GMAR Board Of Directors - Greater Milwaukee Association of ...



GMAR Board Of DirectorsThursday, January 16, 2020 ? 12:00 PMMeeting AgendaWelcome & IntroductionsConsent AgendaMonica Baer, Baer CarlsonP 3Approval ReportsChairman Treasurer November Financials *2020 BudgetPresident Departments Government Affairs Professional Standards MLS P 14P 17P 18InformationApprovalApprovalInformation InformationApprovalInformation5 Min15 Min15 Min10 Min15 Min15 MinOld Business NoneNew Business Welcome New Directors:Courtney StefaniakMark KivleyRoger RushmanSarah ColeExecutive Roundtable AppointeeAdjourn 10:30 AMNext Directors Meeting: Thursday, March 19th at Fiserv Forum* Indicates information will be available at the Directors meeting.Updated: DATE \@ "M/d/yyyy h:mm am/pm" 7/6/2020 4:29 PMDirectors’ PoliciesFiduciary DutyAs a GMAR director, you are a fiduciary of GMAR. That means you have a special legal responsibility in connection with the administration, investment, and care of GMAR and its assets. This requires you to make careful, good-faith decisions in the best interest of GMAR. Your decisions must be made independently and free of any undue influence from any person, organization, or brokerage.Conflict of Interest PolicyA member of any GMAR decision-making body has a conflict of interest whenever that member is a principal, partner, or corporate officer of a business providing, or being considered as a provider of, products or services to GMAR.?Members with a conflict of interest must immediately disclose such conflict of interest prior to participating in any discussions or vote of a GMAR decision-making body that pertains to the GMAR. Such members may not participate in any discussions related to the GMAR other than to respond to questions asked of them by other members of the body. A member may not vote on any matter in which the member has a conflict of interest.GMAR Board Of DirectorsConsent AgendaIt is moved, seconded and carried to approve the minutes of the Board of Directors meeting from November 21, 2019.p. 4It is moved, seconded and carried to approve of the 141 new members who have applied to become members of the GMAR and paid the appropriate fees.p. 10GREATER MILWAUKEE ASSOCIATION OF REALTORS?BOARD OF DIRECTORS MEETING MINUTESThursday, November 21, 2019 ? 11:30 AMGMAR HeadquartersCall to Order Chairwoman Jean Dahl, called the meeting to order at 11:30 AM.Approve Agenda – Youth Foundation Board Financial Report to GMAR/Youth Foundation Boards - Jayme Heineck/Scott Hein, IAGNew BusinessVice President’s Report (11:50-11:55)Budget Approval—Youth Foundation Board (11:55-Noon)Meeting Dates 2019: January 24; April 18; July 18; October 17Other BusinessAdjournCall to OrderChairwoman Amy Curler called the GMAR Directors meeting to order at 12:00 PM with a quorum present for the transaction of business.Present: Amy Curler, Chairwoman; Kel Svoboda, Chair-Elect; Courtney Stefaniak, Secretary/Treasurer; Tammy Maddente, Roger Rushman, Kathy Martello, Jeremy Rynders, Angela Walters, Gary Swittel, Kim Curtis, Judy HearstStaff Present: Mike Ruzicka, President; Scott Bush, VP Operations; Marne Stück, GAD; Chris Carrillo, Metro MLSExcused: Vickie Kelsall, Past Chair; Joe Horning, Ted Dentice, Arthur Mays, Tom SykoraGuest(s): Rachel Farina, Kevin Gardner, Mike Pflughoeft, all of Waterstreet CreativeConsent AgendaApprove the minutes of the Board of Directors meeting from July 9, 2019.Approve of the 263 new members who have applied to become members of the GMAR and paid the appropriate fees.Approve of adding ‘Fiduciary Duty’ and ‘Conflict of Interest Policy’ to the regular GMAR Directors agendaM/S/C to approve Consent Agenda.ReportsChairwoman’s ReportChairwoman, Amy Curler, stated that she was very happy to have served as the chairwoman for 2019 and thanked the directors for their support and guidance.Treasurer’s ReportMike Ruzicka reported on the May 2019 GMAR financials:Statement of Financial Position (Balance Sheet) – As of September 30, 2019, GMAR had $1,713,741 in Cash & Investment Balances, up $585,284 compared to last year. Accounts receivable were up $170,069 compared to last year primarily due to earlier entry of next year’s Home and Garden receivables. Prepaid expenses were down $127,595 compared to 2018 due to all inventory being written off.Fixed Assets decreased by $54,389. Total Assets were $3,676,662 which is up $573,369 compared to 2018. On the Liability side, accounts payable were down $411,745 compared to last year due the mortgage being re-done and no longer being considered a short-term loan. Accrued vacation expenses were up $10,966. Overall, Total Liabilities were $1,106,215 which is up $296,386 compared to 2018.GMAR has a Net Gain of $828,884 through September 30, 2019, up $481,594 from last year. Overall, Total Net Assets were $2,570,447; $276,983 higher than the same point in 2018.Statement of ActivitiesMembership: Through September 2019, $1,820,486 was collected in dues. Last year through the end of September, we had collected $1,027,187 in dues so dues are $793,299 ahead of last year at the same time. The increase in dollars is due to the 2019 dues increase. GMAR had an 88% renewal based on number of members billed. 