Financial Update from Scott Denning, Treasurer

 

Spring is in the air (and snow is on the lilacs!), so it’s time for an update on the financial state of the church from your intrepid treasurer.  Below, I will review the current year’s finances, as well as the outcome of our annual Stewardship campaign and highlights of next year’s proposed budget.

IMPORTANT: we will hold a Budget Hearing on Sunday May 7 from 10:40 to 11:30 AM (between second and third services). Please come to this meeting, where we will present the details of the proposed budget. This is your best opportunity to get your questions answered before we vote on the proposed budget at the annual Congregational Meeting on June 4.

Current Year’s Finances:

We are 10 months into our current church year, and we’re doing very well. Pledge collections continue at a near-record pace. We’ve now collected 80% of our annual budgeted pledge (vs 70% this time last year). Spending is exactly what we’ve budgeted: 76% of this year’s budget, compared to 73% this time last year.  We project that we will end the church year on June 30 with a balance within 0.5% of our annual budget.

One of our budget priorities this year was to augment the church’s reserve account. Think of this as our “savings” account from which we draw when expenses exceed income in a particular month, and which we pay into when expenses are less. Our written policies specify that the reserve account should be 10% of our annual budget. The reserve account was pretty much wiped out in the Great Recession, and we’ve been slowly building it back up. The reserve account will be about $50k at the end of this church year on June 30.  Our target is $76k (based on next year’s proposed budget), so we’re getting there but have a ways to go.

Until we can grow our reserve account back to the 10% level, one of the most important ways you can help the church meet its monthly bills is to pay your pledge regularly. If you haven’t already done so, please consider setting up automatic monthly payments rather than paying in unpredictable lump sums. See Carolyn at the church office for details.

Stewardship Campaign:

Thanks to all of you, and especially to our wonderful Stewardship Team who made this year’s campaign very successful. We have pledges of over $660k for the church year that begins on July 1. This is up more than 7% over last year — a very healthy increase! For the first time ever, more than 400 households pledged this year, including 336 member households as well as 78 nonmember households. This represents a total of about 750 people! You can read more details here.

Next Year’s Proposed Budget:

Considering your generous pledge plus additional revenue from plate collections, contributions, fundraisers, and various other sources, we project total income of about $760k for July 1, 2017 through June 30, 2018. Therefore we will propose a budget in that amount. Almost 94% of next year’s budget is supported by pledges and donations!

Next year’s proposed budget includes small salary increases for most of our staff as we continue toward our goal of paying everybody at the midpoint of the guidelines of the denomination for our region.

We are very excited to include a request for a part-time Membership Coordinator (a new hire) in the proposed budget!  As our Three Services Experiment has made clear, we are attracting a lot of new members and friends. Most other large UU congregations have found that the expense of hiring a Membership Coordinator literally pays for itself in a few years through growth in pledging. As more people join our community, this new staff person will ensure that all are welcome and well integrated into the Foothills UU family.

Please bring your questions, comments, and concerns about next year’s proposed budget to the Budget Hearing on Sunday May 7 at 10:40 AM. See you there!

Budgeting Update from Scott Denning and Erik Martinson

This update is a part of a Governance Update being sent by email to all Foothills members.

Every year, the church prepares a budget in the spring for the church year starting on July 1, projecting monthly income and spending 15 months in advance. Our budgets are balanced, so we spend only what we earn.

Nearly all of our income is from the pledges of financial commitment made by members and friends of our community.

The budget for next fiscal year has been prepared by the Finance committee, affirmed by the board, and will be voted on for final approval by the members of the congregation at our annual meeting on June 4.

A hearing to introduce and discuss details of the budget will be held on May 7 at 10:40am. Highlights include an overall increase to the budget of nearly $43,000 made possible by a projected pledging increase of over 8%!

Most of the additional income will be invested in our human resources, including a new part-time coordinator position for membership, as well as salary adjustments to reflect current UUA compensation guidelines for our ministers and staff.

Please plan to attend the May 7 hearing to inform your vote as the budget presentation at the Annual Meeting will be abridged.