HTLC 2011 Budget Planning -- Survey Results

2011 Budget Planning:

2011 Budget Planning January 9, 2011 | Version 17 1

Objectives:

Review Budget Milestones Review 2011 Budget Objective Review Survey Responses Review Pledges to Date Discuss Possible Budget Outcomes Collect additional pledges Objectives 2

HTLC Mission Statement:

To be a nurturing community where Jesus Christ transforms people’s spiritual lives and empowers them to make a difference. Bottom Line We want HTLC to be a place where God changes peoples lives . HTLC Mission Statement Objective 1: To define & implement a clear and simple plan of assimilation/connection/enculturation from first awareness to active participation Objective 2: To grow a comprehensive children’s ministry which meets the needs of preschool through 6th grade children Objective 3: To grow a comprehensive youth ministry which meets the needs of Junior & Senior High youth Objective 4: To define & implement a process for adult spiritual formation and transformation Objective 5: To develop hands-on Local & Global Service Opportunities 3

Earthly Limits & God’s Infinite Gifts:

While HTLC is a place where God changes peoples lives , we still have earthly limits to work within: Time People Money However, being in God’s house these mustard seeds can explode in ways that are not bound by these parameters. God asks us for faith to make this gifts boundless, limitless, and timeless. Earthly Limits & God’s Infinite Gifts 4

Review Milestones:

Review Milestones 5

Our Fiscal History:

Year Actual Income Actual Expense (Deficit) / Surplus (Budget Deficit Passed) 2001 $245K $251.5K ($6.5k) Not Avail 2002 $281K $274.5K ($6.5K) Not Avail 2003 $265.5K $295K ($29.5K) Not Avail 2004 $276K $299K ($23K) ($35.5K) 2005 $274K $302K ($28K) ($59.5K) 2006 $294K $303K ($9K) ($47K) 2007 $299K $308.5K ($9.5K) ($39K) 2008 $283K $281.5K $1.5K ($39K) 2009 $276K $266.5K $9.5K ($16K) 2010 $250K* $277K* (27K) ($20.5K) Our Fiscal History 6

Where are we?:

October: Ministries submitted budgets ($1,500 Reduction) Oct-Nov: 2011 Stewardship Campaign December 5 th & 7 th : Townhall meetings Seek Common Understanding – current state on our financials Define 2011 Budget Objective Distributed/Collected Surveys Where are we? 7

Where are we? (Cont’d):

January 9: Town Hall Review Survey Results Review Current Pledge Status Discuss Possible Outcomes January 15: Deadline for New Pledges January 18: Council & Finance meet to finalize 2011 budget based on congregational input & survey responses January 30: Congregational Luncheon in MPR! 2011 Budget Fire Alarm System Where are we? (Cont’d) 8

2011 Budget Objective:

2011 Budget Objective 9

Balanced Budget:

We need to pass a balanced budget: We cannot afford to increase our line of credit (currently $54K, capped at $75K) We need to be able to prove to the bank we are financially viable for the future We need to secure a loan for the 2011 Fire Alarm System ($55K) We need to be responsible stewards Balanced Budget 10

Survey Responses:

Based on 24 responses: 21 cards, 3 online Survey Responses 11

1. Based on this information, how severe do you feel our financial situation is?:

a) We will always be in debt 4 responses – 19% b) We can achieve a balanced budget this year, and begin a journey to eliminate our debt within 5 years 15 responses – 71% c) In five years, Holy Trinity will grow three fold in contributions taken in and contributions given out 2 responses – 10% 1 – didn’t respond – 4% 1. Based on this information, how severe do you feel our financial situation is? 12

2. Based on this information, what are you most likely do?:

a) Increase current pledge by 20%, 0 responses – 0% b) Increase current pledge by 15%, 1 responses – 4% c) Increase current pledge by 10%, 1 responses – 4% d) Increase current pledge by 5% 8 responses – 35% e) Start contributing 1 responses – 4% f) No change in current pledge amount 9 responses – 39% Other 3 responses – 13%: Will increase 3, will increase 1-5% 1 – didn’t respond - 4% 2. Based on this information, what are you most likely do? 13

3. What would you be willing to sacrifice in order to reduce our spending?:

Of the people who responded ( 16), the 25 responses and their percentages are: 4 16% Nursery 3 12% As needed/Whatever is necessary 1 4% Reduce air conditioning 1 4% 10% of ministry reduction 3 12% Kitchen supplies 3 12% Paper, mailings 2 8% Freeze salaries 3 12% Lawn service 1 4% Non-essential programs, i.e. small group ministries? 1 4% Nothing 2 8% Reduction in salaries/salary increases 1 4% Taize 25 100% 3. What would you be willing to sacrifice in order to reduce our spending? 14 8 – didn’t respond: 32%

4. What should we make sure not to change, i.e., what is essential for you at HTLC?:

4. What should we make sure not to change, i.e., what is essential for you at HTLC? 15 Of the people who responded (21), the 30 responses and their percentages are: 10 33% Music 6 20% Youth and children's programs, Sunday School 4 13% Worship 4 13% Pastor/Staff 1 3% Hospitality 1 3% Maintenance 1 3% Family friendliness 1 3% Missions 1 3% Nursery 1 3% Outreach 30 100% 3 – didn’t respond: 12%

