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MGLC Council Meeting Minutes
January 12, 2006
Members Present: Todd Treml, Steve Hanson, Steve Wagner, Sue Schwedler, Kathy Bruha, Laura Winge, Paul Backer, Mike Eggers, and Erik Scott
Members Absent: Shelly Halverson, Dave Palm, Patty Branch, and Geoff Jones
Staff Present: Pastor Durk, Pastor Chris and Melinda Nelson
Todd Treml opened the meeting with prayer.
President’s Comments
Todd Treml said the meeting tonight would focus on the budget. Council will also discuss upcoming informational and congregational meetings. It is important to remember that we are not creating dollars, we need to work with what we’re given and we need to communicate this to the congregation. We will be discussing staff and benevolence cuts. Laura Winge asked if we should announce budget cuts in church so everyone hears the message? The people who come to the annual meeting are typically the ones who are giving faithfully. Todd said we could consider announcing at church. It is important to note that special gifts have been helping fund our budget in the past years – we don’t have those special gifts this year and we can’t continue to run the church this way.
December Financials/Year End Updates/Budget
December financials –
- Strong cash position due to one time $141k easement payment from city of Maple Grove,
- Some good capital fund make-up pledges at end of 2005,
- General fund ended the year $20,132 net behind budget, $45k behind on pledged offerings, offset by expense savings,
- Attendance relatively flat year over year and consistent from Sunday to Sunday,
- $22k of operating cash in bank; remaining cash of $252k is dedicated, primarily capital fund,
- December attendance and offerings hurt by Christmas Day falling on a Sunday; pledged offerings rec’d = $35k actual vs. $49 budget,
- 2006 – budgeting at 100% of actual pledges ($456,457) which is aggressive based on history, but don’t want to send the message that we are not expecting people to meet their pledges,
- Original estimate for non-pledged was $120k, but reduced to $105k to account for aggressive pledge budgeting without sending the wrong message to those who pledged,
- Pledges relatively flat over 2004 and 2005, but 18% increase since 2003,
- We will not be relying on special gifts in 2006 as in 2004 and 2005, and $60k cash infusion from refinance of mortgage in 2003,
- Showing gross Youth receipts and expenses in budget to show congregation Youth activity in 2006 rather than netting it thru dedicated account,
- Staffing and Benevolence are largest expenses,
- 2006 goal for benevolence was 10% of offerings, but other priorities needed to be considered,
- Budgeted Benevolence reduction will be offset via special appeals.
Todd clarified that spending of Benevolence dollars is recommended by Social Concerns, voted on by Council, and approved by Congregation. Recommended Benevolence budget is now about 6% offerings; 2005 was budgeted at 9.5%, actual was 10% due to lower pledges. Sue S. is concerned about dropping benevolence. Steve H. reminded that is about priorities. Pastor Durk stated that the regional average is about 4.5% for benevolence; MGLC’s ELCA benevolence is well below average. Steve W. suggested we review remainder of budget and come back to benevolence.
- Office Expense budget slightly lower than 2005,
- Salary Costs – includes Youth Director, $5,600 of merit increases ($3,000 funded by special gift),
- Draft budget does not include full-time Parish Secretary position; Council needs to discuss - Painful decision, but it comes down to priorities,
- Melinda stated that Office Expense budget will be tight, but is realistic,
- The entire Council will need to be very aware of budgets throughout 2006.
Steve W. advised that budget is still optimistically aggressive based on pledged offerings budgeted at 100% even with reduction to budget for non-pledged offerings.
- Ministry areas are budgeted relatively flat to 2005 actual – most variances are attributable to shifting of expense line items between ministry areas,
- Building & Grounds – primarily fixed expenses; contains no principal and interest payments, which come out of Capital Fund.
Mike Eggers said that benevolence cuts reflect fiscal reality, but is concerned about psychological impact on congregation’s strong givers.
Steve W. said we could budget for income from special appeals for Benevolence, with the understanding that only what is collected is spent (beyond the normal budget).