2019 new member budget: 500 REALTORS?, 50 DRs and 20 Affiliates. Through Sept, actual new members: 591 REALTORS?, 25 DRs and 11 Affiliates. Promotions: Through September 30, Home and Garden Show income is $911,900 and expenses are $583,313 for a net income of $328,587. This may change slightly over the next few months but is close to final. Budgeted net income for the Show is $342,235.Expenses related to Public Policy and Professional Standards are basically all personnel costs, incurring expenditures primarily in Labor and Overhead. The only significant expenses are several events and organization sponsorships.Products (Wisconsin Real Estate Supply): The store was closed in September 2018. Some of the store products were for sale on consignment in 2018. All inventory was written off as of December 31, 2018.The Leadership section includes expenditures for meetings, committees, officer expenses, strategic planning, NAR Home Buyer and Seller survey and NAR meetings. The main expenses recorded through September were memberships and expenses for the president, sponsorships, travel expenses for officers, the NAR buyers and sellers survey, and Milwaukee Bucks tickets.The Administrative section includes investment and rental income and expenses for professional fees, salaries, fringe benefits, building, insurance, occupancy, property taxes, general office expenses and depreciation.The bottom line shows Excess Receipts Over Expenditures of $828,884. Last year our net revenue was $347,290 for the same time period. By far the most significant reason for this change was the increase of dues, which will largely be offset throughout the year by monthly payments to SentriLock.M/S/C to approve the unaudited Statement of Financial Position (Balance Sheet) and Statement of Activities as of September 30, 2019 and recommend placing on file for audit.Mr. Ruzicka reported on the 2020 GMAR Preliminary Budget:The 2020 budget was not completed, because there are a few items in the strategic plan to address which will impact the budget. If the budget is completed in the next few weeks, Mr. Ruzicka will send a copy to the full board for its review and ask the Executive Committee to vote on it.In the meantime, here is a rough draft of the key budget components:The GMAR’s two main sources of revenue, accounting for 90% of GMAR revenue, are member dues and the Home & Garden Show (HGS).Membership – In 2019 dues were raised from $207 to $380 (a $173 increase) in order to provide the SentriLock system to all members. Increasing dues, plus the cost of license renewal, drove a few members to decide to leave the business, but not nearly as many as the GMAR had thought might leave. This July, the Board set the dues at $350 for 2020. In September, 4,660 members were billed. As of October 31st, 49% (2,299) of those members renewed. Leaving 2,361 left. Typically, we will have another 25% pay in November, and the remaining members renew in December (13%) and January (8%) or drop out.If those averages hold true, there would be a renewal rate of 95% (4,442). Last year 349 people had their membership terminated in early January, losing access to all services. Promotions – The Home & Garden Show (HGS) lost a day in 2018, because of Easter, but came roaring back in 2019. Our hope is that 2020 will be in the range of 2019 with net revenue of $230,000. The budget will show $10,000 for the WRA Education Partnership. The GMAR receives 50% of the net revenue for in-person CE classes in the Milwaukee area. Revenue from our partnership relationship has been declining for years, because more members take CE online. In 2019, a non-license renewal year, we budgeted $5,000. Professional Standards – For 2019, we budgeted $15,000 for a Habitat for Humanity sponsorship. We will budget for that again in 2020.Public Policy – I don’t anticipate any significant change in the Public Policy budget for 2020.Leadership – We are continuing to purchase an oversample of NAR’s Consumer survey for the MKE market, as well as Milwaukee Bucks’ tickets for the 2019-2020 season.Administration – Most Administrative expenses are flat for 2020. Salaries and benefits are up due to the hiring of a full-time staff member and, of course, health insurance. We will realize revenue from renting the 2nd floor of the REALTOR? Building to Bell Bank, however, I would like to place that revenue to a separate reserve account – rather than have it go into our general fund – to save it for remodeling the 1st. President’s ReportMike Ruzicka reported the following in addition to his written