Budget & Finance July 17th Meeting

Budget & Finance Committee

1. Meeting was called to order by Chair at 7:04 p.m.

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

Non-Committee Attendees: Wendy Taylor (General Manager), Scott Fisher (SRP Treasurer), Jamie Brodnax (Armstrong Management) and  Schalyn Sohn (SR Resident).

3. Public Comment / Issues:  None

4. No one electronically recorded the meeting.

5. The Committee reviewed the draft minutes from the June 19, 2013 meeting. 

a. Robin Kinkead made the motion that, “The Budget and Finance Committee accept the July 19th, 2013 minutes as presented.”  The motion was seconded by Dale Urbanek. 
b. The motion passed with Ken Walsh and Ty Kehrer abstaining.

6. The Committee reviewed the financial statements for June 2013.  There was a brief discussion on adding a separate line related to Sponsorships within the financial statements to better track the money received.  The Committee had no issues with that.

a. Wes Elliott made the motion that, “The Budget and Finance Committee accept the June 2013 Financial Statements as presented”.  The motion was seconded by Ken Walsh.
b. The motion passed “Unanimously”.

7. The Committee reviewed and discussed investments.

a. To settle up the due to/from accounts between the funds, the Committee suggested a transfer of $29,293.50 from the Replacement Reserve Fund in the Smith Barney MM to the General Operating Bank United account.
b. The Committee suggested that the Board purchase in the General Operating fund a new 12 month CD with Fifth Third Bank for $245,000 paying .4% out of the General Operating Smith Barney MM account.  This is CD offering #42 on the list provided by our financial advisor.
c. The Committee suggested that the Board open up two new Money Market accounts through FirstService specifically with Customers Bank paying .45% and OneWest paying .55%.   These accounts will be funded with a combination of transfers from the Capital Improvement fund which will settle up the due to/from account. 
i. Once the Torrey Pines Bank CD in the Capital Improvement fund matures on August 3rd and the money has been received.  A transfer of $146,000 will be transferred to the General Operating Fund and put into one of the two new money market accounts. 
ii. A transfer from the Capital Improvement Fund Smith Barney MM account to one of the two new General Operating Fund accounts for $225,000 will be made as well. 
iii. A third transfer from the Capital Improvement Fund Sona Bank money market account to one of the two new General Operating Fund in the amount of $57,000. 
iv. In all $428,000 will be transferred from the Capital Improvement Fund to the General Operating Fund to settle up the due to/from accounts.  Ultimately we suggested $240,000 go into the OneWest and the remaining $188,000 go into Customers Bank.
d. The Committee suggests the Board purchase in the Replacement Reserve a new CD with BMW Bank for $240,000 paying 1.4% for a period of 4 years from the Smith Barney MM account.  This is offer number 98 on the list provided by our financial advisor.

8. The Committee reviewed the proposal from Solitude Lake Management to maintain all the ponds within the community.  Robin Kinkead made the motion, “The Budget and Finance Committee accept and extend the Solitude Lake Management contract for 1 year to maintain all the community ponds at a cost of approximately $21,000.”  The motion was seconded by Ken Walsh.  The motion passed “Unanimously”.

9. The meeting was adjourned at 8:20 p.m.

10. The next meeting of the Budget and Finance Committee is Wednesday, August 21, 2013 at 6:00 p.m. at Town Hall.  Dinner will be served for this meeting.