HAR & HRIS 2015content.har.com/meetingroomx/budget/HAR2015Budget.pdf · 2015 Consolidated Annual...

2015 Consolidated Annual Budget

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HAR & HRIS 2015 Consolidated Budget December 2014


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Executive Summary

2015: EPIC Leadership Nancy Furst will serve as 2015 Chair of the Houston Association of REALTORS® and with her leadership team and a dedicated staff led by President and CEO Bob Hale, HAR will strive to Engage with Passion and Innovate through Collaboration. As the “Voice of Real Estate” in Greater Houston, HAR will also highlight the expertise and professionalism of its 30,000 members.

The 2015 Consolidated Budget projects Revenue over Expenses of $198,716 before depreciation. Total membership in HAR increased by 10% in 2014 which has directly impacted the revenue and expense projections for 2015. In comparison to the prior year budget, Total Revenues are projected to increase by 8.2% while Total Expenses are expected to increase by 8.9%

2015 Proposed Budget Highlights HAR Dues and HARMLS fees remain unchanged for 2015

2015 Total Membership projection – 30,802 ( 2.9% increase) 2015 MLS Subscribers projection – 26,858

REALTOR® Value, HAR.com Ad Campaign expanded Statewide - $1,200,000 HAR.com mobile apps development & support - $306,000

Intellectual Property Licensing and Data Analytics - $194,000 Budget Comparison, HAR Consolidated Budget 2013 Budget 2014 Budget 2015 Budget

Revenues 24,943,242 25,583,893 27,693,004 Expenses 24,562,063 25,230,380 27,494,288 Revenue over Expenses 381,179 353,513 198,716 Depreciation 382,100 350,600 340,600 Revenue over Expenses (including Depreciation) -921 2,913 -141,884

In comparison with TAR and other 501c(6) entities, HAR compares favorably in the key categories of Dues Income, Salaries, Benefits and Travel Expenses.

ASAE AVERAGE

TAR

HAR

Budget Size $10 Million to 30 Million $13,619,648 $27,693,004 Dues Revenue 37.7% 72.8% 41.8% Salary as a % of Revenue 39.2% 44.8% 24.6% Benefits as % Revenue 7.0% combined w/salary % 5.6% Travel as a % of Revenue 3.2% 3.1% 1.8%


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Department Review and Highlights for 2014 Membership In 2015, HAR’s dues will remain at $132, which represents the 12th year in a row with no increase and which is below the $173 average dues of the 25 largest local REALTOR associations in the country.

DUES Comparison (+ Mandatory Assessments) FY 2003 FY 2015 Change

NAR $84 $155 +84%

TAR $87 $127 +46%

HAR $132 $132 -

While both 2013 and 2014 saw HAR post significant membership growth, the 2015 Budget has projected a modest increase of 2.7% from 29,988 to 30,802.

Member Engagement at HAR has reached new heights under the leadership of Director of Member Engagement, Roz Crew. The HAR Get Involved platform provides members easy access to a plethora of volunteer opportunities.

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10,000

20,000

30,000

40,000

HAR Membership since 20042015 Projection for Total Membership ‐ 30,802

Members


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In 2015, HAR will continue to provide programming, networking and encouragement to young professionals in the REALTOR® Community. HAR’s Next Realtor Generation, (NRG) continues to provide energy to the association through its community service, networking and professional development and was recognized in 2010 by NAR as the Best Young Professional Network chapter in the country and in 2012 received the Golden Hammer Award for its community service day. The HAR NRG 20 Under 40 program recognizes the incredible talents and energy of members, helping HAR to remain connected, involved and relevant to this growing demographic.

HAR’s Member Services staff is available to assist members when they are busiest, on weekends, from 10am – 2pm via online chat. In response to member demand we have added weekend orientation for new members on a monthly basis. To maximize the opportunity to serve the membership, we also now offer basic MLS Training concurrently with the weekend orientation. HAR is fortunate to have such an experienced and dedicated member service team, under the direction of Membership Manager Cynthia Williams, who celebrated 36 years of service in 2014.


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HAR represents nearly one third of the REALTOR members in the state of Texas. As the leading local association in the country, it benefits our members to have consistent representation at the state level and national levels. In 2015, HAR will continue to promote and support HAR members for leadership positions at TAR and NAR.

MEMBERSHIP 2013 Budget 2014 Budget 2015 Budget

Revenues 10,024,272 10,024,272 11,959,321

Expenses 8,690,208 8,690,208 10,008,392

Revenue over Expenses 1,334,064 1,334,064 1,950,929


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Meetings and Events Through superior programming the HAR Meetings and Events Department strives to offer exceptional opportunities to members by sharing timely and relevant information beneficial to their career success.

Under the direction of Lori Carper, HAR’s signature event, the BIG e, features an action packed day of educational sessions with national speakers covering topics of interest to both agents and brokerages such as social media, technology tools, increased productivity and profitability, risk management and work life balance.

REALTOR Celebration is our way to thank board members and officers for their year of service to the membership. This annual event is also where we install the newly elected HAR Board of Directors and recognize our two most prestigious awards: REALTOR of the Year, which recognizes a member who best personifies the REALTOR in spirit, ethics and professionalism and the John E. Wolf Community Service Award. This award is given to a member who has made outstanding contributions to the community, mainly outside of the real estate industry.


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HAR’s Leadership Orientation is an annual program designed to bring newly elected board members and appointed advisory group leaders together for an industry update as well as to explain their duties as an HAR leader.

HAR’s Past Presidents Advisory Group meets annually to honor the service of past HAR leaders while also serving as a means of keeping these influential visionaries active and involved with the progress of the association. The HAR Strategic Planning conference brings the insights of nationally recognized industry experts to the HAR Board of Directors and senior staff for a dynamic two day session. The format provides the opportunity for intensive discussions on the future of the industry and as well as a collaborative evaluation of opportunities to deliver greater value to members.

The HAR Events team also takes charge of adhoc events and creates the perfect atmosphere for honorees and those in attendance.

MEETINGS & EVENTS

2013 Budget 2014 Budget 2015 Budget

Revenues 123,950 123,950 136,000

Expenses 614,052 614,052 688,331

Revenue over Expenses -490,102 -490,102 -552,331

Allocation to MLS -41,875 -41,875 -41,875

Revenue over Expenses after Allocation -448,227 -448,227 -510,456


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International In 2014, the HAR International Advisory Group, under the leadership of Lori Carper, received the NAR Global Achievement Program Platinum Award. This prestigious recognition spotlights HAR efforts to promote global and multicultural real estate business opportunities throughout the Houston Market.

In 2015, HAR will continue to identify and develop relationships with local institutions of higher learning, successful international companies, chambers of commerce and foreign consulates as well as provide specialized programming designed to educate members on how to conduct business internationally. With Houston and the surrounding areas growing fast, the Houston region is now more diverse than NYC. Be sure to take advantage of the HAR global real estate programs such as the CIPS Institute, Around the World in 60 Minutes luncheon meetings and other international courses in 2015.

