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Budget committee receives strong numbers

Ocean Pines Association Treasurer Larry Perrone

By Greg Ellison

Staff Writer

(Oct. 31, 2019) The improved financial situation of the Ocean Pines Association continued through September, with overall positive budget numbers for the month, Ocean Pines Director of Finance Steve Phillips reported to the Budget and Finance Advisory Committee last Wednesday.

Net operating costs for September, budgeted at more than $630,000, wound up running just a little more than $576,000, for a positive monthly variance of $57,788.

Phillips also reported that net revenues for September exceeded the budget projection by $48,435, with receipts totaling $523,000 versus the $475,000 budgeted.

Tracking year-to-date figures for fiscal 2019/2020 that started on May 1, Phillips said the operating fund is $517,611 ahead of budget projections.

The variance of more than a half-million dollars is a combination of revenue exceeding budget by $460,717, with total expenses under budget by $56,894 to this point in the fiscal year.

Phillips said the strong financials are largely driven by amenities, most notably the yacht club.

To this point in the fiscal year, the yacht club is reporting net revenues more than $347,000 above budget, while expenses are running about $116,000 above estimates, for a positive operating variance of $180,703.

During September, yacht club wages finished about $16,000 under budget, while net revenues topped projections by about $80,000.

“Wages are right on what was spent last year … even though the top line is up,” he said.

The seasonally related labor savings during September at the yacht club leave wage costs, which currently total more than $548,000, roughly $12,000 under budget for the year.

OPA Board member Larry Perrone noted yacht club banquet sales figures have increased over last year’s totals so far.

“The banquet numbers are up as we expected they would be,” he said.

During September, banquet sales were about $3,000 better than budget, adding a smidgen to the more than $103,000 positive variance for the year.

Phillips also highlighted strong financial numbers for marina operations.

“They’ve put up record sales,” he said.

September revenues beat budget projections by more than $9,600 to put the operation ahead overall by more than $8,400.

This continues a lucrative season for marina operations, with revenues after expenses ahead of budget by nearly $50,000 for the current year.

Teeing up links data, Phillips said despite not making budget by $5,000 for September, combined golf operations has trended positively for the year, with net revenues of almost $870,000 topping projections by more than $60,000, leaving net operations ahead $30,624 after expenses.

During the current fiscal year, golf operations report net revenues of $869,796, which significantly outpaces the $640,827 earned at this point in 2018.

Turning to reserve funds, Phillips reported as of Sept. 30 the trio of replacement, bulkheads and roads funding was more than $10.2 million.

Reserve funding totaled more than $8.8 million to begin the fiscal year, with subsequent additions including about $2.5 million from assessments, roughly $126,000 from interest income and $325,000 in casino funds. On the flip side of the ledger, deductions included about $572,000 for bulkheads, just over $900,000 to finance capital projects and more than $117,000 for road repairs.

Keying on the most vital spreadsheet column, Phillips noted the year-to-date variance of more than $517,000 leaves net operations in the black by more than $5.4 million, which outpaces the $4.3 million total at the end of September 2018 by $1,075,044.