Finance Committee Meeting Minutes: May 12, 2021

Attendance:  Andrew Snow, Brad Noble, Brian Williams, Geordie Hall, John Skelly, John Stetson, John Tobin, Leigh Michl, Matt Lillard, Meg Shultz, Richard Gervase

The meeting was brought to order at 8:03 AM by Brad Noble, MRG Treasurer and Finance Committee Chair.

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Approved March 2021 minutes

• Suggested corrections to the minutes:
  • Anticipated work on the Birdland lift is limited to the drive.
  • The next meeting is on May 12^th.
• Motion to approve as amended by Geordie Hall; seconded by Brad Noble.
• Minutes were approved.

Review of Financial Reports – Andrew Snow

• Documents can be found in the Google Drive: https://drive.google.com/drive/folders/1rI9ZWJLQKWw0rrbdFuITnzKkx1N_yJUm?usp=sharing
• Balance Sheet
  • Cash position remains strong primarily due to the PPP loans and surprising preseason pass sales.
  • The first PPP loan ($192K) has been forgiven and the application for the second ($560K) will be submitted next week. We expect full forgiveness based on the guidelines.
  • Coop cash, less current borrowing of the construction loan ($290K) and the second PPP loan, is approximately $1M, or $260K ahead of last year.
  • Preseason pass sales were nearly 3X last year, or $640K as of May 6^th.
• P&L
  • NOI, before grants, POP and COVID, continues to be better than expected, with March closing down $129K vs. budget of $86K and April down $198K vs. a loss of $54K.
  • YTD NOI before grants, POP and COVID is at $286K, or down $338K from budget. After other income and expenses NOI is $1,139K vs. a budget of $615K.
  • No Mad Card breakage this year, but there were season passes that were not used. Additional data is forthcoming for analysis.
  • A bonus was paid out to the staff based on average weekly pay.
  • In summary, if the second PPP loan is forgiven, we net out at about the same NOI as last year.
  • Nothing new to report on the POP funding. Net of expenses is approaching $4M.
• Cash Flow
  • Share sales continue to outpace expectations.
  • Assuming full forgiveness of the second PPP loan, we do not expect to touch the Rainy-Day Account or the LOC.
  • Once the PPP loan is settled and the final construction costs are known consideration will be given to paying down the construction loan of $290K or retiring it completely. Currently paying about $1,000/month interest.  The rate is 3.84% for 20 years.
  • Geordie suggested that friendly debt might be used in lieu of the construction loan.
  • The balance of the Rainy-Day Account is over $500K. The proper level to maintain in the RDA is under consideration.
  • Expect about $140K from POP this summer for the completion of the construction, groomer, and Birdland drive.
  • Non-POP summer plans include replacement of Basebox roof and continuing exterior renovations of Bridge Building.

Other Discussion

• Season passes:
  • Considering limiting pass sales to 10% less than last year.
  • Looking at options including no limits on mid-week passes, etc.
  • The decision on Mad Cards will affect pass sales.
  • Shareholders will always be able to buy passes.
• Mad Cards:
  • Considering eliminating transferability, limiting quantity per person, doing away with entirely, etc.
  • Decision to be made in June.
• Ticket and pass scanning will continue in future years. The cost is about $25K/year.
• Will revisit mission statement in coming meetings. Proactive vs. reactive.  Differing statements on the website.  Brad will distribute the correct one.

Next Finance Committee Meeting – June 16, 2021

9:19 am – Motion to adjourn – Geordie, Second by Brian.  Meeting adjourned.

Submitted:  John Stetson