Pi Kappa Phi - University of Alabama

Spring 2015 Newsletter

Omicron Chapter of Pi Kappa Phi at the University of Alabama

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OMICRONICLE PAGE 4 T hank you for your continued support of our fraternity. The Chapter House was a huge financial commitment, but in the end I truly feel that we have the premier fraternity house at the University of Alabama. This was a very expensive project, but after much planning and support we were able to execute it and not spare any expense. Our cost for out-of-house membership is right in line with other fraternities on campus at around $3,700 per semester and in-house membership falls at $6,000 per semester. While those numbers may seem high at first, this is a bargain for students at UA. We provide hot meals during the week and cold meals on the weekends, as well as hot meals for game-day events and numerous social events. We are proud to say the cost to be a member of the fraternity and live in the house is still less expensive than living in a dorm with Alabama meal plans. This shows the misconception that only wealthy people can be in a fraternity is simply wrong! Fraternity membership is available to anyone. We aim to be good stewards of our money as an alumni group. The Omicron Club owns the house and through part of the membership bills we receive rent nine months a year to maintain the facilities. We try and keep six months in reserves in case something unexpected happens and we always try to hold our costs down as low as possible. Now that we have built our final Chapter House we must maintain it. We have made a commitment as a Chapter to pay down the debt as quickly as possible so any surplus in funds and unexpected alumni contributions each year will be used to reduce our principal balance to zero. Again, thank you for the donations that you have already given or intend to give. Sincerely, David Hartley Richardson '97 Treasurer The Omicron Club, Inc. The Building for the Next 100 Years campaign has fostered brotherhood among brothers of all ages. Where Does My Money Go? New House Budget Contract Price $6,405,780 Costs Furnishings $175,000 Development costs fundraising $125,000 Related construction $70,000 Site development $848,000 Contingency $323,789 Architect/engineering fee $434,360 UA project management fee $114,714 Telecommunication and data $40,000 Security $20,000 Audio visual $65,000 Fees $8,000 Total project cost $8,629,643 Revenue: Sale of old house $1,759,400 Omicron Club operating account $786,360 Fundraising $1,500,000 Total: $4,045,760 Net loan after fundraising $4,583,883 Annual Operational Budget Revenue: House rent from brothers $405,000 ($45,000 per month 9 months) Expenses: Debt service $360,000 Property insurance $25,000 National contributions and support $3,000 Repairs and maintenance $10,000 Other incidentals $5,000 (Work weekends, OC meetings, etc.) Total annual expenses: $403,000 Estimated net surplus or deficit: $2,000 Please note: We have six months of cash reserves to operate. OMICRON CLUB BUDGET PKF

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