BUDGET 2010-11

Budget in PDF Format (this may arrive in your downloads folder or just upen in PDF)

Budget in Excel  (this may arrive in your downloads folder)

Narrative in rtf format  (this may arrive in your downloads folder)  


May 24, 2010

The Board and the Budget Committee jointly offer this narrative report regarding the proposed budget for Fiscal Year 2011 (FY11; July 1, 2010 to June 30, 2011). We encourage you to contact us with any questions or concerns prior to June 6 so that we can address those properly in advance of the congregational meeting and vote.

The budget process this year was only slightly less troublesome than last year. While every penny counts and we are grateful for the generous commitments of our congregation, the late notice of these commitments makes the process extremely difficult and worrisome each April and May. We encourage the congregation to make pledge and gift commitments next year during the defined Stewardship campaign period, without delay. It is a laborious process to follow up repeatedly with some congregants. It is emotionally draining and unfortunate that at the conclusion of the defined Stewardship campaign period in early April we have to tell staff they are facing a 20% or greater reduction, causing fear and worry, and then have funds eventually come in that abate that reduction.

Our Stewardship and Capital Campaign Committee members as well as the visiting stewards have done a phenomenal job these past few months. The pledge income as of May 22 is $321,886 and the gift income is $38,500. These are healthy commitments but $10,000 less than FY10 and $25,000 less than FY09.

We hope this narrative will provide you with the knowledge you need to reflect on and decipher our current financial picture as well as support our staff and continue the great works of this community.

The Board created a list of priorities to guide the budget committee as it prepared the FY11 budget. Those priorities are detailed below and include the status of fulfilling each priority.

PRIORITIES (in order)

1. Prepare a balanced budget. Status: completed.
2. Include daily operating expenses of new site. Status: completed. This budget includes mortgage, utilities, and insurance for the new building totaling $136,650. Also included is $136,650 in income from the Capital Campaign to pay for these expenses.
3. Resume full dues to PNWD and UUA. Status: partially funded. PNWD dues at 100%; UUA dues remain at 50%.
4. Restore salary and professional expenses for Minister, Director of Religious Education and Music Director to FY09 levels. Status: partially funded. With the minister leaving and interim arriving, the payroll expenses have changed for that line item and are not comparable. The Director of Religious Education opted to retain the 2% reduction for FY10 to balance the staffing needs of the RE program. The Music Director was returned to FY09 levels. Professional expenses for the Director of Religious Education and the Music Director were retained at FY10 levels.
5. Restore FY09 funding levels to Programs. Status: unable to fund.
6. Fund sabbatical reserve. Status: not needed.
7. Restore Committees (except Stewardship) to FY09 levels. Status: unable to fund.
8. Restore Stewardship to an undetermined amount. Status: unable to fund.
9. Raises for personnel as requested by Reverend Ames and the Committee on Congregational Ministry. Status: unable to fund.
10. RE, Youth and Music increased to requested amounts for FY11. Adult RE and Campus Ministry increased to requested amount for FY09. Status: unable to fund.
11. Committee and Organizational line items increased/decreased to requested amounts for FY10. Status: unable to fund.
12. Volunteer Coordinator position. Status: unable to fund.

BUDGET

Please have the UUCE proposed budget FY10 (found on the www.uueugene.org website) in hand so you can easily follow the categories and bullet points below.

INCOME

· Pledges. Pledge income is the total amount committed to date for FY11. This includes pledges obtained during and after the close of the stewardship campaign. This total is $321,886.

· Offering. The offering total fluctuates each year. We have revised this number based on the offering amount we have received in the past 12 months. We also alter this number to reach a balanced budget thus the quirky figure of $5,934.

· Fundraising. Judie Hansen, Sue Craig, Joseph Bonnevie, and others have stepped up fundraising efforts. Please plan on participating in garage sales, concerts, bingo nights, book sales, an auction and other efforts to reach this goal of $19,500.

· Gifts. This reflects actual gifts promised to date and expectations based on historical gifts. In addition, this line includes some funds that had been set aside as a sabbatical reserve for Reverend Ames. Income from the Music Boosters program that is being provided to support the operating budget including the music program has been calculated in. Total is $38,500.

· Rental income. Rental income for the current site has been decreased based on the income we received this year. Rental of the new site is uncertain at this time. We believe $1,000 from the current site is a reasonable expectation.

· There are no interest or dividend income or program registration fees applicable to the operating budget.

