Treasurer’s Report: Board Looks to Volunteers to Help Balance 2011 Budget
On Oct. 20, the board had a special meeting to discuss the 2011 budget. Since the 2010 financial results are rather painful, something fairly drastic needs to be done to keep us out of financial hot water. Rather than go over the budget on a line item basis, we tried to discuss the larger categories.
For this year, we had budgeted for membership and race fees to be rather flat. Instead the declines continue and we are more realistic this time around and are projecting a further decline in dues and race fees income to the tune of $22,000.00. With fewer events, like the J24 North Americans this year, we also had to project a decline in Race Committee rentals for next year. We started to work on sponsorship and we hope to see a substantial increase for next year and we need to increase clubhouse rentals. All in all, our projected income for 2011 is budgeted to be $9,000.00-$10,000.00 less than projected actual this year.
On the expense side, we have fixed expenses in the Shilshole clubhouse and race equipment operational and maintenance expenses and overhead. Payroll and payroll taxes are probably the largest variable. We were told loud and clear not to mess with the racing program and we took notice.
We recognize that the quality of that program is dependent on us continuing to field and experienced and qualified the racing staff and we just voted tentatively to eliminate scorers for all one-design events and start relying on volunteers for that function.
The big expense cuts are proposed bar/food and office payrolls where volunteers will need to pick up all the slack. Under ideal conditions, we should be budgeting for a surplus so that expenses, like the replacement of the Shilshole clubhouse roof, can be paid for without putting our financial reserves under stress.
For 2011, we have trouble getting there and we are budgeting a shortfall of $10,000.00 for the year. Since we are losing money this year, we should be due an income tax refund next spring, which will lower that shortfall some.
If we can stay close to budget, we have the financial reserves to give us some time to recover. Our solution clearly has to be on the income side. The budget will be further discussed during the November 8th board meeting and will be up for a vote.