Bethel Lutheran Church, Cupertino, California
Minutes recorded by Davis Fields
Opening: Meeting called to order at 1:08pm. Pastor Jim provided a devotion on the topic of
change, based on Romans 12:1-2.
Quorum: 101 members signed in for the meeting. (79 people were
sufficient for a quorum.)
Minutes: Motion made and seconded to approve the minutes of
the January 26, 2003 congregational meeting. Minutes approved.
Stewardship report: Peter Marshall gave a report on
the results of our stewardship efforts. The economy is an obvious challenge,
and weÕve also had people retire ands/or leave the area during the last year.
Right now we have on hand pledges for about $742k, which appears consistent
with our proposed budget. As of today, $68,000 has been pledged toward the
Visual Connection effort, and Peter is following up with the people who pledged
but have not yet provided their gifts.
School
report: School board president Jack Wedgwood made a school overview
and budget presentation. He asked Alice Isaacson, school board member and
school parent, to review the playground renovations now underway. She described
how the preschool and elementary play structures are being replaced, in order to
meet new safety requirements and provide the best play experiences for our
school and church children. Two grants from the Packard Foundation made it
possible to do this work without spending parentsÕ tuition money. The equipment
we replaced is going to a playground in Mexicali, Mexico.
Jack presented a school budget for the new fiscal year,
showing income of $1,720k and expenses of $1,719k (with a surplus of $584, this
is essentially a break-even budget). As always, the budget assumes a certain
level of enrollment, but so far our enrollment status is good. If it falls
short by the time school begins, the school board will revisit and possibly
revise its budget. The proposed budget includes funds for modest raises for our
teachers and staff, but these will not be granted until enrollment is final. A
motion to accept the school budget was made, seconded and passed by a vote of
hands. Jack thanked the school board, including Sam Sudarsanam, Alice Isaacson,
Ordetta Hovland, Bill Howard, Ted Yanak (recently retired from the school
board) and Yvonne Waters.
President's report: Mark
Evashenk discussed our financial situation, and the steps our leaders, ministry
and staff have been taking to deal with continued economic weakness. He
introduced the proposed budget for the fiscal year beginning on July 1 (the
2003-2004 fiscal year).
Financial report: Euo started with a projection for
the current fiscal year, with projected income of $845k, expenses of $871k,
resulting in an operating deficit of $26k. May giving was especially weak, so
the year-end situation is less favorable than recent projections had shown.
There are still three Sundays during which giving could improve before the
fiscal year ends.
For
the 2003-2004 budget, he described several categories in which staff expenses
are increasing, and others in which hours have been decreased. The total staff
expense in the new budget is $661k (flat from 2002-2003) and the total expenses
are $866k. With giving projected at $852k, this budget requires (and includes)
drawing $14k from our reserves during this year.
He
then described the capital projects we want to undertake in order to support
our mission, including Visual Connection (projection capability for our
sanctuary), sanctuary lighting, the Welcome Zone initiative and much-needed
repairs to our parking lot. These costs add up to about $308k. He outlined a
proposal to refinance our current first mortgage, while at the same time
increasing the loan amount in order to pay for prompt completion of the capital
projects listed above. Our current mortgage has a monthly payment of $3500. By
refinancing at current rates and taking $250k of cash out, our monthly mortgage
payment would increase to about $4400. The $250k, minus some loan fees, added
to about $66k already pledged toward Visual Connection, brings us almost
exactly to the project cost total shown above.
Motions: Mark presented two motions to the
congregation for approval, one to refinance our mortgage as outlined above, and
one to approve the proposed 2003-2004 budget. After two change motions were
proposed and passed by the congregation, including one from Jack Wedgwood to
change the loan increase amount from $250k to $400k, the motions read as follows:
To authorize the Council to
refinance our existing loan and to increase by $400k our current first mortgage
for the purpose of proceeding immediately with capital projects to include: Visual
Connection, Sanctuary Lighting, Welcome Zone, parking lot repairs, and other
maintenance projects as deemed necessary.
The Council
unanimously recommends a budget with an expense plan of $866k, an income plan
of $850k, with a goal not to let the unrestricted cash balance fall below $50k,
and a budget review in January of 2004.
(The wording of
these motions comes directly from the on-screen text that was modified during
the meeting.)
The
vote on the refinance/project motion was 53 yes, 45 no, 1 abstain. The motion
to approve the 2003-2004 budget was passed unanimously by hand vote.
Constitution update:
Dietrich Kuhlmann reported on recent updates to our constitution, bylaw and
continuing resolutions documents. Minor updates were made since approval of the
documents at the January congregational meeting. By unanimous hand vote, the
congregation ratified the final documents.
Closing prayer by Pastor Jim.
Meeting adjourned at 3:22 pm.