The coop’s annual report was released today — just three hours before the annual meeting — showing a shortfall of $516,748. This is the third time in the past four years that the coop financials have been in deficit.
During that time, the coop has also borrowed $4.5 million in that time, overshadowing last year’s surplus of $2.3 million.
Despite a predictable increase in operating expenses, general revenue continues to fall well short, this year by $4.8 million. Only by spending the full flip tax revenue does the coop look reasonably healthy.
Unfortunately, since that flip tax revenue is unpredictable, and almost completely outside the board’s control, relying on flip tax revenue to cover a large operating budget is not a strong position. (We’ve written before about why relying on variable flip tax revenue leaves the coop financially vulnerable.)