TAKE NOTICE THAT Ocean Pines Board Director Pat Supik will make a motion at the Special Board Meeting on Saturday, Feb. 10 at 12:00 pm to authorize the General Manager to temporarily use 1 million dollars of reserve funds as needed to pay Operating Expenses until receipt of Fiscal Year 2019’s assessment payments in March.
BACKGROUND: Ocean Pines does not have an Operating Reserve. There was a $300,000 plus loss in the Fiscal year ended April 30, 2017 and there is a projected loss in excess of $500,000 for the fiscal year ended April 30, 2018. By Resolution a supermajority of the Board must approve the use of Reserve Funds for operating expenses.
DISCUSSION: Historically, Ocean Pines budgets results of operations and purchase of new capital to net $0 for the year. The assessments collected are sufficient to cover reserve funding and operating expenses plus new capital if the budget is met. If the budget is not met as in the current and prior year there could be insufficient funds in operations to cover operating expenses in the latter part of the fiscal year, namely January and February. Assessment collections begin to flow in March and operating expenses can be covered and the reserve funds reimbursed with this inflow of funds for operations making the use of reserve funds a temporary circumstance.