ROYAL REDEEMERCONGREGATIONAL MEETING

AGENDA•Opening Prayer (Pastor Joel)

•2014 Highlights (Pastor Joel)

•Ministry Plans for 2015 (Pastor Joel)

•Budget for 2015 (Linda Ellison)

•Board of Servant Leaders Candidates (Amy Wieneke)

•Q&A (Board members)

•Closing Prayer (Pastor Joel)

•Cast ballots in the Commons on your way out.

OPENING PRAYER

2014 HIGHLIGHTS • What’s UP?• Giving (up 6.4%)• Worship Attendance• Visitors • Fam Jam • People in the Word• Confirmation/I56 programs• Vintage Royals

2014 HIGHLIGHTS

• What’s NEW?• DivorceCare for Kids • Marriage event • Concerts• Connection Point • Start Smart Basketball• Upward Basketball• The Story

2014 HIGHLIGHTS

• What’s NEW?• Fellowship One/Infellowship• Ben Burge – Ministry Asst.• Jim & Leslie Schiller – Property• Missy Reardon – IGNITE56• Jackie Schauer – Care• Becky Turner – Fam Jam• Café furnishings/decor

2014 REPORT

• Average Weekly Worship Attendance:• 2013: 299• 2014: 312

• Giving beyond RR:• 2013: $42,000 (10%)• 2014: $51,255 (8.5%)

PATHWAYS

Goal: 3 strategies for impacting our community over next 3 years

PATHWAYS

Strategy 1: Time, Financial and Relational Pressures

•FPU•Christmas Miracle Gift

PATHWAYS

Strategy 2: Life Transitions (2013-14 Marriage & Divorce)

•Winning Marriage•DivorceCare & DC4K•Surviving the Holidays event

PATHWAYS

Strategy 3: Prepare children & teens for the pressures of suburban life

• College-age mentors for HS group• I56, Confirmation hot topics• Boy scouts/girl scouts

2015-16 MINISTRY PLANNING

• Having the Talk• MIT Quality of Life seminar• Financial Peace Legacy• On site counseling• Grief support group• Seniors Connect• Wonder Women

2015-16 MINISTRY SUPPORTS

• Building Enhancement Team• Staff

• Call Associate Pastor• Pastor Joel sabbatical (June)

• Structure• Develop policies & systems• Equip volunteers/teams• Utilize Fellowship One• Develop online calendar/space booking

2014 FINANCIAL SUMMARYLINDA ELLISON, TREASURER

Page 15

Review of 2014 Church BudgetBudget vs. Actual - Income

Actual Budget DifferenceGOI1 · Member Giving 437,005.76 431,000.00 6,005.76 GOI2 · Reimbursed Expenses 3,082.98 5,000.00 (1,917.02)GOI3 · Special Services Income 4,630.00 2,500.00 2,130.00 GOI4 · Loose Plate Giving 9,470.37 10,000.00 (529.63)GOI5 · Interest Income 3,527.10 1,200.00 2,327.10 GOI6 · Preschool Rent Income 11,115.00 11,115.00 0.00 GOI7 · Other Giving/Income 4,155.11 0.00 4,155.11 Total GOI · General Operating Income 472,986.32 460,815.00 12,171.32 RFI · Reserve Fund IncomeRFI1 · Youth group budget income 2,900.00 2,900.00 0.00 RFI2 · Moved into GOI to pay RF bills 70,297.38 RFI3 · Reserve Fund Giving Donations 108,935.05 Total RFI · Reserve Fund Income 182,132.43 2,900.00 179,232.43

Total Income 655,118.75 463,715.00 191,403.75

Page 16

Review of 2014 Church BudgetBudget vs. Actual - Expenses

ExpenseAE · Administrative Expenses 16,240.52 16,025.00 215.52 BG · Building and Grounds 139,936.46 133,771.00 6,165.46 CE · Christian Education 15,492.28 20,000.00 (4,507.72)FE · Fellowship 6,893.97 5,750.00 1,143.97 ME · Missions 18,739.22 18,700.00 39.22 MME · Music Ministry 2,069.06 2,600.00 (530.94)RFE · Reserve Fund expenses 179,232.43 SE · Payroll/Staffing Expenses 296,022.32 314,196.00 (18,173.68)

