[BW_Finance] Preliminary budget

Tue Nov 22 18:05:09 PST 2022

Here is a link
<https://docs.google.com/document/d/1XryndbTGkEY9SDOPadbO7MVSq0gp6YQ19LUzBnG18DE/edit?usp=sharing>
to the agenda/minutes from tonight's meeting. We were in agreement that the
numbers for the budget make sense and should go forward to the board.

Mark

On Tue, Nov 22, 2022 at 6:47 PM Clayton Rudy <clayton.rudy at gmail.com> wrote:

> 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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