INTERNATIONAL 2013 Budget 2014 Budget 2015 Budget

Revenues 0 0 0

Expenses 37,372 37,372 39,059



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Communications Under the direction of Matt Burrus, HAR’s 2015 Member Marketing and Communications initiatives will continue to develop messaging and communications channels that will most effectively convey the Association’s benefits to members, the members’ benefits to consumers and the HAR.com benefits to both. The launch of the statewide HAR.com means that these goals, which had previously been more targeted to Houston will now spread across the state of Texas.to identify, employ and validate those communications practices that will effectively build powerful relationships, help members build trust and respect for each other, the public and the Association. They will also foster learning, accomplish common goals and facilitate the understanding necessary to make decisions for effective change.

Always trying to stay on the cutting edge of advertising, HAR engaged in a pilot program of a new way to purchase online advertising (HAR ads being shown on other sites) through Hearst Digital Media. Typically, an advertiser looks at its target demographic and purchases advertising on sites that most closely mirror that target. The new method that we employed targets the Internet visitor instead of the site. Whereas our ads used to be shown on perhaps 15 sites that we specially purchased, our ads in 2014 were displayed on literally 1,300 sites that were visited by consumers that matched our target demographic. This proved to be very effective, and we will likely expand from the pilot project to move more of the existing online ad budget to this method of ad buying.

Public relations, or “earned media,” also continued to play an enormously valuable role in our messaging to consumers. Whether it was market updates or announcing the statewide initiative or encouraging consumers to use a REALTOR to help avoid fraudulent scams, HAR’s public relations efforts were seen across all media outlets, including local, state, national and international publications that appear online and in print. It is our goal to make sure the REALTOR brand is continually seen by the public whether through advertising or public relations.


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In addition to our Five Minute REALTOR newsletter, which links back to our HARConnect.com communications hub, we also have The Edge, which is probably the most effective communications product and is used by sales managers and brokers during their weekly sales meetings. We engaged in a review of the content that we used in The Edge and tried to boost the product to be even more useful and relevant. Since implementing the results of that review, our statistics show a marked increase in the use of the communications product.

HAR’s Communications team also manages all advertising and sponsorship agreements for events, publications and HAR.com. Revenues for 2014 were higher thanks to both increased traffic on HAR.com and the continuing strength in the local economy. With a recent change to how our ads are delivered and utilizing optimization tools, we will look for an even greater return in 2015.

As with all issues, whether local, state or national such as the Mortgage Interest Deduction, REALTOR® Safety, taxes on real estate commissions or local vs. national market conditions, HAR must work to present the most timely and effective communication of our REALTOR® position to governmental agencies, elected officials and consumers. It is vital that we monitor, analyze and leverage effective communication strategies to positively influence these critical issues. We have engaged with consumers through the HAR Consumer Research Panel and have begun using the newly-developed, weekly HARtbeat newsletter to provide real estate and economic news of interest to consumers. When there is a need to utilize that communications channel for public advocacy efforts, then it will allow us to broaden our strength beyond just our membership ranks into the homeowner ranks as well.

COMMUNICATIONS 2013 Budget 2014 Budget 2015 Budget

Revenues 340,000 340,000 290,000

Expenses 737,141 737,141 786,184


Allocations to MLS -311,671 -311,671 -311,671



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Professional Development In 2015, HAR’s Professional Development Program, guided by Rita Klein Blevins will again offer the most popular designation courses such as CRS, GRI, ABR, CIPS, BPOR, CNE, ePro, CSSN, SRES, TAHS, RSPS and the NAR Green designation.

The immensely popular Management Central series continues to produce the highest quality, most well-attended networking and training opportunities for members with topics ranging from Broker Profitability, Risk Management, Contracts and Consumer Preferences.

In 2014, HAR’s Professional Development team was once again recognized by TAR for Outstanding Programming. The HAR Social Media Pro (SMP) course, Management Central, “Legally Speaking Series” and “Around the World in 60 Minutes” each represent the best of class programming that has created an outstanding benefit for HAR members. A new agent boot camp course is being added in 2015.

Additionally, the Texas REALTORS Leadership Program by HAR continues to receive praise from members. Over 75% of the participants in the TRLP have returned to serve the membership through an HAR Advisory Group, a Task Force, the HAR Board of Directors or through the various Legacy Projects. Admission to the program is limited to full time real estate professionals and the bonds and camaraderie of each group will have a powerful, positive and lasting impact on the Association. Specifically, the H-Town program has become a highlight of the year, bringing together HAR leaders with business and political leaders from the entire community.


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The training and member profitability department delivers MLS Tempo, Fusion and Realist training classes, which are approved for MCE credit, as well as live and online training for all of HAR’s technology tools. Onsite training on the entire suite of HAR Technology Tools is available upon request for offices.

PROFESSIONAL DEVELOPMENT


Revenues 355,480 355,480 478,301

Expenses 507,821 507,821 587,934



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Governmental and Political Affairs

For all of its efforts, HAR is well respected and connected to local, state and national leaders to ensure that when decisions are made on the local level, they are made with consideration to the impact on REALTORS and the real estate economy.

With the conclusion of the November 4 Midterm Elections, HAR’s Governmental Affairs team is gearing up for the 2015 Texas Legislative session. HAR enjoyed numerous political wins during the election, and the relationships fostered during election season will serve to benefit our REALTORS and the real estate industry during the session’s activity. In addition to having local REALTOR leadership involved on numerous levels of TAR policy subcommittees, HAR Governmental Affairs staff is in constant contact with TAR’s legislative team as well as our local representatives and senators whom we have supported through TREPAC.

It’s never too early to begin planning and promoting REALTOR Lobby Day at the Texas Capitol, a day when thousands of Texas REALTORS take our industry message to the state Capitol building, meeting with legislators and their staff and delivering our legislative priorities. In 2015, that day is Tuesday, April 14, and HAR staff has already begun promoting a Save the Date message to our current committee volunteers and board directors. During the last legislative session, HAR had five buses leave from the Greater Houston area, filled will eager REALTOR advocates, and 2015 promises to be just as successful.


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On the local level, HAR maintains an active presence in our largest REALTOR markets, having Political Affairs Advisory Group (PAAG) and Political Affairs Advisory Leadership (PAAL) volunteers throughout the Bay Area, Fort Bend, Harris and Montgomery County. In 2015, we will participate in five municipal elections throughout our service territory. Those municipal elections are: Houston City Council, Pearland City Council, Missouri City City Council, Sugar Land City Council and The Woodlands Township.

