fus mid year update forum

Mid-Year Update ForumJanuary 8, 2012

12:45 Opening Words, Karen Gustafson12:50 Mid Year Financial Update

Finance Committee of the Board1:30 Governance Update

Governance Committee of the Board

1:50 Closing Words, Karen Gustafson

FUS Financial Update

• Introductions and Overview

• Capital Budget and Debt update

• Mid-Year 2011-12 Fiscal Status

• Summary

Foundation and Special GiftsCapital Pledges

Annual Pledges

Other Annual Revenue Restricted

Funds

CAPITAL EXPENSES-Preservation-Equipment-Furnishings

CAPITALFUND

OPERATINGFUND

OPERATINGEXPENSES

FUS Finances - Overview

MORTGAGE 60%

MORTGAGE 40%

Foundation and Special GiftsCapital Pledges

CAPITALFUND

MORTGAGECAPITAL EXPENSES-Preservation-Equipment-Furnishings

Capital Budget and Debt Update

Foundation and Special Gifts

Capital Pledges

CAPITALFUND

Capital Fund - Revenue

Capital Fund Balance$348,106 as of December 31

Capital Campaign statusTotal pledged: $6.3 millionTotal collected: $6.07 millionExpected in 2012: $45,000Unpaid pledges (2007-2011): $251,000

Foundation (Stonehaulers):$40,000/year, depending on market

CAPITAL EXPENSES-Preservation-Equipment-Furnishings

CAPITALFUND

Ongoing Capital Expenses$140,000 in FY 2011-12

- Hearthroom window refurbishing (funded by the Friends)

- Isom House windows- Isom House remodeling- Roof Planning- HVAC changes

MORTGAGE

• Construction loan (interest only) converts to term loan in 2012, first payment March 2012

• Loan up for renewal in 2017

• Total debt entering term loan: $4,472,015

• Interest rate, fixed – 6.28%• Total Annual payment FY 2011 – 2012 - $303,000

• Principal - $25,000• Interest - $278,000 (transition from interest only construction

loan to Principal and Interest term loan)• Total Annual payment FY 2012-13 - $357,000

• Principal - $76,000• Interest - $281,000

Debt Update

OPERATINGFUND

Operating Budget: Debt Repayment Plan % of Total Debt

Fiscal Year Debt Repayment Repayment

2011-12 $140,000 40%

CAPITALFUND

MORTGAGE 60%

Mortgage 40%

OPERATINGFUND



2011-12 $140,000 40%

2012-13 $240,000 67%

CAPITALFUND

Mortgage 33%

MORTGAGE67%

OPERATINGFUND



2011-12 $140,000 40%

2012-13 $240,000 67%

2013-14 $350,000 97%

CAPITALFUND

Mortgage 3%

MORTGAGE 97%

OPERATINGFUND



2011-12 $140,000 40%

2012-13 $240,000 67%

2013-14 $350,000 97%

2014-15 + $360,000 100%

CAPITALFUND

MORTGAGE 100%

• Ramp-up of debt repayment and inflation make maintenance of status quo challenging

Increase in Expenses Implied Pledge Related to Debt & Inflation Growth

2011-12 $75,000 - $95,000 6-8% 2012-13 $100,000 - $150,000 9-13%2013-14 $110,000 - $140,000 9-13%2014-15 $10,000 - $30,000 1-2%

Ongoing Challenge – Growth in Debt Payments

Capital Fund

2011-12 2012-13 2013-14 2014-15 2015-16 Dec-16 $-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Projected Year-end Balance

By 2016, we hope to call on our capital fund for a roof replacement (2014) and organ improvement (2016). These projects are within our reach if we meet the challenge to pay our mortgage from operating funds by 2014-15.

Annual Pledges

-Fees-Rentals-Foundation-Parking-Other Fundraising

RestrictedFunds

OPERATINGFUND

OPERATINGEXPENSES

Mid-Year 2011-12 Fiscal Status

• Member pledges make up the bulk of our annual revenues – in 2011-12 we expect about $1.17 million in pledge revenue.

• Our other sources of revenue generate a combined $440,000.

•The use of over $70,000 in restricted funding (primarily for RE, Music, and Quest) has allowed us to avoid cutting back those programs this year.

Operating Revenues2011-12 Revenues: $1.61

mil.

