Stewardship & Budget

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NARRATIVE BUDGET

BUDGET ASSUMPTIONS 

Benevolence Factor – Proposed 2021:  17.550%
The benevolence factor is the percentage churches are apportioned based on their operating expenditures less exclusions.  The percentage for 2021 is .05% less than the percentage used in 2020 (17.600%).

Mission Shares Collection Rate - Proposed 2021:  87.5%
The projected collection of the amount apportioned to churches in the 2021 Budget is 87.5%.  The percentage for 2021 is 3.5% less than the budgeted Collection Rate for 2020 (91%) based on the impacts of the COVID-19 pandemic.

REVENUE

Mission Shares:  $13,034,887
A church’s share of the local and global mission work and operating expenses of the Annual Conference as determined by the mission shares formula. 

Grants:  $227,300
This represents grants given directly to the conference for ministry and mission. For example, General Church grants to operate the Episcopal Office and residence.

Event Registration:  $2,263,462
This includes Annual Conference registration, workshop registrations, Retreat and Camping Ministries registrations (majority of line item) and other conference events.

Publications:  $4,100
This includes sales or rentals of publications, DVDs, paid UMConnection subscriptions, and other materials.

Individual Gifts
Gifts from individuals for specific programs. These are for the conference, specifically, rather than for ministries outside of the conference.  No such gifts are anticipated in 2021.

Reimbursements:  $100,000
The conference receives reimbursements from denominational agencies for specific operating programs.  The Mission Center tenant leases are also captured in this revenue category.

Other Income/Sources of Funds:  $2,020,504
Miscellaneous income or sources of funds, such as the funding from agency reserve funds.  For example, Retiree Medical expenses (majority of line item) are 100% paid from the Board of Pension Reserves.  The funds from the sale of discontinued churches are used to fund a portion of the New Faith Expressions.

Interest:  $50,000
An estimate of the interest the conference will earn on operating funds in investment vehicles.

TOTAL OPERATING REVENUE:  $ 17,700,253

EXPENSES

DISCIPLESHIP EXPENSES

Regional Ministry Teams:  $2,243,723
Funds to operate the ministries and administrative support of the Regions.  The Regional Teams include:

  1. Southern Region (Annapolis and Washington East Districts)
  2. Baltimore Region (Baltimore Metro and Baltimore Suburban Districts)
  3. Washington Region (Greater Washington and Central Maryland Districts)
  4. Western Region (Frederick and Cumberland-Hagerstown Districts)
Discipleship Ministry Teams

Discipleship Ministries

  1. Discipleship Ministries: $1,268,875
    Funds to operate the ministries and administrative aspects of the Discipleship Ministries and Congregation/Leadership
    Development Teams.  Funds are also allocated for Discipleship Council, Connectional Table and Board of Laity.
  2. General and Jurisdictional Missional Shares: $2,882,915
    The funds that the General Church and Northeast Jurisdiction request for ministry and programs from each conference.  The conference celebrates its track record of paying 100% of these missional shares since 1998.  General Church funds include:

World Service

To help our denomination strengthen its evangelism efforts, stimulate church growth, expand Bible studies, and enrich spiritual commitment.  This fund allows us to share in a worldwide ministry, including support for missionaries.

Interdenominational Cooperation

This fund allows United Methodists to have an effective presence in the activities of ecumenical organizations.

Africa University

This fund supports the further development of the first private university for men and women in Africa.

Black College Fund

This fund represents the denomination’s support of the operation and capital funding of historically black colleges and medical schools.

Ministerial Education Fund

This fund provides our church support for the recruitment and education of future pastors and bishops.

Episcopal Fund

This fund pays the salaries and benefits of active bishops in the denomination and supports retired bishops.

General Administration

This fund supports administrative areas of the church, such as the General Council on Finance and Administration, the General Conference session, and Archives and History.

Jurisdictional Administration

This fund supports mission and ministry through the Northeastern Jurisdiction.

Leadership Development and New Faith Expressions: $1,481,753

  1. Grants to local churches and ministries to grow congregations and expand ministry in the community.
    1. Start new churches
    2. Board of Ordained Ministry
    3. Certified Lay Ministry

Young People's Ministry: $2,416,362
Ministries funded by Young People's Ministry include Children, Youth, Young Adults, Campus Ministries, and Retreat and Camping ministries.

  1. Youth Ministries engage and support young disciples of Jesus Christ.
  2. Retreat and Camping Ministries provide opportunities for spiritual growth and formation for children and adults.
  3. Campus Ministries support staffing and programs on four area college campuses.

