2020 Proposed Budget | Fill These Cities: 25 x ’ 25 January 26, 2019 SPREADING A PASSION FOR THE SUPREMACY OF GOD IN ALL THINGS FOR THE JOY OF ALL PEOPLES THROUGH JESUS CHRIST.
2020 Budget | Motion Motion : The Council of Elders recommended at their 11/5/2019 meeting a 2020 “Fill T hese Cities: 25 x ’25” operating budget of $10,400,000 for the congregation to approve at the Winter Quarterly Strategy meeting on January 26th, 2020. Note: • This is a $200K reduction (1.9%) from our 2019 congregationally-approved budget of $10.6M (approved at 1/27/2019 QSM).
Budget | Recap December 2018 concluded month 25 of Bethlehem’s 25 -month One Fund “Fill These Cities: 25 x ’25” Accelerating the Next Decade of Spreading initiative (12/1/2016 to 12/31/2018), and included funding for our regular operating budget and building a 24/7 South Campus facility. Fill These Cities: 25 x ’25 integrated Bethlehem’s four main ministry components into one operating budget: • strengthening our “up, in, and out” core ministries • building a 24/7 South Campus (and now, paying for that campus) • planting 25 churches • engaging 25 unreached, unengaged people groups (UUPGs)
2020 Operating Budget | Process Late Summer / Fall 2019 • 2020 operating budget outline reviewed with pastoral staff lead team and Financial & Property Administrators (FPA’s) early fall • Reviewed initial proposal and budget range with all elders 10/1 • FPA’s reviewed and voted to recommend to elders 10/17 • Lead team reviewed and approved on 10/22, and organizational elders reviewed and voted to recommend to congregation on 11/5 December 2019: • Presented to congregation at Annual Meeting on 12/15 January 2020: • Elders reviewed 2020 budget on 1/7, based on 2019 end-of-year • Congregational vote on 2020 budget at Winter QSM tonight
2019 Budget | Review Context 2019 Budget: $10.6M Program portion of budget: $5.4 M, which includes … • $76K to cover anticipated construction loan interest associated with South Campus buildout project • Additional mortgage payments associated with North Campus and South Campus, once South Campus mortgage was set March 2019 Staffing / payroll portion of budget: $5.2M
2020 Budget | Overview $10.4M operating budget: Reviewed each segment of 2019 operating budget over past 5 years to identify and better quantify important ministry areas in 2020 – variation of zero-based budgeting Program portion of 2020 budget: $5.3 M, which includes … • $460K to cover anticipated South fixed rate mortgage (at 4.35%) • Additional $320K for mortgage payments associated with North Campus, to fulfill commitment that “ minimum of 7.5% of operating budget be used for mortgage debt reduction ” - see 4/2/2017 motion • Focused on most essential ministry priorities Staffing / payroll portion of budget: $5.1M
2020 Budget | Handout Details
2020 Budget | Proportional Breakout Budgeted Funding By Ministry Area Upreach (14.0%) Inreach (19.0%) Outreach (36.6%) Support (22.9%) Mortgage (7.5%)
2020 Budget | Handout Notes Notes: Proposed 2020 "Fill These Cities: 25 x ’25" budget of $10.4M 1. represents 1.9% decrease compared to 2019 budget of $10.6M. 2. The program/pass-through portion of the 2020 budget is ~$5.3M (51%); the staffing/payroll portion of the budget is ~$5.1M (49%). 3. The budgeted amount for Leadership Development is primarily associated with "gifts-in-kind" to Bethlehem College & Seminary. 4. Global Outreach includes funding for Global Diaconate. 5. General & Administration includes funding for bank and credit card fees associated with contributions. It also includes funding for Human Resources, Accounting/Finances, and Office functions at each campus.
2020 Budget | Handout Notes, continued Notes: 6. Property includes $75K to accelerate replenishing building reserves depleted by DT HVAC and Commons roof replacement projects, and funding for Kitchen ministry, DT 4-plex, and DT warehouse. “Mortgages” includes mortgage payments associated with our North 7. and South campuses ($1.8M and $6.8M, respectively) 8. Any cost savings surplus at the end of 2020 will be applied first to help replenish our operating reserves (goal: 10% of operating budget), and next to help replenish building reserves. 9. Per congregational action at 4/2/2017 special meeting that approved South Campus build and fund motions, a minimum of 7.5% of the operating budget is applied toward debt service associated with mortgages on our campus facilities, until the mortgages are paid off.
2020 Budget | Does NOT Include … Other Bethlehem “designated” funds | • Helping Hand • Majority of Campus Outreach funding • Majority of (Short Term) Ministry Mobilization funding • Majority of contributions to two main Bethlehem ministry “subsidiaries”: Bethlehem College & Seminary, and City Joy (formerly Bethlehem Ministry Initiatives) • Designated contributions to pay down current (and future) mortgages
2020 Budget | RECAP Motion : The Council of Elders recommended at their 11/5/2019 meeting a 2020 “Fill T hese Cities: 25 x ’25” operating budget of $10,400,000 for the congregation to approve at the Winter Quarterly Strategy meeting on January 26th, 2020.
Proposed 2020 Operating Budget | Questions?
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