ECA Finance and Budget Committee Meeting of October 12, 2022 Meeting (via Zoom)

In Attendance: Chair Paul Handley; Voting Members: Arthur Paulone, Doug Kerr, Paul Marinelli, Sheila Shulman; Council Liaison Paul Nicolai; Alternates: Julianne Barrett, Steve Bookless; Ex officio: CFO Brian Harding; Guests: Judi Dixon, Rick Karash Absent: Bob Benson, Don Clews, Treasurer George Foley, Judi Platt

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Approval of Minutes of September 14, 2022 Meeting - Chair Paul Handley called the meeting to order at 5:10 pm and moved the minutes be approved as amended. Arthur P seconded the motion. The committee voted unanimously to approve the motion.

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Comments by the Chair – Chair Paul Handley welcomed George Foley as the new treasurer of the Finance & Budget Committee. The P&L trajectory looks good given the economic environment and we continue to see strong performance. It was also noted that the F&B charter review requested by Sheila should be a standard yearly item.

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CFO Report – o Operating results: continue to run well ahead of budget on revenue and below on expenses. The Bad Debt Allowance will be left where it is until March when a final adjustment will be made. If we were to book a year to date adjustment, there would be a $58,000 expense credit to the P&L, therefore improving profitability by $58,000. If that does not change by the end of the year, we would reflect that pickup in the P&L at year-end. o Capital results: slightly above 33% capital budget expenditure so far, anticipate an increase for the paving work done by United. Final payments have been made for the pickleball courts and an electric utility car replacement. Brian Harding’s CFO notes are attached to these minutes.

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Treasurer’s Report – CFO Brian Harding presented the treasurer’s report in lieu of George Foley’s absence. The only risk included in the report is oil prices are up and may increase further, driving up the CPI. Under capital and operating funds, assessments are labelled as cautionary because the markets are at risk which could have an impact on owners’ ability to pay assessments. Membership fees are cautionary as well due to slowing real estate sales. All other categories are healthy in the treasurer’s report.

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Old Business – Chair Paul Handley shared a recap on revenue sources for capital from a previous subcommittee meeting. Opinions were discussed regarding the buy-in fee, capital reserve change, and transfer from the operating reserve. o The buy-in fee is currently $5,000 and has not been updated in 14 years. Quechee is around $7,500 for reference. There was some discussion whether making a change now may not be good due to a slowing real estate market and rising interest rates. It was suggested that an increase to 6k may be appropriate. The end opinion is that the committee is open to adjusting the buy-in fee, however, would like more data collected from other associations. This could be a viable source for increasing revenue, and will be considered. There needs to be sound justification for changing the buy-in fee. This council action requires ratification by the board. No change will be factored into the FYE2024 budget. o Reducing the capital reserve level was disfavored because it was felt our current reserve level is not conservative and reducing it would increase our exposure to unplanned requirements. Comment was raised about temporarily reducing the capital reserve level to ease this issue if needed and there was a clear path to restoring the reserve to defined levels. o Regarding the transfer of the operating reserve, it was recommended to use some portion of funds of operating reserve for CAPEX requirements if needed. Paul Handley mentioned that this route may be the most viable in abetting capital revenue sources. George Foley will be notified of the committee’s position on sources of capex revenue.

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New Business : o Sheila Shulman requested the committee to send their ideas about amending the F&B charter to Judi Platt and Sheila to compile them for discussion next meeting. The charter was last updated in 2014 and is still in good shape for the most part. o Brian Harding spoke about a mistake made regarding the boat rentals line item and assured that it will not repeat next year.

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Adjourn – With no further business to come before the committee, Doug Kerr moved the meeting to be adjourned. Paul Marinelli seconded the motion. The committee voted unanimously to adjourn the meeting at 6:27 pm.

Respectfully submitted, Collin Kennealey, Secretary