The regular meeting of the Vestry of St. John’s Church, Elizabeth City Parish, Hampton, Virginia, was held at the parish house on October 5, 2004 at 7:00 p.m. The Reverend Donna-Mae Siderius, Rector, presided.
Vestry members present were William Andrews, Greg Brauer, Linda Curtis – Senior Warden, Nelson Durden, Frank Edgar, Sr. – Junior Warden, Peggy Hayes, Bob Harper, Bill Kirkland, Vestal Lewis, Denine Miller, Kay Olson, Elizabeth Phillips, Jim Shoemaker and Sandy Smith-Registrar. Bill Forinash was absent. Also present were Connie Heath, Treasurer and Charles Edmonson, Chairman of the Finance Committee.
Reverend Donna-Mae Siderius opened the meeting at 7:05 p.m. with the Litany for the Church. Devotions were given by Frank Edgar, Sr.
Minutes
The minutes from the September 7 meeting were approved as presented. Sandy Smith clarified that the name of the Edward L. and Mary B. Williams Foundation was recorded correctly in the July minutes and therefore those minutes had been correctly presented.
Action: Minutes of the September 7 meeting were approved.
Treasurer’s Report
Connie Heath reported that after signing checks this date, the balance in the checking account was $2,088.08. Connie distributed and discussed the Income/Expense Statement for September and the reports related to the Special Accounts and Designated Offerings. September income was $29,437.00. September expenses were $30,659.16. With 75% of the year complete, we have received 68.21 % of the pledged income. The “non-pledged, but paid” portion of our budget is behind, at 57.68%. Connie expects that this group of individuals will “catch up” by the end of the year, because some parishioners pay annually.
During a discussion of the Special Accounts Report, Connie reported that the Hoffman House account had received $20,000 from the Edward L. and Mary B. Williams Foundation, hereafter known as the Foundation, for repayment of part of the deposit on the kitchen equipment. The Hoffman House account also had two $5,000 withdrawals in September, as previously approved by the Vestry, to meet general operating expenses. The Parish Improvement fund received $6,000 from the General Fund. This is money received from the Endowment Fund to pay for our signs. This money had been originally deposited into the General Fund because it was expected that the bill would be immediately presented for payment. However, that did not happen, so the money was transferred in September, for payment from the appropriate special account.
At the last Vestry meeting, there was some confusion over the amount of money withdrawn from the Hoffman House account to pay the deposit on the kitchen equipment. Connie reported that in July, $29,600.00 was taken from the Hoffman House account and $1,006.59 was taken from the Parish Improvement fund, for a total of $30,606.59, to pay the deposit on the kitchen equipment. The Foundation has repaid $20,000 of the $29,600 to the Hoffman House account. In October, the Endowment Fund will repay the remaining $9,600.00 to the Hoffman House account. The Endowment Fund will also repay the $1,006.59 to the Parish Improvement fund.
Connie reported that if we do not receive $4,000 on Sunday, October 10, she would not be able to make the payroll. Kay Olson made a motion that we authorize Connie to take up to $5,000 from the Hoffman House account, if needed, for general operating expenses, to be repaid by the end of the year. The motion was seconded by Nelson Durden and unanimously approved by the Vestry. Jim Shoemaker asked for the minutes to reflect that the Vestry has authorized a total of $15,000 this year to be taken from the Hoffman House account, all of which must be repaid by December 31, 2004.
Action: Vestry authorized Connie Heath to withdraw up to $5,000, as necessary, from the Hoffman House account to cover general operating expenses.
