Financial Updates

We Have a New Revised and Balanced Budget!

In January, the Leadership Team reviewed our financial state and chose to move to a balanced budget. This was due to the ongoing generosity of Creeksiders, which included our congregation heeding the call for an end-of-year increase of $50,000 in giving.  We are deeply grateful for everyone’s generosity!

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Our new Revised Budget projects a $60,660 increase in income, based mainly on the generosity of the congregation through year-end giving, an assumption of continued regularly giving, and increased contributions from Iglesia Creekside for facility usage. This Revised Budget also signifies that we are achieving our three-year goal of increased giving that has supported our staffing restructure and hiring of Pastors Tim & Julie.  We are indeed moving from a state of sustaining to further flourishing! Praise God!

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With that said, we do want to underscore that the need for ongoing and increased giving remains.  This updated budget represents only partial restoration to our ministry line items.  And we have much more ministry that we are dreaming and praying about (especially on the outreach front) that God is leading us into over the coming year.  So, our invitation and encouragement here is to a) please continue to give regularly as the Lord has led you thus far; and b) if you haven’t done so recently, please pray about whether that regular giving can be increased.

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Income Forecast
Below you can see a comparison of our income projection for the new revised budget compared to the old budget.

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FY’23-24 Income
Old vs. Revised
Sept 1 – Dec 31 (4mo)
                                             Old Budget    New Revised Budget      Difference
Income                                   $432,000           $492,660                         $60,660

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We have allocated the additional income as follows:

Item                                                  Amount
Deficit Elimination                           $25,220
Program Increases                           $9,410
Pastoral Expense including 
   retroactive COLA Adjustments    $13,441
Contingency Buffer                          $11,588
Net Ordinary Income                       $1,000
Total                                                  $60,660

 

Program Increases
Below is a list of the program increases we’re making. A lot of the increases are simply restorations of the cuts we had to make last year:

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Program                                                              Increase           Comments
Missions: Evangelical Covenant                           $1,580           Automatic percentage
Missions: Pacific Northwest Conference             $1,580           Automatic percentage
Connection: Social Events/Field Trip                   $1,300    
Local Outreach: Events                                         $1,100    
Ministry Support: Postage & Mailings                 $1,000    
Growth: Adult Education                                         $800    
Local Outreach: Community Outreach                  $600    
Worship: Sound/Lighting-Repairs/Maintenance   $500    
Connection: Welcome Team                                   $400    
Connection: Newcomer Events                              $300    
Growth: Women's Ministry                                      $200    
Growth: Baptism                                                        $50    

 

The overall increase in budgeted spending will be only 7% (see below)

 

FY’23-24 Expenses
Old vs Revised
Sept 1 – Dec 31 (4mo)
                                 Old Budget    New Revised Budget         $Diff              %Diff
 

Expenses                 $458,220          $492,660                             $34,440         7.0%

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Because the increase is under 10%, this new revised budget doesn’t require congregational approval as outlined and directed from our Bylaws.

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Fiscal Conservatism
We intend to be conservative with the revised budget in three ways. 

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First off, we are creating an explicit Contingency Buffer. Church income is seasonal, and, according to our historical habits, we’ll slowly be be receiving less income in the latter eight (8) months of the year. We hope not to eat up this Contingency Buffer, but it’s there if we need it to finish with a balanced budget. At the end of the fiscal year, any monies left in the buffer will show up as income and surplus funds on the balance sheet.

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Second, we are assuming that our monthly Giving income will be similar to last year’s. You can see below that through January, we’re doing pretty well compared to last fiscal year:

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FY’23-24 P & L vs Prior Year
Sept 1 – Jan 31 (5mo)            
                                              Actual          Prior Year Actual        $Diff
Income                              $241,500         $218,281                     $23,219
Expenses                           $181,981         $195,227                   -$14,246

Net Ordinary Income    $60,519.58         $23,054                      $37,466

 

Third, we made COLA increases for staff. We were relatively restrained in making these increases (which were retroactive to September 1st) because we are mindful that in May we’ll be doing a new budget for FY’24-25. We will then be doing our annual salary/wage review (which could lead to further increase considerations), right on the heels of the ones we’ve just granted. So, we need to be wise in setting up next fiscal year’s budget and next fiscal year’s compensation in the current budget.  We believe we’ve struck a good balance here.

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P.S. The Mortgage
Oh, and by the way, our mortgage balance is now down under $600,000. Last payment was around $5,263 with $3,334.83 to principal. As of last October 1st, we have 12 years left on the original 20-year $870,000 mortgage. Interest rate is 3.875%, adjustable every 3 years, and resetting next on October 1, 2024.