First Lutheran Community Church Council Meeting Minutes 16 November 2017
- CALL TO ORDER (Steve) 7PM
- OPENING DEVOTIONS (Pastor Adrian): Highs and Lows of all present.
- APPROVAL OF MINUTES FROM 19 OCTOBER COUNCIL MEETING Rev 1 (Steve).
Tabled until next meeting due to a couple of last minute changes.
4. Staff and Pastor Performance Review Discussion Follow-up (Steve)
Steve thanked Sharon, Dixie, Sue, and Jeff for all their time and effort in developing the Staff Performance review process and forms. Their hard work is making for a significantly improved process.
A. Sharon Bacon and Dixie Douthit discuss Performance Reviews
Discussed the questions, wording, and format of the Pastoral review. Corrected a few grammatical errors. Discussed the timing of the performance reviews for the Pastor. Determined that every three years was appropriate for the Pastor’s review.
Sue motioned we accept the performance review forms as written.
Nancy seconded the motion. The motion passed by unanimous voice vote.
A. President’s Report (Steve). Good things about the HR team. Announce to the
Congregation that the Daycare has offered to give $10,000 to the church to offset the payment due to the realtor for the lease renewal.
1) Met with daycare. Multiple parts. Coming budget for the year. Told them what
$500 per month repayment obligation would do to the Church. Talked with them about the relationship between the Daycare and the Church. Talked about loaning money to the Church and being paid back. Daycare decided to not request repayment.
- 2) Employee reviews have not been completed.
- 3) Moved the pews around again. Made a center row. Looking for a better way for
- 4) Advent is coming. Adult coloring books. Devotionals.
- 5) Light candles, Kelly’s dad is going to make us four stairs of tea lights. This way the
whole congregation will be able to light the advent candles.
- 6) Blue Christmas will be done by the Grief Group by themselves.
- 7) Tiny house village is going forward near the pancake house. It will be called
- 8) Last thing to be built will be bathrooms and a kitchen.
- 9) Marj is having trouble keeping within her allotted hours. She currently is working
15 hours a week.
Nancy motioned we add 5 hours of floating time per month to Marj’s authorized time. Jeff Seconded the motion. The motion passed by unanimous voice vote.
Question: Have we started using the Severe Weather Shelter yet. No it has not been activated yet.
C. Treasurer’s Report (Nancy)
1) 2018 Budget Planning Update. Fred Seidel presented a preliminary 2018 Budget
tonight. The preliminary budget was developed with a little input from staff and the Council. Fred and Nancy asked that as we go through the budget to please think about any new or changed priorities or programs, and to forward suggestions to the Finance Committee. Considerations for 2018 Budget:
a) Pastor’s salary – We have been paying our Pastors too little. SW Washington Synod ELCA guidance requests that we pay Pastor Adrian $60,921 in 2018 (based on 8 years post ordination). That’s an increase of $4921. Based on the recommended compensation the Pastor’s benefits will also go up to $27,597. That’s a total increase of $8438.
b) Deacon Marj – We have calculated a 2% increase in salary, to $14,719. She has waived health insurance, but her other benefits would go up by approximately $150 if we increased her compensation. During 2017 we also added a travel allowance of $100 per month. The total increase in salary and benefits for 2018 would be $2813.
c) Employee salaries
(1) Pay raises – we did not increase the employees’ salaries in 2017. We have
calculated a 2% increase in salary for 2018. Also, as of January 1, 2018 the minimum wage goes up to $11.50 per hour. Taken together these changes increase salaries by about $1500.
(2) 2017 changes – the Council approved changes in the salary structure for several persons during 2017. The youth ministry position was split between Michael Whitehead (3 hours) and Brit Olsen (7 hours), but still with 10 hours per week. The assistant music director position (Brit) was moved from a professional service contract to a salaried employee. The events coordinator hours were increased from 15 to 17 hours per week. The hours for one of the custodian positions were increased from 6 to 12 per week. The 10 hours per week allocated for a landscape employee in 2017 was increased to a total of 20 hours per week for two employees. A summary chart for these changes is attached. Church Operations expenses are going down slightly.
d) Transformation grant – the current grant runs through 2019. In 2018 we will receive $16,500, and in 2019 we will receive $13,200. We encourage the Council to consider how to accommodate the ending of the grant in 2020, including whether we can retain the current staff and other programs funded by the grant. If we do, we will need to factor that into the budget. If not, we need to provide those employees adequate notice of termination.
e) Income from Ministry Center – The Kitsap Mental Health Services extended their lease of the Ministry Center for another 3 years (until Sep 30, 2020). The monthly base rent increased to $4433. The operating charges in 2017 were $428, for a total of $4861 per month for Oct – Jan. We will recalculate the operating expenses in Jan 2018, so they may go up or down.
f) Operating emergency funds – this year we had a “surprise” bill for the rental agent’s commission. We should plan for these occasional surprises. We recommend that we set aside $200 per month in an operations emergency fund. We could recommend to the council that it not exceed $10,000, but we would continue to put money in until then. Need to set aside money for a rainy day fund for emergency.
g) Our Synod benevolence for 2017 is $14,400. We increased it from $13,650 in 2016 (5.5%). If we increase the benevolence by 4.2% for 2018 that would be $1250 per month ($15,000 per year).
