For the six-month period ended June 30, 2000, Local 802 enjoyed a gain of $353,254, a substantial increase over the gain of $87,508 realized in the comparable period of 1999.
Both this year and last, the gains for the six-month periods were significantly improved by write-ups of the local’s investment in Union Labor Life Insurance Co., as explained in Note 8 to the financial statements. Excluding those write-ups, the June 30, 2000, gain amounted to $190,544, or $147,627 more than the prior year’s gain of $42,917.
The $147,627 improvement in 2000’s results is primarily due to a solid increase in work dues of over $200,000, or 11 percent. Both Broadway and Concerts made strong contributions to this increase. The increase in rent income is due to the leasing, late in 1999, of the second half of the sixth floor of the union’s headquarters building (the other half was leased some years ago). After allowing for the transfer of a portion of work dues income to the American Federation of Musicians, total income for the period increased 9.4 percent.
Total expenses for the period increased just over 3 percent. The most significant change was for legal expense, which increased $47,886, or 55 percent, due to payments from the Members Legal Services Fund for contract negotiations. The increase in occupancy expense includes higher electricity, fuel oil and property tax expenses, while members’ life insurance expense reflects an increase in premium rates. However departmental costs, in total, decreased during the current period due to staff vacancies. This was offset, in part, by increased expenditures for office supplies. The saving in mortgage interest expense is largely due to a $100,000 prepayment of principal during December 1999.
Cash flow for the first six months of 2000 was $308,140, compared with a negative $27,552 for the same period in 1999. This improvement is substantially due to the increased gain. Local 802’s net assets at June 30, 2000, were just over $4.4 million – up 7 percent over June 30, 1999, and almost 9 percent over Dec. 31, 1999.
It is a pleasure to report such excellent financial results and that Local 802’s financial position remains strong.