Trinity United Church 2020 Spending Plans

Trinity United Church 2020 Spending Plans

The Good News!

  • Attendance and Revenues are trending up. Through 11/30/19, Revenues are up 10% year on year, with larger gains in the latter half of the year
  • Market performance for both the Camp Hurlburt Funds as well as the General Funds reflected the overall market gains with the funds recovering all of the losses from 2018 as well as additional solid returns.
  • The Season of Intentional Giving campaign was successfully launched this fall

 

  • Robin started with the congregation in March and has been leading numerous program initiatives(can’t you feel the difference already!)
  • Trinity has hired a Facilities Manager – Kevin McInnis who has taken on numerous projects over the year to improve the facilities and the grounds
  • Trinity has just hired a CYF team to develop and build out programs for the CYF church community as well as the CYF Vernon community at large

 

The Bad News (with caveats)!

 

  • Congregational giving for 2019 was lower than budgeted partly because the Intentional Giving campaign was kicked off in the fall so the impact of that campaign is only being seen in Q4
  • 2019 income/expenses are expected to be balanced but only because of higher returns than budgeted on the two investment funds

 

 

THE UGLY  (no caveats)!

 

  • The Church building is showing its age. Unexpected capital expenditures are coming more frequently
  • Carpet in the sanctuary was replaced in January. This wasn’t a budgeted expenditure, but the wear on the carpets on the aisle became a safety hazard.
  • Major failures in our heating system with this recent cold snap. This is going to be an expensive repair/replace even though we spent $60,000 on our Air Handling Units in 2018.  We are hoping that our insurance will cover a portion of the failure, but we don’t have answers yet.

 

What does this mean?

 

Trinity United Church Balance Sheet Summary

  • Our assets are comprised of four major components

 

  1. The Land and the Building
  2. The property/contents of the building
  3. Camp Hurlburt Fund
  4. General investment funds **

 

**BUT  –  There is a common misperception that all of the General investment funds are available for any use, but this isn’t actually the case… .

 

The funds in the General Investments are primarily funds that were raised by the congregation and the community for the Camp Hurlburt redevelopment  (approximately $280,000 out of $350,000).  The commitment (once it was determined that Camp Hurlburt redevelopment wasn’t going forward) to the individuals and the organizations that donated to this cause was that this money would be spent on similar programs and activities in the church and broader community – funding for Children Youth and Families (donations to Camp Mackenzie is an example of this).

 

Up until now, our revenues have (more or less) covered our operating expenses with no funds left over for capital improvements.

 

In 2020, with increased staff commitments and new programs, but with additional giving, we may still meet this.

 

However – without additional giving or a capital stewardship campaign, there isn’t enough money to cover our required or discretionary capital expenditures without “borrowing” money from our other investments (the General Investment Funds).

 

So what are the proposed capital expenditures for 2020?

 

  1. Carpet replacement in the sanctuary (had to be replaced for safety considerations) (25,000)
  2. New Hearing Aid system installation (had to be installed before new carpet was laid) (6,000)
  3. Heating control system – unit is at the end of its expected life (60,000)
  4. New exterior signage (35,000)
  5. Improved parking lot lighting (12,000)

 

And as of this week:

 

  1. New Staged electrical control unit – no cost estimate yet
  2. Failed Air Handling Unit #1 (the one unit that wasn’t replaced in 2018 because of the inability to access and the assessment at that time that it would be fine….).It appears this failure occurred because the boilers weren’t working with the failed staged electrical control unit. Estimated cost at this time is $11,000.

 

Questions?  (Sorry there are no conclusions!!)

 

  1. How much of the costs of the emergency replacement of the electrical control unit will reduce the proposed heating control system costs?
  2. Will insurance cover a portion of the failure
  3. Where will the money come from to pay for these expenditures in the short term (this can be answered – from the General Investment funds that are supposed to go to CYF initiatives)
  4. Where does the money come from in the long term (the General Investment funds will need to be reimbursed based on our commitments to our donors).
  5. What about the other capital projects that we need to look at down the road – additional roof repairs, window replacement, carpet replacement in remaining portion of building)