Finance & Budget Committee 2015/16FY Budget Presentation Board Meeting March 11, 2015.

Finance & Budget Committee2015/16FY Budget PresentationBoard Meeting

March 11, 2015

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Overview

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Budget Fair Wrap-up

2014/15FY Operating Performance

2015/16FY Operating Budget

2015/16FY Capital Budget

2015/16 Budget Considerations

APPENDICES – Reference Materials

Board Mtg


Budget Fair Wrap-up

• Successful once again this year• Took somewhat of a different path, but continued to meet

our goals– Gained a better understanding of the numbers– Allowed for open discussions among those responsible for the

budgets

• Format worked well• Thanks for preparation and participation• Plan to continue next year• Any improvements should be directed to Andy & Josh

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2014/15FYOperating Performance


2014/15 Projected Operating Performance

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($000) Projected 2013/14 Budget Actual Variance Actual

• Revenue 1,424 1,398 (26) 1,449• Expenses (1,586) (1,533) 53 (1,554)

• Deficit (162) (135) 27 (105)

• Use of Board/Endow/ Reserve Funds 7 0 (7) 0

• Fundraising 155 160 5 170 • Operating Net 0 25 25 65

• Membership 385 377 (8) 367 Restated (w/o Alumni)

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2014/15 Projected Operating Performance

• Projected performance based on seven months of actuals and five months projected shows a surplus for the fiscal year– Dues revenue down due to change in mix of membership– Departments are managing expenses effectively against budget– Religious School net on target with budget– BEECC income down due to decreased enrollment, but net is up– Fundraising ($160K net) for Annual Appeal based on pledges as of

2/24/2015

• Anticipate some financial upside– Reduction in certain projected expenses (usual trend from today to June)

• Vigilance continues to be needed to manage expenditures• See Appendix A in Board Mtg Packet for Jan. detailed financials

Board Mtg


2015/16FY Operating Budget


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Dues Category Comparisons

15-16 DUES CATEGORIES AMOUNT

Age 65& Above - 2 Adults 1,810Age 65& Above - 1 Adults 905Age 36 to 64 - 2 Adults 2,580Age 36 to 64 - 2 Adults (Couple Phase-In) 2,440Age 36 to 64 - 1 Adult 1,290Age 35 & Under - 2 Adults 200Age 35 & Under - 1 Adult 100Associate 420

14-15 DUES CATEGORIES AMOUNTSENIOR COUPLE 1,810SENIOR INDIVIDUAL 905FAMILY 2,580COUPLE 2,440SINGLE PARENT 1,935INDIVIDUAL 1,290YOUNG FAMILY 1,810YOUNG COUPLE 895YOUNG INDIVIDUAL 450ASSOCIATE 420

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2015/16 Operating Budget Considerations

• No dues increase to help facilitate transition to new dues structure

• No religious school tuition increase• 2.5% salary increase• Deficit of $25K to help fund transition to new dues

structure

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3-Year Operating Budget Summary

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($000) Actual Projected Actual Budget 13/14FY 14/15FY 15/16FY

• Revenue 1,449 1,398 1,436• Expenses (1,554) (1,533) (1,627)

• Deficit (105) (135) (191)

• Use of Board/Endow/ Reserve Funds 0 0 8

• Fundraising 170 160 158 • Operating Net 65 25 (25)

• Membership 367 377 375 Restated (w/o Alumni)

Board Mtg


2015/16FY Operating BudgetAssumptions


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2015/16FY Operating BudgetAssumptions

• Operations– Projected membership count at 375; current count at

377; new dues categories with no increase for any group• some members will pay less because of dues restructure

– Expect interest income of $11K from CDs– Projected $25K deficit to help phase in new dues

structure

• Projected Fundraising at $158K for 2015/16

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2015/16FY Operating BudgetAssumptions (cont’d)

• Personnel– Projected salary increases of 2.5% (~$75K) for next

year– Includes funding for part-time Communications

Coordinator for entire year– Includes funding for position overlap of six months for

retiring Controller and new Accountant– Includes funding for new BEECC 5-day 2-year-old

class

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• Projected religious school count of 221 students, up from 211 this year; no tuition increase; net deficit of $13K, which is better than 14/15 projection

