UUCM Budget Discussion Sunday, May 17, 2020 1:00 pm Overview I - - PowerPoint PPT Presentation

UUCM Budget Discussion Sunday, May 17, 2020 1:00 pm

Overview

• I look for this year to bring a spirited discussion!

– Please bear with me as I explain where we are and where we, the Finance Committee and the Board, recommend we go financially. – Then, we can have an open discussion of our options and come to a conclusion of how to move forward.

• When the presentation is over, I will open up the

floor to questions and feedback. You can raise your hand (it’s a button at the bottom of your screen) or type your question or feedback in chat.

2019-20 Update

Summary (April 30, 2020)

Total Year to Date Net Income $242,417 Total Year to Date Expenses $258,388 Net Ordinary Income ($15,971)

Account Balances (April 30, 2020)

Checking and Savings Balances

Checking Account – Mutual Bank $ 17,555 Money Market – Mutual Bank $ 7,333 Pastoral Care Account $ 1,563 Petty Cash $ 62 Designated Funds $31,672 Total $59,907

Account Balances (April 30, 2020)

General and Restricted Fund Balances

Ball – General Fund Reserve $ 91,350 Askren Fund – RE $ 13,589 Crosley Fund $ 63,913 Templar Fund $ 233,288

Income (through 4/30/2020)

• Total net income so far is $250,594 vs. $315,257

budgeted for the full year.

• We budgeted $268,337 in Pledges.

– So far, we have taken in $217,070 or 80% of that total, and we are 85% of the way through the year. – We have lost some pledges due to people passing away or facing financial difficulties, but we were on track to reach our total before the shutdown. – No one has notified the church that this shutdown will impact their pledge, but there still may be an impact, especially if people are out of work or choosing to stay home longer.

• We budgeted $2600 in loose offerings.

– So far we have brought in $2491 or 96% of budget.

Income (continued)

• We budgeted $25,500 for fundraising.

– The Bazaar brought in $15,565 vs. $13,000 budgeted. – Fundraising misc. was budgeted at $7,500. The difficulties of this year for our church, the lack of a fundraising committee, and the shutdown will cause this to fall short. – The Service Auction was budgeted to bring in $5,000, and that has been cancelled due to the shutdown. – We will fall short for the 2019-20 year by ($9,609). – We now have a fundraising committee in place that will plan for a possible modified service auction for early fall and other fundraisers.

• Despite stock market challenges, our investments are
• utperforming expectations ($6,778 so far vs. $6,720

budgeted for the full year)

Expenses through April 30, 2020

• Our expenses are on track to be right at the

budget with a few exceptions:

– RE Expenses and Minister’s expenses look low – could be a timing issue or could be a result of the unusual circumstances of this year. Will have answer on that by the meeting. – Office equipment and software is above budget ($3,143 vs. $2,640 budgeted) because Nadine needed a new computer when hers died, and, as a result, new Microsoft products.

Expenses (continued)

– Our electric is $6,709 so far vs. a full year budget of $6590. – Our water is $5,071 vs. $5,000 budgeted for the full year – Our utilities are lower currently due to the building being closed, so we won’t incur that much more in these areas. – Repairs and Upkeep are above budget ($6,865 fs. $4,500 budgeted for the full year) due to AC repair last summer, parking lot light repairs, and boiler repairs. – But, overall, the Property and Maintenance Budget is still in range, although it will end up over because we still have custodians, electricity, water, and heat and maintenance expenses, just much lower than usual due to closure. – Postage and Unigram expenses are down.

Notes

• We have not taken any money out of our

investment accounts this year to cover any repairs or other projects.

• Investment accounts remain strong and have

gone up, despite economic uncertainty.

– Ball $91,350 vs. $82,782 last year – Askren (RE) $13,589 vs. $12,743 last year – Templar $233,288 vs. $216,884 last year – Crossley $63,913 vs. $58,385 last year

Current Financial Status

• We are doing ok right now, although we will likely

run short of our projected balanced budget for the 2019-20 fiscal year.

• It has been a tumultuous year within the church,

and 2020-21 promises even more changes.

• When we budgeted last May, and when we

revised the budget in October, we did not foresee the challenges that were coming with the COVID- 19 pandemic – of course!

• Pledging is trending up – both for the 2019-20

year and the 2020-21 year, which is good news.

Planning in the COVID-19 Era

• The UUA has provided many opportunities for

us to learn about how to best handle this unique time.

• We have attended many and read everything

we can find to help us.

• This budget represents our best attempt to

plan for 2020-21. If things change, we will make changes to our budget at the Congregational Meeting in October.

2020-21 Recommended Budget

Budget Process

• Staff and Committees turn in budget requests to the Finance

Committee who enters them into the Request Budget.

• Finance Committee enters pledge information from the

Stewardship Committee.

