The regular meeting of the Vestry of St. John’s Church, Elizabeth City Parish, Hampton, Virginia, was held at the parish house on January 4, 2005 at 7:00 p.m. The Reverend Donna-Mae Siderius, Rector, presided. Vestry members present were Greg Brauer, Linda Curtis-Senior Warden, Nelson Durden, Frank Edgar, Sr.-Junior Warden, Bill Forinash, Bob Harper, Peggy Hayes, Vestal Lewis, Denine Miller, Kay Olson, Elizabeth Phillips, Jim Shoemaker, and Sandy Smith-Registrar. Absent were William Andrews and Bill Kirkland. Also present were Bill Boyer, Jr.-Financial Administrator and Connie Heath-Treasurer.
Donna-Mae Siderius opened the meeting with prayer at 7:10 p.m. Sandy Smith provided devotions related to the Epiphany season.
Minutes
Frank Edgar, Sr. moved that the minutes from the December 7 Vestry meeting be approved as presented. The motion was seconded by Denine Miller and unanimously approved by the Vestry.
Action: The minutes from the December 7 Vestry meeting were approved as presented.
Treasurer’s Report
Connie Heath reviewed the Income/Expense Statement, Special Accounts Report and the Designated Offerings Report. Connie reported a checking account balance of $26,545.15. December income was $57,930.49 and December expenses were $32,782.59. Connie reported that we finished the year receiving 99.98% of our budgeted income. The “non-pledged, but paid” income and the plate income received for 2004 were both higher than budgeted. Connie reported that a few parishioners did not fulfill their pledges. The pledged amount received for 2004 was 96.44% of what was budgeted. Generally, about 2% of pledged income is not received. Connie reported that to date, we have also received $17,000 in pre-paid pledges for 2005. Connie also reported that the Refurbishing Account has received an additional $585.00.
Bill Boyer, Jr. reported that all of our 2004 expenses were paid from 2004 income, including repayment of the $10,000 borrowed from the Hoffman House account. Bill stated that the congregation is to be congratulated for keeping up their pledges.
Donna-Mae Siderius distributed an article, “Ten Financial Stewardship Tips” from The Parish Paper. She asked the Vestry to read this article and to pay particular attention to tip number eight, which addresses the cyclical nature of church budgeting. She also asked us to especially note tips number four and five.
Stewardship
Bob Harper reported on the Stewardship Campaign. We have 169 pledges totaling $369,753.00. Seventeen people who pledged in 2004 have not pledged for 2005. Bob will call each of them. Bob expects another $25,000 in pledges from this group. He stated we should reach about $400,000. Bob felt reasonably confident that we will be able to go forward with our existing budget. Donna-Mae felt that the numbers were encouraging but that we may have to take a faith risk to fund our ministries.
Budget Discussion
Bill Boyer, Jr. discussed our budget situation. He explained the cyclical nature of church giving. For 2004, we had a shortfall in October, but then we received an influx of money in November and December. We bridged the gap in income by borrowing from the Hoffman House account and utilizing pre-paid pledge money. Because our projected income for 2005 is not enough to meet our budgeted expenses, Bill looked at our existing budget and suggested that we (1) increase the “non-pledged, but paid” income to $40,000, (2) factor in $5,000 for 2004 pledges received in 2005 and (3) factor in $21,000 for pre-paid pledges for 2006. Bill projected a total income of $486,000 counting the existing pledged amount, the amount expected from the 17 pledge units and the above suggestions. However, we would still be about $43,000 short to meet budgeted expenses. To meet these expenses, Bill recommended that we (1) not hire a new sexton, which would reduce our budgeted expenses by $20,000 and (2) remove the $25,000 interest payment due on the line of credit from the budget. Not hiring the sexton will require us to increase our current cleaning services and use volunteers. If we remove the interest payment from the budget, the Vestry will have to consider using the Hoffman House account to bridge the gap by paying the interest due on our line of credit. Bill reported that the general fund can handle the interest payments through April, but that the Hoffman House account may have to be used after that. Bill stated that if we make these two changes in the budget, then we will be able to fund everything else in the budget.