In addition to weighing in on the races, HAR Governmental Affairs team will continue our support of local issues of interest, just as we have in 2014. The City of Houston is revisiting the Historic Preservation Ordinance once again, and although committees have been meeting in 2014, the bulk of the advocacy work will be done during 2015. Our HAR Governmental Affairs Advisory Group (GAAG) has set a solid foundation with the planning committees for this issue and will continue our active participation in the discussions well in to the new year. In Montgomery County, HAR Governmental Affairs staff will continue our work with the local Montgomery County PAAL members regarding a much-needed amendment to the current sign ordinance. In 2014, our PAAL members spoke to current Woodlands Township Directors regarding our displeasure with the current ordinance and how it affects our ability to conduct business, and in 2015

we will use the support of our newly-elected fellow REALTOR, Commissioner Jim Clark, to make necessary changes.


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2014 also brought closer scrutiny to the real estate industry from a governmental agency called the Consumer Financial Protection Bureau (“CFPB”), which was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. As the CFPB makes it way through various financial sectors and enforcing new, more stringent, guidelines with the ultimate goal of protecting the consumer’s financial well-being, their focus has moved to the closing process. In August 2015, the CFPB will implement the “Know Before You Owe” Rule (TILA-RESPA Final Rule), and the HAR Governmental Affairs team will continue educating both themselves and the REALTOR on how this and other measures implemented by the CFPB will affect the way REALTORS are able to conduct their business and protect their clients.

In addition to the CFPB, HAR’s Governmental Affairs staff and committee volunteers continuously keep abreast of federal policy that needs REALTOR support. Through our Call for Action industry notifications, REALTORS are able to deliver vital messages to our federally elected leaders, and our Federal Political Coordinators (FPCs) take that message further with individual communication given to each member of Congress. These FPCs each have personal relationships with the individual congressperson, which is fostered beginning in the election season and continues well in to the member’s representation in Washington. It is a very real message of how their actions affect their constituents at home.


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TREPAC In 2014, HAR continued to reinforce the key message that TREPAC plays a vital role in the political process alongside issues advocacy and candidate recommendations.

Utilizing a Peer-to-Peer Approach to target major investors, in 2013 HAR began holding “Be One, Bring One” VIP events, capped by an evening at Tony’s which raised over $86,000 dollars. Expanded in 2014 to include the Lone Star and Capitol Club levels, $250 and 500 levels, under the leadership of Karen Driscoll, and with the assistance of the dedicated TREPAC trustees, HAR raised a record $801,997 in contributions.


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HAR’s outstanding efforts were recognized at TAR for the most dollars raised in the state ($801,977), the second highest participation for Boards of 5,000 members or more with 51%, a TAR TREPAC Chairman’s special award for a 7% increase in participation and at the NAR Convention in New Orleans, HAR was recognized as one of the top three fundraiser in the country.

PUBLIC AFFAIRS & TREPAC 2013 Budget 2014 Budget 2015 Budget

Revenues 0 0 0

Expenses 795,650 795,650 764,775



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Branch Operations The 2015 budget reflects the consolidation of operations, staff, programs, and services for HAR’s three satellite locations, (Montgomery County, Fort Bend and Bay Area). Under the leadership of Rhonda Flowers, the HAR Branch office locations provide convenient access to HAR & HRIS services. A portion of the branch operating expense is allocated to HRIS.

The association owns the Fort Bend Office and maintains lease space for the Bay Area and Montgomery County branches. The Bay Area lease has been renewed at the current location for a new seven year term, while the new Montgomery County location, located 2.5 miles south of the current Portofino location will be fully operational in late December.

The rapid expansion of the north/northwest Houston real estate market, fueled in part by the relocation of Exxon Mobil and construction of the Grand Parkway has caused commercial rental rates to increase dramatically since 2007, resulting in higher occupancy cost for the new Montgomery County office. The new location will include the following major value additions:

• Signage on IH 45

• 100 seat auditorium, with separate entrance.

• Weekend access to the property

The final build out and move to the new location will occur later in December, and a grand opening reception is planned for early 2015.

BRANCH OPERATIONS 2013 Budget 2014 Budget 2015 Budget

Revenues 0 0 0

Expenses 1,200,817 1,200,817 1,274,403

Revenue over Expenses -1,200,817 -1,200,817 -1,274,403

Allocation to MLS -720,490 -720,490 -764,642

Allocation to Membership -480,327 -480,327 -509,761

Revenue over Expenses after Allocations 0 0 0


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Administration and Building

Controller Tracy Goodeaux and the accounting team prepare monthly financial statements for management review which are presented to the HAR Board of Directors by HAR’s Secretary/Treasurer at their regularly scheduled monthly meetings. The statements are also posted to the member’s only area of the website.

Each year, the association conducts a full financial audit, which includes an onsite, detailed review of the HAR and HRIS finances. The audit is conducted by a local independent CPA Firm, Harper & Pearson, in accordance with the Generally Accepted Audit Standards as promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants. The final audit results and any recommendations to management are presented directly to the HAR Budget and Finance Committee by a principal of the CPA firm. In 2014, HAR’s consolidated financial statements once again received a full, unqualified opinion by our outside independent CPA firm, which is the highest rating possible.

HAR’s internal Information Systems and Network Administration, under the watchful eye of Chief Systems Administrator Edward Moncur, covers over 125 personal computers, 43 server instances, a wide area network (WAN) for satellite offices, PBX system with IP enabled phones, local area networks (LAN) in each location, disaster recovery, 24 network appliances (firewalls, VPN’s, routers, switches) and over twenty printers.

In 2014, HAR continued reviewing multiple telephony options in anticipation of an upgrade to our phone system. Our existing system, purchased in 2003 and fully depreciated, is no longer in production which is making it increasingly difficult and expensive to acquire

replacement parts, upgrades and even routine maintenance. It is anticipated that a capital investment of $142,000, which was approved in 2013, will be made in 2015.

ADMINISTRATION 2013 Budget 2014 Budget 2015 Budget

Revenues 179,300 179,300 185,300 Expenses 424,826 424,826 493,667 Revenue over Expenses -245,526 -245,526 -308,367 Depreciation 157,000 157,000 125,500 Revenue over Expenses (including Depreciation) -402,526 -402,526 -433,867


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The HAR Main Office serves as the Associations primary meeting venue for members. The building recently received new A/C package units (2013), foundation repair (2013), energy efficient lighting (2012, 2013), new carpeting and light remodel in common areas (2014) and should require only routine maintenance in 2015. No major renovations or capital expenses are expected.

BUILDING 2013 Budget 2014 Budget 2015 Budget

Revenues 0 0 0 Expenses 18,444 18,444 37,894 Revenue over Expenses -18,444 -18,444 -37,894 Depreciation 150,000 150,000 140,000 Revenue over Expenses (including Depreciation) -168,444 -168,444 -177,894


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Houston REALTORS Information Service Multiple Listing Service (MLS), Data & Technology The Future of MLS continues to be discussed and debated with many experts predicting turmoil ahead. Fortunately, HAR’s MLS, Data & Technology initiatives have maintained a laser like focus on delivery of the technology and tools needed to keep members meeting the every changing expectations of consumers. HAR’s efforts have been recognized at the local, state and national levels for their outstanding value and service delivery. In 2015, HAR, through its wholly owned subsidiary, HRIS, will continue to enhance broker and agent profitability by providing a cost effective solution to facilitate the sale and lease of listed properties. For the twelfth consecutive year, HAR MLS subscription fees will remain unchanged for HAR members. In fact, since 1997, MLS fees have actually been reduced by $5 per month. Consider all that the HAR platform has to offer.

