ASSESSMENT FOLLIES
Commentary by Joe Reynolds

Some OPA board members seem to be in a bit of a panic mode over assessments.

Preliminary estimates indicate possible overall cost increases of about $300,000 next year, based on the General Manager's projections.

• $300,000 = $38 per lot per year.

Faced with an assessment increase of less than $1 per lot per week, some board members suggest changing the entire assessment structure, or building condos at the Beach Club. Why this irrational fear when it comes to assessment increases? This fear drives otherwise rational people to propose so-called solutions implementing an elephant gun to kill a mosquito -- when the mosquito is on the forehead of the collective lot owners.

OPA assessments are not high, by any standard -- based on services provided and the wide array of amenities.

The board should exercise oversight of the General Manager's office to keep spending at the lowest level required to properly maintain our community, and then set our uniform per-lot assessment rate at a level required to meet those costs. If anything, past boards have failed in this responsibility, and we ended up with rotting docks at the Swim & Racquet Club or a community hall even the board admits is falling apart. Maintenance has been reactive, not proactive -- and the policy costs all of us more in the final analysis.

Thinking outside the box isn't a bad thing, but let's not throw away the box.

Here's some background:

General Manager Dave Ferguson seems to believe OPA amenity usage is flat or declining because of changing demographics. His theory is many of the newer Pines property owners are younger than the historical population base, and these younger people do not use the amenities.

Ferguson's explanation for amenity membership flatness is certainly debatable. OPA has no recent reliable demographic survey. Softening amenity memberships and usage could just as easily be blamed on poor marketing by OPA. Of course, the administration certainly looks better if it can convince the board these problems are related to changing demographics. The OPA board should not consider Ferguson's view as anything more than speculation at this point.

Ferguson also believes lot owners are demanding more services but do not want to pay for them. Again, this looks like pure speculation. He also says younger folks don't participate on committees or run for the board. H E L L O! Maybe a contributing factor is a board and committee propensity to schedule most meetings during weekday working hours.

Based on all this speculation, Director Dan Stachurski suggests the possibility of the board implementing an assessment based on lot/home value -- a property tax. Director Mark Venit is still hot on some scheme to develop the Beach Club property in partnership with a private developer. This rainbow has no pot of gold at the end.

Stachurski's idea would essentially take more from those with more valuable properties. It would also be a violation of the Declaration of Restrictions, wherein the board is only authorized to levy a UNIFORM annual charge. Then again, perhaps Stachurski's property tax idea ties in nicely with his obvious desire to see Ocean Pines become a municipality.

Why do we keep hearing all these wild schemes from certain board members?

Whatever is influencing amenity membership and usage, managing OPA is fairly straight-forward in financial terms. The board sets a uniform assessment on all lots at a rate required to maintain the common areas, amenities, administration, etc. Reasonable people can argue about how much all lot owners should pay for amenities versus how much those who use the amenities should pay. In the final analysis, however, all lot owners must foot the assessment bill to cover all OPA expenses.

All members of the OPA Board of Directors should spend more time making OPA work more efficiently than worrying about changing the fundamental structure of a home owners association that generally works very well and has remained financially sound for over three decades. OPA will continue on that track unless this or some future board derails the train.

The Ocean Pines Board of Directors is elected to look after one of the most successful homeowners associations in Maryland, not to reinvent a perfectly good wheel.