Line of Credit
Frank Edgar, Sr., asked the Vestry to reconsider the originally approved distribution of funds from our Line of Credit. We originally authorized $400,000 for renovations to the parish house and $200,000 for renovations to the church building. Frank reported that we have spent $241,167 of the $400,000 on the parish house but nothing from the $200,000 for the church. Frank provided a listing of conservative estimates of anticipated expenses, totaling $317,600, for continuing renovation of the parish house. Frank reported that the Trustees of the Foundation had been contacted and were in agreement regarding the need to change the original distribution of funds from the Line of Credit. Frank Edgar, Sr. made a motion that we redesignate the $200,000 from the Line of Credit, originally designated for renovations to the church building, to renovations for the parish house. Nelson Durden seconded the motion. This allows for the total Line of Credit of $600,000 to be used for renovations to the parish house. There was discussion regarding how we planned to pay the interest on this loan. Frank reported that the interest of approximately $25,000 had been budgeted by the Finance Committee and would be an item for discussion later in the meeting. Nelson Durden asked if the proposed list of items would be covered by the Foundation. Frank reported that they would. There were also questions regarding what will happen next year when we need to begin renovation on the church building. Frank reported that we may need another Line of Credit at that time. Frank reminded the Vestry that a $250,000 payment toward the Line of Credit is due from the Foundation in January. The Trustees of the Foundation are basically guaranteeing the loan. The motion was unanimously passed by the Vestry.
Action: Vestry approved redesignation of $200,000 from the Line of Credit for renovations to the church building to renovations for the parish house, for a total of $600,000 for parish house renovations.
Junior Warden’s Report
Frank Edgar, Sr. reported on the status of the parish house renovations. We have received all permits necessary for the kitchen renovation and the electrical work has begun. The plumbers are coming this week. The floor in the parish hall was laid today. One more coat of paint is needed. Frank hopes the parish hall will be ready by Thanksgiving.
Report on the Hampton History Museum
As a follow-up to discussion at the September Vestry meeting, Nelson Durden reported that he had a discussion with Jim Holloman of the Hampton History Museum regarding the omission of the history of St. John’s. Nelson reported that Mr. Holloman is receptive to a meeting to discuss a St. John’s exhibit. There are questions to be answered, such as What do we want to exhibit? and Do we want a permanent display? It was recommended that we have a group pursue this in more detail. It was felt that Beverly Gundry should definitely be a member. Frank Edgar, Sr. volunteered to organize a committee. Greg Brauer volunteered to serve. Sandy Smith reported that the Vestry had received an email from Pamela Martin regarding this issue and felt that Pamela should be considered. The Vestry also recommended Elizabeth Brauer as she had originally brought this issue to the Vestry’s attention. Nelson felt that we needed to get something to Mr. Holloman shortly to show our interest. The Vestry decided that a letter would be sent explaining that we were forming a committee to discuss our involvement with the museum.
Rector’s Report
Donna-Mae Siderius reminded the Vestry of our Vision Mission Planning meeting on November 5 & 6 at the home of Peggy Hayes. The meeting will be from 7-9 p.m. on Friday and from 9 a.m. to 3:00 p.m. on Saturday. Individuals are on their own for dinner on Friday. Lunch on Saturday will be potluck. Nelson Durden and Elizabeth Phillips reported that they will not be able to attend.
Donna-Mae reported on the Empower Hampton Roads organization. Affordable housing has been identified as an issue for discussion. St. John’s needs to be at the table to have a voice. David and Susan Copley will attend a meeting on Thursday, October 7. We will discuss our involvement with this group after a report by the Copleys.
Stewardship
Donna-Mae reported that Bob Harper has agreed to chair the Stewardship Committee. He has energy, optimism, and faith in this parish. Bob told the Vestry that he was honored and privileged to serve and thanked Jim Shoemaker for the great job he did last year. Bob stated that the Stewardship campaign will be a committee effort. The challenges that we face are attainable. If we want to move forward, we must step up as leaders of the church. Bob told the Vestry that this is an exciting time for us. If the Vestry is not on board, then nothing will happen. We need to be together. Bob stated that we will know where we stand financially by mid-December. The Stewardship Steering Committee will meet on Wednesday, October 6.
Presentation of Draft 2005 Budget
Donna-Mae reported that Charles Edmonson, Chairman of the Finance Committee, would present the proposed draft 2005 budget. Donna-Mae told Vestry that she planned to offer some remarks and then leave the meeting so the Vestry could openly discuss the proposed budget, leaving Linda Curtis, as Senior Warden, in charge. Donna-Mae stated that the budget must be fully supported and committed to by the Vestry.
