Finance Committee Meeting: January 30, 2002

Mad River Glen Coop
Finance Committee Meeting
January 30, 2002

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

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

Shareholders in attendance: Jed Kalkstein.

MRG Staff: Sharon Crawford.

DISCUSSION:

Minutes of November 24th committee meeting were approved.

November 10^th Board Meeting update –

informed committee that the board was expecting our recommendation on the patronage rebate, I informed the Board that there would be no change to the current penalties for late payments on APR, and the limited ticket sales will remain at 1200 for this season.

December Financials

– there was a discussion the model Deri Meier had created way back when. It is a regression analysis based on grading, the day of the week is a variable and weather is a variable. Deb will ask Deri for the model documentation for the committee to understand and use as a comparison to actual revenue numbers for this year.

We discussed income being equal budget due to great pass sales and not the weather.

2000/01 Audit –

Leigh discussed the audit and the auditor’s favorable comments concerning staff, and the fact that the results were very good. There were 19 entries that were minor.

Limit Ticket Sales –

comparing 1/19-20/02 weekend to the number of tickets sold which were about 1,000 the lines were very tolerable. Discussed a system to scan season pass tickets so we could understand the number of pass holders skiing on a daily basis to use for business purposes and financial projections.

Shareholder Bonds-

• Came into existence in June 1998
• The bonds earn Mad Money or an alternative :
• If you request your annual interest payment in cash you receive 6%
• If you request your annual interest payment in mad money you receive 8%
• If you request your annual interest payment as a reduction in your APR you receive 10%

• There is currently $120,000 outstanding in shareholder bonds.
• The finance committee considers this cheap money, in friendly hands which is preferred over bank debt.
• It took a considerable amount of time to issue the bonds, have them approved, get legal resolution, and the work effort to sell and record them.
• How do you decide who’s to retire or how much.
• It is the finance committee’s recommendation to leave the bonds as they are for another year or two at least. Much too early to discuss paying them off.

Mission Statement-

Leigh will distribute the one he created in dot point format to discuss at our next finance committee meeting.

Other questions/topics: none

Next Meeting –

March 12^th, 3 PM, via conference call.

The meeting adjourned early at 3:35 PM.

Agenda items for the next meeting:

• Mission Statement, see the attached from Leigh.
• Regression Analysis from Deri