OFB Budget Status & 2020 Planning Summary Revenue Not meeting - - PowerPoint PPT Presentation

OFB Budget Status & 2020 Planning Summary

Revenue—Not meeting proje jections

Assumptions for 2019 Budget from September 2018. Associate memberships increase 3% (historic average). Voting/Supporting decrease 4.9% (happened last dues increase). August, 2019 Projections: Associate numbers have decreased (and didn’t meet 2018 projections, which increases the revenue gap). 2019 budget based on 65,313

• associates. Current projection: 59,686 (rev difference of -$98,473).

Voting/Supporting, budgeted for 2019 at 6,384. Current projection: 6,542. Revenue difference of +$18,170 from budget. Revenue difference (combined): -$80,303.

Projected 2019 Year-End

Budget Projected Total Revenue: $2,759,549 $2,698,069 ($61,480) Operating Expenses: $2,695,111 $2,673,557 $24,512 (surplus) Including building rental net income total projected surplus: $39,194

Challenges Projecting Year-End

These projections are based on two methods: Straight-line projection using the July through October results from 2018 (e.g. membership revenue, memberships, office supplies, travel expenses). Manual estimates used when there are differences between 2019 and 2018 (e.g. timing differences in revenue items—like investment proceeds– or expense items– like OFB partner contributions, items where last year does not reflect current year– like legal costs for harassment training or when costs need to be journaled out of the legal budget).

2019 Compared to the “Dues Model”

Dues Model Revenue $2,759,549 Projected Revenue $2,698,069 Dues Model Expenses 2,687,612 Projected Expenses $2,673,557 Dues Model Surplus $80,579 Projected Surplus $39,194

Dues Model compared to 2020 projections

Dues model revenue: $2,811,980 2020 Projected revenue: $2,647,380 Dues model expenses: $2,757,490 Dues model surplus: $54,491

The Good News: Actual In Increased Revenue

2018 Actual Revenue: $2,418,519 (not including building)* 2019 Projected Revenue: $2,698,069 Increase: $279,550 2018 Actual Expenses: $2,431,264 (not including building)* 2019 Projected Expenses: $2,673,557 Increase: $242,293 *Building net revenue put us in the black for FY 2018.

Just not as much as we projected.

Starting Revenue Assumptions for 2020

Associate memberships increase 1.5% 60,564 Revenue: $1,059,866 Voting and supporting drops by 180 6,326 Revenue: $727,485 “Late Pays” Revenue: $35,000 Total Membership Revenue: $1,822,351

‘Other Revenue’ Assumptions

Endorsement Revenue: $375,000 (Flat) Investment Proceeds: $351,329 (4% of 3-year average of investments) Total Operating Income: $2,647,380 Building tenant rent increase of 2.5%

*We do not have OSU Extension lease extended yet. I’ve approached Marion County again. Lease goes through December 2019.

Expenses: What is included

Staffing A pool for salary increases. Continuing our contract lobbyist relationship for full year in 2020. Overlap of 8 weeks to train Patty Kuester successor (retirement). Part-time or contract person to take on WAC and Support 3 County FBs. Note: There is a travel budget added under Field for this person too. Estimated vacation carry-over costs. Funds to engage MTFB staffer in Oregon to develop leadership program.

Expenses: What is included

Postage and Printing costs increased much more than budgeted for

• 2019. This is due to change in mailing service for membership mailers.

Looking into ways to mitigate this and estimate more accurately. Anne Marie has carved out costs and has submitted a lower budget proposal for Info and PR. Most other staff-driven expense lines are status quo or small changes.

Request

This draft budget is built on trying to support OFB’s three strategic priorities: Stronger membership, stronger county FBs, stronger advocacy. We also have an obligation to make the dues changes adopted by the Delegates last as long as possible. I request guidance from the Budget and Investment Committee setting priorities for getting to a balanced budget, and for guidance as to a surplus number the Committee would like to achieve in 2020. If we can get an August financial completed, it will be barely before the September board meeting, so I may not have significantly more/better information at that meeting than I do now.