There was discussion about the Vestry’s desire to have a balanced budget and how these budget recommendations factor into that desire. Donna-Mae Siderius reported that there is no requirement to have a balanced budget. The Vestry was reminded that because the projected income is not what we expected, the Finance Committee will be asked to present a revised budget to the Vestry, but it is the Vestry’s responsibility to give direction to the Finance Committee. Sandy Smith stated that the Finance Committee’s next regularly scheduled meeting is January 19, after the Annual Meeting. She asked what the congregation would be told about the budget during the Annual Meeting on January 16. Donna-Mae responded that we would tell the congregation that pledges did not come in as expected and that the budget had been referred back to the Finance Committee for revision.
Discussion next focused on the issue of using the Hoffman House account to pay the interest due on our line of credit. Bill Boyer reminded us that the interest will be higher this year and will decrease as the principal is repaid. Several Vestry members expressed concern over using the Hoffman House account, especially since the Vestry had previously felt that the interest payment should be included in the budget as an expenditure to be paid for by the congregation. Jim Shoemaker suggested that the Vestry develop some written guidance on how to “police” the Hoffman House account. He reminded us that the primary purpose of that account is to service the debt on the Hoffman House loan, which the Endowment Board had recently renewed. Jim suggested that the Vestry needs to determine how we want to use the Hoffman House account and that we need to obtain the agreement of the Endowment Board. The following use of the Hoffman House account was suggested by Donna-Mae Siderius: (1) pay interest on Hoffman House loan to the Endowment Board, (2) service the debt on our line of credit, and (3) use as a bridge loan, with Vestry approval, for general budget shortfalls. There was general concern that if we have to borrow from the Hoffman House account to make payroll, as we did in 2004, that there might not be enough money remaining to pay the interest on the loan. Frank Edgar, Sr. reminded us that if we have to make emergency repairs in the church building, we might not have the Hoffman House money to use if we use it for other things. Connie Heath expressed concern that using the Hoffman House account for general budget items might deplete the account to the point that there might not be money available in the account for unanticipated repairs to the Hoffman House, which would negatively impact the tenants. It was the consensus of the Vestry that the recommendations outlined by Bill Boyer, Jr. be submitted to the Finance Committee for consideration in the revision of the budget. There were no motions regarding these suggestions or the criteria for use of the Hoffman House account.
Action: The Finance Committee will be asked to present a revised operating budget for 2005, taking into consideration the following two suggestions: (1) we not hire a new sexton for 2005 and (2) we use the Hoffman House account to pay the interest due on the line of credit.
Connie Heath reported that she had received a notice from the real estate agent managing the Hoffman House asking if we wanted to raise the rent. Connie stated that one tenant has an automatic escalator clause in their lease. The other leases are due for renewal. Frank Edgar, Sr. asked if we knew what the going rate for rentals is in the downtown area. Connie stated that the real estate agent had provided this information in the past, but it was not included in the notice she received. Donna-Mae Siderius asked Bill Boyer, Jr. and Connie Heath to meet with the real estate agent to determine a fair market rental amount and to report back to the Vestry at our next meeting with a recommendation.
Action: Bill Boyer, Jr. and Connie Heath will meet with the real estate agent for the Hoffman House to determine a fair market rental amount for tenants in the Hoffman House and will report to the Vestry at the February meeting.
Donna-Mae Siderius distributed a handout regarding payment of our line of credit and two proposals for future renovations. The Vestry previously voted to reallocate $200,000 from the original $600,000 line of credit (LOC) for renovations on the church building to renovations on the parish house. The Vestry then voted in December to increase the LOC from $600,000 to $800,000. The balance in the LOC at the end of December was $184,099, which reflects payment to the W.M. Jordan Company for November and December expenses. Estimated expenses for January 2005 are $143,000. The balance on the LOC will be $41,099. The debt load on the LOC is $758,901.00. We are expecting $250,000 from the Edward L. and Mary B.Williams Foundation this month, which will be used to pay down the LOC, reducing the debt load to $508,901.00, with $291,099 available in the LOC.