memorandum to the Board of Directors: GMAR Strategic Plan – Attached to the Directors Report email was a draft of our strategic plan. Mr. Ruzicka took the results of the focus groups held last summer, the strategic thinking meeting hosted by Jerry Matthews, and summarized the goals of the members’ input from those meetings in one document.Mr. Ruzicka stated that he thinks it does a good job of collecting the myriad points that were made on several topics during those meetings. The plan focuses on 3 core goals: Code of Ethics, REALTOR? Value, and Public Policy.Additionally, he added 2 areas of strategic focus; Professionalism and Homeownership. These are areas for future growth for the association. The BOD may not currently have specific tasks within either realm, but they are essential to the future existence of the real estate industry and the association. More discussion is needed on the strategy for these two areas. Once the GMAR has accomplished the goals in the first three areas, what’s next? In 3-5 years, what do the BODs see REALTOR? Professionalism as? Homeownership is equally broad. The GMAR can create a campaign to accomplish several goals related to homeownership. Increase the rate of owner-occupied dwellings, increase new construction, etc.There was a great deal of discussion at the strategic planning meeting on conducting a local public relations campaign surrounding NAR’s “That Who We “R” program. Mr. Ruzicka I’ve invited Water Street Creative, the same firm that does PR for the Home & Garden Show, to present a plan they’ve developed to reinforce NAR’s messaging.Rachel Farina, Kevin Gardner, and Mike Pflughoeft, for Waterstreet Creative, presented their plan for conducting a public relations campaign to augment the NAR “That’s Who We “R” cause. The plan was very comprehensive, and Mr. Ruzicka stated that the GMAR would probably have to reduce the cost and prioritize the various vehicles Waterstreet wishes to utilize in the campaign.Housing Statistics Task Force – Mr. Ruzicka state that he would like to host a special task force to examine how we can better use the housing and REALTOR? statistics that the GMAR and MLS accumulate. Currently, the GMAR creates a monthly report based on the housing statistics MLS provides, that is widely referenced in local media. The Association has also created various statistical reports based on the National trends Indicator Report (NTIR) that MLS also produces, as well as from requests by local media.Mr. Ruzicka would like to figure out what additional reports the GMAR could produce that could be used by the media to promote REALTORS? and organized real estate as “go to” resources for housing related information.2019 GMAR Board of Directors Election – The 2019 Board of Directors election ran October 13th – 19th. All eligible REALTOR? members of the Association were emailed ballots on October 13th. Those receiving the most ballots were: Courtney Stefaniak, Mark Kivley, Roger Rushman, and Sarah Cole. Each will be eligible to serve one, three-year term beginning in January 2020 and ending in December 2022.Milwaukee County Sales Tax Referendum – The GMAR Public Policy Task Force voted to support a Milwaukee County sales tax referendum. The proposal, that needs approval by the state legislature, would place a binding referendum in front of residents to raise the Milwaukee County sales tax by one percent in April. Included with the Directors Report email is an MMAC memo on the referendum prepared by Steve Baas, Senior VP, Governmental Affairs & Public Policy, for the MMAC Board of Directors. Passage of the referendum would further the GMAR’s goal of reducing the burden on property owners for paying for local government. However, given the poisoned nature of politics in Madison, passage of necessary enabling legislation is far from likely in the current session.SentriLock Update – The staff has run into a significant problem with SentriLock for a few brokers. Starting in early October a handful of brokers and agents have been unable to access properties, because they were getting an error code on their app or lockbox.The staff has been in constant contact with SentriLock and Amy Curler and Mr. Ruzicka met with their leadership team at the NAR Convention in San Francisco. They stressed that it was important to get this issue resolved because the people affected were very supportive of the GMAR brining SentriLock in, but their championing was waning each day this issue lingered.Mr. Ruzicka reported that SentriLock informed the GMAR that they had found a glitch in the SentriLock app’s software that seemed to have been the culprit. They have made changes to the app and will be rolling it out as soon as possible.Fiduciary Duty & Conflict of Interest – NAR includes a Director’s “Fiduciary Duty” and “Conflict of Interest” policies in their Board of Directors agenda. Mr. Ruzicka