Finance Summary (4th Quarter Report, 2017-18)

pdfJune_2018_Board_RevExp.pdf

Finance Summary for Fiscal Year 2017-18

This year was a very solid year for contributions and pledges, rental income, and program participation. In the past several years ERUUF finished the year with a strong record of pledge completion. In this year of growth, this is certainly the case. The surplus of $8,604 for FY 2017-18 creates an opportunity to address some ongoing needs and priorities. Items to note:
• Mortgage: $104,000 paid off in February 2018 (from Special Campaign proceeds)
• Staff transitions (Youth Ministry Asst.; Office Asst.; Facilities Asst.)
• Additional cleaning needed for VERY busy campus creating higher expenses.
• Greater IT needs and expenses, (new web site completed!).
• Mortgage savings for four months (paid off in Feb. 2018).
• Rental income over $73,000! (Gratitude to the office and facilities staff for making this possible!)
• Workshops upcoming for 2018 have already been paid (Multicultural Team--Mark Hicks weekend).
• Membership events. Offering more memberships classes and dinners creates more expenses than in past years. This is a sign of growth.
• Ordination (an important time of celebration in the life of a congregation).
• There was no auction in FY 2017-18.
• The Board has made a commitment to support the request from the Promise and the Practice (BLUU initiative of the UUA) for $10/member or about $7,000.
• There is a standing commitment to continue the development work with UU consultant Mark Ewert and a Visioning Weekend is planned for Oct. 2018. At the moment there is a portion of a Foundation grant that will cover $1,500 of the $4,500 cost of the visioning consultation. $3,000 is still needed.

Please refer questions on financial details to the Director of Administration or the Board Finance Advisory Committee.

Special Campaign for Campus Needs
In the past year there has been discussion about various ways to consider funding the scheduled maintenance needs of ERUUF. The recent conversation has boiled down to a decision between borrowing funds for immediate facilities needs and/or raising funds through a special campaign for mortgage and maintenance.
The ERUUF Coordinating Team asked a Special Campaign Team develop and implement a strategic fundraising campaign to address campus facilities needs and mortgage reduction. All funds raised will be placed in a designated fund to meet these objectives.
While this campaign is intentionally limited to a selected number of donors now, in the near future ERUUF is likely to need additional campaigns to support such things as our justice work, and the development of new funds that will support the strategic needs of a growing institution.


Background:
In 2017 a comprehensive capital needs assessment of campus facilities provided a detailed overview of cost estimates, projects, and priorities. The Board Finance Advisory Committee, the Buildings and Grounds chair (Peter Romeyn), the Coordinating Team and the Director of Administration have been reviewing options for meeting these needs.
In spring 2017 there was a presentation and discussion of the upcoming budget AND a review of the long term facilities needs for the Fellowship (at the finance forum and the Annual Meeting). The pressing question is how to plan for long-term, scheduled facilities maintenance now that the Capital Campaign funding for capital maintenance is nearing completion. (As of May 2017, there was $46,000 in the Facilities Maintenance Fund. As of Oct. 2017, there is about $9,000 in the fund. Significant work has been completed in the last 5 months, including Sanctuary flat roof, back parking lot, walkway, and more.)
To review, in 2011 ERUUF conducted a comprehensive assessment of major components of the physical campus. In the past six years, we have followed recommendations from the study to address some long-standing, unmet needs on campus. Most of these projects were funded from the Capital Campaign, which was structured to pay off most of the large mortgage ($1M) and also provide some facilities maintenance support. The full scope of the campaign process and the ongoing lists of projects have been reported on extensively in reports to the Board and congregation, and on the web site. (The current mortgage balance in Fall 2017 was about $108,000; with a $1,419 monthly payment.)
For the past 7+ years, the annual operating budget has included $8,000 for facilities support. This covers general repairs, supplies, painting, maintenance, etc. There are additional budget lines related to Facilities; support for garden ($1,000) for landscaping needs, janitorial ($12,000) for cleaning needs, utilities ($26,000) for water, electric, gas, and recycling.

The big picture. Over the next 8-10 years, the total campus scheduled maintenance is estimated around $350,000.
General Project scope:
Sanctuary (painting, carpet, AV and sound enhancement, lighting, wood floor, HVAC, lobby, office)
Fellowship Hall (roof, bathrooms, floor, HVAC, walls, AV enhancement, painting)
CARE Bldg. (roof/gutters, painting/wood repair, carpet, kitchen, floors, LED retrofit, deck, stairs, AV upgrades)
Campus (parking lot, railings/walkway, fence)
Infrastructure (programmable thermostats, IT hardware, wireless capacity)
To supplement the detailed assessment already conducted, the Board is securing an engineering reserve study both for scheduled maintenance and information technology to guide planning for funding to address immediate and long-term facility needs.

Update
The Special Campaign for facilities maintenance concluded Jan 31, 2018 and raised $320,768. The match grant challenge of $250,000 will bring the total to $570,768. The remarkable generosity of the Fellowship will enable ERUUF to care for the campus well into the future.
The immediate plan was implemented to pay off the remaining mortgage ($104,000 paid Feb 2018) and put the remaining funds already contributed into Certificates of Deposit with Self-Help Credit Union ($200,000 March 2018). An adequate amount needed for priority 1 repairs will be held in a Facilities Maintenance reserve fund.
The Board Finance Advisory Committee is drafting a policy to clarify the use of these funds strictly for facilities maintenance and enhancement. In addition, the Board is commissioning an engineer study to assess the long-term facilities needs for the campus, including technology. A portion of the money now freed up in the budget for mortgage payment will be added to the facilities maintenance fund. The Board and Coordinating Team are carefully reviewing all the financial details related to these issues.

 (document by Daniel Trollinger, Director of Administration)