By Greg Ellison

(Aug. 27, 2020) Three months into the current fiscal year, the Ocean Pines Association financial picture looks solid, with July ending $318,000 in the black and a year-to-date variance of $930,000.

Finance Director Steve Phillips reported the association’s operating fund closed July ahead of budget by $318,074, which was comprised of revenue figures ending $326,104 over estimates and total expenses $8,030 over budget.

With fiscal 2020/21 now one quarter completed, the association continues trending in the black with a positive operating fund variance of $930,596. Included in this figure are revenues topping estimates by $95,596 and expenses remaining under budget by $835,000.

Fiscal 2020/21 year-to-date revenue highlights include assessments currently slightly outpacing the $9,126,000 by $1,000.

Year-to-date amenities net revenues are $796,000 off pace, with actual numbers of $2.1 million falling short of the $2.9 million budgeted total.

Recreation and Parks ended July $158,000 in the red, with $52,000 in revenues falling short of the $210,000 budgeted tally.

Overall, revenues totaled $12.6 million at the end July, which was $112,000 above estimates.

After factoring in transfers to reserve accounts, which totaled $3.2 million, or $14,000 above the estimate, net-operating revenues were $9.4 million, or just shy of $100,000 above the budget projection.

Turning to operating expenses, amenities closed July at a little less than $1.2 million, for a $507,000 savings from the original estimate.

In a similar vein, Recreation and Parks’ associated expenses totaled $148,000 at the end of July, which is $117,000 below budgeted totals of $265,000 for the year to date.

Public Works has also trended positively in terms of expenses, with the $319,000 total below estimates of $460,000 by $141,000.

Operating expenses totaled $2.9 million three months into the current fiscal year, which is roughly $833,000 under the budgeted amount.

In the departments, General Administration revenues for July ended over budget by $387,391 for the month primarily tied to $398,119 in funding from the Paycheck Protection Program instituted by the Small Business Administration because of the covid-19 pandemic.

Year to date PPP funding of $1,050,619 has been recognized within General Administration, with the totals likely forgivable by the Small Business Administration.

On the expenditure side, General Administration was $103,655 over estimates for July, largely due to $100,000 earmarked to pay down prior bad debt.

Recreation and Parks recorded revenue totals $48,816 below budget estimates during July, including lower sums for Camp Ocean Pines of $16,325, special events of $19,000 and $9,000 less than anticipated in donations.

Revenue shortfalls of $109,803 were also evidenced in Aquatics during July, tied to dues reductions of $24,525, swim classes falling short by $22,012, cash sales lowered by $23,551 and coupon sales dipping by $37,602 under estimates.

The Ocean Pines Beach Club was $22,016 under revenue estimates for July, largely based on a $20,130 drop in food sales.

Positive revenue variances for July were found in Golf Operations, which closed the month $25,694 over estimates, including higher-than-anticipated totals of $4,300 in green fees and $19,216 from cart rentals.

Marinas ended July $36,495 over monthly revenue estimates, with fuel net sales netting $33,837 more than anticipated.

The Yacht Club had July revenue totals that topped estimates by $43,662, including $37,072 in food sales and $9,544 for beverages.

Looking at prior year comparisons, net revenues of $9.4 million were $95,596 better than expected.

With total expense of $2.9 through this July, the OPA is $835,000 below the budget forecast at this point in 2019.

Net operating totals ended July at $6.5 million, which outpaces the $5.8 million figure to close last July by $930,596.