As most of you know, 2½ years ago the State of Ohio enacted rules that heavily regulate Bingo. The good news is that all forms of Bingo, including instant tips, became legal. The bad news is that the laws severely restrict how the profits from Bingo can be spent. 55% of bingo profits must be distributed to charities under the new rules, leaving us only 45% to use for operating our Eagles. This has impacted every aspect of operating our Eagles, a job that you as members have entrusted to the Trustees through election to the position. Over the past year, it has become obvious to the Trustees that changes must be made in the way we do business in order to keep our Eagles in good financial standing. Without changes, our Eagles will soon be experiencing financial difficulties. Some, but not all, of the changes already implemented include:

1. Since we keep 100% of our food and drink profits, we have made a conscious effort to increase this business. We started Sunday breakfast and 3^rd Friday of the month dinner specials, increased food business through lunch and other food specials, and increased our catering and banquet business.

2. Scaled down the annual picnic, which reduced picnic costs 75% over previous years.

3. Eliminated the annual Thanksgiving dinner.

4. Limited our inventory to control the cost of goods "sitting on the shelf".

5. Switched our paper towels and other paper goods to realize a savings of 50%.

6. Modified our insurance packages (health insurance of our full-time salaried employees and our building and liability policies) to reduce costs.

7. Developed a bidding process for certain services provided to the Eagles to ensure that the services are provided at the lowest cost possible.

8. Your officers have not accepted any pay for the last 2½ years.

The above changes have helped to a certain degree. However, the cost of doing business continues to rise. As you all know, electric and natural gas costs have risen significantly, and fuel prices have gone up, which is reflected in the price we pay for everything. Beer, liquor, and food prices have increased. In short, more changes need to be made. The Trustees, with input from some of our bartenders and members, have looked for other ways to control our costs, such as our business hours and the prices we charge for food, alcohol, and other services. Effective December 5^th, the following changes will become effective:

1. Business hours will be modified. This will serve to do two things: 1) reduce payroll costs while at the same time providing a sufficient number of bartenders to attend to our members, and, 2) reduce the hours when current business does not justify being open. The new business hours will be: Monday, 11AM to 7PM; Tuesday - Thursday, 10AM to 10PM; Friday & Saturday, 10AM to 12AM; Sunday, 8AM to 4PM.

2. Canned beer prices will be increased to $1.50 per can ($1.25 during Happy Hour, etc.). Members can still enjoy a beer or two at St. Marys Eagles cheaper than just about anywhere in the area.

3. Some food items will be increased (our last increase was in July 2004). Again, members still will not be able to enjoy a good, home cooked meal or order from the menu any cheaper.

We as Trustees realize that change is sometimes difficult. However, today’s business climate dictates that every business take a good, hard look at their practices and modify them as necessary. Businesses that don’t run the risk of going out of business. Our members have given the responsibility of operating the St. Marys Eagles to the Trustees. To do so, we must consider what is best for our Eagles as a whole, and we hope that each of our members understand that the changes we make, including possible future changes, are necessary. We are always looking for ways to improve our Eagles, and encourage each of you share any ideas you may have.