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Fiscal Year 2015 Operating & Capital Budgets

Fiscal Year 2015 (FY15) is 52-weeks long, running June 30th, 2014 to June 28th, 2015. 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 FY15 budget was approved by the Board on June 24th.This budget reflects a Cooperative that isin transition. The East Remodel was completed in September. Willy West turns four years old in November and is now a “mature” store. Administratively we have restructured and invested in our back office support of the retails.

Some of the highlights from the budget

  • Achieving break-even profitability (a.k.a. net income = $0).
  • Funding our highest priority projects: customer service initiative, staff evaluation system, open book management 2.0, standardized operating procedures, and telling our story.
  • Looking to the future by completing a Co-op strategic plan, expansion plan, and Willy West store layout evaluation.
  • Developing staff capacity with an improving and better funded training program that is more aligned with Co-op needs and staff career path interests.
FY15 Budget by the Numbers     
[The below numbers are rounded.]   
 $42,800,000in total budgeted sales   
 $27,300,000in cost of goods sold (63.7% of sales)  
 $8,300,000in total wage expense (19.4% of sales)  
 $3,100,000in benefits, taxes, and other personnel related expenses (7.3% of sales)
 $970,000in capital expenditures (see accompanying capital budget)
 $480,000in debit/credit card processing fees 
 $390,000in repair and maintenance expenses 
$370,000in rent expenses
 $290,000in utility expenses  
 $250,000in Access (need-based) discounts   
 $210,000in new Fair Share equity payments
 projected surplus (aka net income)
Approved FY15 Operating Budget     
The operating budget is a detailed projection of sales and expenses to support and guide day-to-day Co-op operations. 
 FY15 BudgetFY14 Actual
 $% of sales$% of sales
Total Sales$42,820,00100.0%$39,988,263100.0%
Cost of Goods ($27,263,780)-63.7%($25,630,881)-64.1%
Gross Margin$15,556,22036.3%$14,357,38135.9%
     
Personnel Costs$11,407,20026.6%$10,486,29826.2%
Other Operating Expenses$4,194,8709.8%$3,941,5969.9%
Total Operating Expenses$15,602,07036.4%$14,427,89436.1%
Income (Loss) from Operations($45,850)-0.1%($70,512)-0.2%
     
Total Other Income (Expenses)$45,8600.1%$66,7300.2%
     
Income Tax Expense$00.0%($51,112)-0.1%
Net Income (Loss)$00.0%($54,894)-0.1%

 

Approved FY15 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
East Remodel$650,000Finish East Remodel.
Expansion$200,000Budget to support Co-op expansion.
Point of sale server upgrade$11,000Upgrade the Point-of-Sale servers to improve performance and allow for scalability.
Customer Service Revamp: Customer comment software$10,000Implement new customer surveying system to track customer comments received/responded to, report trending customer interests, track satisfactory meeting customer service goals.
Security Cameras$10,000Expand current security camera arrangement to improve security of staff and owners, and reduce product loss.
Delivery Truck Refrigeration Unit$10,000Replace current unit which is past its useful life.
Carpet extraction/steam cleaner$5,000Purchase equipment to reduce dependence on external service providers.
Outdoor Mwerchandiser$4,000Purchase outdoor merchandiser fixture for produce and other seasonal products.
Unallocated/Contingency$70,000Unallocated is reserved for contingency and for projects that require additional planning before approved.
Total$970.000 

 


Questions
If you have any questions regarding the FY2015 budget or other Co-op financial matters, feel free to email me at .

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