Summary of Finance Committee Meeting of 24 July 2007

Present:

            Finance Committee:  Sanya Ham, Don Horan, Jean Strub

            Board of Directors (BoD):  Bill Nosal, Jake Bernard, Toni Brown, Dan Owens

FRCA Account:  The financial statements for June were discussed.  The format and quality of the statements are good and getting better with each month.  However, the Finance Committee has some concern over what the reports are telling us about spending in 2007.  So far in 2007, almost $29,000 has been spent for General Repairs / Maintenance, but only $25,000 was budgeted for that category for the entire year.  Almost $4,900 has been spent for Gate Repairs, but only $5,000 was budgeted for 2007.  Almost $8,200 has been spent for electricity external to the Community Center, e. g., streetlights and gate operation, but only $9,000 was budgeted for 2007.  Almost $3,900 was spent for telephones, but only $5,000 was budgeted for the entire year.  These are categories that are difficult to control.  So far these high expenditure rates have been balanced by low expenditure rates in other categories.

Investments:  Money from the CD at CAB maturing on 25 July 2007 should be deposited in the B B & T Replacement Reserve account.  This should raise the balance in this account to approximately $143,000.  The Finance Committee recommends to the BoD that Armstrong Management be directed to then purchase two additional CDs, one for $75,000 with a 36-month term and the other for $50,000 with a 24-month term, using funds from the B B & T Replacement Reserve account.  The two CDs should be purchased from banks paying the highest rate of interest for the desired term, provided that the FDIC coverage maximum not be exceeded during the terms of the CDs.  Based on the 20 July CD rates, a 36-month CD for $75,000 at 5.16% would be purchased from Alliance Bank, and a 24-month CD for $50,000 at 4.94% would be purchased from Congressional Bank.

Budget:  Draft budgets are due from Armstrong Management to the BoD by 15 August.

Contracts:  Proposals for the trash collection contract were evaluated by an evaluation committee comprising Sanya Ham, Paul Rankin, and Don Horan.  Six proposals were received by the evaluation committee on 16 July.  Interviews with four of the six bidders were conducted on 19 July.  Recommendations were sent to the BoD on 20 July.

It was called to the attention of the BoD members present that the contract for cable TV services with Cox Communications expires in late October and a 90-day notice was required or the contract would automatically renew for another year.

The Finance Committee still needs electronic copies of many of FRCA’s active contracts.  Don Horan will send a list of needed contract copies to Sylva.  Contract copies are especially needed to support the imminent review of the 2008 budgets.