Gunstock completes 'impressive' ski season

GILFORD — While it has been a rocky winter, politically, for the county-owned Gunstock Mountain Resort, the ski business has been nothing short of terrific.

With Gunstock approaching the end of its fiscal year on April 28, Chief Financial Officer Cathy White said the year-to-date net income for the county-owned recreation area as of the end of March stood at $4.3 million. That is $2.8 million higher than budgeted, and $832,000 more than last year at that point in time.

Gunstock Area Commission Chair Peter Ness applauded the management team, saying ski areas are a capital-intensive industry and “obviously this winter was probably one of the more vibrant ones. The fact that we were able to increase top-line record growth and cash flow is extremely impressive.”

While Gunstock operates year-round, it is the winter ski season that provides the bulk of its income. White said winter revenue was $15.2 million, or $2.8 million more than budgeted as of March 31. The ski season did not end until April 3.

Driving that income was a 26% increase in skier visits, due mainly to season pass-holders. Season pass sales were 39% higher than last year.

Day ticket sales were up 2% and night skiing up 13% over budget.

White reported that the effective ticket price — taking into account the various tiers available — was $62.92. The resort had budgeted for an effective price of $57.86.

Total resort sales per skier visit amounted to $77.48, up from $64.44 last year but less than the $79.43 anticipated in the budget. Gunstock President Tom Day said expanding offerings that would get skiers to spend more money while there is a growth opportunity for the resort.

Those positive numbers allowed the resort to pay down its debt by more than $1 million and send $316,874 to Belknap County. The county fee is $61,693 more than budgeted.

Looking ahead to the fiscal year ending April 27, 2023, White offered a preliminary budget for the commission to review. It included a 34.4% increase in salaries and benefits, something Day said was necessary to compete with the rest of the industry.

“This is historical data with pay scales that have to happen,” Day said. “Nobody’s working for $11 any more.”

Some of the increases are attributable to additional personnel because of unfilled positions this year. Day said they were short-handed on several occasions.

Among the needs is an increase in ski patrol members, particularly with the popularity of night skiing. At night, there were three ski patrol members when Day said there should be six.

Additionally, they are looking to increase summer activities from four to five days. Although summer operations generally operate at a loss, it allows the resort to keep trained personnel that might otherwise move on to other jobs. Day said they want to avoid having to train several new people for key positions in the fall.

Five-day operations also provide full-time employment for summer workers. It is hard to attract personnel for part-time positions, Day said.

Capital improvements planned for the coming year include $550,000 for improvements at Cannonball and $150,000 for new snow guns.

“That will get us more efficiency and that gets us to be able to make more snow,” Day said.

A $400,000 groomer also is in the budget.

Management also is looking to expand the Stockade building for $500,000, with another $200,000 for equipment. They learned of structural issues with the building, along with electrical and gas problems. The building does not have adequate ventilation, along with other deficiencies, Day said.

Proposed capital expenditures also include $225,000 for air conditioning for the main lodge, which would allow for growth in summer programs.

With several new faces on the commission, White offered to meet individually with them to go over the budget in more detail to answer any questions they might have.

Ness said it would be better for the commission to meet together, both to save White time and because some of their questions might lead to other commissioners having questions that could be answered.

White also offered to make a budget presentation to the Belknap County Delegation, which has questioned some of Gunstock’s spending and made statements that White said were untrue. She said that going through the budget would help everyone understand what the numbers mean.

Commissioner Gary Kiedaisch objected, saying it is up to the commissioners to make budget decisions about Gunstock operations. The delegation may appropriate money to carry out Gunstock’s mission, such as borrowing money to allow the resort to operate through the summer — the commission is unable to borrow on its own — but otherwise operational spending is within the purview of the commissioners.

White said she would make the presentation to the delegation once the fiscal year 2023 budget has been set. She said she and Day were willing to do that on their own time if it would provide a better understanding of Gunstock’s spending.

Right to know

There have been questions about the public’s access to financial information. In the past, Day has refused to release detailed budgetary information to the public, saying competitors could use that information to their advantage.

Ness said he had reviewed RSA 91-A, New Hampshire’s right-to-know law, with Joseph Foster, who served as attorney general under former governor Maggie Hassan. As a county-owned facility, Gunstock must provide information to the public if requested, he said, adding that they cannot ask why the information is requested.

Commissioner Doug Lambert, who recently joined the commission as a right-to-know advocate, noted that the public cannot ask for information in a form that does not exist.

That said, Lambert and other commissioners asked that the budget be provided to them in general ledger format to make it easier to understand the expenditures.

White said she puts it into that format once the budget is set, but it is a very time-consuming process, so she avoids it while the numbers are still being developed.

Ness said Cordell Johnson, the government affairs counsel for the New Hampshire Municipal Association, is willing to provide a 91-A presentation to Gunstock’s management, and that Foster also would be available to answer questions about the law.

Ness also suggested that, with so many new members on the commission, they should have management give them a tour of the resort. Lambert noted that it would have to be posted as a meeting, since a quorum of the commission would be present.

Parking lot

Because there was a vacancy at the last commission meeting, they had not acted on an opportunity to obtain grant funding for parking lot improvements. At their April meeting, they returned to the issue.

Belknap County Commissioner Peter Spanos had notified the Gunstock Area Commission that $1.3 million in federal funds could be available for improvements to the parking lot ahead of next winter’s ski season.

Gunstock Commissioner David Strang reported on his conversations with Spanos, saying the money could cover engineering costs associated with the project.

Pat McGonagle, facility operations director at Gunstock, elaborated, saying that paving the parking lot would require drainage work. The current parking lot is gravel, allowing water to filter into the ditches leading to a retention pond. An asphalt surface would lead to greater runoff, requiring a drainage plan.

McGonagle ruled out other forms of paving, saying that ledge pack tends to get slippery when wet and permeable asphalt requires a base to contain runoff.

Commissioner Jade Wood suggested extending the pavement to the Stockade building to provide better access to the building, but Strang said the money could be only for improvements to the existing parking lot. He emphasized that obtaining the money would require a unanimous vote of the commission and urged Wood to go along with the original proposal.

The commission approved the project on a 5-0 vote.