SUBMITTED AGENDA ITEMS:

Conclude Consideration of Possible Changes in Meeting Day / Time
· After discussions with all members, it has been decided to keep the meeting at the same date and time, the 1st Wednesday of each month at 5pm.

Review the 2005 FC Yearly Calendar and Work Plan
· Reviewed - no changes at this time. Wrap up of the workplan item requesting a cash accounts report that will be forwarded to Executive committee for the Board.

Review of June / 2Q Financial Statements and Benchmarks
· We're at the halfway mark for the year and we're doing very well against budget. Sales YTD are $218,278 better than budget. Sales growth YTD is 17.2%. Payroll is better than budget at 22.49%. Gross Operating profit is YTD is $198,934 better than budget. The Net Income (bottom-line) is $208,022 better than budget. The growth at the North store is continuing very strong.
· The Cooperative Grocers benchmarks have changed starting with this quarter. (These ratios are updated for the 2nd quarter each year.) We now fall into the Large Store category. At the end of the 2nd Qtr our debt to equity ratio is at 2.11 compared to the Cooperative Grocers median of 1.22. This is a continuing improvement for this ratio. Total Assets have been increasing at a faster rate than liabilities, as we're able to pay for some assets out of operating cash. Only a net increase of 12 new owners occurred in the month of June. This is lower than the normal average of 50.
· Discussed the patronage refund results. Dana is compiling the numbers as to how they were redeemed. Dana will forward the compiled results to Michele for her August GM Report and will forward Laddie Luskin's letter to Sandra to forward to Executive to discuss unredeemed dividends.

Discuss "below-the-line" Community Outreach and Education Expenditures

Work Plan Item 6 - Explore using a set amount for non-ops budget items rather than percentage of sales.
"Foundation" Proposal
· Started discussion regarding classification of "below the line" expenses and income. Marketing to move product in the store vs. marketing for image and community outreach. As a coop, we market for new owners. This is the essence of a coop, to have new owners.
· Operating income is just from selling product vs. the other things we do as a coop and outreach. I view it at a spectrum some things are very clearly ops vs. things clearly non-ops and then some gray area in between.
· That makes sense, and that's the essence of this discussion.
· Discussed why we would want to budget discretionary expenses based on a percentage of sales (that are unpredictable year to year) as opposed to budgeting a specific dollar amount per program.
· But as they're tied to sales, their budget would go down in the case of decreasing sales.
· Another way could be budgeting from net operations income.
· What would keep us from doing our budget this year based on fixed dollars as opposed to a percentage. In the past 2.5% has been a guiding benchmark, but it wasn't set in stone, it was a way of ensuring a benchmark to be sure we're giving back to the community.
· A set amount seems stingy to me. If we make more money, we should give more back to the community
· I agree, 2.5% doesn't seem "discretionary" and these important functions should be taken in to account.
· It can be an increasing set amount, but I'd like to budget for dollars rather than percentages. Budgeting amounts is what makes sense to me. They're not discretionary, they're all important, but I like dollars.
· Discussed how budgeting for the below the line and who is in charge of setting and monitoring each budget.
· During the budging process staff takes the lead in developing the operational budget and the board takes the lead in developing the non-ops budget.

"Homework":
Check over the board financials and give Dana feedback on any errors found before Exec.
Ponder any changes to the finance committee reports and formatting
Regarding the foundation possibility, give Sandra feedback for the Exec committee.

Meeting adjourned: 7:00pm