Approved Conner:  Pearsall: Brewer: Ke Mooney: LMA  MINUTES BREVARD ABC BOARD June 27, 2024  The Brevard ABC Board met in regular session on Thursday, June 27, 2024 at 8:30 a.m. in the  Council Chambers at City Hall. Members Present:  Kevin Jones, Chair Frank Pearsall Ron Brewer Carl Mooney Lisa Conner  Members Absent: Staff Present:  Jackie Jarvis, Interim General Manager Paxton McAbee, ABC Staff  A. Welcome & Call to Order  B. Quorum  Board Chair Kevin. Jones called the meeting to order at 8:31 a.m. and a quorum was noted.  . Approval of Agenda  Motion by Mr. Pearsall, seconded by Mr. Mooney to approve the agenda as presented.  The motion carried unanimously. D. Approval of Minutes  1. Minutes from Regular Session - June 6, 2024  Motion by Mr. Pearsall, seconded by Mr. Mooney to approve the minutes of the Regular Session meeting on. June 6, 2024, as presented. The motion carried unanimously.  E.P Public Hearing  1. ABCFY2024/2025 Proposed Budget  At 8:33 a.m. Mr. Mooney moved, seconded by Mr. Pearsall, to open the public hearing for the proposed FY 2024/2025 ABC Board Budget. The motion carried unanimously. No members oft the public were present. Mr. Mooney then moved, seconded byl Mr. Pearsall  to close the public hearing.    F. New Business  1. Manager's Report/Sales Update  Ms. Jarvis reported that sales were up $12,757 over last year.  Ms. Jarvis informed the Board that Brevard College has requested $3,500 for their alcohol education program. They have sent a proposal for the Board'sconsideration. Ms. Jarvis noted that the budget includes 5% for educational purposes. She has not yet received a request from CARE Coalition, but they hope to meet with the Board in the next month or sO to make their annual request. She noted that the Board gave Rise and Shine $2500. Following review and discussion of the proposal, Mr. Pearsall moved, seconded by Mr. Brewer to table the Brevard College request until we have afforded the opportunity to other organizations. During discussion, there was consensus that the Board would like more details on how the money would be used for alcohol education. Vote on the motion was 4-0; the motion carried. The Board directed the General Manager to ask for requests from other area non-profits. Mr. Mooney had a question about the reconciliation and noted that the date on the bank statement seems to be from 2023. Ms. Jarvis will contact the accountant for a corrected reconciliation and bringi it back to the next meeting for Board approval. Mr. Jones asked Ms. Jarvis to remind the accountant of his inquiry about the difference between howi they do accounting for state taxes and how oura auditor does. Mr. Mooney noted that on Page 15 of the FY 2023 audit we had a non-compliance with the North Carolina General Statutes and asked if that is something we need to correct. Mr. Jones noted that the correction is indicated in the audit and he recalled that we had done a revised budget, but he was unsure whetherit was filed or not. He pointed out that most of the variance was the profit distributions paid to the city and county. He explained that if we spend something that we haven't budgeted for, we are supposed to do a budget amendment. He said that he did not do a budget amendment for. June because he is awaiting an answer on the variance in the state tax issue. We need an answer to that and we need to figure out how to be more careful about revising the budget. He said we need to talk with the accountant to get an understanding of where shei is filing this stuff so we can follow it. 2. Review, Approve and Adopt Proposed FY 2024/2025 Budget  Mr.. Jones reviewed the proposed budget and noted this was the budget reviewed by the Board at the last meeting. The budget includes a 5% increase in sales and after expenses and distributions, the estimated undistributed balance is $62,300. He said we do successflyincrease our sales as projected, that would mean that the amount of money we can hold without forced distributions to the city and county would be $75,000, so we might have the option of keeping the undistributed money.  