Charles Edmonson distributed the Proposed Operating Budget for 2005 in the amount of $539,130.00. An increase of $124,000 in pledges is needed to meet the proposed expenditures. Charles distributed an informational sheet regarding the number of current pledges and the increases needed to meet the $124,000 in increased pledged income required. Based on the current 170 pledge units giving an average of $2,114.00 per year, pledges from this group must increase by $727 or 34 percent. However, if the number of pledge units increases, or the proposed budget is decreased by the Vestry, the amount of the increase needed per pledge unit would decrease. The budget includes funding for two new programs, Journey to Adulthood (J2A) pilgrimage and a mission trip to Belize. The budget also includes salaries for the Copleys at a position and a half, and a cost of living increase for staff and clergy. Interest of $25,000 on the Line of Credit has been budgeted, but there is a suggestion from the Finance Committee that the Vestry consider paying this amount from the Hoffman House account. The Hoffman House account should have sufficient funds to cover this expense, but does need to maintain a balance of about $10,000 to cover unanticipated repairs. Charles reported that this is an aggressive budget that incorporates the items the Vestry requested. Greg Brauer asked where we stand with membership? Donna-Mae reported that we are fairly stable, with a balance between loss of parishioners due to death and moves and an influx of new families. Twenty-three pledging units currently contribute $148,500.
Donna-Mae offered the following remarks. This is an aggressive budget that recognizes increased maintenance costs. She believes there is a good team in place now, with increased energy. It is stretching to go for 1 ½ positions, but she reminded us that we, as a Vestry, had unanimously voted to do what we could to offer the Copleys a chance to stay at St. John’s. Most pledges are in the 1-2% of income range. Vestry received in their mailbox today a request from Harper Lewis for a salary increase due to an increase in responsibilities. She is one of the lower paid Parish Administrators in our diocese as is Kathy Dansey, director of Christian Education. Vestry also received a comparison of salaries in the diocese for this position. Donna-Mae stated that staff are the first line people and that parishioners and visitors feel the energy from that. Donna-Mae also stated that we must keep the parish house decent once we get it back. Parishioners expect a high level of service. Regarding J2A, there were 32 youth at the last EYC meeting. The increase in attendance is due to the leadership of Susan Copley, Harper Lewis, the Templemans and the Olsons. J2A focuses on ongoing spiritual growth. The youth are hoping to raise money for their pilgrimage to supplement what is budgeted. Mission is part of Donna-Mae’s vision for us as a parish. It is not just about going to another country and giving money; it is about building relationships with people. One of the ways to stretch ourselves is to look at mission in different ways. Regarding the interest on the loan, we are fortunate to have $250,000 a year from the Foundation to cover our renovation costs and to not have to hold a capital campaign. The $25,000 interest is a small amount to pay in comparison. Donna-Mae told us that we can do this if we have the will to do this. With an increase of 3-6% of income pledged versus 1-2%, we will be well on our way. The Vestry has to feel the way we need to go. This must be our budget.
Before Donna-Mae left, she reported that Bishop Gallagher’s visit scheduled for October 7 had been canceled. A Foundations course will begin in November for those interested in confirmation.
After a short break, Linda Curtis reconvened the meeting and called us to order. Charles Edmonson reported on the meetings held by the Finance Committee where the proposed budget was developed. Several Vestry members are also members of Finance. Charles reported on the various options that Finance had considered, such as temporary staff salary reductions for six months, no salary increases, putting a hold on the hiring of a new sexton for six months, retiring Willie, and no clergy assistants. There is not much wiggle room in the operating expenses. The price of oil is increasing. We are locked in to certain large expenses, such as the telephone and the copier rental. Charles reported that everything was on the table during the discussions. Charles then reviewed the proposed budget.
