Finance Committee meeting minutes

Finance Committee meeting minutes

Options for dealing with the severe cash flow problem included large contributions from board members, a budget cut, dissolving the Nutcracker Escrow Fund, and identifying a new artistic director.

Minnesota Dance Theatre Records
Performing Arts Archives

26-Jan-87

FINANCE COMMITTEE MEETING MINUTES
January 26, 1987

Present: John Coughlin, George Holthus, Bill Parker, Paul Quast, Pam Wieder, Chair

The Finance Committee reviewed the attached financial statements for December, 1986. The Finance Committee's main topic was the projected $150,000.00 deficit for the fiscal year 1986-87 and the cash flow problems during the next two quarters. The cash flow problem is severe because Norwest Bank only approved a $50,000.00 increase to the line of credit. The following options for dealing with the problem were discussed:

Ask each Board Member to generated [sic] $7,500.00 in new contributions to MDT by June 30.

Cut $150,000.00 from the budget by canceling the Company's spring season and laying off personnel.

Dissolve the NUTCRACKER Escrow Fund ($65,000) and recognize the money as income during this fiscal year for use in current operations.

Identify the new Artistic Director within the next 45 days. Kick-off a special fundraising campaign during a reception welcoming the new director at the Governor's mansion. Two "society" co-chairs would be asked to head a drive targeted to raise $300,000.00 in new support for MDT. $85,000.00 would be needed this year; $115,000.00 for next years operations; and $100,000.00 for debt retirement. The drive would begin at the reception and run through June 30, 1988 and is projected to involve a matching grant program.

RESOLVED: The General Manager is empowered to request dissolution of the NUTCRACKER ESCROW FUND and to use the money for current operations.

The committee also suggests that option #4 be pursued vigorously. Otherwise, $85,000.00 must be cut for the budget to end the year in the black. The committee reiterated its commitment to the policy of no increases to any expense account and suggests that all departments make whatever budget cuts possible without cancelling programs and work to increase revenues.