By Greg Ellison

(Nov. 26, 2020) Ocean Pines Treasurer Doug Parks reviewed short-term investments, current reserve account balances and the status of homeowner assessment collections during the Board of Directors meeting on Wednesday.

Parks said to close September the association had approximately $13.4 million in cash and investments, which includes $7.1 million in CDARs (Certificate of Deposit Account Registry Service) and $6.3 million split between money market funds and other operating accounts.

Parks said the overall laddered investment rate of return on CDARs during September was approximately 1 percent.

“It was 1.8 percent last month,” he said.

While not a cause for alarm the downward trend deserves monitoring, Parks said.

“It is an indication that we have to watch that closely,” he said.

Parks said the association’s total balance had changed minimally from the end of August when the figure sat at $13.8 million.

Switching to annual assessment collections, Parks said outstanding balances have continued to dwindle after association members were granted an extended period to pay earlier this year due to covid-19.

“At the end of October we collected a total of $8.7 million of $9.2 million,” he said. “We’re at 95 [percent] which compared to other years is about where we expect to be.”

Parks said in prior years between 96-98 percent of assessments were eventually remitted.

“It still represents a $409,000 shortfall,” he said.

“I encourage those that can still pay to do so, so we can meet our budget requirements.”

Looking at reserve account balances to end September, including replacement, bulkheads, roads and new capital, Parks said the ending balance was relatively unchanged from August.

“The balance was $5.6 million at the beginning of the fiscal year,” he said.

With no capital expense requests during September the reserve accounts balance closed at $7.1 million.

“We are keeping track of all of spends associated with reserve accounts,” he said. “Both planned and unplanned.”

Parks said the association is shooting for a reserve account balance of $5.1 million to end the current fiscal year.

“That’s our target number, should anything happen that would require an emergency spend … we would have to consider amending,” he said.