h) We think we will receive more general giving in 2018 than in 2017
i) The current budget estimate has a deficit of $12,295 that must be addressed. The greatest component of the deficit is from salaries. Possible options are to reduce the custodians’ hours by half, giving one custodian 10 hours per week and the other custodian 6 hours for a total of 16. This would save $9,568. Another option is to reduce the landscape salaries by half, giving each person 5 hours per week for a total of 10 hours or eliminating one position keeping the same 10 hours per week. This would save $5,980. Another option for the landscape support is to investigate hiring a commercial landscaper for 9 months, and eliminating the employees altogether. Other salary reduction options could be combining positions, or eliminating positions.
j) As already mentioned, both the transformation grant and the current lease contract end in 2020. Together these provide nearly $75,000 dollars per year. The Council should be developing a vision of how to accommodate the possible loss of this income by that time.
2) FLCC: General Giving in October was much improved at $25,703 plus the generous $10,000 gift from the Daycare to cover the unexpected commission expense upon renewal of the lease by Kitsap Mental Health. The month-end General Fund balance was $26,699 before Federal payroll tax liability of $6,722. There continues to be a problem with Accounts Payable: it prints as a negative $2,244 which would mean our vendors owe us! Sirena plans to reconcile this “clearing account” and may find the problems range over several years. The Unpaid Bills detail on 10/26 was zero. The new telephone/internet system was installed in August. Kelly & Paul are still working to get the monthly billing corrected.
3) Ministry Center Lease: KMH is now paying the correct amount, and paid the $341 amount missed in September.
4) Transformational Ministries Grant: In addition to Corrinne’s salary, TM paid for Advent materials & 1/3 of the expense for a “bouncy house obstacle course.” Brit Olson’s Assistant Music Director position is TM expense. Council approved increasing his weekly hours to 8, to include the second service. Five Sunday’s in October also increased the monthly expense.
5) NADC – Noah’s Ark Daycare: October Daycare income was $48,030. Daycare’s expenses included the very generous gift of $10,000 to the Church, which covered the $9,575.28 broker’s commission upon renewal of Kitsap Mental Health’s lease of the Ministry Center building. The gift resulted in a $1,597 loss in October, but they still have year-to-date profit of $13,765. At month-end, NADC had $108,704 combined in checking and savings.
6) NAPS – Noah’s Ark Preschool: Preschool enrollment is holding at 48-49 students. “This week our 6th student from Daycare started Preschool–that is an all-time high. I attribute it partly to good reviews and information to parents by the Daycare teachers.” October includes Cherrydale fundraiser income of $2,362, but may not reflect the full fund raiser expense. Karen also will receive $640 for the just completed textile drive fundraiser. She thanks TJ & Marci Martin for use of their truck to deliver the textiles to Tukwila. October prints a net income of $2,474, and a year-to-date profit of $9,536. The Preschool had a combined $32,879 in savings & checking at month-end.
7) Designated Funds:
a) Community Aid Fund – helped with utility bills, laundry tokens, partial rent
and move-in deposits, a water pump vehicle repair, and gas money for a person starting a new job.
b) Confirmation Fund – a new fund that has been created to receive the money and then pay for the lunches that are part of the Faith Diving confirmation program.
c) Flowers – it appears time to remind those who have signed up for flowers that they need to pay $30 per Sunday – the 10/31 balance is only $19.
d) Funeral/Memorial Receptions – two services in October with a small amount transferred to the General Fund as “facility use fee”.
- e) Major Maintenance – $950 expense for upgrades to the Internet system.
- f) Miscellaneous Pass Thru – received income and paid for the Church-wide read
book Evicted. $680 which was received in September & October for Disaster Relief was sent to the Synod for further credit to ELCA Disaster Relief: Hurricane Relief.
g) Vacation Bible School – Paul is reviewing both income and expenses for this fund and the Youth Fund.
h) Sirena has begun processing the journals to correct amounts between VBS – Youth – Confirmation. Initial transfers resulted in a beginning deficit in the Confirmation Fund.
D. CBA’s Report (Paul): 1) Facilities
- a) Need a new shed for the Daycare, and we need to figure out where to put it.
- b) Boy Scout is looking at a project to replace the green shed. Lumber inside is
pretty good, so maybe be able to build a new shed out of the wood.
c) Our current shed and the old green shed have 3 riding lawn mowers, the carnival stuff, and other storage. Shed limits are 200 sqft max without a permit.
Sue Motioned to have the meeting go past 9pm.
Nancy seconded the motion. The motion passed by unanimous voice vote.
6. OLD BUSINESS (Steve): Nothing to Report Suggestion Box. Need to put it up soonest.
7. NEW BUSINESS (Steve): Nothing to Report
Lease moving forward. Discussed what to do about it to ensure we don’t have to pay the
realtor fee if the building is leased again in 2020.
8. FOR THE GOOD OF THE ORDER (Steve): Nothing to Report
9. ADJOURNMENT (Steve)
Nancy motioned to adjourn the meeting.
Freddie seconded the motion. The motion passed by unanimous voice vote.
10. NEXT MEETING IS SCHEDULED FOR THURSDAY, 21 DECEMBER, 7:00 PM