1. 2017 Proposed Budget 2018 Draft Budget

2. Mission Budget Committee
Bruce Cann (St Matthew St Joseph’s, Detroit)
The Rev. Lynda Carter (Grace, Southgate)
Steven Chisholm (St Clement’s, Inkster)
Claudia Hamlin (St Paul’s, Lansing)
Brian Johnson (All Saints, Brooklyn)
The Rev. Karen Lewis (St Paul’s, Lansing)
The Rev. Juan Perez (Sta Teresa y San Juan)
Robert Sherry, chair (St Thomas, Trenton)
Staff Support
Jo Ann Hardy, canon administrator (Cathedral Church of St Paul)
Mark Miliotto, diocesan treasurer (St John’s, Royal Oak)

3. Budget Process: Goals and Priorities
Present a balanced budget
Gather information from budget hearings and evaluate suggestions for inclusion in budget
Maintain transparency in process and reporting
COLA for staff
Redeploy savings from TEC Assessment rate cut
Reduce or eliminate reliance on reserves

4. 2017 Apportionment Pledges
100% Participation
Every congregation has made a 2017 pledge of support
Full Apportionment Pledges at 71%
53 of the 75 congregations have pledged at full apportionment (same rate as in 2016)
Up from 67% in 2015, 65% in 2014, and 63% in 2013
Shortfall from Full Apportionment Keeps Dropping
2017 pledges $142k (8.2%) short of full apportionment
2016 $150k (8.7%)
2015 $177k (10.3%)
2014 $209k (12.5%)

5. 53 Congregations Pledging Full Apportionment
Christ Church, Adrian
St Luke's, Allen Park
St Andrew's, Ann Arbor
St Clare's, Ann Arbor
Trinity, Belleville
St James, Birmingham
Christ Church Cranbrook, B Hills
Nativity, Bloomfield Twp
St Paul's, Brighton
St Michael & All Angels, Camb Jcn
St Barnabas, Chelsea
St John’s, Clinton
Christ Church, Dearborn
All Saints, Detroit
Christ Church, Detroit
Church of the Messiah, Detroit
Grace, Detroit
St John's, Detroit
St Peter’s, Detroit
St James, Dexter
All Saints, East Lansing
Resurrection, Ecorse
St Luke’s, Ferndale
St James, Grosse Ile
St Michael's, Grosse Pointe Woods
St Stephen’s, Hamburg
St Peter’s, Hillsdale
St John’s, Howell

6. Full Apportionment Pledges Cont’d
St Paul’s, Jackson
St Mary's-in-the-Hills, Lake Orion
St Michael's, Lansing
St Paul’s, Lansing
St Michael’s & All Angels, Linc Park
St Andrew’s, Livonia
St Patrick's, Madison Heights
St Aidan’s, Michigan Center
St George's, Milford
Grace, Mt Clemens
Holy Cross, Novi
Incarnation, Pittsfield
Christ Church, Pleasant Lake
St John’s, Plymouth
All Saints, Pontiac
St Paul’s, Romeo
St John's, Royal Oak
Trinity, St Clair Shores
Holy Faith, Saline
St David’s, Southfield
Grace, Southgate
Christ the King, Taylor
St Andrew’s, Waterford
Spirit of Grace, West Bloomfield
St Luke's, Ypsilanti

7. Recap of 2015 Financials Operating Revenues $2.25M (excl. reserves)
Grew by 4.6% ($100k) over 2014
Exceeded budget by $22k
Operating Expenses $2.24M (excl. use of reserves)
Over budget by $16k
Ended with Net Operating Surplus of $6k

8. 2017 Highlights Apportionment pledges up $17,000
The Episcopal Church Assessment
Rate drop from 18% to 16.5% in 2017 (15% in 2018)
Net $7k savings in our TEC Assessment
$29k savings from rate drop
$22k increased expense from volume (income) increase
Delay rollout of bookkeeper position ($7k sav)
1% cost of living adjustments for staff
6.5% increase in healthcare premiums
Higher cost for Diocesan Convention

9. Proposed 2017 Operating Revenues
2016
2017
Apportionment Pledges
$1,550,000
$1,567,000
Dividends & Interest
485,608
487,685
Contributions
225,500
223,500
Transfer from Reserves
7,055
12,000
Total Operating Revenues
$2,268,163
$2,290,185
Memo: Operating Revenues w/o Reserves
$2,261,108
$2,278,185
Apportionment pledges up 1.1%
Allowance of 2.0% for shortfall on pledges
Dividends & Contributions flat
Reserves needed to fund healthcare increase

10. Operating Revenues - 10 Year Trend

11. Proposed 2017 Operating Expenses
Salaries & Benefits
$1,153,651
Professional Fees
88,100
Occupancy
172,800
Office Expenses
61,170
Communications
37,400
Conf, Meetings, Events
107,800
Denominational Support
362,713
Travel & Related
76,100
Grants & Partnerships
209,751
Equipment
20,700
Total Op Expenses
$2,290,185
TEC Assess down $7k
Bookkeeper position dropped from bud ($7k)
1% COLA for staff ($9k)
6.5% in healthcare premiums ($13k)
+$13k for diocesan convention
+$3k for general convention
$5k other minor increases

12. Operating Expenses – 10 Year Trend

13. 2017 Operating Expenses by Program

14. 2018 Draft Budget
Apportionment pledges forecasted to grow 1.7% over 2017 / Dividends up 2%
Expect to eliminate reliance on reserves (0.5% of budget in 2017)
Will need to consider new healthcare cost sharing options with staff
Bookkeeper position back on table
TEC Assessment rate to go down to 15% from 16.5% ($31k savings)
Projecting 2% increase in most line items

15. 2017 Budget Resolutions Resolution #1 Resolution #2
RESOLVED, that the formula for calculating the apportionment for congregational support of the diocesan budget will be based on 10% of the most recent three year average of each congregation’s normal operating income as reported in the Parochial Report; this formula will be utilized for calculating budgets for the next three years (2017, 2018, 2019).
Resolution #2
RESOLVED, that the 2017 Operating Budget of the Diocese of Michigan be in the amount of $2,290,185 and be it further
RESOLVED, that the Diocesan Council shall have the authority to adjust the adopted budget in keeping with income assured from pledges received and other expected income.