· Contribution from Capital Campaign. The income of $136,650 represents funds from the capital campaign that will be used to pay the daily operating expenses of our new site. These include utilities, mortgage, and insurance. Those expenses are included below and directly offset this income.

EXPENSE – Administration

· What changed for FY11:

§ Office Expense. While office expenses have been decreased to $3,800, $1,000 was added into this line to purchase new database software.

§ Advertising. Rates have increased.

§ Telephone. Usage has increased.

§ Copier. We had projected a decrease in copier usage when we went “green” with the newsletter. Despite the printing of fewer newsletters, copier usage has increased.

EXPENSE – Facilities

· What changed for FY11:

§ Custodian Supplies. Usage has increased.

§ EWEB Utility. Rates have increased.

§ Garbage Service. Rates have increased.

· As noted above, the Board requested daily operations costs of the new site to be included in the operating budget. We have added new expense lines for utilities ($14,000), insurance ($2,650) and mortgage ($120,000).

EXPENSE - Denomination

· UUA Annual Program Fund. Membership has increased. We will continue to pay 50% of our UUA dues.

· PNWD Annual Fund. Membership has increased. We have restored our dues to 100%.

EXPENSE – Programs

· Programs were held to the level they had this year (FY10) or reduced. No increases were provided.

· For FY10 (the current year), the Religious Education Committee voluntarily restructured RE and Youth budget needs. We have retained the bare bones funding of these programs at $2,100 and $4,000 respectively.

· The Worship Associates amount has decreased based on usage of these funds in FY10.

· The Music Committee has agreed to use their reserve fund to support the music program next year. See “Gifts” above.

· The Campus Ministry program is not currently operating.

· The Adult RE program is self-supporting through registration fees. No additional funds were provided.

· The Young Adults program is not currently operating.

· Non-wage childcare expenses include background checks and CPR/first aid trainings. These expenses are fixed.

EXPENSE – Committees

· Committees were held to the level they had this year (FY10) or reduced. No increases were provided.

· CARE Committee. Funding was provided to conduct 10 background checks.

· Social Justice. $100 was added to the Social Justice line for the purpose of paying dues related to our “welcoming congregation” status.

· Interweave. Previous amounts provided for dues were partially reallocated to Social Justice and partially eliminated.

· Centennial Celebration. This line item will return in 100 years when it is changed to a bi-centennial celebration!

EXPENSE – Organizational

· Organization groups were held to the level they had this year (FY10) or reduced. No increases were provided.

· Membership. The Membership Committee retained a $500 allotment.

· Kitchen. The Kitchen Committee was reduced to $0 based on this year’s usage. We encourage all coffee drinkers to generously contribute to the coffee basket each time they partake of these services to make this program self-supporting.

· Stewardship. $1,000 was provided for the Stewardship campaign next year.

EXPENSE – Payroll

· This was by far the most difficult area of the budget for the Board and the Budget Committee. When we started to balance the budget at the conclusion of the Stewardship campaign, we were facing the elimination of several staff positions and 20 to 30% reductions of remaining positions. We are happy to report the picture is now not so bleak.

· Note that medical, dental and other parts of the benefits packages change from year to year based on premiums, the insured’s age, etc. You will notice these numbers fluctuate while the services provided remain the same.

· Minister and Interim Minister. Salary and payroll expenses for Reverend Ames continue through July. The contract for the interim minister starts on September 1. The interim minister will be paid $68,900 in salary. The full package includes professional expenses, moving expenses and pension with an opt out for medical and dental insurance. Note: UUA Fair Share guidelines for our size church in a city of our size and location (their GEO Index 3) indicate the minister’s salary should range between $65,300 and $106,200.

· Director of Religious Education. This position has voluntarily been reduced 2% from FY09 levels but stays the same as FY10 levels. Professional expenses remained the same as FY10.

· Music Director. Salary restored to FY09 level (2% higher than FY10). Professional expenses remained the same as FY10.

· Administrator. Six hours per week were added to this position.

· Administrative Assistant. This position was eliminated.

· Publications Specialist. No change.

· Accompanist. No change.

· Volunteer Coordinator. We were unable to fund this position, again.

· RE Assistant. This position was reduced to 13 hours.

· Children’s Choir Director. We were unable to fund this position.

· Child Care. No change.

· Custodian. No change.

EXPENSE – Contingency

· History has shown that at least 8% of committed pledges are not fulfilled each year. We factor in this deficit to keep our books reasonably stable at the end of the year. We appreciate timely and complete fulfillment of pledges.