10/22/12
The Insider's been reading the proposed 2013 South Shore Center budget and the associated notes which are on the agenda for tonight's Council work session. Since many readers commented on the previous post on the Center's financial issues, here are observations about the 2013 draft budget.
Rental and class fee revenues are budgeted at $77,500, the same as the 2012 budget. As mentioned in the last post, there is a severe revenue shortfall so far in 2012 and no announced plan to make a recovery. So, how does Ms. Anderson plan to achieve revenues in 2013 that she is not achieving in 2012? We don't know.
Ms. Anderson gets $60,000 in fixed compensation and 20% commission. So in 2013, her total budgeted compensation is listed in tonight's materials as $76,000 assuming meeting the revenue objectives ($80,000 of total revenue).
Total expenses, including Ms. Anderson's compensation, for 2013 are listed as $125,900. This expense level results in a budget shortfall of $32,200. But, there's more. In the revenue line is a $13,600 transfer in from the general tax fund. So, the real 2013 deficit is $45.600. The subsidy budgeted for 2012 was $13,600 and that budget showed a $300 surplus
Will Lizee/Zerby and friends accept subsidizing the Center when the proposed budget calls for needing $45,600 of subsidy? The Insider's guess is yes since they don't want to make any waves before the election.
Interested readers should look at the budget proposal at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/161535/Electronic.aspx See the Finance Director's memo end of page 1 and top of page 2 and the budget page for the Center on page 5.
Happy Reading!
The Insider
I'll take that deal without the 20% commission!
ReplyDeleteInsider, please remind us where we can view the P & L for 2011 and 2012 to date? And is there somewhere we can see where the sales and rentals came from over the past 2 years, specific events and classes and what they yielded in terms of revenue vs expense?
As residents we all must take notice of this management debacle. It is a microcosm of the problems that we are on the brink of in our city.
Beware the push for trails.
The commission is a good thing. It means she should be out hustling getting the best gigs for the center.
ReplyDeleteIs she?
Doesn't the budget shortfall answer this question?
DeleteShe gets the 20% commission starting on dollar one. Nobody in the real sales world has that deal. You get commission after your draw or after your sales exceed an agreed-upon level. And 20%? Holy mackerel!
DeleteI am surprised that facility managers aren't beating the doors down for the job. This was a sweetheart deal from the get-go!
Spending over $45k to subsidize the Center is ludicrous ... Remember that community survey Council spent money on, but still hasn't acknowledged? ... 70% of those surveyed 'NEVER' used the Center. This Council is happier than a witch in a broom factory when it comes to spending our money. Time for them to realize we can't do everything .. if trails are the priority then dump the Center.
ReplyDelete