Fiscal Year 2013 (FY13) is 52 weeks long, running July 1st, 2012 to June 30th, 2013. 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 Board approved the FY13 budget on June 19th. It reflects a Cooperative that has grown faster than anticipated and returned to profitability sooner than expected when the West expansion was approved. Some of the highlights from the budget:

  • Strong sales growth, improved margin, and improved profitability.
  • Doubling of funds allocated to staff training.
  • Financial support for an improved organizational structure to provide better product, branding, and administrative support to the organization.
  • Staged implementation of benefit changes resulting from an almost two-year process of committee work, staff involvement, and final plan adoption by the GM.
  • Investment in improving how the Co-op tells its story.
  • Several sustainability initiatives including night covers for refrigeration equipment, insulated shades for north facing windows, and continuation of Bicycle Benefits.
  • Significant investment towards a major remodel at East planned for Summer 2013.
FY13 Budget by the Numbers     
[The below numbers are rounded.]   
 $39,000,000 in total budgeted sales   
 $25,000,000 in cost of goods sold (64% of sales)  
 $6,900,000 in total wage expense (17.8% of sales)  
 $2,900,000 in benefits, taxes, and other personnel related expenses (7.5% of sales)
 $600,000 in capital expenditures (see accompanying capital budget) 
 $480,000 projected surplus (aka net income)   
 $400,000 in debit/credit card processing fees  
 $300,000 in debt prepayment (including pay-off of 3-year Owner Bonds) 
 $300,000 in utility expenses   
 $300,000 in repair and maintenance expenses  
 $250,000 in Access (need-based) discounts   
 $200,000 in new Fair Share equity payments  
Approved FY13 Operating Budget     
The operating budget is a detailed projection of sales and expenses to support and guide day-to-day Co-op operations. 
  FY13 Budget FY12 Actual
  $ % of sales $ % of sales
Total Sales $38,994,000 100.0% $34,738,806 100.0%
Cost of Goods  ($25,039,969) -64.2% ($22,468,274) -64.7%
Gross Margin $13,954,031 35.8% $12,270,533 35.3%
         
Personnel Costs $9,864,600 25.3% $8,627,656 24.8%
Other Operating Expenses $3,733,911 9.6% $3,297,807 9.5%
Total Operating Expenses $13,598,511 34.9% $11,925,463 34.3%
Income (Loss) from Operations $355,520 0.9% $345,069 1.0%
         
Total Other Income (Expenses) $133,647 0.3% $101,343 0.3%
         
Income Tax Expense ($6,604) 0.0% ($6,000) 0.0%
Net Income (Loss) $482,563 1.2% $440,412 1.3%

 

Approved FY13 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
Finish Web Site Project $9,600 Completion of FY12's major upgrade of the Co-op's website.
Phone System Upgrade $30,000 Equipment replacement at East, Kitchen, and Office.
Dock Leveler $6,200 Equipment replacement in East receiving dock.
Wireless Access Point Upgrade $13,000 Wireless access upgrade at East for improved internal use and roll out to Co-op patrons.
Finish Bulk Aisle Project $15,500 Completion of FY12's liquid bulk aisle project.
Willy Street Road Assessment $23,000 City assessment for improving road, curbs, and sidewalk.
East Remodel - planning & downpayments $400,000 Planning expenses and down payments towards a Summer 2013 (FY14) major remodel.
Undercounter Refrigerator $4,000 Equipment replacement in Kitchen.
Blast Chiller $25,000 Equipment replacement in Kitchen.
General Merchandise Display Cabinet $4,200 Improved display case for housewares, sundries, etc.
Unallocated/Contingency $89,500 Unallocated is reserved for contingency and for projects that require additional planning before approved.
Total $620,000  

 

Questions
If you have any questions regarding the FY2013 budget or other Co-op financial matters, feel free to email me at .

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