Finance Committee Meeting: May 7, 2003

Mad River Glen Coop

Finance Committee Meeting

May 7, 2003

Committee meeting called to order by committee chair Deb Steines at 2:00 PM via conference call.

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

Absent: – Leigh Michl, Roy Liu and Mark Renson

Shareholders in attendance: Andy Dulik

MRG Staff: Jamey Wimble and Andrew Snow

DISCUSSION:

2003-04 Budget

• The budget reflects $192,785 of operating income that is very close to the $200,000 required number.
• Jamey began the review with a discussion of individual lines of the collapsed budget.

·        Other income reflects the elimination of the ‘plug’ estimate used in 2002-03 for season passes.

·        Day tickets and season passes reflect income at the increased rates

·        The expenses reflects a $49k increase in insurance which was partially offset by increased deductibles on healthcare; the increase in facilities expense was based on current year actual; and the marketing expense was reduced by $19k.

·        The marketing budget will concentrate on retention of existing customers.

·        Jamey is very comfortable with this ‘no fluff’ budget.

• The budget was based on 110 days, the average is 111, last year was 122, assumes the same number of day tickets and pass sales.

Lift Tickets/passes

• The committee agreed with the $45 day ticket rate and did not feel there would be any issue raising ticket prices two or three or more years in a row.
• We want to push forward with revenue increases
• Overall concept endorsed that ticket and pass pricing should be used to encourage share sales.
• Discussed club discount tickets, we felt these should be reviewed
• Discussed the various ‘comp’ tickets, commented that these need to be analyzed and cut back in the future.
• Agreed with pass increases, some of us felt it could’ve been more aggressive
• The committee suggested looking at eliminating or re-pricing the discount on second pass for a non-shareholder couple. Some members felt that the price for the second pass should be higher than the shareholder price. For couples where one member is a shareholder and two shares are purchased, “the higher price prevails” should apply, meaning the first share should be at the normal price and the second one at the shareholder rate.
• The committee reviewed all the various rates and increases and concurred with all.

Other – discussed a method to count skiers on any given day using bar codes on tickets and passes for data gathering. We do have the technology today. The committee agreed we should do this, but only on select days during the season.

Recommendation – We support this budget and recommend the board accept as presented.

Next meeting on will be in late June or early July to finalize the Strategic Plan recommendation.

The meeting adjourned at 2:00PM.

Agenda items for the next meeting:

·        Debit Cards instead of Mad Money (future discussion)

·        Funding analysis, finalize in July