Finance Committee Meeting; June 9, 2016

Attendance: Bruce Button, John Eberlein, Jim Elkind, Richard Gervase, Geordie Hall, Annika Holtan, Meg Hourihan, Pete

Ludlow, Lee Michales, Eric Palola, Ron Shems, Andrew Snow, Deb Steines, John Stetson, John Tobin, Jamey Wimble.

The meeting was brought to order at 8:00 AM.

The minutes from May were reviewed. Deb Steines moved to approve the minutes, Geordie Hall seconded.All were in favor.

Jamey Wimble reviewed the May financials. Facilities expense was down by over $10K due to employee furloughs and

other cuts. YTD income is $14,996 as opposed to a budget of $578,143.

Jamey then presented the 2016-17 fiscal year budget

cash flow projection, based upon budget option “C” which will be voted on by the trustees at the June meeting. The projection was requested by some of the trustees to better understand the financial implications of the budget and the plan for paying down the Line of Credit. The LOC is projected to be paid down in two steps, half in October and the remainder in December. The Coop is projected to go again into the LOC by $300K in the summer of 2017 with that balance projected to be paid down by early fall. Discussion followed. Some concern was expressed that the projection as overly optimistic for holiday ticket sales, while some others felt

comfortable with the projection.

The committee then discussed a motion made by Geordie Hall to form a subcommittee to discuss long-term financial cash flow projections for the cooperative. No one seconded the motion so it was withdrawn. There is a five-year pro forma projection that was created for the campaign and that includes simple average income projections. The pro forma

will be updated for our September meeting.

The committee then discussed if any changes would be made to the APR amount or structure for the 2016-17 season. A wide variety of opinions on this topic had been expressed during a productive email exchange prior to the meeting. Given the lack of a consensus and that it was already getting late to implement changes for the upcoming season due to

imminent staff furloughs, it was the consensus of the committee to defer any changes for the upcoming season. We will put the topic on the agenda again this fall to begin consideration of any possible changes for the following season.

Pete Ludlow moved to adjourn, seconded by Bruce Button.

The meeting adjourned at 9:01 AM.

The Finance Committee will meet again at 8:00 AM on Thursday, August 11.

Respectfully submitted,

John Tobin, Treasurer