thought it would be a good reminder of a board member’s responsibility to the association that they serve and has added it to our Consent Agenda; and will add it to regular meeting agendas under Board of Directors Meeting Procedures.DepartmentsGovernment AffairsMarne Stuck reported:MPS Referendum – MPS is considering going to a referendum on the April 2020 ballot to increase funding for its students. The final figures haven’t been announced yet, but early estimates will cause property taxes to spike. The GMAR Public Policy Task Force is scheduled to meet to discuss this issue in December. Waukesha County Parks Strategic Plan – Waukesha County Dept. of Parks and Land Use will be updating their 3-year Strategic Plan and have asked GMAR to find several REALTORS who have worked with the County to be part of focus groups in January of 2020Professional Standards Scott Bush reported the following:M/S/C to adopt decision E19-22 as presented, pending legal counsel reviewMLSChris Carrillo, MLS CEO, was on hand to discuss:NAR 8.0 MLS Policy regarding “pocket listings”Old BusinessNoneNew BusinessYouth Foundation ElectionThe only contested position was chair of the Education Committee. The GMAR Directors elected Dr. Gail Zieman to fill a one-year term.GMAR 2020 Executive CommitteeKel Svoboda automatically ascends to the chairmanship of the GMAR, and Amy Curler becomes the Past Chair for 2020. An election was held for Chair-Elect and Secretary/Treasurer. Courtney Stefaniak was elected to the Chair-Elect post and Kim Curtis was selected to be the Secretary/Treasurer, by unanimous decision.Farewell Outgoing DirectorsMrs. Curler bid farewell to the outgoing directors:Tammy MaddenteVickie KelsallTom SykoraAdjournThe meeting adjourned at 1:30 PMNew Member Report141 New Members joined Nov 16, 2019 - Jan 8, 2020 for approval (DR's - 12, R's - 128, A's - 1)FIRSTLASTCOMPANYDevinArnoldBadger Realty TeamColeBaltzJason Scott Realty & Management LLCJasmineBarksdalePremier Point Realty LLCErickBarnesPowers Realty Group~ShorewoodNickieBassThe Stefaniak Group LLCTerrellBellColdwell Banker Residential Brokerage~OgdenGlenBlokExit Realty XLErinBodiRealty Executives Integrity~BrookfieldDawnBooksResponse, REALTORSNicoleBorowskiHomestead Realty Inc~MilwaukeeMelladolshaBowersColdwell Banker HomeSale Realty~ CorporateAlainaBreitenfeldtRealty Executives Integrity~NorthshoreMarenaBridgesHPB Realty LLCAshleyBrooksEXP Realty, LLC~WauwatosaPhilipBuetowMilwaukee Executive RealtyJanisBuetowMilwaukee Executive RealtyJenniferBuzzellList 4 Less MLS of WisconsinMichelleCampbellColdwell Banker Residential Brokerage~BRKMaronCarrollCarroll Realty LLCAlexChouKeller Williams Realty~Milw N Shore W BayTerriClaytonColdwell Banker Residential Brokerage~N ShoreCynthiaCofer-GallmanColdwell Banker HomeSale Realty~ CorporateKeithCorbettColdwell Banker HomeSale Realty~FranklinCatherineCorraoKeller Williams Realty~Lake CountryStephenCovaltRE/MAX Realty 100~M FallsLindaDanielsonColdwell Banker EliteAlexEdwardsBoardwalk Realty LLCGenevieveErezFirst Weber Inc~NPWJamesFavataKeller Williams Realty~Lake CountryKarenFlaniganFirst Weber Inc~DLFSarahFlanneryHomestead Realty Inc~MilwaukeeAmandaFleischmanShorewest, REALTORS~GraftonMichaelFordFirst Weber Inc~GreenfieldLisa-MarieFranco-GarciaEXP Realty, LLC~MilwJonathanGalandoEXP Realty, LLC~MKEMelanieGawronskiShorewest, REALTORS~OCMargaretGehlerFirefly Real EstateWilliamGentilGrapevine RealtyBarbaraGewaltHomeowners Concept-MetrostarRashellGladneyRealty DynamicsTinaHammerstadHPB Realty LLCJohnHarderMyFamilyPCPShannonHarriganFirst Weber Inc~MequonKeeoshaHarrisonColdwell Banker Residential Brokerage~N ShoreShelinaHarveyKeller Williams Realty~Milw N Shore W BayKatieHavlikFirst Weber Inc~West BendJohnHaydenHomegate Direct Realty LLCAlyssaHergertJock Team Real Estate LLCJaneHerroOconomowoc RealtyZacharyHicksEXP Realty, LLC~MKEReillyHoffmanKeller Williams Realty Milw SW~New BerlinTracyHoltRE/MAX Realty 100~M FallsShannonHyattFirst Weber Inc~MFLaRhondaJacobsonMilwaukee Cty Dept of Economic DevStephanieJahnEXP Realty, LLC~KenoshaJessicaJaskieRE/MAX Realty 100~M FallsCarmenJockJock Team Real Estate LLCPervisJonesWiley Realty GroupTimothyKaminskiHomestead Realty Inc~MilwaukeeBrendaKeeneKeller Williams Realty Milw SW~GermantownJessicaKeileyBluebell RealtyBrandonKimColdwell Banker Residential Brokerage~MEQBradleyKligoraFirst Weber Inc~DLFJosephKnightHomestead Realty Inc~MilwaukeeLisaKomppaShorewest, REALTORS~MNM FallsJohnKroegerShorewest, REALTORS~N OaklandLisaKrotts ErdmannKeller Williams Realty~Lake CountryMichaelKrukowskiKeller Williams Realty~Milw N Shore W BayRachelLallensackHomeWire RealtyTrevinLarkinFirst Weber Inc~GreenfieldNicoleLeClairRealty Executives Integrity~BrookfieldPeterLinkEXP Realty, LLC~MKEWendyLundFirst Weber Inc~DLFMichaelMangoldDB Realty LLCKearaMartinShorewest, REALTORS~New BerlinRobertMcMurphySteel Horse, REALTOR LLCCathyMegnaParkway