1. Welcome

2. Apportionments John Tate, Conference Treasurer

3. Definitions Apportionment means distribution or allotment in proper shares. ~Wikkipedia Methodist Definition 1.A tax 2.The first thing cut from the local church budget 3.Money withheld to show displeasure with the Bishop, D.S., or any other entity within the Holston Conference.

4. Ministry Health Insurance Pensions Apportionments

5. Fair Share Calculations Inputs –Annual Conference Budget –Table II Information District Funds Church Staff Compensation Housing Allowance & Expenses Church Programming Expense –10% Cap on increase and decrease

6. Apportionment Inputs A Conference Budget$15,736,366 B Total Church Spending (Table II-2006)$70,616,005 C Unadjusted Decimal22.28% D Adjusted Decimal22.66% E Local Church Spending (Table II-2006)?? Preliminary

7. A/B=C C Adjusted for cap=D D*E=Church Apportionment A=Conference Budget B=Total Church Spending C=Unadjusted Decimal D=Adjusted Decimal E=Local Church Spending (Lines 56, 64-72)

8. 2008 Apportionments Local Church Spending 4.51% Initial estimates: –584 churches with reductions –317 churches with increases

9. Financials & Budget Sandra Davis, CCFA President

10. 200620052004200320025 Year Avg Abingdon 90.45%91.66%88.88%90.33%93.24%90.91% Big Stone Gap 75.58%76.05%84.83%81.37%81.17%79.80% Chattanooga 84.78%88.83%85.09%82.53%85.60%85.37% Cleveland 86.84%88.73%89.22%89.35%88.03%88.43% Johnson City 76.11%81.22%87.27%90.14%89.18%84.78% Kingsport 94.42%97.66%96.10%92.65%90.47%94.26% Knoxville 84.64%87.37%90.91%87.58%75.85%85.27% Maryville 97.28%95.94%95.11%96.06%92.06%95.29% Morristown 90.96%93.79%92.96%98.58%96.58%94.58% Oak Ridge 91.09%94.81%96.43%93.95%95.76%94.41% Tazewell 90.75%88.99%90.42%88.40%90.41%89.79% Wytheville 93.97%92.17%95.94%94.70%94.18%94.19% Conference Totals 88.03%90.31%91.03%90.24%88.56%89.63%

12. 2006 Results 88.03% Lowest Collection Rate –$35,000 more collected in 2006 vs. 2005 –681 churches paid 100% –27 churches paid $0 –$1.8 million shortfall Pension Funding Health Insurance Funding Higher Education Funding Ministries

13. 2007 Allocation of Costs Review of Chart –Over 50% of costs for apportionments are returned to the local church in support of local pastor Pensions Health Insurance Pastoral Counseling Board of Ordained Ministry Church Extension Grants

14. Holston Conference 2008 Budget $15,736,366

15. Budget 2008 Expectation of 100% Collections Eliminated shortfall planning –Collections are 90%, ministries will suffer Reduced apportioned amount by $100,000 over 2007 –Eliminating shortfall $400,000 budget in 2007 –0% Health Insurance premium increase

16. 2008 Budget Highlights Personnel Costs –No new positions –$60,000 increase in personnel costs Operating Costs –$140,000 Increase in programs over 2007 Total Spending –1.96% increase in overall spending $302,193 –Significant increases in support of local church and ministries

17. 2008 Notable Increases Personnel Costs$58,179 Pensions$130,800 Equitable Compensation$10,300 General Church Apportionments$158,568 Insurance (Property & Liability)$22,500 Total$380,347

18. Pensions & Health Insurance Charlie Harr, Chairman

19. Health Insurance Program is not attractive to Healthy Individuals –$15,360 for family coverage –$5,688 for individual coverage Only 80% of eligible pastors participate in health insurance program

20. Reducing Costs to Pastors Collecting 100% of Apportionments Retiree Health Coverage Increasing participation among pastors Leveraging reserve funds

22. Retiree Health Insurance Proposal Maintaining on-going financial viability Program Highlights –BCBS Supplement –Medicare Part D Prescription Program –No changes to dental coverage Obstacles –Fear of change and misinformation –Communication

23. Future Cost Saving Options Pensions funding and liability Raising out of pocket maximums Redistributing the cost sharing of health insurance Mandatory health insurance (100% participation) Direct Billing

24. The End