Agenda• Opening prayer• Meeting protocol• Financials• Process• Hope – Next steps

“Do nothing from selfish ambition or conceit, but in humility regard others as better than yourselves. Let each of you look not to your own interests but to the interests of others. Let the same mind be in you that was in Christ Jesus.” Philippians 2:3-5

Welcome! Thank you all for coming• Listen, digest, understand• Give everyone a chance to speak• Display an economy of words• Assume good intent• Forgive the past and focus on the future• Seek first the Kingdom of God!

Funds from Reserves

Cash Flow

Beginning Balance

Repay Reserves

Illustration of typical yearly cash flow(When we have available reserves)

Jan June Dec

June “Loan” from Dedicated Fund

Cash Flow

Beginning Balance

Cannot “Repay”

Dedicated

This Year is not typical(insufficient reserves)

Funding from “Special appeal”

December

?

General ledger cash flow

100% ($11,359)

95% ($20,300)

87% ($34,604)

Financial Crisis – why?

• Reduced giving units• Economy downturn

Current giving running at an effective 87% of pledge vs. budgeted 95%

General Fund Giving Units

2004 1552005 1212006 1132007 1352008 132

Current 116

Financial crisis – cost cuts taken

– 3% payroll cut (8.4K annual savings)– Reduced benevolence (6.2 to 5% - 6-10K savings)– Eliminated business mgr – ($18.3 savings)– Reduced landscaping (10k savings)– Dedicated funds used as appropriate (5K savings)– Property improvements reduced (? Savings)– Initiated Special appeal for 25K but did not kick-off

till after Lent ($8415 collected to date)– Approximate 50K in total savings

Financial crisis – why didn’t you know?

• The weekly “For the Record” was ambiguous

• Appeal letters did not adequately convey severity of situation

Income vs. Expenses"For the Record" History

8-Mar $3,371 15-Mar $2,845 22-Mar $192 29-Mar $3,505

5-Apr $2,078 12-Apr $11,777 19-Apr $4,135 26-Apr ($3,193)3-May ($3,006)

10-May $14,493 17-May $17,652 24-May $8,356 31-May $1,431

7-Jun $4,809 14-Jun $4,980 21-Jun $3,419 28-Jun $3,557

5-Jul ($2,139)12-Jul $4,077 19-Jul $5,137 26-Jul $414

“For the Record” vs. Actual month end

Income vs. Expenses Month end Data

Month Inc vs. ExpJan ($9,128)Feb ($9,670)Mar ($8,059)Apr ($17,445)May $3,097 Jun ($11,637)Jul ($17,928)Jul (adj)* ($11,040)

* What July's numbers would have been without severance and vacation payout to terminated

employees

Financial crisis – June status

• Borrowed 10K from dedicated funds• Based on previous cost cuts we felt compelled to

look at staffing levels • Overstaffed based on similar sized congregations per

synod guidelines• Reduced giving trend • NO RESERVES!

Financial issues - FAQ

• What other options, if any, were considered?– Furloughs, further salary cuts etc…

• (furloughs – not of value; salary cuts – already made)

– Why not let one of the pastors go?• (Synod involvement long process, 2/3 vote, potentially

divisive)

• Why were large facility expenses made during crisis?• (made in early ’08, some gifted, some mandatory – AC

units, elevator)

Staff reduction decision process• July 13th Executive committee meeting held and staff

layoff reduction deemed necessary • July 28th layoff recommendation presented to council

– Formal vote not required– Discussion followed echoing current congregation

concerns – Executive committee and council chose to exercise their

fiduciary responsibility to keep Esperanza solvent

Layoff process – FAQ’s

• Why was there no notice given?– (Verbal notification provided in early May)– (In lieu of 2 weeks notice 2 weeks severance provided)

• What is their severance package?– ( 2 weeks + unused vacation)

• Why were they walked out?– (No one was walked out – Minerva same day, Dave 3 days)

New Hope – what's next?

• How do we manage?• Pastor Pam’s vision• Get help from the synod• Plan for the next year or two

Wanted!

Servants of God who wish to use their skills in (and out of) the office.

• Welcoming presence in the office • Planning, organization, implementation and support • Record keeping and filing• Bulletins and Newsletter

Wanted! Servants of God who wish to use their skills in

worship & music• Be part of worship planning teams (by season)• Lead Bell Tigers and beginning bell choir• Lead adult choir• Lead youth choir(s)• Sing, play bells, play other musical instruments for worship

Wanted!

A coordinator of volunteers - someone who can organize and coordinate

schedules and times for all who want to help

What stays

• Regular worship & Music-

8 & 9:15 accompanists

-10:30 praise bands

• Choirs• Bible studies• Christmas Program• VBS

What could be suspended

• Original musicals?• Bell choir (s)?

A Vision

Through the end of the year

• Keep our eyes on Jesus • Look for opportunities to improve communications• Focus on volunteer leadership• Healing of our church family• Finish in the black financially - Form a Finance committee• Begin worship planning teams again• Celebrate Festival Days

A Vision – cont’dNext Year and forward

• Keep centered in the Gospel• Continue good financial standing• Look for opportunities to improve communications• Reach out to our neighbors• Explore an “Esperanza West” with Emerging Church philosophy• Connect with Monte Vista in new ways• Connect with other congregations

Go in Peace

Serve the Lord