[BW_Finance] Preliminary budget

[Clayton Rudy]

Hi Finance Committee,

Mark and I met today to get some rough numbers into the budget
<https://docs.google.com/spreadsheets/d/1-i-QR2NDnK9eicLFc-KkCAnhROX8rjG1BW4kOVYaGrc/edit?usp=sharing>
(first tab of the spreadsheet).  I'm assuming we'll go through it in detail
at *Tuesday's meeting* then email the board with a final draft prior to the
scheduled budget approval vote at the December board meeting (Dec. 7th).

Based on what Mark and I prepared today, below is a draft budget narrative
which I assume we'll modify and expand at this week's FinCmte meeting
before sending it to the board.

*Staffing*
The biggest change to next year's budget may be that we've budgeted to hire
a *Social Enterprise Manager* (or similar title) primarily as an
*office-based* position to do all the marketing, advertising, booking,
reporting, invoicing, and event-day-staff oversight/scheduling for Bicycle
Valet events.  The budget includes expenses for *1 casual event-day staff*
so that the manager doesn't get burdened with all the evening/weekend work
as was the case in past years.  For the dual purposes of making this
position more financially viable and to take a chunk of work off Mark's
plate, we're *combining* the Bicycle Valet work with the rack installation
contract hence the "Social Enterprise Manager" (or similar) title which
encompasses both valet and rack installation activities.  These are also
both CIPS Program activities.  We think BW's at the point where we can hire
a salaried, permanent, though part-time position with the intention of
growing it to a full-time position in the medium term.  If you go to
Schedule B (row 188) in the spreadsheet you can see that we can balance a
staffing budget for these two activities when combined.

On a related note to the valet and racks, we're also confident that we can
fund a Local Bike Groups (LBGs) Coordinator through the busiest May through
August months, but not a permanent year-round position this year.  Check
out Row 391 of the spreadsheet and you'll see that the LBG sub-budget
balances without any major grant revenue and with a Bike Week partnership
plus some valet event staffing.

In summary, without any major grant revenue, we'll be able to hire a *permanent
part-time Social Enterprise Manager* and a *temporary full-time Local Bike
Groups Coordinator*.

*Revenue*
We are very conservatively budgeting a drop in budgeted revenue from
donations, grants, sponsorships, and social enterprises based on
assumed/likely/perceived/forecasted 2022 actuals and expectations for
2023.  We're budgeting for a 35% drop in revenue, though with board and
volunteer involvement there is a HUGE potential to bring in a lot more (for
example with grants which we regularly underbudget by a drastic amount).


*Expenses*
We have a commensurate drop in expenses based on lower budgeted revenue.
There's also an unrelated 20% drop in core mgmt & admin expenses based due
to belt tightening.


*Overall*
With a significant and conservative drop in revenue we're still able to
budget for a new permanent staff position while covering Executive Director
and core mgmt & admin expenses.  There's a *ton of upside* on this budget.
The only thing thing in the way of a major increase in sponsorship revenue
is finding *a volunteer* to lead the next evolution of our approach to
sponsorship (with lots of support), and there's a perennial likelihood that
our grant revenue will be way higher than expected since we normally budget
*very* conservatively for grants which means we get by without much grant
revenue but our programming grows tremendously -- and temporarily --
if/when grants come in.

We have a *small cash surplus* which disappears after depreciation, but
Bike Wpg doesn't get too concerned about the depreciation of our capital
assets as there are many grants available when we need to
replenish/renew/rebuild/grow any physical assets.


Cheers,
Clayton
204.770.5449
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