For the year ended Dec. 31, 1999, Local 802 realized a gain of $36,509. This was a decline of almost eighty per cent from earnings of $167,761 realized during the preceding year. The audited financial statements for the year appear in the April 2000 issue of Allegro.
Total Income for 1999 amounted to $4,739,789, an increase over 1998 of $63,464, or less than 2%. Many categories of income, including Work Dues and Basic Dues, declined in 1999. The year to year increase in Total Income was entirely due to write-up of an investment and to a $100,000 transfer to income from the Recording and Claims Funds. Without these two favorable transactions, Total Income would have declined nearly 2% in 1999 versus 1998.
While Total Income increased by less than 2% in 1999, Total Expenses for the year increased by 4.3%, to $4,703,280. Employee compensation costs accounted for approximately 85% of this increase, which included increases for organizing and for Y2K compliance. The remaining portion of the 1999 increase in Total Expenses is attributable to strike and picketing expenses and to premium rate increases for Members’ Life Insurance, offset in part by reduced legal fees and mortgage interest expense. The year-to year decrease in mortgage interest expense is due to principal prepayments of $250,000 in July 1998 and $100,000 in December 1999.
Cash flow for 1999 was a negative $412,682, compared with a positive $47,083 for 1998. Besides the decline in earnings, items of significance affecting cash flow for 1999 were $212,400 escheated to the State of New York and $147,200 expended for the fitting out of the 6th floor of the headquarters building.
Local 802’s Net Assets at the end of 1999 were just over $4 million, essentially unchanged from the prior year end.