Attendees: Will Kriewald, Brad Noble, Matt Lillard (2nd half), Bryan Hall, John Tobin, Geordie Hall, Jeff Wittingham, Leigh Michl, Andrew Snow, Brian Williams (scribe)
Absent: Richard Gervase, Andrew Carey, Meg Schultz
Agenda
Review minutes from May Finance Committee meeting
Review May Financials
Review proposed 2024-2025 fiscal year operating budget
Confirm Finance committee members for proposal to Board of Trustees for 2024-2025 fiscal year
Approval of Minutes from Prior meeting
Two minor edits made by Brian per comments received in chat prior to the meeting.
<Missed who motion/second > but motion approved.Approved.
Discussions
Geordie asked whether we need to go through May financials. Andrew agreed that there is not much to review for May and went through it in 45 seconds or so.
General
Will – what is in other income. Andrew reviewed the items included such as breakage (value not used) on Mad Cards that becomes income after the end of the ski season.
May YTD Financials
Seasonal staff bonuses now on comparable basis as they were split in expense between April and May this year versus all in April last year.
2.3 M$ in investment accounts.
Leigh – does it make sense to show total cash including cash on the balance sheet that is not in the investment account? Andrew noted that cash is listed in balance sheet.
Will – Money market yielding above 5% still. 950K$ is the total plan for withdrawals of remainder of 23-24 fiscal year. Trying to delay for a month to maximize interest. Closer to when preseason cash infusion from remaining pass sales will flow into the balance sheet, I.e. cash.
Leigh – timing of cash outflow for mid-station? Andrew – Do not know if full 250K$ will be available from SMF. Fundraising expected, we have funds to cover in any case. Brad – fundraising push expected at Green and Gold.
Andrew – Projected cash flow will be generated after budget is approved by the board.
Revenue
238K$ better than budget for YTD.
2024-25 Budget Discussion
Revenue
111 operating days planned for budget. Expect more reliability in early season with the new double mid-station. General message to all department heads to be more aggressive in budgeting revenue v prior budget as actuals have far exceeded budget for 23-24.
Geordie – how will department heads achieve the increased revenue. Andrew – mostly making pricing adjustments as needed. Ski school has a sizable jump in prices, particularly kids programs.
Geordie – mostly price increase? Andrew – also driven by maintaining growth in addition to price increase
Will – Increase in season passes and other areas…. See margin compression as well for areas like the basebox. Retail side – what is the repeatability of one-time revenue boosts we saw in 23-24 specific items (eclipse t-shirts, jewelry)? Andrew – Anniversary, t-shirts, jewelry were one-offs, revenue budget is lower to reflect this. Karen feels she can find items to build excitement each year. Makes sense for revenue budget to be a bit lower.
Andrew – still using existing ticket model developed many years ago. Know that actual visitation has changed versus the model basis given our now season ticket-heavy model.
Expense
Insurance and worker comp rates are down but revenue and wages are higher so budgeting requisite increases.
Individuals who hold multiple part-time roles will be offered a bonus after completing a full year of work in lieu of benefits at the end of the physical year. We do this for full-time folks who opt out of MRG health benefit plan
Brad – Any feedback from those who would qualify? Andrew, do not think so.
Geordie – how many are we talking about. Andrew – 2. Brad – Aligning employee satisfaction to rewards is a strategic item. Great to see management is listening.
Leigh – actual numbers have bonuses, plan budget does not. Andrew – we do not project bonuses in the budget. Any projected profit at the end of ski season can be allocated to bonuses.
Leigh – did we really budget a 300K$ loss last year? Something for future committee members. Andrew – we have approx. 100K$ in interest income. This has now been split out versus last year’s budget. Last year was break even excluding depreciation with interest. Goal this year is to get to break even without interest for 24-25. Should interest support operations or earmarked for capital? Future discussion needed.
Geordie – do not want to rely on interest as operating income. Will – desire is to get a break even budget for NOI. We are offsetting interest income with our loan interest expense as it continues to be advantageous to maintain the low interest rates on our loans while making a higher rate on our invested cash.
Will – what are we doing with the new state of Vermont childcare tax? Will the employer pay or employee pay? Andrew – MRG will pay this tax in the payroll expense line.
Geordie – can we inquire whether we could get funding for the Cricket Club daycare? Andrew – not sure but we have not looked at, may need to be a full year round childcare facility.
Geordie – Something to keep in mind, could we use Cricket Club as an employee benefit for childcare if we need this to attract and/or retain?
Will – is there any erosion in the 3% wage increase in other taxes? Andrew – childcare tax is not materially impacting the bottom line so we made the decision for MFG to cover the full Will be an increase due to health insurance but should also not be a material impact.
Andrew – plowing now has a budget.
Geordie – What was the feedback from plowing customers? Andrew – mixed, went ok but there is a recognition that there is room for improvement. Brad has suggested that we collate feedback from homeowners. Property destruction definitely less than prior plow company (Kingsbury).
Matt joined at 1:40
No changes to ticket price increases for the fall sale, we reviewed in March, except for a $10 increase to the college pass. Total increase 1.1%
High breakage in SM cards has kept the price stable the last few years but looking for an increase this year from 225 to 249 for the three day card.
Geordie – what is average day ticket price? – Andrew will look it up and share in chat. Average was 75$/ day ticket.
Brad – data point for discounted ticket prices relative to products offered by other local ski areas? Andrew – 83/day for SMC.
Quad pack v SMC. Can get a better deal at MRG with online purchase in advance. As low as 59$/day mid week.
Geordie – can SMC buyers get a day ticket on a sold out day. Andrew – yes.
Will – >400$ for Sugarbush quad packs. These are transferable to other skiers, our Mad Cards are not.
Brad – we are still competitive.
Motion for recommendation – Geordie – Board approve the budget as presented as well as ticket pricing as presented. Second – Leigh. Passed unanimously.
Comment from Brad: Thanks to Matt and Andrew for putting the budget together! Also for listening to employees as well!
Future Membership
Brian, Geordie, Will, Leigh, Brad, Andrew Carey have confirmed they would like to continue.
John Tobin expressed interest to drop off the committee.
Meg and Richard unknown but will keep for a total of 9 pending hearing from them. Want minimum of 8-9. Have not heard from others that wants to join. Will later confirmed, after the meeting via chat, that both Meg and Richard would like to continue on the committee as well.
Geordie – recommend reach out 1:1 for others not responding by chat. Brad actively recruiting but no commitment yet. Great on ramp to future trustees.
Geordie – actively ask for committee members in communication.
Brad – check with folks not confirmed by Saturday’s board meeting. Key is to be confirmed then. Will checked June 23 notes as suggestion as to whether a motion is needed. Will confirmed no motion in June 23 minutes so no motion needed.