Minutes - BrevardA ABC Board- - June 27,2024  Page2of4    Mr. Mooney mentioned that he was blown away by the $128,000 rent per year for the two stores. Ms. Jarvis explained that the rent for the Downtown store is $3800 and the rent for the Pisgah Forest store is almost $6,000 per month. Mr. Jones said there are about 5 years left on the lease for the Downtown store and asked Ms. Jarvis how much time is left on the Pisgah Forest store. Ms. Jarvis said she believes there Mr. Jones asked how can we prepare for 5 years from now when our leases run out? He mentioned that he and the former General Manager had some conversation with Perry, the Downtown store's property owner about the need for more storage room, and Perry offered to builda a warehouse right behind the store. His comment then was would need to raise your rent and we would need to go farther out with the lease. Mr. Jones noted that in this budget we are only making $70,000 and we need more time to accumulate money to put a down payment on a building. The question is should we encourage our landlord to solve our storage problems and to lengthen our lease so that we don'thave to worry about being homeless in 5 years. Mr. Pearsall suggested it would be worth talking to Perry to see if he would be willing tos sell the building to us and what his price would be. Ifhe gives us a good price, then we buy that building. Mr. McAbee wondered if we had that whole building, could we close the Pisgah Forest store and have a larger downtown store? Mr.. Jones said we have never done an analysis as to how much each store makes. Maybe we need to doananalysisast tov whethert the Pisgah Forest store makes money. Mr. Mooney asked ifitr makes enough to cover the rent. He suggested that we take a look at the lease agreement to see what the term is and include that in the analysis of the cost. There was consensus that Ms. Jarvis will talk to Perry to inquire if he would consider selling Mr. Pearsall moved, seconded by Mr. Mooney to approve the FY 2024/2025 Budget as presented. The motion carried unanimously. A copy of the adopted budget and  are 5 or 6 years left.  us our building and the parking lot in front ofi it.  notes is attached as Exhibit A.  G. Unfinished Business  1. Review and Approve Accountant's Reports from April 2024 financial report more understandable and easier to read.  Mr. Jones said he will write a letter to the accountant to request she make the 2. Review and Approve Reconciliations and Bank Statements from April 2024 The Board will sign the April reconciliation and bank statements at the next meeting.  Minutes-B Brevard ABCI Board-June: 27, 2024  Page3of4    H. Next Meeting  The Board set the next regular meeting for Thursday, July 25, 2024 at 8:30a.m. Ms.Jarvis informed the Board thati in September she willl be gone for about 21 % weeks sO she would like to not meet that month. Mr. Jones asked her to bring an amended 2024/2025  meeting schedule to the next meeting.  - Adjourn  There being no further business the meeting adjourned at 9:40 AM.  larvi/interipSenera) Manager  Ahh  E  Minutes Approved: Jly35  2024  Duidlisim Denise Hodsdor, City Clerk  Minutes - Brevard ABCI Board- - June 27, 2024  Page 4of4    BREVARD. ABC PROPOSED BUDGET FOR FISCALYEAR 2024-2025  Credit $7,000,000.00  Expense $1,680,000.00 $3,710,000.00 $98,000.00 $5,488,000.00  Sales State Taxes Cost of Sales Credit Card and Bank fees Total Tax and COGS GROSS PROFIT EMPLOYEE EXPENSE Wage and Salary Expense Payroll taxes Pension Funding Total Employee Expense  $1,512,000.00  $620,000.00 $58,900.00 $40,000.00 $718,900.00  GROSS PROFIT AFTER EMPLOYEE EXPENSE BUILDINGS. ANDI EQUIPMENT Rent Utilities Maintenace Agreements Repairs Capital outlay Truck Expense Alli insurance  $793,100.00  $128,000.00 $38,300.00 $24,500.00 $12,000.00 $5,000.00 $18,000.00 $72,000.00 $297,800.00  TOTAL BUILDING AND EQUIPMENT GROSS PROFIT AFTER BUILDING EXPENSES  $495,300.00  INTERIOR EXPENSE Office Supplies Profesional Services Travel and Employee training Dues and Subscriptions CONTINGENCY TOTAL INTERIOR EXPENSE GROSS PROFIT AFTER ALLI EXPENSES  $27,000.00 $32,000.00 $6,000.00 $5,000.00 $5,000.00 $75,000.00  $420,300.00  DISTRIBUTIONS CITY COUNTY POLICE EDUCATION TOTAL DISTRIBUTIONS UNDISTRIBUTED  240,000.00 80,000.00 26,000.00 12,000.00 358,000.00  $62,300.00    Notes to Proposed Budget 2024-2025  Sales: A five percent increase from this years budgeted number (6.6MM) would Cost of Sales and Taxes CC fees: These are estimated at 53%, 24% and 1.4% Employee wages of $620.000 represents an increase in hourly wages and an assumption of increased hours. Last year we budgeted $580,000 Pension expense increases due to additional employees be covered  be 6.93MM is rounded upt to 7 Million  Rent and utilities up slightly shelving for additional storage.  Repairs and Capital outlay anticipated lower- Capital outlay would be mostly new Truck expense: While running currently with no immediate problems, we can easily spend 18,000 in one or two repairs. IN the future a replacement should be  considered.  Insurance cost is going up- thus the budget increase to $72,000  Office supplies in line with previous year  Professional Service up slightly due to increase in monthly accounting Contingency reduced form 15K1 to 5K to be more in line with State budget  expectations.  Employee training and travel raised to anticipate more of both  Submitted by KevinJones 6-25-24