Finance Committee Meeting Minutes: November 18, 2020

Attendance:  Lars Bruns, Richard Gervase, Meg Hourihan, Leigh Michl, Matt Lillard, Brad Noble, Eric Palola, Xander Paterson, Meg Schultz, Andrew Snow, Deb Steines, John Stetson, Brian Williams.

The meeting was brought to order at 8:00 AM by Brad Noble, MRG Treasurer and Finance Committee Chair.

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1. Approved October 2020 minutes

2. October 2020 Financial Reports and Cash Flow Review:
   • Balance Sheet – We have half a million dollars sitting in the rainy day fund. Finished October with over a million dollars in the general daily operating account. With the strong seasons past sales there is big tax liability to be paid in November, almost $80,000 in sales tax. .

• P&L – September.
• The best fall foliage weekend ever with $23.8k in ticket revenue for the two weekends.
• Basebox came in on budget, which was reduced in May, with outdoor sales.
• Retail remains strong with social distancing tee shirts and masks on sale online and in the store.
• Season Pass sales broke all records but refunds are expected due to strict Vermont Covid policies for entering VT. Full refunds will be given until December 20th, after that date credits will be given on a sliding scale.
• There has been an increase in the revenue from the free-ski program from same time last year, but slightly behind to where they were for the full season last year .  Overall there is a decline in ski school registration which is a good thing for planning with fewer ski instructors due to Covid travel restrictions.

• POP – $3.6 mil to Co-op since the start of the campaign.

• Cash Flow:.
• The latest cash flow has a net loss of $435,000 for the year. There are a lot of different potential scenarios and given the current status of Covid restrictions this is the best estimate for where we will end up the season. With this loss we’d need to tap the rainy day account for $400k, Anything over a $20k loss will result in tapping the raining day account at various levels.
• Still expecting a construction loan of $325k

• Overview of Covid scenarios

• We have 3 levels of operation based on state guidance might go to 4, and will be published on the web site
• two of the two of the most relevant changes with the final guidance on ski areas, are that we are required to contact to trace everybody who comes to the ski area every day and we’ll be implementing handheld ticket scanners so we know who is on the mountain. Its expected this will be paid for by grants from VT.  We will also need an attestation from all of our customers that states they are aware of, and in compliance with the Vermont travel and quarantine regulations.
• Shareholders will be able to buy day tickets, the number will be based on the level we are operating at. All other tickets will be sold in advance on-line and be limited.
• this year’s primary negative income impact will be from pass refunds that take place before December 20, from reduced day tickets, and from various department revenue reductions due to Covid restrictions.

Next Finance Committee Meeting – December 16

8:50 am – Meeting adjourned

Submitted:  Deb Steines