When the Cook County Community YMCA officially opened its doors with a grand opening on January 4, 2014, supporters were optimistic and sure it would be a success. Detractors were equally convinced that the venture would fail. At the end of the first year of operating, the YMCA had exceeded its preliminary membership goals and the cost of operation had been no more than anticipated for Cook County and the City of Grand Marais.
According to the Duluth Area YMCA statement of activities presented to the county board on Tuesday, December 30, as of December 18, 2014, the YMCA had brought in revenue of $739,627. Expenses were $739,740, a deficit of $113. Included in that revenue is $200,000 from Cook County and the City of Grand Marais. Each entity has committed $100,000 toward YMCA operations annually. The county and the city each also contribute $10,000 to a capital fund for the YMCA facility.
According to YMCA Executive Director Emily Marshall, the local government entities funded 35 percent of the 2014 budget. She said government contributions budgeted for 2015 are 22 percent. The remaining funding is to come from memberships at 50 percent, program fees at 22 percent and special events at 6 percent.
The architectural drawings shared with the public in 2011-2012 have come to life and the current Cook County Community YMCA is bustling with activity on its one-year anniversary.
The revenue anticipated in the YMCA’s 2015 budget is $831,070 and expenses are estimated at $831,069, which would result in margin of $1.
The Cook County News- Herald met with Executive Director Marshall and Cook County YMCA Board Member Hillary Freeman in December to learn more about the YMCA’s first year. The News-Herald asked how the YMCA did financially in its inaugural year. Director Marshall said, “If you look at operations, we hit our budget. There were some operating costs that were higher than expected. We had planned for 200 people—we’re at 1,500.
“With grand opening expenses and FF&E [furniture, fixtures and equipment], we’re about 40 percent over budget. But staffing, revenue, supplies, etc. are on target,” said Marshall.
Marshall said there were a lot of unknown operational costs, such as propane and custodial services. “With all that taken into account, we are on target,” said Marshall, adding that the YMCA is now more aware of those variables.
Also helping with the bottom line was that $40,000 had been budgeted for the YMCA in 2013. That money was spent for operations in 2014.
“We worked to cut expenses where we can. We watched spending very carefully. For the first year, we did a great job of managing finances and making sure that taxpayers are not paying more,” Marshall said.
Members by the number
The News-Herald asked just how many members the YMCA now has—and how many memberships are free or reduced? As of December 8, 2014, the YMCA had 1,486 members in 803 “units.” A unit is a membership category that could be an individual or a family of up to six people.
Marshall said there are 50 units subsidized by scholarships, approximately 6 percent of the total membership. Marshall said the YMCA never grants scholarships of 100 percent. “We come up with some kind of pricing scheme—a membership in-kind option or a discount.”
The member-in-kind option gives people the opportunity to volunteer time at the Y in exchange for membership. There are about 10 people taking advantage of that option.
Board Member Hillary Freeman said the YMCA has provided $20,000 in scholarships and financial assistance to make sure no one is turned away. Freeman said anyone who needs assistance can ask for information at the front desk or online.
Freeman said, “We do try to fundraise, to make up the difference.”
In addition to individual and family units, the YMCA has 10 businesses or organizations with corporate memberships in which a YMCA membership is offered to employees at no cost or greatly discounted as part of a compensation package.
Marshall said the YMCA sees about 215 visits per day, with 750 guest passes each month. Over the last year Marshall said the Y had over 80,000 visitors, “which is pretty significant.”
And, she told the county board on December 30, 163 non-members had participated in classes at the Y.
Employees of Cook County and the City of Grand Marais do not receive free memberships, however many staffers are eligible for gym membership reimbursement under their health insurance plans. School District 166 is a YMCA corporate member and employees receive a membership as part of their benefit package, as they did previously at the Upper Shore Fitness Center.
County budget includes YMCA and Community Center
In addition to the $110,000 it is contributing toward YMCA operations, Cook County continues to pay for operations at the Cook County Community Center. When the 1 percent recreation and infrastructure sales tax was enacted in April 2010 in part to pay for a new community center, it was believed that a new community center would be built to replace the existing building or the existing community center would be modified to incorporate the amenities now housed at the YMCA.