RealtyElizabethMitsckeKeller Williams Realty~Milw N Shore W BayLisaMohindrooPremier Point Realty LLCRoyceNashShorewest, REALTORS~New BerlinZacharyNelsonFirst Weber Inc~GreenfieldAshleyNguyenCherry Home Realty LLCTashaOlsonRealty Executives Elite~Hales CornersMarkOmanFirst Weber Inc~DLFFrancescaOrlandoRealty Executives Integrity~BrookfieldRoyOrnelasVERA Residential Real Estate LLCSusanPattiRealty Executives ConnectJosiahPennimanKeller Williams Realty~Milw N Shore W BayAmyPetrusTim O'Brien Homes IncDeborahRamthunKeller Williams Fox CitiesMyeshaRandolphVERA Residential Real Estate LLCAndrewReichlBerkshire Hathaway HomeServices Metro RealtyPeterReinertKeller Williams Realty~Milw N Shore W BayMariaReisHanson & Co Real EstateHaleyReynoldsRealty Executives Integrity~HartlandSandiRodePremier Point Realty LLCStephanieRogersShorewest, REALTORS~OCStephanieRossBadger Realty TeamCarlosRothRealty Among Friends LLCKatherineRowlandThe Real Estate Center, A Wisconsin LLCTaraRuppeltExit Realty XLThomasSandersShorewest, REALTORS~DowntownJenniferSchmitzFirst Weber Inc~WKSamanthaSchneiderCorcoran Realty & Co.ShelbySchneidervinRE/MAX InsightAnnaSeveranceColdwell Banker Resid Brokerage~West BendTyeshaShareefEXP Realty, LLC~WauwatosaBrianSheehanRE/MAX Realty 100~BrookfieldSamuelShepherdFirst Weber Inc~DLFDanielShoversMilwaukee Executive RealtyTinaSmartFirst Weber Inc~GreenfieldMarySmithFirefly Real EstateMallorySmithFirefly Real EstateSarahSmithSmart Asset Realty IncTeralSondrupKeller Williams Realty Milw SW~GermantownAntoinetteSpencerEXP Realty, LLC~MKEAnaSt. PeterPremier Point Realty LLCCeleStepkeNorth Shore Homes IncPatriciaSternhagen MotonKeller Williams Realty Milw SW~New BerlinVictoriaStewartEXP Realty, LLC~MKEMatthewStongKeller Williams Realty~Milw N Shore W BayKendrickTaylorKeller Williams Realty~Milw N Shore W BaySeanTehanLake Country Home Realty LLCMichelleThompsonStructure Properties LLCCharlesTindalTim O'Brien Homes IncJoseTorres FelicianoNextHome My WayPaulVekslerColdwell Banker Residential Brokerage~MEQTimVertzHomegate Direct Realty LLCJillWeinkBenefit RealtyCandaceWenigCentury 21 Affiliated~WauwatosaEliseWerryMyPro Realty LLCSheenaWhiteThe Coterie Realty GroupTravisWileyWiley Realty GroupMatthewWinchesterRE/MAX Service First LLCAlexanderWisnefskeLand & Legacy Group LLCDanaWitkowskiBerkshire Hathaway HomeServices Metro RealtyAlexanderWittePremier Point Realty LLCJonathanWolfExit Realty XLDonnaWollerTim O'Brien Homes IncDavidWordenSmart Asset Realty IncTriciaZamecnikHomeWire Realty LINK Excel.Sheet.12 "C:\\Users\\mike\\AppData\\Local\\Microsoft\\Windows\\INetCache\\Content.Outlook\\13T1P56K\\New Member Report_Nov19BOD Meeting.xlsx" "Sheet1!R1C1:R133C6" \a \f 4 \h \* MERGEFORMAT Membership categories: DR = Designated REALTOR?, R = REALTOR?, RN = REALTOR? No National; A = Affiliate, AC = Affiliate Corporate, LAC = Local Affiliate Corporate, LACC = Local Affiliate Corporate Contact*Includes former GMAR members who had to rejoin the GMAR as new members.November 2019 Financial NotesStatement of Financial PositionAs of November 30, 2019, GMAR had $2,538,124 in Cash & Investment Balances, up $242,927 compared to last year. Accounts receivable were up $75,278 compared to last year primarily due to earlier entry of next year’s Home and Garden receivables. Prepaid expenses were down $91,151 compared to 2018 due to all inventory being written off.Fixed Assets decreased by $58,327. Total Assets were $4,583,041 which is up $168,727 compared to 2018. On the Liability side, accounts payable were down $439,385 compared to last year due the mortgage being re-done and no longer being considered a short-term loan. Unearned income is $33,713 lower. Accrued vacation expenses were up $10,966. Overall, Total Liabilities were $2,348,942 which is down $58,237 compared to 2018.GMAR has a Net Gain of $487,536 through November 30, 2019, up $426,575 from last year. Overall, Total Net Assets were $2,234,099; $226,964 higher than the same point in 2018.Statement of ActivitiesMembership: Through November 2019, $1,846,671 was collected in dues. Last year through the end of November we had collected $1,050,508 in dues, so dues are $796,162 ahead of last year at the same time. The increase in dollars is due to the 2019 dues increase. GMAR had an 88% renewal based on number of members billed. New member budget for 2019: 500 REALTORS?, 50 DRs and 20 Affiliates. Through November, actual new members: 682 REALTORS?, 32 DRs and 15 Affiliates. Promotions: Through November 30, Home and Garden Show income is $911,455 and expenses are $583,513 for a net income of $327,942. These are likely final numbers, though a few small changes are always possible. Budgeted net income for the Show is $342,235.Expenses related to Public Policy and Professional Standards are basically all personnel costs, incurring expenditures primarily in Labor and Overhead. The only significant