2020 Budget | Motion Motion : The Council of Elders recommended at - - PowerPoint PPT Presentation

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 These 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

• ur 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: $5.4M, 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: $5.3M, 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: 1. Proposed 2020 "Fill These Cities: 25 x ’25" budget of $10.4M 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. 7. “Mortgages” includes mortgage payments associated with our North 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

• perating 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 These 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.

Questions?

Proposed 2020 Operating Budget |