Budget & Finance July 22nd Meeting

Budget & Finance Committee

Budget and Finance Committee
July 22, 2014
Meeting Minutes

1. Meeting was called to order by the Chair at 7:00 pm.

2. Committee Attendees: Wes Elliott (Chair), Ty Kehrer (Vice-Chair), Nimish Sanghavi, Ken Walsh, Robin Kinkead and Dale Urbanek

3. Non-Committee Attendees: Wendy Taylor and Rebecca (?) (SRP General Manager and ?), Scott Fisher (SRP Treasurer) and Ted Lang (SRP Vice President),  George Ellis (SFMC), and Michelle Baldry from Reserve Advisors.

4. Public Comment / Issues: None

5. No one electronically recorded the meeting.

6. The Committee reviewed the draft minutes from the June 18, 2014 meeting:

a. Ty Kehrer made the motion that, “The Budget and Finance Committee accept the June 18, 2014 minutes as presented.”  The motion was seconded by Dale Urbanek.
b. The motion passed “Unanimously”. 

7. The Committee reviewed the financial statements for June 2014:
a. Robin Kinkead made the motion “The Budget and Finance Committee accept the June 2014 Financial Statements as presented”.  The motion was seconded by Nimish Sanghavi.
b. The motion passed “Unanimously.”

8. Michelle Baldry of Reserve Advisors presented the Reserve Study to the committee.  The committee discussed the findings with Michelle, specifically noting the increases in reserve requirements.  Wendy and Michelle were to continue fine tuning the findings to create as accurate and usable a reserve study as possible.  Wendy was to use the updated reserve funding levels in preparing the 2015 budget.  The reserve study is to be accepted at a future date.

9. The committee reviewed and discussed investments:
a. The meeting was held at a time other than normal, and Ted Hart did not provide a rate sheet for reference.
b. The committee requested that MSSB invest $245,000 of Replacement Reserve Funds into a 36 month CD maturing in the 3rd quarter of 2017.
c. The committee requested that MSSB invest $245,000 of Operating Reserve Funds in an 18 month CD.
d. The committee requested that MSSB invest the funds from the Eagle Bank CD maturing on 08/01 into a 30 month CD.

10. There was a discussion regarding the IRS Audit.  Our tax exempt status was affirmed, and there were no changes to our tax returns.  To be more compliant with the requirements, we are changing the wording of several items on our website to be more inclusive (i.e. “4 pools available for our residents” being rewritten as “4 pools available”).

11. There was a discussion regarding the replacement of the 2003 Dodge pickup:

a. Robin Kinkead made the motion that “The Budget & Finance committee recommends that we purchase a 2015 Ford F-250 Super Duty 4x4x from Battlefield Ford with replacement reserve funds not to exceed $43,000.  The committee further recommends that we take advantage of the $1,000 discount for financing the vehicle with Ford Motor Credit, as long as there is no prepayment penalty.  The committee makes this recommendation with the understanding that the vehicle would be paid off in full as soon as permissible.  Dale Urbanek seconded the motion.
b. The motion passed “Unanimously.”

12. The meeting adjourned at 8:34 pm.