St. Paul S Finance & Budget Committee Minutes - Tuesday, July 18, 2017 12:00 P.M. (Amended

St. Paul’s Finance & Budget Committee Minutes - Tuesday, July 18, 2017 – 12:00 p.m. (Amended 8/17/17)

Opening Prayer: 12:05 p.m. Kathy G. opened the meeting with prayer.

Introductions: Dick welcomed Chris Bogdanow as a new member to the committee, and asked her to share a bit of background. Other members introduced themselves. Dick stated that Vestry will give formal acceptance at the Vestry meeting this evening.

Approval of Minutes: The previous month’s minutes were approved as presented.

Vestry Report: Kathy Gordon

Vestry approved the Deering Management contract for the Goulet Building for three more years.
The decision on the window repair was postponed pending a bid from the company that did the work at the Goulet Building.

Treasurer’s Report: Kathy Gordon

The General Operations were showing a loss of -$12,511 for June, and YTD -$41,139 which is nearing the $56,606 loss that was budgeted for 2017. Overall there was a gain of $36,486 for June bringing the overall loss to -$14,001.
Goulet Building shows $12,278 positive for June and $52,631 YTD, but this does not reflect the $121K draw that covers capital improvements. Legacy fund is down due mostly to the monthly distribution to general operations. Music Guild revenues are coming in for the new season, and contracts have been paid out in the amount of $19,300 YTD.
We received $19,615 from Woodmansee and $5,000 Roof Pledges into the Maintenance Reserves. YTD major expense is $2037.
Pledge revenue looks good at 98.5% which includes the prepaid pledges. Other contributions are below budget except Special offerings. Most expenses are above budget except stewardship, Ins/Unemployment, and Children/Youth.
The investments have net investment income of $251,990 including MVA of $227,274. Two quarters of fees $12,048 which is .73% of average balance. Annualized rate of return net of fees 15.21%
General Operations should be at 50%. Pledges are close, transfers in slightly above due to annual payments made. Other revenues are below. Most expenses are below which is good.
Reviewed the trends on the graphs, and there were questions as to what caused the revenue upticks in June 2014/2015, and August 2015 compared to 2016 downtick in June and up in July. (Terese researched and found the following that would effect this - June 2014 had five Sundays, a couple of pledgers gave $16K of their annual, Health Care Credit $6.7K, July only 4 wks. June 2015 large pledges, August 2015 inc. $20K from unrestricted, MG annual cont. varied each year Sept 2014, Aug. 2015, Nov 2016, June 2017)
Kathy presented a cash flow chart for the 1505 High Street rental, and here was some discussion about what amount would be available to distribute to general operations based on the normal monthly revenues and expenses. June bank balance for that fund is $4395. Kathy did not have all the details when preparing the chart, but it look like there may be around $12K by year end.
Peter mentioned that the Goulet Building construction has been paid for and the loan in the amount of $121,249 has been converted. (A copy of the terms of the agreement are in the file cabinet in Terese’s office, and it looks like the maturity date was extended to 6/08/2027.)

Parish Administrator’s Report: Kati Arp

A bid from the company who did Goulet Bldg was requested for the stained glass window repair, and they said they cannot do it. The original bid of $5550.00 will be presented to vestry for approval tonight to be paid from maintenance reserve funds.
We received $875 facility use fee for a reception including the use of the kitchen. A small stipend will be paid to Dan for sexton duties. The family checked back with Kati after to confirm that all was left ok.
We received documents indicating the St. Paul’s will be receiving $73,353 from the Sherman Estate which will be unrestricted. We also received a notice that St. Paul’s endowment fund is the beneficiary of 10% of the William Miles estate. The probate document shows value at $600,000, but that is probably before any expenses.

Other Business: Dick Rankin

While it was suggested at the June meeting of the Finance Committee that we were out of compliance regarding St. Paul’s approach to funding health insurance, further inquiries with the Diocese and a review of Diocesan Policies and Procedures and the Denominational Health Plan Model for the Episcopal Church indicates we are fully in compliance with such and no corrective action is necessary.
Peter presented a comparison of what St. Paul’s is currently doing for health insurance compared to what it would cost to offer 100% coverage for employee and family vs 100% coverage for employee and 50% premium for family. It included options for compensation if opting out. There was some discussion and clarification. This will be presented to Vestry to establish a policy based on the data.

Adjourn: Meeting was adjourned at 1:20 p.m.

Next Meeting is Tuesday, August 15th at noon

Recorded by: Terese Gillespie, Bookkeeper (amended 8/17/17)