expenses are several events and organization sponsorships.The Leadership section includes expenditures for meetings, committees, officer expenses, strategic planning, NAR Home Buyer and Seller survey and NAR meetings. The main expenses recorded through November were memberships and expenses for the president, sponsorships, travel expenses for officers, the NAR buyers and sellers survey, and Milwaukee Bucks tickets.The Administrative section includes investment and rental income and expenses for professional fees, salaries, fringe benefits, building, insurance, occupancy, property taxes, general office expenses and depreciation.The bottom line shows Excess Receipts Over Expenditures of $487,536. Last year our net revenue was $60,960 for the same time period. By far the most significant reason for this change was the increase of dues, which will largely be offset throughout the year by monthly payments to SentriLock.Statement of Financial Position (Balance Sheet)-273685269875-207010269240Statement of Activities2020 GMAR Budget NotesThe GMAR’s two main sources of revenue, accounting for 90% of GMAR revenue, are member dues and the Home & Garden Show (HGS).Membership – We reduced dues for 2020 from $380, in 2019, to $350. In September 2019, we billed 4,771 members. As of December 31st, 82% (3,927) of those members renewed. Leaving 844 who did not renew. Typically, over the last 3 years we’ve averaged 324 renewals in January.If those averages hold true, we will have a renewal rate of 89% (4,251). Last year 548 people had their membership terminated in early January, losing access to all services. On the expenditure side of Membership is our Public Awareness Campaign. We have budgeted a total of $75,000 for 2020. SentriLock is a relatively new budget item for us and in 2020 we are budgeting $450,000, compared to $432,600 in 2019. Our monthly average expense in 2019 was $42,682.Promotions – The Home & Garden Show (HGS) lost a day in 2018, because of Easter, but came roaring back in 2019. Our hope is that 2020 will be in the range of 2019 with net revenue of $230,000. The budget will show $5,000 for the WRA Education Partnership. The GMAR receives 50% of the net revenue for in-person CE classes in the Milwaukee area. Revenue from our partnership relationship has been declining for years, because more members take CE online. Professional Standards – For 2019, we budgeted $15,000 for a Habitat for Humanity sponsorship. We will budget for that again in 2020.Public Policy – We don’t anticipate any significant change in the Public Policy budget for 2020, although we do plan to petition NAR for a few grants to fund various projects.Leadership – We are continuing to purchase an oversample of NAR’s Consumer survey for the MKE market, as well as Milwaukee Bucks’ tickets for the 2020-2021 season. Leadership travel expenses (i.e. NAR, Inman, Real Trends, etc.) are up from 2019 due to more events we plan to attend.Administration – Administrative expenses are up for 2020. Salaries and benefits are up due to the hiring two full-time staff members compared to the 2019 budget, and, of course, health insurance. We will realize revenue from renting the 2nd floor of the REALTOR? Building from Bell Bank.The bottom line shows a net number of ($65,000). MEMORANDUMTo:GMAR Board of DirectorsFrom:Mike Ruziicka, PresidentRe:January President’s Report2020 GMAR BudgetPlease review the 2020 Budget Notes above. I will have a copy of the final budget at the Directors meeting after reviewing it with Stephanie Larson, from WRA. You will see the bottom line is a negative net number. However, there is a lot going on budgetarily that makes me fairly comfortable starting the year out in the red and revising the budget once we have more certainty about our revenue and expenses.When we set the budget for membership income and the HGS, we don’t figure out the revenue that we need to cover our expenses. I look at our anticipated expenses, put them in the budget, then ask those responsible for estimating our membership and HGS revenue for their numbers. We always budget expenses liberally and income conservatively. Luckily, with a red-hot economy we are seeing new members come in at a very healthy pace. We budgeted 500 new members for 2020, the same as in 2019. In 2019 we ended up with 680 new members. The strong economy is also showing up in HGS booth sales. Amanda Falk and Karen Brienzo are looking at ways to fit more booths into the State Fair Expo Center, because demand is so high right now (booth sales account for 80% of HGS revenue).With 90% of GMAR revenue coming from these two revenue sources, I feel confident that we will see more revenue than budgeted for. Also, there is precedent for starting the year out in the red, we have done it several times in the early 20-teen years.We will have to watch our expenses, however, but that is not really anything