Just want to
take a moment and tell the full story of our debt.
The final
piece of the debt elimination was a conservation easement on 450 acres at Storer
Scout Reservation. All those acres create a wilderness buffer for the 250
internal acres. The 250 internal acres (Adams Pond Camp and Wild Goose Camp)
are unencumbered and restriction free, these 250 acres contain all the shore
line around Adams pond and most of the shore line at Wild Goose. Scouts can
still hike, mountain bike, horseback ride and otherwise participate in outdoor
pursuits within the conservation area. The council can still log within the
conservation area.
Previous
aspects of the debt elimination include the conservation of Parker Mountain,
the sale of unrestricted investments, the sale of 30 acres at camp Massasoit
and the sale of the Jamaica Plain office. As you can see, the council made
every effort to minimize impact to youth in the decisions around debt
elimination. The council still has the controlling interest in all four
original properties.
The
long-term debt was originally comprised of $5.3 million. The $8 million number
includes interest and budget shortfalls caused by the extreme debt over the ten
year period.
The debt
certainly hand cuffed council operations over the past decade in several ways.
The two most notable are staffing and cash flow. The middle years 09 and 10
were clearly the tightest (and the smallest). The 22,000 square-foot Egan
Center was reduced to 7,000 square-foot of usable space, and the full-time
staff was reduced to six people for about half a year.
The cash
flow concerns remained a problem throughout the debt period. While the council
has brought in more money then it spent on operating annual basis for the past five
years that does not include the capital fund. The capital fund is generally viewed
through a longer-term lens, during that 10 year period the capital fund would
typically endure significant debt in between periods of large cash deposits.
The recent conservation easement is a perfect example it took 18 months from
start to finish and brought in $619,000 during those 18 months the operating cash
was burdened to generate the money required to pay the mortgage, the end result
is the $619,000 goes to the principal and pays back some of the cash requirements
extended over the past 18 months.
Additionally,
projects like logging at Storer or annual surpluses would go immediately to
debt reduction - so those occasional cash infusions could never be used to
"catch our breath" or invest in the future.
On the other
hand, we did dramatically increase the money generated in non-debt capital
funds over the past few years. And we have worked hard to ensure that all the
funds raised for camp improvements have been spent in camp improvements - not
debt elimination. That's why both primary camps are looking better each day.
So, every
NEW dollar we raised in the past few years weather operating or capital went to
program delivery, administrative improvements, camp enhancements, marketing and
communication or some other annual benefit to Scouting. And we challenged
ourselves to pay for the debt elimination without losing the controlling
interest in the camps. It will take another year or two for the cash flow to
actually "self correct" but it will improve every day. (As an example:
for the first time the 2015 logging operation at Storer will be able to be used
toward camp improvements).
So the mortgage
is gone! We'll post a year-end Financial Statement when it's complete. And any
short term loans or revolving credit concerns are down to the lowest amount
since 2011. And the operating budget - the amount raised and spent in support
of Scouting each year is up over $2.5 million for the third year in a row. (It
was down to $1.8 million during our thinnest years)
Finally it's
our hope and belief that Scouts can feel this difference - none of this matters
until it makes a positive impact for a Scout. While Scouts and families don't
see the budget, and likely don't care, the differences between then and now begin
with someone to answer the phone, camp improvements, higher visibility, and program!
Program! And more program offerings! I'm sure anyone who was an active leader
during the thinnest years could apply the council to the "smell test"
and agree things are clearly looking much better. And, one thing we are very
proud of - the unseen stuff is also greatly improved. The unseen stuff is the
infrastructure at the properties (these improvements are much more that a
"pretty coat of paint") the governance and the business practices are
all stronger and getting better right alongside the visual improvements.
Whew! That's
the whole story of debt elimination. The debt is gone but the job is far from
done - we will continue to improve each day. For everyone who was with Scouting
throughout these years THANKS FOR YOUR SUPPORT! Everyone who has joined us
recently .... You are joining a rapidly growing and great youth development
program - WELCOME!
