After two straight years of profits, the Greenbelt Consumer Cooperative announced a net loss of $38,645 during Fiscal Year 2018 at its annual meeting November 10. At the meeting, members voted to keep three people on the board of directors and approved an amendment to the bylaws, allowing the Co-op to accept loans to replace its leaky roof. Treasurer Joe Timer said the results are “discouraging,” and that “Co-op will continue to be challenged and will encounter threats to its long-term viability.” He said the loss was caused by “a compilation of small factors,
rather than a major shock.” “It’s increasingly difficult to retain our customer base and store sales,” General Manager Bob Davis said. “I can’t make any promises, only that we’ll work hard to make this thing successful.” Timer said the Co-op has lost money seven of the past 10 years. The board was unable to add to employees’ retirement accounts, give employees bonuses or pay patronage dividends but it did increase wages and salaries. “I don’t see any patronage funds being repaid in the next several years,” Timer said. Timer said it costs about $800 every time the roof needs to be patched. He said a new roof would cost roughly $150,000. “There are patches on top of patches right now,” said Marketing and Outreach Coordinator Joe Gareri. In order to pay for the new roof, the board amended its bylaws to allow members to lend the Co-op up to $10,000. The previous cap was $2,000. The Co-op will pay 4 percent “annual interest until an agreed date within 15 years,” according to the bylaws, and will accept loans until it owes $20,000 per year in interest. After some debate, members voted unanimously for the amendment. The board will consider installing solar panels when a new roof is installed. Timer said they would cost up to $450,000. Members asked about the risk associated with these loans and questioned how the store would pay them back. “Solar would go a long, long way,” Gareri said. Timer said the Co-op saved $9,000 during FY18 by switching from fluorescent to LED lights. “If this co-op goes bust in five years, you will not get your money back,” board member Bill Jones said. After the store made $45,606 in Fiscal Year 2017, the board paid $21,000 in employee bonuses and added $10,000 to employee retirement accounts. The store had $1,698,895 in total assets at the end of FY18, down 1.8 percent from the previous year. Timer and Jones were re-elected to the board. Donna Peterson, who was appointed to the board in March, was elected for the first time. The Co-op’s Fiscal Year runs from July 1 to June 30 of the following year. The annual meeting is held in November so that the board and the outside auditors have time to close out all of the accounts and give an accurate picture of the store’s financial health.
