Report prepared by:
Nate Charette, Treasurer
Email: [email protected]

Website: applevalleylittleleague.com

INTRODUCTION                                          

Overview

Apple Valley Little League (The League, AVLL) has been an integral part of the Apple Valley Community since 1957. We currently have a Board of Directors that consists of 17 volunteers who have dedicated their time to ensure that the league operates in accordance with Little League International rules and regulations. This report was prepared by Nate Charette, Treasurer for Apple Valley Little League and recaps the period from 10/01/2022-9/30/2023.

Financial Highlights

Prior to 2021, The League was deficient regarding attention to operational costs, accounting of league finances, and implementing processes and procedures, to ensure continuity of The League. Since 2021, with the installment of new Board Members, The League has begun to regain its financial footing and made changes necessary to improve the stability of The League. This includes raising registration fees, modifying snack prices, tracking, and ensuring costs to operate and maintain The League are reasonable.

Report Highlights

This report will breakdown The League’s finances to include cost per player, operational costs, maintenance costs, income, and other costs associated with keeping The League operational as well as some items that caused The League financial difficulties, such as past due field lighting bills, theft, vandalism, and a previous failure to keep registration fees in line with inflationary conditions.

Looking Ahead

The League is in a better financial position than it was a year ago. With the increase of registration fees for the first time in 6 years in 2022-23 and a slight price increase on items at the Snack Bar, The League is better positioned to be able to pay off debts incurred during the Covid-19 Pandemic and invest in improvements that will benefit our players and their families.

FINANCIAL SUMMARY

The main revenue sources of Apple Valley Little League are player registrations, sponsor donations and snack bar sales. In 2022, for the first time in 6 years, AVLL raised the price of player registration to keep in line with economic inflation and, with the help of our Sponsorship Committee, were able to acquire a substantial number of new League Sponsorships, all of which are helping The League make important improvements to facilities and fields, as well as enabling us to eliminate a substantial amount of field lighting debt accrued during the pandemic.

• Field lighting debt has been slashed from roughly $38,000 to $10,187 since July 2023.
• Snack bar profit margin is up 27% from Spring/All-Stars 2023 to Fall 2023 season.
• The increase in registration fees has helped The League focus on making improvements to equipment and fields to enhance player experience.

FINANCIAL STATEMENTS

The following Profit and Loss report summarizes all The League’s income and expenses from 10/01/2022-9/30-2023:

Balances at End of fiscal year

As of 9/30/2023, The League had the following account balances:

The current balances The League holds should be enough to pay for Fall 2023 field lighting, umpire fees, and any unexpected costs needed to maintain operation of The League until revenue from Spring 2024 season registrations arrive. Any excess funds left over in the general account at the end of the Fall 2023 season will be used to pay off the final $10,187 of past due field lighting balance.

Registration

Player Numbers - FY2023 – Table 1

Total number of participants for the 2023 year: 1,707

Player Numbers by Division - FY2023 – Table 2

Group 1 – Tee Ball (co-ed)

Group 2 – Rookies/Sunshine

Group 3 – Minors/Majors/Intermediate/Seniors

Player Costs

The following is the actual cost the league incurred for each registered player in Table 2.

Player Costs – Table 3

It should be noted that Fall 2022 was a shortened season due to Town of Apple Valley performing much needed maintenance and repairs to the fields at James Woody Park, resulting in a lower-than-normal average cost per player with regards to field lighting and umpires.

Uniforms

Uniforms are the largest league expense that we incur each year. The following numbers can be referenced in the provided financial reports.

Uniform Costs – Table 4

The Uniform Committee, comprised of members from the Board of Directors, has done a great job in ensuring that uniform costs stay within budgetary constraints. In Spring 2022, uniforms cost $50,116.68 for 828 players. In Spring 2023, the cost of uniforms was $52,207.13 for 939 players—only a $2,090.45 increase. By shopping around for the highest quality uniform for the lowest price, the Uniform Committee has ensured that our players have the best uniforms for the best price. In addition, the suggested ordering process was adhered to in accordance with the recommendations put forth in the FY2022 Treasurer’s Report, resulting in a decrease in excess/unnecessary ordering of uniforms.

