08/06/2024

Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Tuesday, August 06, 2024 at 10:00 AM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 10:00AM on August 6, 2024, 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 and YCAA Treasurer
    Dean Hager, 1st Vice President
    Russell Jones, 2nd Vice President (joined the meeting via Zoom and exited the meeting at 12:05PM)

    YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
    Albert Gardner, Director

    ALSO PRESENT WERE:
    Bill Craft, President (exited the meeting at 11:50AM)
    Gladys Brown, Airport Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Silvia Gunderman, 1st Bank Yuma

    CALL TO THE PUBLIC
    There were no Public Comments.

    REGULAR AGENDA
    1) Discussion and possible recommendation to update existing YCAA administrative policy contained in Resolution #01-02 dated January 8, 2002, in regard to signature authority.

    Ms. Brown, Airport Director, described the current administrative policy regarding financial signature authority that was established in YCAA Resolution #01-02 dated January 8, 2002. The purpose of this policy is to provide guidance in determining the importance and impact of individual financial transactions and provide necessary oversight measures as a matter of internal control which escalates based on the monetary value.

    Ms. Brown explained since the adoption of these policies over twenty-two years ago, the nature of financial transactions undertaken by the YCAA has changed dramatically as a result of an expanded level of operations and the effects of inflation. Mr. Hinkle, the Chief Financial Officer, described how the risk of having a single signatory initiate a financial transaction of $500 has significantly decreased in 2024 dollars as compared to 2002 dollars when YCAA’s overall budget has increased from $1.2 Million to almost $5 Million respectively.

    As a result of this situation, an ever-increasing number of transactions are being processed using more than a single signatory and having to summon a Board Member to authorize typical operational expenditures has become ever more common.

    The Committee did not believe updating existing policy to establish signatory authority being vested in the President, Secretary, Treasurer, Airport Director and Chief Financial Officer needed to be altered but considered the possibility of increasing the dollar values associated with authorizing financial transactions as follows:

    - Transactions of $1,000 or less require authorization of a single signatory.
    - Transactions over $1,000 require authorization by two signatories.
    - Transactions in excess of $100,000 require at least one signatory to be a Board Member.

    The Committee inquired as to whether the Airport Auditors shared management’s position on updating the authorization thresholds in which CFO Hinkle responded by confirming that the topic was discussed, and the Auditors did express the opinion that an increase was reasonable under the circumstances.

    The Committee came to a consensus to recommend the Board of Directors adopt a Resolution at the next regular meeting to update existing YCAA administrative policy related to the authorization of financial transactions accordingly.

    2) Discussion and overview of FY24 YTD Budget.

    Gladys Brown, Airport Director briefed the Board on the FY24 YTD Budget through June of 2024, pointing out areas of interest that were to be addressed in the upcoming Proposed FY25 Budget.

    3) Discussion and possible recommendation on the Proposed FY25 Budget for the Yuma County Airport Authority.

    The Airport Director, Ms. Brown, presented the Proposed FY25 Budget in detail. After discussing the expected revenues to be generated, including historical trends, the Airport Director described the expenditures necessary to ensure the safe and efficient operation of the airport as well as the improvement to the aging infrastructure. The highlights within the FY25 included but not limited to the removal of the federal DHS activity, expansion of the non-aeronautical revenue thru the YPG IGSA, the commitment to the YCAA work force, and the significant investment into the capital outlay and infrastructure.

    During the presentation, the Finance Committee requested additional line items be added to future monthly financial presentations such as the YPG IGSA related revenues to be shown separately for analytical purposes.

    After significant discussion, the Committee agreed unanimously to recommend the FY25 Proposed Budget be presented to the Board of Directors at the August 13, 2024, regular meeting for adoption.

    There was additional discussion and presentation by the Airport Director regarding consideration for “off-budget” consideration to assist with the necessary improvements for the airport. These off-budget projects were the replacement if the YCAA Airport wide telephone system which is no longer supported (over 15 years old), the replacement of a portion of the passenger terminal roofing system which has significant issues (over 24 years old), and the painting of the interior walls in the passenger terminal (last painted over 17 years ago). For these three projects it would be approximately $400,000. The impact to the capital reserves will result in the remaining available reserve to be $923,504 which does not take into account the Certificate of Deposit (CD) of $2M and the associated Line of Credit (LOC) to support YPG projects (backed by the CD) of $1.5M.

    It was restated by Ms. Brown for the Finance Committee to consider the $400,000 cost of these improvements be authorized through an “Off-Budget” authorization intended to recognize that Capital Reserves would fund the projects outside of FY25 Operational Revenues.

    4) Presentation and update regarding current construction projects, associated contracts, grant status, general aviation, marketing efforts, terminal improvements, aviation conferences, meetings, and items of interest with the city and county or other federal or state agencies. This will include, but is not limited to, additional information, FAA and ADOT grant updates, an overview of projects underway, airport operations, Rolle Airfield, airline recruitment and retention efforts, general aviation, future events, and other Airport business.

    Ms. Brown’s discussion consisted of additional insight regarding the YPG IGSA projects to include that no new personnel will be incorporated for FY25 consideration due to the limited revenue, items of interest regarding capital outlay projects projected.

    5) Discussion and/or consideration regarding the performance evaluation of the Airport Director, and related personnel matters under the provision of A.R.S. § 38-431.03(A)(1).

    The Committee shared that they understood the Airport Director met with the Elections and Personnel Committee and no further discussion was necessary. The Committee did not go into executive session.

    CALL TO THE PUBLIC
    There were no Public Comments.

    ADJOURNMENT
    There being no further business before the Committee the meeting adjourned at 12:13PM.




    // Approved //
    Stanley Gourley
    Treasurer, Yuma County Airport Authority; Finance Committee Chairman
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