• Projected BEECC count of 57 students (22 mem/35 non-mem); tuition increase of 3%; revenues increasing by $30K, expenses increasing by $44K; net surplus of $39K

• Youth Projections:– Rates are same for last 5 years– Including Nitzanim fee of $20 in tuition; now

participating in 2nd Monday


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15151515

• Communications Committee budget includes $3.5K net for strategic marketing initiatives– To promote holiday services, religious school and preschool

programs– New look and printed materials– Targeted mailings/advertising– Significant potential to generate more members

• Adult Program Committee– Budget reflects $6K use of education endowment fund and

$1.2K of Adult Program Fund for scholar-/artist-in-residence• Food Service Committee budget reflects $1K use of

Kitchen Fund to offset expenses; funding for some expanded kiddushes on non-sponsored Shabbatot


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2015/16FY Capital Budget


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Explanation of Capital Funds

Capital Funds that are funded on an annual basis:

• Building Fund– Pays the mortgage and provides for new projects– Funded by members paying $7,500 over 15 years

• Capital Contingency [Reserve] Fund (CCF)– Covers major repairs and maintenance to the building– Funded by a $225 fee assessed annually to members

How do we know how much the building upkeep is going to cost? Facilities Reserve Study, which is done every five years

Board Mtg


2015/16 Capital Budget Considerations

• Capital funds will continue to decline through 2017– Some risk with a significant facility repair event

• e.g., $23K for new Social Hall HVAC unit• new compressor for dry sprinkler system

– Need to identify opportunities to provide funds to capital accounts• Dedicatory program• Other

– Need to take a look at CCF fees over the next 3 years

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2015/16FY Capital Budget SummaryBuilding Fund Commitments

14-15FY 15-16FY 15-16FY YE PROJECTIONS COMMITMENTS COMMITMENTS Carryover (Already Approved) (New) Social Hall/Flex space upgrades-New Partitions 50,000 Concrete pads/Corral/Shed-Trash & Storage Area 5,000 Library Furnishings Sanctuary Entry Doors 15,000 Front Office Workspace Renovation 38,000 TOTAL B/F COMMITMENTS: 93,000 15,000 Building Fund Balance 326,755 246,020 NOTES: 2014-2015FY Building Fund Commitments assumes $122K for mortgage principal payments 2015-2016FY Building Fund Commitments assumes $15K carried over from prior years’ commitments, no new proposed expenditures and $131K for mortgage principal payments 2014-2015FY: Building Fund projected income will be $71K 2015-2016FY: Building Fund projected income will be $65K 2015-2016FY: Proposed Expenditures do not assume revenue from dedicatory opportunities

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2015/16FY Capital Budget AssumptionsCapital Contingency Fund (CCF)

• Currently funding $76K annually through CCF– $225 CCF Fee/family x 350 families

• Latest Facilities Engineering Study– Need to fund nearly $500K in major building repairs/replacement

over next four years– Large projected deficit will necessitate future year increases or

major fundraising

• With no increase last year, recommend increase to $275 ($50 increase)

Board Mtg


2015/16FY Capital Budget SummaryProposed CCF Commitments

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14-15FY 15-16FY 15-16FY YE PROJECTIONS COMMITMENTS COMMITMENTS Carryover Proposed (Already Approved) (New) Replace flooring 18,000 Roof repair 42,300 Technology upgrades 2,500 7,500 Sprinkler system pipe repairs 5,000 7,500 Brick Repair & Tuckpointing 10,000 3,815 New Content Mgmt Software for website (replace obsolete software) 435 EIFS maintenance 8,600 Replenish gravel driveway Concrete walkway repairs 3,000 Kitchen equipment replacement 7,000 Security Replacements/Enhancements 30,000 Furniture replacement 6,000 10,000 RTU/Repair/Replace 23,000 5,000 Parking lot repairs 16,000 14,000 TOTAL PROPOSED CCF COMMITMENTS: 100,835 41,000 77,815 CAPITAL CONTINGENCY FUND BALANCE 194,662 169,097 NOTES: 2015-2016FY: COMMITMENTS ASSUMES $41,000 CARRIED OVER FROM PRIOR YEAR COMMITMENTS AND 77,815 NEW COMMITMENTS 2015-2016FY: PROJECTED FUND INCOME FROM CAPITAL CONTINGENCY FUND WILL BE $93,250 WHICH REFLECTS INCREASED FEE AT $275

