1. Financial Considerations of Potential New Conference

2. Financial Perspectives
MEMPHIS
TENNESSEE
2018 Budget $6,058,671 $8,870, Membership 78, , # of Churches Average Size # of Districts Appointed Clergy Budget, appointed clergy & membership 40% 60%

3. Joint Conversations CFA Executive Committees Memphis and Tennessee Annual Conferences
John Pearce, President
Terry Hundley, Vice President
Paul Purdue, Secretary
Jim Allen, Treasurer
Memphis: Bill Milliken, President David Hayes, Vice President Ed White, Secretary Larry Davis, Treasurer
Understand relevant issues/opportunities and find solutions.
Report back to conferences with accuracy and transparency.
Ensure a potential unified/combined conference will operate financially successful for many years.

4. Joint CFA Committee Headline
While there is financial due diligence work that needs to be done, we do believe that there are no financial issues would prevent the potential unification/combination.

5. Topic #1: Memphis Conference must fund their post retirement clergy health plan
✔DONE as of September 2017 History: As of Jan. 2017, $29 million on plan liability. Plan terminated July Now only clergy over 60 have benefits. Liability reduced to $10.6 million. Then, used Board of Pensions & Health Benefits reserves to fund the liability.

6. Topic #2: Need to agree on a consistent method to pay for Clergy Health and Pension Costs
MEMPHIS
TENNESSEE
Direct Bills
Clergy Health and Pension Costs
Direct billing is a recent change.
Apportions
Clergy Health and Pension Costs
CFA agreed to report to conference with recommendations.
Tithing versus apportionment model. What are both models and the benefits of both models? What are other good models in addition to these from other conferences? What are the advantages and disadvantages of models? 
With healthcare, Memphis uses direct bill. TN has a different model. What are both models and the benefits of each? Any other best practices from other conferences? What are the advantages and disadvantages of models? 

7. “Apportions” budget based on local church expenditures.
Topic #3: Need to agree on a methodology used to pay for the Conference Budget.
TENNESSEE
MEMPHIS
“Apportions” budget based on local church expenditures.
Local churches give a “10% tithe” of local church revenue.

8. Examples of other topics to discuss 2018-2019:
Clergy Health Plan Benefits (Family coverage, deductible, co-pay, part time etc.)
Clergy Pension plans: Same plans, all over funded, excess reserves
Ongoing use of Conference reserves
Consolidation of Conference offices and personnel
Equalization of District budgets and DS & Conference staff pay
Conference camp and retreat assets and deferred maintenance
Best practices learned from other conferences