Meeting held Tuesday 9/2/14, at the Richfield Community Center
Present: Board Members President Gary Cobus, Vice President Jana Metge, Secretary Mary DuShane; Members at Large Marilyn Bergum, Sarah Cagley, Alan Jesperson, Gary Germond, Greg Landkamer, Phil Nusbaum, Sandi Pidel, David Smith; Staff Executive Director Jed Malischke, Administrative Assistant Bea Flaming; MBOTMA Members Bill Bushnell, Paul Christianson.
Meeting called to order 7:00 pm by President Cobus. He welcomes us to the start of the fall season and explains we have a full agenda tonight with no time for additional items.
Minutes of May 2014 meeting presented. Alan moves, Jana seconds, all approve that we accept these minutes.
Report on August Festival, presented by Jed. Mary moves, Marilyn seconds that we accept this report. Discussion. David recommends two items for Jed’s review: (1) He feels the $4,000 for Ann Iijima’s publicity work should come out of the Festival budget, whereas Jed put it under the general publicity budget; (2) He requests that the word “Income” should be changed to “Revenue” in all budget reports. Jana points out that since we did lose money overall on the Festival, the Festival staff should be asked to present a more realistic budget for next year. All approve we accept the report.
Treasurer’s Report. Jed reports that the our 990 tax report for 2013 and annual non-profit report to the Attorney General have now been filed. Thanks to David for following this process through. Discussion. David objects to Jed’s presenting the report in the absence of our Treasurer Peter, saying that the Treasurer’s Report for a non-profit organization should be presented only by the Treasurer of the organization. Jana moves, Mary seconds, all approve we accept the report.
Endowment Fund. Bill Bushnell presents his annual report on the Tom O’Neill Endowment Fund. The annual income has been a very low % from our investments in CDs and US Government notes. Bill’s committee, consisting of Bill, Paul Christianson and Ross Nelson, proposes investing in stocks and bonds, which will give greater yields, averaging 7.4% to 8.1% over the last 10 years. We currently have $32,455 in CDs. Bill proposes we invest $10,000 in stocks and bonds this year, more as the CDs mature. Gary G moves, Alan seconds that we accept this proposal. Discussion: Jed points out that we need sources of income to replace the fundraisers formerly held at Dulono’s. Bill suggests we formulate a plan for educational activities, as a selling point for fundraising. Alan points out that Carbone’s may be a viable venue for our fundraisers. Motion passes.
Budget Report, presented by Jed. Extensive discussion. David discusses our losses, saying we are significantly over budget, following a downward trend of several years’ duration. He says he has prepared a cash flow report projecting that we will run out of money by the end of the year. Jed responds that he is confident our current cash flow is adequate for us to pay our bills through the end of the year and on to the Winter Weekend. Jana moves, Alan seconds, all approve acceptance of the report.
Review of 2015 Budget. Extensive discussion. Jana has recommendations for fundraising and for cutting expenses, specifying, for example, that we could save $3K by eliminating the Lonely Pines concert series, $5K to $10K by postponing the proposed organization audit (“Agreed-Upon-Procedures”) or at least doing it over the course of 2 years, $5K by asking the event committees to find ways to raise revenues or reduce expenses by 10% of their budgets, $1K to $2K by combining the December & January issues of the magazine, thereby dropping one magazine per year, and $1K by tightening up our comp ticket policies for events. Jana moves, Phil seconds that we start revising the 2015 budget by accepting the adjusted budget numbers as presented by Jed in the budget review spreadsheet. All approve this motion. Jana then moves that we zero out the Lonely Pines budget, reduce the administration budget by $10,000, drop the magazine budget by $1,000, and ask the event committees to find ways to raise revenues by 10% or cut expenses by 10% from their current budget proposals. All approve this motion. Further revisions and final approval of a revised 2015 budget are tabled until next month.
Membership Report. As we are running out of time this meeting, Marilyn briefly introduces her membership ideas, including the results of the online survey she drafted, disseminated and compiled over the summer. She has four handouts for us to review and think about. We will put her membership ideas at the top of the next month’s agenda.
President Cobus suggests we change the Tuesday, November 4 meeting date, as it is an election day, to Thursday, November 6. We will decide next month.
Meeting adjourned at 9:05. Next meeting October 7 at the Lunds store in Edina. Submitted by Mary DuShane, Board Secretary