[BW_Finance] Preliminary budget

Tue Nov 22 16:47:02 PST 2022

Thanks Mark for that additional info.

I can't make tonight's meeting.  Please send an email out if we'll need
another meeting to discuss the budget content before the final draft is
circulated to the board a few days before the Dec. 7th board meeting.

Thanks,
Clayton

On Tue, Nov 22, 2022, 6:05 PM Mark Cohoe, <mark.e.cohoe at gmail.com> wrote:

> 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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