OPA off to strong start with $150,000 May surplus

Amenity membership revenue exceeds budgetary expectations

By TOM STAUSS

Publisher

The Ocean Pines Association opened its new fiscal year in May with a strong performance, on the heals of a $1.15 million projected surplus for the year ending this past April 30. The May operating surplus was $150,230, on revenues that were over budget by $84,819 and expenses that were under budget by $65,411.

Notable were a better than budgeted performance in membership revenue, the result of “organic growth” that General Manager John Viola likes to talk about. Organic growth includes net increases in the number of prepaid annual memberships, rather than revenue increases resulting from higher dues.

According to the May financials posted by Controller/Director of Finance Steve Phillips on June 24, all the membership amenities exceeded their budgeted membership revenues for the month.

Beach parking pass sales produced $353,198, ahead of budget by $10,377.

Golf brought in $172,225 in membership revenue, compared to the budgeted $157,114, a $41,812 positive variance.

Aquatics earned $270,735 in membership revenue, compared to the budgeted $236,128, a positive variance of $34,607.

All three racquet sports also brought in more membership revenue in May than budgeted, led by pickleball, with $56,215 in membership revenue compared to $50,165 budgeted, a $6,050 positive variance.

Tennis earned $30,875 in membership revenue against $19,905 budgeted, a positive difference of $10,970.

Platform tennis with $13,558 in membership revenue outperformed its budgeted $12,282 for a positive variance of $1,276.

For the month, all amenities except for the Beach Club were in the black.

Compared to budget, all three racquet sports, aquatics, golf, the Clubhouse Grille and beach parking had positive variances, while the

Beach Club, Yacht Club and marina all missed their budget targets.

Golf had a stellar month, with net earnings of $339,775, ahead of budget by $44,964.

Aquatics also outperformed, with a net of $240,209 and $31,650 in a positive variance to budget.

Marinas generated $192,170 in net revenue, missing budget by $14,866.

The Yacht Club was in the black for the month in the amount of

$24,934, but that missed budget by $12,396.

The Clubhouse Grille performed well, with a net of $23,835 and a positive variance to budget of $7,198

The Beach Club got off to a slow start with an operating deficit of $10,171 and a negative variance to budget of $15,722.

All three racquet sports were in the black for the month and were ahead of budget. Pickleball had a net of $55,075, with a $6,952 pos- itive variance to budget. Tennis earned $23,593 for the month, with a $6,732 positive variance.

Platform tennis generated $10,599 in net earnings, with a positive variance to budget of $814.

Reserve summary -- The May 31 reserve summary shows the normal infusion of funds from the annual assessment. The $6.69 million April 30 balance climbed to $9.66 million at the end of May.

The replacement reserve balance was $6.54 million, with bulkheads and waterways at $1.52 million, roads at $1.07 million, drainage at $385,771 and new capital at $144,753.

There was no balance sheet included with the May financials, but total cash and investments as of May 31 stood at $18.456 million