NORTH COAST RAILROAD AUTHORITY (NCRA)

 FINANCE COMMITTEE MEETING

 

MINUTES

 

May 9th, 2003  

 

Ukiah Valley Conference Center

200 South School Street, Ukiah, Mendocino County, California

 

 

A.              CALL TO ORDER – at 9:03 am.

           

B.               ROLL CALL 

Committee Members present:  Bob Simonson, Budge Campbell, and Allan Hemphill.

Also present:  NCRA Executive Director Doug Christy, Legal Counsel Chris Neary, and Executive Assistant Dina Polkinghorne

 

C.              AGENDA APPROVAL

Committee Action: Upon motion by Director Campbell, 2nd by Director Hemphill, and carried (3-0) the committee moved to accept the agenda as presented. 

 

D.              PUBLIC COMMENTS

None

   

E.        CONDUCT OF BUSINESS

 

1.               Approval of Quarterly Financial Update and Debt Repayment
 
Executive Director Christy presented a Financial Update to the committee.
 
1.) The cash reserve entering the 03/04-budget year, if outstanding invoices are not paid, is $266,000.
 
2.) The total outstanding invoice due in the 02/03-budget year is $206,000.
 
3.) The cash reserve 03/04 if all outstanding invoices are paid will be $60,000.
 
4.) A low estimate for cash reserve for the 03/04 Agency Budget will be $114,000. A high estimate will be $635,000. 

 

Director Campbell inquired about combining the property budget with the administrative budget to create a combined “Agency Budget”. Mr. Christy stated that the property budget is really comprised of mostly revenue, which funds the administrative budget. Originally the administrative budget was funded by TCRP but that is no longer the case. Director Hemphill inquired whether or not projects were separate from the Agency Budget to which Mr. Christy explained they were. Director Campbell stated that if the two budgets are combined, separate cost centers should still be maintained. There was further discussion regarding the combining of the property and administrative budgets and the general consensus was that they should be combined but the item will be brought to the full board at the next meeting.

 

5.) Valid Long-Term Debt amounts paid in full by 06/30/2004 is $727,095.

                             

Committee Action: Upon motion by Director Hemphill, 2nd by Director Campbell, and carried (3-0), the committee recommended that the Executive Director present a budget showing the sources of income that would be used to satisfy the long term debts. 

 

6.) Mr. Christy went over the status of contingent liabilities of the NCRA. The Boyle Engineering liability is $47,000 and is pending litigation. The TCR Debt Reduction amount is $98,887 and the status is unknown. The FEMA loan of $855,000 is in the process of forgiveness. The Union Pacific states that NCRA’s care hire liability to them is over $1 million.

The liability amount for the Black Point Bridge is unknown.

 

                       

F.         MATTERS FROM COMMITTEE MEMBERS

           None

 

G.        ADJOURNMENT       9:58 AM

Committee Action: Upon motion by Director Hemphill, and 2nd by Director Simonson, and carried (3-0), the Finance Committee adjourned.