Donna-Mae Siderius presented two options for consideration by the Vestry regarding continuing renovations to the parish house and anticipated renovations to the church building. Option #1 – Complete the parish house and pay down the LOC with the $250,000 anticipated yearly payment from the Williams Foundation, with the parish responsible for the interest on the debt load. Interest over 3 years expected to be $57,500. Begin renovations on the church building in 2007. Use 2005-2006 to develop a plan and determine necessary resources. Option #2 – Complete the renovations on the parish house and move to the church building. Expenses estimated at $900,000. This would require an increase in the LOC to $1,000,000 and payment of the annual $250,000 from the Williams Foundation against the LOC until 2011. Interest over six years expected to be $272, 500. We would not be able to pay this amount without a Capital Campaign. Donna-Mae stated that she prefers Option #1. Almost the entire time she has been here, she has been focused on buildings. The congregation has been subjected to confusion and chaos. Donna-Mae feels we need 2005 to “regroup”; to learn how to use our newly renovated space. We need to concentrate on our spiritual journey. In 2006, we need to begin planning for the renovations to the church building. We need to determine what the Williams Foundation will cover, what the Endowment Board may cover, and what the congregation is willing to fund. In 2007, we can determine if we need to increase the LOC to begin the church renovations. The renovations should be complete by 2009, which will allow us to be ready for our 400th anniversary celebration in 2010. Linda Curtis asked if there were any immediate repairs in the church building that we need to address. We had previously discussed water damage in the Sacristy. Donna-Mae stated that the leak had been stopped and some cosmetic repairs were needed, but nothing major. Frank Edgar, Sr. felt that we should pay to get the Sacristy fixed. There was also some concern that the renovations in the church might not be finished by 2010. Jim Shoemaker moved that the Vestry accept Option #1 as presented, with the exception of urgent repairs to the church building. Nelson Durden seconded the motion. The Vestry unanimously approved the motion. Donna-Mae will present our plan and a timeline to the congregation at the Annual Meeting on January 16.
Action: Renovations on the church building, with the exception of urgent repairs, will not begin until 2007. During 2005 and 2006 we will plan for the renovation and determine the funding needed.
Electronic Payments
The Vestry had been asked to review the document prepared by Charles Edmonson on the use of electronic pledge payments. Sandy Smith requested that the Vestry address the options presented. The first option allows for automatic debit of a parishioner’s bank account to make a pledge payment. There will be some bank fees associated with this option. The second option allows for parishioners who use automatic “bill paying” to pay St. John’s as any other recurring bill. There is no cost to St. John’s for this option. It was the consensus of the Vestry that the “bill paying” option was the best choice at this time, especially since there is no cost involved. Bill Boyer, Jr. will write an article for the next Epistle regarding this option and what parishioners need to do.
Action: Bill Boyer, Jr. will provide an article in the next Epistle regarding how parishioners who use some form of “bill pay” can utilize this method to pay their pledges.
Junior Warden’s Report
Frank Edgar, Sr. reported on the status of the parish hall renovations. The Jordan Company hopes to be finished by the end of January. The new kitchen equipment is due to arrive this week and installation will begin at that time. Elizabeth Phillips asked how long the installation will take. Frank did not know. Donna-Mae Siderius reminded us that Bishop Gallagher will be here for Confirmation on Sunday, January 30 at 4:00 p.m. If the kitchen is finished, we plan to have a Rededication Dinner after that service. Donna-Mae stated that Vestry members will be needed to help unload our storage unit and get the kitchen restocked. Elizabeth was concerned that there might not be enough time to get the kitchen back together and to properly test the new equipment before the dinner. Frank reported that the installation of the windows is 99% complete. The air conditioners are in, but duct work was needed in the handicap bathroom and Kathy Dansey’s office. The outside of the building still needs to be painted. Frank reported that he is still trying to sell the old kitchen equipment. The refrigerator had to be repaired. David Copley is taking the old tables to Grace Church in Newport News to get them out of the way. Parishioners are welcome to take them if they go to Grace to get them. We have 75 new chairs coming. Elizabeth Phillips stated that we probably need to purchase 10 more tables, since the tables only sit eight individuals comfortably. We currently have 20 tables, which will seat 160. Donna-Mae Siderius felt we should purchase additional tables and felt that the Perpetual Honor Memorial account could fund the purchase.
Action: Ten tables will be purchased for the parish hall, with funding from the Perpetual Honor Memorial Account.