5. Aside from money, what ways would you be willing to contribute so we could reduce spending?:

5. Aside from money, what ways would you be willing to contribute so we could reduce spending? 16 Of the people who responded (18), the 23 responses and their percentages are: 11 48% Provide kitchen supplies ($600) 3 13% Nursery duty ($2,300) 4 17% Yes/Anything/Everything 3 13% Mowing lawn ($0-$5,940) 1 4% Provide janitorial supplies 1 4% Provide office supplies 23 100% 6 – didn’t respond: 29%

General Comments:

We do need to think more positively Growing up, our church had a men's club that was responsible (like the ushers) for regular maintenance We really appreciate all of your work Very good meeting, clear, concise We need another fundraiser besides the rummage sale. After Christmas, have a brainstorming session for raising money Less paper inserts in times and bulletin Cut down people and churches from our list to mail General Comments 17

General Comments (cont’d):

I didn't know we had a nursery. Do we use it and why does it cost 2,300 a year. Can't we cut down? The key to our success is getting everyone on board and committed. I think we are on the right track. Blessings on all who have worked so hard on this. Combine 2 services to 1 (less electricity, lights and A/C) Thank you for calling us to fiscal responsibility and stewardship. General Comments (cont’d) 18

General Comments (cont’d):

We need to limit spending to match revenue. It is unrealistic to "hope" that enough monies will come in by increased giving or additional families joining within the next year. In fact, as a new potential member, I would be concerned about our financial debt. This is a great idea General Comments (cont’d) 19

Review Pledges:

Review Pledges 20

Pledges to Date:

Amount Pledge As of January 6, $227,608 has been pledged. Additional Contributions In past years, about 25% more comes in as additional revenue. For 2010, this was actually 15% -- most likely due to the economic downturn. For 2011, we are assuming a 15% additional contributions above the pledged amount for budgeting purposes. Pledges to Date 21

Discussion of Possible Outcomes:

Discussion of Possible Outcomes 22

Budget Changes for Next Year:

$250K Revenue $217K Pledges $33K Other (Additional Contributions, Holidays, Petra, Building Use, etc.) $277 K Expenses $261.5 Revenue $227.5K Pledges $34K Other (Additional Contributions, Holidays, Building Use, etc.) $287 K Operating Expenses ($6K Salary Increases, +$1.5K Utility Increases, +$1.2K Office, +2.5K Building - $1.5K Ministry Expenses) 2010 Actuals 2011 Budget ?!? Budget Changes for Next Year 23

Spectrum of Change:

Increase Contributions by 9% ($287k) Full Transparency to Congregation, Increased Membership, Increased Contributions 9% (or $6.00/wk/pledge) Middle Ground: Increased Contributions & Reduced Spending No Nursery ($2,300) No Taizé ($1000) Reduced Landscaping ($0 - $3,950) Snow Removal ($0 - $5,940) No Bulletins ($550) No Kitchen Supplies ($600) No Salary Increases ($6,000) Salary Reductions Other ? Staffing Layoffs Spectrum of Change Decrease Spending By 9% (261.5K) 24

Possible Outcomes?:

$261.5K in Revenue -$287K Expenses ----------- -$25.5 Deficit +$5k Reduced Spending: $2,300 Nursery $600 Kitchen Supplies $1000 Taizé $1000 Lawn Service ------------ -$20.5 Deficit Staffing impact Possible Outcomes? 25 $261.5K in Revenue -$287K Expenses ----------- -$25.5 Deficit +$8k Reduced Spending: $2,300 Nursery $600 Kitchen Supplies $1000 Taizé $3000 Lawn Service $1000 Other ------------ -$17.5 Deficit +$10K Additional Pledges ------------ -$7.5 Deficit Staffing impact

Next Steps:

Collect additional pledges 115% of pledges received as of January 15th determines our revenue budget for 2011. Finance Committee and Congregational Council will meet on January 18th to determine balanced budget for 2011 using the congregational responses from data cards and the contributions pledged. Sunday, January 30th , hold the Congregational meeting for final vote on 2011 budget and new proposed fire alarm system. Next Steps 26

Appendix – Data Slides from Prior Town Halls:

Appendix – Data Slides from Prior Town Halls 27

Current Assets:

Current Assets Total = $980,924* * As of 10/31/2010 28

Intrinsic Value:

Provided 3 community dinners Established a Lay Care Ministry Received 20 new members Started a Youth Ministry Taught Sunday School all summer Baptized 4 children Celebrated 12 First Communions Planted the retention basin Enjoyed the first Rally Day Picnic Blessed a patio full of pets Voted to create a new Multi-Purpose Room Worked at the Food Pantry Celebrated the Season of Creation Won the 4 th of July trophy Enjoys musical gifts of children and youth in worship Teaches the faith to 19 Confirmation students Started a partnership with Appalachian Ministry Streams Sunday worship over the internet Started new Spiritual Formation and Family Groups Donated all-time high Rummage Sale proceeds Enjoyed inaugural Youth Dinner and Game Night Increased giving to the work of the local and national church Joined the LSTC Ministry in Context program Kept almost all the congregation’s ministries and traditions and held expenses under budget Intrinsic Value 29 Let our light shine!

2010 HTLC Forecast*/Actuals:

2010 HTLC Forecast*/Actuals Operating Budget = 277,774 + Designated Funds = 43,266 ----------------------------- Total = $321,040 * Projected last two months of 2010 to get entire picture 30

HTLC vs. Average:

Holy Trinity Average Church Spending HTLC vs. Average 31

Outstanding Debt:

Outstanding Debt 32 Total = $186,415