[BW_Finance] Preliminary budget

Tue Nov 22 16:00:41 PST 2022

Hi,

I wanted to add a few points for clarification:

   1. The Local Bike Groups Coordinator position would be dependent on a
   Canada Summer Jobs grant. We've had good success with this of late, so I
   feel safe budgeting it. Failure to get the job would pull the plug on this
   position.
      1. Additional funding of approximately $3750 would come from bicycle
      valet event day staffing charged to the bike valet account and a
potential
      secondment of time to Bike Week Winnipeg
      2. We are helped out with thes from recent increases to minimum wage,
      which effectively increases CSJ funding
      2. Cash flow for the Social Entreprises position will be a challenge.
   We may need to time this as a spring hire and manage bicycle valet
   internally until then.
      1. Revenue through bicycle valet is assumed to be about $22,500
      2. net revenue from the bike racks project is projected at $3000
      based on a 15% admin fee on installation of $21,500 worth of racks
      3. The change from a contracted out Bicycle Valet Coordinator to a
   salaried position adds a lot of flexibility to the bicycle valet service
   that have not had under recent contracts. In particular, it allows us ways
   to offer discounted bicycle valet services if we choose. I do think we need
   to look at our pricing structure for bicycle valet and come up with a
   program that offers a limited number of subsidized events.
   4. The budgeted revenues for memberships, donations and sponsorships are
   in line with recent years. I would not categorize this as a conservative
   estimate. We will need to work hard to achieve these goals.
   5. There is a built in assumption that admin revenue of approximately
   $2500 would help fund the ED position and our fixed expenses such as
   insurance, po box, zoom, etc.
      1. That would amount to $40-$50K in grants that allow for an admin
      cost, so on par with the grants we have been receiving, but not without
      risk/effort.
      2. This is essentially replacing revenue from the 15% we take from
      bike valet.
   6. We've also built in an assumption of net profit of $2,000 from
   events, in particular a fall concert or something similar. We lost money
   this year, so this is definitely a risk, but we have surpassed this in
   previous years as well.

We'll need to work on the presentation of the budget.

Cheers,
Mark

On Sun, Nov 20, 2022 at 1:34 PM Luke Lorentz <llorentz at gmail.com> wrote:

> 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
> <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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