• Finance Committee reviews budget and makes cuts to get down to

the Austerity Budget (a balanced budget)

• Finance Committee Makes creates a Recommended Budget. They

forward all 3 budgets to the board.

• The Board reviews the budgets and makes changes.
• The Board approves a budget to be presented to the congregation

for approval.

• Budget is approved or amended at the Congregational Meeting.

Overview

• This is obviously a very difficult time to plan for much of anything.

There are so many unknowns:

– When will the church be able to open again? – How has and will this COVID19 situation effect our congregation financially? Loss of jobs, loss of retirement income, loss of assets may all impact their giving to the church. – How will our opportunities for fundraising be impacted? – How will pledges be impacted? – How will spending be impacted?

• But, we believe that it is important that we follow our values even

when times are tough. Maybe especially when times are tough.

• Therefore, this budget represents what we believe to be the best

combination of fiscal responsibility, social responsibility, and responsibility to our congregation.

Income

Income 2019-20 Budget 2020-21 Budget Change Pledges 268,327 270,700 2,373 Loose Offerings 2,600 2,600 Total 270,927 273,300 2,373

• Pledge numbers came directly from the Stewardship Committee. We

have pledges or commitments to pledge for that amount.

• Loose Offerings for 2018-19 are on track to slightly higher for 2019-20,

so we think this is a safe number.

Income

• We do not know if the bazaar will be able to continue this year, or what form it

will take. It depends on where we are with the virus closer to that time.

• But, we have a fundraising committee in place! They will look into many
• pportunities including a form of the service auction to be held in September,

the bazaar in November, new opportunities and ideas, etc. They will look at things that can be done virtually as well as in person.

• Social activities is an in and out – we spend any money we make.
• We have added $500 in expenses for the fundraising committee, so if they

bring in $8,000 here, and spend $500, they will still actually make $7,500. This looks like an increase, but it is not. Income – Fundraising and Social Activities 2019-20 Budget 2020-21 Budget Change Service Auction 5,000 5,000 Bazaar 13,000 13,000 Fundraising, Misc. 7,500 8,000 500* Social Activities* 1,100 1,100

• Total

26,300 27,100 500

Income

Income - Investment 2019-20 Budget 2020-21 Budget Change Interest and Dividends 1,620 1,620 Templar Fund Income 5,100 5,100 Total 5,720 5,720

• Even in this difficult year we have made $6,720 so far, so these numbers

seem relatively safe.

Income

• Building use is dependent on the number of people wanting to use the
• building. We thought $500 was safe (we have made $495 so far this year), but

it depends on how soon we can open the building safely to groups.

• Dedicated offerings are not really part of our budget since we send them to the
• rganization we raised money for, but they are listed. So far this year we have

brought in $9,852, so we are at 91% of our full year budget, and we are only 85% of the way through the year. Income – Misc. 2019-20 Budget 2020-21 Budget Change Building Use 500 500 Total 500 500 Dedicated Offerings 10,500 10,500

Income

Income – TOTAL 2019-20 2020-21 Difference 303,147 305,520 2,373

Expenses

Ministerial Expenses 2019-20 Budget 2020-21 Budget Change Salary 45,500 55,000 9,500 Housing Allowance 15,000 15,000

• Total Base Salary

60,500 70,000 9,500 Payment in Lieu of FICA (taxes) 4,628 5,355 727 Minister’s Pension 5,445 6,300 855 Health Insurance 8,086 8,086 Life Insurance 449 449 Dental Insurance 1,644 1,644 Disability 660 660 Professional Expenses 6,050 6,050 Sabbatical Accrual 2000 500 (1500)

• Comm. Minister’s Stipend

2,550 2,601 51

• Comm. Minister’s Expenses

250 500 255 Total 94,457 102,145 7,688

Ministerial Expenses Explained

• We increased the budget for the Minister’s Salary in
• rder to get closer to the UUA recommendations in
• rder to attract a qualified interim.
• This needed to be decided in order to advertise for an

interim minister on the appropriate timeline.

• We do not know the insurance costs for this minister

until we know who she or he is, so these are estimates.

• The community minister’s expenses are closer to $500

due to required expenses, so we increased this line item accordingly.

Expenses

Expenses – RE 2019-20 Budget 2020-21 Budget Change DRE Compensation 31,751 32,386 635 Pension 2,858 2,915 57 DRE Expenses 1,600 2,500 900 Health Insurance 8,959 8,959

• Coord. of Youth Programming

9,606 6,000 (3,606) RE Expenses 6,200 5,650 (550) Youth Groups 2,250 1,750 (500) Total 63,224 60,160 (3,064)

• This gives a 2% cost of living adjustment and shows that we value people.
• Professional expenses for DRE were requested higher to allow for attendance at a

conference that will help our church.

• We understand the importance of RE and youth programming to our church. But,

we believe that in lean times, there are ways to cut costs without sacrificing quality.

Youth Programming Cuts

• We love our RE and youth programming. These are big reasons people

choose a church, and they help our church to remain vibrant and thriving!

