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Financial Results from 2007 & the 2008 Budget
Attached is a summary of 2007 income & expenses compared to 2006 and our 2008 budget
approved at Administrative Council on January 28, 2008. Here are some comments as you
review the 2006 & 2007 financials:
• 2006 had unusual income and expenses related to the roof replacements at both the
church and the parsonage, as well as the 50th Anniversary celebration. Those are
noted to the side.
• The drop in Pledges & General Offering in 2007 is tied to declining attendance. It
should noted 2006 was a high water mark for Wesley in giving. But, 2003 was the last
time we were below $200,000 in giving. Our budget for 2007 giving had been
$224,000, which we missed badly.
• Our staff must be given tremendous credit for managing expenses. After accounting
for the unusual income & expenses in 2006, we cut expenses by $6,000 in 2007 despite
higher insurance & utility costs and a decision by the Finance Committee to pay
down our line of credit by over $8,000.
• Even with the reduced expenses, Wesley incurred a $29,000 operating deficit in 2007.
The Conference Grant, our line of credit & reduced cash balances funded the deficit.
2008 Budget
The 2008 budget was a very difficult process. We budgeted the same pledge giving in 2008,
but it is very important to note that our Stewardship Campaign for 2008 resulted in only
$184,000 in pledges vs. $206,000 pledged for 2007. We are budgeting lower expenses
again in
2008 as we do not plan to pay down the line of credit again, insurance expenses actually
reduced in 2008 and we cut other operating costs. Despite these cuts, we are forecasting a
$23,000 operating deficit in2008. (This budget was approved prior to Peggy Haywood
announcing her decision to leave the staff at Wesley).
Wesley cannot continue to operate at a deficit, so we have put in place plans to evaluate
ways
to increase income because we strongly believe that cutting expenses further will only lead to
further attendance & membership declines. We have already met with the South Indiana
Conference Foundation to discuss how urban churches such as Wesley manage their
finances. You will be hearing more about that as the year progresses. We are also
attempting to schedule a meeting with someone from the District for their ideas. A group is
being formed to investigate grants and other sources of income.
But, most importantly, the church must rely heavily on the support of its membership, not
only to provide resources but to attract new members to Wesley. Wesley is a beacon of hope
in a neighborhood that has great challenges. God has placed us here for a purpose. We
must
work hard to fulfill our Mission. Your prayers, ideas and support are critical for us to
overcome our current financial challenges.
If you have any questions about the budget or our finances, please see Mark Bruin or Gayle
Becher. Please keep the Finance Committee and Wesley in your prayers. Finally, remember
that “God loves a cheerful giver”.
Attached is a summary of 2007 income & expenses compared to 2006 and our 2008 budget
approved at Administrative Council on January 28, 2008. Here are some comments as you
review the 2006 & 2007 financials:
• 2006 had unusual income and expenses related to the roof replacements at both the
church and the parsonage, as well as the 50th Anniversary celebration. Those are
noted to the side.
• The drop in Pledges & General Offering in 2007 is tied to declining attendance. It
should noted 2006 was a high water mark for Wesley in giving. But, 2003 was the last
time we were below $200,000 in giving. Our budget for 2007 giving had been
$224,000, which we missed badly.
• Our staff must be given tremendous credit for managing expenses. After accounting
for the unusual income & expenses in 2006, we cut expenses by $6,000 in 2007 despite
higher insurance & utility costs and a decision by the Finance Committee to pay
down our line of credit by over $8,000.
• Even with the reduced expenses, Wesley incurred a $29,000 operating deficit in 2007.
The Conference Grant, our line of credit & reduced cash balances funded the deficit.
2008 Budget
The 2008 budget was a very difficult process. We budgeted the same pledge giving in 2008,
but it is very important to note that our Stewardship Campaign for 2008 resulted in only
$184,000 in pledges vs. $206,000 pledged for 2007. We are budgeting lower expenses
again in
2008 as we do not plan to pay down the line of credit again, insurance expenses actually
reduced in 2008 and we cut other operating costs. Despite these cuts, we are forecasting a
$23,000 operating deficit in2008. (This budget was approved prior to Peggy Haywood
announcing her decision to leave the staff at Wesley).
Wesley cannot continue to operate at a deficit, so we have put in place plans to evaluate
ways
to increase income because we strongly believe that cutting expenses further will only lead to
further attendance & membership declines. We have already met with the South Indiana
Conference Foundation to discuss how urban churches such as Wesley manage their
finances. You will be hearing more about that as the year progresses. We are also
attempting to schedule a meeting with someone from the District for their ideas. A group is
being formed to investigate grants and other sources of income.
But, most importantly, the church must rely heavily on the support of its membership, not
only to provide resources but to attract new members to Wesley. Wesley is a beacon of hope
in a neighborhood that has great challenges. God has placed us here for a purpose. We
must
work hard to fulfill our Mission. Your prayers, ideas and support are critical for us to
overcome our current financial challenges.
If you have any questions about the budget or our finances, please see Mark Bruin or Gayle
Becher. Please keep the Finance Committee and Wesley in your prayers. Finally, remember
that “God loves a cheerful giver”.
