016-2017 budget. He added that figure was not unusual, as each draft generally works to lower than number.
Last year, basic annual assessments jumped $12 in Ocean Pines.
While assessments are projected to rise in the next budget, $22 according to the latest draft, Thompson said that figure was originally a $67 increase in the first incarnation of the 2016-2017 budget. He added that figure was not unusual, as each draft generally works to lower than number.
Last year, basic annual assessments jumped $12 in Ocean Pines.
Budget background
While Thompson said the Affordable Care Act and increases in minimum wage were driving factors in creating the fiscal year 2017 budget, the main impetus was the Ocean Pines vision statement.
That statement refers to Ocean Pines as a “premier resort community, offering exceptional value and quality of life to property owners who are diverse in age, economic status and interests.”
Directors Dave Stevens suggested the board review statement at some point. Specifically, he took exception to the word “resort.”
While Thompson said the Affordable Care Act and increases in minimum wage were driving factors in creating the fiscal year 2017 budget, the main impetus was the Ocean Pines vision statement.
That statement refers to Ocean Pines as a “premier resort community, offering exceptional value and quality of life to property owners who are diverse in age, economic status and interests.”
Directors Dave Stevens suggested the board review statement at some point. Specifically, he took exception to the word “resort.”
Beach club benefits
Director Cheryl Jacobs proposed the board discontinue a certain perquisite associated with Beach Club Parking passes.
Currently, for $175 a purchaser would get one parking pass, good for an entire 110-day season, along with four passes to the Beach Club pool, also good through the season. To compensate for lost revenue at the pool, last year the association transferred $50,000 from Beach Club Parking to aquatics, which Jacobs said was confusing.
Director Dave Stevens argued that Beach Club parking, a consistent revenue generator in Ocean Pines, was a “somewhat fragile benefit.”
Thompson agreed, but said the association would track which passes were used this year at the pool, and review the policy during next year’s budget process. Last year, he said more than 22,000 people visited that pool.
Director Cheryl Jacobs proposed the board discontinue a certain perquisite associated with Beach Club Parking passes.
Currently, for $175 a purchaser would get one parking pass, good for an entire 110-day season, along with four passes to the Beach Club pool, also good through the season. To compensate for lost revenue at the pool, last year the association transferred $50,000 from Beach Club Parking to aquatics, which Jacobs said was confusing.
Director Dave Stevens argued that Beach Club parking, a consistent revenue generator in Ocean Pines, was a “somewhat fragile benefit.”
Thompson agreed, but said the association would track which passes were used this year at the pool, and review the policy during next year’s budget process. Last year, he said more than 22,000 people visited that pool.
Reserve reservations
Perennially an issue, the directors again debated the logic of the two-column reserve system on Tuesday, including the “legacy” reserves, which Stevens said were poorly defined.
“Stop treating them as separate things, because it serves no useful purpose, and it’s confusing,” he said, adding, “The total amount of money that we’re putting into the replacement reserve … can be reduced significantly, and it will have a direct budget impact.”
Thompson said the legacy funds paid for “major capital items,” which he admitted meant whatever the board wanted it to mean.
The second column, he said, put a spotlight on bigger-ticket items, making them more transparent. Thompson went on to suggest the board wait for the results of the reserve study, which he said was “95 percent” finished, and revisit the matter during next year’s budget debate.
Perennially an issue, the directors again debated the logic of the two-column reserve system on Tuesday, including the “legacy” reserves, which Stevens said were poorly defined.
“Stop treating them as separate things, because it serves no useful purpose, and it’s confusing,” he said, adding, “The total amount of money that we’re putting into the replacement reserve … can be reduced significantly, and it will have a direct budget impact.”
Thompson said the legacy funds paid for “major capital items,” which he admitted meant whatever the board wanted it to mean.
The second column, he said, put a spotlight on bigger-ticket items, making them more transparent. Thompson went on to suggest the board wait for the results of the reserve study, which he said was “95 percent” finished, and revisit the matter during next year’s budget debate.
Question of process
Director Tom Terry asked each board member to make suggestions as Thompson went “tab by tab” through the budget on Tuesday.
Ocean Pines will release a draft of the document during a public meeting on Saturday, and Terry said it would be beneficial for the community to see a budget that was as closed to a finished product as possible.
“The budget and finance committee went through [the budget] in two days and made their presentation,” he said. “We need these two days – today and tomorrow – to mean something. Otherwise, I’m not sure why we’re going through it.
“It’s unfair to go to the public with a budget presentation that ends up being a mile off,” Terry added. “If you’re going to raise an issue later, raise it now.”
Stevens disagreed with Terry’s advice.
“There are major, major issues and were not going to decide them today – or tomorrow,” he said.
The directors were scheduled to discuss the fire department budget, and meet with golf management company Landscapes Unlimited, on Wednesday.
Director Tom Terry asked each board member to make suggestions as Thompson went “tab by tab” through the budget on Tuesday.
Ocean Pines will release a draft of the document during a public meeting on Saturday, and Terry said it would be beneficial for the community to see a budget that was as closed to a finished product as possible.
“The budget and finance committee went through [the budget] in two days and made their presentation,” he said. “We need these two days – today and tomorrow – to mean something. Otherwise, I’m not sure why we’re going through it.
“It’s unfair to go to the public with a budget presentation that ends up being a mile off,” Terry added. “If you’re going to raise an issue later, raise it now.”
Stevens disagreed with Terry’s advice.
“There are major, major issues and were not going to decide them today – or tomorrow,” he said.
The directors were scheduled to discuss the fire department budget, and meet with golf management company Landscapes Unlimited, on Wednesday.