1. Plan and Budget Forum
May 13, 2012

2. Agenda
Opening, Rev. Michael Schuler
Welcome and agenda review, Sandy Eskrich, Board
President
Overview of Vision of Ministry, Sandy Eskrich
Budget overview, Will Salvi, Finance Committee Chair
Susan Koenig, Church Administrator
Discussion, Sandy Eskrich
Closing, Michael Schuler
2

3. 2012-13 Vision for Ministry
3

4. 2012-13 Vision for Ministry
• Motivate our Members to Live the UU Principles
4

5. 2012-13 Vision for Ministry
• Motivate our Members to Live the UU Principles
• Strengthen Ties among Generations
5

6. 2012-13 Vision for Ministry
• Motivate our Members to Live the UU Principles
• Strengthen Ties among Generations
• Increase Connections among Members
6

7. Budget Overview
• Capital Fund & Debt Update
• Re-Cap of Current Operating Budget Results
• 2012-13 Operating Budget – Overview
• Summary
7

8. Foundation and Other
Special Gifts Annual Annual
Capital Pledges
Pledges Revenue Restricted
Funds
CAPITAL OPERATING
FUND FUND
CAPITAL
EXPENSES OPERATING
-Preservation MORTGAGE MORTGAGE EXPENSES
-Equipment 60% 40%
-Furnishings
FUS Finances - Overview

9. Foundation and Capital Fund and Debt Update
Capital Pledges Special Gifts
CAPITAL
FUND
CAPITAL
EXPENSES MORTGAGE
-Preservation
-Equipment
-Furnishings

10. Capital Pledges Foundation and
Special Gifts
Capital Fund - Revenue
CAPITAL Capital Fund Balance
FUND $416,079 as of April 30
Capital Campaign status
Total pledged: $6.3 million
Total collected: $6.08 million (97%)
Expected in 2012: $45,000
Foundation (Stonehaulers):
$25,000/year, depending on market

11. CAPITAL
FUND
Projected Capital Expenses
$105,000 in Fiscal year 2012-13
Roof Planning
Equipment purchase/replacement
CAPITAL
EXPENSES Future Projects
-Preservation Roof replacement (summer 2016)
-Equipment Organ Console replacement
-Furnishings
Possible Isom House addition

12. MORTGAGE
Debt Update
• Payments on term loan began March 2012
• Principal balance as of April 30: $4,460,000
• Interest rate, fixed – 6.28%
• Total Annual payment FY 2012-13 - $357,000
•Principal - $76,000
•Interest - $281,000

13. CAPITAL OPERATING
FUND FUND
MORTGAGE Mortgage
60% 40%
Operating Budget: Debt Repayment
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%

14. CAPITAL OPERATING
FUND FUND
MORTGAGE
Mortgage
47%
53%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $190,000 53%

15. CAPITAL OPERATING
FUND FUND
MORTGAGE
74%
Mortgage
26%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $190,000 53%
2013-14 $265,000 74%

16. CAPITAL OPERATING
FUND FUND
MORTGAGE
100%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $190,000 53%
2013-14 $265,000 74%
2014-15 + $360,000 100%

17. Revised Debt Plan for Operating Budget
Operating budget contribution to Capital
Fund (loan payment)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17+
New Plan
starting
2012-13 $ 140,000 $ 190,000 $ 265,000 $ 360,000 $ 360,000 $ 360,000
Original $
Plan 140,000 $ 240,000 $ 350,000 $ 360,000 $ 360,000 $ 360,000
We have moderated our internal debt payback plan to
bring our need for new revenue closer to our
expectation.

18. FY End Capital Fund Balance
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000 New Plan 2012-13
$200,000 original plan
$150,000
$100,000
$50,000
$-
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
• More moderate increase in Operating Budget portion of loan
payment
• Uses more capital funds in the next two years
• Leaves some reserve throughout
• No change in the schedule for the Operating Budget to take
on full payment of loan

19. Ongoing Challenge – Growth in Debt Payments
• We continue to face the challenge of maintaining our program while
increasing debt payment from the operating budget.
Increase in Expenses Implied Pledge
Related to Debt Growth
2012-13 $50,000 - $100,000 4-9%
2013-14 $75,000 7%
2014-15 $100,000 8%
• Recent Pledge growth history has been below this implied
growth, although our long-term track record implies this is possible.

20. -Fees
-Rentals
-Foundation
-Parking
Annual -Other Restricted
Pledges Fundraising Funds
2011-12 Operating
Budget OPERATING
Performance FUND
OPERATING
EXPENSES

21. Current Year Budget
• Total pledges were up 4% ($45,000) over 2010-11
• Number of pledging households increased 8%
• Expect to end the year with normal (95%-100%) pledge
fulfillment, though a pattern of sluggish pledge payments has emerged
• Costs are in line with expectations
• Cabaret set a new record, netting over $32,000.
• Bottom Line – We expect to finish the year in balance.

22. 2012-13 Operating Budget Goals
• Support the Vision of Ministry
• Make prudent structural changes to support core programs while
managing expenses
• Continue to retain and support high quality ministers and staff.
• Support member involvement and fundraising to stay on our new
course of debt repayment
• Balance the Budget

23. 2012-13 Operating Budget – Overview
•Total Revenues – Up 2% (+$35,000)
– Pledge Revenue is budgeted to remain flat with 2011-12
• We have 100 fewer pledges than at this time last year
• The average pledge is about $100 higher than at this time last year
– Will use one dedicated contribution and one generous
bequest in support of our staffing plan ($37,000)
– We expect an increase in Adult RE revenue, due to fees for
Quest participants
– Decrease in use of Restricted Funds ($29,000) reflects the
end of our use in 2011-12 of a dedicated bequest to support
Music/RE

24. 2012-13 Operating Budget –Overview
• General Expenses & Debt Repayment - Up 7% (+26,000)
– Primarily due to ramping up our debt repayment ($50,000)
– Other costs are down 24%
• move away from frequent printed guides and catalogs
• end of our contract with Dan Hotchkiss.
• Program Expenses – Actual Program remains flat
– Changes in our accounting have effect of 19% increase
• Now run outreach offering and Eviction Prevention expenses through
programs
• Increase in RE expenses reflects pass through costs (Quest and
Coming of Age)
– We are continuing our current rate of contribution to UUA
and CMwD

25. 2012-13 Operating Budget – Overview
• Personnel Related Expenses – Down 3% (-$35,000)
– Structural Change
• Leave 50% Social justice position unfilled ($20,000 savings first-year)
• Plan early departure of Associate Minister (end of 2012-13 fiscal year) and sun-setting that
ministerial position ($46,500 savings in 2013-14)
• Eliminate dental insurance benefit for staff ($11,000 savings)
• Reduce senior minister professional expenses
– One-time change to bridge to Associate Minister sunset
• One-week staff furlough ($17,000 savings)
• Use bequest and special gift ($37,000)
– Will not fund 4 raises we had planned to bring staff in line with local and
professional compensation standards

26. Summary
• Significant staff changes make 2012-13 a challenging transitional year
• Finding the capacity to handle our debt payments is a continuing challenge over the
next 3 years, and is exacerbated by the slow pledge growth we’ve been seeing.
• The proposed budget for next year reflects hard choices about the best way to
meet our mission given these challenges.
• Pledge growth (driven both by new member growth and increases to average
pledges) needs to improve to prevent future painful choices
• The keys to making this process easier going forward are deepening member
engagement, growth in new members, and new sources of funding.

27. Questions
&
Feedback
27