Episcopal Diocese of San Diego 2015 Budget Process Prepared by the Budget Committee December 6,2015 7/15/2019

Your Budget Committee Comes from Across The Diocese Mike Collier Holy Cross, Carlsbad EDSD Standing Committee Peter Mandery Sr. Warden, St. Thomas, Temecula Kathy McClelland Treasurer, St Steven’s, Menifee Erin-Sacco-Pineda Director of Finance, St. Paul’s Cathedral Tim Agnew (ex officio) St. Andrew’s, Encinitas Chair, EDSD Finance Committee   Julie Young Diocesan Treasurer Canon for Finance and Admin Rev. Bill Zettinger St. Bartholomew’s, Poway EDSD Budget Committee Chair Rev. Lane Hensley St. Margaret’s, Palm Desert Rector Budget Committee 7/15/2019

What Assumptions Did We Make? The Operating Budget must be balanced and support mission of the church Committee on Congregational Operating Support was formed around Standing Committee members, past members of Vital Congregations Committee and Canon to the Ordinary Budget Committee evaluated Ministry Requests Congregational Property Improvement Requests evaluated by Property Committee The Budget must include a contingency reserve Must comply with Convention resolution of an increase of 10% year for The Episcopal Church Budget reflects first full year of operations of the Episcopal Church Center Outside the operating budget is a line item for new initiatives/R&D to be funded through unrestricted reserves Budget Committee 7/15/2019

Summary Budget Process Start Start Up Tasks Analysis of Current Budget & Available 2014 Resources ID Activities That Should Be Funded & Our Challenges Request Inputs Ministries/Outreach Block Grants Mission Share Pledges A Variances Projections of I/E Establish Ranges/Risks Episcopate, Church Beyond our Diocese, Outreach and Ministry Missions & Aided Parishes Outreach Activities Form Committee Charter Approval by EC Define Process/Schedule Mission/Aided Parishes Grant Requests Outreach and Ministry Grant requests Budget Adjustments Analysis of Requests A Notify Recipients Finance Committee, EC Final (Jan) Budget with Baseline Assumptions To EC Convention Approval End Budget Committee 7/15/2019

The Challenge Budget Committee 7/15/2019

Baseline Income Assumptions Mission share pledge are actual pledges received (average 10.4%) Donations from the Bishop’s Appeal 9% greater than 2014 Actuals but 18% less than 2014 budget 5% payout long term; 2.5% for that invested in medium term funds Some funding from Temp Restricted assets (2.1%) Program and Ministry income includes donations and fees for specific programs and ministries, including Convention, and Clergy Conference Operating reserve used for general convention expenses Budget Committee 7/15/2019

Operating Budget Income Distribution Budget Committee 7/15/2019

Expense Assumptions Episcopate expenses ( Non Personnel) reduced Bishops Office personnel costs increase by 3% for insurance changes and targeted raises Mission/Parish Operating Support Grant Requests reduced Mission Area 4 to receive operating support grant allocated by congregations as needed Funds held in “Mission Contingency” will be released upon finance committee review of requests ) Church Property Support increase from 2014; includes Holy Cross lease support Outreach now includes Fearless Love Grants which are unchanged from 2014 No specific funding for Executive Council Committees Programs and Ministries reviewed by Budget Committee and were reduced Clergy Support maintained at a small level Property Operating Expenses reviewed by finance committee Apportionment to The Episcopal Church and Province - 10% increase (Now at$312,000). Final goal is 19% or suggested target giving . We are at 13%/2014 Episcopal Church Center (ECC) funded for full first year of operation Safeguarding Gods people will not be funded – Now offered online at no cost Mission Plan New Initiatives ( $100,000) from reserves and is not considered part of operating budget Budget Committee 7/15/2019

Operating Budget Expense Distribution Budget Committee 7/15/2019

Summary 2015 Budget Budget Committee 7/15/2019