August 29, 2022 Called Session Meeting (Budget)
Chapel in the Pines Presbyterian Church
Agenda
Called Budget Meeting August 29, 2022 7 PM
Present: Paul Bolig, Tom Crosby, Karen Fisher, Cynthia Hilliard, Marcia Ladd (Clerk), Jeff Olson, Bruce Raymond, Andrew Taylor-Troutman, Sarah Whitney,
Excused Absence: Tim White, Serena Zum Brunnen
Pastoral Concerns and Celebrations Andrew opened the meeting with a prayer at 7 PM. He asked the elders to go around the room reading each entry of The Covenant of Presence, the elders did that. He then asked for Approval of Agenda. Paul moved to approve the agenda, it was seconded and passed unanimously.
Opening Remarks – Jerry wanted to say the purpose of the meeting is to start the budgeting process; it is the beginning of a process that will ultimately conclude with finalizing the 2023 budget in January or February. We are not here to make any decisions tonight but to allow the Elders to show us their preliminary plans for next year and what kind of funding would be needed to implement those plans. It provides the F&A committee with information to compare the committee spending plans with the projected income from the Stewardship committee and the Treasurer. He is hoping that the elders highlight increases and decreases and the reasons behind them. Stewardship starts October 23 and ends November 13. Using that data, the F&A committee can develop possible options to come up with a breakeven budget next year.
Personnel
Jerry drew session’s attention to the Personnel budget, highlighting that it is approximately 73% of the Operating Budget. The Committee is recommending a 4 % increase in staff compensation, except for new hires. Salem Presbytery recommended churches offer a 4% increase; we are cognizant of the fact that it does not keep up with inflation, expected at 6%, but feel 4% is the bet the church can do for 2023. The Committee is thinking that when Nana retires we will need a one month overlap with the new hire and Nana, which is built into the budget. There is some skepticism that a month is not long enough.
| Program Staff Compensation/Ben | |
| $170,194 | 501005 – Program Staff Salaries |
| $22,000 | 501010 – Program Staff Housing |
| $6,657 | 501015 – Program Staff Pensions |
| $22,712 | 501020 – Program Staff Med Ins |
| $990 | 501021 – Program Staff-Dental Insurance |
| $92 | 501022 – Program Staff-Vision Insurance |
| $1,175 | 501025 – Program Staff Short Term Dis/Death & Disability |
| $14,703 | 501030 – Program Staff – FICA/SS allow |
| $6,942 | 501050 – Pastor’s Prof Expense Reimbursement |
| $0 | 501150 – Nursery Staff Salaries |
| $0 | 501156 – Video Production Services Staff |
| $245,465 | Total Program Staff Compensation/Ben |
| Admin Staff Compensation/Ben | |
| $57,153 | 501110 – Admin Staff Salaries |
| $1,781 | 501115 – Admin Staff Pensions |
| $1,635 | 501116 – Retirement Savings plan |
| $8,304 | 501120 – Admin Staff Med Ins |
| $427 | 501125 – Admin Staff Short Term Dis/Death & Disability |
| $4,372 | 501130 – Admin Staff FICA/Med Exp |
| $73,672 | Total Admin Staff Compensation/Ben |
| Other Personnel Expenses | |
| $100 | 501410 – Personnel Background Checks |
| $2,000 | 501450 – Staff Appreciation |
| $1,400 | 513100 – Staff Substitutes – Worship |
| $0 | 513116 – Staff Subs – Not Worship; incl Consultants |
| $2,000 | 513115 – Worship & Music Conference |
| $1,000 | XXXXXX – Christian Education Professional Training |
| $6,500 | Total Other Personnel Expenses |
| $325,637 | Total Personnel Expenses |
Jeff indicated that the employees that will be converted to W2 from 1099 will in essence be getting a 7.5% increase in compensation.
