Budget Report UUCM 2020-21 Budget Discussion with Congregation 6/16/20 & 6/18/20 Sandy Frades UUCM Congregation Finance Discussion 1 June 16 & 18, 2020
Agenda Budget Report Our Endowment Finance Actions - PPP Estimate to Complete Current Year Stewardship Budget for Next Year Strategy What’s in the 2020-21 Budget? What About Our 5-Year Plan? Questions & Discussion Budget Details for Those Who Wish to Stay UUCM Congregation Finance Discussion 2 June 16 & 18, 2020
Our Endowment Budget Report Time Period Total Endowment General Fund 12/31/19 $ 900,000 $ 870,000 3/31/20 $ 720,000 $ 695,000 5/31/20 $ 800,000 $ 770,000 Standard Endowment Distribution: Withdraw from our Endowment of 4% of the average of the general fund over the past 3 years as income to our operating budget [Vote 2017] 5-Year Plan Investment: Withdraw from our Endowment up to $108,000 over 5 years to invest in the future with our new minister [Vote 2018] UUCM Congregation Finance Discussion 3 June 16 & 18, 2020
Finance Actions - PPP Budget Report Small Business Administration (SBA) Paycheck Protection Program (PPP) part of the federal government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act Filed application: accepted on 5/5 and $33,300 was deposited in our St Mary’s account on 5/8 75% of the loan must be used to retain sta ff during the 8 weeks following receipt of the funds while 25% may be used for utilities Part or all of the loan may be turned into a grant and be forgiven UUCM Congregation Finance Discussion 4 June 16 & 18, 2020
Finance Actions - PPP [Con’t] Budget Report Follow the guidelines from the SBA and use the money only for approved items, the loan should be forgiven 100% In 6 months (November 2020), we must start paying back any portion of the loan not forgiven at 1% interest. Opened a special account and must be able to show a paper trail that everything was done according to the guidelines. Many thanks go to Jamie Ferrier, our Church Administrator, for getting us this money! UUCM Congregation Finance Discussion 5 June 16 & 18, 2020
Estimate to Complete Budget Report Current Year We took $24,720 as our Standard Endowment Distribution We took $27,744 as our 5-Year Investment of the $108,000 We estimate we have about $6000 of Endowment monies in the operating budget this year but not spent that we can rollover into next year Our current estimate is that we will receive $140,000 in pledge money. We currently have received about $136,000 We don’t plan to pay the last $1,000 to Maintenance Reserve UUCM Congregation Finance Discussion 6 June 16 & 18, 2020
Estimate to Complete Budget Report Current Year [Con’t] Rev. Carol does not need all of her Minister Expenses which will save us about $4,500 We don’t plan to pay the $4,000 in budget to the UUA. We raised $4200 in the Holiday Appeal and $385 in Plate Share which we will send to the UUA. Although we are being careful with expenditures, we want to keep items in the budget to meet the needs of the community during the pandemic. UUCM Congregation Finance Discussion 7 June 16 & 18, 2020
Stewardship Budget Report Current Status as of 6/3: $122,460 in actual pledges $ 28,430 in estimated pledges $150,890 Due to the uncertainty of things, we assume a 95% confidence level for actual pledges and 50% confidence level for estimated pledges which equates to $ 130,552 The original 5-year plan had $150,000 in pledges each year. So far we have not achieved that, but it was an average over the several year plan. UUCM Congregation Finance Discussion 8 June 16 & 18, 2020
Budget for Next Year Strategy Budget Report NEXT YEAR IS A BIG UNKNOWN Rev. Susan Frederick Grey’s (UUA President) memo that came out a few weeks ago recommends that congregations consider not reopening until May 2021. The Finance Committee and the Board recommend that we should go with a budget where things start to come back to normal in January 2021. This would allow us the financial freedom to open later if needed and still have a budget we could live with. UUCM Congregation Finance Discussion 9 June 16 & 18, 2020
