Budget Hearings Budget for 2016 October 10/11, 2015

Key Points 1. Budget approval process will change in looks a lot like Increased reliance on reserve funds 4. Important choices ahead 5. Living the vision

1. Budget Approval Process Approval by Annual Meeting is a tradition Not a legal requirement Not required by Constitution and Bylaws Board of Directors will approve 2017 and future budgets Commitment to transparency BUT Board will still ask AM to approve OCWM Basic Support Retention Rate Per Capita Contribution Rate Request

looks a lot like 2015 No major changes Retention rate 50% since 2013 Per capita contribution request $8 since 2011 No staffing additions or reductions Allocated Unrestricted Revenue down 1.1% Unrestricted Expenses up 2.0%

Story Time Balancing current needs and future needs

3. Increased Reliance on Reserve Funds MSC Unrestricted/General Fund2015 PS2016 Budget Allocated Revenue (Net of SLCC Support) $2,167,311$2,144,433 Expense2,217,4982,265,433 Operating Surplus (Deficit)(50,187)(121,000) Transfer to Reserve Funds(25,000) Transfer from Reserve Funds75,187146,000 Budget Surplus (Deficit)$0

4. Important Choices Ahead If current revenue trends continue: Option: Increase retention rate Option: Increase per capita contribution request Option: Reduce staff Option: Spend unrestricted funds functioning as endowments

An Even Bigger Choice “How will we balance the budget?” This is the wrong question! What is the right question? “How will we live our vision?”

5. Living Our Vision What ministries are having the most impact? What ministries do we need to do more of? What do we need to relinquish to free up resources for other purposes? What is non-negotiable? What new things is God calling us to do?

Living the Vision Strengthening churches Empowering faith leaders to have creative and impactful ministries Leadership Development Programs Identify, affirm, nurture, network, and build the capacity of lay and clergy leaders

Living the Vision Strengthening churches Helping congregations realize their missional identity and become justice-seeking, peacemaking communities of compassion Congregational Vitality Programs Highlight the impact within communities Affirm and assist capacity building Nurturing covenantal practices