For 2023 the Congregation approved an operating budget totaling $966,677. Revenue to support this amount comes from giving and income. Our giving represents a little over 90% of the budget either through our pledges or from weekly offerings received during church services.
Through the first third of our year, our giving is just over one-third of the amount budgeted, but there are some underlying issues.
Each year the Board of Business budgets a certain amount for what we call “late prior year pledges.” These are funds received after the first of the year that were pledged for the prior year. Some pledgers submit their gifts late for income tax purposes or just because they forgot. At some point, we have to close the prior year’s books, and therefore, any giving after that date is applied to current year pledges. We are still short $8,575 for budgeted late prior year pledges. This is a small amount of the entire budget but not insignificant.
In 2022 we received an exceptionally large amount of giving from offerings collected during services. In the 2023 budget the Board of Business included an optimistic estimated amount of $40,000 from these collections. Through April only $9,902 had been collected from weekly offerings.
For regular pledge income, we have received just under the expected 33.3% through the end of April. On the bright side, about $1,400 more than was budgeted was received from our supplemental pledge campaign.
I’d like to encourage everyone to honor their pledges, especially during the summer months when so many of us travel out of town. I’d also like to encourage all of us to check our pockets and purses when we attend a service. See if we have a little extra cash that we can add to the plate as it comes by.
The balance of our budgeted income comes from parking, rent, and interest. Rent and interest are already above 50% of the budgeted amount. Parking income is only at about 19% of the budget, but much of the expected income won’t come until the fall football season.
On the expense side, through April the church has spent about $4,700 more than it has received. The excess expenditures are all related to personnel.
Salaries and wages are right on target for January through April. Fringe benefits are about 5% above the expected amount for the first third of the year. This is because some expenses are prepaid, e.g., health insurance, retirement contributions, and workers compensation premiums.
Total non-personnel expenses through April are at 31.3% of the budgeted amounts.
In making the 2023 budget, the Board of Business left most of Andy Bachmann’s annual salary and benefits in the budget. Some of his full compensation package was reallocated toward market pay and equity for staff, based on recommendations of the Compensation Committee.
With Andy retiring at the end of April, there remains about $61,000 from his total budgeted compensation. In April, the Board of Business and Church Council approved three part time, temporary transition positions to share some of the ministerial workload while the church discerns its path forward. The 2023 budgeted amount for these temporary transition positions is just over $33,000 leaving about $28,000 from Andy’s compensation available for other purposes.
The Board of Business has taken the position that any 2023 savings from Andy’s retirement should be reserved for priority projects of the Buildings and Grounds Committee and to maintain a sufficient capital reserve for emergencies. With capital reserve funds included in the operating account, net funds available after current year expenditures, and remaining designated giving amounts, this would leave about $121,000. Of this amount, $48,614 is reserved to pay for solar panels that will be installed this summer. The $72,500 balance would be reserved for priority Buildings and Grounds projects and emergency reserves.
Of course, all this is based on the faith that members will fully honor their pledges, that other revenue streams perform as budgeted, and that expenses continue as is for the remainder of the year.