Council Meeting Minutes

Monday, June 5, 2006, 8P.M. to 11P.M.

Larry and Nancy Jo Lopp's House

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Larry respectfully requests that if a committee/board chairman can not be

present, then they take responsibility to get a member from their committee/board to the meeting. Please!!!!

Council Agenda Prepared by Larry Lopp:

Item #1

Balance the budget for presentation and vote of the Congregation.

As previously stated we have been spending (Disbursements) more than we

have been gathering (Receipts) for the last two years. We spent about$18,000 more than we gathered in the last two years.

The budget requests provide the kind of programs the church organization feels are needed by

our congregation. As the budget request currently stands we are projecting a $20,000 or 12.2% larger spending than gathering.

My strong recommendation is we set ourselves to the task of sending a sound and balanced budget to the congregation.

I propose the following steps:

1. Each Board/Committee make any changes in their request they can.

2. We then reduce all committee/board request by the same % necessary to achieve a balanced budget.

3. Make adjustments as agreed for special cases.

As we proceed in the new fiscal year and as revenues exceed our targets we restore the cuts. We should look at this each quarter.

Item #2

The Kitchen project

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Discussion:

The meeting began with a several slide presentation of a simplified version of the budget representing fiscal 04/05, 05/06, and projected 06/07.

Larry and Maire explained that there have been difficulties:

1. Old reporting systems vs. new one

2. New Systems

A. All expenses under a board or committee

B. Moving towards QuickBooks

1> easier for Gerry

2> document and accumulate year-to-year data

(Larry commented Maire has done a remarkable job)

Narrative:

Budget

We have almost two years of history (Receipts)

Pledges are flat Offerings are flat Harvest Festival is somewhat down and we will be losing our largest single donation this year, the Mexican villa.

Mission manages special offerings - new item

10K run - flat, missing 2005 data (someone said it was $5858)

Disbursements

Arts - no expenditures for all three periods

Education -

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See attached budget information and the three slides Larry is putting on the web.

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Bottom line is that we have a shortfall of ($19,791)

We may have to reduce ALL disbursements by 12%

Larry proposed (in slides):

1. Each board and committees make any changes they can to reduce their requests/budgets

2. We reduce all planned disbursements by the same percentage. This is necessary to achieve a balanced budget.

3. Make adjustments for special cases.

4. Review the results each quarter

Discussion followed with the following issues raised:

How can we encourage people to increase their pledges? Last year there was a plea and this brought about some additional pledge or "catch-ups."

Maire: Last year we went through a "soul-searching" process but did not implement a recruiting of new members that may help balance increased expenses. Mountain Bible is an example of successful outreach.

Jim Bowen: We cannot continue to deplete reserves each year. Cannot reduce power costs, insurance costs, etc. since they are growing/increasing each year.

Further comments: We are in the same situation as others at this time. 12% cuts will get everyone's attention.

Discussions arose regarding how we can use the funds raised at the 10K run. The commitment to sponsors is that the money goes to various charities, not the denomination or the church. Jim, Don, Larry, wanted to see the exact wording for that commitment.

ACTION: Maire will email that wording of our commitment to sponsors for the use of funds for the 10K Run.

What to do?

Have all boards and committees verify their projected numbers.

ACTION: Maire will email current figures to all committees. (done June 6, 2006)

Further discussion about how we can better clarify our financial positions and transactions for budget visibility and for communication to the congregation. Reviewed April 2006 financial report to support that discussion.

It was made very clear that the Kitchen Project is not part of this issue. There are about $56,000 in funds set aside for that purpose.

ACTION: Jim and Lynn will contact a prospective donor (Stephen will identify, from Easter sunrise service) to the kitchen or church general-fund. NOTE: Each of the families of those for whom special donations have been made to see if we can use those funds for the kitchen.

Further discussions regarding past history.

Further discussions regarding how cuts proposed could be implemented in missions, i.e. OCWM. OCWM is requested as a percentage of our operating budget. Stephen clarified that how much we give is voluntary and up to us. Additional discussions of how cuts would impact Stephen.

How can we remain together to keep our church strong?

We need to educate people about how serious the situation is.

The church is not growing. We need to reach out to grow our membership?

How can we do that? The new kitchen will establish the church as a valuable venue and source of revenue AND make us more visible in the community.

How do we talk about ourselves in a manner that isn't evangelical and a manner that delivers our message, our good news?

Finally, motions were made to take the following steps immediately:

1. Larry Cooke will write a letter requesting a 20% increase (or whatever possible) to go in the newsletter in a manner that it can be torn off where the name and address are on the back and be brought to church to be given to Gerry or put in the collection. (Holly will edit)

2. Maire will create an additional form for email or web distribution.

3. Trustees will contact the 24-or-so people who haven't pledged.

4. The current state of the budget will be explained and announced at church.

5. We will use the 10K Run to promote Skyland Church.

Respectfully Submitted,

Holly Reed

(For Terry Clark)

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