FY2022 surplus lets board cut $100 off last year’s bill for non-waterfront property

By Greg Ellison

(March 3, 2022) Eclipsing a fiscal high note reached only once before, the Ocean Pines Board of Directors last week approved the association’s FY23 budget cut assessments by $100 for non-waterfront properties.

Speaking during the board meeting last Wednesday, Association President Colette Horn said assessment fees were cut to a lesser degree in 2014.

“The last time our assessment was reduced was in 2014 in the amount of a $5 reduction,” she said.

Horn said the approved budget represents a rare occurrence in the history of the Pines.

“Today is going to go down in history…” she said. “We are looking at taking … the base assessment back to the amount that it was in pre-2015.”

Assessment fees for FY23 were set at $896 for non-waterfront lots, down from $996 this year.

Also, waterfront rates were set at $1,511, non-water estate rates at $1,344, water estate rates at $2,267 and water non-bulkhead at $986.

Revenue projections for FY23 are $13.9 million, compared to revenue estimates of $14.1 million for the current budget year.

Total expenses projected for the same $13.9 million in FY23 represent a slight uptick from the $13 million estimate for FY22.

Funding of $1.1 million for bulkhead, drainage and replacement reserves, plus capital expenses of $1.3 million, are also included in FY23 budget numbers.

Horn praised General Manager John Viola and association team members for their work to cut costs for residents.

“I want to thank this board and the previous board for providing the leadership and support that made those improvements possible,” she said.

For his part, Viola said the one-time assessment reduction introduced this year, could be repeated in subsequent budget cycles based on profitability.

“That line item … that one-time assessment reduction from current surplus, I’ve recommended that we continue this line each year,” he said.

Breaking down the $100 figure, Viola said now fully realized operating surplus from FY21 totaling $650,000 accounted for $77 of that sum.

Also higher revenues from amenities, including golf, aquatics, racquet sports, beach parking and recreation and parks, chopped another $66 from assessment rates.

Further cost cuts were tied to decreased contributions to general replacements, lowered bad debts, changes in food and beverage income and decreased legal fees that in total took $36 off assessment rates.

Tipping the scale in the other direction, increased Fire Department funding adds $38, association salary raises adds $32, while property and liability insurance rate hikes add $7 and $2 to cover costs for a potential referendum vote.

On a related note, board members also approved retaining the 6 percent interest rate for delinquent payments in FY23.