Northwest Unitarian Universalist Church

CALL TO ORDER

Chris Doozan, Moderator, called the Congregational Meeting of Northwest Unitarian Universalist Church to order at 7:32 p.m. in the main church meeting room. It was determined that a quorum was present. There were no changes to the agenda.

CONSENT AGENDA

The minutes of the September 19, 2004 Congregational Meeting were distributed. Lisa Fry motioned that the minutes be accepted as presented. Julie Stitt seconded. The motion carried.

RECEIVE PRINTED ANNUAL REPORTS

The printed annual reports from the board committees were distributed to all members in attendance. Diana Kohler motioned that the reports be accepted as submitted. Colleen McInerney seconded. The motion passed.

ELECTION OF OFFICERS AND GOVERNORS

Colleen McInerney, chairperson of the Nominating Committee, announced that she and her committee were pleased to submit the following list of candidates for election as officers and governors to the N.W.U.U. Board:

Colleen McInerney motioned that we accept the slate of officers and governors as presented. Fred Peiss seconded the motion. The vote was taken and the motion passed unanimously.  

COMMITTEE ON MINISTRY

Paul Manzella motioned that we affirm Colleen McInerney and Sam Kirkland as members of the Committee on Ministry. Priscilla Danielson seconded the motion. Discussion ensued. Ted Hitchcock stated that it seemed a conflict of interest for the minister to have a hand in nominating people to this committee. Chris Doozan said that the by-laws committee was presently looking into the matter. Ted Danielson suggested that we table the matter until a future meeting. The group was agreeable and the question was called. The motion passed with all present in favor.  

REPORT ON THE CAPITAL CAMPAIGN AND ON CHURCH DESIGN AND CONSTRUCTION

Chris Doozan introduced Tim Beckett to discuss results of the capital campaign and the overall funding of phase 2 of our building project. Tim acknowledged that phase 1 of the building project is now complete. He asserted that the capital campaign is for all intents and purposes complete with approximately $410,000.00 in pledge receipts. Now we need to make sure we have adequate resources to fund phase 2. Initially, he estimated that an overall funding of $900,000.00 would be within our means.  He suggested we may want to approach phase 2 in a multi-stage approach since the preliminary bids for construction came in higher than anticipated. For instance, we may delay enclosure of the atrium if it cannot be done within budget. He informed us that in the near future we will be asked for approval of a building design and in obtaining a mortgage to help finance the building expansion.  He then introduced David Fry to speak on the matter of funding our expansion.

David began by discussing a key component of the expansion funding – a $450,000.00 mortgage, and whether or not we could afford the payments for such a mortgage. He presented numbers showing the growth of our congregation in members, pledges, capital campaign $ raised, % increase in number of members pledging and the % increase in pledges made. From these numbers, David made the following projection assumptions:

            - 8% increase in membership per year
            - 3.24% increase in pledges per year
            - A modest increase in rental income and fundraising income
            - A $45,000.00 annual mortgage payment
            - No deficit cash flow in any year
            - Debt service not to exceed 22% of annual revenues in any year

Conclusions from these projections:

            - Our debt service will not exceed 21.2% of annual revenues in any year
            - The projected average available cash balance after expenses for each of the next           five years $17,439.00
            - This balance will be available for contingencies, programs, salary increases and  capital expenditures
            - We will have a positive cash flow in all years
            - (It was noted that the average cash balance after expenses for the last for years   has been $18,040.00)

Recommendation from these projections:

We can affirm our desire and ability to request the architect and our construction   committee to plan for a mortgage payment of $45,000.00 per year to help fund the construction of our building project. This will allow us to borrow approximately $450,000.00 at 8% interest for 20 years.

Tim Beckett then resumed. He discussed working with the UUA in the process of applying for a mortgage. He stated that in addition to the funds raised in the capital campaign and a mortgage, we also have a previously existing balance of $25,000.00 in our building fund and that we could reasonably expect $15,000.00 in funds from other miscellaneous sources. Diana Kohler then moved we adopt a budget of $900,000.00 for phase 2 of the building project, which is based on the following components:

 -Capital Campaign pledge receipts ……………………………………….$410,000.00

 - Mortgage loan, based on $45,000 annual payments for 20 years………$450,000.00

 - Existing building fund balance…………………………………….……. $ 25,000.00

 - Other sources………………………………..…………………………… $ 15,000.00

                                                                                                    TOTAL… $900,000.00

                                                                                                                         =========

Tom Ott seconded the motion. Ted Hitchcock shared his concern that if we don’t enclose the atrium now, it might never get done. Tim stated that the building expansion committee and finance committee share his concern but that until we proceed with approval of an expansion budget we won’t have a building design with which to solicit firm construction bids. Only then will we know for sure what we can accomplish within the $900,000.00 budget. Ted Danielson informed us that some of phase 2 has already been accomplished such as the recently installed new roof. After a few more comments from members the vote was taken and the motion passed unanimously.  

OTHER BUSINESS

Ted Hitchcock asked someone from the by-laws committee to explain what’s being done to resolve the issue of an apparent conflict of interest in having our minister, Kimi Riegel, involved in nominating members to the Committee on Ministry. Kimi stated that she also has recently brought this to the attention of the by-laws committee. Mark Babcock, of the by-laws committee stated our minister makes these nominations in conjunction with our moderator. He stated that at present, the committee has no recommended resolution, if any, at this time and that the matter would have to be taken up at our next congregational meeting.  

Ted Danielson stated that he has copies of our annual financial statements for anyone who wished to see them. David Fry announced that the financial statements would be posted on the bulletin board in the church hallway for public viewing.

ADJOURNED AT 8:47 PM

Respectfully submitted,
Mark S. Denney, Substitute Clerk