What’s in the 2020-21 Budget? Budget Report Fundraisers: No Harvest Pantry, virtual Holiday Fair (o ff er food and crafts, pickup & delivery), Auction less. Endowment Standard Distribution has changed downward per Trustees due to stock market decline. We assume we will live by the rules and the $33,300 for PPP will be turned into a grant so no payback of loan required. Rev. Shayna working 11 out of 12 months so salary and benefits reflect this. UUCM Congregation Finance Discussion 10 June 16 & 18, 2020
What’s in the 2020-21 Budget Report Budget? [Con’t] Decrease in income and expenses to reflect not in the building part of the year No UUA payments next year. May not require any 5-Year Investment Endowment Money! Finance Committee, Personnel Committee and the Board recommend the following salary adjustments: • Congregational Administrator: Increase of $4,000/year for the next 2 years • Custodian: Increase to $15/hour UUCM Congregation Finance Discussion 11 June 16 & 18, 2020
What’s in the 2020-21 Budget Report Budget? [Con’t] Jamie & Sue are keeping things going during COVID-19. Jamie has worked hard and been available 7 days a week. Without her, not sure we would have gotten $33,300 in PPP . We strived to pay our Minister at or slightly above the mid- point (mid-proficiency level) in the UUA salary range. We should do the same for our Congregational Administrator. She is currently barely in the entry level (lowest level). We want Sue to get a fair minimum wage of $15/hour. Live Our Values UUCM Congregation Finance Discussion 12 June 16 & 18, 2020
What’s in the Budget Report 2020-21 Budget: Item Budget 2019-20 Draft Budget 2020-21 INCOME $235,320 $217,283 Income? PLEDGES $150,000 $130,000 PLATE $11,500 $4,000 RENTAL $8,500 $4,000 FUNDRAISING & DONATIONS $25,700 $9,800 ENDOWMENT - Standard Distribution $24,720 $29,000 ENDOWMENT - 5-Year Investment $17,744 $0 ENDOWMENT - Carry Over $10,000 $4,483 SURPLUS FROM PREVIOUS YR $1,000 $0 SBA PPP [LOAN/GRANT] $0 $33,300 OTHER INCOME $3,900 $2,700 UUCM Congregation Finance Discussion 13 June 16 & 18, 2020
What’s in the Budget Report 2020-21 Item Budget 2019-20 Draft Budget 2020-21 EXPENSES $253,058 $211,240 Budget: MINISTER PAY & BENEFITS $111,941 $94,026 MINISTER SPECIAL EXPENSES/SEARCH $12,700 $300 Expenses? CUSTODIAN $5,832 $6,910 PROPERTY $25,654 $19,500 ADMIN WAGES & BENEFITS $50,054 $53,934 ADMINISTRATION $12,811 $12,900 MUSICIAN WAGES & BENEFITS $19,010 $17,970 RELIGIOUS EDUCATION $2,300 $1,420 WORSHIP $1,400 $800 COMMITTEES $2,900 $1,525 DENOMINATIONAL $4,430 $355 PLATE SHARE $4,025 $1,400 MISCELLANEOUS $0 $200 Planned Endowment Investment -$17,738 $6,043 Actual Endowment Investment Used-to-Date -$27,744 Out of $108,000 Voted by Congregation UUCM Congregation Finance Discussion 14 June 16 & 18, 2020
What’s Not in the Budget Report 2020-21 Budget? It is the recommendation of the Finance Committee that it be the intent of UUCM to pay a portion of our UUA “Fair Share” at the end of next church year with a goal to pay our full share by the end of our 5-year plan. • If there is su ffi cient money to not sell stocks from the endowment if they have not recovered to close to pre- COVID-19 numbers. • The payment does not significantly impact our 5-Year Plan A vote of the congregation will be required for this. UUCM Congregation Finance Discussion 15 June 16 & 18, 2020
What About Our 5-Year Plan? Budget Report If our best guess estimates are correct, we will exceed the $108,000 of our 5-Year Plan Investment sometime during the 2024-5 church year (the 5th year of Rev. Shayna’s ministry) TOO MANY UNKNOWNS AT THIS TIME We could be over the $108,000 by an estimated $15,000 which would require some kind of action before that happened BUT… UUCM Congregation Finance Discussion 16 June 16 & 18, 2020
What About Our Budget Report 5-Year Plan? [Con’t] We are in a very uncertain time. Endowments are there to be used in an emergency. It assumes we start to go back to normal spending in year 2 of Rev. Shayna’s ministry. Our 5 year plan did not build in any growth of membership or pledges. UUCM Congregation Finance Discussion 17 June 16 & 18, 2020
Budget Report Questions & Discussion UUCM Congregation Finance Discussion 18 June 16 & 18, 2020
Budget Report The 2020-21 Budget Details UUCM Congregation Finance Discussion 19 June 16 & 18, 2020
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