• MLS – TEMPO and FUSION SYSTEMS –Under the direction of Shawn Dauphine, HAR’s core MLS system, TEMPO, provides the ability to enter and search listings. TEMPO now works natively with Apple products such as the MacIntosh, iPad and iPhone, and also works with additional web browsers such as Google Chrome, Safari and Firefox. Fusion will continue to be available in parallel with TEMPO, featuring enhanced mapping tools and ASAP Listing auto notifications. The MLS system also includes training, evening and weekend technical support and provides the framework for cooperation and compensation between participants and subscribers which promote an efficient and orderly market.


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• MLS – Public Records - Integrated seamlessly within the TEMPO system is also a public records database of all properties in the state of Texas. Provided by Corelogic, the Realist statewide tax system will include enhanced functionality as well as additional data sets such as foreclosures, distressed properties and off-market tax records that are not listed in the MLS.

• MLS - Data QA – Nathan Goble and the QA team work hard to make sure the data contained and displayed within the MLS are in compliance with all MLS rules and also provide valuable support to members needing assistance on data compliance issues.

• MLS – ETS Transaction Management - Transaction Management is provided to all brokerages with no ongoing support, data retention or per file transaction fees. A single

enrollment fee of $500 per firm ($350 for small firms) can improve broker profitability, risk management and agent recruitment, all while becoming more responsive to the evolving demands of consumers.

The intuitive user interface allows users to view search results in a grid view, map view or split screen displaying the map and grid. The grid gives users full control over column sorting, lumn reordering and adding/removing columns from grid results as well as the ability to select and narrow down search results. Users can print or email reports, export property records to Excel or create mailing labels.


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• MLS - HAR.com– Under the guidance of CTO Taqi Rizvi, HAR.com continues to thrive as the #2 most visited real estate website in Texas and the #19 most visited in the nation. With more than 3 million unique visitors per month, the public facing portion of HAR.com, plays a powerful role in promoting the value of REALTORS while assisting with the sale and lease of listed properties. In the face of ever increased spending by publicly traded companies with billions of cash, HAR.com continues protecting and defending members from third parties who seek to resell traffic to the highest bidder as well as providing economical solutions to meet the evolving needs of members.

• MLS - Member Tools – With a one-of-a-kind mobile app, HAR continues to provide ever increasing value to the real estate community which helps to keep HAR members connected and top of mind on all matters real estate. HAR also provides mission critical applications to members in the form of a web presence for 1,485 brokerages and more than 19,583 agents. Additional systems such as Appointment Manager, Lead Call, STAR Report, Market Insight Report and Member Blogs have all been designed and delivered by HAR’s in-house web development team to provide needed functionality with no additional cost to subscribers.

• Data – Listing Syndication and Reporting

HAR was the first MLS Public Website to provide analytics to agents and brokers which track the number of detailed page views and leads generated from the leading real estate portals. The reports, which debuted in November 2014 and are powered by Listhub Analytics, have received very positive feedback from members. The 2015 Budget provides funding to continue this initiative.


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Promoting REALTOR® Value, HAR.com Statewide –The 2015 Budget reflects a total commitment of $1,200,000 to this critical objective with priority given to channels with the highest ROI, including billboard advertising, web/social media ads and targeted print ads in traditional media outlets. Our new website, mobile app and accompanying promotion serve as a constant reminder to consumers across Texas of the value and benefit of using a REALTOR


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HAR.com Financial Support – HAR.com annually saves members more than $16 million dollars in costs by providing direct referrals, leads and click throughs in addition to the tools it delivers for members. In 2015, HAR.com is projected to earn over $2.2 million in advertising and sponsorship revenue which works as a direct offset to those expenses related to the public facing portion of the site.


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Consumer Research - In addition to the many productivity enhancing tools provided through our award winning website, HAR.com also provides a platform for building an ongoing dialogue between Realtors and real estate consumers. With an engaged sample of Houston area consumers, HAR is able to identify trends, preferences and expectations which can help shape future programs, products and services. Additionally, a dialogue with current and future homeowners can help to increase our effectiveness on items of interest to REALTORS such as private property rights and flood insurance.

When compared to other large MLS’s around the country, the products and services delivered by HAR are second to none. Since 1997, the combined HAR Dues and Fees have actually been lowered by 5% while the dues and fees of NAR and TAR have risen by 142% and 74%, respectfully.

MLS, DATA & TECHNOLOGY


Revenues 11,422,542 11,422,542 13,128,195

Expenses 10,719,386 10,719,386 12,857,814

Revenue over Expenses (including Depreciation) 703,156 703,156 270,381


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Houston REALTORS Information Service Commercial Gateway Commercial Gateway, HAR’s Commercial Information Exchange (CIE) continues to thrive as the largest Realtor-Owned CIE, with over 1,500 broker/agent members. Commercial professionals from Houston’s largest and most recognized firms share information with smaller independent firms and all of them have come to rely on Commercial Gateway for timely, accurate researched information. Partnering with the Houston Business Journal, the Commercial Gateway team, led by Sam Scott, produces and publishes the Houston Office and Leasing Guides, which showcase our broader, deeper and more informative analytics. In 2012, Commercial Gateway’s primary vendor, ePropertydata (ePD), was acquired by Xceligent Inc. As a national platform, Xceligent offers a cost effective option to expand our members’ access to information about commercial properties across Houston and other markets of interest. Beginning in 2015, Commgate’s services offering will be expanded to include the full Xceligent suite including:

1) Comprehensive Market Research a. Xceligent will bring a fleet of over 20 drivers to Houston to canvas the entire inventory

of all Office, Industrial and Retail properties. This level of research exceeds the current Commercial Gateway research threshold which compile statistics on multi-tenant buildings larger than 20,000 sq.ft.

b. Tenant move-ins and move-outs will be tracked to provide a more detailed accounting for changing market conditions.

2) Property Search/Reports Gallery a. Comprehensive form driven search b. Print results or export to spreadsheet c. Can choose from over 50 report formats including Historical absorption, Rental Rates,

Brochures, Investment Listing Summary, Building Vacancy, etc. d. Ability to add cover page, listing notes, prepared by, date, footer, company logo,

road/aerial map


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3) Map Search

a. Search for available properties by drawing a box, polygon, or radius on an area of the map.

b. Available number or listings changes dynamically as you move around the map or enter search criteria

4) Parcel Locator

a. Use aerial map to click on properties and view parcel boundary, owner name, Tax ID, taxes, availability and recent transactions

It is anticipated that Xceligent and Commercial Gateway will offer multiple service levels in the Houston area:

• CommercialSearch.com – CommGate is finalizing its participation in this national search site that will be operated in a manner similar to LoopNet’s older “Premium” business model, pay to have a listing seen by all, or pay to be able to search all listings. CommGate’s members will get special treatment bundled with their CIE membership.

