FINANCE & LEGAL COMMITTEE
Monday, May 17, 2010
“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
Kirk Sessions- GM-Ex Officio
ABSENT: Ray Hanck
ALSO IN ATTENDANCE: John Daulton, Gayland Archibald-BOD Member
The meeting was called to order @ 2:00 P. M.
Mr. Hensel was welcomed as the newest member of the Committee.
Mr. Root informed the Committee of his inability to continue the time commitment he has, in the past, given to the business of the committee and offered his resignation. It was agreed that, due to Mr. Root being an extraordinary source of SVRA history, he should be retained as a member with the understanding that he would only participate as his other commitments allowed. Mr, Root agreed and withdrew his resignation.
Mr. Kovach introduced Mr. Sessions as our new General Manager as of Jan. 15, 2010.
Mr. Sessions and Mr. Kovach then stated that all bank statements, since Oct. 31, 2009, have been reconciled to the penny. Mr. Sessions will provide the Committee copies of the reconciled bank statements once a quarter. Mr. Sessions said that the implementation of the Point of Sale (POS) software and its integration into the accounting system is proceeding nicely but there are still some glitches. He is confident the remaining problems will soon be resolved.
A review of Bar operations and accountability took place. In general, inventory will be reduced by the bar offering only a limited selection of beverages and the POS will provide a more accurate accounting of sales.
A similar discussion took place concerning the Pro shop. Considerable effort will be made to serve our members needs but reduce the amount of carry over inventory.
There was discussion about the annual twilight golf pass that was implemented so members with limited time availability could utilize the courses but at a reduced rate. So far, there has been a very limited number of these passes sold but, it is thought, as more members become aware of their availability, more will be more sold.
Mr. Sessions reviewed the Profit and Loss statement and the Balance Sheet. The BOD has decided it would be more cost effective to consolidate our banking operations. Therefore the Wells Fargo accounts are being transferred to The Bank of Star Valley. There was $74,000 spent on Capital Improvements in 2009 but those were funded through Operations. $74,000 was therefore transferred from the Capital Fund to the Operations fund. The Auditor has advised that the IRS does not recognize the existence of an “Emergency” fund for a non-profit corporation. Any funds we reserve for “emergency” will therefore be included in the “Capital” fund. We are selling the Green Canyon water tank to the town for $420,000. We will have those funds by June 30. The BOD has directed the money be deposited in the “Capital” fund. The first big expenditure will be for the water line down Green Canyon for our irrigation system. Mr. Sessions advised that, as the BOD approves funding for each Capital Improvement project, he will set up a separate line item for that improvement. This will allow him to advise the BOD on the progress & estimated cost of each project. It was pointed out that Chuck Hewins, as Chair of the Long Range Planning Committee, presented a “Capital Improvement Program” to this committee in Oct. of last year. That CIP has not, as yet, been approved by the BOD.
Mr. Kovach informed this Committee that the BOD is considering consolidating and streamlining the activities of the association committees. Mr. Sessions expressed his desire and intent to integrate all of the departments into one Management team with the intent of maximizing the utilization of all staff members for the betterment of the association. Mr. Archibald reiterated the goal of having Golf Operations being self funded and he feels we are making substantial progress in achieving that goal. Mr. Sessions reviewed his efforts in cost reduction by getting competitive bids from area suppliers. Mr. Kovach and Mr. Sessions reviewed their efforts to collect past due assessments. There has been considerable success but for a variety af reasons many have not been collected. There are about 30 2009 delinquent lots. He has not been able to locate the owners of eight of these lots. The last resort in the collection process is legal action and that may be necessary for a few of these lots. At present there about 300 delinquent lots for 2010.
‘Mr. Sessions reviewed his intended procedure for developing the annual “Operating” budget. In general he will accept the responsibility to work with his staff to develop the budget and present it to this committee. He will need guidance from the committee and the BOD as to the level of funding etc. that he can expect in the budget development.
Mr. Archibald and Mr. Sessions reiterated the intent of having all committee minutes and the General Manager’s report published on the association web site so as many members as possible can be kept informed.
Mr. Sessions informed the committee that our lawyer is reviewing the authority of the BOD in reducing the assessment to $300. It is agreed that the BOD had and has the authority to set an “effective” assessment less than the base. What is in dispute is whether the BOD had the authority to change the base assessment at a percentage different than the CPI. The lawyer is also looking at the legality of the association utilizing some of the association owned lots as “common” areas rather than “residential”.
The utilization of the Barn & Silo in light of the engineer’s report was discussed. Some retrofitting has been accomplished and it is generally agreed that both structures are reasonably safe for their present use. It is apparent however, that the future of both structures is in question and decisions concerning them need to be made in the near future. Those decisions will probably revolve around the expenditure of considerable “capital” funds. The Cook Shack now has an ADA restroom with a concrete ramp leading to the door. The improvement to the shack is now complete. The BOD, during the May 15 meeting approved $25,000 of “capital” funding for cart path improvements during 2010. It is anticipated there will be a $25,000 annual expenditure of “Capital” funding for cart path improvement until there is no longer a need.
The next meeting will be June 7 @ 3:00 in the Library.
Meeting adjourned at 4:15 P. M. followed by an examination of the new bathrooms in the Cook Shack. Congratulations to Ernie for a job well done and thanks to Don McCormick and Jeff Earl for their work on the shack and ramp.