1

Lake Washington Rowing Club2013 Annual Meeting

January 27, 2013With post- meeting updates to slides 22 and 24

2

Agenda

• 2012 in Review• 2013 Goals• 2013 Work Plan• 2013 Budget• Elections

2012 in Review

Evening League stars in Museum of Flight CommercialMartha’s Moms in Opening Day

Learn to Row 2Summer Camp rowers

3Thanks to Susan Kinne and Sow’s Ear Boatworks for keeping the boats afloat, Dale Peschel for a never-ending supply of clean towels, and all of the volunteer coaches and coxswains, and rowers!

4

Frank Cunningham turns 90 and is honored in Senate Resolution 8675

Thanks to Dennis Williams for making SR 8675 happen and to Frank for everything he has done for LWRC!

5

LWRC Website gets a Makeover

Thanks to Sally Thompson who led this effort, and Susan Andrade who restored LWRC’s traditional logo!

6

Goodbye blackberriesThanks to Jim Roe, KC Dietz, and the rest of the Grounds Beautification Committee!

From The Seattle Times 1-20-13: “RAVE To the Lake Washington Rowing Club volunteers who worked incredibly hard over the past year to help restore the north Lake Union shoreline, removing invasive blackberry bushes and replanting the area. It’s a vast improvement, thanks so much!”

7

Head of the Troll was fun for all

Thanks to Hugh Lade and other volunteers for this great club event!

8

1st OktoberFest

• Thanks to Kelly Lockhart and Natalie Luke for putting on an amazing event!

9

Head of the Lake was a Huge Success!

Thanks to Rachel Alexander, Jen Rucier, and the many committee chairs and volunteers that made the event happen!

10

Board Room gets a Trophy Case

Thanks to Steve Suor, Nelson Miller and John Sack for donating their time and materials!

11

More 2012 Accomplishments

• Jen Rucier and Chris Martin set up for change over to Mind Body On-line. – All memberships and other transactions to be handled

through the web– ACH will be phased out

• Improved financial systems significantly. – Hired bookkeeper, renegotiated debt.

• Raised $30,000 from current board for boathouse enhancements. – New bay doors, enhanced workout area coming next month.

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Money

Dues

Progra

ms & cla

sses

Boat sto

rage

Facilit

y ren

talHOTL

Contributions

Other$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Income

Coaches

HOTL

Facilit

y ren

tal ag

ent

Administrati

on

Profes

sional f

ees Taxes

Repair

s & m

ainten

ance

Janito

rial

Rent

Insuran

ce

Utilities

Interest

Deprec

iation

Other$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Expenses

Unrestricted cash as of Dec. 31: $18,407Loan balances down $21,800 from 2011 year end

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Thanks to all Volunteers!• LWRC members kept the club operating in 2012 with more than 2000

volunteer hours– Cleaning and maintaining boathouses, equipment, and landscape– Coaching and helping with Experience Rowing, Learn to Row, Summer Rowing

Race Camp, and Sunday sculling– Conducting the Head of the Lake Regatta and other events– Updating the website, marketing the club, and general operations assistance

• We had numerous “super volunteers” – people who donated more than 30 hours of time

* Volunteering returns to the honor system - no more tracking, just do it!

Keep up the good work in 2013*!

14

Volunteers of the Year

• Sally Thompson – website makeover– After years of meetings and various committees attempting to do a make-over for our

website, Sally is the one who finally got it accomplished. As part of the Marketing Committee, she worked with several other club members, all of whom gave valuable time and energy to the process. But, without Sally’s willingness to bite off the large task of getting input and direction from many individuals, setting up the beta-site, transferring the information from the old site to the new, and launching our new site, we would more than likely still be talking about what could be rather than realizing what is.

• Susan Andrade – artist extraordinaire– Susan has done a remarkable job in remaking the Club's logo, painting Frank's Picture

as the Troll on the lake wall, the Certificates , Poster and T-shirt art for the Head of the Troll Race, and a number of other little art projects around the Clubhouse.

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2013 Goals

• Increase membership by 15% - 30 net new members. Retain existing members.

• Hire a head coach • Solidify rowing programming to meet needs of

members• Implement regular social programming. – e.g., movies, speakers, work out nights, post-race

season party. • Refine long range financial plan

16

2013 Work Plan

• Update club by-laws - structure board to meet goals:– Replace “captain” positions with head coach– Add development expertise– Add marketing expertise– Ensure continuity by creating position of “Past

President”

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2013 Work Plan (cont)

• Develop scenarios and financial models for land purchase

• Refine long range facility budget – roof replacement, HVAC replacement, elevator overhaul

• Evaluate options for addition of space for excellent work out facility

• Evaluate staffing levels to ensure best value for club.

