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Mad River Glen Coop
Finance Committee Meeting
September 26, 2001

 

Committee meeting called to order by committee chair Deb Steines at 3:00 PM via conference call.

 

Committee members in attendance: Leigh Michl, MR Treasurer, Eric Schoenholz, Roy Liu, and Deb Steines, Chair.

 

Shareholders in attendance: Andy Dulik, Lu Putnam, trustee, Gary Crofton, and Deri Meier.

 

MRG Staff: Sharon Crawford was also in attendance.

 

DISCUSSION:

Minutes of August 15th meeting were approved.

 

Bank-line of credit

– was approved by the board for one to two years.

 

Shareholder Loan Finance Committee (SLFC) -

has been created as a separate standing committee reporting directly to the Board.

 

August Financials

– It was noted that the primary cause of the expense variance was due to the Bob Ackland settlement.

 

Limit Ticket Sales –

  • Eric added estimated revenue lost at $45.50 per person/ticket a day as estimated by Jamey and Sharon.
  • Sharon will provide Eric with the net operating profit per year for the last 4 years so Eric can estimate the % of lost operating profit
  • Leigh will give the board an update of our discussion but details will not go to the board until November or December. The board will receive graphs and data sheet.
  • Lu Putnam commented that 70% of people who responded to the survey wanted limited ticket sales. Deb commented that we have already limited ticket sales to 1200.

Late Payments on APR –

this only effects a small % of people. Sharon will calculate this percentage.

 

Depreciation Schedule –

  • Sharon will circulate the schedule that currently exists.
  • Assets are being depreciated based on purchase price, in some cases this may not be a true reflection of value.
  • Deri discussed the economic needs of the Co-op for capital improvements, he volunteered to review economic depreciation on something more than a beer soaked napkin.
  • Will continue discussion at the next Finance Comm Meeting.

Patronage Rebate –

  • The recommendation on the table and agreed to by everyone was to have the auditors calculate the patronage rebate, return calculations to this committee for review and recommendation to the board probably in December or January.
  • Profit is rebated to shareholders based on a % of revenue, given back to shareholders based on SH expenditures. The expenditure records for SH are not accurate because only purchases in the office or Mad Money go towards the records.
  • The rebate would encourage use of Mad Money because of patronage rebate, this would effect cash flow because we’d have the cash up front.
  • The patronage rebate is the only way that individual shareholders can receive any benefit from the increased value of the assets and "retained earnings" of the coop.
  • There are reasons working against the declaration, primarily work load on the office staff, which many not be able to handle this right now. We do not have the formula in the system to automatically calculate the rebate and enter it into the system. It would need to be done manually.
  • VT co-op law requires consideration of a patronage rebate.
  • This is a tax benefit as it’s an income deduction before taxes.
  • Bottom Line - Board cannot decide until statements are completed and audited.

Other questions: none

 

Next Meeting –

October 24th, 3 PM, via conference call.

 

The meeting adjourned on schedule at 4:00 PM.

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