Ocean Pines Association committee members reviewed a draft 2025–26 budget that managers described as a “pivot budget” designed to rebuild reserves and cover higher safety-related costs while maintaining amenities and a modest assessment increase. General Manager John (General Manager) told the committee the association has invested in maintenance, staff and police compensation and is now preparing for a reserve study scheduled for April 2026.

The draft sets total reserve contributions from operating at $3,875,000 and shows an estimated year-end replacement-reserve balance of about $5.8 million for FY26. “This next budget is a pivot year,” John said, adding that the association has absorbed rising wages, insurance and safety expenses while offsetting part of the burden with amenity efficiencies.

Committee members focused on interest and other revenue assumptions. Staff member Steve (finance staff) described a conservative $500,000 interest-income assumption despite current higher balances; several members asked whether that could be increased if short-term rates remained elevated. John and Steve said they budgeted conservatively because cash will be moved into reserves and because some spending is expected during the year.

Committee members also discussed a roughly 41% share of the assessment that now goes to public safety when fire, EMS and police spending are combined — up from about 24.5% in the FY18–19 baseline. John said the association has funded police staffing and increased reserves while planning a new reserve-study update, but warned that the Southside fire station project and fire apparatus needs could materially affect reserve balances if the association self-funds large capital items.

The presentation also summarized sources that reduce operating pressure: casino fund transfers (budgeted at $500,000 total, allocated to reserves), expected increases in property-transfer fees and continued revenue from amenities. Steve said casino funds were trending higher and were being allocated partly to roads and drainage in the proposed plan.

Votes at a glance: The committee took two procedural voice votes during the meeting — approval of the agenda and adjournment — by voice (ayes were recorded; no roll-call tally was taken). There were no formal roll-call votes on the budget in this session.

Looking ahead, staff said they will present detailed reserve-study results in spring 2026 and warned that decisions about funding the Southside fire station (borrow or self-fund) will be a major near-term fiscal choice. Committee members asked staff to recheck interest assumptions and to flag any changes to credit-card-fee policies that could affect several revenue lines.