St Louis Flying Club Newsletter - 16 June 1997

From The President - By Mike Piccirilli

Dear Members,

I have attached our insurance policy coverage Identlficatlon page for your information. I will bring a copy of the entire policy to the meeting for you to look at.

Speaking of the meeting, we will hold it on Wednesday, June 25, at 7:30 P.M. at Million Air. Thanks to Mike Russell for setting it up. I hope everyone can be there. Topics for discussion are: election of officers and dues/hourly rates.

Regarding elections of officers, we need to elect a vice-president to replace CJ. I am also looking to step down as president/treasurer. I have my eye out for a membership in a faster airplane.

Marlin Sipe has written some ideas on how to structure dues and hourly cost. Please review it as we will use it as a starting point for discussions at the meeting.

Happy Landings,

Mike Piccirilli

Treasurer's Report - by Marlin Sipe

Here's something to get you started thinking about costs, so we can talk about it at the meeting.

Currently, the shadeport cost is taken out of the funds from the hourly rate. I feel that it would make sense for the monthly dues to cover the fixed costs unrelated to the number of hours flown. The hourly rate would cover costs related to actual flying. Here's how the numbers work out.

ANNUAL FIXED COSTS:
Insurance: $2165
Shadeport: $1320
PP Tax: $ 75 7 (Does tax go up as aircraft value goes up?)
$4242 ~ $50.50 /member/month

Fuel is $1.90 / gallon. Burns 8 gph. At $30 per hour to fly, that leaves a surplus of $14.80 per hour. If we fly 75 hours a year, that leaves a balance of $1110 to cover annual, maintenance, oil changes, improvements, and everything else.

Of course, this balance is directly related to how many hours are flown. I understand it was just over 50 hours last year... which would leave a balance of $740. The annual last year was just under $1000.

Some random thoughts, options, & opinions for discussion:
Should a part of the annual be considered a fixed cost? It's normally a minimum of $400, right? Monthly dues of $55 would give $378 toward the annual. The hourly rate surplus would leave a nice balance for other maintenance improvements.

We should keep the plane well-maintained to keep the value up. 3 members are instrument rated. An IFR plane is worth more, and more practical for trips.

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