12 November, 2006

Present:  Peggy James, Ann Mueller, Cynthia Nelson, Kathy Stelford, Mary Helen Polensky, Tania Nezrick, Judy Krajewski,  member Patty Ruback

Absent: Ruth Peterson

The meeting was called to order by President Nelson.

Patty Ruback attended the board meeting to introduce herself and announce her candidacy for a position on the board.

Minutes for the meeting of 16 October were approved.  Motion to approve was made by Kathy S.  and  seconded by Tania N.

Peggy presented the financial statements for the 3^rd quarter of 2006.  They are estimated, based on an assumption of flat sales.  An inventory was not done.    The inventory figures for 3^rd quarter were assumed to be the same as 2^nd quarter.   Some of the variances were in;

            Insurance - $3000 over budget.  We are paid up until next year.  This will save $ in billing fees.

            Advertisement & Promotions – We bought a full year of Public Radio spots to save $.

            Bank Charges – this is all due to credit card charges.  Credit card sales now amount to 33% of sales, contributing to sales growth.

            Depreciation is under budget.  Our equipment is almost fully depreciated.

            Utilities – under budget due to a mild winter last year.

            Interest expenses – less than budget.  We did not borrow as previously planned.  We’ve been able to pay our bills with out borrowing.

            Sales – up more than budgeted.

We anticipate paying for the reset without further borrowing, resulting in no interest expense.

The staff have been very productive over the past year.   The question was raised about possibly hiring part time staff over the holidays.  Peggy stated that it is being considered.

The proposed budget was presented.   The following assumptions were made in forming the 2007  budget proposal;

            - 5% increase in sales – a lot of other stores (Wal-Mart, etc.) are carrying organic  foods

            - 31% realized margin

             - no significant increase in sales by credit/debit cards

            -  all accounts to be paid on delivery or terms

             - no dividend income from Frontier

            - $20.00 annual membership fee and no change in number of members

            - no significant staffing increases

            - increase in wages due to cost of living adjustments and projected minimum wage increase.

            - increase in utility bill due to higher energy cost

            - closure of Coop for 10 days for reset.

            - purchase of new equipment for reset

            - increased depreciation expense due to same new equipment

            - nominal bank financing (if any) for reset costs

Kathy S. moved to approve this proposal  .  Ann M. seconded.  Motion approved.  This budget will be presented at the GMM for membership approval.

Discussion;

 The question was raised regarding the feasibility of having a greenhouse at Duck Soup to grow herbs?

 Cynthia N.  has agreed to speak for Ruth at the GMM  regarding her willingness to serve on the board for another term.

The next meeting will be December 18^th

A motion to adjourn was made by Tania N. and seconded by Kathy S; The meeting adjourned

submitted by M. Helen Polensky