During the discussion, Elizabeth Phillips reminded us that we cannot assume that individuals are not giving all they can to St. John’s. There may be individuals who give a great deal of money to other charitable organizations, such as HELP. Bob Harper commented on the cost of living increases. He reminded us that the church is a people business and that we must honor the people who work for us. Not giving a cost of living raise does not send a good message. Connie Heath also reminded us that stewardship is not just about money, but about time, talent and treasure. There are many parishioners who volunteer, and serve as ushers and acolytes, and their time is part of stewardship.
Before the Vestry discussed the proposed request for a salary increase from Harper Lewis, Vestry member Vestal Lewis excused himself from the discussion. Sandy Smith reported that the request had not been presented to the Finance Committee and had just been given to the Vestry this evening. The request was not specific but did include a detailed job description. The information provided by Kathy Dansey was vague, including a salary comparison across the diocese, but no formal request for action. Discussion ensued about the timing of the request and the impact on the budget before the Vestry. Frank Edgar, Sr. made a motion that the requests from Harper Lewis and Kathy Dansey be given to the Finance Committee for consideration once the final pledge numbers are known. The motion was seconded by Peggy Hayes and unanimously approved by the Vestry.
Action: Requests for salary increases from Harper Lewis and Kathy Dansey will be presented to the Finance Committee for consideration after the final number of pledges are known.
Discussion then reverted back to the proposed budget. Bob Harper stated we needed an approved budget in order for Stewardship to go forward. Peggy Hayes was concerned about voting on the proposed budget before we know how much money we will have. Charles clarified that this is a proposed budget versus an asking budget. There was additional discussion regarding staff salaries in general, how to make the congregation part of the process, publicizing the budget, developing a booklet of the various funding sources, postponing the mission trip for a year, having one of the Copleys act as assistant rector and director of Christian Education, percentage of salaries in comparison to programs, cost of the sexton and what to do about Willie.
It was felt that we have to communicate our needs to the congregation; they can’t understand if they don’t hear about it. This budget is a stretch budget, but achievable. If we say we can’t come up with the money, we won’t. We need to give the budget to the congregation and let them vote with their pledges. Linda Curtis stated that we have to sell this to the congregation with real examples, such as not eating out one meal and adding that cost to one’s pledge. We need to come out of this meeting believing that we have done the right thing and that we can sell this to the congregation.
Frank Edgar, Sr. made a motion that we amend the proposed budget of $539,130.00 to reflect a reduction in the cost of the new sexton position from $30,000 to $20,000. Vestal Lewis seconded the motion. The Vestry unanimously approved the motion. Kay Olson made a motion to accept the proposed 2005 budget, as amended. The motion was seconded by Nelson Durden. The motion was unanimously approved. The Vestry thanked Charles Edmonson and the Finance Committee for all their hard work. The real work of the Stewardship Steering Committee, under the leadership of Bob Harper, will now begin.
Action: Vestry voted unanimously to accept the proposed 2005 budget, as amended, to reflect a reduction in the cost of the new sexton position from $30,000 to $20,000.
Good of the Order
Elizabeth Phillips reported that the Policy and Procedures Committee that she chairs has recommended the establishment of a permanent Facilities Committee. A new policies and procedures manual has been created. Elizabeth will provide a detailed report at the November Vestry meeting.
Kay Olson reported that Episcopal Life distributes dolls to children in war-torn countries. Kay is making dolls for this effort and invited others to join her. Elizabeth Phillips suggested that this project be referred to the Outreach Committee for consideration.
Bill Kirkland complimented the Sunday School leaders for the incredible work they do and asked that Vestry take time to thank individuals and show our appreciation.
Tacky Light Award
The presentation of the Tacky Light Award was eagerly anticipated, since there was no award given at the September meeting. Elizabeth Phillips passed the award to William (Andy) Andrews.
The meeting was adjourned with prayer by Linda Curtis at 9:20 p.m.
The next Vestry meeting is November 2. Vestal Lewis is responsible for devotions and snacks. Sandy Smith Registrar