new. GMAR Strategic PlanWe have spent a lot of our time in recent weeks working on the public awareness campaign component of the strategic plan, focusing on how to leverage the “That’s Who We R” drive.I have asked Waterstreet Creative to come up with a $50,000 effort that focuses on younger buyers, primarily utilizing social media (which is where younger buyers are) and possibly some radio and/or outdoor advertising. My primary reasoning for pushing our message on social media is that during the height of the selling season, there will be a lot of competition for bandwidth due to the spring election and upcoming DNC event.Our public awareness campaign is going to be a multi-year effort, so starting out with a smaller campaign, that is focused on people actually searching for housing is not a bad way to start.Another component of the public awareness campaign is gaining TV/radio/newspaper attention from unique housing stories and statistics.As we did last year, I have asked Monica Baer to join us at the beginning of our Directors meeting to think creatively about news stories we can promote in 2020.Also, The January 9th GMAR newsletter featured an announcement of the Housing Statistics Task Force. I was encouraged to get several emails from members asking to be included almost immediately.The task force will examine how we can better use the housing and REALTOR? statistics that we, and MLS, accumulate to promote the “That’s Who We R” campaign and assure organized is the “go to” resources for housing related information.Mandating SentriLock use vs. The COEWe visited this issue last July, but I want to bring it back to the Board and ask that we set a policy on giving out one-day codes.Some members who are not in support of the SentriLock program have requested one-day codes from listing brokers, which is time consuming. When the listing brokers deny a request for one-day codes the ethical standard of requiring members to use the SentriLock system and not giving out one-day codes has come into question. Here is what the GMAR staff has been telling members:The GMAR encourages listing brokers to give out one-day codes to other GMAR members, REALTORS? from other associations and other real estate professionals. Arguably, that may be in the best interest of the seller.However, if the listing broker, following the directive of the seller, does not want to give out a one-day code to another GMAR member unless they are “credentialed,” they have a right to do so. The GMAR does not consider “credentialing” to be an unreasonable process and not a barrier to gain access to a listed property.If the listing broker will not provide a one-day code and the showing broker is not a GMAR member, but still a REALTOR? (such as a member of the commercial association, CARW), the GMAR will allow that REALTOR? to pay the SentriLock fee without becoming a member of the GMAR.Emeritus PolicyYou may know that those who have been REALTORS? for 40 years, or longer, may be eligible for “Emeritus” status, which has meant they are exempt from paying dues. The emeritus policy is an NAR creation that most state and local associations, including the GMAR, also adopted.A few years ago, NAR changed the eligibility requirements so that Emeritus members had to belong for 40 years and have served on an NAR committee at some point. A major reason for the change to NAR’s Emeritus policy was that so many Baby Boomers were reaching 40 years of membership, NAR was losing hundreds of thousands of dues dollars.We have had members who are not eligible for NAR Emeritus status (required to continue paying NAR dues), ask if they can be exempt from paying GMAR dues. WRA has adopted NAR’s policy.I would like to ask that the GMAR adopt NAR’s (and WRA’s) policy that a member must have 40 years of membership and have served on an NAR committee at some point. Thus, the GMAR would not have its own emeritus policy, but would follow NAR’s policy and exempt a member from paying GMAR dues, if they are eligible for NAR’s exemption.Recurring Status ReportsGMAR Member InvolvementP 21MLS MembershipP 22GMAR Organizational ChartP 232020 GMAR Directors RosterP 242020 GMAR CalendarP 25GMAR Strategic PlanP 27GMAR Member Involvement-340360235585MLS Membership Statistics-1104265143129000GMAR Organizational Chart-110871016573502020 GMAR Board of DirectorsTerms expiring12/31/2020Terms expiring12/31/2021Terms expiring12/31/2022Kathy MartelloRE/MAX Realty 10010303 W Oklahoma AvenueMilwaukee, WI 53227O?262.255.9200 M 414.550.3617kmartello@ NRDS: 090031322 (3yr term from Exec Roundtable)Joe HorningShorewest, Realtors17450 W. North Ave.Brookfield, WI??53045-4337O?262.827.4200 jhorning@NRDS: 090096259 (3yr term from Exec Roundtable)Maureen StalléKeller Williams205 E Silver Spring DriveWhitefish Bay, WI 53217O 414.967.7900 M 414.403.1624mstalle@ NRDS: (3yr term from Exec Roundtable)Amy Curler, Past