Budget and Finance Jan 16th Meeting

Budget & Finance Committee

January 16, 2013

1. Meeting was called to order by Chair at 7:02 p.m.
2. Committee Attendees: Ty Kehrer (Chair), Wes Elliott (Vice Chair), Ken Walsh, Dale Urbanek and Nimish Sanghavi.
     Non-Committee Attendees: Wendy Taylor (General Manager), Scott Fisher (SRP Treasurer), Suzanne Allen (Armstrong Management), and Robin Kinkead (Resident).
3. Public Comment / Issues:  There was a brief discussion related to the basketball hoops and the new rules associated with them.
4. No one electronically recorded the meeting.
5. The Committee reviewed the draft minutes from December 12, 2012 meeting. 
a. Ken Walsh made the motion that the Budget and Finance Committee accept the December 12th, 2012 minutes as presented.”  The motion was seconded by Wes Elliott. 

b. The motion passed with Nimish Sanghavi and Dale Urbanek abstaining.
6. The Committee reviewed the first draft of the December 2012 financial statements prepared by Armstrong Management.
a. The group discussed the Allowance for Doubtful Accounts and additional Bad Debt write-offs.  An additional write-off related Legal Fees Receivable will be posted for the next draft of the December financials.

b. There was a brief discussion related to the Funding Cash Reserves adjustment that is done at year end.  This will be done after the audit is issued.

c. There was a discussion related to Funding Inadequate Reserves.  Wes Elliott made the motion that the Budget and Finance Committee Recommends to fund $50,000 to the Office Equipment Replacement Reserves and $50,000  to the Pool Replacement Reserves from the excess operating income in order to fund inadequate funding shortfalls in reserves.  The motion was seconded by Dale Urbanek.  The motion passed “Unanimously”.
d. There was a brief discussion related to the allocation of salaries expense to the magazine expenses to properly recognize all the costs associated with the production of the neighborhood magazine.
7. The Committee reviewed and discussed investments.

a. To reduce the due to/from balances between the Capital Improvement fund and the Operating fund the Committee recommended upon maturity on January 25th the transfer of the Eagle Bank CD from Capital Improvement to Operating.  Those funds will be combined with a smaller Operating Fund Eagle Bank CD that matures also on January 25th.  Those funds will be used to purchase a nine month penalty free CD at Eagle Bank at .4%.  The combined purchase amount will be approximately $237,000

b. The Committee decided to hold off on recommending any Replacement Reserve CD’s until a new CD list can be distributed via e-mail on or about January 23rd.  It was determined that any recommendation would not be available in a week when three Replacement Reserve CD’s mature.

8. Review of bids for furniture purchases.
a.  The Committee reviewed proposals to purchase new pool furniture for the Hyland Hills Pool. Wes Elliott made the recommendation the use of Hadsell to purchase new pool furniture at a cost of up to $115,000, with $82,000 from Replacement Reserves and $33,000 from Capital Improvement funds.  The motion was seconded by Dale Urbanek.

b.   The motion passed “Unanimously”.
9. It was noted by the Chair that Robin Kinkead had attended three meetings in a row and is now again an official member of the Budget and Finance Committee.
10. The meeting was adjourned at 8:23 p.m.
11. The next meeting of the Budget and Finance Committee is Wednesday, February 20, 2013 at 7:00 p.m. at Town Hall.