Board Mtg


Questions & Feedback

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Appendices


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2015/16 Budgeting Calendar

DATE (2015) DELIVERABLE/ACTION

FEB 26 - MAR 8 Feedback from Exec Comm shared w/comm chairs and dept heads; budgets revised, as necessary, and changes compiled by Linda/Jan

MAR 11 BOARD MTG: Present budget highlights

Mid-late MAR Revisions from Board review compiled by Linda/Jan and issued to F&B Comm, comm chairs and dept heads

MAR 25 EXEC COMM MTG: Review final budget

APR 8 BOARD MTG: Approve budget

MAY 15 Budget mailed to congregation in advance of Annual Mtg

JUNE 7 ANNUAL CONGREGATION MTG: Present budget to Congregation for approval

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Membership and School Trends

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THIS YEAR($000) 08-09FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14 14-15FY 14-15FY

ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL CURRENT BUDGET PROJECTEDMEMBERSHIP Membership# Total Membership units: 441 409 408 395 388 367 385 377 # of Family Dues Categ. 285 259 248 245 237 219 226 216 # of Alumni Categ. 5 6 8 9 9 13 15 13

Membership Dues% 5% incr 3% incr 5% incr 3%incr 2%incr 2%incr 2%incr 2%incr Total Dues & Fees $: 751 705 731 742 727 719 721 707

RELIGIOUS SCHOOLRS Student# 297 276 245 234 228 217 210 211

RS Tuition % 4% incr 3% incr 0% incr 0% incr 0% incr 2%incr 2%incr 2%incr Total RS Tuition $: 225 216 192 201 191 193 187 186

BEECC Member Student # 53 38 37 28 19 21 23 24 Nonmember Student # 31 26 22 31 36 40 36 30 Total BEECC Students: 84 64 59 59 55 61 59 54

BEECC Tuition % 4% incr 3% incr 3% incr 5%M/3%NM 3% incr 3% incr 3% incr 3% incr Total BEECC Tuition $: 259 234 225 224 233 258 259 242

Observation:Decline in membership and student population

Board Mtg


Membership Trends

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08-09FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15FY Bud 14-15FY Proj

# Family Dues Units 285 259 248 245 237 219 226 216

# Other Dues Units 156 150 160 150 151 148 159 161

# Alumni Units 5 6 8 9 9 13 15 13

25

75

125

175

225

275

325

375

425

475

Dues

Uni

ts in

cludi

ng A

lum

ni

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BEECC Trends

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08-09FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15FY Bud 14-15FY Proj

# of member students 53 38 37 28 19 21 23 24

# of nonmember students 31 26 22 31 36 40 36 30

5

15

25

35

45

55

65

75

85

# of

Bee

cc st

uden

ts

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Appendix EDETAILED OPERATIONS BUDGET SUMMARYIncludes 15/16FY Projections

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15-16 14-15 14-15FY YEAR END 14-15FY YTD ACT 13-14FY

