New southside fire station, county water and wastewater hikes drive assessment increase; amenities slated for modest fee changes
By ROTA L. KNOTT
Ocean Pines homeowners could see a $40 increase in their annual assessment next year to help cover the cost of a new southside fire station and higher water and wastewater charges from Worcester County, while amenity rates would rise only modestly under a proposed fiscal year 2027 budget presented to the Ocean Pines Association Board of Directors on Dec. 19.
General Manager John Viola told the board the proposed FY2027 budget is the result of a “bottoms up” process involving review, analysis and clearly defined objectives carried out by department heads across the organization. The approach focused on pricing, expense reviews and identifying opportunities for organic revenue growth, while prioritizing service quality. “But most importantly to enhance the customer experience as well as the homeowner all homeowners of Ocean Pines,” Viola said. He added that staff understand “the importance of the assessment and everything we do and it’s part of our norms is to bring forward the most efficient effective assessment for ocean pines.”
Senior Director of Finance and Controller Steve Phillips said the assessment increase is directly tied to infrastructure and utility costs. “So we have a $40 increase in the assessment,” he said, citing water and wastewater rate increases and the expense of building the new fire station.
Viola noted the current fiscal year assessment is $875. “There’s a $40 increase proposed in this proposed budget,” he said. He explained that $25 of the increase is earmarked for the fire department to pay for construction of the new southside fire station. “Not pointing and not saying anything was wrong, but we did not have that funded over the years,” Viola said, adding, “$25 this year is certainly, I believe, a reasonable number.”
The remaining $15 of the assessment increase stems from higher water and wastewater fees imposed by Worcester County, which Viola said have affected Ocean Pines significantly in recent weeks. He noted residents have also seen the increases reflected on their own bills. Some of those higher water costs will be absorbed through aquatics fee increases, while Touch of Italy, the association’s food and beverage vendor, is also covering its share of the added expense, Viola said.
The proposed budget also includes salary increases averaging about three and a quarter percent for staff and the management team, as well as coverage for medical liability insurance. Viola said the association has relied on outside studies to benchmark compensation. “I truly believe we need to take care of them. We need to make sure just like anything else that we benchmark and that their salaries are within the ranges of everybody around us,” he said, referencing staff skill sets, benefits and overall responsibilities.
In addition to the general assessment, Viola said the budget proposes a $25 increase in the waterfront differential assessment for properties located along Ocean Pines waterways. The additional revenue would help pay for improvements such as bulkhead replacement and repairs in areas where the association is responsible.
Director Jeff Heavner praised the clarity and organization of the budget presentation, calling it “Very easy to read.” He highlighted that the document lays out amenity fees, CPI-related changes, assessment history and boat slip information in one place. He also pointed to what he described as a significant increase in safety-related spending and the challenge of balancing rising costs such as insurance, firehouse expenses, water, salaries and benefits. Heavner said the result is “a really balanced budget,” noting “a modest increase in the assessment and quite frankly modest increases in our amenity fees like racquet sports $5, aquatics $10 to $30, golf $100 bucks, golf carts nothing, uh food and beverage red to black.”
Viola responded that the budget has absorbed substantial cost pressures in recent years. “We’ve probably covered over $100 worth of increases if not 150 within the budget baked in as you’ve said,” he said, referring to the last couple of years.
Public Works Director Eddie Wells said the association is proposing a 3 percent increase in marina slip rental fees. “We are proposing a slip increase,” Wells said, adding that the adjustment “still keeps us under anybody that’s in the area.” He said staff regularly check regional pricing and remain competitive. “We’ve been checking on all the prices just to make sure we’re competitive, and we still are well competitive,” he said. With a long waiting list for slips, Wells added, “If somebody pulls out because they don’t like the 3% rental fee increase I don’t think we’re going to have a problem filling them.”
Phillips outlined several amenity fee adjustments included in the proposed budget. Aquatics memberships for residents and associates would rise by about 5 percent across the board, driven in part by the county’s water and sewer rate hikes that had to be absorbed in the budget.
Racquet sports memberships would increase by $5, which he described as minimal. Beach parking annual passes would increase by $5 for the two annual passes, while weekly, daily and associate rates would remain unchanged.
In golf, Phillips said membership rates would see modest increases ranging from $100 to $175. Based on benchmarking, he said, “we still end up being one of the lowest cost per rounds in the area.” Public greens fees would increase by $10, while resident rounds would rise by $5.
The proposed FY2027 budget will continue to be reviewed by the Board of Directors as part of the association’s budget process.