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Viola updates board on financials

By Greg Ellison

(Oct. 22, 2020) Ocean Pines Association General Manager John Viola updated current year financials and improvements to golf operations during the Board of Directors meeting on Saturday.

Viola said through this September golf remained favorable to budget for the current fiscal year, despite starting behind projections.

“We lost an estimated $150,000 in revenue in May and the beginning of June,” he said.

Course conditions are also undergoing a recent transformation. Viola said the cause of problematic greens has been identified, a plan has been pursued, and the results are becoming evident. He added that the plan is already yielding results.

Board member Tom Janasek asked if the recent grounds work would eliminate black mold that has been visible on the edges of certain greens for a number of years.

Viola said the variety of grass used for putting greens on the course is notorious for developing a thatch layer about three inches below the surface.

“That thatch has developed over time,” he said.

Viola said the grounds maintenance crew is employing Ninja Tines to aerate the greens, which have the added advantage of pulling up excessive thatch.

“Once we break this layer of thatch … that will stop the black mold that you see on top,” he said.

Viola said the subterranean thatch layer also encourages mold development by preventing excessive water from heavy storm systems to drain adequately.

Viola said recent personal changes in golf operations are also likely to positively impact ground conditions.

“We did promote from within a superintendent effective on October 11,” he said.

In addition to promoting Justin Hartshorne to golf superintendent, the next day former staff member Kurt Joseph was hired back to fill the assistant superintendent position previously held by Hartshorne.

“Our golf operations has turned the corner,” he said.

While not available in full until this week, Viola did present an overview of monthly financials for this September.

Viola said net revenues, which were budgeted at $500,000 for September, closed at $575,000 for a positive variance of $75,000.

Expenses, which were budgeted at roughly $1.09 million, closed September at $1.07 million, for a positive variance of about $25,000.

“We were still favorable for September by about $100,000,” he said.

Viola said about $30,000 of that number was  drawn from the golf course and the new Clubhouse Bar and Grille, which began providing patio service in early June.

“Public Works, the police department and recreation and parks were favorable,” he said.

Viola said over the second half of the current budget year, although numerous expenses would be reduced, revenue forecasts would be challenging because of the coronavirus.

OPA Treasurer Doug Parks reported that annual assessment collections sat at roughly $8.59 million to end this September.

“This reflects a shortfall of about $508,000 based on what we had budgeted for assessment collection for all 8,452 homes,” he said.

Parks said while the current total is on par with the approximately 95 percent average collection rate in prior years, the remaining half million plus deficit is significant in light of other revenue reductions.