From: Trey Meyer [mailto:TreyM@lawrenceshelter.org]
Sent: Thursday, July 09, 2015 3:51 PM
To: Diane Stoddard
Cc: John Tacha; John Magnuson
Subject: 2015.7.9 LCS operating projections

Diane,

Attached hereto please find a spreadsheet, titled Exhibit A, showing updated projections for LCS’s operating revenues and expenses for the remainder of 2015.

Please note the following items, which I updated after the city and county commission meetings this week:

1. Event revenue of $14,000 is noted in July.  This represents proceeds from the recently completed 5k race fundraiser, on which we partnered with Family Promise.  When I prepared our original projections, I anticipated receiving those proceeds in August.  We actually received them last week.  I have therefore moved that entry from August to July.

2. A government contribution of $50,000 is noted in July.  This represents a contribution by Douglas County, if the county commission chooses to move forward with that contribution.  If they do so, I surmise that we would receive those funds in July, and I have indicated as much.

These projections assume that we continue operating per our typical monthly budget.  As you can see, without further revenue, this scenario is not currently financially feasible.

The Commission asked us several questions about how we might be able to save money by serving fewer guests.  Any savings achieved by serving fewer guests would come primarily from lower payroll expenses.  A decrease in occupancy would be driven by our staffing levels.  If we are operating at full staff levels, then we are very capable of managing 125 guests.  If we have to cut back on staffing levels, then we very likely would have to cut back on our occupancy.  Exhibit B, also included herewith, sets forth our operating plan if we are able to receive $50,000, assumedly from the county, but no further contributions.  As you can see, under that scenario, we would scale back our staff to one-half of our current levels.  We would be able to fund our operations to the end of the year under that scenario, although we would have to navigate operating deficits in September and October.  At these staffing levels, as discussed herein and at the City Commission meeting, it is highly likely that we would need to scale back to about 75 occupants.  We also expect that we would be able to do very little in the way of direct case management services for the remaining guests, as most of our staff’s time and energy would be devoted to simply maintaining the status quo.  In response specifically to Commissioner Boley’s question about occupancy levels, as we have examined the situation further, there really is not a “middle ground” option.  If we don’t secure further funds, even with a $50,000 contribution, then we will move to half staff levels, most likely in August.  Under that scenario, I would expect the decrease in our guest occupancy to occur at the same time.  As you can see, that would leave us with about $12,000 in the bank at the end of the year.  Even if we spent that $12,000 during the rest of 2015 on payroll (about $2,000 per month), that really would not permit us to increase our occupancy levels above about 75 guests.

If we can answer further questions or provide other information, please contact me.  Thank you.

Trey Meyer

Lawrence Community Shelter

Director of Program Development

Interim Director of Operations