Advocacy & Action; Abundant Health: $806,820
Social Justice Ministries such as Justice for our Neighbors, NEJ Call to Action, and Hope for the City are funded through Advocacy and Action.  Funds are also devoted to Deaf Ministries.  Abundant Health includes funds for our partnership ministries with other conferences, such as Zimbabwe, South Korea, Latin America, and Eurasia.

Total Discipleship Ministry Teams:  $8,856,725
TOTAL DISCIPLESHIP EXPENSES:  $11,100,448

STEWARDSHIP EXPENSES

Communications:  $596,165
The publications produced by this area are tools for implementing the ministries of the Conference, such as the UMConnection newspaper, the Web site and e-connection.

Operations:  $2,969,575
This area is responsible for overall operations of the conference facilities, and IT systems and infrastructure.  

Property Ministries
The Conference Trustees oversee all property owned by the conference, to include the Conference Mission Center, three Retreat and Camping facilities, the Episcopal Residence and the leased offices in Frederick and on Capitol Hill.

Archives and History
The conference provides support for the preservation of our United Methodist Heritage.

Conference Chancellor
Provides legal resources to the Trustees and other conference leadership.

Annual Conference – Commission on Sessions
The commission prepares all aspects of the annual conference session including program and logistics.

Finance:  $552,298
This area is responsible for maintaining and administering comprehensive fiscal and administrative policies and services. The office of the treasurer provides support and information for clergy and laity in local churches.

HR/Benefits Administration:  $2,073,228
This office administers all active and retired benefit plans for clergy and laity.  They also provide personnel and HR support for Conference staff.

TOTAL STEWARDSHIP EXPENSES:  $6,191,266

Episcopal Leadership Ministry:  $408,540
Ministries that lead our mission and develop the leadership to lead congregations, ministries and staff.

TOTAL OPERATING EXPENSES:  $17,700,253
OPERATING NET:  $0

RECOMMENDATIONS AND RESOLUTIONS

STEWARDSHIP MINISTRIES

Recommendations from the Council on Finance and Administration

  1. The proposed budget of $17,700,253 shall be adopted for 2021, including a mission share income budget of $13,034,887. This represents a decrease of 7.2% in the mission share asking compared to the 2020 budget.
  2. The Benevolence Factor (BF) for 2021 is set at 17.55%, a reduction from 17.6% in the 2020 budget. The collection rate assumption for 2021 is set at 87.50%, which is 3.5% lower than the 2020 rate.
  1. As required by The Book of Discipline, the ratio for World Service and Conference Benevolences shall be set as follows: 33% for World Services and 67% for Conference Benevolences.
  2. The firm of Ellin & Tucker is approved as independent auditors to audit the Conference Treasurer’s financial records for 2020.
  3. The date for closing the 2020 Conference financial books shall be set at January 12, 2021, with all payments to be received by the Treasurer’s Office no later than that date.
  4. The Baltimore-Washington Conference grants authority to the Council on Finance and Administration, in consultation with the Bishop, the Cabinet, and the Discipleship Council to act on financial matters between sessions of the Annual Conference.

Submitted by:
Phil Potter, President
Paul J. Eichelberger, Chief Financial Office and Treasurer

The Commission on Equitable Compensation 

Recommendations:

The Commission on Equitable Compensation is recommending that the base salary for the 2021 Clergy Salary Table be increased by 1.75% or $786, which will make the base salary $45,678.

The Commission is also proposing an increase in the recommended housing allowance of 0.5% or $101, which will make the recommended housing allowance $20,364.

Kim Ayres, Chair
The Discipleship Council voted concurrence on these recommendations.

Board of Pensions RECOMMENDATIONS

The Conference Board of Pensions and Health Benefits requests that the Annual Conference adopt the following recommendations:

1. That BWC continue to provide retiree medical to all eligible participants.

2. That in accordance with paragraph (e) of Supplement One (Pre-1982), the surviving spouse pension benefit shall continue to be 85% of the participant’s formula.

3. That the special grant for Madelyn Hoffman be continued. 

4. Pre-1982 Service – Past Service Rate (PSR):   That the Annual Conference shall approve the following pre-1982 prior service funding plan in compliance with the Disciplinary requirement listed in ¶1506.8:  The Past Service Rate (PSR) for 2020 is confirmed at $749.  The PSR for 2021 will be set at $768 = 2.5% increase. 

5. That the Annual Conference shall approve the following funding plans based on the receipt of a favorable opinion from Wespath Benefits and Investments in compliance with the Disciplinary requirement listed in ¶1506.6.

