Fiscal Year 2014 (FY14) is 52-weeks long, running July 1st, 2013 to June 29th, 2014. Co-op bylaw 6.2 requires that management prepare an annual budget with input from the Board and its Finance Committee, the Board approves the budget, and a consolidated version of the budget is published and distributed to the Owners.

The FY14 budget was initially approved by the Board on June 18th. On October 22nd, the Board approved a revised FY14 budget which incorporated the approved Willy East Remodel project. It is the revised FY14 budget that is discussed and presented here. Some of the highlights from the budget:

  • Investing $4M for a major remodel at Willy East.
  • Implementing staff restructure, including the addition of a category management team and more strategic/collaborative organization of management positions.  
  • Relocating administrative staff to a centralized office to increase efficiency and collaboration.
  • Continuing to focus on staff engagement, including increasing training budget, overhauling our staff evaluation process, implementing collaboration tools, and rolling out open book management.
  • Focusing on our current Owners by sharing our story, reaching out to inactive Owners, emphasizing in-store experience, and creating a means for Owners to provide more input regarding their shopping experience(s).
  • Launching the Local Vendor Loan Fund to support expansion of our local product vendors.
FY14 Budget by the Numbers     
[The below numbers are rounded.]   
 $40,000,000 in total budgeted sales   
 $25,600,000 in cost of goods sold (63.8% of sales)  
 $7,500,000 in total wage expense (18.8% of sales)  
 $4,000,000 in capital expenditures (see accompanying capital budget)
 $3,000,000 in benefits, taxes, and other personnel related expenses (7.6% of sales)
 $450,000 in debit/credit card processing fees 
 $400,000 in repair and maintenance expenses 
$340,000 in rent expenses
 $280,000 in new Fair Share equity payments
 $280,000 in utility expenses  
 $240,000 in Access (need-based) discounts   
 $55,000 projected surplus (aka net income)
Approved FY14 Operating Budget     
The operating budget is a detailed projection of sales and expenses to support and guide day-to-day Co-op operations. 
  FY14 Budget FY13 Actual
  $ % of sales $ % of sales
Total Sales $40,062,462 100.0% $38,779,451 100.0%
Cost of Goods  ($25,560,674) -63.8% ($24,719,212) -63.7%
Gross Margin $14,501,788 36.2% $14,060,239 36.3%
         
Personnel Costs $10,581,300 26.4% $9,654,391 24.9%
Other Operating Expenses $3,980,700 9.9% $3,657,248 9.4%
Total Operating Expenses $14,562,000 36.3% $13,311,639 34.3%
Income (Loss) from Operations ($60,212) -0.2% $748,600 1.9%
         
Total Other Income (Expenses) $115,212 0.3% $146,680 0.4%
         
Income Tax Expense $0 0.0% ($109,000) -0.3%
Net Income (Loss) $55,000 0.1% $786,280 2.0%

 

Approved FY14 Capital Budget  
The capital budget includes significant, long term investments to support strategic initiatives (sales growth and/or operational efficiency), equipment replacement, or facility improvement.
Item $ Comment
Video Conferencing $15,000 Video conferencing between sites to improve communication and collaboration while reducing time/expense/environmental impact of driving.
Google Aps $18,000 Cloud-based collaboration tools including email, calendaring, and file sharing.
Web 2.1 $6,500 Improved site functionality, visitor experience, and better connect Owners to their Co-op.
Postage Machine $4,000 Equipment replacement for admin office.
East Major Remodel $3,797,538 Total $4M major remodel project. $202,462 was spent during prior fiscal year.
30 Quart Mixer $6,000 Adding 30 qt. mixing option while retaining existing mix capacity will enhance productive capacity.
6 Burner Gas Range $8,000 Equipment replacement in Kitchen.
Bench Scale $4,200 Equipment replacement in Kitchen.
Produce Kiosk $12,000 Prototype innovation. Mount a multi-touch screen near the produce department to allow for interaction with produce product data.
Vacuum Packer $6,500 Equipment upgrade. Faster packaging to accomodate expansion of prepared meats program.
Sauage Stuffer $4,500 New equipment to support expansion of prepared meats program.
Lighting Upgrade $6,500 Lighting renovation in the West produce and deli areas.
Nutrifaster $2,300 Double capacity of the production in the West Juice Bar.
Ceiling Fans $5,500 Additonal ceiling fans to support West energy efficiency and air comfort.
Unallocated/Contingency $146,000 Unallocated is reserved for contingency and for projects that require additional planning before approval. This budget will include Centralized Office Space
Total $4,042,538  


Questions

If you have any questions regarding the FY2014 budget or other Co-op financial matters, feel free to email me at .

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