CAPTAIN’S COVE CURRENTS

that does not result in long-term adverse outcomes on which we hope to be a short-term issue,” Senior General Manager Colby Phillips said in a June 23 statement to the Cove Currents.

She declined to specify options under consideration when pressed to do so.

But some cost-cutting measures have already been implemented.

Hours of operations at the Cove swimming pools have been cut back, as have hours when the reception desk at the Marina Club is staffed. It’s also possible that some live entertainment at the Marina Club on weekends have been scaled back, as fliers for live acts for some weekends have not been released.

Hearn in recent comments to the Cove Currents said the CCGYC cash position has improved somewhat from robust revenues at the Marina Club restaurant with the arrival of summer residents.

But he said that unbudgeted legal expenses continue to loom large, and that a key component of improving the association’s cash position should be the voluntary dismissal of pending litigation.

For the fiscal year that begins this Oct. 1, Hearn said that if the litigation continues to bleed association resources the only recourse will be to raise annual dues more than would otherwise be necessary.

He said that dues of $1800 per year, $300 more than the current $1500, would not be out of the question.

Meanwhile, though, the association’s financial condition is not so dire that a $500,000 CD with Taylor Bank would be tapped to help with ongoing expenses, he said.

“There is a normal fluctuation in our cash position, depending on the time of year,” he said. Cash improves right after invoices in the spring and fall are sent out.

Hearn said that in his view reducing salaries of the Cove’s top managers as a cost-cutting measure is not realistic.

There might be some consolidation of positions at the lower levels, he said.

While CCGYC salaries might be higher than smaller property owner associations on the Shore, Hearn said they’re not out of line when compared to larger HOAs in Worcester County.

In addition, he said that Cove department heads perform many tasks, including those that in some organizations of similar size are handled by human resources personnel and administrative support staff.

“We don’t have those,” he said.

As examples, he said that Phillips has been spending a lot of time working with the association’s in- surance consultant and broker on bringing the association’s insurance policies up-to-date, while General Manager Justin Wilder continues to focus on debt collection and compliance issues involving the Environmental Control Committee.

“All of this takes a lot of time, and they’re both doing an outstanding job in these areas,” Hearn said. Cost-cutting decisions will now be made by a Board of Directors without Hearn and directors Jim Silfee and Michael Glick casting votes.