Money Matters 6/1/2026
Budget for 2026-27
Thanks to all who participated in the recent Town Hall on next fiscal year's budget. We have much to celebrate from this past year: we paid off our mortgage and completed a nearly $1 million capital campaign. As we look ahead to fiscal year 2026-27 (July 1, 2026–June 30, 2027), the Finance Committee has approached each line item as both a choice and an expression of our values.
To build the budget, each committee submitted three budget levels: a bare-bones level reflecting scarcity, a maintenance level that supports the committee's continuing mission, and a dream level reflecting where the committee hopes to grow. Given our current financial position, we have generally adopted the maintenance level. We also reviewed each revenue line and non-committee expense closely, looking for ways to minimize the deficit while continuing to support our work as a congregation.
After the Town Hall, we revisited several line items and now project a $12,733 deficit: $4,602 higher than what we presented at the meeting. The change reflects a correction: we had not budgeted enough for utilities. Looking at the numbers, we found that electricity and gas costs have risen substantially this year due to both higher rates and higher usage. We budgeted $15,420 for utilities this year but had already paid $17,946 through April and expect to reach roughly $21,500 by June 30. While we anticipate further conversation about how to reduce our consumption, we felt it prudent to budget a 3% increase over that $21,500 figure.
Key elements of the budget for 2026-27:
Projected deficit: $12,733.
Projected pledges: $365,000, a 3.4% increase over the current year's budget, and a goal we are close to reaching. Pledges represent 71% of our revenue.
Projected total revenue: $504,150, a 6% increase over this year's budget. Since the Town Hall, we revisited collection plate revenue and Fleishman Fund interest, adding $3,400 across those two lines.
Projected total expenses: $516,883, a 6% increase over this year. Notable changes:
Salaries are increasing by approximately $15,600. We base salaries on UUA guidelines for our area, and the increase is primarily to bring the new minister to the midpoint, as the UUA recommends. This figure includes a one-time $9,780 for the new minister's moving expenses, which may not be needed. We also increased professional fees for our Director of Administration so he can attend the UUA's organizational meeting for administrators, a group he has been active in and one that strengthens his role here.
Insurance is increasing 7%. We explored other carriers but will continue with Church Mutual next year, since the savings elsewhere were minimal. We did trim about $800 from the Town Hall figure by raising our property and casualty deductible from $10,000 to $25,000. We have not filed a claim in many years, and we could cover the higher deductible in an emergency.
Utilities rise to $22,560, up from $15,420 budgeted this year. We hope to reduce our usage, but the increase is prudent.
Cleaning costs are increasing by $7,400. We were fortunate this year to have a member of the congregation provide cleaning for several months, but that arrangement has ended.
Rentals: We are budgeting a $6,000 increase in rental revenue, offset by $5,800 in Google Ads expense to promote our rentals. The ads will cost $480 per month, and we will monitor whether they are effective; if not, we will stop after a few months.
Please reach out with any questions or concerns. We look forward to discussing the budget further at the Annual Meeting following church on June 14.
Canvass Update
As of May 26, we are only $7,000 away from meeting our canvass goal for the July 2026-July 2027 year. Almost there! Every pledge received helps us minimize next year’s deficit. Thanks to all that have made their pledges. If you have not yet made your pledge, please make it as soon as possible here.
April Results
The actual results for July through April show net operating income, increasing approximately $3,000 from last month. Pledges are approximately $5,000 above expected. Our strong collection plate receipts combined with successful fundraisers continue to offset being underbudgeted for rental income, RaiseRight income and earnings on our LE Fitts fund. Our overall expenses are approximately $7,700 less than budget, mostly due to committees not yet using their budgeted amounts. We also have excess budget due to the early payoff of our mortgage (thanks to a generous donation), which offsets additional costs for high utility costs, computers for our administrative office and water damage costs.
Projecting for the year is always tricky, but I am projecting that we will be close to break even at the end of the year. This assumes that our committees use their full budgets. It also considers that our utilities continue to be higher than budgeted and that we will put some aside for future major maintenance costs.
Actual July to April
Total Revenue $ 420,145
Total Expenses $ 400,863
Net Operating Income $19,282 (excludes special $70,000 donation used to pay off mortgage)
Major Maintenance Project Update
One major project is work needed on our plumbing and sewer line to prevent future water damage like we had in January. Many thanks to John Broome for working with Mirek, our general contractor, and our architect in determining a path forward. We are very appreciative to Mirek for agreeing to take responsibility for the repairs needed and to cover the repair cost.
Expected costs for other major maintenance projects include approximately $4,900 for capital campaign work done but not yet invoiced, approximately $20,000 to install a hardscaping base for trash carts and $6,000-$12,000 for landscaping. In addition, we are in the process of getting estimates for work on the windows in the Loft.
The Finance Committee is starting work with Building, Infrastructure & Grounds, Music & AV Tech and other groups to put together a budget for capital projects needed in the near-term and longer-term to have a plan for financing these needs. This includes replacing an old furnace, tuckpointing the building, upgrading our AV equipment, making Fleishman Hall a more inviting space and other needed projects.
We are still relying on capital campaign pledges to help cover these projects. Thanks to all who have fully paid their pledge. If you still owe amounts, we greatly appreciate your payments.
Respectfully submitted,
