Finance Committee Meeting: January 28, 2004

Mad River Glen Coop

Finance Committee Meeting

January 28, 2004

Committee meeting called to order by committee chair Deb Steines at 3:00 PM via conference call.

Committee members in attendance: – Eric Schoenholz, Jed Kalkstein, Andy Dulik, Roy Liu and Deb Steines, Chair.

Absent: – Leigh Michl

Shareholders in attendance: none

MRG Staff: Jamey Wimble

DISCUSSION:

401K Plan

• Currently MR contributes 50% up to 3% of an eligible employee’s salary that is approximately $4,000 a year current expense
• Recommended to increase it to 50% up to 6% of eligible employees salary, could increase MR expenses to $8,000
• Other local business are similar, other ski areas are similar
• The committee is unaware of any companies that offer 401k to part-time employees; committee questioned whether this was even legal requested that Jamey confirm the IRS eligibility requirements to offer 401K plans to part time employees.
• The committee had no objection to this change.

December Statement

·        Currently we are approximately $150,000 behind last year’s revenue.

·        Basebox expenses include inventories, they are not accrued on the balance sheet (the committee recommended that these start up costs be included in the budget month it occurs rather than spread smoothly over the year)

·        Marketing variance is also due to timing of expenses

2003 Reserve Funds

• Currently allocating $75k to the single chair reserve, should we increase that?
• Jamey is still comfortable doing the towers in 2005; there will be $300k in the reserve at that time.
• No benefit to putting additional $ in the single reserve as the $300K will be sufficient
• Recommend calling the reserve a Capital Reserve so it is general, if we don’t use the full $300K on the single chair it will be general. Begin calling it that now.
• The current formula accounts for a reserve and current capital
• Will continue to review in coming years

Miscellaneous-

• The single chair repairs cost approximately $15,000. Insurance claim, less $5,000 deductible plus $43,000 for business interruption.
• March Board meeting will discuss capital.

Next Meeting February 26, at 3 PM to review Capital.

The meeting adjourned at 3:40PM.