FINANCE & LEGAL COMMITTEE
MINUTES
Monday, Sep. 28, 2009
“Responsible for the annual operating and capital budgets, determination of fees and assessments, definition of member and guest privileges, and all related legal, taxes, insurance, zoning, and organizational matters affecting the Association.”
PRESENT: Jere Kovach-Chairman & Member Board of Directors
Eugene Root-Vice Chairman F & L Committee
Ron Stucki
Ray Hanck
Jim Vandel-Secretary
Randy King-Acting-GM-Ex Officio
ABSENT: None
ALSO IN ATTENDANCE: John Daulton, Lorretta Smith, Gayland Archibald-BOD Member, & Jan Jonson-BOD Member
The meeting was called to order @ 3:00 P. M.
The minutes of the Sep. 14, 2009 meeting were approved.
Mr. Archibald, in his capacity as Chair of the Greens Committee, presented his concerns about moving budget items related to the cost of maintaining our common area grounds from Facilities to Greens. SVRA has the objective of making Golf operations as self sufficient as possible. Greens operation is included in the total cost of Golf operations. The additional cost of maintaining the common areas, that have very little to do with Golf operations, would create a false overall cost of Golf. The reason advanced for moving the budget items was due to their similarity to work, equipment and materials needed for course maintenance. It was decided to keep the budget items in the Facilities department but have the responsibility for Common Area maintenance be assigned to the Course Superintendent.
Mr. King presented his draft budget. All of the Department heads have presented their budget requests to him and it was apparent that Mr. King has given the requests a rigorous review. He was commended for his effort and knowledge of the draft budget, as presented. Considerable Committee time was devoted to the various budget items, the committee’s perception of SVRA membership expectations, condition of facilities, fee structure, etc.. Mr. King informed this Committee of the Golf Committee’s efforts to establish an equitable fee structure and Golf Policy.
In general, it was agreed that the demographics of our membership has and will continue to change. Our policies and emphasis will have to change with those changing demographics. The current effort to provide a field for soft ball, soccer, ice skating etc. is an example of SVRA response to those changes.
Mr. Kovach informed the committee of a workshop meeting of the Board of Directors on Weds. The budget will be one of the main topics. An “Executive Session” will be held during this meeting to discuss staff salaries.
Considerable discussion took place concerning the need for Capital expenditure to improve or replace our facilities. It was agreed that income received from the recent sale of some of our Capital Assets, to the town, should be retained in the Capital Fund until needed for capital expenditure. Part of this discussion revolved around the question of whether capital funds should be used for some needed adjustments to the course sprinkler systems. Agreement was not reached as some members considered that cost to be maintenance and therefore operational while others considered it to be an improvement and therefore a capital expense.
Some discussion took place concerning attorney’s fees for collecting past due assessments. The attorney charges SVRA for doing the collection and SVRA is reimbursed upon collection of the assessment along with the fees. If all past due assessments are collected there should be no gain or loss on these attorney fees.
General dissatisfaction was expressed concerning the quality of the 2007 and 2008 Audit report and the cost of same. There will be an effort made to retain a Wyoming and perhaps Star Valley located firm to perform the 2009 audit.
There was general agreement that our telephone system needs a complete review and hopefully the review and necessary changes will be complete during 2009.
Considerable discussion took place concerning the emergency services agreement with the town to provide water. The town currently pays SVRA $86,500 per year under this agreement. The town will no longer need the assurance once it completes its water enhancement work including the purchase of the Green Canyon tank. It is anticipated the purchase will be consummated by June and therefore the payment will be approximately $43,250 in 2010. Members of this committee, in the past, have stated that these funds should have been considered as extraordinary income and not included in moneys available for annual operational expenditure. That opinion was reiterated in this meeting.
Mr. Daulton presented some background information concerning the formation of the “Recreation Committee”. This committee was formed in recognition of the fact that many of our SVRA members are interested in a diverse number of recreational pursuits. Mr. Daulton requested $1000 for supplies and $3000 for equipment purchases in 2010 to be utilized mostly for activities on the playing field at Cedar Creek Park. The committee agreed to add $4000 to item 7410-01 for this purpose.
Considerable discussion took place concerning fees charged to non-members utilizing our recreational facilities. Several ideas were advanced but none were adopted. Mr. King observed that he is working with his staff and the other SVRA Committees on a revised fee schedule.
Jim Vandel presented a draft “Capital Improvement Plan” currently being developed by the Long Range Planning Committee. This “plan” is still in the concept stage but should be completed in the near future. The plan, as envisioned, will have an itemized list of planned capital expenditures over a six year period. It is also envisioned that the Board of Directors will set aside $200,000 of assessment funds, every year, to be added to the Capital Fund. The F & L Committee will utilize this “Plan” to develop the annual “Capital Budget”. Depending on the cost of individual projects the “Capital Budget” will have large variations from year to year.
Jim Vandel also presented a plan to provide all members, upon payment of their assessment, a certificate, for each lot they own, that could be redeemed by limited utilization of the recreational facilities at no additional cost to the member. Considerable discussion ensued. It was finally agreed to recommend to the BOD that certificates for two rounds of golf on Cedar Creek, two tennis passes and two swim passes would be issued for each lot owned upon payment of the annual assessment.
Mr. Kovach presented several update changes he would like to make to the “Financial /Operations/Procedure and requested concurrence from the committee. The committee agreed that the changes were practical and needed.
Mr. Vandel presented his concerns about the ongoing DCC&R enforcement controversy and the fact the problem does not get resolved. Since this is the Finance and LEGAL Committee he asked if this problem should be addressed by the committee. The board, to date, has not presented this problem to the committee for its’ review. Mr. Kovach stated that he was sure the problem would be discussed at the BOD workshop to be held on Weds.
The next meeting of the committee will be at 3:00 P. M. in the Library on Oct.12, 2009. All SVRA members are welcome to attend.
Meeting adjourned at 6:30 P. M.
Jim Vandel
Secretary