Council Approves 2021 Budget
 
On Sunday, March 21, 2021, Treasurer Sharon Turner Baldwin presented a revised 2021 Budget to Council, which was unanimously accepted. This Budget is based on work started by past-Treasurer Ken Custer and shared at our 2020 Congregation Meeting. That Budget was revised by our new Finance Committee (Peggy Thompson, Chair; Frosty Lohr, Council Liaison; Sam Ruff; Ross Jolly; and Sharon Baldwin) based on our Stewardship Campaign results and updated December 2020 and 2020 Year End reporting. 
 
Comments on the proposed Budget from the Finance Committee shared by Sharon highlight the following:
•    Total Income of $197,411, which includes:
•    Offerings Income of $186,411, which includes the total actual 2021 Giving Pledges plus an estimate of giving from non-pledging members, visitors, and friends based on recent six months history.
•    Other Income of $11,000, which reflects significant loss of income received in past years from First Steps use of the Annex and SC Synod Grants for Lutheran Services Carolinas use of Fellowship Hall spaces, plus adjustments due to LSC overpayments of $5,641 in 2020.
•    Total Expenses of $241,463.
•    The Finance Committee is committed to keeping RLC going into the future as a fully relevant and actively involved force in our community. To make drastic cuts in critical operating areas in order to preserve our resources is, by definition, self defeating.
•    In examining expenses, the Committee did not want to do anything that would impair the church in its mission and programs and the only recommended changes are tied to the limited gatherings potential for the remainder of 2021. The nursery will need to restart with volunteer attendants. The reduction of salary and duties for the Director of Music (from $15,500 for 2020 to $12,250 for 2021) is also consistent with the more limited services and Josh’s limited availability. These two changes to salaries also result in a slightly smaller employer tax burden.
•    2021 Unusual charges include: $6,976 in delinquent benevolences from 2020, $4,178 in property tax charges on the Annex which may be refunded, and credit for LSC overpayments.
•    Pastor’s benefits were adjusted based on Kathy’s transition to Medicare this year.
•    All other adjustments were based on the expectation of limited in-church activities for the rest of 2021.
•    Net Operating Loss of $44,052.
•    Over the past few years, the RLC budget ran a $20,000 - $30,000 average annual deficit. 2020 ended with a $9,928 surplus because of $30,362 forgivable PPP loans. The Finance Committee does not believe RLC will qualify for any 2021 loans due to more stringent qualifying thresholds.
•    The projected deficit is a best case scenario, and will be higher if giving does not meet goals.
•    The committee discussed several ideas in our attempt to cover this deficit situation:
•    Use funds from undesignated memorials.
•    Ask the Endowment committee for an earnings distribution for 2019 and 2020.
•    Loan additional funds from the Endowment Fund to the General Fund.
•    Reclassify the remaining balance in the Endowment Fund as General Funds as long as the donor did not originally specify the gift to be for the Endowment Fund.
•    Look into selling the overflow parking lot as originally planned when the parsonage was sold.
•    Actively seek some shared use/program or partner with another nonprofit for use of the Annex that might result in some expense sharing or income AND be a program that is consistent with the mission of the church.
•    Continue to host LSC but see if they could do a little cost sharing on utilities.
•    The longer term solution is increased giving since redirecting funds will only go so far.
 
A complete copy of the approved 2021 Budget is available on request from the church office.
 
Please join Council in expressing our gratitude to Sharon Baldwin, Sam Ruff, and Ross Jolly for all their research and consideration of options in arriving at a budget proposal for this year. And, please keep in mind that YOUR contribution is critical to what we are able to do this year as we begin ‘a new normal’ ministry in 2021. In addition to your regular Offerings, consider doing a FaceBook birthday or anniversary fundraiser or using Amazon Smile for all your on-line shopping with Reformation as the beneficiary, or for a truly lasting gift, prayerfully consider naming Reformation as a beneficiary from your estate. We pray that together in big or small ways, our gifts work to share God’s Love to have an impact in our world.


Ginny Eiwen, Council President