| |  |
Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Wednesday, February 08, 2023 at 01:00 PM
Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 1:00PM on February 8, 2023, 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
Dean Hager, 1st Vice President
Russell Jones, 2nd Vice President
Albert Gardner, Director
YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
None
ALSO PRESENT WERE:
Bill Craft, President
Gladys Brown, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Silvia Gunderman, 1st Bank Yuma
REGULAR AGENDA
1) Finance Committee discussion and possible recommendation on the investment of Capital Reserves into a Certificate of Deposit.
Ms. Brown, the Airport Director explained to the Committee that the YCAA has all its deposits held by 1st Bank Yuma. These deposits are held in a number of accounts, each established to serve a particular purpose. These accounts include a checking account, a money market account which is used to hold Passenger Facility Charge (PFC) revenues and a “savings account” commonly referred to as the YCAA’s Capital Reserves. All of the funds in each of these accounts can be withdrawn on demand at any time without restriction or penalty.
Ms. Brown, described that the checking account does not earn interest due to Federal Regulations that prohibit the earning of interest on amounts remitted to the YCAA in the form of Grant Reimbursements. Both the PFC and the Capital Reserve accounts earn minimal interest which currently totals less than one-half of one percent annually. All of the YCAA’s accounts are required to be “collateralized” in accordance with Arizona State Statutes which ensure that public funds are not lost in the case of a financial institution failure to continue as a going concern. The requirement of our deposits to be entirely collateralized in the form of investments held in the name of both the bank and the YCAA which makes holding our deposits much less attractive to a bank.
Ms. Brown, described 1st Bank Yuma’s recent offer to allow an investment in a Certificate of Deposit (CD) that if held to maturity would earn interest at a rate of 4%. 1st Bank Yuma is offering the CD in any amount of at least $1 Million but no more than $2 Million with a term of either 12 or 24 months. Ms. Brown informed the Committee that the The CD’s being offered earn different rates of interest, 3.93% on the 12 month CD and 3.44% for the 24 month CD. Due to the compounding of interest earned, either CD would result in a 4% rate overall if held to term. Ms. Brown also described the penalty for early withdrawal which is calculated at 3 months of interest.
The Committee discussed a number of options available and ultimately came to a consensus to recommend that the Board of Directors authorize a the investment of $1.5 Million into a 12 month CD, as offered using funds currently in the YCAA’s Capital Reserves.
2) Finance Committee discussion and possible recommendation on general matters related to the operational finances of the YCAA.
Ms. Brown, the Airport Director described the nature of the YCAA’s existing $1.5 Million Line of Credit which was established a solution for the Arizona Department of Transportation – Aeronautics Division’s inability to meet it’s grant reimbursement obligations several years ago. The Committee had a brief discussion regarding the possibility of establishing a line of credit for operational purposes but ultimately agreed that action was not necessary due to excessive capital available currently as well as the ability for 1st Bank Yuma to act on a request in a very timely manner.
Ms. Brown then described 2013 Expression of Interest to lend provided by 1st Bank Yuma in an amount of up to $35 Million. After a brief discussion on the value of the YCAA’s relationship with 1st Bank Yuma, Silvia Gunderman provided an updated version which expressed the banks desire to participate in future lending.
ADJOURNMENT
There being no further business before the Committee the meeting adjourned at 1:49PM.
// Approved //
Stanley Gourley
Treasurer, Yuma County Airport Authority; Finance Committee Chairman | |
| | Other Board Minutes
 | 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 |
| Tue Aug 9, 2022 -- August Board Meeting Minutes |
| Wed Aug 3, 2022 -- Elections and Personnel Committee |
| Tue Jun 14, 2022 -- June Board |
| Fri Jun 3, 2022 -- Finance Committee |
| |