GMAR



GREATER MILWAUKEE ASSOCIATION OF REALTORS?BOARD OF DIRECTORS MEETING MINUTESThursday, January 16, 2020 ? 12:00 PMGMAR HeadquartersCall to OrderChairman Kel Svoboda called the GMAR Directors meeting to order at 12:00 PM with a quorum present for the transaction of business.Present: Kel Svoboda, Chair; Amy Curler, Past-Chair; Courtney Stefaniak, Chair-Elect; Kim Curtis, Secretary/Treasurer; Kathy Martello, Joe Horning, Ted Dentice, Arthur Mays, Roger Rushman, Jeremy Rynders, Angela Walters, Mark Kivley, Gary Swittel, Sarah Cole Staff Present: Mike Ruzicka, President; Scott Bush, VP Operations; Marne Stück, GAD; Amanda Falk, Promotions Director; Chris Carrillo, CEO, Metro MLSExcused: Judy HearstGuest(s): Monica Baer, Baer CarlsonConsent AgendaApprove the minutes of the Board of Directors meeting from November 21, 2019.Approve of the 141 new members who have applied to become members of the GMAR and paid the appropriate fees.M/S/C to approve Consent Agenda.2020 Public Relations EffortsMonica Baer lead a discussion on public relations efforts the GMAR will undertake during the year. She asked the directors for their ideas on what they believe will happen in the marketplace that she can take to media outlets.ReportsChairman’s ReportNo report was given in the interest of time.Treasurer’s ReportMike Ruzicka reported on the November 2019 GMAR financials:Statement of Financial Position (Balance Sheet) – Statement 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 was $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 had 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 $1,050,508 in dues was collected. Dues were $796,162 ahead of 2018. The increase in dollars was due to the 2019 dues increase. GMAR had an 88% renewal based on number of members billed. New member budget for 2019 was: 500 REALTORS?, 50 DRs and 20 Affiliates. Through November, actual new members were: 682 REALTORS?, 32 DRs and 15 Affiliates.Promotions: Through November 30, Home and Garden Show income was $911,455 and expenses were $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 were basically all personnel costs, incurring expenditures primarily in Labor and Overhead. The only significant expenses were 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.M/S/C to approve the unaudited Statement of Financial Position (Balance Sheet) and Statement of Activities as of November 30, 2019 and recommend placing on file for audit.Mr. Ruzicka reported on the 2020 GMAR Budget:The GMAR’s two main sources of revenue, accounting for 90% of GMAR revenue, are member dues and the Home & Garden Show (HGS).Membership – The GMAR reduced dues for 2020 from $380, in 2019, to $350. In September 2019, 4,771 members were billed. As of December 31st, 82% (3,927) of those members renewed. Leaving 844 who did not renew. Typically, over the last 3 years the GMAR has averaged 324 renewals in January.If those averages hold true, the Association 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 the 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, $15,000 was budgeted for a Habitat for Humanity sponsorship. We will budget for that again in 2020.Public Policy – No significant change in the Public Policy budget for 2020 is anticipated, although the Association will plan to petition NAR for a few grants to fund various projects.Leadership – The GMAR will continue 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. The GMAR 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). Mr. Ruzicka said there is a lot going on budgetarily which makes him fairly comfortable starting the year out in the red and revising the budget once we have more certainty about our revenue and expenses.M/S/C to approve the 2020 GMAR budget.President’s ReportMike Ruzicka reported the following in addition to his written memorandum to the Board of Directors: GMAR Strategic PlanThe GMAR staff spent a lot 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.Mr. Ruzicka 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. The primary reason 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.The 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.Mr. Ruzicka asked Monica Baer to join the beginning of the Directors meeting to think creatively about news stories we can promote in 2020.The January 9th GMAR newsletter featured an announcement of the Housing Statistics Task Force. Several members emailed asking to be included almost immediately.The task force will examine how we the GMAR better use the housing and REALTOR? statistics that the GMAR, 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 COEThe Directors visited this issue last July, but Mr. Ruzicka wanted to bring it back to the Directors and ask they 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 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.The consensus of the Directors was that the first paragraph be eliminated, so that it reads: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.The GMAR has 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.Mr. Ruzicka asked 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.The Directors decided to honor the Emeritus policy on a local basis. When a member petitions the GMAR for Emeritus status, the GMAR will exempt the member from paying local dues.DepartmentsPromotions2020 Home & Garden ShowTheme: Home Sweet Gnome: Dig Up Inspiration on Projects Big & SmallBooth Sales - 92% sold out (90 of 708 spaces available)Sponsorships confirmed: $40,000 to-dateVIP Tickets now on sale. Deadline for last order is February 26. REALTOR Reception: Wednesday, March 25 - 2:30 pm - 4:00 pm Show Features: Aquatica Theme Display, Gnome Scavenger Hunt, WI-Upper Michigan Florist Association floral arrangements competitionGovernment AffairsMarne Stuck reported:Town of Mukwonago impact fee proposalMPS ReferendumLarge Donor Council – March 21st Bucks game (after GMAR BOD meeting)REALTORS? & Gov’t Day – Feb 5thProfessional Standards Scott Bush reported the following:M/S/C to adopt ethics decision E19-02B as presented.M/S/C to adopt Option (2) from section 45 of the Code of Ethics and Arbitration Manual allowing the association to publish the names of ethics violators. Notice would need to be provided to the GMAR membership 60 days before implementation. The Equal Opportunity Committee will be planning a campaign to promote fair housing.MLSChris Carrillo, MLS CEO, was on hand to discuss:Response from members regarding NAR 8.0 MLS Policy regarding has been goodMorel lawsuit, potential for GMAR and Metro MLS to be subpoenaed Broker Breakfast on February 7th Matt Consalvo will be on had to discuss iBuyers.Old BusinessNoneNew BusinessWelcome Newly Elected DirectorsMr. Svoboda welcomed the directors who were elected in the 2019 GMAR Election: Courtney StefaniakMark KivleyRoger RushmanSarah ColeAdjournThe meeting adjourned at 2:00 PMRespectfully Submitted,Mike RuzickaPresident/CEOReviewed by:________________________________________________Kim CurtisSecretary/Treasurer ................
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