Total Expense 674,626.26 511,042.00 163,584.26

Total Deficit for 2014 (19,507.51) (47,327.00) 27,819.49

Page 17

Review of 2014 Church Budget Income

2014 Summary

INCOME 2014 Member Giving was $437,005

1.4% more than budget 6.4% more than 2013 Member Giving.

“Other Income” was $35,981 - 2.1% over budget Loose plate offerings, Reimbursed expenses, PreSchool, Interest,

etc.

Total Income was $472,986.32 vs. Budget of $460,815.

Page 18

Review of 2014 Church Budget Expenses

EXPENSES

Total Expenses were $19,507.51 more than budget.

Worship supplies were $215.51 more than Budget due to Computer and Internet expenses not being figured into the 2014 budget.

Building and Grounds was $4,381.32 over budget due to higher than expected snow removal, janitorial supplies, and utilities.

Christian Education was $3,567.85 less than Budget due to reduced camp fees (less campers) and more participant funding.

Fellowship was $1,193.47 more than budget due to café supplies and multiple celebrations (staff /volunteer departures).

Missions was $39.22 over due to advertising not being figured into the budget. Music ministry was $530.94 under budget due to not needing added equipment. Payroll was $18,173.68 less mostly due to Anders departure

Page 19

Royal Redeemer Lutheran Church & Pre-School Asset SummaryDecember 31, 2014

ASSETS

Checking Fifth Third Bank………………………………………............. 68,808.35

Savings LCEF (SBM Account)………………………………..……….. 352,683.85

TOTAL ASSETS……………………………………………………………………………….. $ 421,492.70

___________________________________________________________________________________

FUND BALANCES

General Operating Fund…………………………………….... 143,982.80 Building Fund…………………………………………………… 189,599.24 Memorials………………………………………….…………… 2,391.08 Missions………………………………………………………… 35,518.30 Special purpose funds……………………………………….. 11,482.36 PreSchool PrePaid Tuition…………………………………… 10,240.00 Other Funds……………………………………………………. 25,539.45 Preschool current (deficit/income)……..……………………. 2,739.47

TOTAL EQUITY/LIABILITY FUNDS………………..…………................................... $421492.70

Outstanding Loans (mortgage)……………………............................… $1,361,325.33

Page 20

2014 Church BudgetMember Giving Growth (2004-2014)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Page 21

2014 Church Budget

Growth in Member Giving (2001 – 2014)

Year   Amount   Increase vs. Previous Year    2014 $437,006 $26,490 6.5%2013 $410,516 $29,376 7.7%2012 $381,140 $7,037 1.9%2011 $374,103 $52,020 16.2%2010 $322,083 $14,663 4.8%2009 $307,420 ($14,041) -4.4%2008 $321,461 $14,537 4.7%2007 $306,924 $16,048 5.5%2006 $290,876 $40,106 16.0%2005 $250,770 $29,369 13.3%2004   $221,401 $9,503 4.0%

Page 22

2015 Church Budget Recommendation

GOI1 · Member Giving 436,776.00 GOI2 · Reimbursed Expenses 2,646.00 GOI3 · Special Services Income 4,248.00 GOI4 · Loose Plate Giving 8,208.00 GOI5 · Interest Income 3,528.00 GOI6 · Preschool Rent Income 11,115.00 GOI7 · Other Giving/Income 3,624.00 RFI1 · Youth group budget income 8,505.00 (Confirmation will use donated funding for 2015 expenses)

Total Income 478,650.00 AE · Administrative Expenses 14,669.00 BG · Building and Grounds 140,876.00 CE · Christian Education 18,316.00 FE · Fellowship 5,800.00 ME · Missions 20,428.00 MME · Music Ministry 2,600.00 RFE · Reserve Fund expenses 0.00 SE · Payroll/Staffing Expenses 326,457.28