Greg Brauer reminded the Vestry that the Public Address system still needs to be reinstalled. The person Greg planned to contact regarding the installation has been in the hospital so the system will not be reinstalled prior to the annual meeting. However, Greg stated he would have some type of sound system available.
Action: Greg Brauer will install a temporary sound system for the annual meeting on January 16.
Bill Forinash offered to help with the reinstallation of the clock and other items in the parish hall. Donna-Mae stated that the Refurbishing Committee will be responsible for this function when the parish hall renovations are finished.
Donna-Mae thanked Frank Edgar, Sr. and Bill Terrill again for their continuing work with the Jordan Company on the parish hall renovations.
Annual Meeting
Donna-Mae Siderius reported on the agenda for the Annual Meeting on January 16. The Journey to Adulthood (J2A) Program will be highlighted, with the presentation to be made by the youth involved in this program. Vestry elections will held. There are five vacancies to be filled. We have received four nominations so far – Connie Heath, Sanford Pankin, Bettyrene Pope, and Bill Terrill. Final nominations are due by Sunday, January 9. Each nominee will be allotted two minutes at the meeting to speak about why they want to serve. Biographies will be available at the meeting.
Vestry orientation is Wednesday, January 12, beginning at 7:00 p.m. All Vestry members are expected to attend. Donna-Mae requested that retiring Vestry members return their Vestry Resource Guides to her. The new Vestry will be commissioned on Sunday, January 23, at both services, depending on which service the newly elected member attends.
Senior Warden’s Report
Linda Curtis reported that she had received a letter from David Edmonson thanking the Vestry for the funding he received from St. John’s for his mission trip. Elizabeth Phillips stated that the $100 contribution was paid from the Parish Connections account. She requested a copy of the letter so she could share it with that group.
Rector’s Report
Donna-Mae asked the Vestry to send a thank you note to the staff for continuing to work faithfully during the renovation process. The staff continued to fulfill its ministry and obligations during a chaotic time. Linda Curtis volunteered to write the letter.
Action: Linda Curtis will send a letter to the staff of St. John’s thanking them for their dedication during the renovation of the parish house.
Confirmation is Sunday, January 30 at 4:00 p.m. with Bishop Gallagher. Five individuals will be confirmed and there will be one reception. Donna-Mae asked if the Vestry wanted to meet with the Bishop prior to the confirmation service. The Vestry decided to meet with the Bishop from 2:30-3:30, depending on the Bishop’s schedule.
Action: The Vestry will meet with Bishop Gallagher on Sunday, January 30, prior to the Confirmation service, from 2:30-3:30, depending on the Bishop’s schedule.
Donna-Mae reported that Charles Pfeiffer, Diocesan Treasurer, will be resigning after Annual Council, which is February 11-15. The Diocese has formed an Accountability Committee to track the action items in the Diocesan Organization Committee Report and a Negotiating Committee to deal with what will happen next.
Donna-Mae asked for a few Vestry volunteers to help her develop a policy manual for staff, regarding such items as sick leave and vacation, utilizing guidance provided by the National Church. Linda Curtis and Frank Edgar, Sr. volunteered.
Action: Linda Curtis and Frank Edgar, Sr. will work with Donna-Mae Siderius to draft a policy manual for St. John’s staff.
Donna-Mae reported that Harper Lewis, parish administrator, had her purse stolen today from her office in the parish hall. Because Harper had the keys to the parish house and the church in her purse, the Vestry needs to discuss replacing all the locks as well as general security issues. It was the consensus of the Vestry that all the locks in the parish house and the church building need to be rekeyed. In addition, all individuals who currently have keys will need new ones.
