First Lutheran Community Church Council Meeting Agenda for 15 September 2016
Attendees: Jeff Robinson, Dixie Douthit, Sharon Bacon, Nancy Rollins, Fredericka Nordeen, Troy Cook, Pam Hess, Jim Demott, Marcie Martin, Wade Schmidt, and Paul Gaudette CBA
Absent: Lorraine Olsen, Brad Hayward, and Pastor Adrian Bonaro Guests: Fred Seidel
1. CALL TO ORDER (Jeff) (7:04PM):
2. OPENING DEVOTIONS (Jeff): Highs and Lows for everyone present
3. APPROVAL OF THE MINUTES FROM AUGUST’S MEETING (Jeff) Wade Motioned that the minutes from the August meeting be approved. Sharon Seconded the motion.
Unanimously approved by voice vote.
A. President’s Report (Jeff)
Lorraine will not be here
Brad Hayward has accepted a Pastoral internship at Spirit of Life. He has resigned from the Council.
1) Grassy Area fence extension – Is complete.
2) Fencing around the Heat Pump – have enough fencing to complete.
3) Drainage Pond Grass Cutting – have started working on it.
4) Feedback from making the FLCC campus smoke free, effective 1 October. Also, no
vaping will be allowed.
5) Shaded play area. Jeff would like to get input from the congregation regarding a
covered area near the playground. It would probably be a good place for gathering as well as providing a play area during raining weather for the Daycare and Pre-School. Jeff would like some feedback whether it is something to pursue or spend our time and effort elsewhere. Council members should talk with congregation members to see what they think.
6) Designating FLCC Sanctuary as a Severe Weather Shelter. Pastor and Jeff met with an organization and the County to discuss the possibility of having the church be a Severe Weather Shelter. We don’t have the right facilities, therefore having people sleep here would not be appropriate. Also having them leave prior to the kids arrival would be difficult. There are shelters available in Bremerton.
B. Pastor’s Report (Pastor Adrian) – Pastor was otherwise engaged.
C. Treasurer’s Report (Nancy) 1) FLCC:
a. General Giving in August was the smallest year-to-date. Looking at Profit and Loss (P&L) records since January 2012 shows $18,224 is the lowest in that time. The biggest decrease was in envelope offering – $4,788 less than the January to July average. If envelope offering continues this trend, we could have serious financial problems.
Question: What is the plan for a stewardship emphasis?
Answer: The Generosity Team met once in July and came up with some good ideas and plans. More to follow.
b. The month-end checking account balance was $7,898 (just $2,930 more than our payroll tax liability) and expenses for the month were slightly lower than average.
c. Accounts Payable on the Balance Sheet remains inaccurate because of posting problems with the broker’s commission for the lease. The correct 31 August amount for accounts payable is $2,733. The commission was fully paid in April.
d. Mortgage: Our new 5-year Adjustable Rate Mortgage (ARM) rate is 3.625% reduced from 5.0%. We have 20 years left on the mortgage. The monthly payment, beginning 01 October, will be $4,960 – a reduction of $622 per month.
2) Ministry Center Lease:
a. The change in our mortgage interest rate does not affect the base rate for the lease. b. We have posted $222 per month as “Repairs, Maintenance, and Landscaping” to the
Ministry Building Expenses. Beginning in September, we will post only “actual” expenses (such a pest control and storm water), not the allowance for landscaping and Paul’s management since those expenses are covered elsewhere. Fred will be able to calculate an appropriate amount for “lease operational costs” when negotiating with Kitsap Mental Health (KMH) in January.
3) Transformational Ministries (TM) Grant:
a. We received $1,500 from the Southwest Washington Synod ELCA in August, in
addition to the monthly $1,250 from Church-wide ELCA.
b. Notice that the special Income and Expenses report now shows the amount of prior
savings applied to current TM expenses. The Year to Date (YTD) August figure is less than reported in July, because of the Synod contribution.
c. It is expected that Lorraine will report the new three-year Transformational Ministry Grant which will begin in February 2017.
4) Noah’s Ark Day Care (NADC):
a. The Daycare continues to prosper, with $35,808 net profit January thru August.
b. At the end of the month, NADC had $20,253 general savings, $155 in the Playground
savings and $61,350 in checking.
5) Noah’s Ark Preschool (NAPS):
a. The Preschool continues to show a profit of $5,921 for January thru August, with a
combined $19,697 in savings and checking at the end of the month.
b. Karen increased tuition for the new school year, and has found that enrollment is not
as robust as last September, though she still has a few parents considering participation.
c. Because of their fragile financial condition a year ago, the 2015-2016 facility use fee
was cut from $460 per month to the current $230.
Motion: Nancy Motioned to have the NAPS facility use fee be set at $460 beginning October 1st, subject to review in January 2017. Sharon seconded the motion. The motion passed unanimously by voice vote.
6) Designated Funds:
a. Flowers – Kelly will review and remind those who have sponsored flowers but haven’t
paid. Gazebo Florists have not sent us a bill, but we should owe for both July and August. The cost of flowers is $30 per Sunday. There is only $99 in the fund – not enough for even one month.
b. Major Maintenance /Roof: We continue to post expenses for small amounts that the Finance Committee feels should be paid by the General Budget, such as paint at $114.18 and mower repair at $205.09 in August.
