Mad River Glen Coop

Finance Committee Meeting

March 26, 2003

Committee meeting called to order by committee chair Deb Steines at 1:00 PM via conference call.

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

Absent: – Leigh Michl

Shareholders in attendance: Andy Dulik

MRG Staff: Jamey Wimble.

DISCUSSION:

Approved minutes from February 27, 2003

Review February P&L –

·         Thecommittee has requested that the Cooperative Expenses be moved out of ‘other expenses’ which is below Net Ordinary Income.  Items below Net Ordinary Income are usually reserved for non-cash entries such as depreciation and amortization.  The expenses will be placed in the Other Expense category under expenses.  The details will be visible in the expanded P&L.

·         The bump in Service Expenses is increase in ski school wages offset by some increase in revenue but not enough to warrant the increase.  Jamey is reviewing with Terry to determine the break-even point.  There may be a point where increasing the number of lessons does not result in the equivalent revenue.

·         Credit card charges are down, may be timing.

·         Estimate for year-end income is in the $200-$250,000 range.

2003 Capital –

·         Capital approved by the board was $120,000 for this fiscal year.  Completed $37,300, balance $82,700 to be spent prior to year-end.  Tier 1 and parts of tier 2.

·         This request conforms to the formula of “5 year operating average ($121,000) + Share Sales ($74,000) – Reserves ($75,000) = $120,000.  It was noted that the reserves did not include debt service or bond reserve of ($20,000).

·         The discussion on capital determined that excess cash, after capital and holding $60,000 in the checking account should go into reserves.  We will discuss this further during the summer.

Cash Flow Statements –

·         Insurance is estimated at$90,000 and could increase 30-40% or $30-40,000, which is not reflected here.

·         Share sales are 27 YTD so the 40 estimated in the cash flow is realistic.

·         The cash flow statement will be revised to reflect bond reserve and updated capital spending for the May meeting statements.

·         Jamey would like to accelerate the single reserve if we do anything with reserves.

Funding Recommendation –

·         Analysis will be revised to reflect $114,000 average operating income over 7 years

·         Will add Preservation Certificates to the potential funding sources.

·         Add to recommendations: Additional reserves should be created with the balance of cash over $60,000.  The wording for this recommendation needs to be finalized over the summer.

Miscellaneous –

·         2003 Patronage Rebate – while discussing the cash flow statement the potential 2003 rebate came up.  The committee’s initial thinking on this was that while we are trying to balance the books over the next 10 years all available cash should be put into reserves for capital funding.

·         The committee asked to see demographics on pass sales when we review 2003-04 proposal, we also would like to see the breakdown of 2002/03-day tickets.

·         A question was raised about the continuity of the Committee if Deb is not re-elected.  Deb committed to remaining as an active member of the committee.

Annual Meeting Presentation –

·         The committee reviewed Deb’s Treasurers report for the annual meeting.  We made some minor adjustments and decided that it would work the way it was presented.

Next meeting on Thursday, April 17^th at 2 PM AND Wednesday, April 30^th at 2 PM.  Call in the same.  The purpose of both meetings will be to discuss the 2003/04 budget recommendations.

The meeting adjourned at 2:15 PM.

Agenda items for the next meeting:

·         Approve minutes from March 26.

·         Discuss 2003/04 pricing and budget

·         Debit Cards instead of Mad Money (future discussion)

·         Funding analysis, finalize in July