Introductions/Approval of minutes
- Meeting called to order at 6:35pm with 10 people in attendance.
- Susan moves to approve August and September minutes, seconded by Jim, approved unanimously.
Treasurer report
- We have ~$26k
- Butterfly sculptures still outstanding
- If vendor does not complete butterflies, we can free up ~$3k in budget that was reserved for paying her upon completion.
- We are looking for an accountant that deals with 501 entities, having trouble finding one.
- Treasurer will seek approval from EPNA membership before paying outstanding taxes.
October 1, 2022
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BANK STATEMENT
Bank Statement $25,945.22
Our checkbook reads: $26,304.22
Outstanding undeposited check equal $359.00
Our checkbook balances.
PENDING LIABILITIES
Butterflies to be installed, $3,090.??
Tax liabilities, $ 8,000 ?
Professional fees, $375, plus ???
Other ordinary expenses.
(See Appendix)
Treasurer Report
October 1, 2022
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BANKING INFORMATION
Heritage Credit Union has closed. It has become Connexus Credit Union.
Treasurer Report
October 1, 2022
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TAX SITUATION
We met with an attorney about our tax situation. We have several choices. We do not know how much money each choice will cost. We have to investigate each choice.
Maybe, that’s maybe, we might face upwards of $15,000 – $16,000 in costs all told. I strongly suspect our costs will be much lower than that. BUT,… I can’t prove – right this instant – that our costs will be lower.
The immediate issue regarding taxes is finding an accountant. Our attorney gave us three referrals. I wrote to all three. Only one replied and that was a polite refusal.
I am very unsure of how to hire an appropriate accountant.
If you know of an accountant – knowledgeable in taxes relating to IRS 501 entities please tell me, or another officer. Go to the EPNA website, select contact, then select treasurer.
The remainder of this text will be in the appendix below or is found in the Sept. 2022, Treasurer Report.
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APPENDIX
NOTES on above items.
Butterflies to be installed:
We owe $3090 but only after the remaining three butterflies are built and installed at the E. Johnson St. and E. Washington Ave. neighborhood entrance. We are waiting on Erika, the sculptor, to finish them. I suspect Erika may have closed down her business following the death of her husband last year. I do not know this for fact. I am in no hurry to pin her down about her schedule to complete these three butterflies.
Other Ordinary Expenses:
These are things like renewing our PO Box every year, paying our corporate filing fee, paying our annual general liability insurance, and so on. I estimate this runs to a little over $1000 per year.
NOTES on Tax Situation
YEAR Nominal Revenue Est Tax Est penalty Sub Total Est fees
2018 $18,695 $1638 $935 $2573
2019 $17,744 $1716 $888 $2604
2020 $2,540 -0- -0-
2021 $18,200 $1930 $910 $2840
Attorney fee (estimated maximum) $4000
Accountant fee $ ????
SUBTOTALS $8017 ?????
NOTES on tax computations. READ THIS.
First off, the attorney tells us we have a decent chance of escaping all tax liability. This a decent chance. This not a guarantee.
I always will err on the side of the worst case potential. This ensures all surprises are good ones.
EPNA is registered as a corporate entity in Wisconsin. This provides the members of EPNA a measure of liability protection. If some one sues EPNA, they get to sue the corporate entity, not the members individually.
I computed taxes by multiplying profits per year by 28%, the corporate tax rate. I assessed penalties according to the IRS rules noted by the attorney. (Penalty caps as 5% of gross annual revenue, or $10,500, whichever is lower)
I don’t know an estimate of accounting fees yet so I left that empty.
I’m thinking at most, EPNA might face a combined tax liability and professional fee costs of maybe $15,000 to $16,000.
I strongly suspect our costs will be much lower than that. BUT,… I can’t prove – right this instant – that our costs will be lower. It also depends on what choices we make going forward in resolving the tax situation. So……. estimate high, just in case.
AGAIN, A WARNING. I know that some of you are very interested in EPNA becoming a 501(c)(3) tax exempt entity.
However….. before we just go ahead and do that, I strongly recommend that EPNA thoroughly understand the consequences of becoming a 501(c)(3) entity, as distinguished from a 501(c)(4) tax exempt entity, or simply remaining a taxable entity.
The nominal goal of many EPNA members is to operate the Festival to generate money to be spent on deserving recipients to the benefit of Eken Park neighbors. However….. we do not know what impact becoming a 501(c)(3) entity will have upon EPNA’s ability to donate money. Please investigate that concern thoroughly before becoming a tax exempt entity.
Jim Wold in Zoom chat
Committee Reports
- Festival
- Despite near worst weather scenario, still did very well and finished in the black.
- Volunteer party is October 18th at Dexter’s
- Who will continue on Festival Committee and in what roles?
- Mark is comfortable with his role.
- Tom wants to be involved this year very narrowly regarding booking bands.
- Merge with Emerson East NA
- Officers need to meet
- Greenspace Committee
- Conversation still needs to happen w/ current chair
- Some members reiterated concerns about butterfly sculptures and signs being obscured by plantings.
Bylaws Amendment for Policies
The Proposal to amend By Laws to allow creating Policies:
SUMMARY
The core idea: Approve this amendment once in the October meeting. Approve it a second time, (required of a By Law change) in the November meeting.
Also in the November meeting, introduce a membership Policy proposal. This proposal says several things. All memberships in September 2022 automatically extend until August 31, 2023.
Starting in September 2023, membership starts on Sept. 1, and continues through August of the following year. All membership payments received in August of a given year will apply to the membership beginning that September.
All membership payments received in September or later will apply to that current year only.
Jim Wold from Zoom chat
- New policies need to be voted on by membership.
- There is language regarding record keeping and display.
- A member expressed concern that officers cannot set policy
- Jim moves to move forward to the next meeting regarding adopting the proposed amendment to the bylaws here https://blog.ekenpark.org/2022/09/29/proposal-to-amend-the-by-laws-to-allow-for-the-creation-of-neighborhood-association-policies/, seconded by Bernice, 9 ayes, 1 abstention. Motion passed.
Notice of Expiring Memberships
- “This fee covers membership from November 1 to October 31. Members joining after April 15 have a membership running through October 31 of the following year.”
Tom moves to extend by 5 minutes, seconded by Mark, approved unanimously.
Notice of Officer Elections
- Open position for CoChair, Secretary and Treasurer.
- Jim nominates himself for treasurer.
- Zack would not like to continue as secretary.
Alder Updates
- Alder not present.
Open comments
- Syed is not going to run for Alder again.
- A member expressed thanks for the recommendation of “Slices”, the bar and restaurant.
- This member reviewed book “The Three Body Problem” highly.
Zack moved to adjourn, Jim seconded, meeting adjourned at 7:36pm.
Eken Park Neighborhood Association Blog 