PROJECTIONS BUDGET PROJ. AT 1/31/15 AT 1/31/2015 ACTUALS

REVENUE Executive Operations (Sch. 1, page 2) 708,375 743,915 726,551 542,020 741,726Communications (Sch. 2, page 6) 6,000 9,000 5,000 1,025 4,448Membership (Sch. 3, page 7 ) 0 0 40 40 6,821Ritual Committee (Sch. 4, page 8) 27,575 27,500 26,401 24,910 27,504Religious School (Sch. 5, page 9) 231,580 210,790 210,840 135,966 235,679BEECC (Sch. 6, page 10) 322,584 303,645 291,440 200,258 298,883Youth (Sch 7A, page 11) 17,895 19,680 18,160 9,904 19,865Programming (Sch 7B, Page 12) 20,200 15,500 13,330 4,066 11,185Building (Sch. 8, page 13) 0 0 0 0 0Food Service (Sch. 9, page 14) 103,000 94,500 100,000 64,074 96,091Technology (Sch. 10, page 15) 0 0 0 0 0Sisterhood Contribution 5,000 5,000 5,000 0 5,000Men's Club Contribution 1,500 1,500 1,500 0 1,500TOTAL OPERATING REVENUE: 1,443,709$ 1,431,030$ 1,398,262$ 982,263$ 1,448,701$ EXPENDITURESExecutive Operations (Sch. 1, page 2) 622,469 602,872 584,276 347,064 575,565Communications (Sch. 2, page 6) 18,900 26,400 15,900 5,690 13,807Membership (Sch. 3, page 7 ) 1,550 1,550 1,404 304 10,622Ritual Committee (Sch. 4, page 8) 29,010 28,245 27,906 25,481 29,930Religious School (Sch. 5, page 9) 244,112 232,587 231,312 114,972 224,161BEECC (Sch. 6, page 10) 283,167 262,138 239,141 121,383 263,892Youth (Sch 7A, page 11) 51,568 56,387 49,685 23,326 49,917Programming (Sch 7B, Page 12) 21,200 17,000 22,077 12,266 17,713Building (Sch. 8, page 13) 220,485 227,905 228,592 125,117 229,628Food Service (Sch. 9, page 14) 103,532 105,423 105,189 59,273 110,641Technology (Sch. 10, page 15) 31,070 25,523 28,023 18,165 28,426TOTAL OPERATING EXPENSES: 1,627,063$ 1,586,030$ 1,533,505$ 853,041$ 1,554,302$

NET OPERATING INCOME (LOSS): (183,354)$ (155,000)$ (135,243)$ 129,222$ (105,601)$

NET FUNDRAISING (Sch. 11, page 16): 158,000$ 155,000$ 160,440$ 134,002$ 170,236$

Transfer from (to) Operations Reserve Fund (25,354)$ -$ 25,197$ 263,224$ 64,635$

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Appendix F 2015/16 Operating Budget Sensitivities

($000)15-16FY

ProjectionsOPPORTUNITIES:Operating Income- UPSIDE 4 Membership-net increase of 3 6 Religious School-increase of 3 3 BEECC-increase of 2 10 Reduced Expenditures 10

2015/16 OPERATING BUDGET (25)

RISKS: Membership-net decrease of 4 (10) Religious School-decrease of 5 (5) BEECC-decrease of 2 (10) Facility/maintenance cost increase (5) Special Financial Arrangement increase (5)

Operating Deficit-DOWNSIDE (60)

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Appendix G Building Fund Projections

PROJECTED BEGINNING FUND BALANCE: 163,417$ 246,020$ 326,755$ 470,140$ 470,140$ 544,490$

BUILDING FUND ACTIVITY:

SOURCE OF FUNDS: 17-18FY 16-17FY 15-16FY 14-15FY 14-15FY YEAR END 13-14FY

PROJECTIONS PROJECTIONS PROJECTIONS BUDGET PROJ. AT 1/31/15 ACTUALS

Building Fund Assessment Income 80,000 85,000 90,000 96,000 90,000 94,600 LESS: Writeoffs/Special Arrangements (15,000) (15,000) (15,000) (15,000) (13,000) (12,070) LESS: BF deferment for 20 new families (10,000) (10,000) (10,000) (10,000) (6,000) (7,072) Net Building Fund Assessment Income 55,000 60,000 65,000 71,000 71,000 75,458TRANSFER From Phase III Fund to close 0Building Fund Other Donation Income 161 709BEECC PA Contribution for Playground Sunshade 0 TOTAL SOURCE OF FUNDS: 55,000 60,000 65,000 71,000 71,161 76,167

USE OF FUNDS:

