Budget & Finance Aug 20th Meeting

Budget & Finance Committee

1. Meeting was called to order by the Chair at 6:40 pm at South Riding Center.
 
2. Committee Attendees: Wes Elliott (Chair), Ty Kehrer (Vice-Chair), Nimish Sanghavi, Robin Kinkead.
 
3. Non-Committee Attendees: Wendy Taylor and Rebecca Lyons (SRP General Manager and Assistant Manager), Scott Fisher (SRP Treasurer) and Ted Lang (SRP Vice President), Jeff Salmon (SR BoD), Meggan Walker (SR BoD), Estee LaClare (SR BoD), Paul Orlando and Suzanne Allen (both from SFMC).
 
4. Public Comment / Issues: None
 
5. No one electronically recorded the meeting.  Minutes were recorded for this meeting by Robin Kinkead.
 
6. A line by line examination and discussion of the Staff’s proposed Budget for 2015 was conducted.  The Committee resolved questions and agreed that the resulting Budget was ready for presentation to the Board of Directors. 
 
7. The Committee reviewed the draft minutes from the July 22, 2014 meeting:
a. Ty Kehrer made the motion that, “The Budget and Finance Committee accept the July 22, 2014 minutes as presented.” The motion was seconded by Nimish Sanghavi.
b. The motion passed “Unanimously”. 
 
8. The Committee reviewed the financial statements for July 2014:
a. Robin Kinkead made the motion “The Budget and Finance Committee accept the July 2014 Financial Statements as presented”.  The motion was seconded by Nimish Sanghavi.
b. The motion passed “Unanimously.”
 
9. The Committee reviewed and discussed investments:
a. The Committee requested that MSSB invest the $239,000 funds just received by Staff from the Eagle Bank CD per prior instructions.
b. Staff will request MSSB to investigate investments with less than 1% interest that mature after 2017 and determine if there would be a financial benefit to paying the penalty for early withdrawal and reinvesting with higher yields.
c. The Committee gave permission to change the address and then close the Capital One Money Market and forward the funds to MSSB for reinvestment.  Paul Orlando will investigate why the statements show no interest accrued even though rate is 0.35%. 
 
10. There was a discussion regarding the two potential sites for a Maintenance Building to be constructed.  The Committee recommends using Site B based on Staff’s determination that it was sufficient for our needs, and the significant Capital Fund savings and partial replenishment with the sale of Site A.

11. There was a discussion regarding the request by Staff for Milling and Paving:
a. Wes Elliot made the motion that “The Budget & Finance committee recommends that we contract with Virginia Paving Company not to exceed $75,000 to mill and overlay South Riding Blvd, Corcoran Ln, Cunard           Alley, McKenzie Ln and McDeeds Ln.  Ty Kehrer seconded the motion.
b. Committee further requested that additional areas be addressed as soon as possible to avoid further decay over the winter.
c. The motion passed “Unanimously.”
 
12. There was a discussion regarding VDOTs request for a Letter of Credit:
a. It was recommended by Committee to examine the financial impact of purchasing a Surety Bond vs the Letter of Credit with BB&T for $130,000 understanding that one of these actions must be undertaken to meet       the VDOT requirement.  The LoC is estimated to cost $350 for 5 years and interest is accrued.
 
13. Due to unforeseen personal circumstances, Wes Elliot is stepping down immediately as Chair.
a. Nimish Sanghavi  made the motion “The Budget and Finance Committee nominate Ty Kehrer to return as Chair of the Budget and Finance Committee effective immediately”.  The motion was seconded by Robin         Kinkead.
b. The motion passed “Unanimously”.
c. Robin Kinkead made the motion “The Budget and Finance Committee nominate Nimish Sanghavi as Vice-Chair of the Budget and Finance Committee effectively immediately”.  The motion was seconded by Wes Elliot.
d. The motion passed “Unanimously”.
 
14. The meeting adjourned at 9:05 pm.