[BW_Finance] Preliminary budget

[Luke Lorentz]

Thanks Clayton,

I will take a look through it in detail later this week . 

Only thing that jumps out is your comment re the small cash surplus… Depreciation is a non cash item so it doesn’t effect the balance at all. Are you referring to income?

Thx

Luke

Sent from my iPhone

> On Nov 19, 2022, at 6:57 PM, Clayton Rudy <clayton at bikewinnipeg.ca> wrote:
> 
> 
> Hi Finance Committee,
> 
> Mark and I met today to get some rough numbers into the budget (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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