- E-tabs sales retreated to a seven-month low of $98K with an average margin of 16.7% for gross profits of $16K, which is also a seven-month low
- The drawback was not nearly as large on the paper tab site at $57K in sales, floating around recent trend levels but good fortune was on FRYS side as the gross profit margin eclipsed the 20% threshold at 20.59% (YTD avg = 18.25%) for gross profits of $12K
- However, FRYS was stung with a large receipts tax of $14K for the month that led to a net loss of $5,561
- Interestingly, July is the final gross receipts tax in MN’s 12 month calendar cycle, meaning the receipt taxes plunges to just $3K for August, which is good news for FRYS with August being the fiscal year-end but also can result in increased earnings that become subject to the dreaded Unrelated Business Income Tax of ~30%
- Turning to the exciting news for the day: the charitable gifting! FRYS budgeted for $70K in profits over 2023/2024 for donation. Through July, that total was at $62K with roughly $15K of investment at the Rotary Camp and $35K on various Rotary Club initiatives (Strive, scholarships, Warm Our Community, etc..), bringing us to the amount of donations for today of $17K! The breakout of that $17K is as follows:
- Little Falcons $10,000
- After school program to get youth interested in various outdoor/athletic/sporting endeavors
- FRYS budgeted for this $10K in the annual budgeting process and has been a consistent contributor to the program
- School Supplies for All $4,000
- Fund school supplies for youth à program through the Community Action Center
- Cradle 2 Career Initiative $1,500
- Collaboration with the Chamber “to prepare every child for success in school and life by creating a data-based approach to organize, align, and adapt learning and community resources
- River Bend Nature Center $1,500
- Donation to fund/improve youth programming
- Total Donations: $17,000
- On motion by Greg Ciesluk and seconded by George Wickstrom, FRYS membership approved the donations to the above organizations
The following expenses were approved for August 2024 - GG Made Easy = $250
- Inventory = $4,500
- Slight decrease due to purchase at the end of August in preparation for year-end
- CG Team Compensation = $3,000
- MPeters = $12,000
- City of Faribault = $1,500
- Boxers = $10,000
- Misc. (coolers, pursues, Bingo team comp) = $2,500
- Total expenses = $34,750
- On a first by Rod Mahler and second by Kay Hoaglin, FRYS membership approved the expenses for July
- In other FRYS news, a couple Rotarians noticed some issues with the septic system while at the Rotary Adults Only Bash the other night, which is not the first time such issues have arisen à Dave Beranek, along with some experts in septic system analysis, undertook a reconnaissance mission on what might be causing such backups
- Turns out the system is relatively dated and no longer functioning properly à As discussed in prior communications, Rotary is making a big push to get increased usage out at the Camp with next year the start of much of that programming, which means more volume at the Camp and by default more usage on the septic system
- While there still is field work to be done around ground samples and planning, a full replacement of the system is going to cost a pretty penny (likely more than the $15K invested in the Camp this season) à Gambling funds can be used to finance the repair but that will consume a lot of the external donations that FRYS makes over the year, so more discussion is needed on how that project will be financed.
- Next month’s memo will have all 12 months of the 2023/2024 charitable gambling operation to assess and compare to the prior campaigns, building an even greater data set to evaluate for valuable insights!
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