Blackridge Civic AssociationTown Hall Meeting

January 27, 2013

http://www.blackridge-bca.org/

Welcome from the BCA Board of Directors

• President - Jennifer Suiters (IT / Business, MBA)

• Vice President - Damon Mahon (Business)

• Treasurer - Ron Kotun (Business, PhD)

• Secretary - Julia Ryman (Legal)

• Vice President Membership - Sarah Kuharik (Business)

• Vice President Ways & Means - Ceil Greber (Business)

• Newsletter - Tara Taylor (Independent Business Owner)

• Historian - Cathy Taylor (Independent Business Owner)Members-At-Large:

– Churchill – Lee Borellis (Realtor), Ceil Greber, Maria Taylor (Teacher)

– Penn Hills – Steve Jurman (Attorney), Bill Miller (Business)

– Wilkinsburg –Stephanie McCarthy (Business), Justin McCarthy (Attorney)

Welcome from the BCA Board, a diverse group of professionals who volunteer their services to the BCA!

Agenda

BCA Town Hall Meeting

• Will we Join the Ranks of Failing Organizations?

• Or Will We Reinvent?

• Why Should You Care about the BCA?

• How Did we Get Here?

• What is our Current Financial Position?

• What options were Considered by the BCA?

• What is 2013 Plan (Budget and Strategy)?

• Thank You! And Questions

http://www.blackridge-bca.org/

BCA Rentals Update & Board RecommendationsWill we Join the Ranks of Failing Organizations?

Will we join the ranks?

• Founded in 1888

• Invented digit camera in 1970’s

• Failed to embrace digit technology

• Filed Bankruptcy

• Wikipedia Newspaper “Death Watch”

• Failure of newspapers to go digital

• Failed, national newspapers (200+)

• Failing country club industry

Failure to change with the environment = failure to surviveBCA model based on 1950’s lifestyle, not sustainable?

BCA Rentals Update & Board RecommendationsOr Will We Reinvent?

Or will we Reinvent?

Apple Inc., change, built on strengths = enormous success!

BCA Rentals Update & Board RecommendationsWhy Should You Care

about the BCA?

Why Should you Care about Keeping the BCA?

Property Values

Events

Safety

Pool & Swim Team

Park

Clubhouse Garden Club

Realtors use “Blackridge” area and include other neighborhoods as a HUGE selling point!!!

BCA Rentals Update & Board RecommendationsHow did We Get Here?

How did we get here?Revenues < Costs

Debt of $45,000 from increasing maintenance of a 60 year old building.

Diminishing Rental Revenues due to required rental safety measures (such as increased security deposit.)

Decreasing membership (total homes 615+)

• 2012 Members – 114• 2012 Members – 163• 2010 Members – 172

Deferred maintenance (rough estimate of $185,000)

• Roof & Gutters• Windows & Doors• HVAC Units• Painting, plaster, etc.

How did we get here?BCA Assessment Threat

Component 2012 Assessed 2013 Assessed

Land (Vacant Lot) $2,100 $13,900

Land $45,000 $597,600

Building $50,000 $310,600

Annual Taxes $3,500 $35,000

Totals (Original) $97,100 $922,100

January 16th (Proposed) $319,000

2012_BCA_Assessment.pdf

We have an immediate risk of closing down:

The BCA Board is fighting this assessment, (no guarantees!)

• On January 16th, a Blackridge resident (attorney by trade) represented the BCA on the appeal.

• The Board also intends to lobby our local representatives Jay Costa, Tony Deluca and the Churchill Borough.

BCA Rentals Update & Board RecommendationsWhat is our Current Financial Position?

BCA Liabilities

We’ve received ~$10,000 dollars in memberships, donations and B52 sales and we have paid down debt

Debt Amount Owed

Loan (Parking Lot & Consolidation – 2007) $24,793

Line of Credit (Accrued over multiple years - 2007) $9,484

Landscaping (Accrued , down from $8,000 in 2007) $3,750

Taxes (County, Local – 2012) $3,700

Service Master (Cleaning – 2012) $2,500

Wade Heating (HVAC Repairs – 2012) $500

Sullivan Plumbing (Toilets & Drive Drain – 2011) $400

Insurance (2012) $0

Total Outstanding Debt $45,127

BCA Rentals Update & Board RecommendationsWhat Options Were

Considered?

What Options were considered?

Option Pros Cons

(1) Serious Fundraising Capital Campaign / Strategy

Recommended

• Allows us to continueto operate as is, with no loss of control

• Dependent on activities, donations, other events.

• Past efforts haven’t covered the gaps, can we pull this off?

• Is this sustainable?

(2) Lobbying

Recommended

• Churchill and politicians support request for assessment reduction

• Doesn’t address long term financial constraints / cost structure

• Leaves BCA fate in the hands of politicians

(3) Sell Land, Building,Park or Pool or tear down clubhouse

• May provide cash but only if we can find a buyer (unlikely)

• Zoning options limited!

• Loss of control over assets• Potential for undesirable use• Requires “vote” of majority of

membership

(4) Non-Profit Charitable • Reduce Property Taxes• Enable eligibility for

many grants and corporate matching

• Lose some control or facilities• Outreach to Non Blackridge residents• BCA does not meet the “charitable”

requirement

(5) Bankruptcy • Little to no benefit • Property value impact• Community issues• Loss of Facilities• Requires “vote” of majority of

membership

BCA Rentals Update & Board RecommendationsWhat is the 2013 Plan?

(Budget)

What is the 2013 Budget (Revenues)?

