2018 Ministry Plan Update

It is great to report good news! At our November 12, 2017 meeting, Peace passed a “bare bones” ministry plan for 2018 based on 2017 projected giving. Because of the uncertainty about our projected giving levels and available income, the Finance Committee recommended we reevaluate the ministry plan during the 1st quarter of 2018 based on actual income for 2017 and revise estimates for 2018 if needed. The Finance Committee has completed this reevaluation and we are happy to report that 2017 General Operating Fund income exceeded the forecast by 19%. 

As a result of this large difference in actuals versus forecast, the Finance Committee reviewed monthly income for the last four years and has developed a revised forecasting model to more accurately predict end of year giving. This new forecasting model will be implemented for future budget cycles. As a result of the 2017 income, we ended 2017 with approximately $135,000 in unallocated general funds from prior years.

While we need to maintain an adequate cash reserve for unanticipated expenses, the Finance Committee feels that there are adequate funds to go ahead and spend some of the funds on deferred maintenance and other necessary projects. The Property Board has done an excellent job of using their skills with electrical, plumbing, and carpentry projects to keep up with what they can, but a number of projects have to be contracted out. These are projects that typically get more expensive over time. The Finance Committee along with the Property Board are proposing to add $25,000 to the 2018 ministry plan for property maintenance projects, $19,000 for fixed asset expense projects, and $2,000 in general property costs for a total increase of $46,000. Property maintenance projects will move forward in the 2nd and 3rd Quarters of 2018. Fixed asset expense projects will be scheduled only as it makes sense to do so.

The proposed changes to the 2018 ministry plan were approved by the Council at their April 3 meeting. A Community Connections session will be held on April 8 to address any questions the congregation may have on these proposed changes before voting on the updated ministry plan at the Spring Congregational Meeting on April 15. See Gerri West, Peace Treasurer with any questions prior to that time.

We praise God for your wonderful support of Peace Lutheran and it’s ministries!