FUS Mid-year Financial Update January 2012

FUS Financial Update

Foundation and Other Special Gifts Annual AnnualCapital Pledges Pledges Revenue Restricted Funds CAPITAL OPERATING FUND FUND CAPITAL OPERATING EXPENSES MORTGAGE MORTGAGE EXPENSES -Preservation -Equipment 60% 40% -Furnishings FUS Finances - Overview

Foundation and Capital Budget and Debt UpdateCapital Pledges Special Gifts CAPITAL FUND CAPITAL EXPENSES MORTGAGE -Preservation -Equipment -Furnishings

Capital Pledges Foundation and Special Gifts Capital Fund - Revenue CAPITAL Capital Fund Balance FUND $348,106 as of December 31 Capital Campaign status Total pledged: $6.3 million Total collected: $6.07 million Expected in 2012: $45,000 Unpaid pledges (2007-2011): $251,000 Foundation (Stonehaulers): $40,000/year, depending on market

CAPITAL FUND Ongoing Capital Expenses $140,000 in FY 2011-12 -Hearthroom window refurbishingCAPITAL (funded by the Friends)EXPENSES -Isom House windows-Preservation-Equipment -Isom House remodeling-Furnishings -Roof Planning -HVAC changes

MORTGAGEDebt Update•Construction loan (interest only) converts to term loan in 2012, firstpayment March 2012•Loan up for renewal in 2017•Total debt entering term loan: $4,472,015•Interest rate, fixed – 6.28%• Total Annual payment FY 2011 – 2012 - $303,000 •Principal - $25,000 •Interest - $278,000 (transition from interest only construction loan to Principal and Interest term loan)•Total Annual payment FY 2012-13 - $357,000 •Principal - $76,000 •Interest - $281,000

CAPITAL OPERATING FUND FUND MORTGAGE Mortgage 60% 40% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%

CAPITAL OPERATING FUND FUND MORTGAGE Mortgage 33% 67% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $240,000 67%

CAPITAL OPERATING FUND FUND MORTGAGE 97% Mortgage 3% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $240,000 67%2013-14 $350,000 97%

CAPITAL OPERATING FUND FUND MORTGAGE 100% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $240,000 67%2013-14 $350,000 97%2014-15 + $360,000 100%

Ongoing Challenge – Growth in Debt Payments• Ramp-up of debt repayment and inflation make maintenance of status quo challenging Increase in Expenses Implied Pledge Related to Debt & Inflation Growth 2011-12 $75,000 - $95,000 6-8% 2012-13 $100,000 - $150,000 9-13% 2013-14 $110,000 - $140,000 9-13% 2014-15 $10,000 - $30,000 1-2%

Capital Fund Projected Year-end Balance $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2011-12 2012-13 2013-14 2014-15 2015-16 Dec-16By 2016, we hope to call on our capital fund for a roof replacement(2014) and organ improvement (2016). These projects are within ourreach if we meet the challenge to pay our mortgage from operatingfunds by 2014-15.

-Fees -Rentals -Foundation -Parking Annual -Other Restricted Pledges Fundraising FundsMid-Year 2011-12Fiscal Status OPERATING FUND OPERATING EXPENSES

Operating Revenues 2011-12 Revenues: $1.61 mil.• Member pledges make up thebulk of our annual revenues – in2011-12 we expect about $1.17million in pledge revenue.• Our other sources of revenuegenerate a combined $440,000.•The use of over $70,000 inrestricted funding (primarily forRE, Music, and Quest) has Pledge Payments (73%)allowed us to avoid cutting back Other (11%)those programs this year. Foundation and Restricted (8%) Rent (8%)

Mid-year Revenue Update– Pledging Households • 893 households have so far pledged $1.18 million • 3% increase in the total amount pledged – slightly under budget (.7%) • 8% increase in number of households pledging– Pledge revenue • 47% of pledged amount has been paid • Thank you to all who are current on your pledges!– Other revenue • YTD other revenue totals $259,000 and is 59% of the budgeted total for the year.

Expenses 2011-12 Expenses: $1.609 mil.• The bulk of our expenses relate to ourstaff and our programs – in 2011-12these two areas account for almost 75%of our total budget.• We have little ability to significantlyreduce general officeexpenses, building maintenance &utilities• Debt service is not a flexible expense.• Shortfalls in revenue will directly Staffing & Program (76%)impact personnel and programspending. Genl (Office and Bldg) (15%) Debt Service (9%)

Mid-Year Expenses UpdatePersonnel  68% of budget  YTD 48% of budgeted personnel costsGeneral Expenses (less debt repayment)  15% of budget  YTD only 37% of budget expendedProgram Expenses  8% of budget  YTD only 44% of budget expendedDebt Repayment  9% of current budget

Operating Budget compromises• Children’s RE, music, and Quest sustained this year by restricted funding• Social justice position is only half-time• Fundraising professional is only half-time• UUA denominational contribution is at 5% of recommended level

Summary• The major challenge we face as a congregation is building the capacity to increase our pledge revenue so that in the coming years we can meet our debt payments while at the same time enriching FUS programs.  We need at least 10% growth in pledges to avoid difficult decisions each year that will impact staff and programs.• Programs are sustained this year by the use of earlier directed gifts and dedicated fundraising  We recognize it will be difficult to maintain this level of spending next year.• Managing the transition to full debt repayment:  Deepening member engagement,  Growth in new members, and  New sources of funding.

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FUS Mid-year Financial Update January 2012

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