Presented at the Parish forum on January 8, 2012

1. FUS Financial Update

2. Foundation and Other
Special Gifts Annual Annual
Capital Pledges
Pledges Revenue Restricted
Funds
CAPITAL OPERATING
FUND FUND
CAPITAL
OPERATING
EXPENSES MORTGAGE MORTGAGE EXPENSES
-Preservation
-Equipment 60% 40%
-Furnishings
FUS Finances - Overview

3. Foundation and Capital Budget and Debt Update
Capital Pledges Special Gifts
CAPITAL
FUND
CAPITAL
EXPENSES MORTGAGE
-Preservation
-Equipment
-Furnishings

4. Capital Pledges Foundation and
Special Gifts
Capital Fund - Revenue
CAPITAL
Capital Fund Balance
FUND $348,106 as of December 31
Capital Campaign status
Total pledged: $6.3 million
Total collected: $6.07 million
Expected in 2012: $45,000
Unpaid pledges (2007-2011): $251,000
Foundation (Stonehaulers):
$40,000/year, depending on market

5. CAPITAL
FUND
Ongoing Capital Expenses
$140,000 in FY 2011-12
-Hearthroom window refurbishing
CAPITAL (funded by the Friends)
EXPENSES -Isom House windows
-Preservation
-Equipment
-Isom House remodeling
-Furnishings -Roof Planning
-HVAC changes

6. MORTGAGE
Debt Update
•Construction loan (interest only) converts to term loan in 2012, first
payment March 2012
•Loan up for renewal in 2017
•Total debt entering term loan: $4,472,015
•Interest rate, fixed – 6.28%
• Total Annual payment FY 2011 – 2012 - $303,000
•Principal - $25,000
•Interest - $278,000 (transition from interest only construction
loan to Principal and Interest term loan)
•Total Annual payment FY 2012-13 - $357,000
•Principal - $76,000
•Interest - $281,000

7. CAPITAL OPERATING
FUND FUND
MORTGAGE Mortgage
60% 40%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%

8. CAPITAL OPERATING
FUND FUND
MORTGAGE
Mortgage
33%
67%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $240,000 67%

9. CAPITAL OPERATING
FUND FUND
MORTGAGE
97%
Mortgage
3%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $240,000 67%
2013-14 $350,000 97%

10. CAPITAL OPERATING
FUND FUND
MORTGAGE
100%
Operating Budget: Debt Repayment Plan
% of Total Debt
Fiscal Year Debt Repayment Repayment
2011-12 $140,000 40%
2012-13 $240,000 67%
2013-14 $350,000 97%
2014-15 + $360,000 100%

11. Ongoing Challenge – Growth in Debt Payments
• Ramp-up of debt repayment and inflation make maintenance of status
quo challenging
Increase in Expenses Implied Pledge
Related to Debt & Inflation Growth
2011-12 $75,000 - $95,000 6-8%
2012-13 $100,000 - $150,000 9-13%
2013-14 $110,000 - $140,000 9-13%
2014-15 $10,000 - $30,000 1-2%

12. Capital Fund
Projected Year-end Balance
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
2011-12 2012-13 2013-14 2014-15 2015-16 Dec-16
By 2016, we hope to call on our capital fund for a roof replacement
(2014) and organ improvement (2016). These projects are within our
reach if we meet the challenge to pay our mortgage from operating
funds by 2014-15.

13. -Fees
-Rentals
-Foundation
-Parking
Annual -Other Restricted
Pledges Fundraising Funds
Mid-Year 2011-12
Fiscal Status OPERATING
FUND
OPERATING
EXPENSES

14. Operating Revenues
2011-12 Revenues: $1.61
mil.
• Member pledges make up the
bulk of our annual revenues – in
2011-12 we expect about $1.17
million in pledge revenue.
• Our other sources of revenue
generate a combined $440,000.
•The use of over $70,000 in
restricted funding (primarily for
RE, Music, and Quest) has Pledge Payments (73%)
allowed us to avoid cutting back Other (11%)
those programs this year.
Foundation and Restricted (8%)
Rent (8%)

15. Mid-year Revenue Update
– Pledging Households
• 893 households have so far pledged $1.18 million
• 3% increase in the total amount pledged
– slightly under budget (.7%)
• 8% increase in number of households pledging
– Pledge revenue
• 47% of pledged amount has been paid
• Thank you to all who are current on your pledges!
– Other revenue
• YTD other revenue totals $259,000 and is 59% of the
budgeted total for the year.

