Click on the link to review Trinity’s Budget for 2020…
Trinity United Church 2020 Budget Notes
Please review the document “Trinity United Church 2020 Spending Plans”
TUC is forecasting a substantial budget deficit for 2020.
As discussed in 2019, additional hiring of a CYF staff member and a facilities manager would increase our operating costs.
While congregational giving has increased in 2019 and is forecasted to increase further in 2020, it’s not expected that revenues will match operating expenses in 2020, though it is anticipated that it should be balanced by 2021 with additional giving while reducing our operating costs through decreased landscaping and snow removal costs and lower utilities bills (see below).
The real issue is the 2020 Capital Budget. Trinity United’s facilities are now approaching 35 years in age, and components are reaching the end of their useful life. Carpet had to be replaced in the sanctuary, HVAC system components have failed and further upgrades to the HVAC system are required.
The Capital budget for 2020 consists of the following:
- $25,000 for carpet replacement and hearing aid system implementation
- $15,000 for HVAC system failure repairs
- $35,000 for new signage at the road
- $12,000 for upgraded parking lot lighting
- $50,000 for HVAC controls
- $7300 for tractor payments (offset by lower landscaping and snow removal costs)
- $11,000 for discretionary repairs
More on the HVAC Controls
This capital item has been budgeted for several years because it is at the end of its useful life, but we have held off on replacing, partially because we wanted further analysis of the cost/benefit, but primarily because we didn’t have enough money from operating revenues.
It can’t be put off any longer. The good news is that Kevin has completed a cost/benefit analysis and has conservatively estimated that the church can save $5000 a year in annual electricity/natural gas consumption. This has two benefits – it reduces Trinity’s operating budget each year, providing for a 10 year Return on Investment. Second, the decreased energy consumption results in a reduced carbon footprint.
How will the church pay for the operating and capital budget deficit?
The Board has proposed the following to address the deficit:
- that funds required to replace the HVAC controls be borrowed from the Camp Hurlburt Redevelopment Funds (not the Camp Hurlburt fund, but the redevelopment funds) and repaid over 10 years with funds from savings in operating expenses,
- that an ad hoc committee explores the possibility of selling the land above the parking lot,
- that the congregation begins a capital fundraising campaign,
- that the congregation approves a one-time funding from the Camp Hurlburt Fund to pay for the remaining budget deficit shortfall.
The expectation is that the deficit will be covered through a combination of these items. Further explanation and discussion will follow.
Questions or concerns may be directed to David Green, Treasurer at djgreen.hou@gmail.com