Finance Committee Meeting: May 6, 2004

Mad River Glen Coop

Finance Committee Meeting

May 6, 2004

Committee meeting called to order at 1:00 PM via conference call.

Committee members in attendance: – Jed Kalkstein, Deb Steines, Leigh Michl, Eric Schoenholz, and Andy Dulik 

Absent: – Roy Liu

Shareholders in attendance:  Deri Meier

MRG Staff: Jamey Wimble, Andrew Snow and Sharon Crawford

DISCUSSION:

2004-2005 Budget

·               The meeting was convened to follow up on suggestions made to revisit the pricing proposals.

·               The Committee discussed the financial implications of the proposed increases and the relationships between the day ticket prices and the season passes. The goal continues to be to encourage people to buy season passes and lock in the revenue for the Coop. The downside is that our revenue will be capped in those years where the snowfall is both plentiful and the timing of that snowfall is optimal.

·               The Committee discussed the proposal to shift to a flat 15% discount for shareholders on all tickets and passes and counter-arguments were offered centering around the scale of the discount relative to the previous years.

·               Staff has eliminated the “Second Pass Discount” on all season passes. This was strongly recommended by the committee.

·               The Committee reviewed our pricing relative to other Vermont ski areas and concluded that the pricing proposed was sound.

·               The finance committee will recommended that the board approve the pricing and budget as presented.

·               The board needs to add pricing strategy into the Strategic Plan, the committee also suggested adding a priority strategy for pricing (shareholders are most important, passholders second, and day tickets last)

The meeting adjourned at 1:50 PM.