TOM VAUGHT | Sun
Residents arrived at the AMI Community Center
town hall meeting by car, scooter, bike and foot.
ANNA MARIA – About 200 people gathered in the Anna Maria Island Community Center gymnasium Wednesday evening to discuss potential solutions that might help the Center escape the dire financial straits it has sailed into.
During the June 4 town hall meeting, Executive Director Dawn Stiles and board Chairman Scott Rudacille stood before the assembled citizenry and presented a blunt assessment of the Center’s operations.
“We are at a crossroads and we have to make some tough decisions about what’s going to happen to this place,” Rudacille said.
He said the Center had about $60,000 in remaining cash assets. Earlier that day, Stiles said operating expenses range from $80,000 to $90,000 per month. Her research indicates the Center operated at a surplus from 2000 to 2007 and the losses began in 2008.
Approximately $1.1 million is owed on the facility, completed in 2007 at a cost of roughly $4.5 million. The monthly mortgage payment is $8,667.
The community speaks
Many who spoke Wednesday night said the Center was top heavy and needed to get costs under control.
Stiles received some criticism for her first-year performance, and Darrren Horesh questioned the board’s decision to hire an out of state resident to succeed longtime director Peirrette Kelly.
Stiles was also praised for accepting the job last year despite the looming financial challenges.
The board was criticized for allowing the financial situation to reach a state of crisis, and it was suggested that an influx of retirees and older board members would help offset demands placed on younger board members, who are still working and raising families.
Rudacille said the crisis was triggered in part by an unexpected spike in construction costs, followed by a recession. This year’s Island Affaire fundraiser fell far short of expectations, and it was suggested the Center is being impacted by the Island’s demographic shift from residents to visitors.
Business consultant Beth Skidmore offered some free advice: “The real problem is not the mortgage; the problem is your programs,” she said, noting that non-profit organizations rely on their programs to help cover costs.
“You can’t take those kind of losses,” she said of the $400,000 in program scholarships provided this year and $172,000 the previous year.
Former board treasurer Randy Langley said scholarships climbed from 68 to 250 during his time on the board, and one of the reasons he stepped down last year was because it angered him to see parents taking advantage of free programs while driving luxury automobiles.
Stiles said greater proof of income and need requirements have been put in place.
One audience member said too much talk focused on donors and scholarships and not enough on middle class families that live on the Island and pay for recreational programs.
Jennifer Cascardo said, “Your social media is dismal.”
She pleaded for an upgraded website and suggested an Island-wide point of sale fundraiser.
Holmes Beach Commissioner David Zaccagnino produced a $10,000 check from an unnamed donor and encouraged the community to continue supporting the center during the financial and philosophical restructuring.
Rudacille said $500,000 to $700,000 would sustain the center for the next two or three years, but former board Chairman Greg Ross suggested the focus be narrowed to $250,000 to $350,000 in order to survive the next few months.
The after effect
Thursday morning, Stiles and the board created an action plan based on what they heard.
“The board members all committed their own financial resources and voted on several items that will have an immediate impact on cash flow,” Stiles said in a Friday afternoon press release.
The board directed Stiles to cut operating costs by $50,000 to $100,000 in the coming fiscal year and to discontinue mortgage payments while refinancing options are explored. She was also told to access any funds available in an existing endowment trust.
Further evaluation will be made of the programs offered, the population served and how the Center is used. The to-do list includes increased revenues, decreased costs and an examination of staffing needs that may result in cutbacks and a greater reliance on volunteers.
Stiles said the meeting did result in a “generous financial challenge” provided by a donor closely affiliated with the Center who will match up to $50,000 in new donations.
“This is an opportunity to double your contribution to the Center at a time of desperate need,” Stiles said.
To donate, volunteer, or assist, contact Stiles at 941-778-1908, ext. 9201.