• Commercial Gateway – Availability Search for members. Includes some local research data, including listed for lease and for sale properties.

• National CDX – Xceligent’s “National” researched service offering that includes complete access to researched data on all Xceligent markets across the nation


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•

The 2015 Budget reflects a continued commitment to the success of HAR’s Commercial members. It is anticipated that CIE participation will remain consistent with prior years, provided however that as Xceligent’s other products are launched and adopted we may see some attrition as CIE customers migrate to the other products. The diminished membership will be offset by a revenue share back to HAR for CIE members who move to the new Xceligent services. HAR’s overall commercial service offering will be enhanced by integration with the Xceligent platform that will provide a basis for increased networking and recognition programs. Once the transition to the new platform is complete, it may be necessary to phase in a revised fee schedule that reflects the changing user mix as firms select service level best suited to their practice. Commercial Gateway will contend with alternative Xceligent services that are both lower and higher in price and service level; CommercialSearch.com will provide a less expensive, low service model while the Xceligent CDX will provide a more expensive national research platform at a premium price.

COMMERCIAL GATEWAY 2013 Budget 2014 Budget 2015 Budget

Revenues 590,375 590,375 565,887

Expenses 599,790 599,790 605,685



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Houston REALTORS Information Service Super Center

The HAR Super Center continues to provide an incredible convenience, benefit and value for members. The main location at HAR Central is our flagship store and also serves as the distribution center for our three branch locations. More than 1,200 products are available for purchase, both instore and online. HAR’s considerable buying power and negotiation experience allow us to provide the most popular products needed by members at the best possible prices.

Under the leadership of Dennis Burrows, total sales and gross margins have remained strong. The 2015 Budget is projected to remain consistent with the 2014 Actual results.

SUPERCENTER 2013 Budget 2014 Budget 2015 Budget

Revenues 800,000 800,000 950,000

Expenses 914,848 914,848 1,053,198



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HOUSTON ASSOCIATION OF REALTORSCONSOLIDATED STATEMENT OF REVENUES AND EXPENSESFOR THE MONTH ENDINGBudget 2015

Fiscal Fiscal FiscalHRIS, INC. FOR PROFIT SUBSIDIARY Year 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES-HRIS, INC.MULTIPLE LISTING SERVICE 11,422,542 12,326,240 13,128,195 COMMERCIAL INFORMATION EXCHANGE 590,375 644,000 565,887 REALTOR SUPERCENTER 800,000 950,000 950,000

TOTAL REVENUES--HRIS, Inc. 12,812,917 13,920,240 14,644,082

EXPENSES-HRIS, INC.MULTIPLE LISTING SERVICE 10,619,386 11,434,048 12,782,714 COMMERCIAL INFORMATION EXCHANGE 599,790 615,290 605,685 REALTOR SUPERCENTER 914,848 1,040,759 1,053,198

TOTAL EXPENSES BEFORE DEPRECIATION--HRIS, INC. 12,134,024 13,090,096 14,441,598

REVENUE OVER EXPENSES BEFORE DEPRECIATION--HRIS, INC. 678,893 830,144 202,484

DEPRECIATION EXPENSE 100,000 75,100 75,100

REVENUE OVER EXPENSESWITH DEPRECIATION AND TAXES--HRIS, INC. 578,893 755,044 127,384

HAR, INC.-NON-PROFIT PARENT

REVENUES - HAR, INC.MEMBERSHIP 10,024,272 10,698,377 11,959,321 MEETINGS & EVENTS 123,950 136,000 136,000 MEMBER COMMUNICATIONS 340,000 290,000 290,000 PROFESSIONAL DEVELOPMENT 355,480 362,976 478,301 ADMINISTRATION 179,300 176,300 185,300 FORT BEND BRANCH OFFICE - - - BAY AREA BRANCH OFFICE - - - MONTGOMERY BRANCH OFFICE - - - TOTAL REVENUES - HAR, INC. 11,023,002 11,663,653 13,048,922

EXPENSES - HAR, INC.MEMBERSHIP 8,690,209 9,208,118 10,008,392 INTERNATIONAL SECTION 37,372 37,919 39,059 MEETINGS & EVENTS 572,177 597,699 646,456 MEMBER COMMUNICATIONS 425,469 446,647 474,513 PUBLIC AFFAIRS 795,650 815,551 764,775 PROFESSIONAL DEVELOPMENT 507,821 505,538 587,934 BUILDING 18,443 36,272 37,894 ADMINISTRATION 424,826 492,540 493,667 FORT BEND BRANCH OFFICE - - - BAY AREA BRANCH OFFICE - - - MONTGOMERY BRANCH OFFICE - - - TOTAL EXPENSES BEFORE DEPRECIATION 11,471,967 12,140,284 13,052,690

REVENUE OVER EXPENSESBEFORE DEPRECIATION--HAR, INC. (448,965) (476,631) (3,768)

DEPRECIATION - FURNITURE & EQUIPMENT 157,000 125,500 125,500 DEPRECIATION - BUILDING 150,000 150,000 140,000

REVENUES OVER EXPENSES WITH DEPRECIATION--HAR, INC. (755,965) (752,131) (269,268)

CONSOLIDATED REVENUES 23,835,919 25,583,893 27,693,004 CONSOLIDATED EXPENSES 23,605,991 25,230,380 27,494,288 CONSOLIDATED NET INCOME (LOSS) BEFORE DEPRECIATION 229,928 353,513 198,716 CONSOLIDATED NET INCOME (LOSS) AFTER DEPRECIATION & TAXES (177,072) 2,913 (141,884)

