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Fiscal Year 2014 Operating & Capital Budgets

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.]   
 $40,000,000in total budgeted sales   
 $25,600,000in cost of goods sold (63.8% of sales)  
 $7,500,000in total wage expense (18.8% of sales)  
 $4,000,000in capital expenditures (see accompanying capital budget)
 $3,000,000in benefits, taxes, and other personnel related expenses (7.6% of sales)
 $450,000in debit/credit card processing fees 
 $400,000in repair and maintenance expenses 
$340,000in rent expenses
 $280,000in new Fair Share equity payments
 $280,000in utility expenses  
 $240,000in Access (need-based) discounts   
 $55,000projected 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 BudgetFY13 Actual
 $% of sales$% of sales
Total Sales$40,062,462100.0%$38,779,451100.0%
Cost of Goods ($25,560,674)-63.8%($24,719,212)-63.7%
Gross Margin$14,501,78836.2%$14,060,23936.3%
     
Personnel Costs$10,581,30026.4%$9,654,39124.9%
Other Operating Expenses$3,980,7009.9%$3,657,2489.4%
Total Operating Expenses$14,562,00036.3%$13,311,63934.3%
Income (Loss) from Operations($60,212)-0.2%$748,6001.9%
     
Total Other Income (Expenses)$115,2120.3%$146,6800.4%
     
Income Tax Expense$00.0%($109,000)-0.3%
Net Income (Loss)$55,0000.1%$786,2802.0%








 































































































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.
Item$Comment
Video Conferencing$15,000Video conferencing between sites to improve communication and collaboration while reducing time/expense/environmental impact of driving.
Google Aps$18,000Cloud-based collaboration tools including email, calendaring, and file sharing.
Web 2.1$6,500Improved site functionality, visitor experience, and better connect Owners to their Co-op.
Postage Machine$4,000Equipment replacement for admin office.
East Major Remodel$3,797,538Total $4M major remodel project. $202,462 was spent during prior fiscal year.
30 Quart Mixer$6,000Adding 30 qt. mixing option while retaining existing mix capacity will enhance productive capacity.
6 Burner Gas Range$8,000Equipment replacement in Kitchen.
Bench Scale$4,200Equipment replacement in Kitchen.
Produce Kiosk$12,000Prototype innovation. Mount a multi-touch screen near the produce department to allow for interaction with produce product data.
Vacuum Packer$6,500Equipment upgrade. Faster packaging to accomodate expansion of prepared meats program.
Sauage Stuffer$4,500New equipment to support expansion of prepared meats program.
Lighting Upgrade$6,500Lighting renovation in the West produce and deli areas.
Nutrifaster$2,300Double capacity of the production in the West Juice Bar.
Ceiling Fans$5,500Additonal ceiling fans to support West energy efficiency and air comfort.
Unallocated/Contingency$146,000Unallocated is reserved for contingency and for projects that require additional planning before approval. This budget will include Centralized Office Space
Total$4,042,538 



Questions

If you have any questions regarding the FY2014 budget or other Co-op financial matters, feel free to email me at

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