FUS Financial Update

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

Operating Budget: Debt Repayment Plan % of Total Debt

Fiscal Year Debt Repayment Repayment

2011-12 $140,000 40%

2012-13 $240,000 67%

CAPITALFUND

Mortgage 33%

MORTGAGE67%

OPERATINGFUND

Operating Budget: Debt Repayment Plan % of Total Debt

Fiscal Year Debt Repayment Repayment

2011-12 $140,000 40%

2012-13 $240,000 67%

2013-14 $350,000 97%

CAPITALFUND

Mortgage 3%

MORTGAGE 97%

OPERATINGFUND

Operating Budget: Debt Repayment Plan % of Total Debt

Fiscal Year Debt Repayment Repayment

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

• The major challenge we face as a congregation is building the capacity to increase our pledge revenue so that in the coming years we can meet our debt payments while at the same time enriching FUS programs. We need at least 10% 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.