TERA Financials FY06 in Review

Per TERA's by-laws, the Board is required to make available a financial statement of the year's activity to all TERA members. The following information satisfies this requirement.

Bank Account Balances as of Fiscal Year End June 30, 2006.

TERA Operating Accounts

Operating Contingency Savings Account           $30, 563.73

Operating Checking Account                                   $726.31

Total Operating Fund Accounts                     $ 31,290.04

TERA Restricted Bank Accounts

Community Improvement Fund                         $18,797.84

Beautification Fund                                           $15,267.08

Total Restricted Bank Accounts                   $34,064.92

*The Operating Contingency Savings funds any operating deficits.

*The Operating Checking Account funds TERA's operational activities such as Administration, Insurance, Public Meetings, Newsletter, e.Letter, Membership Drives, Preservation, Planning, and Development Committee, Eclectic Eagle Rock Home Tour, and other critical activities.

* The Community Improvement Fund is the balance of $30,000 in funds graciously donated by Nextel in 2003 to be administered by TERA's Board for community improvement projects. Eagle Rock Chamber of Commerce; Eagle Rock Community Preservation, and Revitalization; and TERA have as of June 30, 2006, committed $11,121.14 of these funds to raise Eagle Rock's Flag, flying by the Rusty Pelican and produce replica flags available for purchase by the community. The TERA Board also allocated $5,000 to the TERA Eagle Rockdale Community Garden, of which $1,840 was spent on costs for the garden's water meter. As of 6/30/2006, over $14,000 remains to be allocated to community projects.

*The Beautification Fund was granted by Council District 14 in 2003, dedicated to fund the realization of an Eagle Rock Monument. TERA will administer these funds for the Monument.

Income/Expense Summary

Over the course of FY ending June 30, 2006, TERA's income was $25,449.43 while total expenses were $23,518.27. This compares to FY ending June 30, 2005 when income was $38,879.79 and expenses were $31,009.71. The principal reasons for the decline in income were 1) FY2006 was a more normalized membership cycle after changes in membership cycle and membership levels resulted in a one time much higher than normal membership dues level  in FY2005, 2) FY2007 membership drive was started later than normal, causing about $3000 of membership dues that would normally be deposited in FY2006 to move to FY2007, 3) Eclectic Eagle Rock Home Tour 2005 Income had declined 5.6% to $12,910.14 from 2004's tour, and 4) TERA published one newsletter in FY2006 instead of its typical four quarterly newsletters which caused advertising income to decline. FY2006 also saw new sources of income (Garden Income) due to the start of TERA's Eagle Rockdale Community Garden and Art Park and revenues from Eagle Rock replica flag sales.   

The principal reasons for the decline in expenses was 1) one-time Eagle Rock Flag expenses in FY2005 not incurred in FY2006, 2) a decline in insurance expenses, and 3) TERA published one newsletter in FY2006 instead of its typical four quarterly newsletters which caused expenses to decrease significantly (Newsletter production and mailing costs are one of TERA's biggest expenses).

While overall expenses decreased in FY2006 versus FY2005, some expenses increased. Eclectic Eagle Rock Home Tour expenses ($7785) were 80% higher than in FY2005 principally due to addition of Scenes from Eagle Rock Art Exhibit and higher promotional expenses. FY2006 also saw new expenses (Garden Expense) due to the opening of TERA's Eagle Rockdale Community Garden in FY2006. Traditionally, a portion of TERA's Eclectic Eagle Rock Home Tour proceeds are donated to the community. This year, TERA donated $500 out of its operating funds to the Center For The Arts, for this fall's program at the Sylvan Amphitheater. TERA also traditionally allocates a portion to local non-profit community groups our of its operating funds. In FY 2006, TERA donated $425 in total to Business for Law Enforcement Northeast Division (BLEND), Habitat for Humanity for Hurricane Katrina relief, Greater Los Angeles Association for Deafness (GLAD), and the Eagle Rock Chamber of Commerce. TERA incurred new administrative expenses with its one-time purchase of a laptop to make its data portable for public meetings and other events, and it began renting Public Storage space to safeguard TERA's archives and materials (TERA does not have an office).

On the Eagle Rock Flag Program, TERA was able to sell 96 replica flags, raising $168 that will be used to fund maintenance of the big Eagle Rock Flag.

One Final Note

In conclusion, TERA's financial report would be remiss if it did not highlight the precious non-financial support from the community. Local Eagle Rock restaurants, professionals, and shops make generous in-kind donations to sponsor our public meetings, newsletters, Eclectic Eagle Rock Home Tour, etc. A generous group of volunteers including our Board members, donate their time, skills, energy and positive attitude pro-bono. This non-financial support allows TERA to reduce its operating expenses significantly.

If you have any questions or are a TERA member with financial experience and would like to join our finance committee, please email Pauline Mauro, Treasurer, at treasurer@tera90041.org or call 323-259-TERA. Special thanks to TERA's finance committee: Teri Aranguren, Kathleen Long, Maria Nazario, Frank Parello, and Liz Wagner.