OCEAN PINES – Discussions on wage increases, a new business license fee and department spending plans highlighted a budget review session in Ocean Pines this week.
On Wednesday, the Ocean Pines Association Board of Directors held its annual budget review with General Manager John Viola and department leaders. The coming year’s budget – which proposes revenues and operating expenses of $14.45 million, bulkhead replacement expenses of $1.15 million and capital expenditures of $1.02 million – will take effect on May 1.
“I want to thank John and his team for all the work they did in preparing this budget and getting it to this point …,” said Association President Doug Parks. “At the same time, I want to thank the budget and finance committee for the work they’ve done and the input they’ve given us.”
Late last month, Viola presented the association with the preliminary proposed budget for fiscal year 2023-2024. He told board members this week the revised spending plan featured an $892 assessment for non-waterfront lots and wage increases for association staff.
“We have a recommended budget now of $892, which does include a true-up component, factoring in prior year realized favorability …,” he said. “It also incorporates wage inflation, statutory minimum wage increases and what we call mark-to-market, where we had to make adjustments for different components of the salaries to keep up with the market.”
Under the general administration department, Finance Director Steve Phillips said officials have budgeted $650,000 in surplus transfers, $450,000 in casino funds and $200,000 in interest income. Under expenses, the association has budgeted $140,000 for legal fees, $195,900 for contract services and $50,000 for bad debt.
“That’s way down from a few hundred thousand a few years ago,” he said.
Officials this week also discussed a new license fee of $75 for businesses doing work on homes in Ocean Pines. Director Colette Horn said the fee was recommended by the association’s architectural review committee (ARC).
“The ARC guideline is that you be license and bonded to work in Ocean Pines …,” she explained. “These contractors will say they have a license but when an application is reviewed, they are bogus numbers. One of the benefits is to have this registry.”
Parks, however, said he had concerns about the proposed fee. Board members ultimately agreed to discuss it at their next meeting.
“If we’re adding a layer of administrative oversight, you are going to have to convince me that’s a benefit to the organization,” he said.
The board this week also reviewed budgets from recreation and parks, public works and the police department.
Under police department revenues, Phillips said the association has budgeted $550,000 in county grants and $3,400 in state grants. On the expense side, officials have budgeted $65,000 for overtime, $1.2 million for payroll and $495,000 in payroll costs.
“We did give pay increases this year to get them up to where they needed to be …,” he explained. “We’re doing everything to get them to be competitive with everyone else.”
Officials say they have also proposed wage increases within the association’s aquatics department.
“Looking at payroll expenses, it’s up about 23% over the year before,” Director Stuart Lakernick said. “That’s huge.”
Viola acknowledged the proposed increase was an effort to fill vacant lifeguard positions within the department.
“We will increase the amount of money we will pay,” he explained. “We are trying to chase down lifeguards and this is a big part of it. A big part of it is the payroll increase you are seeing.”
Board members this week reviewed proposed budgets for each of the departments ahead of the spending plan’s eventual adoption. The association’s fiscal year begins on May 1 of each year and ends on April 30 of the next calendar year.
