POENB Minutes Thursday, November 7, 2024
The meeting was held in person at the Eaton’s Neck Firehouse from 7:00 pm to 8:00 pm. The Pledge of Allegiance was recited followed by a roll call of officers.
Officer Roll Call
Tom Kehoe – President
Ryan Schaefer-Walker – Vice President and Treasurer – Absent
Yvonne Lambertson – Assistant Vice President (Technology, Web & Communications) – Absent
Steve Neuf – Assistant Vice President (Engineering and Special Projects) – Absent
Sally Neal – Recording Secretary
Nancy Regan – Corresponding Secretary
Anthony Fusaro – Assistant Vice President – Absent
Attendance
There were seven members physically in attendance, not including three officers.
Tom Kehoe’s motion to accept last month’s minutes as published on the POENB Website was seconded.
Correspondence – Nancy Regan
1. Request to hunt on the Eaton’s Neck LLC Property POENB received an email from a person from Locust Valley asking for permission to hunt on the Eaton’s Neck LLC property. The Board responded by saying that POENB has no affiliation with Eaton’s Neck LLC.
2. Bevin Seawall
NYS Senator Mario Mattera recently contacted John Ballow, POENB’s designated representative at the Eaton’s Neck Community Working Group (ENCWG). Senator Mattera asked POENB and the ENCWG to write a letter supporting VOA Mayor Leticia’s letter to the NY Division of Homeland Security and Emergency Services regarding the Asharoken Seawall (Project 4480-0032 Sea Wall Shoreline / Rehabilitation).
Specifically, Mayor Leticia asked the NYS Division of Homeland Security to expand the scope of their existing “Hazard Mitigation Subgrant” proposal to include a feasibility study and full engineering/ permitting to relocate and elevate a 900-foot section of Asharoken Avenue.
Previously, the NYS DHS had stated that it would be “difficult to raise and reroute” Asharoken Avenue near the Seawall given the Duck Island wetlands and other considerations and suggested a “partial project” (e.g., a study that would focus only on the Seawall and
This month’s cover photo, “Price’s Bend Foliage” is by Kelly Gifford
involve a series of beach groins and sand to forestall wall decomposition and prevent a public safety catastrophe).
The VOA Mayor (and the ENCWG) want the study’s scope to include a “full project” which would examine and incorporate changes from the PSE&G’s Power Plant to the Seawall (including the rerouting and elevation of Asharoken Avenue).
Treasurer’s Report – Sally Neal for Ryan Schaefer-Walker
The Treasurer’s Report (see details on page 2) includes the Income Statement for the period January 1, 2024 to November 7, 2024 and a partial Balance Sheet as of November 7, 2024.
Revenues for the approximate 10-month period were roughly $73.5K of which $56K was received from membership dues. The remaining revenue was attributed to watercraft fees, Changing Tides ads, social fees, and beach rentals. Expenses were approximately $76.9K. The majority of these expenses were spent to clean and maintain the beaches. Net income for the period was approximately a NEGATIVE $3.3K.
POENB tries to “break-even” every year (e.g., revenues equal expenses). By the end of the year, the Board expects that POENB’s revenues will approximately equal its expenses. However, there could be a small loss of $1K or less for the year ended December 31, 2024. This small loss is not problematic since over its history, POENB has generated both a small profit and a small loss. POENB, as a non-profit (501(c)(4) per the Internal Revenue Code, is NOT prohibited from generating net income in a given year nor is POENB prohibited from holding a large capital reserve fund. Restrictions focus on how the funds are spent (in accordance with POENB’s stated three-fold mission) vs how much income is earned or the size of the reserve.
Total expenses for the 10 months ended November 7th are higher by approximately $7K due to the line item called “Beach Expenses.”
Beach expenses is one of four-line items used to record expenses made to preserve and maintain the two beaches. Beach expenses include cash spent to (1) rake the beaches, (2) landscape the beaches (e.g., trim shrubs, whack weeds, cut grass and remove debris), and (3) other routine and one-off maintenance activities (e.g., cut and remove fallen trees post a storm, replace swim ropes, etc.).