Question: Shouldn’t “major maintenance” be items like sewer repair or replacing HVAC equipment? Can we establish an understanding that $500 or $1000 should be the usual minimum to be considered “major” maintenance?
Discussion/Answer: By consensus, the Council agreed that Major Maintenance expenses should be for amounts above $500.
c. Vacation Bible School / First Kid – fund balance on 01 July was $1,732.95. All VBS expenses and income were posted to this account:
Total expenses for July and August: $2,542
Total income for July and August: $593
Result: $215.91 fund deficit, which will be covered from Transformational funds. VBS may charge a small registration fee in 2017
Possible that some VBS expenses should be part of the General Budget
d. Endowment: The $11,098.39 endowment is held in the Church Savings account. The savings account currently totals over $31,000 but has earned only $1.97 YTD interest. Only the “income” from the endowment can be used. The Finance committee suggests that we look at other places to put those funds where there will be more income. One possibility is the ELCA’s Mission Investment Fund, which currently pays 1.40% APR on a 2-year fixed term investment. While we save, the money invested is used to fund building and renovation loans for ELCA congregation and ministries. If the endowment were in a 2-year fixed term, it’s income YTD would be $103.58. The Finance Committed was instructed to research investment options for the fund.
e. Refinance Fund: As of September 30, the fund balance will be $9,325. The ARM mortgage rate was adjusted to 3.625% without any fees.
Motion: Nancy motioned we cancel the $150 per month transfer to this account effective October 1. Sharon seconded the motion.
Discussion: What do we want to do with these funds? Apply as additional payment on mortgage principal – would not change the amount of the monthly payment, but would reduce the interest amount charged. Look at capital needs such as parking lot repair/replace. Other ideas? No specific use was designated, therefore the money will remain in the General Fund.
Unanimously approved by voice vote.
f. Discussion regarding what we should do with the Refinance Fun. By consensus the Council approved moving the Refinance Fund to the Designated Funds account, placing it in a new “Parking Lot Fund”
g. Treasurer’s Guide. The Treasurer’s Guide has been submitted to the Council, along with all the suggested revisions. All agreed that the Treasurer’s Guide be accepted for use understanding that it is a “living document”, subject to future changes as needed.
Motion: Nancy motioned the Treasurer’s Guide be accepted & approved by the Council, understanding that it is a “living document”, subject to future changes as needed. Wade seconded the motion. The motion was unanimously approved by voice vote.
D. Transformational Ministry Report (Lorraine). In Lorraine’s absence, Nancy shared information received from Melanie Wallschlaeger, Director of Evangelical Mission in our Synod. Churchwide approved partnership support to FLCC for $45,000 over three years as a continuation of our Transformational Ministry. The annual amounts are $18,000 in 2017, $15,000 in 2018, and $12,000 in 2019. The yearly amounts will be distributed in equal monthly installments starting in February of each year and ending in January of the next year. Additionally the Synod will also provide 10% above those amounts, i.e. $1,800 in 2017, $1,500 in 2018, and $1,200 in 2019.
E. CBA’s Report (Paul).
1) Daycare: Doing well. Really sticking to our guns with staff. Let go a staff member on
Monday. Counting kids is the most important. One kid was left in the parking lot. Teacher was provided a verbal counseling. Teacher was speaking poorly of Bree and verbally counseled. Next day teacher was speaking poorly again of Bree and let go. Kids have to be watched. Drug paraphernalia has been found in the playground. Close monitoring and vigilance by adults is necessary as is a clean-up.
2) In January, the Daycare is voluntarily increasing their facility usage fee from $1125 to $1700 per month.
3) Preschool: Doing well also. Installed one of the new toilets. It is a good step forward.
4) First interfaith meeting with pastors from 8 or 9 other churches. Trying to get an organization that allows contacting all the churches when someone comes in need that is greater than one church can provide.
5) A group left a lot of food on Saturday. A couple came in on Monday and asked for food. We fed them.
6) Sirena is doing well with the bookkeeping. She has prepared written procedures, enabling Kelly to process payroll in Sirena’s absence.
5. OLD BUSINESS: (Jeff)
A. Council Terms Discussion. (to be discussed when appropriate from the Audit)
6. NEW BUSINESS: (Jeff)
Over the next several months, Wade will be conducting an Audit of the Constitution, Bylaws,
and Council Policies to see what we are not doing that we should be doing and what we are doing that maybe we should not be doing.
7. FOR THE GOOD OF THE ORDER: (Jeff)
A. Just passed year number two of the lease of the ministry center. $4,092 per month. As
KMH needs to provide at least 180 days advance notice if they plan to vacate, they need to let us know in March. They can renew for another three years. If they choose not to renew, we will need to start searching for a new tenant in August.
Question: How are minutes posted and saved?
Discussion: Wade saves the minutes electronically. There should be a paper copy available in the church. Wade will email Kelly the minutes after they are approved for her to put in the book. Pastor posts the minutes on the website. Wade will email the Pastor the minutes after they are approved for him to post.
B. Filling Brad’s position. Discussed that the council was required to fill the position by simple vote within Council. People will ask previous council members if any of them are willing to fill the reminder of Brad’s term (until June 2017).
C. Discussed a possible retreat to Seabeck in November. Jeff will look at dates and try to schedule it.
8. ADJOURNMENT: (Jeff)
9. NEXT MEETING IS SCHEDULED FOR 20 OCTOBER 2016