Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Wednesday, November 03, 2021 at 12:00 PM

Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 12:00PM on November 3, 2021 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Eric Saltzer, Chairman.

Eric Saltzer, Chairman & YCAA Treasurer
Dean Hager, 1st Vice President
Albert Gardner, Director
Reetika Dhawan, Director (exited the meeting at 12:47PM)


Gladys Brown, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Gabriela Reyes, Finance and HR Manager
Sandra Mendivil, Finance and HR Specialist
Silvia Gunderman, 1st Bank Yuma
Ken Scott, ASN Volunteer


1) Discussion and overview of FY22 Budget

Ms. Brown, Airport Director, described the in-depth analysis of the FY22 YCAA Annual Budget provided to Committee Members along with the meeting Executive Summary. The FY22 Annual Budget was adopted by the Board of Directors at its July 13, 2022 regular meeting. After learning that there were not questions about the analysis, she described her intent to reconvene the Finance Committee later in the year for a detailed update on financial status.

2) 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 infrastructure 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 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 capital reserves.

After the presentation was concluded, Silvia Gunderman of 1st Bank Yuma, which holds all three 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 #2004. The offer included an immediate reduction of the effective annual interest rate to 4.25% from its current rate of 5.75%, which would be followed by a modification in July of 2024 to a variable rate of Prime Rate Plus 1% with a 4.25% floor. This rate adjustment would then be “re-set” every five years at Prime Rate Plus 1% with a 4.25% floor until the note is paid in full. The existing terms include a similar rate calculation on the same schedule but with a 5% floor.

The committee carefully considered a range of options intended to improve the finances of the YCAA including whether or not to accept the modification of Note #2004 offered by 1st Bank Yuma, or to retire one or more of the existing notes, in full, using the elevated amount of cash on hand in the YCAA’s Capital Reserve bank account which earns minimal interest.

Ms. Dahwan, expressed her desire to recommend that the Committee recommend to the Board of Directors that they authorize the retirement of both Notes #1944 and #2004, just before her leaving the meeting at 12:47pm.

After further consideration, the remaining members of the Committee came to a consensus to recommend the YCAA Board of Directors consider paying off the entire balance due on Note #2004 in the estimated amount of $1,692,188. Due to the adopted budget, this will be completed through an “Off-Budget” expenditure of Capital Reserves. The Committee asked staff to ensure the possibility of retiring both Notes #1944 and #2004 was presented to the Board of Directors at the November regular meeting if they so chose. The Committee Chairman also encouraged the Committee to revisit the issue of paying off Note #1944 at the end of the calendar year of 2022 based on the feedback from all present finance committee members if the Board only chose to retire Note #2004.

There being no further business before the Board the meeting adjourned at 1:03PM.

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

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