Discussion of the Proposed 2020-2021 Budget

1. The intents of this proposed budget are to:
   • meet the operating needs of the church, including currently active programs
   • limit transfers of funds from our directed accounts to 5% of account balances (which is the estimated average annual return on investments)
   • provide a cost of living increase for all staff, dependent on meeting budgeted pledges
   • maintain our outreach expenditures and programs
   • limit pledge increases to 2% of FY2020 actual pledges/4% of budgeted pledges
   • limit increases in expenditures to those that are essential
2. The proposed budget does not include:
   • Expansion of programs or staff
   • Loan payments in addition to required monthly (made from Capital Campaign account)
   • Allowances for virus-related income shortfalls (due to unknowns and uncertainty)
3. FY2020/21 Income Projections vs FY2019/20
   • Pledges: increase of $30,500 - a 2.0% increase over actual pledges made for FY2020
   • Other income: increase of $65,000, including: +$50,000 income from classroom rentals, + $15,000 income from cell tower rentals
   • Restricted account transfers: decrease of $68,000 or 51.9%

Total income: increase of $18,000 or 1.5%

4. FY2020/21 Expense Projections vs FY2019/20

• Salaries: increase of $36,700 including: adjustments for 2 employees, 3% cost-of-living increase for salaried staff
• Payroll related costs: decrease of $2,000
• Council: decrease of $6,000 for weddings (expense moved to Trustees), other
• Outreach: no increase for denominational support (typically $1k increase)
• Music: increase of $5,000 for supplies, musicians
• Trustees: increase of $13,000 including increases for insurance & event support (expense transferred from Council)

Total expenses: increase of $47,000 or 4.0%

5. Budget summary:

Requested pledge increase = 2% of actual pledges/4% of budgeted pledges

Total Pledges = $793,104

Total income = $1,223,425

Total expenses = $1,220,550

Net income = $2,875

Total transfers from directed accounts = $63,100