AGM Answers

My previous post addressed some questions to the Peace River Ski Club at their annual general meeting (AGM).  Thank you to Sean Banks, ski club president, for answering each of them to the best of his abilities.

I was not at the AGM, but Kate Bigelow, general manager for the ski club, stopped by the next day to drop off the agenda and information package.  From it and reports from friends who attended, I was able to get answers to all of my questions.

For the benefit of all those interested, I will post those questions and answers here.  I will leave interpretation and commentary to readers.

1.  When will charges for generator rental, generator fuel, and electricity be repaid to the Town?

At this time, as the operations and maintenance agreement with the town is still pending, so are details of repayment.

2.  Was much the same as question #1.

3.  a. What were the revenue and expenses for past years?  How does this year compare?

Between year ending 2006 and year ending 2013 (not including 2012 as hill was closed due to lack of snow) revenue ranged from $223058 in ’11 to $389552 in ’08.  This year was roughly middle of the pack of those seven years.

Expenses ranged from $198986 in ’10 to $415677 in ’09.  This year was the 3rd highest of the seven excluding ’12.

b.  Did the offloading of chairlift construction costs and other expenses/assets to the town improve the income statement?

This is very hard to assess.  The only way to measure this would be looking at surplus or deficit but even this is tenuous.  Reduction in liabilities is important as well, particularly long term debt which carries servicing costs over time.

The surplus/deficit only started being recorded in ’08.  It ranges from a deficit of $165089 in ’09 to a surplus of $115910 in ’10.  This year the club basically broke even as the total deficit was only $465.  Debt is discussed below.

4.  How much debt does the ski club currently carry?

Total liabilities currently sit at just under $95 000.  About $73000 is an operating loan.  This is a significant decrease from 2011, when total liabilities sat at $296327,   $230889.81 of which was owed to the Town of Peace River.  It is my understanding from the transfer agreement between the ski club and the Town that along with assets the Town also took on some liabilities.  It appears this is one of them as it is not listed this year.  Please correct me if I’m wrong.

5.  What were the visitor numbers for last season?  How do they compare to previous seasons?  What methodology is used to calculate the numbers?

a.  16134 visits; a FAR cry from 40000, but an improvement on previous years

b.  Average of 9749 for the preceding 5 operational years; highest prior to this year was 12911 in ’08.

c.  Calculated based on uses of the lifts.  Estimated that each visitor uses a lift 4 times.  So total lift uses are divided by 4 to arrive at visitor figures.

There you have it.

Make of it what you will.

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One Response to AGM Answers

  1. Pingback: Building the Case | Peace River Votes 2013

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