Total Expense 529,146.28 TOTAL DEFICIT (50,496.28)

Page 23

2015 Church Budget Recommendation

EXPENSES 2015 2014

Budget Actual Difference

Administrative $ 14,669 $ 16,241 $-1,572

Building & Grounds$140,876 $139,936 $ 940

Admin. difference due to budget reductions in postage and office supplies

Page 24

2015 Church Budget Recommendation

EXPENSES 2015 2014Budget Actual Difference

Christian Education$18,316 $15,492 $2,824 less income 8,505 2,900Net Budget Amount $ 9,811 12,592 -2,791

Participant fees added to church income to cover some of the youth budgeted amount; active fundraising in place to assist in absorbing costs; and Confirmation group will fund 2015 with directed donations received in previous years to assist with church deficit.

Children’s Ministry & Adult Education budgets similar to 2014.

Page 25

2015 Church Budget Recommendation

EXPENSES 2015 2014Budget Actual

Difference

Fellowship $ 5,800 $ 6,894 $1,094 (reduction in small group & connecting ministry budget items)

Missions $20,428 $18,739 $1,689 (Advertising and promotions now in budget)

Music Ministry $ 2,600 $ 2,069 $ 531

Page 26

2015 Church Budget Recommendation

EXPENSES 2015 2014 Budget Actual Difference

Staffing $ 326,457 $296,022 $ 30,435

Budgeted for full staff.

2.0% salary increase for Office Mgr, Organist, & Facility Mgr. Increase in Connections Director contract Addition of Choir Director Salary

Page 27

2015 Church Budget Recommendation

SUMMARY

Proposed 2015 Budget shows a deficit of $50,496; primarily due to new building expenses (mortgage, utilities) and operating with a full staff.

2015 continues to be a “transition year” as the size of the congregation continues to grow.

Reserve funds can be used to support 2015 deficit if needed $ 353,089 (Building Fund & General Operating Fund).

Other expenses continue to be stable and managed carefully.

Board fully supports and recommends Budget.

Page 28

2014/2015 Pre-School & Kindergarten Budget

BudgetIncome

PSI1 · Preschool Registration Fees 5,630.00 PSI2 · Tuition 99,133.00 PSI3 · Preschool Supplies Fee 1,910.00 PSI4 · Activites & other misc. income 3,042.17 PSI5 · Fundraising 500.00

Total Income 110,215.17

ExpensePSE1 · Operating Expenses 16,605.00 PSE2 · Salaries 81,917.87 PSE3 · Benefits 15,473.68

Total Expense 113,996.55

2014/2015 anticipated deficit (3,781.38)

Page 29

2014/2015 Pre-School & Kindergarten Budget

SUMMARY

The preschool ended 2013/2014 with an income of $1,310, which has been rolled into the deficit of 2104/2015.

The projected budget shortfall of $3,781.38 is expected to be made up with reduced staffing, increased enrollment, and fundraising efforts.

LONG TERM FINANCIAL PLANCHARLENE MOELLER, BOARD FINANCIAL DIRECTOR

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

-$70,000-$60,000-$50,000-$40,000-$30,000-$20,000-$10,000

$0$10,000$20,000$30,000$40,000$50,000

Royal Redeemer Net Income Pro-jection

2012 Est2014 EstActual

Net

Inco

me (

$)

QUESTIONS/DISCUSSION

• Seven Board members

• From a 3-3-1 Board rotation to a 3-2-2 rotation.

• Roger Wright would serve 3 years total.

BOARD CANDIDATES

Greg Card

Kim McMillan

Tim Kelker

QUESTIONS/DISCUSSION

• Seven Board members

• From a 3-3-1 Board rotation to a 3-2-2 rotation.

• Roger Wright would serve 3 years total.

CLOSING PRAYER

Thanks for your participation!

Remember to cast your ballot on the way out!