HOUSTON REALTORS INFORMATION SERVICE2015 Budget - For Review

Fiscal Fiscal FiscalMLS - (DATA & WEB) Year 2013 Year 2014 Year 2015REVENUES Budget Budget Budget 6009 PARTICIPATION FEES 8,335,042 9,094,740 9,742,695 6101 APPLICATION FEES 95,000 89,000 89,000 6010 FEES - OTHER 344,000 291,500 250,500 6111 RULE VIOLATION FINES 120,000 125,000 165,000 6301 INTEREST 144,000 144,000 149,000 6304 REALIZED GAIN/(LOSS) ON INVESTMENT 0 0 6350 SUPRA REIMBURSEMENT 210,000 210,000 210,000 6906 RETURNED CHECK CHARGES 6,500 6,500 6,500 6941 WEB SERVICE DIRECTORY/SPONSORSHIP 337,500 800,000 750,000 6942 ADVERTISING 1,500,000 1,100,000 1,300,000 6943 OFFICE WEBSITE CUSTOMIZATION 1,000 0 0 6945 HAR TV VIDEO PRODUCTION 5,500 5,500 5,500 6944 DATA LICENSING 324,000 460,000 460,000 TOTAL REVENUES 11,422,542 12,326,240 13,128,195EXPENSES 7002 MARKETING 26,000 26,000 55,000 7008 DIRECT MAIL 3,000 3,000 3,000 7080 CONSUMER MEDIA CAMPAIGN 445,000 575,000 1,200,000 7102 DIRECTOR MEETING EXPENSE 13,000 13,000 15,000 7106 HARETS - TEMPO MLS 2,053,720 1,933,404 2,197,068 7106 HARETS -TAX/FORECLOSURE/QA DATA 204,000 521,688 559,709 7106 HARETS - TRANSACTION MGMT 303,339 309,299 336,275 7107 MEMBER BILLING COSTS 347,289 347,289 352,000 7110 MLS INSTRUCTOR EXPENSE 36,000 48,000 96,000 7111 R&D STANDARDS - QSC 0 0 0 7112 STRATEGIC PLANNING/LEADERSHIP 48,000 41,875 41,875 7116 INTERNET ACCESS 75,000 82,320 82,320 7119 WEBSITE DATA MANAGEMENT 219,900 419,100 484,100 7120 WEBSITE HOSTING & DEVELOPMENT 409,800 493,200 491,160 7350 SUPRA EXPENSES 2,000 2,000 2,000 7401 REALTOR CELEBRATION 21,500 21,500 21,500 7412 REGISTRATION FEES 34,000 43,500 43,500 7420 TRAVEL AND CONVENTION 263,050 317,250 332,000 7490 MISCELLANEOUS 30,000 30,000 35,000 7510 ORIENTATION 4,000 4,000 4,000 7570 EMPLOYEE DEVELOPMENT 30,000 30,000 30,000 8000 OVERHEAD ALLOCATION 154,267 141,564 132,068 8106 PERSONAL PROPERTY TAX 15,000 15,000 15,000 8210 DIRECTOR LIABILITY INSURANCE 4,500 4,500 4,500 8303 OFFICE SUPPLIES 5,500 5,500 5,500 8304 PHOTOCOPY 33,000 20,000 20,000 8306 TELEPHONE 21,000 21,000 21,000 8307 REPAIRS / MAINT. 5,000 5,000 5,000 8309 EQUIPMENT RENTAL 1,700 1,700 1,700 8390 MISCELLANEOUS OFFICE 25,000 25,000 25,000 8401 LEGAL 215,000 215,000 215,000 8401 LEGAL EXPENSES 7,500 7,500 7,500 8402 AUDIT / TAX 42,000 42,000 42,000 8403 WEB VIDEO PRODUCTION 110,000 110,000 20,000 8404 COMPUTER EXPENSE 158,200 107,415 85,000 8420 RECON INTELLIGENCE SERVICE 121,000 126,000 126,000 8421 INNOVATIVE SOLUTIONS 60,000 60,000 60,000 8422 WAV GROUP/Surveys 36,000 36,000 36,000 8423 CONSULTANT EXPENSES 0 51,100 51,100 8449 MEMBER RELATIONS 42,000 42,000 42,000 8509 CAR LEASE/EXPENSES 6,500 6,500 6,500 8551 SALARIES & BENEFITS 3,428,960 3,643,477 4,127,527 8560 MISC PERSONNEL 270,000 85,000 85,000 8602 DUES AND SUBSCRIPTIONS 9,500 17,500 17,500 8603 BANK CHARGES 22,000 22,000 22,000 8700 ALLOCATION FROM BRANCH OFFICES 720,490 735,196 764,642 8702 ALLOCATION FROM COMMUNICATIONS 311,671 311,671 311,671 8635 GAIN/LOSS ASSET RETIREMENT 0 0 0 8695 INCOME TAX/MARGIN TAX 225,000 315,000 152,000 TOTAL EXPENSES BEFORE DEPRECIATION 10,619,386 11,434,048 12,782,714 8320 DEPRECIATION 100,000 75,100 75,100REVENUE OVER EXPENSES 703,156 817,092 270,381

HOUSTON REALTORS INFORMATION SERVICE2015 Budget - For Review

COMMERCIAL INFORMATION EXCHANGE Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6540 CIE FEES 590,375 644,000 565,887 6906 OTHER REVENUE 0 0 0 TOTAL REVENUES 590,375 644,000 565,887

EXPENSES 7510 ORIENTATION & TRAINING 1,500 1,500 1,500 7610 CIE VENDOR EXPENSES 110,400 120,400 128,046 7617 RESEARCH AND DEVELOPMENT 39,600 39,600 15,000 7612 ADVERTISING AND PROMOTION 50,500 40,500 26,000 7613 PHOTOGRAPHY & VIDEO 0 0 0 7614 RESEARCH ASSISTANT 5,400 5,400 12,000 8000 OVERHEAD ALLOCATION 16,687 15,076 13,077 8390 MISCELLANEOUS OFFICE 4,800 4,800 11,000 8551 SALARIES & BENEFITS 370,903 388,014 399,063 TOTAL EXPENSES 599,790 615,290 605,685

REVENUE OVER EXPENSES (9,415) 28,710 (39,798)

REALTOR SUPERCENTER Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6905 REALTOR SUPERCENTER 800,000 950,000 950,000 TOTAL REVENUES 800,000 950,000 950,000

EXPENSES 7105 COST OF GOODS - SUPERCENTER 632,800 750,500 750,500 7106 SUPERCENTER SUPPLIES 36,000 36,000 36,000 8000 OVERHEAD ALLOCATION 10,593 9,510 8,462 8551 SALARIES & BENEFITS 235,455 244,749 258,236 TOTAL EXPENSES 914,848 1,040,759 1,053,198

REVENUES OVER EXPENSES (114,848) (90,759) (103,198)

HOUSTON ASSOCIATION OF REALTORS2015 Budget - For Review

MEMBERSHIP SERVICESFiscal Fiscal Fiscal

REVENUES Year 2013 Year 2014 Year 2015Budget Budget Budget

DUES 6010 REALTOR DUES 9,348,341 10,017,931 11,204,927 6012 SALESPERSONS 224,790 222,312 237,534 6013 AFFILIATE 98,791 119,009 126,263 6017 INSTITUTE AFFILIATE 2,350 7,875 9,347 TOTAL DUES 9,674,272 10,367,127 11,578,071FEES 6101 APPLICATION 300,000 300,000 350,000 6102 REINSTATEMENT 5,000 250 250 6103 TRANSFER FEES 30,000 30,000 30,000 6104 MISC. INCOME 15,000 1,000 1,000 TOTAL FEES 350,000 331,250 381,250

