Currently, a budget has not been officially submitted for FY2013. There is a budget draft in progress, which outlines projected income and expenses. There are three reasons for this.
The first is that the Metropolitan is now charging tenants separately for water utility. We would like to obtain at least a few data points before committing a number to a new and variable line item expense.
The second is that we don’t have a clear picture of project income from classes. The good news is that revenue from classes is not needed to balance the budget.
The third is that our insurance expense may increase, since we must obtain additional insurance to cover the costs of growth.
The plan is to officially submit a budget at the end of Q1, after more data is obtained and the budget draft reflects reality accurately. It is just short of complete certainty to expect a budget that is balanced. What we are planning for is our expected net revenue, for our first fiscal goal of building a reserve of 3mo of operating expenses. We are expected to meet that goal in early Q2 if current trends continue.
At January’s end, we have 1.51mo of operating expenses, a modest increase from the month before.
We took in more than enough income to cover our operating expenses. However, we are short on January payments from a few members at month’s end. Whether to charge late fees, and our policy on membership termination for non-payment will be discussed at the next BOD meeting.
Our big expense for the month was lighting fixtures and bulbs for the workshop zones in the back. We added and installed new fixtures.
New expenses that we are planning for include the aforementioned water utility and insurance.
We added 4 new members this month, and 2 additional folks are in the process of obtaining membership but have not submitted questions yet. We continue the trend of membership growth that started in FY2012 Q2.