1. Long-Term Program and Budget Planning Presentation to Session October 27, 2010 1

2. Agenda Terminology and Accounts Functional Allocation of Expenditures Committee Expenditures and Plans –Historical and projected –Committee proposals for long-term expenditures Sources of Funds A&F Committee Proposal Overall Objective: Discussion and preparations for future Session decisions concerning the Church’s long-term programs and financial objectives 2

3. Terminology and Accounts Church Functional Areas, Budgets and Plans –Mission –Worship –Fellowship –Education –Overhead Sources of Funds –Pledges and contributions –Designated/directed gifts –Westminster Foundation 3

4. Functional Area of “Overhead” We believe it is useful in gauging the Church’s various financial commitments to look at a functional allocation of expenditures. To avoid arguments about how to allocate some general expenditures, we have created an “overhead” category What we have included in “overhead”: –Utilities –Insurance –Copiers, postage, office supplies –Building repairs –Cleaning supplies, maintenance agreements, etc. –Administrative and Building personnel costs 4

5. Functional Data and Assumptions Historical data for 2006-2009 2010 Budget used Projected designated giving for 2010 and later based on 4-year average Projected increases of 3%, except Personnel Personnel costs projected by Personnel committee Personnel allocated for Function based on Staff input: –Overhead 39% –Mission 14% –Worship 24% –Fellowship 11% –Education 12% 5

6. Expenditures by Function 6 All New Requests shown in yellow Functional Areas are shown before New Requests

7. Expenditures by Function 7 New Requests included in Functional Area

8. Committee Data and Assumptions Historical data for 2006-2009 2010 Budget used Projected designated giving for 2010 and later based on 4-year average Projected increases of 3%, except Personnel Personnel costs allocated to Personnel committee, not individual committees 8

9. National/International Missions Requests: New National Mission Program Develop and Expand Weekend Mission Trips Increase Budgeted Moi’s Bridge and Presbytery Unified Giving 9

10. Local Missions Requests: Senior Services Resource Center Carpenter’s Shelter Education Position 10

11. Worship Requests: Increase Budget Support for Current Music Program Organ Maintenance Reserve 11 Gift of Concert Piano

12. Buildings & Grounds Requests: Maintenance and Capital Replacement Reserve 12

13. Personnel Assumptions: 2.5% Annual Salary increase Requests: 30 hour position added in 2011 20 hour position added in 2012 13

14. One-time Requests Moi’s Bridge Capital Improvements Landscaping Additional Church Improvements –Signage –Organ repairs –Sanctuary acoustics/sound systems 14

15. Sources of Funds Pledges and Contributions Cell phone contracts –Accumulated to date –Continuing income Undesignated bequests received in recent months 15

16. Proposed Approach Establish reserve accounts for capital and building expenditures to ensure the long-term soundness of the physical facility and potentially avoid another building capital campaign for predictable maintenance expenses. Only use new cell phone money to fund reserve accounts or one-time capital expenditures (not operating or annual expenses). Use accumulated funds to pay for one-time church and mission capital construction projects. Arrive at a coherent message for the congregation in connection with an appeal for increased giving. 16