Insurance, healthcare approved at December MVF Board meeting

At the final meeting for 2022, the Montgomery Village Foundation (MVF) Board of Directors approved insurance and employee healthcare items for 2023....

At the final meeting for 2022, the Montgomery Village Foundation (MVF) Board of Directors approved insurance and employee healthcare items for 2023. MVF Senior Accountant Mirna Rivas noted that Philadelphia Insurance has seen an increase in premiums, and MVF is no exception. Overall, an approximate 10% increase in rates is expected for Workers Compensation, Accident Camp, Umbrella, E&), Crime, D&O and Premium Package coverages. The Board authorized Executive Vice President (EVP) Dave Humpton to sign the 2023 insurance contracts, not to exceed an estimated total of $229, 062.

In the same manner, an average 12% increase in MVF employee healthcare premiums was noted by Corporate Synergies, MVF’s benefits broker. The Personnel Committee reviewed plans offered by healthcare carriers and honored staff recommendation to remain with CareFirst BlueCross BlueShield (BCBS). The EVP was authorized to negotiate and execute a contract with CareFirst BCBS for 2023 benefits.

Following a reception to honor Montgomery Village volunteers, Tim Goodfellow of Transit Alternatives for Midcounty Highway Extended (TAME) gave a presentation about the long-proposed roadway that would run directly through the community.

Goodfellow noted the environmental and residential impacts M-83 would have on Montgomery Village if ever built. He said M-83 would be a 5-mile, 4 to 6 lane highway from Clarksburg to Montgomery Village, totaling $1 billion, and would abut over 500 residences, disrupting the environment and quality of life for Village residents. Goodfellow said reasonable alternatives to the project exist.

He also noted that many studies and reports regarding the adverse effects of the project can be found online at www.tamecoalition.org, and that over the years, many articles have been published in the Village News in opposition of M-83. He said that many area leaders—including state and county elected officials—are also opposed to the roadway, and it has been removed from the National Capital Region Transportation Planning Board’s Visualize 2045 Plan. Goodfellow asked that the MVF Board reaffirm its opposition to building M-83.

Other Agenda Items
Regarding financial items, the Board accepted the 2021 401(k) Agreed Upon Procedure Report, which was established in place of the 401(k) audit each year. MVF auditors tested several factors of the 401(k) process and found no exceptions for the tests. Upon recommendation from the Audit Committee, the Board also reviewed and reaffirmed MVF’s financial policies, something the have not formally done since 2019. Neither the Audit Committee nor the Board found any necessary updates to the policies.

The service warranty provided by the installer for the new elevator at North Creek Community Center expired in early November, and the Board had previously held an e-mail vote for a new service contract, per local and state regulations. At the meeting, the Board reaffirmed the e-mail vote authorizing the EVP to execute a 5-year agreement with Elevator Service Control to maintain the elevator at a cost of $3,180 per year.

Finally, the purchase of a new copier and service contract for the MVF Office was approved from Advance Business Solutions in the amount of $14,958.65 from Reserves.

President’s Remarks
Board President Scott Dyer thanked the MVF staff, committee and board volunteers and elected officials for working hard to keep Montgomery Village a great community, noting it was important to get together in person, and was thankful that was able to happen.

Dyer also recognized the recent passing of East Village resident and former EVHC board member Terry O’Grady. He said it was an honor to work with her, and her efforts made a difference in East Village and the greater Village community.

EVP Report
EVP Humpton thanked staff and volunteers for their work all year on behalf of the community. He said MVF will be receiving the deed for Central Park in the near future, however, MVF has requested the county install a guardrail along Montgomery Village Avenue at the top of the hill near the park, among other punch list items from the contractor. Humpton said the replacement process would require a 60-day review, and if warranted, the county would install the guardrail.

He also alerted the Board to upcoming meetings regarding the Lakeforest Mall development:

• 1 p.m. on Wednesday, Jan. 4, 2023 at Asbury United Methodist Village, 201 Russell Avenue, Gaithersburg, with a presentation by the developer; and
• City of Gaithersburg Joint Planning Commission/ Mayor and City Council Hearing scheduled for 7:30 p.m. on Tuesday, Jan. 17, 2023, Gaithersburg City Hall, 31 Summit Avenue, Gaithersburg

Humpton said the path was recently installed at the Watkins Mill Fitness Park, and additional progress continues to be made on the project.

Treasurer’s Report
MVF Senior Account Mirna Rivas presented the Treasurer’s Report for the year-to-date (YTD) and the month ending October 30, 2022, reporting that overall, all MVF funds were behind budget projections, predominantly from Investment Income (-$1.4 million). This is offset by Capital Contribution Fees (CCF) which are favorable to the budget by $174,000, Pool Membership and Fees (up $72,000) and Camps/Classes (up $40,000). Additionally, Ms. Rivas said Personnel and Operating costs were lower than expected by $106,000 and $162,000, respectively.

Total Revenue through September was reported at $6.9 million, which is 8.9% lower than the budget. Operating Expenses were reported at $6.9 million, which is favorable to the budget by 4.8%. CCF was reported at $315,000 versus the $141,000 assumed in the budget; she noted that as of October 31, 145 new units had been sold in Bloom Village.

Ms. Rivas said that although Investment Income returned a loss, if this Reserve Fund detail is removed from the picture, the rest of the Operating Fund is highly favorable to the budget.

She said the Balance Sheet continues to reflect MVF’s strong financial position with over $10.3 million of its assets held in Cash and Investments. MVF continues to hold $2.9 million in Undesignated Reserves. Accounts Receivables reported an overall decrease from last year of $78,000, which shows that the collection process is working and payments are being made on time.

The Delinquency Rate for October was reported at 17.9% (1,515 units), which is lower than both the 5-year average and last year at this time.

Next Meeting
The next MVF Board of Directors meeting is scheduled for 7:30 p.m. on Thursday, Jan. 26, 2023, as a conference call/Zoom meeting. Residents are invited to join the call; full meeting details, the meeting packet and/or participation instructions will be posted online at www.montgomeryvillage.com the week before the meeting.