Finance and Administration
Paul indicated his budget proposal for 2023 is as follows
| Administration | |
| $900 | 503310 – Payroll Fees |
| $80 | 503315 – Utilities – Telephone |
| $350 | 503316 – Utilities – Water |
| $7,500 | 503317 – Utilities – Electricity |
| $1,335 | 503318 – Utilities – Security Services |
| $4,548 | 503321 – Optic Fiber Internet Service |
| $135 | 503375 – Bank Charges/Late Fees |
| $3,500 | 503376 – Online Processing Fees |
| $100 | 503410 – Computer Software |
| $1,920 | 503415 – Computer Software Support – ACS |
| $50 | 503420 – Computer Equipment |
| $400 | 503430 – Comp Maintenance & Repair |
| $400 | 503440 – Web Site Design/Maintenance |
| $1,800 | 503505 – Office Supplies |
| $800 | 503515 – Postage |
| $1,200 | 503520 – Printing |
| $2,772 | 503565 – Copier Leasing |
| $700 | 503580 – Stewardship Campaign Exp |
| $750 | 503605 – Staff Training |
| $0 | 503705 – Audit Expense (External) |
| $1,800 | 503720 – Workers Comp Insurance |
| $1,100 | 503721 – Umbrella insurance Policy |
| $6,500 | 503725 – Property/Liability Insurance |
| $0 | 503755 – Fees/Losses on Donated Securities |
| $0 | 503768 – Reserve for Capital Replacement |
| $1,000 | XXXXXX – Legal Expenses & Contingencies |
| $1,000 | 503769 – Endowment Education Expenses |
| $40,640 | Total Administration Expenses |
He indicated these expenses are fairly fixed. Jerry and Tim did the lion’s share of the work developing the budget. A new category was added to F&A – Legal Expenses and Contingencies. The money put aside for future capital replacement has been moved out of administration and into “Other Expenses” along with the mortgage payments. Tim’s rationale is that these funds are NOT available to be used for anything other these expenses and don’t provide any “support” for any other categories in the operating budget. Hence the 2023 total for F&A is $40,640 and the 2022 estimated year end spending is $53,987 which is reflective of the move to a new line item. The budget represents a 2.7% increase.
Building and Grounds
Bruce indicated the 2023 proposed budget from his committee is
Janitorial Supplies $450
Interior Maintenance $4700
Exterior Maintenance $1350
Landscape/Pond/R Garden $2502
This is an almost negligible increase over the Full Year Estimate of 2022. Bruce did an analysis of the money B & G saves the church, and it is 4 or 5 times what B & G is asking for in their budget.
Communications
Tom indicated the Communications proposed budget is as follows
| $450 | 519130 – Signs include maintenance (main sign) |
| $1,500 | 519132 – Advertising/Sponsorships |
| $350 | 519133 – Communications Software |
| $800 | 519134 – Equipment Maintenance |
| $700 | 519137 – Audio parts/software/upgrades |
| $800 | 519138 – Mailings |
| $200 | 519139 – Conferences/training |
| $4,800 | Total Communications |
He indicated Equipment Maintenance, Audio parts are somewhat fungible as they can include a day of Imagine design that costs $800-$1,100. When we need it, we need it. We want to do mailings this coming year, post card reminders. Training/Conferences….we’ll see if we need it. The Communications budget has gotten smaller because we have increased our digital presence. The website at some point will need to be re-done, to the tune of approximately $8,000. He indicated it may be worthwhile to see what we can do to “upgrade” the existing website without undertaking a total overall. He would like to go back to our partner and see what they can do with the existing site. He also indicated JonPaul has been very helpful in working with the communications equipment. Jerry indicated Constant Contact is contained in Realm, and he will check to see it using Realm can save us some money over directly paying Constant Contact.
Fellowship
Sarah indicated that Fellowship proposed budget is
| $200 | 519111 – Kitchen Supplies |
| $700 | 519112 – Coffee Expenses |
| $1,200 | 519113 – Food Expenses |
| $2,100 | Total Fellowship |
It’s a decrease from the 2022 budget of $300; it is, however, an increase over what was actually spent in 2022 because of the pandemic. They budgeted a $100 a month for events with food. Kitchen supplies are basically for cleaning. The new members have expressed an interest in lunch pot lucks. Karen asked about bottled water for the church. Andrew will follow up on that.