TOTAL REVENUES 10,024,272 10,698,377 11,959,321EXPENSES 7002 MARKETING 25,000 25,000 25,000 7008 DIRECT MAIL 2,500 1,500 1,500 7102 DIRECTOR MEETING 5,500 5,500 5,500 7106 NAR/TAR EXPENSE 6,537,438 6,963,623 7,662,843 7107 MEMBER BILLING COSTS 80,000 80,000 85,000 7180 OFFICER EXPENSES 36,000 36,000 36,000 7190 MISC. MEMBER SERVICES 10,000 2,000 2,000 7412 REGISTRATION FEES 9,000 15,000 15,000 7420 TRAVEL AND MEETINGS 162,550 162,550 174,000 7490 MISC. MEETINGS 26,000 26,000 26,000 7510 ORIENTATION 18,000 18,000 18,000 7560 TAR PROFESSIONAL STANDARDS 4,000 4,000 4,000 7570 EMPLOYEE DEVELOPMENT 7,000 7,000 7,000 8000 OVERHEAD ALLOCATION 49,011 44,549 39,888 8210 DIRECTOR LIABILITY INSURANCE 5,000 5,000 5,000 8401 LEGAL 45,000 45,000 45,000 8402 LEGAL EXPENSES 1,000 1,000 1,000 8404 COMPUTER EXPENSE 32,000 36,000 35,000 8420 RECON INTELLIGENCE SERVICES 42,000 54,000 54,000 8420 CONSULTANT EXPENSES 0 16,200 16,200 8509 CAR LEASE / EXPENSES 9,000 9,000 9,000 8551 SALARIES 1,089,383 1,146,566 1,217,200 8602 DUES AND SUBSCRIPTIONS 14,500 14,500 14,500 8800 ALLOCATION FROM BRANCH OFFICES 480,327 490,130 509,761 TOTAL EXPENSES 8,690,209 9,208,118 10,008,392

REVENUES OVER EXPENSES 1,334,063 1,490,259 1,950,929

INTERNATIONAL SECTION Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetEXPENSES 7010 INTERNATIONAL SECTION 13,500 13,500 13,500 8000 OVERHEAD ALLOCATION 1,028 913 812 8551 SALARIES & BENEFITS 22,844 23,506 24,747 TOTAL EXPENSES 37,372 37,919 39,059



MEETINGS & EXPOSITION Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6525 THE BIG "E" 108,950 121,000 121,000 6527 COMMERCIAL EXPO 0 0 0 6560 MISC EVENTS 0 0 0 6901 REALTOR CELEBRATION 15,000 15,000 15,000 TOTAL REVENUES 123,950 136,000 136,000

EXPENSES 7525 THE BIG "E" 83,500 86,000 86,000 7627 COMMERCIAL EXPO 0 0 0 7560 MISC EVENTS 0 0 0 7401 REALTOR CELEBRATION 38,250 38,250 38,250 7112 STRATEGIC PLANNING/LEADERSHIP CONFERENCE 105,500 105,500 95,500 7402 LEADERSHIP DINNER 9,250 9,250 9,250 7403 ADVISORY COMMITTEE MEETING 9,250 9,250 9,250 7406 AWARDS 5,000 5,000 5,000 8000 OVERHEAD ALLOCATION 15,641 14,449 13,680 8551 SALARIES & BENEFITS 347,661 371,875 431,401 TOTAL EXPENSES 614,052 639,574 688,331

REVENUES OVER EXPENSES BEFORE ALLOCATION (490,102) (503,574) (552,331) Less Allocation to MLS-Realtor Celebration (19,125) (19,125) (19,125) Less Allocation to MLS-Strategic Planning/Leadership (22,750) (22,750) (22,750) Total Allocation to MLS (41,875) (41,875) (41,875)

REVENUES OVER EXPENSES AFTER ALLOCATION (448,227) (461,699) (510,456)

MEMBER COMMUNICATIONS Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6920 REALTOR ADVERTISING 340,000 290,000 290,000 TOTAL REVENUES 340,000 290,000 290,000EXPENSES 7005 REALTOR PRINTING 185,000 185,000 185,000 7006 REALTOR POSTAGE 70,000 70,000 70,000 7090 MISCELLANEOUS 1,000 1,000 1,000 8000 OVERHEAD ALLOCATION 20,714 18,787 16,381 8551 SALARIES & BENEFITS 460,426 483,531 513,803 TOTAL EXPENSES 737,140 758,318 786,184

REVENUES OVER EXPENSES BEFORE ALLOCATION (397,140) (468,318) (496,184)

Less Allocation to MLS - Realtor Printing (92,500) (92,500) (92,500) Less Allocation to MLS - Realtor Postage (35,000) (35,000) (35,000) Less Allocation to MLS - Strategic Relations 0 0 0 Less Allocation to MLS - Staff Salaries (184,171) (184,171) (184,171) Total Allocation to MLS (311,671) (311,671) (311,671)

REVENUES OVER EXPENSES AFTER ALLOCATION (85,469) (156,647) (184,513)


GOVERNMENT AFFAIRS, PUBLIC AFFAIRS Fiscal Fiscal Fiscal and TREPAC Year 2013 Year 2014 Year 2015

Budget Budget BudgetEXPENSES 7202 POLITICAL AFFAIRS 29,500 29,500 29,500 7203 GOVERNMENTAL AFFAIRS 57,000 57,000 57,000 7205 TREPAC 68,500 93,500 93,500 8000 OVERHEAD ALLOCATION 27,582 24,350 18,112 8551 SALARIES & BENEFITS 613,068 626,701 566,663 TOTAL EXPENSES 795,650 815,551 764,775


PROFESSIONAL DEVELOPMENT Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6520 SEMINAR REVENUE 345,480 352,976 468,3016521 ROOM RENTAL 10,000 10,000 10,000 TOTAL REVENUES 355,480 362,976 478,301EXPENSES 7520 SEMINAR EXPENSES 263,330 263,500 349,6157630 MANAGEMENT CENTRAL 33,450 35,960 31,9008000 OVERHEAD ALLOCATION 9,086 7,708 6,5518551 SALARIES & BENEFITS 201,955 198,370 199,868 TOTAL EXPENSES 507,821 505,538 587,934


BUILDING Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget Budget

EXPENSES 8001 UTILITIES 108,000 90,000 91,000 8002 SUPPLIES 9,000 9,000 9,500 8003 CUSTODIAL SERVICES 22,000 22,000 22,000 8004 ELEVATOR 7,500 7,500 9,500 8005 HVAC MAINT. 2,000 9,000 11,000 8007 REPAIRS / MAINT. 9,000 9,000 12,000 8010 PROPERTY TAXES 84,500 72,000 35,000 8011 BUILDING INSURANCE 18,500 25,000 25,000 8090 LANDSCAPING 13,500 16,000 15,000 8090 BUILDING ALARM 3,500 3,000 5,000 8090 PARKING LOT CLEANING 5,000 5,000 5,000 8090 MISCELLANEOUS 17,000 19,500 18,000TOTAL OPERATING EXPENSES 299,500 287,000 258,000LESS ALLOCATION TO DEPARTMENTS (314,496) (285,643) (256,798) 8551 SALARIES & BENEFITS 33,439 34,915 36,692 TOTAL EXPENSES BEFORE DEPRECIATION 18,443 36,272 37,894 8009 DEPRECIATION 150,000 150,000 140,000 TOTAL EXPENSES WITH DEPRECIATION 168,443 186,272 177,894REVENUES OVER EXPENSES (168,443) (186,272) (177,894)


