By Greg Ellison

(April 9, 2020) While future financial challenges from the covid-19 pandemic are yet unknown, last week the Ocean Pines Association reported both favorable budget numbers during February and strong reserve fund balances.

General Manager John Viola presented current fiscal year ending totals for February during the OPA Board meeting on April 1.

Despite the cold weather time period, during February the association recorded revenues favorable to budget by roughly $28,000, with the current year totals for the month just over $174,000 compared to an estimated figure of about $146,000.

Positive returns were also seen on the expense side, which closed February approximately $33,000 below expectations, tracking at roughly $789,000 to beat the budgeted tally of about $822,000.

Those figures combined for a positive net operating total of roughly $61,000 for February.

Turning to cash on hand and short-term investments, OPA Treasurer Larry Perrone presented the fiscal totals to close February.

Perrone said the association ended February with approximately $9.7 million in cash. The sum includes $4.8 million in fully insured CDARs, with $4.9 million split between money markets and operating accounts.

“The overall laddered investment rate of return for February was approximately 2.3 percent,” he said.

Looking at reserve fund totals, including replacement, bulkheads, and roads, through the end of February, the overall balance of $7.6 million is marginally lower than the $8.8 million on hand when the current fiscal year started on May 1.

Perrone said fiscal 2019/2020 opened with about $5.2 million in replacement reserves, roughly $2.5 million for bulkheads and about $1.1 million for roads.

Though February the numbers balanced at roughly $4.8 million in replacement reserves, about $2 million for bulkheads and just over $800,000 for roads.

Looking to the end of fiscal 2019/2020 that closes on April 30, Perrone said reserve accounts are forecast to close at just over $5 million, including balances of $1.2 million for bulkheads and approximately $523,000 for roadwork.

“Our replacement reserve account, taking into consideration what we have spent and anticipate to spend on our projects, will have it at a balance of $3.2 million,” he said.