You were recently asked to comment on some preliminary projections I had made based on what new revenue we would need to find in order to continue spending as we have in the past.

I’m sorry if this disturbed you, I didn’t mean to suggest that your dues would be increased; I simply wanted to suggest we have had a problem the last couple of years and we’re going to have to address it this year.

The first problem I want to address is the MEALS which include both meals at weekly meetings and certain “free meals” that everyone gets including the Installation Banquet and Pot of Gold.

There is hidden income source, an unintended one. You pay for all your meals at the beginning of the year (usually 48 lunches, because the club is dark for certain holidays). If you miss a meeting you have paid for a meal you didn’t eat.  If you make that meeting up by attending the meeting of another club, you get a credit for half the cost of the meal you missed. The amount you have been paying per week is $18, so a makeup gets a credit for you of $9.

 But, the club only pays the Embassy Suites for the meals we consume.  That way we have a weekly profit to cover the cost of free meals for students of the month and their parents, Teachers of the Month and their Principals, guest speakers and their guests, prospective new members, etc.

 When we had 130 members, we still had a handsome profit to help provide free tickets for you and your spouse for the Installation Banquet and for the two of you to attend the Pot of Gold dinner.

 For a number of reasons we have less meal income and more meal expense than we have had in the past.  Here are a few of them:

1.  We have no policy relative to guests. Sometimes students of the month show up with more than one parent, and we have expanded the categories of awards so that we often have 10 or more free meals on one “of the month” day and, when the RYLA kids come, it’s expensive.  We’re recommending that we invite each student or teacher to bring one guest, more, and we’ll ask them to pay for their lunch. The meal costs have continued to go up; we now pay the Embassy Suites more that the $18 we are collecting and we have other meeting costs that drive the total to just under $20 per week. Per Diem people pay $21 per Meal.
2.  While we kept our number of members at the same level we had at the beginning of the year, we are one of only 4 clubs in the district that did not lose members this year.
3.  Our Accounts Receivable has grown substantially.  Members are taking longer to pay, or, in a few cases, not paying at all.

 POSSIBLE SOLUTIONS: Here are some things being explored by your Board

1.  Reduce the cost of our weekly meeting. Matt Weaver has been meeting with the Embassy Suites to determine possible reductions in our weekly cost. Others have suggested moving to another venue including the Methodist Church, the Masonic Temple, the Arboretum or another less expensive restaurant.
2.  Tighten up on guest meals; create fair policies that won’t put an undue burden on Rotary Members.
3.  Charge a 1% service fee for each month dues are unpaid after 30 days. Require members who are more than 90 Days past due to go onto a “Cash” basis.
4.  Give a 50% meal credit only to those Rotarians who had to pay for a meal when they made up.
5.  Increase the Meal Charge only after all other avenues have been explored.

 Your Comments and suggestions are welcome. Click here to leave a comment

 Thanks

 Your soon to be Treasurer,  Frank Hall

For a complete commentary onthe budget see Frank Hall Budget Comments