Revenues 2013 Budget

Membership Dues 8,500

Donations 6,000

Rental Revenue 13,000

Miscellaneous 1,500

Pool Reimbursement 5,000

Fundraising 31,225

Event Revenue 5,000

TOTAL 70,225

We have an aggressive fundraising plan, and we need help to make it work and to sustain it

What is the 2013 Budget (Building Expenses)?

Expenses 2013 Budget

Grounds Maintenance 6,000

Facilities Maintenance 12,500

Waste Management (Trash) 3,000

Taxes (2011 through 2013) 13,000

Line of Credit Pay down 3,000

Insurance 7,000

Telephone 950

Electric 3,600

Gas 3,000

Water/Sewage 2,000

TOTAL 54,050

Based on our appeal hearing, we must plan for $10,000 in taxes, plus we need to “catch up” from previous years

What is the 2013 Budget (Miscellaneous Expenses)?

Expenses 2013 Budget

Bank Fees 225

Loan and Line of Credit Expenses 7,000

Facility Repairs 5,000

Supplies 200

Postal Service 250

Miscellaneous 500

Event Expenses 3,000

TOTAL 16,175

We must have a reserve to pay for our outstanding loan and contingency for facility repairs

What is the 2013 BudgetBCA Revenues?

The cornerstone of our revenue plan is fundraising

What is the 2013 BudgetMembership Drive Status?

Thank you! So far our membership letter has generated much needed cash – this proves we CAN do it!

What is the 2013 BudgetB-52 Drive Status?

Current Revenue $4,684

Required Payout $1,124

Current Net Profit $3,664

Thank you! B52 works! We need your help in doing 3 more B52 drives this year

What is the 2013 Budget(Maintenance)?

Due to our aging assets, we must plan for unexpected facility costs

What is the 2013 Budget(Other Expenses)?

The new assessment presents a huge tax exposure

BCA Rentals Update & Board RecommendationsWhat is the 2013 Plan?

(Strategy)

What is the 2013 Strategy? Assessment

1. Fight the Assessment in court and by leveraging politicians

2. Support yearly operational costs with significant fundraising

3. Upgrade the facilities with outside capital grant money

4. Increase reoccurring rentals and reduce reliance on one time rentals

5. Increase membership and community awareness by marketing the value of the BCA

6. Increase resources by filling more board positions, finding volunteers of services or adopting a bill

This strategy must be sustainable and supportedyear over year -- And we need your help!

What is the 2013 Strategy? 1. Fight Assessment

• Deal with Assessment:

– Appeal in court and work with local officials

– Sell land or assets if required (and if possible)

• Your help required:

– Develop a “list” of politicians to meet

– Schedule meetings with politicians

– Conduct meetings and work with the BCA to coordinate politician meetings

Sign up today if you have can help!

What is the 2013 Strategy? 2. Fundraising (Operational Costs)

• Increase Annual Fundraising Revenue to $35,000 (Operations)

• Program must be repeatable and sustainable

– B52 Profits - $10,000

– Script Card Program - $5,000

– Online Auction - $5,000

– Other Fundraising - $15,000

• Your help required:

– Sign up to sell B52 tickets

– Sign up to develop and lead a new fundraiser• Script Card Program

• Online Auction

• Other Fundraising

Sign up to help! need leaders to develop a sustainable fundraiser, recruit a team and execute the fundraiser.

What is the 2013 Strategy?3. Apply for Grants (Capital)

• Apply for Grant Funds for Capital

– Set a goal of $100,000 in 2014 (not guaranteed!)

• $75,000 (Roof, HVAC, windows and doors)

• $25,000 (Pool upgrades)

• Your help required:

– Identify potential grant agencies

– Work with BCA and Pool Club to develop the plan

– Develop the “capital” fund administration procedures

– Draft the grant application(s)

– Present the grant application to agencies for approval

Sign up today if you have can help! Experience with grant writing is a plus!

What is the 2013 Strategy?4. Reoccurring Rentals

• Increase Reoccurring rentals (Exercise, Business Clubs)

– Opportunity: If we can rent the clubhouse out 20 hours per week at $25 per hour that is an annual, sustainable revenue of $25,000

– 20 hours x $25 / hour x 50 weeks

• Your help required:

– Develop marketing plan to attract long term renters

– Show and sell the clubhouse to potential long term renters

Sign up today if you have can help! This is a golden opportunity to get the classes you want at the clubhouse

What is the 2013 Strategy?5. Increase Membership

• Increase Membership

– Welcome Wagon and More Active Membership Requests

• Your help required:

– Promote the BCA to your neighbors (encourage membership and participation)

– Distribute “welcome wagon” packets

– Act as a block captain

Sign up today to deliver “welcome wagon” packets or act as a block captain

What is the 2013 Strategy? 6. Increase Volunteer Resources

• Increase volunteer resources by filling more board positions and finding volunteers of services (cost avoidance).

• Your help required:

– Can you fill a 2013 position such as:• President

• Facilities Director

• Ways & Means Director

• Marketing Director

• At Large Positions (Churchill, Penn Hills, Wilkingsburg)

– Can you offer a free service such as:• Lawn care, plumbing, carpentry

• Other (past examples legal and interior design)

Sign up today! Volunteers keep the facilities alive and help to reduce overall costs

What is the 2013 Strategy? Assessment – Summary

1. Fight the Assessment in court and with politicians

2. Support yearly operational costs with significant fundraising

3. Upgrade the facilities with outside capital grant money

4. Increase reoccurring rentals and reduce reliance on one time (outside) rentals

5. Increase membership and community awareness by marketing the value of the BCA

6. Increase resources by filling more board positions, finding volunteers of services or adopting a bill

These are our assets and your support is appreciated in keeping them alive

BCA Rentals Update & Board Recommendations

Thank You! And Questions

Thank you for your time and consideration, and for your continued

support!