RSTA Budget Process and 2014 Proposed Budget Budget Process Overview How RSTA has funded the cost of the Summer Program Expense Overview: Summer Payroll Winter Payroll Equipment Bookkeeping and Administration Credit Card Processing Handbook Awards Meet Supplies

Budget Process Overview Sept. 30 th : Fiscal Year ends January Board Meeting: Board reviews and votes on Budget – Often, Budget is approved in February due to proposed change in either Dues or a planned major expenditure or hourly rate increase The budget does not constrain the Board and Committees from making decisions that can result in positive/negative variances – Majority of Committee work takes place after budget approval – Registration Income and Payroll decisions are generally exceptions These decisions are generally made before a budget is finalized RSTA reserve (post-Summer Swim) ideally $30 - $40K – FY 2012 Winter Swim and Equipment dropped cash balance below this level

Committee Chairs manage expenses under their control o Committee changes and/or recommendations that are made during the course of the year (impacting expenses) can be brought before Board o Treasurer gets one vote on Income/Expense increases: payroll, dues, equipment, etc. o Treasurer projects and reports impact of change on budget and dues/income requirements as input to evaluation Budget Process - Committees

How RSTA has Funded Summer Swim Operating Losses $178,000 over Past Six Years “Sustainable Source”“Un-Sustainable Source” Winter SwimUse of Cash Balance: Cumulative Income: $202,200Cash Balance 2008:$88,712 Cumulative Expense:$98,600Cash Balance 2013:$9,784 Loss Funded:$103,600$79,000 Total “Funding” of Winter Swim Losses: $182,500 Total Summer Swim Operating Loss 2008 – 2013: $178,600 Winter Swim, coupled with a “draw down” of our cash balance has enabled RSTA to maintain Summer Swim dues significantly under the actual cost of the Program.

Hourly rate, taxes, other direct employment cost (does not include indirect expense - party, training) 2008 Act.2013 Act.‘08-’13% Change2014 Budget $77,824 $119,341 53% $128, does not include 2014 increase Effort to attract and retain talent, be competitive. Minimum wage issues (Team Lifeguard) “True-up” of discrepancy between actual and paid hours Primary driver behind dues increases from $110 to $190/swimmer over the period Summer Payroll in 2006 was $57, : Budget $128,870 to include 2014 increase Payroll - Summer

Payroll - Winter Hourly rate, taxes, other direct employment cost (does not include indirect expense) 2008 Act.2013 Act.‘08-’13% Change2014 Budget $6,041 $9,185 52% $9,400 Annual variability due to number of sessions Increase in hourly rate 2014: Budget $9,200, no change in rate/hours.

Storage, Pool Equipment, Sound Systems, etc Act.2013 Act.‘08-’13% Change2014 Budget $9,696$3,827(61%) $12,500 Equipment Expense has varied from $18,772 to $2,704 between ‘08 and ‘13 The Board is occasionally not aware of, or has not approved, expenditures at the time the budget is approved The Board generally approves conservative (high) budget of Equipment expense – we have exceeded budget in only one year 2014: Budget $12,500 - $10,000 in “known” expenses: Lane Lines ($6K), Stopwatches ($2.5K), Other ($2K). Include $2.5K for unexpected expenses. Equipment

Cost of Accountant and Registration Processor 2008 Act.2013 Act.‘08-’13% Change2014 Budget $5,293$8,355(58%) $8,355 Sharon Stettner (accounting, payroll, tax and work permit filings, invoice and payables) 2014: Budget flat, no anticipated change Bookkeeping and Admin.

2008 Act.2013 Act.‘08-’13% Change2014 Budget $7,430 $9,905 33% $9,900 Decision to eliminate checks as means of payment - ~100% credit card Increase in team capacity from 100 to : Budget flat, evaluate alternatives to GroupNet for Registration processing (~$5K) and reporting. GroupNet will not process PayPal transactions. Credit Card Processing

Cost of Producing and Printing Handbooks 2008 Act.2013 Act.‘08-’13% Change2014 Budget $1,837 $1,847 1% $1,900 Board has decided to incur this expense after discussion every year - soft copy distribution comes up for discussion each year Physical Handbooks are used at meets by officials, Managers, and other members of RSTA 2014: Budget flat, Committee to explore alternatives& consider soft copy distribution for families. Handbook Expense

Awards 2008 Act.2013 Act.‘08-’13% Change2014 Budget $7,919 $8,416 6% $8,630 Ribbons ~$5,000 Trophies ~$3,400 Some variability across teams New logo will have moderate impact in 2014 ($600 - $700) 2014: Budget $8,630 – assume RSTA uses existing logo ribbons, and replenishes with new logos as we work through “inventory”

Meet Supplies 2008 Act.2013 Act.‘08-’13% Change2014 Budget $5,260 $1,231 (77%) $1,300 Less paper due to Meet Management System, other 2014: Budget $1,300, assume no change.