• We do not want to cut any current programming!
• The cut in the Coordinator of Youth Programming salary is due to a more

accurate reflection of current programming as we hire a new CYP.

– The current job description includes hours for Campus Ministry and for youth group meetings 50 weeks out of the year. – It also allows hours for a Youth Coordinator to lead Coming of Age and/or Boston Bound, neither of which is happening this year. – We do not currently have a campus program. – Youth Group meets only a couple of times over the summer, and not on holidays or other major event days. – The new job description and hours reflect a more accurate picture of what we are currently providing. – This allows for 8 hours/week of work (instead of 13) to be spread out as the new Youth Coordinator sees fit. – There is also $1387 in the designated fund for youth groups if needed.

Expenses

Expenses – Music & Worship 2019-20 Budget 2020-21 Budget Change Worship Associates 4,250 4,250 Music Director Salary 8,378 8,546 168 Music Director Prof. Expenses 750 750 Choir Director 4,798 4,894 96 Choir and Music Library Pianist 3,498 3,568 70 Guest Musicians 500 500 Total Music & Worship 22,174 22,508 334

• There are 3 Designated Fund accounts that are for music ($1,479), and choir

($2,637). We recommend using those to cover any additional needs for new music or guest musicians.

Expenses

Expenses – Office 2019-20 Budget 2020-21 Budget Change Office Admin. Salary 25,885 26,403 518

• Prof. Bookkeeper Salary

4,315 4,401 86 Insurance 7,487 7,487 Pension 2,718 2,772 54 Postage 300 280 (20) Office Supplies General 1,500 1,500 ACH Fees 180 180

• Office Equip and Software

2,640 3,052 412 Copier Expense 3,200 3,200 Unigram & Order of Service 1,800 1,500 (300) Telephone 1,310 1,152 (158) Internet Costs 805 876 71 Web Services 300 260 (40) Accounting Services 2,000 2,000 Total 54,440 55,063 623

Expenses

Expenses – Other Program 2019-20 Budget 2020-21 Budget Change Child Care/Nursery 3,900 4,330 430 Workers Compensation 1,250 1,250 Payroll Taxes 7,820 7,122 (698)

• Childcare/Nursery costs increased due to expected demand (based on 2019-20

actuals)

Expenses

Expenses – Prop. Maintenance 2019-20 Budget 2020-21 Budget Change Custodians 16,865 16,865 Electricity 6,590 6,590 Equipment Purchases 1,000 1,000 Fuel 4,500 4,500 Grounds 3,800 3,800 Insurance 4,000 4,000 Maintenance Supplies 1,700 1,700 Pest Control 500 500 Repairs and Upkeep 5,500 5,500 Security System 400 400 Water and Sewage 5,000 2,000 (3,000) Total Property Maintenance 49,855 46,855 (3000)

• Decreased water and sewage without the leak

Expenses

Expenses – Committees 2019-20 Budget 2020-21 Budget Change Adult RE Committee on Ministries 50 50 Caring Committee 50 50 Fellowship Sight and Sounds 300 300 Social Justice Stewardship 329 600 271 Kitchen 200 200 Publicity Membership 300 300

• Denom. Affairs

4,698 5,000 302 Total 5,627 6,500 873

Committee Expense Notes

• Added Sights and Sounds – previously their spending came

from worship associates.

• There is $809 in the Designated Fund leftover from the

Flagpole fund for the Social Justice Committee to spend.

• Stewardship will be utilizing a different approach next year

and has requested an increase in funding.

• We are proposing to spend well below our recommended

contribution to UUA, but we want to increase it slightly. We have utilized a lot of useful resources from UUA this year to help with our ministerial transition, and to help us through the COVID-19 crisis.

Bottom Line

Total Income 305,520 Total Expenses 305,933 Total Net Income minus Expenses (413)

What if? – Budgeting through Covid19

• So, you might be wondering – what if?

– We can’t hold the Bazaar – We can’t open for quite awhile – Pledges go down due to financial hardship – Investments go down – And so many other questions

• If that happens, it is our recommendation that we

consider utilizing the Ball Fund.

– This fund is setup to help us through difficult times, and this definitely counts!

What If? - Continued

• Other options considered

– Make significant cuts to programming or staff

• We believe that this crisis is temporary (however long

it lasts), and that we need to be ready to move forward.

– Churches who respond to crises with significant cuts usually hurt themselves in the long run (this was definitely true for many UU churches after the 2008 financial crisis.)

• In general, you don’t want to take money out when the

market is down, but our investments have performed well so far. And, this money is there for a reason.

Why we are recommending this budget

• We believe this budget combines fiscal

responsibility and belt tightening with hope for the future and an adherence to our values.

• We think it sets us up for success moving

forward.

• We believe that this does the most with the

least spending.

• We are now open to questions and feedback.

Questions, Comments, Feedback