Summary: Good news!!! The financial position of OLT has improved significantly since the beginning of 2014. Net Income from all sources from January through September was $332,900, or $257,000 above expectations. This improvement was the result of a reduction in expenses of approximately $87,000 over the amount budgeted, and an increase in revenues of $ 158,500 over budget. The most significant factor in the revenue gain was the increase in Admission and Accommodation Fees of about $125,500 beyond budget. $176,000 of this net income has been transferred to the Winter Savings account to fund the slow season. Also, larger scale repair and improvements usually are done in December, so this will reduce the end of year net income further. Although OLT's financial position has greatly improved, the battle to get it on a solid footing financially is far from over. The Waste Water Treatment Plant has a $100,000 debt to be paid, the Everson Ranch needs significant capital improvements to get it on a self-sustaining basis, refurbishment of visitor accommodation and kitchen facilities needs to be done, and badly depleted financial reserves for land conservation and capital improvements need to be replenished. Realistically, it will take several years to regain a solid financial footing. But, the results for 2014 are an excellent start.
Some snapshot details:
COMPARISON OF JANUARY THROUGH SEPTEMBER, 2014 TO 2013:
- Total income (revenue) increased in 2014 by $173,167, or 21.1%;
- Total expenses in 2014 declined by $149,423, or 18.9%;
- Total employee expenses in 2014 declined by $18,448, or 3.9%;
- Visitation (person days) increased in 2014 by 2,187, or 9.8%;
- Donations decreased slightly in 2014 by $1,036, or 0.7%, primarily because of large donations in July and September, 2013 that were not matched in 2014;
Tentative budget for 2015:
A tentative (draft) budget for 2015 has been prepared for presentation to the Board of Directors for approval. The tentative budget projects total revenues for 2015 of $1,040,157, total expenses of $871,751, and net ordinary income of $142,910. Total employee expense is projected to be $640,000.
OLT financial policies currently are under review. It is planned that a policy for allocating net income to various reserve accounts, including the Land Conservation Fund, will be presented to the Board in January for their approval. Finally, at its October meeting, the Board authorized creation of a task force to create a five year development plan that is consistent with the Strategic Plan adopted earlier in 2014. It is expected that this development plan will be presented to the Board at its April, 2015 meeting.