The other three line items used to record expenses to preserve and maintain the beaches are (1) beach improvements (e.g., the fence), (2) beach security
(e.g., security camera and WIFI), and (3) beach utilities (e.g., dumpster, water, electricity, and backflow testing at VG).
Beach expenses in 2024 were higher than expected for two reasons:
1. POENB keeps its books on the cash basis of accounting – which means that revenue is recognized when cash is received and expenses are recorded when cash is paid. This is normal and proper for a small non-profit like POENB.
2. POENB switched landscapers in 2024. POENB’s prior provider, Steve D’Amato of Ecological Landscaping, submitted a single bill in December 2023 for the entire year of services. POENB paid this bill in January 2024. POENB’s current landscaper, Ted McCarthy, bills monthly for services and POENB pays this bill the month after it was received.
Therefore, since POENB uses the cash basis of accounting to prepare its financial statements, 2024 beach expenses include landscaping expenses for BOTH 2023 and 2024.
As of November 7, POENB had approximately $22.5K in all of its bank accounts.
A member asked about revenue received from beach rentals (for private events) and whether the amount is more than, less than or approximately the same as
prior years. Sally Neal said that the “Beach Usage Income” for the approximately 10 months ended November 7, 2024 was $1.8K. She said that she would look at prior year revenues and report on the trend line at the December meeting.
Social Report – Tom Kehoe for Yvonne Lambertson and Ryan Schaefer-Walker
POENB Dinner – Approximately 40 people attended the first annual community dinner organized by Sara Coddington-White at the Britannia Yacht Club on Saturday, October 19th. The event received rave reviews from the attendees who really enjoyed the opportunity to get to know their neighbors in a relaxed and intimate setting. The Board would like to extend a special thanks to Sara for her initiative and hard work in making this event possible. It is much appreciated.
Movie Night – The Board would also like to thank Michael Cohen, Mike Howard, and Paul Dippolito for making the Halloween Movie Night a reality. While Hocus Pocus 2 was not as well attended as IF, the turnout was strong and a good time was had by all.
Turkey Trot – The annual 3.1 mile road race will take place on Thanksgiving morning. Tom Bishop will mark the course by painting a turkey image on the streets.
Cost of Social Events – A member asked about the cost of the social events and whether the Board knew which events were profitable, breakeven propositions or cash negative. Sally Neal, speaking for Ryan Schaefer Walker, stated that because POENB tracks the revenues (if fees are charged) and expenses (for associated cash distributions) for each social event, that yes, the Board and members know the profitability of all social events. Revenue and expense line items for each social event is shown in the income statement.
Sally added that the Board also reviews the “profitability” of all fee-based social events and has and will cancel and/or modify the event to ensure that it at least breaks even. That said, some events like the Thanksgiving Day Turkey Trot, the Halloween Parade and fire safety event, and the Easter Egg Hunt are free to both members and residents. While there are nominal expenses (x<$500) associated with each of these events, they are not materially net cash negative on POENB’s financial condition and the enjoyment the community receives from these events dwarfs the small associated expenses.
Beach Report – Tom Kehoe for Ryan Schaefer-Walker and Yvonne Lambertson
Tom reminded members that since the beach season runs from mid-May to October 1, the two beaches are officially closed. Please refrain from putting anything ON TOP of the dumpster at PB. Any garbage “resting” on the dumpster is unsightly, will NOT be picked up, and will attract vermin.
During the off season, members are invited to walk on the beaches and enjoy the water views. However, POENB’s Beach Rules PROHIBIT animals on the beach, leased or unleashed both on and off season.
Membership Committee – Gene Caputo
As of November 7th, 243 of the 419 (58%) eligible households have elected to become POENB members. The 2024 membership numbers were down from 2023 (258) but were similar to 2022 (244).
