At a meeting that reviewed the Oct. 24 monthly financials, the Ocean Pines Budget & Finance Committee examined several notable variances in amenity revenue and confirmed steps for the January budget review.

Chair Doug opened the financial review noting a fund variance of $62,002.70 and walking the committee through the posted operating statements and supplemental reports. Don Nederasty questioned the composition of the “other fees and income” line and asked whether interest income was being misclassified: “If that’s all interest for six months … that means we could have $2,000,000 out of that,” he said, prompting staff and committee members to point to casino funds and special-events receipts as likely contributors.

The committee identified specific department variances and requested staff follow-up. Pickleball showed revenue shortfalls versus budget (roughly $10k–$20k for the period), with committee members noting a large drop in special-events activity on the supplemental sheets. Aquatics posted stronger results—about $11k better for the month and roughly $28k year-to-date versus last year—while tennis and platform tennis were near or ahead of prior-year levels. The chair said the committee’s role was to flag big deviations and refer operational explanations to staff rather than micromanage day-to-day operations.

The Piazza Grill and clubhouse were discussed as examples of fast-growing revenue where the committee asked whether the operation is nearing a practical revenue ‘threshold’ and whether corresponding expense and advertising levels are appropriate. The Yacht Club was flagged as down roughly $147,000 year-to-date from budget (still operating with positive net results), and members requested operational context such as banquet and facility rental trends that might explain the drop.

Committee members also discussed longer-term fiscal cushions. Monica confirmed a reserve target of $6,400,000; the chair noted the current reserve balance reported in the materials as 8.2 (interpreted as $8.2 million) and asked whether any planned capital projects would draw on reserves. The chair pointed to two large recent capital hits in the packet—an irrigation-system repair and a pavilion project—and asked staff to identify any upcoming large planned capital expenditures that could reduce the targeted balance.

On balance-sheet detail, members asked finance to clarify why total current assets trended from $18.2 million in the prior-year period to $17.8 million in the current report and whether the difference reflected investment returns, bad-debt allowance changes, or timing effects. The packet also listed cash investments of about $16.9 million and supplemental P&L detail for parks and recreation (approximately $30k under budget year-to-date).

Procedural and next-step items: the committee agreed not to meet in December and to prepare for two full-day budget-review sessions on Jan. 2–3, when department heads will be asked to explain line items and variances. The budget book is typically available in the third week of December; the general manager and staff will notify members when the book is ready and make pickup or delivery arrangements for members who cannot attend in person.

The committee approved the meeting agenda and the Oct. 23 minutes by voice vote and adjourned by voice vote at the meeting’s conclusion. Staff is expected to provide written clarifications on the flagged items ahead of the January budget workshops.