Finance Committee Meeting Minutes: September 18, 2019

Attendance: Matthew Milan, Matt Lillard, Geordie Hall, Xander Patterson, Leigh Michl, John Tobin, Brian Williams, Meg Hourihan, John Stetson

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

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1. Approved June 2019 minutes

2. July & Aug Financial Reports and Cash Flow Review:

Balance Sheet:

• Had a good summer in line with what had been expected and projected in June.
• Did not have to dip into the Line of Credit for operations. Went into LOC briefly for $70K to cover a SMF-related expense.
• Big improvement on our liabilities relative to this period last year. From a cash management perspective we expect to be able to start putting money into the Rainy Day Fund in October.

Summer P&L:

• Beat budget over the summer by $54K.
• Good savings in marketing due to changes and restructuring of staffing.
• Grift Show helped Basebox numbers.

Year to Date P&L:

• NOI is currently at $267K, well ahead of budget and ahead of last year.
• Expecting to end the year at $150K+ NOI based in current projections.

Summer POP Campaign Notes:

• POP campaign will cover the interest on the $70K LOC draw

Cash Flow:

• For next year, we are not expecting a LOC draw for operations based on current projections.
• For next year we are projecting that we will need to finance a max of $388K next summer to cover the $250K contribution from the Co-op along with pledges not yet received to cover construction costs related to the Basebox/Patrol Building project. This will be reflected in future cash flow calculations.
• We may be able to pay some of the Co-op’s contribution to the Basebox/Patrol Building project ahead of next summer if we have a good winter. Will look at this as an option in the new year.
• No operations for the Basebox for summer of 2020 due to summer construction – next year’s budget has accounted for this. Will revisit this conversation in a future Finance Committee call when the GM has assessed further.
• Overall, cashflow outside of the capital project considerations is very good.
• We are expecting lower than average share tender numbers for this coming season based on the strength of last season.
• Discussion of whether changes to season pass sales will result in net new passholders. Follow-up conversation at a future Finance Committee meeting.
• Finance Committee to start exploration of financing for capital projects outside of the LOC at next Finance Committee call. LOC needs to rest for 30 days every year, so exploration of other options is worthwhile.
• Matt reviewed plan for marketing team going forward, goal is more flexible and efficient – will test the model this season, and assess if changes are needed.

Mission Statement:

• Small team to take Mission Statement, finalize wording and then proceed to an online vote in the next 30 days.
• Brian Williams, Meg Hourihan and Geordie Hall to finalize and propose final wording for early October. Online vote results to be shared at upcoming meeting and then submitted to the board for review and acceptance.

Forward-looking Modeling Discussion:

• Discussion of skills and capabilities of current finance committee members and how they can support short term and long-term planning, building off statistical analysis work by Geordie Hall, Andrew Snow, etc. A number of members have expressed interest, the goal is to have an approach that is reasonable for both Co-op and volunteers in terms of expectations and outputs.
• Small working group created to explore options for financial scenario analysis to support the Co-op, Board of Trustees and Management.
• Xander Patterson, Brian Williams, Matthew Milan to discuss and look for opportunities for small, quick wins, and report back on possible directions later this fall.

8:53 am – Meeting adjourned

Submitted:

Matthew Milan, Treasurer