A Message from the President
Council growth and diversity continues

(Reported below are excerpts from the Annual Report of Retail Council President and CEO James Sherin prepared for the Council's Executive Committee)

I am pleased to report that the Retail Council of New York State (RCNYS) has ended its 2006-2007 Fiscal Year in excellent condition. Both the Retail Council and its for-profit subsidiary, Retail Council Services Corp. (RCSC), remain financially sound, enjoying record high dues revenues and solid income streams from its primary member services programs. 

The Retail Council in 2007 again scored significant legislative victories to benefit its diverse membership and the entire retail industry. Both the number of laws which the Council lobbied and supported, as well as the growing volume of bills blocked or vetoed which we opposed, underscore the effectiveness of the Retail Council’s government relations advocacy. Special thanks and appreciation are extended to Executive Vice President and Director of Government Relations Ted Potrikus for his artful and effective management of the government affairs programs throughout a lengthy and often tense legislative session. 

The entire management team and support staff of the Retail Council and Services Corp. did an outstanding job throughout the past year representing the best interests of our members. Rob Leonard, director of membership and marketing and Rebecca Marion, director of public affairs, and their respective teams worked in close partnership on a variety of fronts with the single purpose of improving and expanding the delivery of vital member services and programs. 

FINANCES
The Retail Council and Services Corp. underwent a complete independent financial audit at the conclusion of the 2006-2007 fiscal year and the results reveal another very profitable year for the organization. Our fund balance remains strong and secure, and our total income for both companies surpassed budgeted projections and our total expenses came in well under budget for the year. 

MEMBERSHIP PROGRAMS
While it remains a difficult challenge to recruit and retain members in today’s highly competitive retail environment, the Council is working hard to offer a strong blend of money-saving programs and value-added services that a retailer of any size and format will find appealing and viable. I’ve already mentioned the many accomplishments of our government relations program. Presented below are the achievements of the Council’s merchant and insurance services programs, which greatly contributed to the Council’s success in 2006-2007:

MERCHANT SERVICES
The Council’s credit card processing program offered to its members through Global Payments Inc. continues to be one of our strongest member service programs. The state veterinary associations throughout the country that partner with the Retail Council and Global Payments for their credit card processing are growing their programs at a significant rate. The level of satisfaction by the members of those associations, as well as the executive directors, is increasing every day, and we will continue to work very hard to expand that portion of our credit card portfolio. 

We anticipate the development of new partnership agreements with other industry groups and associations, both within and outside of New York. The early results have been quite impressive and the expectations for future growth are bright. 

INSURANCE SERVICES
The Council’s Workers’ Compensations Insurance Safety Group underwritten by the New York State Insurance Fund continues to be the engine driving all of the insurance offerings to our members. We are pleased with our partnership with the State Insurance Fund and enjoy a solid working relationship with NYSIF’s top leadership and management. 

Adding sparkle to this crown jewel of member service programs was the return of another 45 percent dividend to qualified Safety Group participants in November 2006 for the 2005 policy year.  Checks totaling more than $4.8 million were mailed to eligible Council members, continuing an outstanding 28-year history of consecutive dividend returns averaging more than 38 percent. 

The Council’s statutory disability insurance program (DBL) offered through the First Rehabilitation Life Insurance Company produced significantly less commission revenue than was expected due to premium credits First Rehab has to issue to all insureds to compensate for an inadequate loss ratio over the past few years. This loss of commission income, however, translated into lower premiums for Council members receiving the DBL insurance through our program. We anticipate a
return to normal premium levels and commission payments before the end of the next fiscal year. 

RETAIL COUNCIL SERVICES CORP.
Retail Council Services Corp. (RCSC), the for-profit wholly owned subsidiary of the Retail Council of New York State, continues its successful operations. The RCSC Board of Directors meets three times annually, and is advised by outside counsel when necessary. Current RCSC Board members are John D’Aleo, Michael Keegan, Ted Potrikus, James Quaremba, James Sherin, Grace Sterrett, Leonard Tucker and Estelle Yarinsky. My thanks to all of these Board members for their valued service and important contributions. 

ACKNOWLEDGMENTS
As always, the overall success of the Retail Council of New York State is a clear function of the collective and collaborative efforts of its entire staff. My talented management team, Ted Potrikus, Rob Leonard and Rebecca Marion, and I continually call on the services, energies and expertise of the Council staff and to each of them – David Allen, Virginia Hitchcock, Michele Coons, Carol Gensicki, Laura Barry, Dennis Eck, Ken Rutsky, Melissa Googas and Mark Connor – I express my thanks and appreciation for all they do, day in and day out, to advance the mission of the Council. 

The Retail Council also went through a leadership change in 2006-2007 when former Chairman Ed Goldberg stepped down from the chairman’s chair due to pressing business responsibilities at his company, Macy’s, Inc. Filling in as interim chairman for the remainder of the 2006-2007 year term was Clint Hegeman, owner/operator of the Silver Parrot and the Council’s longest serving vice chairman. 

I can’t say enough about the valuable contributions Ed Goldberg made personally and professionally to the growth and development of the Retail Council. Regardless of the request, circumstance or dilemma, Ed was always the first in line to offer assistance, guidance and leadership. His respect for the management of the Retail Council enabled all of us t o excel at our jobs and to offer the very best advocacy and benefits to the retailers throughout New York. He was the quintessential chairman. 

There was also no doubt that with Clint Hegeman graciously agreeing to serve as chairman, the Council wouldn’t miss a beat. I don’t know of any Council member who has a better understanding of the association and its mission and Clint brought a refreshing perspective to the chairmanship as a successful independent retail merchant. I am most grateful for his support and dedication. 

I want to acknowledge with gratitude the work and contributions of the rest of the team of officers in 2006-2007 – Vice Chairs Sharon Fenno, and Michael Shaffer, and Secretary-Treasurer Bob Kayne. Each of them dedicated hours of valuable time and expertise to help administer and oversee the business of the Retail Council. New York retailers are well-served by their efforts and counsel. 

Sincerely,
Jim Sherin