By Greg Ellison

Staff Writer

(Jan. 23, 2020) After the Ocean Pines Association fiscal 2020/2021 budget was reviewed earlier this month by the budget and finance committee, General Manager John Viola repeated the process with the board of directors last Wednesday.

During the board’s fiscal session on Jan. 15, Viola reported the draft budget binders were prepared and delivered by mid-December.

“We used a bottoms up approach with input from all department heads,” he said.

Viola said after considering suggestions from board members, the recommended budget would be published on Jan. 24.

Viola said although not finalized, the assessment charge for next fiscal year should be $981, which would be slightly less than the $986 fee this year.

Stressing financial accountability, while lowering assessment fees, Viola said the budget manages to cover capital projects in a fiscally accountable manner.

“We always tried to reallocate resources, assets or money to try and fund, or right-size our budgets,” he said.

Included in the proposed budget assessment are salary adjustments based on the recently completed compensation study by the Sibson group.

In total, the salary adjustments required to bring staff on par with minimum regional pay scales would add $30 to assessment fees.

This includes $7 to get all employees to the base level, along with $9 to meet mandated minimum law changes.

“We want to get all our employees at least up to the minimum,” he said.

The $30 sum also includes $9 for cost-of-living adjustments and $5 to establish a merit pool to push some staff to the mid-point of salary ranges.

“The point of the Sibson study was not only to get our employees to the minimum, which was needed, was also a recommendation … that key employees should be at the mid-point,” he said.

Additional proposed assessment charges include $13 for assets depreciation, $9 to account for increased medical costs and $19 for bulkhead reserves.

“Last year the board decided to give the association a holiday on the bulk heads,” he said.

Based on continued profitability, the $30 assessment charge for operating deficit recovery instituted this year could likely be offset from elsewhere in the ledgers.

“Last year the board mandated we would pay off the operating deficit over three years,” he said.

“This year, I don’t believe we need it in the assessment because we will take the budget favorability [and] we believe we can cover this.”

Among the department heads presenting budget details were Marketing Coordinator Julie Malinowski, who highlighted cost-cutting measures with previous advertising efforts deemed inefficient, along with savings on printing quarterly newsletters and activity guides.

Looking ahead, the marketing department is proposing targeted website advertising to promote banquet and wedding services offered at the yacht club by the Matt Ortt Companies.

General Manager of Golf Operations and Maintenance John Malinowski, while not proposing an increase for association members, suggested a $5 or $10 higher charge for non-members during peak times for additional revenue.

“It’s easier to raise rates when you have a line and you have people wanting your product,” he said.

Malinowski said nonresident rates, which are currently 30 percent above members, could be prohibitive as few outside players have been noted.

In light of the 36-hole Bay Club Golf Course shuttering last year, Malinowski suggested revisiting the cost differential.

“We probably have a great opportunity now with Bay Club being shut down to pick up some,” he said.

Board member Tom Janasek said between the pending clubhouse project slated to open this spring and updated greens, the association would be able to market a superior product

“Once you play it … it’s a golfer’s course,” he said.

Janasek suggested instituting inaugural rates following the opening of the new clubhouse of $100 more for non-members.

Malinowski said the ideal would be to have the rates closely aligned.

For fiscal 2020/2021 the proposed rates for members was $2,300 for families and $1,315 for individuals, while non-members would pay a $2,990 family rate and $1,710 for an individual.

OPA President Doug Parks said charging the same rates could be problematic for resident buy-in.

Viola said the $100 differential could be employed this year and subsequently revisited to assure effectiveness.

OPA Treasurer Larry Perrone wondered if lower prices would lure in ideal crowds.

“My concern is we will attract the people that want to play golf for $5 a round and get a free hotdog,” he said.

Parks said the rate revision could not be approved that evening, instead requiring a motion and board vote to approve, which OPA Vice President Steve Tuttle proposed accomplishing via email following a formal proposal from Malinowski.

Other proposed golf operation costs include $20,000 for a video launch simulator for club fittings, which could generate $4,000 or more annually and pay for itself in a few years, Malinowski said.

Janasek questioned Golf Superintendent Andre Jordan about a $15,000 price tag to launch a green rebuilding program to generate replacement sod.

Jordan said the plan would involve using a pair of putting greens located in back of the maintenance shop that were not included in the most recent green upheaval.

“They’re a different variety of bank grass than we have on the golf course,” he said.

Ocean Pines Marina Manager Ron Fisher, while not presenting any capital requests, did propose a 4 percent increase to boat slip fees based on area market competition.

Recreation and Parks Program Supervisor Debbie Donahue said initial quotes of $47,000 and $50,000 were received to replace playground equipment at Bainbridge and Robin Hood parks, with two more bids yet to be solicited.

Donahue said other projects proposed for next year include a new entrance sign for White Horse Park and relocating the bocce ball court next to the platform tennis courts at the Manklin Meadows Racquet Sports Complex.

Ocean Pines Fire Department president Dave VanGasbeck, whose staff handles more than 2,000 calls annually, said a renovation committee is in the midst of being formed to address building maintenance issues.

“Our south station is sorely in need of a renovation,” he said.

To reward current fire department volunteers and assist with recruiting new members, Viola proposed forgoing assessment charges for them next year.

“I made an adjustment on assessments to have a holiday this year for 19 eligible members of the fire department who own homes,” he said.

Viola noted the roughly $19,000 cost was offset by savings found elsewhere in the department.

Director of Amenities and Operational Logistics Colby Phillips reviewed ongoing road repairs, noting that of 274 asphalt pathways in the pines only 32 were deemed to be in either poor of fair shape

“We did the absolute worst this fall,” she said.

Viola told the board a primary question last year concerned the average cost of road work.

“We have now established a benchmark of $100,000 per mile,” he said.

Ocean Pines Police Chief Dave Massey said his primary concern is staff turnover.

Highlighting national law enforcement standards that suggest two officers are required per 1,000 residents, based on a year-round populace of 12,000, Ocean Pines would need 24 police members.

“We’re doing it with 16 not 24 … but we need to hold onto those 16 officers,” he said.

Massey said instead of losing staff to state, federal and county police departments, the 19 members who have left in recent years have been hired in either Worcester or Wicomico counties, due in large part to superior benefit packages.

To help remedy the situation, Massey proposed instituting a 5 percent defined benefit pension, which Viola said was included in the $981 assessment calculations.

Parks, who said the board would next convene for budget considerations during a public hearing on Feb. 5 at 5 p.m., agreed that bolstering police benefits is worthwhile.

“It’s a smart investment for a valued resource,” he said.