Finance Committee Meeting Minutes: March 16, 2022

Attendance:  Andrew Carey, Andrew Snow, Brian Williams, Eric Palola, Geordie Hall, John Skelly, John Stetson, Leigh Michl, Matt Lillard, Meg Shultz, Richard Gervase, Sharon Crawford, Will Kriewald.

The meeting was brought to order at 9:33 AM by Andrew Carey, MRG Treasurer and Finance Committee Chair.

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Approved February 16, 2022 minutes

• Suggested corrections to the minutes: None noted
• Motion to approve as corrected by Geordie Hall, seconded by John Skelly. Minutes were approved.

Review of Financial Reports – Andrew Snow

• Documents can be found here in Google Drive.
• February P&L
  • Continued challenges with the weather and the flooded BaseBox produced a Gross Profit of $608K, which was $40K less than budget, but $153K more than last year.
  • Departments are doing well and we continue to see higher expenditures on a per skier basis.
  • Demand continues to be strong, while the skier visits are still down from last year by 4,500.
  • NOI of $58K is $25K less than budget, but $66K greater than last year.
• YTD P&L
  • NOI of $986K is $278K better than budget, and $373K ahead of last year.
  • Covid-related expenses are carried “below the line” and total about $7,000.
  • The strong season pass sales continues to carry the CoOp to a successful season.
• Balance Sheet
  • Adjusted CoOp Cash (cash, less POP account and Construction Loan) is $1.48M, or $48K greater than last year. (Note that prior minutes reported this annual variance as significantly greater due to the PPP loan being carried as a liability in February 2021.  This presents a more accurate year to year comparison of the cash position.)
• Cash Flow
  • The ending cash balance is forecasted to remain no less than $1 Million, including Management’s proposed Capital spend for the summer.
  • There is no anticipation of using the LOC or Rainy Day account. Management noted that there is no issue from our lender regarding the lack of use of the Line of Credit.  Our construction mortgage is also with the lender.  The lender has assured us that the LOC is available if and when we need it.

Capital Budget Request

• Management has requested $185K for Capital Projects this year, including $100K for the groomer that is already spent.
• Discussion was generally limited to FY 22 planned expenses. Place holders for future expenses to be discussed at a later date.
• Motion to recommend approval by the Board to spend an additional $85K made by Geordie Hall, seconded by Andrew Carey. Motion approved.

Pre-season Pass Sales Proposal

• Management presented proposed season pass pricing for the Spring 2022 Pre-season sale (Apr 1 to Apr 14).
• Motion to recommend approval by the Board of the plan as presented made by John Stetson, seconded by Geordie Hall. Motion approved.

Three Peaks Medical Clinic

• Management presented information about the proposed Three Peaks Medical Clinic to be located at Sugarbush’s Lincoln Peak Base Area. Geordie Hall gave a brief synopsis of the proposed clinic.  As a 501C3, it is envisioned to be a true asset to the Valley community and customers at both ski areas.  It is replacing a clinic that had been in operation for many years but has recently lost its funding source.  $250,000 is the fundraising goal.
• Motion to recommend that the Board spend at least $1,000 as a Founding Member of the new clinic made by Geordie Hall. Matt Lillard suggested an amendment to the motion, increasing the CoOp donation to $20,000, noting that not only is this good for the ski area clientele, but that the Valley community has always been very supportive of the CoOp’s fundraising efforts.  Geordie accepted the amendment and Brian Williams seconded.  Motion approved.

Other Discussion

• A draft of the Finance Committee charter was posted for review by the committee. Discussion will be postponed to a later date.  Committee members are encouraged to review and comment.

10:50 AM (estimated)  –  Meeting adjourned by consensus.

Next Finance Committee Meeting – April 20th, 9:30 AM.

Submitted by:  John Stetson