Transcript October 12, 2014 Congregational Meeting

Roseville Lutheran Church
Budget and Task Force Update
December, 2014
What is the problem we need to solve?
We need a plan to pay back funds we have borrowed from our
own designated funds
We have significant maintenance issues that need to be
addressed for the long term structural health of our facility
We do not have enough dedicated dollars in the budget to care
adequately for our facility long term
We do not have a plan or dollars assigned for regular merit pay
review for our staff
What is contributing to this situation?
•
We have an aging facility with a large “foot print”
•
We are seeing a change in giving patterns:
Number of givers is
going down
What is contributing to this situation?
•
More on giving patterns
Average gift is
up by those that
give, but less
givers
•
•
•
We are not alone ~ changing demographics and styles of giving
We have “frequency” problem – weekly attendance is no longer the
norm for our culture
We are in a transition period with our lead pastor which means giving
goes down in most congregations.
What are we already doing to address?
• Reduced staff in 2014/2015 budget cycle
• Renewed focus and commitment on stewardship
• Formed a task force to review current situation and give
considerations
• Obtained approval from the congregation to sell the “green
space”
• Provided and will continue to provide more transparency in
communicating our financial situation
• Starting work on the call process for a new lead pastor, with
tangible steps beginning after the first of the year
Financial Facts - - December 2014
•
•
•
•
Budget situation year to date: $ positive variance to budget
Cost of outstanding maintenance needed estimated at $200,000
Borrowing against our designated funds: $123,000
Stewardship commitment:
• $ committed from intent cards
• Estimated*
• Projected total offering
$777,000
$595,000
$1,405,000
*offering from regular givers who did not turn in an intent card
• Projected Total Receipts (including misc. income) $1,490,000
• Sale of green space: net approximately $95,000 to $100,000
Overview – how are we spending our
dollars?
• Compensation & Benefits
64%
• Facilities costs (Properties & Buildings)
12%
• Program & ministry costs
14%
• Mission & Outreach
10%
Staffing
Position
Full time equivalents in these areas
Pastors
2.5 FTEs
Music Ministry
1.7 FTEs
Children/Youth Ministry
3.2 FTEs
Childcare House
3.0 FTEs
Pre-School
1.75 FTEs
Hospitality
1.5 FTEs
Custodial
2.9 FTEs
Church/Business Admin
(mgmt/professional)
4.0 FTEs
Office Admin
2.7 FTEs
TOTAL FTEs
23.25
Staffing
• $100,000 in compensation and benefits reduced in fiscal
year 2014/2015 over the previous years (approximately
2FTEs)
• The majority of staff have not received a raise in 4 years
and pay increases have not been part of the budget.
• Benefits: Maintaining current coverage for 2015 would
have represented a 16.8% increase to RLC. Instead, we
opted to give our staff a lower coverage plan for 2015.
• New plan still represents a cost increase of 8.7%
• Staff deductible cost will increase from $1,000 to
$2,000
Maintenance Needs
ITEMs
Cost Estimate
Critical
Parking lots
Preschool door
Water Abatement ’55 & ’86 Building
Bus (5 year lease)
'55 Building windows
'55 Bldg Roof
$40,000
$5,000
$20,000
$7,300
$10,000
$20,000
Anticipated
North wall outside of the Worship Center
Overhang for worship center roof
Carpet replacement-Commons
Carpet replacement-Great Hall
Worship center shades
HVAC enclosure door
$8,700
$30,000
$40,000
$9,000
$5,000
$5,000
TOTAL for ALL
$200,000
Building fund giving has gone steadily
down
Building fund Gifts
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Total
Mortgage and
facilities
maintenance have
been paid from
this fund in the
past. Now it just
covers the
mortgage
1955 Building – no easy answer
• We need a long term solution for what to do with the 1955
Building
• Built with materials not meant to last 60 years.
• $45,000 in maintenance needs, minimum
• Currently houses the Nursery School, Cornerstone and
Confirmation
Mission & Outreach Funding
Area of giving
•
•
•
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Benevolence / St Paul Area Synod (SPAS)
$48,000
Church/Community Outreach
$28,800
Cross Cultural Ministry
$ 5,000
Global Mission/Tanzania/Slovakia
$40,500
Hunger/Shelter Ministry
$19,000
We have consistently given 10% of total general offering giving since 2007, based on a
motion at that year’s annual meeting. The motion was for our giving to be set at 10%
for that year. We have given at that level ever since and not revisited that decision.
In 2007 there was still > $100,000 being given to the building fund to help with
facilities maintenance costs
In 2007 we were not borrowing and had a slight excess in our giving over expenses
Outreach impact at RLC goes beyond our Mission & Outreach 10% giving ~ e.g. food
drives, special offering appeals, etc.
Task Force Charter & Members
•
•
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Short term committee, commissioned by the

Dave Booms, RLC Business Administrator
RLC council

John Davis, Council member 2012 – 2014
Purpose of studying the state of RLC’s giving,

Lon Erickson, Council Liaison
spending, and facilities maintenance needs

Greg Johnson, Stewardship Chair
Asked to provide to RLC Council a holistic

Vicky Lorenz, Facilities Design team
review to address current and future

Pastor Steve Molin
maintenance needs.

Kathy Pedersen, green space contact
Task force consideration list could include sale

Dave Richter, Finance Committee Chair
of assets, budget changes, and facilities

Dave Werner, Endowment Chair
planning recommendations, program changes

Erik Wolhowe, Mission & Outreach Chair
and any other steps the committee would like
to have be considered to address the budget
and maintenance issues.
Task Force: Options to Consider
BUDGET
 Document and refine the annual budget process (currently being worked)
• Change the annual calendar from July 1st to June 30th to a different time
frame to better predict giving (under consideration)
• Move to a system that reflects a cost accounting approach to more easily
understand costs of various ministries
• Obtain 2nd mortgage (low rate) on the facility to pay for some of the needed
maintenance
PROPERTY
 Sell green space (pending)
• Sell the child care house (value unknown but Ramsey County tax statement
assesses at $125,000)
• Increase fees to outside groups
Task Force: Options to Consider
MINISTRIES
• Reduce Mission & Outreach percentage (each percent = about $14,000)
STAFF
• Shop for less expensive employee benefits
 Staff assessment – to assure we have the right staffing (will be done as
part of the call process). Make adjustment if necessary.
Winter Table Discussions
• Purpose of today was to give you an opportunity to learn more
about the options to consider based on the task force findings and
provide you an update on our giving, expenses and stewardship
outcome.
• In January we invite you to participate in one of the table
discussions with other RLC members to give us your feedback on
the task force list of considerations and also hear any other ideas
Thank you for coming!