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LWRC 2013 Budget Overview

• Budget Philosophy• Significant Changes for 2013• 2013 Coaching Fees• 2013 Dues Structure• History of Dues• 2013 Storage Fees• 2013 Budget vs 2012

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Budget Philosophy

• One Club – Many Programs• Transparency of costs• Add value to membership• Comparable to other clubs• Long term club stability• Bring in new members• Protect club from a liability perspective

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Significant Changes for 2013

• Flat coaching fee covers all programs• Add Head Coach• New on-line payment/reservation system• Boat caddies for summer months• Facility upgrades – funded by donations– New bay doors– New cubbies and coffee service downstairs– Improved fitness area

• Small lockers available for rental

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2013 Coaching Fees

• $540 annual fee billed at $45.00/mo covers all coaching, entry fees, and trailers to major regattas.

• Can row in any program from learn to row and sculling to the mixed masters and evening leagues.

• Creates a ladder for members to participate in different or multiple programs.

22

2013 Dues Structure

• Dues increase of 15% - first inc. since 2009 and tracks CPI – Effective increase of only 7% due to reduction in taxable

portion• Single Member Dues $745.66 + $17.26 tax ($63.58/mo)• Family Dues $1118.49 + $25.89 ($95.37/mo)• Inactive/Social Dues $69.00

24.37% of regular and family dues are taxable based on overall club usage of equipmentMembership dues are not tax deductible

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History of Dues/CPI

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0

$200

$400

$600

$800

$1,000

$1,200

0

50

100

150

200

250

LWRC Dues HistoryIndividual

Family

Inactive

CPI

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2013 Storage Fees

• 1X $395 or $300 non-accessible• 2X $495 or $400 non-accessible• 4X $700• 8X $900• 1X at Garfield boathouse $200• 2x at Garfield boathouse $300

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2013 Budget vs 2012 (1 of 3)2013 Budget 2012 Estimated Total* Increase (decrease)

Income:ACH Fees 0 780 (780)Dues 162,927 121,312 41,615Program income 56,892 22,484 $34,408Class income 12,250 15,809 (3,559)Private boat storage 40,695 35,068 5,627Locker rental 3,360 0 3,360Facility rental 68,000 75,653 (7,653)Boat rental 1,050 1,134 (84)Trailer rental 700 521 179Head of the Lake 38,000 39,613 (1,613)Merchandise sales 2,700 2,445 255Equipment sales 0 320 (320)Contributions 0 30,987 (30,987)Interest income 12 14 (2)Amazon referral fees 960 1,159 (199)Volunteer fees 0 500 (500)Credit card fees 0 112 (112)

Total income 387,546 347,911 39,635Cost of Goods Sold:

Program wages 60,000 23,554 36,446Gasoline 3,600 2,911 689Merchandise 1,350 2,011 (661)Head of the Lake 25,000 27,399 (2,399)Travel costs & Entry fees 14,302 0 14,302Facility rental commission 27,200 31,215 (4,015)

Total COGS 131,452 87,090 44,362

Gross profit 256,094 260,821 (4,727)

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2013 Budget vs 2012 (2 of 3)2013 Budget 2012 Estimated Total* Increase (decrease)

Operating Expenses:Advertising 2,200 990 1,210Administration 39,192 38,177 1,015Member events 2,600 858 1,742Professional services 12,000 12,017 (17)Taxes 31,706 31,496 210Repairs & maintenance 31,200 32,466 (1,266)Janitorial 4,380 4,258 122Rent 60,000 60,294 (294)Insurance 16,200 14,723 1,477Permits 2,800 5,588 (2,788)Utilities 21,600 18,922 2,678Depreciation 52,000 51,700 300Merchant services 10,076 0 10,076Interest expense 7,070 8,473 (1,403)

Total operating expenses 293,024 279,962 13,062

Net operating income (36,929) (19,141) (17,788)

Endowment fund transfers 7,125 6,703 422Gain (loss) on sale of equipment 0 1,214 (1,214)

Net income (29,804) (11,224) (18,580)

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2013 Budget vs 2012 (3 of 3)2013 Budget 2012 Estimated Total* Increase (decrease)

Endowment fund transfers 7,125 6,703 422Gain (loss) on sale of equipment 0 1,214 (1,214)

Net income (29,804) (11,224) (18,580)

Cash flow adjustments:Depreciation 52,000 2013 operating cash flowPrincipal payments on debt (12,666) 9,530Capital expenditures (84,800)Restricted fundraising 30,000(Gain) loss on sale of equipment 0Proceeds from sale of equipment 0Increase (decrease) in D/R 458(Increase) decrease in A/R (4,978)Discretionary capex reductions 49,233

Total cash flow adjustments 29,804

Net cash flow (0)Beginning cash & reserves 44,211Ending cash & reserves 44,211

D/R = deferred revenue A/R = Accounts Receivable

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Elections• Dues (not including tax*)

– Single Member Dues $745.66 ($63.58/mo)– Family Dues $1118.49 ($95.37/mo)– Inactive/Social Dues $69.00

• Storage Fees (info only, not subject to membership vote)– 1X $395 or $300 non-accessible– 2X $495 or $400 non-accessible– 4X $700– 8X $900

• Officers– Chris Martin - Pres- 1 year term– John Sack - Vice Pres - 2 year term– Marilynn Goo- co secretary - 2 year term– Alex Parkman - co-captain - 2 year term

* Sales tax is based on equipment usage and is recomputed each year. Will be approximately 7%.