OPA notches a $43,000 surplus in January

Positive operating fund variance for the year close to $1.1 million

By TOM STAUSS Publisher

The Ocean Pines Association recorded a $43,120 operating surplus in January, roughly half of the surplus in December, but still healthy for a time of year that historically has been known for deficits.

The cumulative surplus for the 2022-23 fiscal year through Jan. 31 $1,079,o14 , with only three months remaining in the fiscal year.

The positive operating fund variance in January resulted from revenues over budget by $18,141 and expenses under budget by $24,706.

The positive operating fund variance through Jan. 31 resulted from revenues over budget by $946,618 and expenses under budget by $132,396.

For the month of January, all amenity departments except beach parking were in the red, as is typical for this time of year.

Amenity departments that outperformed their budgets in January were golf, with a $6,183 positive variance; pickleball, with a $1,453 positive variance; tennis, $620 ahead of budget; and the Beach Club, now closed, ahead of budget by $593.

Departments that were under budget for the month included the Clubhouse Grille, with a

$7,515 negative variance; the Yacht Club, with a $6,842 negative variance; aquatics (-$3,352); platform tennis (-$1,706); with marinas and beach parking more or less break even for the month.

But three quarters into the fiscal year, all amenity departments with the exception of tennis are in the black, and all but the Clubhouse Grille are ahead of budget.

Beach parking remains the OPA’s dominant cash cow, in the black by $498,213 for the year, ahead of budget by $23,215.

Golf is also having a banner year, in the black by $414,588 and ahead of budget by $208,686 through January.

The Yacht Club has a year-to-date net of $301,816, ahead of budget by $91,512.

Marinas recorded a $247,354 operating surplus through Jan. 31, ahead of budget by $35,217.

Next is the Beach Club, in the black by $223,234 and ahead of budget by $87,806.

Aquatics is in the black by $200,875, ahead of budget by $138,027, behind only golf operations in the positive variance to budget metric.

Pickleball continues to be the top performing racquet sport, notching a $61,143 net through January, ahead of budget by $20,548.

The Clubhouse Grille had a positive net of $45,679, under budget by $8,185.

Platform tennis recorded a $747 operating net through January, ahead of budget by $10,726.

Tennis had an operating deficit of $3,256 through January, but that was ahead of budget by $3,281.

The Parks and Recreation Department, funded by a combination of lot assessments and class and program fees, is ahead of budget for the year by $95,805. Its positive variance to budget for January was $11,447.

Most other assessment-funded departments are ahead of budget for the year so far, led by Public Works with a positive variance of $196,135.

Public Works is short-staffed and has had payroll cost savings as a result. The department has been meeting needs by hiring outside contractors, which is also saving money that is reflected in the bottom line.

Also ahead of budget is the Police Department, similarly short-staffed. Its positive variance for the year through January was $97,785.

Reserve summary -- The Jan. 31 reserve summary indicated total reserves of $7.9 million, down from $8.254 million in December and $8.814 million in November.

The replacement reserve balance at the end of January was $5.78 million, with bulkheads and waterways at $964,816, roads at $841,749, drainage at $184,035, and new capital at $130,631.

Balance Sheet -- The OPA’s balance sheet as of Jan. 31 shows total assets of $39.429,122, up from $38,002,041 at the same time in 2022.

Board OKs delinquency interest rate for 2023-24

The Board of Directors at its Feb. 15 monthly meeting unanimously approved a 6 percent annualized interest rate for delinquent accounts, for those property owners who fail to pay their annual lot assessments by the May 1 due date.

There’s a grace period to June 1 before a pro-rated monthly interest rate is levied.

The 6 percent annualized rate has been constant for several years.

Bills will be mailed to Ocean Pines Association members on or about March 15.

They may be paid via credit or debit card with an additional 3.5 percent convenience fee.

Payments may be mailed or dropped off at the

Administration Building in White Horse Park for no additional charge.

OPA still flush with cash

In a report delivered during the Feb. 15 Board of Directors meeting, OPA Treasurer Monica Rakowski summarized the OPA’s cash positions as of Jan. 31.

The OPA had $13.9 million in cash on hand, which was $900,000 more year-over-year. That was a $1.2 million reduction from the Dec. 31 total.

Rakowski said the OPA held $11.1 million in CDRs and $2.8 million in insured cash sweep accounts, money market and other operating accounts.

The OPA continues to benefit from an environment of higher interest rates.