BUDGET & FINANCE COMMITTEE
MINUTES OF APRIL 18, 2007, MEETING

I. Call to Order

The meeting was called to order by George Field at 7:32 pm. In attendance were committee members George Field and Bill Goetz and Board members Bill Massarella, Warren Miller, and Ed Plummer. The meeting was held in the library of Marsh Mansion.

II. Committee Business

As a special, finance informational meeting is scheduled for April 24th, the focus of today's meeting was largely preparatory for the meeting next week.

 

II.A Bill Goetz, a new committee member, asked for a description of the Budget and Finance Committee's role. Warren Miller explained that the committee acted in an advisory capacity to the Board.

II.B. Bill Goetz asked for an explanation of why the monthly financial reports keep saying that we have no operating funds. Warren explained that the issue is confusing because operating funds are not the same as the amount of money in our checking account; but rather (for March '07) the calculation that
follows:

 

from Total Cash & Investments for March		$ 286,938.03
subtract Total Equities Reserves and Liabilities
2200 Prepaid Residential Assessments	$( 44,759.08)
2201 Prepaid Developer Assessments	( 5.000.00)
3110 Initial Working Capital	( 64,785.00)
3200 Repair/Replacement Reserve	( 171,246.00)
3210 Painting Reserve	( 12,500.00)
2002 A/P Income Tax	( 1,343.00)
2400 Accrued Expense	( 8,159.74)
	------------------
	$ ( 307,792.82)	(307,792.82)
		===========
Operating Funds		$ ( 20,854.79)

 

for March is thus a negative $ 20,854.79. SCS recommends that the Operating Fund Balance should be maintained at 2 months of assessments, which would currently be 76 units x $700, or $53,200.

II.C. Bill Goetz presented his own spreadsheet projections and felt strongly that a special assessment was not necessary at this time. Warren Miller, as our treasurer, was equally convinced that one was needed. Bill and Warren agreed to meet again on Monday to see whether either could change the other's mind.

II.D. Ed Plummer reviewed implications of a recent roof inspection that found a number of problems and that the Board would be sending a "final" packet of information and instructions to our lawyers so that negotiations with the developer on remaining warranty issues may proceed.

II.E. Ed Plummer noted that bid proposals for new housekeeping contracts had been distributed to the Board and the committee and asked for members reaction. Feelings were unanimous that the J&B Cleaning Service proposal appeared to be the best. Ed Plummer will confer with J&B to clarify some minor
points in the proposal and then work with Stephen Harrison at SCS to effect the changeover from our present contractor to the new one. The existing contract has a 90-day cancellation clause.

II.F. Bill Goetz asked if it would be possible to have a standing meeting date and place, such as the 3rd Wed at 7 pm. He will check with the Club House and confer with Committee Chair Betty Lecitra.

III. Meeting adjourned at 8:55 pm

Respectfully submitted,

Ed Plummer, Acting Secretary

Return to Home Page