Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Monday, February 28, 2022 at 10:30 AM
Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 10:30AM on February 28, 2022 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Stanley Gourley, Chairman.
YCAA FINANCE COMMITTEE MEMBERS PRESENT WERE:
Stanley Gourley, Chairman & YCAA Treasurer
Reetika Dhawan, Director (exited the meeting at 12:22PM)
Albert Gardner, Director
YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
ALSO PRESENT WERE:
Gladys Brown, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Silvia Gunderman, 1st Bank Yuma
Chris Hacker, Mead & Hunt
Kara Lehmann, Gordley Group
CALL TO THE PUBLIC
There were no Public Comments.
1) Discussion and possible recommendation related to YCAA long-term debt.
Ms. Brown, Airport Director, and Mr. Hinkle, Chief Financial Officer provided an analysis of the YCAA’s existing long-term debt, including a description of the capital infrastructures acquired with the proceeds of each note, a summary of existing terms and a look forward at the YCAA’s ability to continue to meet debt service requirements. The consideration was initiated by the concern over the possibility of the increases in the Prime Rate of interest which would immediately increase the cost of debt instruments such as Note #1944 which has a variable interest rate. The presentation included elements important to evaluate if it was the Committee’s intent to consider the possibility of recommending the early retirement of existing debt using the YCAA’s increased levels of capital reserves.
After the presentation was concluded, Silvia Gunderman of 1st Bank Yuma, which holds both existing long-term notes payable making up the YCAA’s debt provided a letter from the bank offering to modify the interest rate structure on Note #1944. The offer included an immediate change in the terms from a variable rate of interest set at Prime plus 1%, currently 4.25% effective rate, to an identical rate (4.25%) that would be fixed for the next five years then be “re-set” every five years thereafter based on Prime plus 1% with a 4.25% floor until the balance is paid in full.
The committee carefully considered options available including whether or not to accept the modification of Note #1944 offered by 1st Bank Yuma, or to retire one or both existing notes payable using the elevated amount of cash on hand in the YCAA’s Capital Reserve bank account which earns minimal interest.
During the discussion, the Chief Financial Officer, Mr. Hinkle described how the YCAA’s entity was not intended to generate or hold excessive amounts of monetary assets beyond its operational necessity. Mr. Hinkle continued by pointing out provisions contained within the YCAA’s lease with Yuma County that describe how operational revenues are intended to meet its obligations with excess revenues becoming due to the County as an example.
Ms. Dhawan expressed her desire for the Committee to recommend to the Board of Directors that they authorize the retirement of Notes #1944 and hold off on any action regarding Note #1713 since it has a fixed rate of interest through July of 2025.
Mr. Gardner expressed his agreement with Ms. Dhawan, unless the YCAA’s excess Capital Reserves would be subject to remittance to the County. In such case, Mr. Gardner would recommend that the funds be utilized to retire both existing notes payable. The Airport Director Ms. Brown assured Mr. Gardner that remittance of Capital Reserves to the County is not an issue and explained how the terms are intended to simply direct budgeting to achieve a balance between revenues and expenses.
After further consideration, the remaining members of the Committee agreed with Ms. Dhawan and came to a consensus to recommend the YCAA Board of Directors consider paying off the entire balance due on Note #1944 in the estimated amount of $1,207,240. Due to the adopted budget, this will be completed through an “Off-Budget” expenditure of Capital Reserves.
2) Discussion and possible recommendation on the YCAA Yuma International Airport Master Plan.
Mr. Chris Hacker, of Mead & Hunt presented the proposed Airport Master Plan to the Committee for their consideration and evaluation. Mr. Hacker began by explaining how the Airport is required by the FAA to establish and maintain an Airport Master Plan (AMP) that carefully considers the inventory of infrastructures that exists at the airport, the nature of operational activity and the investments necessary to meet the projected activity over the next twenty years. He further explained how the project began in August of 2019 and has included the participation of the community, our aviation partners at MCAS, regulatory agencies such as the FAA and ADOT, as well as a variety of interested parties such as our tenants and customers.
During Mr. Hackers presentation, each element of the Airport Master Plan was described in some detail and included a robust discussion by those in attendance in all areas of the plan’s future development. After having communicated her agreement that the proposed Airport Master Plan be recommended to the YCAA Board of Directors for acceptance and adoption, Ms. Dhawan left the meeting at 12:22pm.
After a brief discussion that followed, it was the consensus of the Committee to recommend that the YCAA Board of Directors accept and adopt the proposed Airport Master Plan as presented.
CALL TO THE PUBLIC
There were no Public Comments.
There being no further business before the Committee the meeting adjourned at 12:24PM.
|// Approved //|
Treasurer Yuma County Airport Authority; Finance Committee Chairman
| |Other Board Minutes
|Tue Nov 14, 2023 -- November Board|
|Mon Oct 30, 2023 -- Strategic Planning Committee|
|Tue Oct 24, 2023 -- Executive Committee|
|Tue Oct 10, 2023 -- October Board|
|Mon Sep 18, 2023 -- Elections and Personnel Committee |
|Tue Sep 12, 2023 -- September Board|
|Mon Aug 28, 2023 -- Special Board|
|Thu Aug 17, 2023 -- Finance Committee|
|Tue Aug 8, 2023 -- August Board|
|Tue Aug 1, 2023 -- Elections and Personnel Committee |
|Tue Jun 13, 2023 -- June Board|
|Wed Jun 7, 2023 -- Strategic Planning Committee|
|Tue May 9, 2023 -- May Board|
|Fri May 5, 2023 -- Finance Committee|
|Tue Apr 11, 2023 -- April Board|
|Wed Apr 5, 2023 -- Strategic Planning Committee|
|Tue Mar 14, 2023 -- March Board|
|Tue Feb 14, 2023 -- February Board|
|Wed Feb 8, 2023 -- Finance Committee|
|Fri Jan 27, 2023 -- Finance Committee|
|Thu Jan 19, 2023 -- Strategic Planning Committee|
|Tue Jan 10, 2023 -- January Board|
|Tue Jan 10, 2023 -- Annual Board Meeting 2023|
|Tue Dec 13, 2022 -- December Board|
|Tue Dec 6, 2022 -- Finance Committee|
|Tue Nov 8, 2022 -- November Board|
|Tue Oct 11, 2022 -- October Board|
|Thu Sep 22, 2022 -- Elections and Personnel Committee|
|Tue Sep 13, 2022 -- September Board|
|Mon Aug 29, 2022 -- Finance Committee|