Funded status and contributions are based on actuarial valuations as of January 1, 2018, 

Pre-82 Plan:  By General Conference mandate, Pre-82 liabilities are to be fully funded by December 31, 2021.  Baltimore-Washington Conference is already fully funded, with its assets with the Pre-82 Plan equal 135% of its liabilities.

Corridor Funding:  Clergy Retirement Security Program (CRSP-DB) and Ministerial Pension Plan (MPP) annuities.  The funded Ratio for this funding is the same for all Conferences

Plan Assets Liabilities Funded Ratio
CRSP-DB $2.049 $1.913 107.1%
MPP Annuities $3.997 $3.718 107.5%

Post-Retirement Medical:  Based on an actuarial report received in April 2020, the Post-Retirement Medical plan is reported to have a current view funding ratio of 146.6%.  The ongoing view funding ratio is 214.4%.

The funding plan as of December 31, 2019 is summarized below.

Current View Ongoing View
Discount Rate 3.20% 6.50%
Plan Liability $32,256,124 $22,057,379
Plan Funding $47,300,000 $47,300,000
Funded Status $15,043,876 $25,242,621
Funded Ratio 146.6% 214.4%

6. That the following resolution, as required for IRS compliance, shall be approved:

Resolutions Relating to Rental/Housing Allowances for Retired or Disabled Clergypersons of the Baltimore-Washington Conference

The Baltimore-Washington Conference (the “Conference”) adopts the following resolutions relating to rental/housing allowances for active, retired, or disabled clergypersons of the Conference:

WHEREAS, the religious denomination known as The United Methodist Church (the “Church”), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church (“Clergypersons”);

WHEREAS, the practice of the Church and of this Conference was and is to provide active

Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation;

WHEREAS, pensions or other amounts paid to active, retired and disabled Clergypersons are considered to be deferred compensation and are paid to active, retired and disabled Clergypersons in consideration of previous active service; and

WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation;

NOW, THEREFORE, BE IT RESOLVED:

THAT an amount equal to 100% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the Discipline), which includes all such payments from the General Board of Pension and Health Benefits ("GBOPHB"), during the years 2020-2021 by each active, retired, or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and

THAT the pension or disability payments to which this rental/housing allowance applies will be any pension or disability payments from plans, annuities or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, retired or disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity or fund for such active, retired, or disabled Clergyperson's pension or disability as part of his or her gross compensation.

NOTE: The rental/housing allowance that may be excluded from a Clergyperson's gross income in any year for federal income tax purposes is limited under Internal Revenue Code section 107(2) and regulations there under to the least of: (1) the amount of the rental/housing allowance designated by the Clergyperson's employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; (2) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (3) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year.


Church Closing Resolutions

Title: Resolution to Close the Bells Chapel United Methodist Church, Dickerson, MD

Budget Implications: None
Rationale: Conference Takes Title of a Local Church Under Exigent Circumstances
Submitted by: Rev. Edgardo Rivera, Frederick District Superintendent

RESOLUTION: 

Whereas, in the Frederick District, the congregation of Bells Chapel United Methodist Church on the old Centreville Charge, located at 830 Mount Ephrain Rd., Dickerson, MD  20842, was transitioned to a Limited Service church in 1976, and

Whereas, the situation exists where Bells Chapel United Methodist Church no longer serves the purpose for which it was organized or incorporated, and

Whereas, the Bells Chapel United Methodist Church property is no longer used, kept, or maintained by its membership as a place of divine worship for The United Methodist Church, and

Whereas, on July 31, 2020, between sessions of the Baltimore-Washington Conference with the consent of the presiding Bishop, a majority of the District Superintendents and the Frederick District Board of Church Location and Building, the Conference Trustees declared that exigent circumstances existed that required protection of Bells Chapel United Methodist Church’s property, for the benefit of the denomination, in accordance with paragraph 2549 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Bells Chapel United Methodist Church closed as of July 31, 2020, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Bells Chapel United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: September 12, 2020

Title: Resolution to Close the Boring United Methodist Church, Upperco, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Ann Laprade, Baltimore Suburban District Superintendent

RESOLUTION: 

Whereas, in the Baltimore Suburban District, the congregation of Boring United Methodist Church on the Boring: Boring-Piney Grove-Mt. Gilead UMC Charge, located at 14819 Old Hanover Rd., Upperco, MD 21155, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on September 22, 2019, between sessions of the Baltimore-Washington Conference, the leaders of Boring United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Boring United Methodist Church closed as of September 30, 2019, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Boring United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: September 12, 2020

Title: Resolution to Close the Deer Park United Methodist Church, Reisterstown, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Ann Laprade, Baltimore Suburban District Superintendent

