BERLIN – Discussions on the details of the Ocean Pines Association’s nearly $11 million budget began this week.
The association’s budget and finance advisory committee spent much of the week in meetings with Ocean Pines Association General Manager Bob Thompson going over each department’s projected spending plan for the coming fiscal year.
Thompson said difficulties faced in developing the proposed budget included rising healthcare costs and the mandatory minimum wage increase.
“That really created a challenge for us because of the sheer number of employees we have in the seasonal months,” Thompson said.
In all, revenues for the coming year are projected to be $10,920,376 while expenses should amount to $10,742,894.
While some amenities — the marinas, racquet sports and the Ocean Pines Beach Club — are projected to make money, others are not. The Yacht Club is budgeted to lose nearly $88,000 during the next year, while the association’s aquatics program is expected to cost the association $113,000. Recreation is projected to end the year more than $522,000 in the red.
Thompson said the Ocean Pines Volunteer Fire Department was also seeking an increase in funding from the association. He said the department’s yearly revenue was proving to be less than expected.
“Where the gap is we typically make it up,” Thompson said.
To provide that funding, Thompson has proposed a $25 assessment increase for residents. He said $24 of that would go toward the fire department grant while $1 would go toward the association’s operations. Last year, the basic assessment for residents was $909.
Thompson said efforts were being made to generate profit in the departments that were struggling to break even. He said there were plans to implement food sales at some of the community’s pools as a way to boost aquatics revenue. He also said the swim lesson program would continue to grow.
Members of the budget and finance advisory committee questioned rising expenses projected for recreation. Thompson said healthcare costs and the need for additional manpower were to blame.
Committee member Dennis Hudson pointed out that figures showed a substantial portion of those who took advantage of the growing number of recreation programs in Ocean Pines weren’t residents of the community.
“There’s got to be a point at which we stop,” he said. “How do we put the brakes on programs?”
Thompson said some of the programs offered were hosted even though they didn’t make money because of their value to the community, such as concerts. He said limiting those would be a philosophical decision he would leave to the Board of Directors.
“We’re going to continue to develop options for our membership from cradle to grave,” he said.
The Board of Directors is set to review the budget Jan. 26 and 27 at the Ocean Pines Country Club. Adoption of the budget for the fiscal year beginning May 1 typically takes place in February.