Principal Amortization 0 92,603 130,735 121,546 121,546 113,060Other Building Expenditures 0 50,000 15,000 95,000 93,000 37,457Transfer to CCF 100,000 0 0 0 TOTAL USE OF FUNDS: 100,000 142,603 145,735 216,546 214,546 150,516

NET BUILDING FUND FY BUDGET: (45,000) (82,603) (80,735) (145,546) (143,385) (74,350)

PROJECTED ENDING FUND BALANCE: 118,417$ 163,417$ 246,020$ 324,594$ 326,755$ 470,140$

NOTE: Phase III Fund closed & transferred to Building Fund per Board Resolution July, 2012

BUILDING FUND BUDGET REQUESTS:MISCELLANYConcrete pads/Corral/Shed-Trash & Storage Area 5,000 5,000 Lobby Dedicatory Displays 0 Subtotal Miscellany 5,000 5,000 0FUNCTIONALBathroom refurbishment-Main LobbyFront office workspace 75,000 38,000 31,646School Office Furnishings 50,000 0 Move to 16-17FY 0 0Library furnishings 0 5,811Playground Sunshade (1/2 of cost from BEECC PA)

Sanctuary Doors 15,000 15,000 0 Move to 15-16FY Subtotal Functional 50,000 15,000 90,000 38,000 37,457COSMETICSocial Hall/Flex space upgrades-New Partititons-PRIOR APPROVAL 50,000 0Unbudgeted refurbishments to RS office (as approved by board) Subtotal Cosmetic 50,000 0 TOTAL: 50,000 15,000 95,000 93,000 37,457

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Appendix H Capital Contingency Fund Projections

PROJECTED BEGINNING FUND BALANCE: 179,847$ 169,097$ 194,662$ 222,117$ 168,960$

SOURCE OF FUNDS: 17-18FY 16-17FY 15-16FY 14-15FY YEAR END 13-14FY

PROJECTIONS PROJECTIONS PROJECTIONS PROJ. AT 1/31/15 ACTUALS

$275 $275 $275 $225 $225

Capital Contingency Fund Assessment (350 mem) 96,250 96,250 96,250 76,880 76,996 LESS: Writeoffs/Special Arrangements (3,000) (3,000) (3,000) (3,500) (3,649)Net Capital Contingency Fund Assessment Income 93,250 93,250 93,250 73,380 73,348Transfer from Building Fund 100,000 0 0 TOTAL SOURCE OF FUNDS: 193,250 93,250 93,250 73,380 73,348

USE OF FUNDS:Architectural and Engineering Reserve Study 0Major Repairs (PER SPECIFICITY OF RESERVE STUDY) 241,500 82,500 118,815 100,835 20,191 TOTAL USE OF FUNDS: 241,500 82,500 118,815 100,835 20,191

NET CAPITAL CONTINGENCY FUND FY BUDGET: (48,250) 10,750 (25,565) (27,455) 53,156

PROJECTED ENDING FUND BALANCE: 131,597$ 179,847$ 169,097$ 194,662$ 222,117$

Budget Requests

Replace flooring in Library, front office & gift shop (PRIOR APPROVAL) 0

Replace flooring 37,000 18,000 0 Move to 15-16FY

Roof repairs (PRIOR APPROVAL 13-14FY) 29,000 0 42,300 6,400Lobby furnishings 0 4,140Sprinkler System Pipe Repairs 7,500 7,500 7,500 5,000 3,968Gravel for Driveway 0 4,500Kitchen Equipment Replacement 14,000 14,000 7,000 0

* CMS software/website (PRIOR APPROVAL) (Kitchen moved from 15-16FY) 3,815 435 Move $2815/15-16FYEIFS Maintenance (PRIOR APPROVAL) 8,600Repair Main Entrance Concrete Walkway (PRIOR APPROVAL) 3,000

Technology Upgrades 7,500 2,500 1,184 Copier Replacement 17,000 Move to 16-17FY PENDING

Security Replacement/Enhancements PendingSecurity Replacement/Enhancements 30,000

