2018 Apportionment, Draw & 1st DRAFT Budget MISSION STATEMENT: Grow and develop congregations spiritually, numerically and in missional leadership.

Diocesan Council – Budget Committee ROLE: Work with Council and the Bishop’s staff to develop an operating budget that aligns resources with our mission statement. Elected Council Members: Rev. Dan Burner, St. Mark’s, Penn Yan Rev. Stephen Meister, St. Mark’s, Newark Mr. Scott Seabridge, Chair, Church of the Incarnation, Penfield Ms. Gwen Van Laeken, St. Peter’s, Geneva Diocesan Treasurer: Terry Butwid CFO: Todd Rubiano Diocesan Accountant: Kristin Woodward

Diocesan Council Budget Process (EXHIBIT #1) JAN - Review preliminary 2016 budget & draw results. Meet with Trustees to begin review of draw/budget impacts (01/26/17). FEB - Review ‘16 results, ‘17 changes, & 3-YR baseline budget projections (2018 – 2020). FEB thru SEP - Committees & staff develop proposed budgets (CDPC, MPC, Budget & Others). MAR – Trustees approve 2016 draw (3/4/17). Consider & analyze spending priorities. Begin reviewing Apportionment. APR - Review Q1 ‘17 performance. Finalize 2018 apportionment vs. spending priorities/options. MAY – Joint Budget meeting with Trustees (05/09/17). Approve 1st DRAFT 2018 budget, apportionment & communications plan. Publish 1st DRAFT budget (05/24/17).

Diocesan Council Budget Process (EXHIBIT #1) JUN – Gather feedback on 1st DRAFT at District Meetings: SE District: Monday, 6/5 @ Church of the Redeemer, Addison NE District: Tuesday, 6/6 @ Zion Church, Palmyra Rochester/Monroe: Tuesday 6/6 @ Good Shepherd, Webster SW District: Thursday, 6/15 @ St. Michael’s, Geneseo JUL & AUG – Distribute 2nd DRAFT if required SEP – Review feedback, integrate changes & approve PROPOSED 2018 Budget (09/19/17) OCT - Review Proposed 2018 Budget at District Meetings NOV - Review & approve budget at Convention (10/28/17)

2018 Apportionment (EXHIBIT #2) PARISH INCOME RANGES & RATES: Over 80% of our churches range between 9-13% Median Rate is 11%. A 5% “Cap & Floor” limits the amount of actual increase OR decrease for any parish to no more than +/- 5%, year over year.

2018-2022 Budget & Draw Projections (EXHIBIT #3) Key Assumptions: Apportionment grows @ 1%, loan balance declines @ 5% w/ yield @ 2.75% Net Draw decreased to $950,000 by 2020 & investment returns average 5.0% Net Financial Assets remain “flat”, lower draw (4%) is more prudent

2018-2022 Budget & Draw Projections (EXHIBIT #3) Key Assumptions: If investment returns average 7% and . . . All other assumptions stay the same, then . . . Net Financial Assets begin to grow at ~ 2% annually

Diocesan Budget Expenditures 2006-2015 Actual, 2016-2017 est Diocesan Budget Expenditures 2006-2015 Actual, 2016-2017 est., 2018-2020 Projected (EXHIBIT #4)

1st DRAFT 2018 Operating Budget (EXHIBIT #5) Increases for Asking, General Convention & Staff off-set by reductions in Grants, Office and updated estimate for the College for Congregational Development.

Operating Expense Detail Slides

1st DRAFT 2018 Operating Expense (EXHIBIT #6) All Congregational Development & Mission Grant requests are under review and no specific awards have yet been determined.

1st DRAFT 2018 Operating Expense (EXHIBIT #6)

1st DRAFT 2018 Operating Expense (EXHIBIT #7) D&FMS increased 5% towards full 15% commitment by 2019. Health benefits continue with $900 HRA. Updated estimate for College for Cong. Dev.

1st DRAFT 2018 Operating Expense (EXHIBIT #8) General Convention & Province Synod every three years. Estimate 3% increase in salary & benefits, Bishop’s sabbatical (every 5 years), impact of car allowance and higher Canon travel expense. Lower Office Expense from the move to Henrietta.

1st DRAFT 2018 Staffing (EXHIBIT #9) Diocesan Staff Roles There are currently eight stipendiary leadership roles: Five District Deans and three Coordinators (Ecumenical & Interfaith, Leadership Development and College for Congregational Development).

1st DRAFT 2018 Staffing (EXHIBIT #10) Diocesan Salary Ranges Salary ranges are established for all Diocesan positions based on current market compensation data (clergy data from the Church Pension Group includes SECA allowance).

1st DRAFT 2018 Staffing (EXHIBIT #11) Diocesan Staff: Total Compensation Detail Total Compensation includes: Salary, Housing, *SECA, FICA, pension contributions, car allowance (bishop), life, disability & health insurance. Reimbursed expenses include: Travel, continuing education, sabbatical, etc.