Illinois Valley Beacon
November 2014
Note: this is a transcribed version of the original found on the old chapter web site.
October 9th, 2014 Chapter Meeting
Meeting called to order at 7:01 by Chapter Secretary Donald Wolcott
Secretary Report: Minutes from September Board meeting were read by Don Wolcott
Treasurers Report: Jerry Pilon Stated the income from membership dues were at an all time high. The scholarship fund currently has $1,100 in it. Jerry had looked into replacing our current CD at CEFCU with a new one they are offering 4.5 years for 2.45%. Discussion centered around breaking up the current CD into smaller pieces in case we should need some of this money for a capital expenditure in the near future. Jerry will find out how small can the CD be and still get the 2.45% rate.
Committee Reports:
Youth Outreach:
Donations: Ron Wright stated that the ultralight that we were going to donate to Lincoln Land College has instead been sold for $500 to a person from Sioux Falls South Dakota. This person will be coming soon to pick it up.
Nominating Committee: There is still not a completed slate of Officers and Directors to be presented at this meeting as required by the Chapter Bylaws. This will continued to be worked on and presented for voting at the November Chapter meeting.
A letter had been sent out to Mt Hawley hanger tenants that there was no new news about a contract with anyone to run the FBO yet.
Meeting Adjourned at 7:35
Jeff provided a video created by EAA for chapter use that was very interesting.
Respectfully Submitted:
Your Secretary Donald T. Wolcott
There was no Directors Meeting held in October due to lack of a quorum.
CHAPTER 563 FINANCIALS
FISCAL YEAR 2013
The majority of the Chapter members do not attend monthly meetings. In 2013 we had approximately sixty members and, on the average, twenty or twenty five attend meetings regularly. A treasurers report is given at every membership meeting, complete with the numbers. I won't use dollar amounts here because this is a public newsletter.
Financially the Chapter is in good shape and well managed. As you read in the last newsletter we just recently invested $6000 in a mutual fund to increase it's earning over a savings account or money market account at a local savings and loan. The fund is liquid and reasonably low risk. The results of 2014 are significantly different and will be reported at year end.
The chart to the left lists the sources of the Chapter Income. Rent from the tenants and Donations were the biggest in 2013. Rent goes totally to pay the hangar rent so that leaves Dues, Breakfast, and Donations the prime source of income.
Donations in 2013 were extraordinarily large and cannot be depended on to remain. An increase in membership and other sources of income must be considered if we are to continue to grow.
As you can see in the chart to the right, Hangar Rent and Utilities are the big spenders. The value of the hangar as a home, meeting place, and workshop for the Chapter has justified being there since it was built in 1998. Before that the Chapter was struggling to stay alive. We have managed to fund our Explorer Scout group and make donations to the A&P school in Springfield. Come to the meetings to hear the numbers. Become an officer or serve on a committee to help manage our growing Chapter.
Update From Our Investment Committee
As you have learned in previous newsletters, we haveformed an investment committee to invest some of our savings to get a better return than our savings or CD accounts are currently doing.
Our mutual fund investment was made July 14 in the Vanguard Equity Income fund. The stock market symbol is VEIPX.
Vanguard is a company the manages and sells mutual funds but it also has an in-house brokerage house so you can also buy and sell stock, bonds, and options. So the term Vanguard covers a wide range. Their website is Vanguard.com.
Morningstar.com is a great place to look up financial information. Type in the symbol VEIPX and Morningstar will give you quality information on our mutual fund. On July 14 when we bought it a share was selling for $31.70. We invested $6,000 worth so we received 189.27 shares. Today it is selling for $31.84 so we're ahead $26.50 in terms of the net asset value.
Over the past 12 months the fund paid out $1.594 per share in dividends and capital gains and the net asset value went from $28.55 to today's $31.84. If we had owned it for the past 12 months that's what we would have received: $1.594 times 189.27 or $301.70. That's about 5% on $6,000 plus the undistributed capital gain of ($31.84-28.550 or $3.29 times 189.27 or $622.70) In terms of yield alone, Morningstar says it yields 2.53%, much better than the 0.25% we can get at CEFCU.
A member is suggesting that we now buy some of the Dodge and Cox Balanced fund. The symbol is DODBX. This fund maintains about 66% of its funds in stocks and 33% in bonds. It is similar to the Vanguard Wellington fund which has a similar distribution. This will be discussed by the Investment Committee to insure that it follows the guide lines inthe Investment Standing Rule listed in the Chapter By laws.
The Chapter Treasurer, manages the account, buying or selling as directed by the Board of Directors, and moving money to and from our bank account and Vanguard. Everyone in the club can follow the investment by logging on to Vanguard or Morningstar or other databases.
The chart to the left lists the sources of the Chapter Income. Rent from the tenants and Donations were the biggest in 2013. Rent goes totally to pay the hangar rent so that leaves Dues, Breakfast, and Donations the prime source of income.
Donations in 2013 were extraordinarily large and cannot be depended on to remain. An increase in membership and other sources of income must be considered if we are to continue to grow.
As you can see in the chart to the right, Hangar Rent and Utilities are the big spenders. The value of the hangar as a home, meeting place, and workshop for the Chapter has justified being there since it was built in 1998. Before that the Chapter was struggling to stay alive. We have managed to fund our Explorer Scout group and make donations to the A&P school in Springfield. Come to the meetings to hear the numbers. Become an officer or serve on a committee to help manage our growing Chapter.
Update From Our Investment Committee
As you have learned in previous newsletters, we haveformed an investment committee to invest some of our savings to get a better return than our savings or CD accounts are currently doing.
Our mutual fund investment was made July 14 in the Vanguard Equity Income fund. The stock market symbol is VEIPX.
Vanguard is a company the manages and sells mutual funds but it also has an in-house brokerage house so you can also buy and sell stock, bonds, and options. So the term Vanguard covers a wide range. Their website is Vanguard.com.
Morningstar.com is a great place to look up financial information. Type in the symbol VEIPX and Morningstar will give you quality information on our mutual fund. On July 14 when we bought it a share was selling for $31.70. We invested $6,000 worth so we received 189.27 shares. Today it is selling for $31.84 so we're ahead $26.50 in terms of the net asset value.
Over the past 12 months the fund paid out $1.594 per share in dividends and capital gains and the net asset value went from $28.55 to today's $31.84. If we had owned it for the past 12 months that's what we would have received: $1.594 times 189.27 or $301.70. That's about 5% on $6,000 plus the undistributed capital gain of ($31.84-28.550 or $3.29 times 189.27 or $622.70) In terms of yield alone, Morningstar says it yields 2.53%, much better than the 0.25% we can get at CEFCU.
A member is suggesting that we now buy some of the Dodge and Cox Balanced fund. The symbol is DODBX. This fund maintains about 66% of its funds in stocks and 33% in bonds. It is similar to the Vanguard Wellington fund which has a similar distribution. This will be discussed by the Investment Committee to insure that it follows the guide lines inthe Investment Standing Rule listed in the Chapter By laws.
The Chapter Treasurer, manages the account, buying or selling as directed by the Board of Directors, and moving money to and from our bank account and Vanguard. Everyone in the club can follow the investment by logging on to Vanguard or Morningstar or other databases.