RESOLUTION: 

Whereas, in the Baltimore Suburban District, the congregation of Deer Park United Methodist Church on the Upperco: Deer Park Charge, located at 6107 Deer Park Rd., Reisterstown, MD 21136, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on November 3, 2019, between sessions of the Baltimore-Washington Conference, the leaders of Deer Park United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Deer Park United Methodist Church closed as of June 30, 2020, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Deer Park United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: September 12, 2020

Title: Resolution to Close the Forest Memorial United Methodist Church, Forestville, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Gerard Green, Greater Washington District Superintendent

RESOLUTION: 

Whereas, in the Greater Washington District, the congregation of Forest Memorial United Methodist Church on the Forestville: Forest Memorial Charge, located at 3111 Forestville Rd., Forestville, MD 20747, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on June 27, 2020, between sessions of the Baltimore-Washington Conference, the leaders of Forest Memorial United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Forest Memorial United Methodist Church closed as of September 30, 2020, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Forest Memorial United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: September 30, 2020

Title: Resolution to Close the Mount Carmel United Methodist Church, Brookeville, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Another Local Church
Submitted by: Rev. J.W. Park, Central Maryland District Superintendent

RESOLUTION: 

Whereas, in the Central Maryland District, the congregation of Mount Carmel United Methodist Church on the Mount Carmel: Brookeville Charge, located at 22222 Georgia Ave., Brookeville, MD 20833, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, the congregation of Saint Paul United Methodist Church, located at 21720 Laytonsville Rd., MD 20882, has agreed to facilitate a graceful transition for the congregation and ministries of Mount Carmel United Methodist Church, and

Whereas, during a Church Conference on December 8, 2019, between sessions of the Baltimore-Washington Conference, the leaders of Mount Carmel United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Board of Trustees of Saint Paul United Methodist Church following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Mount Carmel United Methodist Church closed as of December 31, 2019, and

Be it further resolved, that the Board of Trustees of Saint Paul United Methodist Church were authorized to take possession of the real and personal, tangible and intangible property of Mount Carmel United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE:  September 12, 2020

Title: Resolution to Close the Saint James United Methodist Church, Westminster, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Another Local Church
Submitted by: Rev. Edgardo Rivera, Frederick District Superintendent

RESOLUTION: 

Whereas, in the Frederick District, the congregation of Saint James United Methodist Church on the Westminster: Saint James Charge, located at 3000 Marston Rd., Westminster, MD 21157, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, the congregation of Wesley Freedom United Methodist Church, located at 961 Johnsville Rd., Eldersburg, MD 21784, has agreed to facilitate a graceful transition for the congregation and ministries of Saint James United Methodist Church, and

Whereas, during a Church Conference on November 20, 2019, between sessions of the Baltimore-Washington Conference, the leaders of Saint James United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Board of Trustees of Wesley Freedom United Methodist Church following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Saint James United Methodist Church closed as of December 31, 2019, and

Be it further resolved, that the Board of Trustees of Wesley Freedom United Methodist Church were authorized to take possession of the real and personal, tangible and intangible property of Saint James United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE:  September 12, 2020

Title: Resolution to Close the Saint Luke United Methodist Church, Monkton, MD

Budget Implications: None
Rationale: Local Church voluntarily transfers title to Conference Trustees
Submitted by: Rev. Ann Laprade, Baltimore Suburban District Superintendent

RESOLUTION: 

Whereas, in the Baltimore Suburban District, the congregation of Saint Luke United Methodist Church on the Hereford: Hereford Combined Charge, located at 16810 Hereford Rd., Monkton, MD 21111, has served God faithfully through the United Methodist Church for many years, and

Whereas, in recent years the congregation has experienced a decline in membership and financial stewardship, and it is no longer feasible to keep it open and operational as a church, and

Whereas, during a Church Conference on January 12, 2020, between sessions of the Baltimore-Washington Conference, the leaders of Saint Luke United Methodist Church voted to voluntarily transfer title to all its real and personal, tangible and intangible property to the Conference Board of Trustees following procedures set forth in paragraphs 2540 and 2541 of The Book of Discipline of The United Methodist Church (2016);

Be it resolved, that the Baltimore-Washington Conference does hereby declare Saint Luke United Methodist Church closed as of January 12, 2020, and

Be it further resolved, that the Conference Board of Trustees are authorized to take possession of the real and personal, tangible and intangible property of Saint Luke United Methodist Church and to make a determination of how the property may best be used for the Kingdom of God.

EFFECTIVE DATE: September 12, 2020