Planning and Finance Meeting MINUTES
Tuesday, February 1, 6:00 PM Zoom Meeting
P&F Committee Members: Chairman P/BC - Mark Weiss, P/BC - Gerald Fey, Jeff Ohlstrom, Jan Gould P/T, Terron Lindholme P/C, Commodore Michele Bedner, Board Chairman Rodger McKinley
Guests: Treasurer Joyce Carlson, Vice Commodore Michael Day, Rear Commodore Doug Genord
Excused Absences:
Opening Comments: Started 6:03PM Planning and Finance Chairman Mark Weiss.
Approval of Minutes: Jeff Ohlstrom (motioned) / Gerald Fey (2nd) / Passed unanimously
Bridge Reports:
Commodore Michele Bedner. Concerned about membership numbers being low, and dock water-pipe repairs and how that may affect her budget. Mark said there were funds available, and how they could be gained from other areas of the budget.
Vice Commodore Michael Day: Dock Water Pipe damage is top concern.
Rear Commodore Doug Genord: City of Seattle will do a site walk of the parking lot and the damage their water main break caused to QCYC.
Board Report: Rodger McKinley, Board Chair. No report.
Treasurer Report: Joyce Carlson. No report.
Old Business:
- Budget Review 2022-2023
- R/C Michael Day said Water Pipe Repair Expenses range around $120K when externally estimated, but if work is done by membership costs may prove to only be $25K-ish. Believes there’s money in the budget, and Mark showed that it currently is available.
- Move this to next meeting, Jeff pointed out P&F has had no time to review and discuss:
- Discussed incentives of $500 off @ Open house, Open house drawing $100 - $200. Discussion differed to next meeting.
- Discussed incentives of $500 off @ Open house, Open house drawing $100 - $200. Discussion differed to next meeting.
- R/C Michael Day said Water Pipe Repair Expenses range around $120K when externally estimated, but if work is done by membership costs may prove to only be $25K-ish. Believes there’s money in the budget, and Mark showed that it currently is available.
- Budget milestone 2023-2024
- Mark said Reserve Study documents were completed and sent to P&F for review and discussion. P&F will send to BOT.
- Review of 5 year plan, to be sent to bridge with feedback incorporated
- Next milestones
- January- Planning and Finance submits 5-year Capital Plan to Board of Trustees which includes forecasting expenses, forecasting revenue and Capital Asset Fund (CAF) balance. Including CRF Goal equal to 1 year of expenses. Will send updates to Board for Feb Meeting
- February 1 – Planning and Finance and Vice Commodore review Draft Budget. Vice Commodore review and update committee expenses. Planning and Finance adds recommended Capital Project per Capital Reserve Study and Capital Plan.
- February 28 - Treasurer provides Draft Budget Proposal with Planning Input and Assumptions to Planning and Finance and Vice Commodore for review.
- Jeff said there’s a misidentification, it should reference Capital Access Fund
- January- Planning and Finance submits 5-year Capital Plan to Board of Trustees which includes forecasting expenses, forecasting revenue and Capital Asset Fund (CAF) balance. Including CRF Goal equal to 1 year of expenses. Will send updates to Board for Feb Meeting
- Mark said Reserve Study documents were completed and sent to P&F for review and discussion. P&F will send to BOT.
- Budget Actions for overspends MOORAGE INCREASE (Insurance, other)
- Outstation Rate Increase proposed by Eric Wood / Terron Lindholme. Joyce suggested an Effective Date, first day of billing quarter. P&F suggest effective date of 4/1.
- Rodger asked why not bill by length. Response from several, “Back-office nightmare”. Systems for billing and boat length not connected. Joyce says we do not have boat lengths for all boats
- Deer Harbor contract renews every 5 years. Rate went up $5,850 per quarter, $23,400 per calendar year.
- Mark brought up should we change temp moorage rates at the mainstation.
- V/C Michael Day said all costs have gone up, including moorage rates at the mainstation.
- Rodger suggested P&F look at also raising temp moorage.
- Discuss potential actions for the budget
- Moorage increase xx% min initiating on ???
- $16 for mainstation increase (Work slips, U and , $16 for outstation and $25 for Deer Harbor.
- Jan motioned, Terron seconded: $16 for mainstation increase (Work slips, U and when a member uses the recip dock) , $16 for outstation and $25 for Deer Harbor.
- Gerald is a Nay for raising moorage. Said we should raise dues instead.
- Moorage increase xx% min initiating on ???
- Outstation Rate Increase proposed by Eric Wood / Terron Lindholme. Joyce suggested an Effective Date, first day of billing quarter. P&F suggest effective date of 4/1.
- Budget Capital Reserve Fund Balance
- Mark discussed Capital Reserve Budget. Mark said there is more money, “On Paper” then what shows. Joyce said the situation was cleaned up and is resolved.
- Mark REALLY struggled to send Terron an email during the meeting. Terron didn’t care but still put it in the minutes because that’s how he rolls.
- Mark discussed Capital Reserve Budget. Mark said there is more money, “On Paper” then what shows. Joyce said the situation was cleaned up and is resolved.
- Investments
- Investment Committee – Defer discussion
- Investments draft resolution in-process and Investment Committee discussion will be suspended until resolution passes.
- Investments draft resolution in-process and Investment Committee discussion will be suspended until resolution passes.
- Investment Committee – Defer discussion
New Business:
- Revenue short fall current membership number at 375 - $42k ish.
- Mark: Budget currently assumes 390 members, but members are now at 375, and initiation fees are discounted during the boat show. 15 new members $15K + $7K makes us $15K short against the budgeted monies.
- Rodger says membership payment terms need to be better defined in a resolution as to how the BOT can approve membership discounts.
- He suggested promos for the Boat show. Gets a $500 credit to their new member account. Or win a $100 raffle give-away.
- $100 drawing OR/AND $500 credit to new membership account.
- Doug suggested we hold the $500 offer and see how successful the boat show was and whether we need to offer incentives ($500).
- Jeff says an idea needs to be hatched sooner than later as marketing plans take time.
- V/C Michael Day said there is no consideration available for this boat show. P&F agreed we move-on until a point where we get more data.
- Mark: Budget currently assumes 390 members, but members are now at 375, and initiation fees are discounted during the boat show. 15 new members $15K + $7K makes us $15K short against the budgeted monies.
- Potential actions for revenue increase.
- Discussed what taxes we may have to pay due to the 520 money, interest that will be made from the proper investment with sound investments.
- Mark asked P&F to make a BOT Recommendation/Motion, that the BOT make an investment with the 520 money. Joyce recommends $405K to be the amount to be moved for an investment account.
- Mark. asked Joyce/Jan to put together a proposal on how to best invest the 520 money. Jan suggested a laddered buying/maturity approach.
- Michael stated this is a cash management issue, that can be managed by the back office.
- Discussed what taxes we may have to pay due to the 520 money, interest that will be made from the proper investment with sound investments.
- Jeff asked about 520 fund placements – CD’s or something. Mark asked Joyce if the 520 monies have been moved. $250K is in checking, and $400K is in the sweep portion and making no interest. We are losing $2K a month in interest by not having it invested.
- Mark discussed opening investment accounts so the 520 funds can be put in an investment vehicle that can make interest.
Next Meeting: - Wednesday, March 1 at 6:00pm Zoom Meeting
Meeting Date
Meeting Type
Planning & Finance