Fus plan and budget forum 05.13.12 revPresentation Transcript
Plan and Budget Forum May 13, 2012
AgendaOpening, Rev. Michael SchulerWelcome and agenda review, Sandy Eskrich, BoardPresidentOverview of Vision of Ministry, Sandy EskrichBudget overview, Will Salvi, Finance Committee Chair Susan Koenig, Church AdministratorDiscussion, Sandy EskrichClosing, Michael Schuler 2
2012-13 Vision for Ministry 3
2012-13 Vision for Ministry• Motivate our Members to Live the UU Principles 4
2012-13 Vision for Ministry• Motivate our Members to Live the UU Principles• Strengthen Ties among Generations 5
2012-13 Vision for Ministry• Motivate our Members to Live the UU Principles• Strengthen Ties among Generations• Increase Connections among Members 6
Budget Overview• Capital Fund & Debt Update• Re-Cap of Current Operating Budget Results• 2012-13 Operating Budget – Overview• Summary 7
Foundation and Other Special Gifts Annual AnnualCapital Pledges Pledges Revenue Restricted Funds CAPITAL OPERATING FUND FUND CAPITAL EXPENSES OPERATING -Preservation MORTGAGE MORTGAGE EXPENSES -Equipment 60% 40% -Furnishings FUS Finances - Overview
Foundation and Capital Fund 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 $416,079 as of April 30 Capital Campaign status Total pledged: $6.3 million Total collected: $6.08 million (97%) Expected in 2012: $45,000 Foundation (Stonehaulers): $25,000/year, depending on market
CAPITAL FUND Projected Capital Expenses $105,000 in Fiscal year 2012-13 Roof Planning Equipment purchase/replacementCAPITALEXPENSES Future Projects-Preservation Roof replacement (summer 2016)-Equipment Organ Console replacement-Furnishings Possible Isom House addition
MORTGAGE Debt Update• Payments on term loan began March 2012• Principal balance as of April 30: $4,460,000• Interest rate, fixed – 6.28%• 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 % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%
CAPITAL OPERATING FUND FUND MORTGAGE Mortgage 47% 53% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $190,000 53%
CAPITAL OPERATING FUND FUND MORTGAGE 74% Mortgage 26% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $190,000 53%2013-14 $265,000 74%
CAPITAL OPERATING FUND FUND MORTGAGE 100% Operating Budget: Debt Repayment Plan % of Total DebtFiscal Year Debt Repayment Repayment2011-12 $140,000 40%2012-13 $190,000 53%2013-14 $265,000 74%2014-15 + $360,000 100%
Revised Debt Plan for Operating Budget Operating budget contribution to Capital Fund (loan payment) 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17+New Planstarting2012-13 $ 140,000 $ 190,000 $ 265,000 $ 360,000 $ 360,000 $ 360,000Original $Plan 140,000 $ 240,000 $ 350,000 $ 360,000 $ 360,000 $ 360,000 We have moderated our internal debt payback plan to bring our need for new revenue closer to our expectation.
FY End Capital Fund Balance$500,000$450,000$400,000$350,000$300,000$250,000 New Plan 2012-13$200,000 original plan$150,000$100,000 $50,000 $- 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 • More moderate increase in Operating Budget portion of loan payment • Uses more capital funds in the next two years • Leaves some reserve throughout • No change in the schedule for the Operating Budget to take on full payment of loan
Ongoing Challenge – Growth in Debt Payments• We continue to face the challenge of maintaining our program while increasing debt payment from the operating budget. Increase in Expenses Implied Pledge Related to Debt Growth 2012-13 $50,000 - $100,000 4-9% 2013-14 $75,000 7% 2014-15 $100,000 8%• Recent Pledge growth history has been below this implied growth, although our long-term track record implies this is possible.
Current Year Budget• Total pledges were up 4% ($45,000) over 2010-11• Number of pledging households increased 8%• Expect to end the year with normal (95%-100%) pledge fulfillment, though a pattern of sluggish pledge payments has emerged• Costs are in line with expectations• Cabaret set a new record, netting over $32,000.• Bottom Line – We expect to finish the year in balance.
2012-13 Operating Budget Goals• Support the Vision of Ministry• Make prudent structural changes to support core programs whilemanaging expenses• Continue to retain and support high quality ministers and staff.• Support member involvement and fundraising to stay on our newcourse of debt repayment• Balance the Budget
2012-13 Operating Budget – Overview•Total Revenues – Up 2% (+$35,000) – Pledge Revenue is budgeted to remain flat with 2011-12 • We have 100 fewer pledges than at this time last year • The average pledge is about $100 higher than at this time last year – Will use one dedicated contribution and one generous bequest in support of our staffing plan ($37,000) – We expect an increase in Adult RE revenue, due to fees for Quest participants – Decrease in use of Restricted Funds ($29,000) reflects the end of our use in 2011-12 of a dedicated bequest to support Music/RE
2012-13 Operating Budget –Overview• General Expenses & Debt Repayment - Up 7% (+26,000) – Primarily due to ramping up our debt repayment ($50,000) – Other costs are down 24% • move away from frequent printed guides and catalogs • end of our contract with Dan Hotchkiss.• Program Expenses – Actual Program remains flat – Changes in our accounting have effect of 19% increase • Now run outreach offering and Eviction Prevention expenses through programs • Increase in RE expenses reflects pass through costs (Quest and Coming of Age) – We are continuing our current rate of contribution to UUA and CMwD
2012-13 Operating Budget – Overview• Personnel Related Expenses – Down 3% (-$35,000) – Structural Change • Leave 50% Social justice position unfilled ($20,000 savings first-year) • Plan early departure of Associate Minister (end of 2012-13 fiscal year) and sun-setting that ministerial position ($46,500 savings in 2013-14) • Eliminate dental insurance benefit for staff ($11,000 savings) • Reduce senior minister professional expenses – One-time change to bridge to Associate Minister sunset • One-week staff furlough ($17,000 savings) • Use bequest and special gift ($37,000) – Will not fund 4 raises we had planned to bring staff in line with local and professional compensation standards
Summary• Significant staff changes make 2012-13 a challenging transitional year• Finding the capacity to handle our debt payments is a continuing challenge over the next 3 years, and is exacerbated by the slow pledge growth we’ve been seeing.• The proposed budget for next year reflects hard choices about the best way to meet our mission given these challenges.• Pledge growth (driven both by new member growth and increases to average pledges) needs to improve to prevent future painful choices• The keys to making this process easier going forward are deepening member engagement, growth in new members, and new sources of funding.