The county anticipated savings from that consolidation which did not occur. The county’s 2015 non-mandated program budget includes $84,903 for the old community center, a $15,337 increase over the 2014 budgeted amount of $69,566. Since 2009, the county’s annual support for the community center has ranged from $59,615 to $66,418. The Cook County Curling Club pays $13,750 each year toward building operations. The Curling Club also contributed significant in-kind work on the construction of the building.
Cook County Auditor- Treasurer Braidy Powers told the News-Herald that community center expenses went up primarily because of maintenance needs of the building.
The county also pays the community education program $15,000 per year from county recreation funds and it pays $8,000 per year toward the community education youth coordinator. The community education office is now housed in an office at the YMCA and the county does not pay anything for use of that space.
The county is seeing savings from not having to contribute to operations at the Grand Marais Municipal Swimming Pool. Each year since 2011, the county had contributed $75,000 of the cost to operate the swimming pool.
City sees savings with YMCA
City Administrator Mike Roth told the News-Herald that the city had a contractual agreement with the county to share “overrun losses” at the YMCA. Roth said the agreement calls for the city and county to split the costs 50/50, but added, “There is a cap of $100,000.”
Roth said like the county, the city is contributing $10,000 annually to a fund for capital improvements.
The News-Herald asks how the $110,000 compares to what the city spent to operate its municipal swimming pool. Roth said it is less. “In the worst years over $200,000 was lost at the pool. More recently, with tightening of expenses and the county contributing, the city’s loss ranged from $60,000 or $70,000 to $130,000.”
Nearly 40 employed at YMCA
In addition to the benefit of offering healthy activities for the community, YMCA Board Member Freeman noted that the YMCA has nearly 40 employees. Marshall said the YMCA has nine full-time staff members and 30 part-time workers.
Marshall said YMCA salaries range from $30,000 – $32,000 for directors and $28,000 for coordinators to hourly rates of $12 – $15 per hour for staff with special certification. Front desk personnel are paid $9.25 per hour. Full-time employees have health, paid time off and retirement benefits. Parttime staffers receive a free membership and a discount on programs. All staff members can use the KidsClub program for their children while working.
Looking to the future
Board Member Freeman said she wants the community to know the YMCA is a place that is accessible to all people. Freeman said the board is committed to fundraising to ensure that scholarships are available for those that need them.
Freeman said in the coming year the YMCA will work at increasing its social responsibility. She said the Y would look at ways to engage with community, such as the recent community survey that led to a change in hours. “We put out the proposed hours and people said, ‘You’ve got to be kidding!’ Emily brought that to the board and changes were made. You speak and we listen,” said Freeman.
The Cook County YMCA board consists of four appointed positions, from the city, county, School District 166 and the ISD 166 school board. Remaining seats are from the community at large. The board is an advisory council to the Duluth Area YMCA and Marshall stressed that the Cook County YMCA would not be successful without the Duluth affiliation. “They provide a lot of services— software for membership, payroll, human resources, technical support, marketing… We couldn’t do it without the Duluth Area YMCA.”
Marshall said the Cook County board works well with the Duluth Area Y. “There hasn’t been one recommendation from Cook County that they haven’t agreed with,” said Marshall, including hours outside those typical for YMCA services.
Serving on the Cook County YMCA board with Hillary Freeman are Myron Bursheim, Sue Hakes, Beth Schwarz, Jeanne Anderson, Rowan Watkins, Mary Curry, Margo Furcht, and Jan Sivertson. “They are community members with a passion to serve,” said Freeman.
There may be some openings on the advisory board in the coming year and Marshall and Freeman encourage anyone interested in being involved with the YMCA to apply. A lot is planned for the YMCA—a Wednesday night wellness series, expanded childcare options with daycare services starting January 5, an emphasis on corporate memberships and more. If you would like to learn more about the Cook County YMCA, visit www.cookcountyymca.org, call (218) 387-3386 or email cookcountyinfo@duluthymca.org.
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