OPA reserve balance improves by $600,000 year-over year

Grows from $6.1 million to $6.7 million as of April 30

By TOM STAUSS Publisher

One of General Manager John Viola’s favorite barometers of Ocean Pines Association’s financial health is the condition of its reserve funds.

The April 30 end-of-year snapshot of the reserves, still subject to the annual audit, indicates a reserve balance of $6.7 million, as compared to the $6.1 million a year earlier, or a $600,000 yearover-year improvement.

The end-of-year balance occurred even after $3.8 million in reserve expenditures in 2022-23, according to a graphic presented during Viola’s general manager’s report at the June 17 Board of Directors meeting.

Roughly two thirds of the improved reserve balance resulted from an increase in the replacement reserve from $4.8 million on April 30 of last year to $5.2 million a year later.

This particular reserve fund collected $1.9 million in annual lot assessment revenue, but the OPA only spent about $1.5 million from this reserve throughout the year, resulting in a $400,000 year-over-year improvement.

According to the graphic, the OPA’s roads re-

Membership spike

From Page 42 result in fewer aquatics memberships, not more. serve grew by $700,000 year-over-year, while the drainage reserve, reflecting $600,000 in expenditures, decreased $500,000 during the year.

As of May 31, there were 265 couples summer memberships and 49 couples yearly memberships sold, a total of 314, with revenues of $79,500 and $28,175 respectively.

Family summer memberships sold year-overyear dropped from 377 as of May 31 last year to 138, a decrease of 239 memberships, while family memberships dropped from 69 to 36, a difference of 33. The combined total year-over-year reduction in family memberships was 272.

The total number of couples memberships sold, 314, more than offset the decrease in family memberships.

Through May 31, this “organic” growth can be quantified at 42.

Also notable in Aquatics: Memberships from those who neither live nor own property in Ocean Pines is on an upswing. The organic year-overyear growth is 22 memberships.

The numbers indicate that, so far at least, challenges in meeting lifeguard hiring goals and anticipated reduction in hours of operation in some pools this summer does not seem to be negatively affecting overall net membership.

Golf memberships, with a year-over-year increase from 94 to 103, are already at 104 percent of their revenue goal for the year. Lifetime memberships remain at 14. Cart packages are roughly even year-over-year.

In the racquet sport arena, tennis is holding its own with 60 memberships sold as of May 31, one more than the same time a year ago.

Platform tennis is showing a modest increase year-over-year from 56 to 63, but that is 102 percent of the revenue goal of $13,200.

Pickleball remains the most popular racquet sport, with 227 memberships sold as of May 31 this year compared to 212 a year. Pickleball revenue is 99 percent of the $56,865 goal.

Total combination racquet memberships have increased by two, from 25 on May 31 of last year to 27 a year later.

As of May 31, total racquet sports are 97 percent of goal.

Total amenity memberships sold as of May 31 this year have reached 3,151, compared to 3,073 a year prior. That’s “organic” growth of 78 memberships year-over-year.

Amenities sold through May 31 have generated $957,230, or 87 percent of goal, with another $146,070 needed to reach the year’s membership budget of $1,103,300.

Balanced expenditures and revenues of $1.1 million in the bulkhead and waterways reserve left that reserves balance at $500,000 on April 30.

Similarly, the new capital reserve remained at $100,000 a year’s end, reflecting expenditures and revenues during the year of $200,000.

The OPA earned $500,000 in casino funds during the year, with $400,000 allocated to the roads reserve and $100,000 to drainage, according to the graphic.

OPA cash position on May 31 improves to $18.5 million

Boltstered by annual assessment revenue, which is booked in the first month of a new fiscal year, the Ocean Pines Association’s cash position improved in May over April’s by about $800,000, OPA Treasurer and Director Monica Rakowski reported during the June 18 Board of Directors meeting.

As of May 31, the first month of the 202324 fiscal year, the OPA had about $18.5 million in cash on hand.

That was about $800,000 more than April’s total but about $100,000 less than the same time last year.

Rakowski reported that $11.1 million was invested in CDARs as of May 31, with the remaining $7.4 million in an insured cash sweep account, money market and operating accounts, diversified between two local banks.