Nominating Committee – Tom Kehoe & John Ballow (for Christine Ballow)
Per the by-laws, POENB’s board positions run from January 1 to December 31. Tom Kehoe noted that both Ryan Schaefer-Walker and Yvonne Lambertson are stepping away from their current positions as of December 31, 2024. Both officers have implemented significant modernization projects to make POENB’s operations more efficient and effective. These smart, dedicated, talented and enthusiastic individuals will be sorely missed and POENB thanks them again for their service.
John Ballow, entered the nominations for the POENB Board on behalf of Christine Ballow, the Chair of the Nominating Committee. The nominations are:
Tom Kehoe – President
Steve Neuf – Vice President
Sally Neal – Treasurer and Recording Secretary Nancy Regan – Corresponding Secretary
Michael Ien Cohen – Assistant Vice President
Paul Dippolito – Assistant Vice President
Anthony Fusaro – Assistant Vice President
Members are invited to the December meeting on Wednesday, December 4th at 7:00 pm at the EN Firehouse to vote on this slate of candidates.
New Business – Tom Kehoe moderating multiple member comments
A lively discussion ensued on POENB’s financial condition.
Members noted that expenses seem to be increasing at a faster rate than revenues. Expenses have increased given (1) inflation, (2) a declining cadre of volunteers and (3) an increasing reliance on 3rd party contractors (e.g., especially to maintain and preserve the two beaches).
Revenues have risen primarily because membership dues have increased slightly. As noted previously, approximately 88% of total POENB revenue is generated from membership dues and watercraft fees. Although all 419 properties in the POENB area are eligible to become members, typically only 55% avail themselves of the opportunity.
Several members wondered why membership appeared to be “stuck” at 55%. Two potential reasons were cited: (1) the membership price was too high and (2) residents viewed POENB exclusively as a “beach association” and didn’t join because they didn’t “value / use the beaches.”
Sally Neal said that (1) POENB membership fees are at least 30% lower than other private beaches in the area with comparable amenities and (2) there is no correlation between number of members vs membership prices based on an analysis of the number of members and the price of membership using 50 years of data from archived copies of the Changing Tides. For example, when dues were increased by 80% (from $50 to $90), membership increased by 6% from 240 to 256. Similarly, when dues were held constant at $120 for 12 years (from 1989 to 2000), the number of members went up and down in no discernible pattern. During that 12-year time period, the number of members ranged from 155 to 248.
Residents may view POENB exclusively as a “beach association.” Based on an analysis of members over the last three years, residents with waterfront properties typically do not join POENB.
Members noted that while revenue was variable (given its dependence on the number of members), expenses were fixed since 99% were spent on services provided by external parties.
Therefore, members discussed practical opportunities to increase POENB’s revenue. Ideas to increase both the number of members and generate other sources of revenue included:
1. Use feedback gathering mechanisms to obtain resident’s input on their perceived value of a POENB membership.
2. Conduct a “door knocking” campaign to more interactively communicate POENB’s:
(a) Three-fold mission of
(i) Preserving and maintaining the beaches
(ii)Conducting social events and
(iii) Improving the public safety welfare of all residents and
(b) Lead role in
(i) Successfully petitioning PSE&G to “bury the lines” and provide reliable electrical power to EN and
(ii) Advocating for permanently “fixing” the Bevin Seawall
3. Make the membership more valuable by adding perks that are only available to members with membership cards/documents (like discounts with local vendors)
4. Create a new class of members (e.g., sustainers) for persons who want to support POENB’s public safety and social welfare advocacy efforts but are not interested in using the beaches or social activities
5. Improve the amenities at PB and VG (showers, bathroom, pickleball court)
6. Review the pricing structure vis a vis peers
7. Offer social events that generate significant revenue
8. Submit invoices directly to all residents
Next Meeting
Next month’s meeting is scheduled for Wednesday, December 4 2024 at 7:00 pm at the EN Firehouse. As noted previously, this important meeting will include voting on the list of 2024 Board members. Members are encouraged to attend & bring some BYOB and treats to celebrate the 2024 holiday season after the meeting.