Vestal Lewis asked if we needed to reconsider locking our doors. It is believed that St. John’s is the only downtown church that is not locked during the day. Donna-Mae felt that St. John’s should remain open, but she had some suggestions to help make the parish house safer. Donna-Mae requested replacement of the locking system on the doors with push bars. Frank Edgar, Sr. stated the doors work properly and did not need to be replaced. He offered to demonstrate the correct operation to Donna-Mae after the meeting. Donna-Mae also requested installation of a video monitoring system at each door, so persons coming and going from the building can be seen. Bob Harper moved that the Vestry authorize the Junior Warden to have the monitoring system installed. The motion was seconded by Peggy Hayes. Several suggestions were made during the discussion of the motion. Kay Olson and Elizabeth Phillips suggested the installation of some type of beeper or buzzer system on each of the doors. Bob Harper suggested that we have a security assessment made of our vulnerability. Greg Brauer stated that our current security company should be able to provide this service. Vestal Lewis reported that the Police Department offers free security assessments to home owners and suggested we ask for their assistance. Sandy Smith suggested that staff should minimize the opportunity for theft by locking up valuables in desks or file cabinets. After the discussion, Bob Harper withdrew his motion to authorize the Junior Warden to have a video monitoring system installed. Instead, the Vestry felt that our current security company should be contacted to perform an assessment of our security needs now that the parish hall is almost complete. Linda Curtis stated she would ask the Police Department to also provide an assessment.
Action: The company currently handling our security will be asked to provide an assessment of our vulnerability. Linda Curtis will ask the Police Department to also provide a security assessment.
Donna-Mae distributed a handout of newcomers and the Vestry Care Team to which they have been added. The Vestry was reminded to invite newcomers to committee meetings and other parish functions. Revised Vestry Care Team listings will be provided when the new Vestry convenes.
Donna-Mae requested that retiring Vestry members, Frank Edgar, Sr., Bill Kirkland, Denine Miller, Elizabeth Phillips, and Jim Shoemaker attend the February Vestry meeting. This meeting will include both retiring and new Vestry members.
Donna-Mae distributed a letter she had received from the Todi Music Fest and a letter that John Siderius had received from The American Guild of Organists. The Todi Music Fest is interested in using St. John’s for a concert in July 2005. The American Guild of Organists requested the use of our sanctuary and organ for their Pipe Organ Encounter in late June and early July 2005. There is no expense to St. John’s for either request. It was the consensus of the Vestry that both of these requests are a great opportunity to showcase St. John’s and that John Siderius should respond favorably to each of them.
Action: John Siderius will be asked to respond to letters from the Todi Music Fest and The American Guild of Organists.
Other Business
The Vestry had received a letter from Elizabeth and Harrol Brauer, Jr. regarding the Vestry’s recent decision regarding the inclusion of the history of St. John’s in the Hampton History Museum. The Brauers requested that the Vestry reconsider its decision and allow time for other suggestions. Several members of the Vestry thought that Jim Tormey, who provided the proposals on which we voted in December, was speaking on behalf of a committee that had been formed at the request of the Vestry. Donna-Mae took responsibility for the misunderstanding. She stated that she had called together a small committee, which included Jim Tormey and Beverly Gundry, to discuss the relocation of the St. John’s Museum. During this meeting, Jim Tormey offered suggestions for the inclusion of St. John’s history in the Hampton History Museum. Donna-Mae stated that she did not have the benefit of the minutes to remind her that the Vestry had authorized the formation of a committee to formulate a proposal. Donna-Mae apologized for jumping ahead. It was the consensus of the Vestry that the committee we originally suggested convene and that all suggestions for inclusion of our history in the Hampton History Museum be considered. Donna-Mae asked Greg Brauer to work with Frank Edgar, Sr. to get the committee together and to report back to the Vestry. Sandy Smith reminded the Vestry that she had been asked to send a letter to the Hampton History Museum regarding our decision, but that she had not done so in light of the Brauer’s letter. The Registrar will send a letter when a final decision has been made.
Good of the Order
Bob Harper reported that partnering with Bethel AME Church on A Night’s Welcome was a good experience. Bob encouraged us to find ways to continue to work with the downtown churches. Elizabeth Phillips suggested rotation of the Christmas Day service among the downtown churches. Donna-Mae stated this had been discussed.
Tacky Light Award
Frank Edgar, Sr. passed the Tacky Light Award to Elizabeth Phillips, stating it was not hard to pick the person, but it was hard to pick the right “tacky light”.
Donna-Mae Siderius closed the meeting with prayer at 9:25 p.m.
The next Vestry meeting will be Tuesday, February 1. Denine Miller will provide devotions and snacks.
Sandy Smith
Registrar