Finance Committee Report September 2011

Through August our financial results are:

2011/ 2010

General Fund income $235.7k/ $248k
GF Expenses $254.3k/ $239.4k
General Fund Balance $5.4k/ $18.9k

Year-to-date GF income is $1.6k below forecast while expenses are $6.1k above forecast, despite having suspended apportionments payments mid-way through June. We are on pace to meet our 2011 budget income, but our expenses are above that level for a number of factors including above-forecast utilities expenses for the colder than forecast winter and higher Pastoral support costs. We thus find ourselves with the prospect of finishing the year with unpaid apportionments and a below normal end-of-year General Fund balance.
At this meeting the FC was asked to approve and forward to the Church Council the 2012 Pastoral compensation packages from the SPRC. Considerable discussion followed, centered around two compelling needs. We must live within a balanced budget which includes meeting our apportionment commitments and we must continue our outreach to Youth, Young Adults and those who choose our Contemporary Worship offering

After considerable discussion we agreed to submit two recommendations to the Church Council for their approval. The compensation package of the Senior Pastor was unanimously approved. The compensation package for the Associate Pastor was ultimately approved, three votes in favor, two opposed, with one abstention.

The key issue was our historic inability to financially support both our apportionments and the compensation of an Associate Pastor. There was general agreement on the need, but considerable frustration the congregation has not adequately financially supported.this position.
To resolve this impasse the FC requests that the Church Council drive a $30,000 cost reduction in the General Fund budget in 2012. This reduction is believed to be sufficient to permit both the Associate Pastor and a balanced 2012 budget. Assuming that the Youth Ministries Coordinator is not filled, the budget reduction needed is $20,000($1,667/month). While any non-personnel cost reductions would reduce the impact of this, it is anticipated that personnel reductions will be needed Here is a list of cost-cutting options:

Non-Personnel
Reduce energy usage
Consider closing Historic Trinity during winter months
Prune mailing lists
Reduce copier costs

Personnel (in order listed in the budget)
Christian Education Director (w health care) $1,383/month
Youth Ministries Coordinator $833/month
Senior Adult Ministries Coordinator $499/month
Office Assistant $197/month
Director of Music $919
Organist $917
Supervisor Building & Grounds $1,185
Custodian/Events Person $1,266

None of these personnel changes will be without significant negative impact, which must be managed.