Pr. Chris expressed concern about not budgeting support for Jordan.
Melinda reminded that Social Concerns can decide where the budget $ get spent and recommend to Council (i.e. – reallocate the total while staying within budget).
Steve said we should let Social Concerns decide how $ are allocated.
Pr. Durk agreed that’s fine, but the allocation does need to be approved by Council.
Erik S. asked should disclose to congregation that 50% of $ are going to DR – not saying it’s a bad thing, but should we disclose?
Paul B. said we need more visibility into where Benevolence $ are spent – current line items don’t tell the typical congregation member where $ are going.
Todd advised that Social Concerns needs to take a look at where Benevolence $ get allocated and come back to Council for approval.
Todd asked for discussion on proposed staffing reductions.
Steve Hanson said we need to assess current office processes; in addition, Communication Coordinator position adds 10 new hours (as of November 2005) that should be covering ministry notes and Messenger.
Melinda Nelson is very concerned about reducing office staff – doesn’t think existing staff will be willing and able to take on additional hours.
Laura Winge said that we need to understand what tasks need to be reallocated.
Todd asked what is the priority – Youth Director or Parish Secretary?
Pr. Durk replied that a Youth Director is priority.
Lots of discussion…
Council and Pastor Durk agreed that Durk would talk to Parish Secretary about cutting back hours to 20 / week beginning in mid-February (as reflected in the proposed budget).
Steve Wagner reminded that regarding setting budgets at prior year actual sends the message to budget owners to spend their entire budget every year whether they need it or not so they get the funding again the following year.
Todd asked for motion to approve budget as presented.
Mike Eggers motioned to approve budget and recommend to Congregation for their approval. Paul Backer seconded.
Discussion: Pastor Durk reminded Council to clearly communicate to Congregation that special gifts have helped fund budget in the past, and we will not have it in 2006.
Opposed: one
Motion passed
Pastor Reports
Pastor Durk gave an overview of his written report.
Todd asked for a motion to approve the hiring of Todd Grover as Youth and Young Adult Ministry Director.
Paul Backer shared very positive views on Todd and said the entire interview team did a great job!
Laura Winge moved to approve the hire of Todd Grover and Youth and Young Adult Ministry Director. Sue Schwedler seconded – motion passed unanimously.
Pastor Chris gave an overview of her written report – a big thank you to Paul Backer, Sarah Schneibel and the whole Youth Team during the interview phase.
Facilities Team/Steering Team Update
Facilities Team update given by Pastor Durk: meeting weekly, interviewing architects, need $ figure from Council to provide to architect for beginning work on plans; original estimate that was presented to Congregation in October was $4.6 million.
Todd reminded everyone and stated that THIS IS NOT AN AUTHORIZATION TO SPEND, only to give the architects an idea of what they should plan for.
Steve W. cautioned that $4.6 million is an aggressive target for this congregation based on historical giving
Steve H. agreed with Steve W. and advised that we will likely need to finance a large portion of the cost and therefore sustain capital giving not just for 3 years but also for 20 years to pay the resulting mortgage.
Erik Scott asked if we needed to vote? Congregation voted on a number in November ($4.6 million).
Todd said that was a good point; no vote necessary – will tell Facilities to use $4.6 million for planning purposes.
Steering update by Todd: Team going thru request for proposal (RFP) process to engage broker by mid-Feb to sell land.
Paul Backer stated he has been asked by Steering Committee to write letter to the city of MG for Todd’s signature requesting the city have one of their contractors remove excess dirt from the Fernbrook site for another city project at no cost to MGLC – should increase market value of land.
New Business
None to report.
Approval of minutes
Sue Schwedler motioned to approve December minutes, Steve Hanson seconded – all approved.
Meeting adjourned with the Lord’s Prayer at 10:15 pm.
Notes taken at the meeting by Steve Hanson (thank you Steve!)
Respectfully submitted,
Shelly Halverson
Next Council Meeting: Thursday, February 9, 2006, 7:00 – 9:00 pm, MGLC