ADMINISTRATION Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6301 INTEREST 135,000 125,000 135,000 6302 DIVIDEND INCOME 44,000 51,000 50,000 6304 REALIZED GAIN/(LOSS) ON INVESTMENT 0 0 0 6906 RETURN CHECK CHARGES 300 300 300 6990 OTHER INCOME 0 0 0 TOTAL REVENUES 179,300 176,300 185,300

EXPENSES 8551 SALARIES 6,089,089 6,424,388 6,822,665 8552 BENEFITS 1,306,417 1,351,687 1,560,401 TOTAL SALARIES & BENEFITS 7,395,506 7,776,075 8,383,065 8103 PAYROLL TAXES 357,370 428,901 447,912 TOTAL EMPLOYEE EXPENSES 7,752,876 8,204,976 8,830,978 LESS ALLOCATION TO DEPARTMENTS (7,593,107) (7,980,074) (8,593,978) 8503 CONTRACT LABOR/OVERTIME 35,000 35,000 35,000 8512 MISCELLANEOUS STAFF EXPENSE 18,500 29,500 29,500 8000 OVERHEAD ALLOCATION 9,887 8,738 7,767 8102 SALES TAX 200 200 200 8106 PERSONAL PROPERTY TAX 43,270 32,000 32,000 8201 WORKER'S COMPENSATION 14,000 13,000 13,000 8207 AUTOMOBILE INSURANCE 3,000 3,000 3,000 8303 OFFICE SUPPLIES 5,000 5,000 5,000 8304 PHOTOCOPY 4,000 4,000 4,000 8306 TELEPHONE & INTERNET 70,000 75,000 65,000 8307 REPAIRS / MAINT. 2,200 2,200 2,200 8308 COFFEE 6,000 6,000 6,000 8390 MISCELLANEOUS 30,000 30,000 30,000 8402 AUDIT / TAX 21,000 21,000 21,000 8603 BANK CHARGES 3,000 3,000 3,000 8635 GAIN/LOSS ASSET RETIREMENT 0 0 0 8695 INCOME TAX 0 0 0 TOTAL EXPENSES BEFORE DEPRECIATION 424,826 492,540 493,667

8320 DEPRECIATION - MAIN OFFICE 85,000 70,000 70,000 8320 DEPRECIATION - FORT BEND 30,000 29,000 29,000 8320 DEPRECIATION - BAY AREA 20,000 12,500 12,500 8320 DEPRECIATION - MONTGOMERY COUNTY 22,000 14,000 14,000

TOTAL EXPENSES WITH DEPRECIATION 581,826 618,040 619,167



FORT BEND BRANCH Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6521 ROOM RENTAL 0 0 06990 MISC INCOME 0 0 0

TOTAL REVENUES 0 0 0

EXPENSES 7008 POSTAGE AND DELIVERY 3,000 3,000 3,0008001 UTILITIES 10,000 10,000 10,0008003 CUSTODIAL SERVICES 12,500 12,500 12,5008007 MAINTENANCE 5,000 5,000 5,0008090 LANDSCAPING 7,000 7,000 7,5008106 PROPERTY TAXES 16,000 16,000 16,0008303 OFFICE SUPPLIES 2,000 2,000 2,0008306 TELEPHONE & INTERNET 22,500 26,500 26,5008307 EQUIPMENT REPAIRS AND MAINTENANCE 1,000 1,000 1,0008309 EQUIPMENT LEASE 1,200 1,200 1,2008390 MISCELLANEOUS/PETTY CASH 6,500 6,500 6,5008404 COMPUTER UPGRADES 5,000 4,000 4,0008551 SALARIES AND BENEFITS 235,814 250,001 258,664 TOTAL EXPENSES 327,514 344,701 353,864

REVENUE OVER EXPENSES BEFORE ALLOCATION (327,514) (344,701) (353,864)

8700 LESS ALLOCATION TO HRIS (196,508) (206,821) (212,318)8800 LESS ALLOCATION TO MEMBERSHIP (131,006) (137,880) (141,546)

REVENUES OVER EXPENSES AFTER ALLOCATION 0 0 0


BAY AREA BRANCH Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES 6521 ROOM RENTAL 0 0 06990 MISCELLANEOUS INCOME 0 0 0 TOTAL REVENUES 0 0 0

EXPENSES

7008 POSTAGE AND DELIVERY 3,500 3,500 3,5008050 RENT 101,096 106,000 106,0008303 OFFICE SUPPLIES 2,000 2,000 2,0008305 EQUIPMENT LEASE 1,500 1,500 1,5008306 TELEPHONE & INTERNET 29,500 23,000 23,0008307 EQUIPMENT MAINTENANCE 1,000 1,000 1,0008390 MISCELLANEOUS/PETTY CASH 4,500 4,500 4,5008404 COMPUTER UPGRADES 2,000 3,000 3,0008551 SALARIES AND BENEFITS 271,409 270,079 277,350

TOTAL EXPENSES 416,505 414,579 421,850REVENUE OVER EXPENSES BEFORE ALLOCATION (416,505) (414,579) (421,850)

8700 LESS ALLOCATION TO HRIS (249,903) (248,747) (253,110)8800 LESS ALLOCATION TO MEMBERSHIP (166,602) (165,832) (168,740)



MONTGOMERY BRANCH Fiscal Fiscal FiscalYear 2013 Year 2014 Year 2015

Budget Budget BudgetREVENUES6521 ROOM RENTAL 0 0 06990 MISCELLANEOUS INCOME 0 0 0 TOTAL REVENUES 0 0 0

EXPENSES 7008 POSTAGE & DELIVERY 3,500 3,500 3,5008050 RENT 128,258 128,258 176,4248303 OFFICE SUPPLIES 3,000 3,000 3,0008305 EQUIPMENT LEASE 2,750 0 08306 TELEPHONE & INTERNET 29,500 25,500 25,5008307 EQUIPMENT MAINTENANCE 0 0 08390 MISCELLANEOUS/PETTY CASH 7,000 3,500 3,5008404 COMPUTER UPGRADES 1,000 4,000 4,0008551 SALARIES AND BENEFITS 281,791 298,288 282,764 TOTAL EXPENSES 456,799 466,046 498,688REVENUE OVER EXPENSES BEFORE ALLOCATION (456,799) (466,046) (498,688)

8700 LESS ALLOCATION TO HRIS, INC. (274,080) (279,628) (299,213)8800 LESS ALLOCATION TO MEMBERSHIP (182,719) (186,418) (199,475)


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