Membership and Welcome
Karen indicated the Welcome and Membership proposed budget for 2023 is
| $100 | 519135 – Membership – Printing |
| $600 | 519145 – Membership – include lunches |
| $0 | 519146 – More Light Initiative |
| $700 | Total Membership Development |
It will include 2 new member lunches/events for the year, one in the spring and one in the fall. Printing is for new member packets.
Mission and Service
Jeff indicated M&S proposes a 4.6% increase from 2022 Budget, which will be the Lowest Budget % increase since he believes ever. The average % over the past 4 years has been +12.5% / yr. Local mission spending is projected at 9.0% increase, spread over 14 partners. Global mission spending is projected at 6.4% over 9 partners. Other, which is where PCM and Missionary Christmas gifts, is projected at 0 % increase as is Presbytery. Total M&S increase is projected at 4.6% increase with at least 27 partners. Jeff is emphasizing local giving.
He explained that the church tithes 10% of its Projected Revenue to M&S, and as Revenue Budget is Finalized, M&S will adjust accordingly.
He indicated M&S has agreed to assume most More Light functions. He noted importantly, all Issues regarding CITP assuming More Light Designation remain the Session’s responsibility. The purpose here is to prevent the addition of More Light responsibilities to M&S from squeezing out Mission Giving from existing Mission Partners. It will have a separate Budget of $1,200, down 40% from 2022.
M&S Total plus More Light is 2.7% increase which is up only $1,260 from 2022, the primary purpose of the increases would be for education and honoraria.
He wanted to speak to Earth Care, he had a $1000 budget for 2022, and anticipates going under that amount.
Worship
Cynthia explained her Committee’s request was as follows
| Worship
Worship Supplies 750 |
| Liturgical Arts 0 |
| Total Worship 750 |
| Music |
| Instrumental/Spec 500 |
| Vocal 1700 |
| Instrumental 750 |
| Supplies/Equipment200 |
| Instrument Repair 350 |
| Music License 405 |
| Hand bell Expenses 950 |
| Children’s Choir 150 |
| Total Music 5005 |
| Totals Combined 5755 |
She explained that Jeremy’s music budget is heavy in the fall: he spends most of
the allocated money then. He needs new music to keep the congregation and choir interested. He reuses music when he can.
They are going to tune the piano twice in 2023 as opposed to 4 times in 2022. Sarah thought
The hand bell expenses and vocal music seems high.
Worship will reduce spending so that the 2022 expenses are 20% below the original budget.
Worship’s 2023 budget will be 4% above 2022.
Other Business
Closing Remarks – Paul wanted to address the fact that Tim reworked Capital Funding to include
- Continue Mortgage
- Move Reserve for Capital Replacement to here.
Reasoning: Capital Replacement, just like Mortgage, is longer-term strategic funding which is (a) different than yearly operational/program expenses and (b) will increase as the building ages. Advantage for F&A and CITP: It will be continually more difficult to balance future budgets as the Capital Replacement funding grows as the buildings age without this change.
Paul indicated the overall revenue increase for 2023 is 2.6%
Jerry asked Tom to show the spreadsheet showing the percentages of the budget that are accounted for in each major spending category. What it basically shows is if you look at the Personnel budget and the 10% of total expenses we have committed to Mission and Service then add the four major expenses (asset reserve, utilities, insurance, and mortgage) we spent about 81% of revenues in 2019 and are planning to spend 92+% of the expected revenues for 2023. Certainly not a trend we can continue. The most salient point is we need to continue to grow the revenues.
The requests that have come in from the various committees, puts our budget at ($11794) for 2023, F & A and Tim will work on balancing the projected 2023 budget. Jerry thanked all the chairs for their great information.
There being no further business Andrew closed the meeting with prayer at 8:30 PM.
Respectfully submitted,
Marcia Ladd,
Clerk of Session