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|
|Cost of Goods||($25,039,969)||-64.2%||($22,468,274)||-64.7%|
|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.|
|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.|
If you have any questions regarding the FY2013 budget or other Co-op financial matters, feel free to email me at .