ECA Finance and Budget Committee Meeting Minutes of February 14, 2022 Meeting (via Zoom)

In attendance: Paul Handley-Chair, Sheila Shulman , Don Clews, Paul Marinelli, Art Paulone, Doug Kerr, Bob Benson, Judi Platt, Steve Bookless, Rick Karash-Board Treasurer (ex-officio), Peter Paul Nicolai, Brian Harding-CFO Visitors: Terry Large Paul Handley called the meeting to order at 9:01 am. 1. Approval of Minutes - the minutes of the previous meeting, upon motion by Paul Marinelli and a second by Don Clews were approved, with one abstention. 2. CFO Report – Brian commented that results continue to be favorable, but expenses were up in some categories and the projected surplus has declined (see CFO Notes attached). 3. Treasurers Report – Rick reported that all metrics are positive with some concern about future membership fees. 4. Old Business – The Chair reported that the budget presentation to the Board was generally positive with some concerns expressed regarding user and credit card fees. 5. New Business: A. The Chair presented a proposal regarding an operating reserve and, after vigorous discussion, a subcommittee led by Sheila Shulman was formed to make a recommendation to the full committee at the next meeting. B. The Chair reported that a CIC Executive Committee was formed to evaluate CARS. C. Brian reported that credit card use will expand greatly with the new portal with on-line fees to be paid by the user and in person fees to be paid by ECA. D. A motion to increase finance charges (to 6.75%) by Don Clews, seconded by Art Paulone, was approved with one dissenting vote. E. Fee schedules were discussed and a motion to amend the schedule by Don Clews, seconded by Art Paulone was passed unanimously. Don Clews will propose changes at the next meeting.

F. The Chair reported that a new candidate will present next month. There being no further business a motion to adjourn was made by Doug Kerr and seconded by Art Paulone at 11:05 am.

Respectfully submitted, Paul Marinelli

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Appendix to F&B Minutes of 2/14/22

Summary of ECA Financials as of January 31, 2022 Brian Harding, Chief Financial Officer Financial Results for April 1 – January 31: •

Operating Revenue – Through January 31, the revenue collections continue to above budget, approx. $228k year-to date. Almost all of the revenue surplus is related to summer activities, so there is no change to the areas where we have the biggest gains: -

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Golf Memberships, Green Fees, Cart rentals, Golf Tournaments, Watercraft Storage Fees, and Retail Sales.

Operating Expenses through January also continue to show a favorable variance against budget, at ($123k). While this is still a good result, the level of the expense underrun has declined since the end of December. As a result, I’ve updated the year-end projection to now show a March 31st Net Income level of approximately $210k versus the $250k we were showing previously. The slightly more pessimistic outlook is related to the following accounts: -

Supplies: exceeding budget by $9k y-t-d due to both unanticipated purchases and higher prices.

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Utilities: costs for utilities continue to run well above budget, approx. $28k through January.

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Vehicles & Equipment Maintenance remains a very challenging area for us, and we’ve had breakdowns and needed repairs on many units in our fleet. This account is running over budget by $55k, double the amount of overrun we had just 2 months ago.

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Winter Operations is running over budget for the first time this fiscal year – it’s over by $13k at the end of January, and that doesn’t include some expenses for the month that were billed after we had closed the books. Right now I’m showing that we’ll miss this budget by $10k, and that might be optimistic.

I will update the year-end projection again next month, after we have the February results in hand. •

For the Capital budget, we paid two large invoices in January for projects that wrapped up in late fall – Paved Roads Rehab ($207k) and Golf Master Plan FY ’21 ($55k for work on the 8th cart path). Approximately 87% of the capital budget has been expended and the monthly payments on the Center and Maintenance Facility loans will likely comprise the largest capital expenditures for the remainder of the fiscal year.

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Employee Health Insurance – we recently learned from Amplify that the rates for the employee health insurance will increase 31% when the plan renews on March 1st. We were concerned this might happen. It was this time last year when we switched from ADP to Amplify. The health insurance through ADP, which was with BCBS, had been increasing steadily each year. There were two years when the increase was over 20% and, in both those years, we had to increase deductibles and change other plan provisions to keep the increases from being even higher. At the recommendation of the Personnel & Compensation Committee this time last year, we solicited proposals from a couple of other PEO providers and selected Amplify. Their health insurance rate quote was approximately half the level of ADP’s renewal rates, with better coverage levels, so it was an easy decision. Given the large difference in the rates, we understood there was probably a “buy in” element factored into Amplify’s quote to get our business, and we knew we would likely see a rate jump for our first renewal. So here we are. Fortunately the funding level we included in the proposed FYE 2023 budget for Employee Benefits is sufficient to cover the increase (based on the current employee census). Even with this increase, there’s no question that moving to a new PEO agreement was the correct decision. For the current fiscal year, we will save over $100k in benefits expenses with Amplify and will save another $60k to $80k in FYE 2023 compared to the expenses we would have incurred had we remained with ADP.