Pledge Payments (73%)

Other (11%)

Foundation and Restricted (8%)

Rent (8%)

Mid-year Revenue Update– Pledging Households

• 893 households have so far pledged $1.18 million• 3% increase in the total amount pledged

– slightly under budget (.7%) • 8% increase in number of households pledging

– Pledge revenue • 47% of pledged amount has been paid• Thank you to all who are current on your pledges!

– Other revenue• YTD other revenue totals $259,000 and is 59% of the

budgeted total for the year.

• The bulk of our expenses relate to our staff and our programs – in 2011-12 these two areas account for almost 75% of our total budget.

• We have little ability to significantly reduce general office expenses, building maintenance & utilities

• Debt service is not a flexible expense.

• Shortfalls in revenue will directly impact personnel and program spending.

Expenses2011-12 Expenses:

$1.609 mil.

Staffing & Program (76%)Gen'l (Office and Bldg) (15%)Debt Service (9%)

Mid-Year Expenses Update

Personnel 68% of budget YTD 48% of budgeted personnel costs

General Expenses (less debt repayment) 15% of budget YTD only 37% of budget expended

Program Expenses 8% of budget YTD only 44% of budget expended

Debt Repayment 9% of current budget

Operating Budget compromises

• Children’s RE, music, and Quest sustained this year by restricted funding

• Social justice position is only half-time• Fundraising professional is only half-time• UUA denominational contribution is at 5% of

recommended level

Summary

• Finding the capacity to handle our debt payments is a continuing challenge over the next 3-4 years – we need at least growth in pledges to avoid difficult decisions each year that will impact staff and programs.

• Programs are sustained this year by the use of earlier directed gifts and dedicated fundraising We recognize it will be difficult to maintain this level of spending next

year.

• Managing the transition to full debt repayment: Deepening member engagement, Growth in new members, and New sources of funding.

Governance Committee Update

• Series of Open Meetings• “Think about a time when you were

spiritually touched at First Unitarian Society, and share with your small group. What what common themes emerge?”

• How can the First Unitarian Society community facilitate greater spirituality?”



• Community• The Larger Community• Worship/Spirituality• Service

Common Themes


• Small Groups and communities such as Chalice Groups• Music: “Members singing to members”• Shared values• Sharing of life events• Spiritual support , both individually and as groups of individuals• Our young people, Coming of Age service, intergenerational activities

Community


• Search for spiritual meaning• Seasonal rituals are shared with other religious orientations, providing

comfort for many• “Trinity of ministers” with diverse perspectives and experiences• Spiritual nature of shared music• Recognition of individual and diverse spiritual approaches• Love and respect for Nature

Worship/Spirituality


• The FUS campus; comfort in recalling life events taking place here• Quest, women's retreats, annual retreat/workshops and Adult religious

Education have provided a platform for spiritual engagement• Doing work that matters, learning to take charge, and being mentored

by others

Worship/SpiritualityContinued


• FUS provides a forum with respect for diversity, inclusivity, acceptance• Service Sunday activities• Wartmann Lecture series• Shared worship with other congregations

The Larger Community


• More small groups that facilitate compassionate listening to each others stories

• Neighborhood groups; should have theme or reason for meeting and a structure. Open to new members.

• Add Neighborhood group indicators on name tags.

IdeasGroups


• Foster mentoring relationships between new people and longer-term members

• Find ways to foster wider engagement for members who have mainly been occupied with Religious Education activities

• Be welcoming as fully as possible; all ages, abilities, cultures• Focus on accessibility in language, how we set up meetings

IdeasInclusion


• Mentoring Program for new members• Foster re-engagement for long-term members• More technological outreach - both for those physically unable to

attend and “cyber-agers”• Add intentional mingling activities to coffee hour

IdeasInclusion


• The candlelight vigil at the capitol was a very important example of how we act on our values.

• Music exchanges with other faith communities• Use Standing on the Side of Love/Social Justice activities as a way to

connect with other faith communities, particularly congregations of color.

• FUS youth who attended General Assembly are very interested in Standing on the Side of Love activities

IdeasLarger community


• How do we know who needs help?• How does the Staff let us know their needs?• Get involved in a “community health initiative”- grant sponsored by

Johnson or Dane County United efforts (currently inactive)• Michael’s monthly programs at Oakwood Village, Capital Lakes are

ongoing--involve kids in some visits to these places

IdeasService


• Board Meetings focus more on vision; they have a more spiritual tone• Board members have found the Open Question meetings very

satisfying; they really felt like reasoning together• Staff feel more supported and focused

How it’s going

fus mid year update forum

Documents

governance committee update

debt repayment

faith communities

music

pledges

growth

mid

members