May financials solid, several construction projects remain on track

(July 6, 2020) General Manager John Viola, during his July 1 report to the Ocean Pines Board, said several major initiatives remain on track.
 
Viola also had good financial news, with the new fiscal year starting off positive compared to the budget. 
 
First, he said renovations to the Police and Administration building are scheduled to finish in September, with both projects tracking on or under budget. He showed off several photos of the renovation during the meeting, including the new Police front entrance and dispatch office, and all-new lockers and officer workstations. 
 
Implementation of Northstar financial software is still ongoing, with the target date to finish now being the end of the fiscal year. Staff met on June 30 to offer updates, and Viola said progress is being made across all departments and with the point-of-sales system being used. The implementation work was budgeted to cost $400,000. 
 
“I have reported over the last several months that we will probably go over that amount … [but] progress is being made,” Viola said. 
 
In a maintenance report, Viola said restaurant equipment at the Beach Club was serviced ahead of opening for the season, with Public Works crews also cleaning in and around the facility.
 
Public Works also fixed a water leak and did other work at the Racquet Center, serviced equipment at the Yacht Club, drained, power-washed and filled all five pools, and serviced several items at the Golf Club. 
 
“Now that … the construction is pretty much getting completed, the team has been focusing on maintenance, which is a priority,” Viola said. 
 
He said all Ocean Pines playgrounds are now open, except for the White Horse Park basketball courts, and that reopening of Recreation and Parks programs are going well. He said sports camps would start this month, under CDC guidelines because of the COVID-19 pandemic,  and youth summer camps already in progress are well attended. Business at the new craft building, he said, is booming. 
 
Also strong is activity at the marinas, Viola said, and he announced the Ocean Pines Chamber of Commerce’s annual Flounder Tournament would be held at the Yacht Club Marina, on Aug. 1. 
 
He added all five pools are now open and pool members are being granted early access to pools, during the first hour of operation. Occupancy at the pools has been limited, based on mandates from Gov. Larry Hogan. 
 
“All the updates I received from the team … have been positive,” Viola said. “I just want to thank all the members of Ocean Pines … I know it’s not the easiest thing, but I think everybody has worked really well to make [reopening] a success.”
 
On the financial side, Ocean Pines posted positive numbers in May, the most recent report available as of the July 1 meeting. COVID-19 had an impact on revenues, off budget about $370,000, but that was offset by savings on the expense side, positive by roughly $462,000. Overall for the month, the Association was just over $92,000 ahead of budget.
 
“Obviously, with the COVID-19, our amenities weren’t open on May 1, so there was a situation there [related to revenues],” Viola said. “Expenses are down and favorable … and hopefully [that] will continue.”
 
General Administration, Public Works, General Maintenance, Public Relations and Police were favorable for the month, with a significant favorability in administration related to federal funds received through the Paycheck Protection Program, Viola said. 
 
To view the May financial report, visit /documents/20124/118434/OPA%20May%202020%20Financials.pdf/6a874b7b-ecf8-bdf1-493e-1a68f3366352.
 
Treasurer Larry Perrone added that total reserves, as of May 31, were about $8.3 million, including $5.2 million in replacement reserves, $2.2 million in bulkheads, $700,000 in roads and $200,000 in new capital funds. 
 
That total projects to drop to roughly $4.674 million by the end of the fiscal year, April 30, 2021, because of budgeted spends related to the the Police and Administration renovations and several other projects, as well as scheduled bulkhead and road repairs. 
 
To view slides from the meeting, visit /documents/20124/91011/7-1-20%20Meeting%20Power%20Point_1.pdf/76eef380-d455-dc2e-1326-bd9fae65595a.
 
To view video of the meeting, visit https://youtu.be/OGSqfCSxmf4.