Proposed 2019-2020 Church Budget

The following chart shows the proposed budget for the 2019-2020 fiscal year.

Discussion of the Proposed 2019-2020 Budget

1. The focus of this proposed budget is to increase the capital project debt repayment while maintaining outreach and other programs and staffing that make our church a vibrant, active, and successful community, without asking too much from our members in terms of pledge increases and by limiting transfers of funds from directed accounts.
2. This budget attempts to accurately represent our financial predications for the coming year and provide greater clarity and transparency, including some significant changes in accounting methods and accounts.
3. Salaries for all staff are proposed to increase by 3%, in line with projected Bay Area cost of living increases. Salaries also are proposed to increase by an additional 1.7% for other projected staffing changes.
4. The budget projects a decrease in income of $34,000 or 2.6%. This reduction includes multiple changes, both increases and decreases. Increases include $43,000 in pledges, a 4.0% increase over actual pledges made for FY2019 and a 5.8% increase over budgeted pledges. Decreases are mainly due to lower transfers from directed funds, lower expected restricted income, and pledge adjustments due to the timing of contributions.
5. The budget projects a decrease in expenses of $32,000 or 2.5%. This reduction includes multiple changes, both increases and decreases. Major increases include increases in salaries and additional loan repayments. Offsetting this are reductions for one-time facility expenses, reduced IT spending, account reclassification for the service trip and other savings contributed to by the various Boards.
6. Major income changes are:
   • 4% increase in pledges
   • $23,000 decrease in pledges due to timing of contributions
   • $39,000 increase in rental, other gifts and fee income
   • $11,000 decrease in fundraising income
   • $40,000 decrease in transfer from directed accounts
   • $42,000 decrease in restricted income (tied directly to restricted expenses)
7. Major expense changes are:
   • 3% increase in staff salaries
   • 1.7% increase in salaries for projected staffing changes
   • $7,000 increase in communication costs
   • $20,000 increase for loan payment
   • $15,000 increase for immigrant accompaniment (tied directly to rest. income)
   • $15,000 decrease for Friends of Music (tied directly to rest. income)
   • $16,000 decrease by moving the budget for service trips to a pass-thru account
   • $5,000 decrease in Foundation grants
   • $51,000 decrease in facility expenses, due to completion of special projects
   • $14,000 decrease in IT costs due to anticipated reduced recent upgrades
   • $8,000 net decrease contributed to by the various Boards
8. Net Income is projected to be $2,442 including all restricted account activity and $1,792 excluding those activities.

For additional details about the church budget, please contact our Business Manager, business@fccpa.org, or follow these links to the full 2019-2020 proposed budget and to the budget discussion.

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