TREASURER’S REPORT

January 12, 2002

Bills: The Finance Committee met on January 5th. Following review of the “Unpaid Bills Summary”, comparison with the bills on file and clarification of questions with Barbara Huff, the committee recommends that the bills be paid.

Finance Update:

• Thank you to Ken Freeman who worked with Barbara to complete setting up the online bill paying system. We will now be able to pay most of our bills by this method thereby saving staff time, postage and check writing expenses.
• Options for alternative marine insurance coverage through the Passenger Vessel Association are currently being explored (see Island Manager’s report).
• Doug Collier’s office has completed our federal homeowners’ association income tax return for the fiscal year ending 9/30/01. We will receive a $3,000 refund.

• The annual audit has been completed. The Statement of Cash Flows shows cash on hand Sept. 30, 2001 as $41,897. After subtracting accounts payable of $3,985, we have a $37,912 surplus (includes some unspent funds from the 99-00 fiscal year). These funds provide a unique opportunity to use existing funds rather than special assessments to pay for several Island improvement /repair projects. The Treasurer, Finance Committee and Island Manager have developed a list of potential projects for the Board’s consideration:
• The small water system study – allocate up to $15,000 (requires membership vote).
• Coast Guard fine – up to $5,000 is needed should our appeal be unsuccessful. Consider transferring these funds to the new insurance/legal reserve.
• Maintain $10,000 in the General Fund to provide some cushion in the event of less than anticipated assessment payments or ferry revenue.
• Dock repairs – replace aging cables and other maintenance items
• Complete electric pump station at North Beach for dust control
• Purchase new reservoir lid as recommended by the Department of Health
• Upcoming dry dock – is any special work required?

To move forward, I recommend that a ballot measure be included in the January Beachcomber to approve the water system planning study using surplus funds. This should be combined with a second ballot measure seeking membership approval to sell the KWM and Guarisco properties.

December Ferry User Fees: $5,836 (vs. $6,959 in Dec. 2000). Year-to-date ferry revenue is $23,844 (vs. $24,327 in 2000). Seven Senior passes and three crew passes were purchased in December.