SNACK BAR

The snack bar provides convenience to players and their families and revenue to The League. While Little League International suggests that local leagues maintain a profit margin of at least 100%, Apple Valley Little League Snack Bar has been operating at about a 30% profit margin (or less) for the past few years. Combining the low profit margin at the Snack Bar and registration fees that were less than actual player costs prior to the 2022 season, The League has struggled to make needed improvements to the snack bar and its facilities that would improve the player and family experience. Since the formation of the new board, the Snack Bar has seen its profit margin rise to about 57%. We feel confident that in the coming Spring 2024 season, we will finally be able to make some needed improvements due to the decision to increase snack bar menu item prices, shopping around for vendors that provide quality items for less cost, and only ordering items we need and know we will sell.

PROPOSED BUDGET FOR 2024

This proposed budget is based on projected player registrations during Spring and Fall 2024 Seasons. The League has seen an increase in interest and participation year over year and the 2024 Season may be our best turnout ever. Even as such, this proposed budget will be conservative in its estimation and based on a recommendation to keep current registration fees at $100 for Tee Ball, $120 for Rookies/Sunshine, and $160 for Minors through Seniors.

Projected Player Numbers by Division – 2024 – Table 5

Group 1 – Tee Ball (co-ed) - $100 registration fee

Group 2 – Rookies/Sunshine - $120 registration fee

Group 3 – Minors/Majors/Intermediate/Seniors - $160 registration fee

Total projected players in 2024: 1,595

Projected Expenses 2024 – Table 6

PROJECTED REVENUE FOR 2024

Projected Revenue – 2024 – Table 7

Total projected revenue depends on the execution of a successful fundraising campaign and continued snack bar sales. During the 2023 Spring season, AVLL failed to reach its fundraising goal. The new board hopes that the 2024 fundraising campaign reaches its goal and is currently planning a strategy to ensure it does well.

Projected Player Costs for Spring and Fall – 2024 – Table 8

Projected player costs are average numbers based on the projected registration numbers for the 2024 season excluding All-Stars, who pay an additional fee upon selection to an All-Star team.

REPORT CONCLUSIONS

• Raising registration fees for the first time in 6 years during the 2022/23 season likely saved The League from insolvency. In the future, The Board should carefully examine actual costs and adjust the fees swiftly and as necessary to avoid future financial issues to ensure continuity of The League.
• Unprecedented registration numbers seem to be the trend for The League. While estimations of future numbers are conservative, I expect a high turnout for the 2024 seasons meaning actual player costs may be higher than projected.
• Snack Bar costs and revenue are heading in the right direction. A 27% increase in profit margin from 30% to 57% means the Snack Bar is being managed adequately and these funds help The League make ends meet by generating revenue in-season. Gradually increasing menu prices and analysis of costs should continue to ensure we maintain a good profit margin that stays ahead of inflation and the general rise in the cost of goods sold.
• The final $10,187.00 of past due field lighting debt should be paid off by end of Fall 2023/start of Spring 2024. This debt, which was nearly $60,000.00 at the beginning of Spring 2023 season, has nearly been paid off thanks in large part to the previous Treasurer and Board who have made that debt a priority. The current Board has also done a great job adhering to an interim budget for Fall 2023 season that has allowed us to significantly further reduce the debt to ensure that Spring 2024 season is a game-changing season for Apple Valley Little League that allows us to make improvements to facilities, enhance the player and family experience, and make some general capital improvements that will help AVLL continue to be one of the most prestigious leagues in the District.
• One thing not mentioned yet in this report is the number of Sponsorships we have received as a league and the hard work that our Sponsorship Committee has accomplished to get those Sponsors. The money donated by these members of the Community has greatly helped The League to continue providing a service to the children and families of Apple Valley.
• No immediate need to raise registration fees for at least the Spring 2024 season. Current fees should provide ample funding for The League to continue operations and remain fiscally sound.