National Director Report 2009

Hoosier Cruisers
2009
Governing Board Report

The meeting started at 9:00 AM with 422 out of 501 Chapters represented making up 84% of the voting members present, thus establishing a quorum.
After the minutes were approved, Treasurer Doug Key took the floor to give his report.
Last year FMCA has lost $907,000.00.
Commercial Revenues have been $5.7 million between 2005 and projected 2010.
In 2009 there has been a reduction of $6 million. It will take an increase of 160,000 new members to replace that revenue.
We have gone from 128,800 members in 2004 to the present membership as of July 30, 101,823 members. We have suffered a loss of 21% membership since 2004.
There are 3 major revenues:
1. FMC magazine advertising
2. Membership dues
3. Conventions

The magazine advertising has dropped $4.8 million over the last 4 years.
The Membership has dropped considerably, therefore creating a drop in revenue.
The convention attendance has dropped making it harder to cover the cost of fixed expenses for conventions.
Since June 30 of this year the bills have been paid out of our investment reserves.
There were 3 basic Budget Goals:
1. Protect FMCA Core Values (Family Fun)
2. Protect FMCA Core Benefits
3. Temporarily suspend costs/programs until FMCA’s financial condition recovers.
The Executive Board made several budget cut proposals for the governing board to vote on.
After much discussion, several proposals past, and several others were defeated.
The biggest item and most discussion involved Medex.

Medex has gone from $1.50 per member in 2004 to $4.75 per member in 2009. The Executive board felt this is too expensive for today’s economy. The total cost is $518,000.00 per year. The executive board gave Medex a notice of intent to terminate as of January 1, 2010. This would give the board a chance to re-negotiate the contract or search for another company. Medex is not an insurance company and is not under federal regulation to give financial reports to its customers.
Because Medex is the biggest new member recruiting benefit tool, the governing board voted 227 to 187 to keep Medex in the budget, therefore the payment will have to come from the reserve funds.
We ended up with a deficit of $900,000.00 which will have to come from the reserves.
It was moved that a committee of 5 (no more than 2 Executive Board members) and such committee shall present its findings to the Executive board meeting in November 2009 and those be brought to the Governing Board meeting in Redmond – August, 2010. Motion passed.
There was a proposal made to raise the Dues $5.00 from the present $35.00 to $40.00 per year. The motion past by a vote of 198 “for” and 175 “against.” Members need to be notified 120 days before the voting letter come to the National Directors for a vote. Please notify me as to your vote on this matter before October 15, 2009. JHard1138@Gmail.com or 1905 Winding Way, Anderson, In 46011 or 765-644-2166.

Personal Note: This puts even more emphases on each member to bring in new members. 65% of the new members are recruited by the membership. We need to increase our efforts and bring in more members.

The elections of National Officers were then held and the results were.
President-----------Charles Schrenkel F140050
Sr. Vice President-Judy Czarsty F79148
Secretary ----------Joanne Durbin F76454
Treasurer----------Will Young F207019

Meeting adjourned at 8:40 p.m.
This was one of the longest Governing Board meetings in the history of FMCA.

Submitted by
Jerry L. Hardacre
National Director