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|
|Cost of Goods||($25,560,674)||-63.8%||($24,719,212)||-63.7%|
|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.|
|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|
If you have any questions regarding the FY2014 budget or other Co-op financial matters, feel free to email me at .