BBR tightens its purse strings

Black Butte Ranch (BBR) is not immune to the economic downturn that is affecting the region's housing market and destination resorts. Determined to weather the storm, the Ranch has instituted a number of financial changes designed to put the resort on an even keel through hard times.

An increase in dues was recently approved by a narrow margin and will provide significant economic relief for the resort.

"The increase of $100 per month on dues was approved by 51 percent to 49 percent," said BBR general manager Loy Helmly. "We are a dues-driven organization, as the property owners have decided to have a minimum of commercial activities on the property. The dues are our main income stream."

The increase in dues will provide a sense of stability to the resort which over the past few years has experienced a set of financial setbacks, ranging from cost overruns with capital improvement projects to spiraling expenses in both labor and materials costs for the normal operating budget. At the same time dues income remained fairly constant.

The increasing costs have forced cutbacks and serious belt tightening for BBR. This fiscal year will see a number of changes in personnel and a significant reduction in staff numbers.

"We have eliminated nine full-time, year-round positions and two part-time, year-round positions," said Helmly.

Reductions in seasonal staff are also planned for this year.

"In addition to the 11 year-round positions, we are eliminating six positions from recreation. Four will be lifeguards, and two will be staff for the rec center. These combined reductions will be a big help in the budget," said Helmly.

The total savings in payroll dollars will prove significant over the next year and amount to an actual lowering of payroll expenses by $369,103 and payroll benefits by an additional $89,399. The total reduction in expenses for these changes will amount to $458,502 over the next fiscal year from April 2008 - March 2009.

Other expenses in the new fiscal year budget were reduced by $491,660, providing combined reductions in expenses over the next year of just under a million dollars. The biggest cost cutting measures came in advertising. This budget has been slashed by $126,000. Cuts in natural resource projects will net an additional savings of $104,000.

Very few areas of Ranch expenses were left untouched.

By combining the savings and the increase in dues, Helmly believes that BBR should be on solid footing for the foreseeable future, although he is keeping a close watch on the whole operation.

"We have placed the Welcome Center on hold and also our plans for the Lodge. We are looking at any area that will allow us to place ourselves in a stronger financial position," said Helmly.

BBR has been an evolving operation, according to Helmly, and far from stagnant.

"Our relationship to Sisters has really changed over the years. When the Ranch opened 35 years ago, it became a driving force for Sisters, but now Sisters is becoming a driving force for the Ranch," he said.

The growth of Sisters has been good for BBR in many ways, but in other ways it has produced some growing pains. Decades ago the only upscale restaurant in the area was at BBR. Now, the Ranch is surrounded by quality restaurants from Suttle Lake to Camp Sherman to Aspen Lakes to Sisters, and competing in that market has been a challenge for the BBR restaurant.

Area changes have also brought some blessings to BBR.

"The growth of Sisters and the festivals have brought a larger number of guests to the Ranch. The FivePine complex has brought people here. Sisters and the Ranch do have a symbiotic relationship, and there is a benefit for both in our relationship," said Helmly.