Finance Committee Meeting: August 15, 2001

Mad River Glen Coop
Finance Committee Meeting
August 15, 2001

Committee meeting called to order by committee chair Deb Steines at 2:00 PM via conference call.

Committee members in attendance: Leigh Michl, MR Treasurer, Eric Schoenholz, Roy Liu, and Deb Steines, Chair.

Shareholders in attendance:, Andy Dulik, and Lu Putnam, trustee.

MRG Staff: Jamey Wimble and Sharon Crawford were also in attendance.

DISCUSSION:

Minutes to July 11^th meeting were reviewed, corrected, and approved.

Bank line of credit

– discussion concerning the bank line of credit. We reviewed possibly giving the GM approval to renew the debt each year rather than annually. Decision was made to review every year and leave the motion as written in July. This will be presented at the September 8^th Board meeting.

MOTION: to authorize GM to execute a one-year or longer promissory note for $200,000 for emergency needs. If the fee associated with a longer-term note is what he considers acceptable he has the approval to execute.

Shareholder Loan Finance Committee (SLFC) –

Peter Monte brought the need for this committee to exist to our attention. We discussed the purpose of the committee, which is to review and agree to the finances associated with the Shareholder Loan Program on an annual basis. Our question back to Peter is whether this committee can be a subset of the MR Finance Committee or does it need to be a different committee with different individuals. The current outstanding debt in bonds is $120,000. Deb will discuss with Peter and report at the September Finance Committee meeting.

July Financials–

• A review of July P&L actuals was quickly discussed and determined there were no significant changes since April, no further discussion needed.
• Discussed July Cash Flow Projections, it was observed that the ending cash flow is $35K higher than forecast in May and the $75,000 for capital reserve has been place in a CD at the Northfield Bank.
• The total annual budget on the July Capex report was different than the May exhibits, Jamey will check for the official number for next months exhibit. The new format of the report was much better and helps us understand the annual picture.

Limit Ticket Sales –

• The current cap is 1200 tickets as approved by the board in April.
• Eric Schoenholz lead a discussion around the exhibits he prepared comparing the various limiting scenarios at 800, 900, 1000, 1100, and 1200 daily sales caps.
• Exhibits included a graph of the number of days that these various limits would have been exceeded in the last four years. Another graph showed the number of skier days lost and the % of skier days lost.
• We determined the need to quantify the revenue that would have been lost in each fiscal year for each limit. Jamey will get us the estimated cost per ticket based on Saturdays in the 2000-01 season. Eric will then calculate the estimated revenue lost. The % of skier days lost is another way of looking at how much we’d need to raise ticket sales to offset lost revenue.
• Lu Putnam commented that the Shareholder survey reflected almost 70% of shareholders favored limiting ticket sales.
• We need to view this as a sales tool for selling shares because limits exclude shareholders and pass-holders.

Depreciation Schedule –

a brief discussion concerning the need to understand future years’ depreciation and how it effects taxes, so we do not get in a situation of having to pay taxes. Jamey and Sharon will look into creating a schedule taking the depreciation out as many years as we have depreciation. This committee will review the exhibit.

Other questions: none

Next Meeting –

September 26^th, 3 PM, via conference call.

The meeting adjourned on schedule at 3:00 PM.