ChairFirst Weber Inc (2nd Term)1720 Clarence CourtWest Bend, WI 53095-8543O 262.335.6280 M 414.550.6849acurler@ NRDS: 090019647Ted DenticeShorewest, Realtors (2nd Term)17450 W. North Ave.Brookfield, WI??53045-4337P?262.827.4200 M 262.289.6230tdentice@ NRDS: 090017283Courtney Stefaniak, Chair-ElectThe Stefaniak Group (2nd Term)2234 S 108th StMilwaukee, WI 53227-1108M 262.271-5089castefaniak@ NRDS: 090113039 Arthur MaysRealty Among Friends (2nd Term) 8301 W Lisbon AveMilwaukee, WI 53222-3859O 414.444.2696 M 414.975.7796amays@ NRDS: 090051977Kim Curtis, Secretary/TreasurerShorewest, Realtors (1st Term)2419 W. Washington St.West Bend, WI 53095M 262.707.2363kcurtis@ NRDS: 090060874Roger RushmanFirst Weber Inc. (2nd Term)2750 Golf Rd, Suite ADelafield, WI 53018-2063O 262.646.6800 M 414.333.5313 rrushman@ NRDS: 090015540Jeremy Rynders (1st Term)Keller Williams Realty2665 S Moorland Rd, Suite 104New Berlin, WI 53151M 414.795.6675jrynders@ NRDS: 090118704Angela Walters (1st Term)EXP Realty, LLC~MKE342 N Water St Ste 600Milwaukee, WI 53202-5715M 414.235.1152angela.walters@NRDS: 090094348 Mark Kivley (1st Term)RE/MAX Lakeside 1200 E Capitol Dr Ste 200Milwaukee, WI 53211M 414.406.1840 kivleyteam@ NRDS: 090020696Gary Swittel (1st Term) RE/MAX Realty 10010303 W Oklahoma AvenueMilwaukee, WI 53227M 414.232.0930gary@ NRDS: 090031694Judy Hearst (1st Term)Coldwell Banker Residential Brkrge11303 N Port Washington RdMequon, WI 53092-3411M 414.702.2064judy@ NRDS: 090045822 Sarah Cole (1st Term) Landmark Realty 3800 S 97th StMilwaukee, WI 53228 M 414.510.4903colesarahb@ NRDS: 090128495Kel Svoboda, ChairmanFirst Weber Inc. (2nd Term)4650 N Port Washington RdGlendale, WI 53212-1077O 414.962-3000 M 414.213.9014kel@ NRDS: 090098433Mike – 885500353Marne – 090082562Scott – 8855001712020 GMAR Meetings & Events CalendarUpdate: DATE \@ "MMMM d, yyyy" July 6, 2020January1GMAR Fiscal Year begins8GMAR Orientation 9GMAR Executive Committee Meeting/Conference Call 16GMAR Board of Directors Meeting – 12:00 Noon, GMAR Headquarters 23-24WRA Board of Directors Meeting – Madison, WI24GMAR Youth Foundation Board Meeting – GMAR28-31Inman Connect New York 2020February5REALTOR? & Government Day – Madison, WI 6MLS BOD Meeting – Crowne Plaza Hotel, Wauwatosa10GMAR Audit – Wegner & Assoc.12 GMAR Orientation 20Kettle Moraine Council Mardi Gras – The Hitchin’ Post, West BendMarch4WomenStrong GMAR Women’s Conference – Italian Community Center 11GMAR Orientation 12GMAR Executive Committee Meeting/Conference Call 19GMAR Board of Directors Meeting – 3:00 PM, Fiserv Forum – Followed by Bucks game20-2996th REALTORS? Home & Garden Show – Wisconsin Expo Ctr, West Allis, WI23Marquette Univ & GMAR/WRA Economic Summit – Italian Community Center April8GMAR Orientation 16GMAR Youth Foundation Board Meeting – GMAR29Brewers Bash – Miller Park, Milwaukee, WI29-5/1Real Trends: Gathering of Eagles, Denver, CO30GMAR Executive Committee Meeting/Conference Call May6GMAR Orientation 7MLS BOD Meeting – TBA 7GMAR Board of Directors Meeting – 12:00 Noon, GMAR Headquarters8WRA Board of Directors Meeting – WRA Headquarters, Madison, WI8Deadline for 2020 NAR Committee Applications11-16NAR REALTORS? Legislative Meetings – Washington, D.C.June3GMAR Orientation 6Downtown Diggs11-12WRA AE Conference – Arbor Vitae, WI30GMAR Executive Committee Meeting/Conference Call July1GMAR BOD Candidate Applications available to members7GMAR Board of Directors Mtg – Ironwood Golf Course7GMAR Summer Golf Outing – Ironwood Golf Course15GMAR Orientation 16GMAR Youth Foundation Board Meeting – GMAR28-31Inman Connect Las Vegas 2020August5GMAR Orientation 6-7WRA BOD Meeting – .17-18NAR Leadership Summit – Chicago, IL (Chair-Elect)TBAGMAR Nominating Committee Meeting – GMAR Headquarters31Last day for GMAR BOD Candidates to submit ApplicationsSeptember1Nominating Committee notification of BOD Candidates to membership2GMAR Orientation 3MLS BOD Meeting – TBA 32019 WRA Leadership Summit – WRA TBAKettle Moraine Council Wine Tasting Event14-15WRA Convention – Wisconsin Dells, WI 10GMAR Executive Committee Meeting/Conference Call 17GMAR Board of Directors Meeting – 12:00 Noon, GMAR Headquarters23-25CMLS Annual Conference 30GMAR Board of Directors Write-In Candidate DeadlineOctober7GMAR Orientation11-17GMAR Board of Directors e-Election15GMAR Youth Foundation Board Meeting 29GMAR Executive Committee Meeting/Conference Call November 4GMAR Orientation 5GMAR Youth Foundation Annual Meeting – 11:30 AM, GMAR Headquarters5GMAR Board of Directors Meeting – 12:00 Noon, GMAR Headquarters11-16NAR Convention – New Orleans, LA December2GMAR Orientation2 or 3Chairwoman’s Holiday Party & GMAR Annual Mtg TBAWRA Management Conference – TBA31GMAR Fiscal Year endscentercenter00centercentercentercenter00centercenter00centercenter00centercenter00centercenter00centercenter00 ................
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