The Center of Anna Maria Island still lags in revenue four months into its fiscal year.
However, board members hope donors will respond to improved participation rates with financial contributions.
Board members met Nov. 15 to review the center’s financial status and receive updates on operations.
An audit will be ready for delivery by the December board meeting, board chair David Zaccagnino said, and the center will launch a new “story” in the coming weeks, as advised by the Black Isle Group, a consulting and leadership development firm hired and paid to review center operations by an anonymous benefactor.
Finances, by the numbers
For the 2017-18 fiscal year that began in July, the center is $109,991 in the red. The 2017-18 budget anticipated a $42,830 surplus by the end of October.
Program income was about $41,000 for the month of October, below the budgeted income of $45,000.
Fundraising brought in $21,000 for the month, below the expected $56,000.
Also, the center has not received any government donations or grants for the fiscal year.
Total income for October was $63,364.27.
Direct costs were more than $19,000 below budget and indirect support costs were $4,000 under budget. Administrative expenses were more than $5,000 below budget.
The center’s total net income for the month was $8,543.89 in the red.
Board treasurer Jim Froeschle pointed out that the center’s losses year-to-date were less than in 2016. At the end of October 2016, the center was $144,000 in the red, while for 2017 the center is $110,000 in the red.
In addition, he pointed out, program income is up $30,000, direct costs are down $35,000 and indirect support — expenses like electricity and building maintenance — is down by $33,000.
“The goal is still within reach,” Froeschle said. He said the center improved its numbers wherever it comes within direct control. Only fundraising, grants and endowments have not improved, he said.
The center’s total financial loss for the 2016-17 fiscal year was $XX.
Developments in the fitness center
The center has gained 79 new members since partnering with Island Fitness, executive director Kristen Lessig said.
Island Fitness, formerly located in Holmes Beach, is moving to the center at 407 Magnolia Ave., Anna Maria. Membership for the two entities will be combined into the center membership and Island Fitness users will be required to take out center memberships.
Lessig said Island Fitness members have been allowed to use the center gym through November.
By December, Island Fitness members must be center members. Island Fitness will receive a portion of the center’s membership income and will furnish its own trainers, classes and equipment.
Lessig said the move frees up fitness director Shay Coleman to teach CrossFit classes, which she said are in high demand.
The center’s fitness equipment was provided by former board member Shawn Kaleta on a low-interest note to cover the cost. However, Lessig said that while the center is closed for Thanksgiving, Island Fitness will move its equipment into the gym and the center equipment will be removed.
In September 2015, Kaleta provided the gym equipment to the center with a note for $100,000 and terms for payback in two years. By September 2017, according to the terms of the note, the full value of the equipment was due with interest.
However, the cash-strapped center instead negotiated the note with Kaleta over the past several months.
At the board meeting Nov. 15, Zaccagnino said the center and Kaleta have signed a release of lien and the center would return the equipment to Kaleta without payment.
Louis Najmy, principal attorney at Najmy Thompson PL and Kaleta’s lawyer, said Kaleta agreed to take back the equipment and waive the value, which he said had diminished to $25,000.
In addition to providing the equipment, Kaleta paid for the conversion of the second-floor facilities from offices to a workout gym, including permitting and construction.
In another fitness matter, members of SilverSneakers — a benefit under Medicare for senior citizens — can expect a policy change. Lessig said due to a change in how the program reimburses fitness centers, it is no longer financially viable for the center.
Lessig said SilverSneakers only reimburses the center $25 per member per month.
According to the center website, effective Jan. 1, 2018, SilverSneakers users will need to purchase a senior annual pass for $441 and seek reimbursement from Medicare or their supplemental insurance provider. Current SilverSneakers users who purchase an annual pass before the new year will receive a10 percent discount from the center.
The center is preparing to send mailers, including its impact report, with a request for donations.
Also, a Celebration of Giving event in honor of donors will be hosted Friday, Dec. 1, at the Beach Bistro in Holmes Beach by owners Sean Murphy and wife Susan Timmins. Murphy is a former board member and co-founder of the endowment fund.
COST? Tickets? Who is invited? Is it open to the public?
In addition, the Lester Family Fun Day is scheduled for Saturday, Dec. 2, and will include pony rides, arts and crafts, a bounce house, and performances by a drum line and ballerinas.
The old-fashioned holiday event is sponsored by Chuck and Joey Lester of Holmes Beach.
A bingo program will begin in January, and will be held two Fridays a month.
October Budget Difference
Program income $41,338.11 – $45,000.56 – $3,662.45
Fundraising $20,933.16 – $56,025 – $35,091.84
Gov’t/grant income $0 – $105,000 – $105,000
Other income $1,093 – $2,583.34 – $1,490.34
Costs, direct $28,319.45 – $208,608.90 – $19,289.26
Costs, indirect $36,006.80 – $40,116.13 – $4,109.33
Costs, admin $7,581.91 – $12.841.31 – $5,259.40
Net income -$8,543.89 – $108,042.75 – $116,586.64