(Nov. 26, 2020) Ocean Pines General Manager John Viola shared revenue and expense totals through October, while also previewing the forthcoming fiscal year budget process during the Board of Directors’ meeting on Wednesday.

Viola said the finalized September financials showed a positive net operating variance of more than $148,000.

“The bottom line is it’s approximately $150,000 favorable for the month,” he said.

The figure includes approximately $116,000 favorability on net revenues with expenses $32,000 below budget.

Viola said a large percentage of the positive financial picture during September was attributable to cost-cutting measures, while also noting favorability was seen across most departments and was on par with prior year numbers.

Looking at year-to-date numbers through September, net revenues were about $222,000 favorable to budget, with expenses $911,000 under projections for a net operating positive variance of $1,133,000.

Viola noted the positive variance was largely because of the $1.143 million the association received through the Small Business Association’s Paycheck Protection Program.

Viola also reviewed yet to be finalized budget numbers for October that continues the positive trend.

“It’s after October where we usually have a drain on cash and … our expenses,” he said.

Net revenues for October were favorable about $20,000, with expenses under budget by roughly $110,00 for a positive net variance of $130,000.

Viola said Golf Operations was ahead of budget by $17,000 for October, while the Clubhouse Bar and Grille closed the month roughly $15,000 over projections.

He also noted Recreation and Parks finished with $31,000 favorability.

Viola said to continue reducing expenses, after inspecting the association’s fleet of 13 vehicles, Director of Public Works Eddie Wells and Public Works Operations Manager Nobie Violante have recommended a significant reduction.

“We want to auction nine,” he said. “We could probably get $70,000-$90,000 for the trucks and save $3,000-$5,000 each for maintenance.”

Viola said the proposed sale would be presented during the budget process.

“Most are fully depreciated,” he said.

Switching to annual assessment collections, Viola said the number of delinquent accounts, which totaled 601 homes for an overall sum of more than $500,000 to end September, dropped to 549 outstanding to close October.

“The bottom line is it’s improving,” he said. “It’s pretty much in line with last year.”

Viola also updated recent requests for proposals for waste and accounting services.

Bid requests for waste services were sent on Sept. 21, with two received to this point and a due date of Nov. 9.

Viola said those negotiations are continuing and would require board approval.

Accounting services bid requests were mailed on Oct. 12 with a due date of Nov. 2.

Viola said three responses have been received and are being evaluated by staff with recommendations anticipated for the board meeting in December.

Bouncing over to the OPA Racquet Center, Viola reviewed facility improvements currently underway.

Viola said concrete work was completed in a number of areas in disrepair.

“We were able to resurface as opposed to redoing and we did save a lot of money,” he said.

Viola said maintenance work on racquet center bathrooms is being performed by an OPA Public Works employee.

Recent lighting upgrades have been completed with more likely in the future.

“As a next step we’re looking at some lights for the other courts,” he said.

Lastly, Viola said repairs are now complete for fencing and wind screens by the platform tennis courts that were damaged by heavy winds this spring.

Work to address dilapidated fencing between the pickleball and tennis courts is in progress, Viola said.

“There’s a lot of work that needs to be done on those fences,” he said

Viola said to vet a trio of associated fencing repair bids, public works staff formed a work group.

“They came up with an estimate of what we could do in house just to certify the lowest bid we received,” he said.

Viola said the bids varied widely from a low of $8,300 to almost $50,000.

Viola said Violante is in the midst of meeting with the low bidder to confirm project details.

“We’ve run that by the racquet team,” he said.

Looking ahead, Viola also reviewed dates for the next fiscal year budget process.

“The team is fully engaged, on track and if anything ahead of last year,” he said.

Viola said the proposed budget would be delivered to the Budget and Finance Committee by Dec. 18, which has a multiday presentation scheduled for Jan. 6-8.

Following the department presentations, the board is scheduled to hold budget work sessions on Jan. 19-20, with the general manager slated to publish the recommended budget by Jan. 29.

The board will then hold a budget hearing on Feb. 6 prior to final approval on Feb. 20.

“Every department head will be involved in their budget, as well as their number twos, and will be a part of the presentation to Budget and Finance, and of course the board,” he said.