07/30/2020

Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Thursday, July 30, 2020 at 12:31 PM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 12:31PM on July 30, 2020 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Eric Saltzer, Chairman.

    YCAA FINANCE COMMITTEE MEMBERS PRESENT WERE:
    Eric Saltzer, Chairman & YCAA Treasurer
    Dean Hager, 1st Vice President
    Albert Gardner, Director (joined the meeting electronically at 12:32PM)
    Randall Nelson, Director
    Reetika Dhawan, Director (attended the meeting electronically)

    YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
    None

    ALSO PRESENT WERE:
    Gladys Brown, Airport Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Andrea Lopez, Executive Assistant

    REGULAR AGENDA

    1) Discussion and overview of FY20 Budget in the Final Quarter.

    Ms. Brown, Airport Director, provided a presentation of FY20 Budget through June of 2020. This version of the budget included a projection of remaining revenues and expenses likely to be received or incurred for the remainder of FY20. The financial outlook included information related to FY20 budgeted revenue shortfalls, as well as receipt of CARES grant revenues intended to provide relief. The Committee expressed their understanding of the airport’s financial situation through June.

    2) Discussion and possible recommendation on the Interest Rate Election due on Long Term Note #1713

    Ms. Brown, Airport Director, explained the nature of the YCAA’s long-term tax-exempt Note #1713 including what the proceeds were used for and a basic description of the terms and conditions. Ms. Brown explained that the effective interest rate was to be selected at the option of the YCAA every five years. Staff is tasked with selection one of two interest rate options and notifying 1st Bank Yuma of our election in the coming weeks. The election process does not require official Board action.

    Terms of the note include a provision relating to the interest rate that allows the YCAA to choose between:
    1. 87.5% of Prime adjusted daily, with no ceiling or floor. Prime is currently 3.25% which would mean 2.84% if elected, or;
    2. Prime minus 0.25% fixed for five years. This would create a five-year lock at 3% if elected.

    Ms. Brown further explained that the note has a current balance of $2,451,122 with an effective interest rate of 3% with $14,747 monthly payments. The amortization is based on the scheduled maturity date of July 21, 2038.

    After a brief discussion of the current Prime Rate of Interest, the nature of the obligation, the fact that material reductions in the Prime Rate of Interest is unlikely, as well as, staff preferences, the Committee came to a consensus to instruct staff to move forward with electing the fixed rate option.

    3) Discussion and possible recommendation on the Proposed FY21 Budget for the Yuma County Airport Authority.

    The committee reviewed the Proposed FY21 Budget in some detail starting with an overview of the expected revenues and expenses, presented in a number of ways to account for possible effects of the COVID-19 pandemic and uses of CARES grant revenue sources necessary to account for budgeted revenue shortfalls.

    After an extended, detailed presentation provided by Ms. Brown of a number of elements related to the YCAA’s financial prospects for FY21 as well as FY22 and beyond, the Committee agreed unanimously, to recommend the FY21 Proposed Budget for authorization at the August regular meeting.

    ADJOURNMENT
    There being no further business before the Committee the meeting adjourned at 2:08PM.



    // Approved //
    Eric Saltzer
    Treasurer Yuma County Airport Authority; Finance Committee Chairman
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