Recommended Budget for Fiscal Year 2019-2020 Released

The Ocean Pines Association announced on Friday, Jan. 25 the release of the Recommended Budget for fiscal year 2019-2020 (FY19-20) that “will accomplish many things that will be new to the Association’s budget and very good for the long-term health of the Association.”

That’s the upside, according to General Manager John Bailey’s executive summary; but the downside is that to fund those items, there is now recommended to be a significant increase in the annual assessment.

“In order to understand these major considerations, and to generally understand the entirety of the budget, one must look strategically at what the recommended budget accomplishes and how it creates a foundation for a healthy future – financially and for an improvement in the maintenance, and thus value, of the community’s assets,” Bailey explained in the executive summary.

The Recommended Budget for FY19-20 includes the “full, properly calculated reserve contributions; updated and current depreciation calculations; funding of over $600,000 in new capital (for the Police Department/Admin building; and a room addition at the Sports Core pool); deferred operational maintenance; and drainage,” according to Bailey.

For more details on the Recommended Budget, please see the attachments that are found at this link.

The recommended assessment for FY19-20 is $1,078. It would be a $127 increase or 13.4% over the current amount of $951.

Bailey reminds the Membership that “as the budget schedule indicates, this is a process, a collaborative one. We started with staff and the General Manager to create multiple drafts leading to a Proposed Budget. We have had three Budget & Finance Committee budget work sessions, a member hearing on the Proposed Budget, two Board of Directors budget work sessions, and lots of effort by many members, committees, and staff. We now have a Recommended Budget. The Board of Directors will conduct a member hearing next Saturday, February 2, in the Assateague Room. The hearing will begin at 10:00 am. The Board of Directors will hear your comments and will then take two weeks to provide the General Manager with budget adjustments they would like to consider. Amendments to the Recommended Budget will be voted on by the Board on February 16, at which time the Board of Directors will adopt the Final Budget and set the annual assessment for the next fiscal year. Please do share your thoughts with the Board by attending the member hearing and/or by email at directors@oceanpines.org.”

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