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Fiscal Year 2013 Operating & Capital Budgets

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 expectedwhen 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.]   
 $39,000,000in total budgeted sales   
 $25,000,000in cost of goods sold (64% of sales)  
 $6,900,000in total wage expense (17.8% of sales)  
 $2,900,000in benefits, taxes, and other personnel related expenses (7.5% of sales)
 $600,000in capital expenditures (see accompanying capital budget) 
 $480,000projected surplus (aka net income)   
 $400,000in debit/credit card processing fees  
 $300,000in debt prepayment (including pay-off of 3-year Owner Bonds) 
 $300,000in utility expenses   
 $300,000in repair and maintenance expenses  
 $250,000in Access (need-based) discounts   
 $200,000in 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 BudgetFY12 Actual
 $% of sales$% of sales
Total Sales$38,994,000100.0%$34,738,806100.0%
Cost of Goods ($25,039,969)-64.2%($22,468,274)-64.7%
Gross Margin$13,954,03135.8%$12,270,53335.3%
     
Personnel Costs$9,864,60025.3%$8,627,65624.8%
Other Operating Expenses$3,733,9119.6%$3,297,8079.5%
Total Operating Expenses$13,598,51134.9%$11,925,46334.3%
Income (Loss) from Operations$355,5200.9%$345,0691.0%
     
Total Other Income (Expenses)$133,6470.3%$101,3430.3%
     
Income Tax Expense($6,604)0.0%($6,000)0.0%
Net Income (Loss)$482,5631.2%$440,4121.3%








 











































































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