16. Expenses
2011-12 Expenses:
$1.609 mil.
• The bulk of our expenses relate to our
staff and our programs – in 2011-12
these two areas account for almost 75%
of our total budget.
• We have little ability to significantly
reduce general office
expenses, building maintenance &
utilities
• Debt service is not a flexible expense.
• Shortfalls in revenue will directly Staffing & Program (76%)
impact personnel and program
spending. Gen'l (Office and Bldg) (15%)
Debt Service (9%)

17. Mid-Year Expenses Update
Personnel
 68% of budget
 YTD 48% of budgeted personnel costs
General Expenses (less debt repayment)
 15% of budget
 YTD only 37% of budget expended
Program Expenses
 8% of budget
 YTD only 44% of budget expended
Debt Repayment
 9% of current budget

18. Operating Budget compromises
• Children’s RE, music, and Quest sustained this
year by restricted funding
• Social justice position is only half-time
• Fundraising professional is only half-time
• UUA denominational contribution is at 5% of
recommended level

19. Summary
• Finding the capacity to handle our debt payments is a continuing
challenge over the next 3-4 years – we need at least growth in pledges to
avoid difficult decisions each year that will impact staff and programs.
• Programs are sustained this year by the use of earlier directed gifts and
dedicated fundraising
 We recognize it will be difficult to maintain this level of spending next
year.
• Managing the transition to full debt repayment:
 Deepening member engagement,
 Growth in new members, and
 New sources of funding.

20. Governance Committee Update

21. Governance Committee Update
• Series of Open Meetings
• “Think about a time when you were
spiritually touched at First Unitarian
Society, and share with your small group.
What what common themes emerge?”
• How can the First Unitarian Society
community facilitate greater spirituality?”

22. Governance Committee Update
Common Themes
• Community
• The Larger Community
• Worship/Spirituality
• Service

23. Governance Committee Update
Community
• Small Groups and communities such as Chalice Groups
• Music: “Members singing to members”
• Shared values
• Sharing of life events
• Spiritual support , both individually and as groups of individuals
• Our young people, Coming of Age service, intergenerational activities

24. Governance Committee Update
Worship/Spirituality
• Search for spiritual meaning
• Seasonal rituals are shared with other religious orientations, providing comfort
for many
• “Trinity of ministers” with diverse perspectives and experiences
• Spiritual nature of shared music
• Recognition of individual and diverse spiritual approaches
• Love and respect for Nature

25. Governance Committee Update
Worship/Spirituality
Continued
• The FUS campus; comfort in recalling life events taking place here
• Quest, women's retreats, annual retreat/workshops and Adult religious
Education have provided a platform for spiritual engagement
• Doing work that matters, learning to take charge, and being mentored by others

26. Governance Committee Update
The Larger Community
• FUS provides a forum with respect for diversity, inclusivity, acceptance
• Service Sunday activities
• Wartmann Lecture series
• Shared worship with other congregations

27. Governance Committee Update
Ideas
Groups
• More small groups that facilitate compassionate listening to each others stories
• Neighborhood groups; should have theme or reason for meeting and a structure.
Open to new members.
• Add Neighborhood group indicators on name tags.

28. Governance Committee Update
Ideas
Inclusion
• Foster mentoring relationships between new people and longer-term members
• Find ways to foster wider engagement for members who have mainly been
occupied with Religious Education activities
• Be welcoming as fully as possible; all ages, abilities, cultures
• Focus on accessibility in language, how we set up meetings

29. Governance Committee Update
Ideas
Inclusion
• Mentoring Program for new members
• Foster re-engagement for long-term members
• More technological outreach - both for those physically unable to attend and
“cyber-agers”
• Add intentional mingling activities to coffee hour

30. Governance Committee Update
Ideas
Larger community
• The candlelight vigil at the capitol was a very important example of how we act
on our values.
• Music exchanges with other faith communities
• Use Standing on the Side of Love/Social Justice activities as a way to connect
with other faith communities, particularly congregations of color.
• FUS youth who attended General Assembly are very interested in Standing on
the Side of Love activities

31. Governance Committee Update
Ideas
Service
• How do we know who needs help?
• How does the Staff let us know their needs?
• Get involved in a “community health initiative”- grant sponsored by Johnson or
Dane County United efforts (currently inactive)
• Michael’s monthly programs at Oakwood Village, Capital Lakes are ongoing--
involve kids in some visits to these places

32. Governance Committee Update
How it’s going
• Board Meetings focus more on vision; they have a more spiritual tone
• Board members have found the Open Question meetings very satisfying; they
really felt like reasoning together
• Staff feel more supported and focused