Furniture Replacements 10,000 10,000 10,000 6,000 Brick Repairs & Tuckpointing 10,000 Computer replacement (Workstations & Servers) 11,000 0 0RTU Repair/Replace 162,000 5,000 5,000 23,000Parking Lot 30,000 0 Move to 15-16FY Total Budget Requests: 241,500 82,500 118,815 100,835 20,191

* $3,250 for website Phase IIIncludes Calendar Integration & Chaverweb Integration

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Appendix I2015-2016 Dues & Fees

Board Mtg

DUES CATEGORY DUES B/FUND* CCF** TOTAL Age 65 & Above:

2 Adults $1,810 $500 $275 $2,585 1 Adult $905 $250 $275 $1,430

Age 36 to 64:

2 Adults $2,580 $500 $275 $3,355 [2 Adults (Current Couple Phase-In) $2,440 $500 $275 $3,215] 1 Adult $1,290 $330 $275 $1,895

Age 35 & Under:

2 Adults $200 $0 $0 $200 1 Adult $100 $0 $0 $100

Associate: $420 $0 $0 $ 420 FEE CATEGORY Alumni $ 90

* BUILDING FUND assessment continues at the above annual rates to a maximum of $5,000, for all members

joining prior to July 1, 1998; and to a maximum of $7,500, for all members joining after July 1, 1998. ** CAPITAL CONTINGENCY FUND is an annual assessment for the membership categories identified above. SCRIP: All members who purchase SCRIP in excess of $3,000.00 per year will receive a credit toward obligations in

amount equal to 5% of all purchases in excess of $3,000.00. BUILDING FUND DEFERRED FOR NEW MEMBERS’ FIRST YEAR


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Appendix J2015-2016 BEECC Tuition & Fees

BEECC TUITION AND FEES CLASS MEMBER RATE NONMEMBER RATE ALEF (Budding BEECCer’s) $ 495 $ 565 BET (2-Day/2yr old) $2,755 $3,635 BET (3-Day/2yr old) $3,680 $4,895 BET (5-Day/2yr old) $5,055 $6,635 GIMEL (3-Day/3 yr old) $3,680 $4,895 GIMEL (4-Day/3 yr old) $4,660 $6,140 DALET (5-Day/4 yr old) $5,460 $7,160 DALET Extended Day program $6,540 $8,580 Building Usage Fee N/A $ 200 Special Program Fees 2-Day Students $ 100 $ 100 3-Day Students $ 120 $ 120 4-Day Students $ 140 $ 140 5-Day Students $ 160 $ 160 Early Drop $25/day/child $25/day/child

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Appendix K2015-2016 BEECC Tuition & Fees (cont’d)BEECC TUITION AND FEES (cont)

CLASS MEMBER RATE NONMEMBER RATE Adventures Fall Session $ 182 $ 204

Winter Session $ 165 $ 195 Spring Session $ 165 $ 195

Camp Fees (Session 1, 2, 4, 5, 6, 7)

2-Day $ 80 $ 95 3-Day $ 110 $ 135 5-Day $ 175 $ 220 Camp Fees (Session 3 incl. July) 2-Day $ 80 $ 95 3-Day $ 80 $ 95 5-Day $ 140 $ 175

Board Mtg


Appendix L2015-2016 School/Youth Tuition & Fees

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RELIGIOUS SCHOOL TUITION & FEES CATEGORY TUITIONS & FEES

Primary Tuition (K-1) $710 (including 2nd Monday program)

Hebrew Tuition (2-7) $1,080 (including 2nd Monday program)

Chai School Tuition (8-10) $690

Bar/Bat Mitzvah Fee $950

Confirmation Fee (Grade 10) $200

YOUTH DUES CATEGORY TUITIONS & FEES

Nitzanim (K-1) Incl. in Tuition Bonim, Machar, Kadima (2-7) Incl. in Tuition Kadima (8) $55 USY (9-12) $60 USY/Kadima Nonmember $118

Board Mtg


Finance & Budget Committee 2015/16FY Budget Presentation Board Meeting March 11, 2015.

Documents

Transcript of Finance & Budget Committee 2015/16FY Budget Presentation Board Meeting March 11, 2015.