Minutes
Board of Trustees
First Unitarian Society
Madison, Wisconsin
April 4, 2007
7:00
p.m.; Lower
Meeting House
Present:
Officers:
Pat Anderson, President
Laurie Joiner, President-Elect
Tom Detmer, Secretary
Council Trustees:
Kathy Luker
John Mathis
Nancy Kosseff
Jim Christensen
Barb Avery
Ministers:
Michael Schuler, Minister
Scott Prinster, Associate Minister
Kelly Crocker, Associate Minister
Staff:
Susan Koenig, Church Administrator
Observers:
Donna Hartshorne, Archivist
Visitors:
CALL TO ORDER
After an
opening by Jim Christensen, Pat Anderson called the
meeting to order at 7:00 p.m. and reviewed the agenda.
APPROVAL OF MINUTES
Pat Anderson asked for a motion to approve the April 4, 2007 minutes. It was MOVED by John Mathis and seconded by Laurie Joiner to approve the minutes. There was no discussion. The Motion was APPROVED unanimously.
BUSINESS ITEMS
2007-2008 Budget
Susan Koenig passed around the line item budget and a “summary tour” of the budget along with the assumptions used to determine revenue and expenses for the coming year. As it stands we have a deficit without making any changes.
We have to find $78,700 to close the gap between the expenses and revenues as the proposed budget now stands. Our assumption was that we would get 4% increase in pledges and that is probably too optimistic. It may be more like 4% less a 1.5% shrinkage rate in the number of pledges. The rate of return of pledges is a little under 50%, which is about 90 fewer people than the same point last year. There are decreases in the revenue indicated on the assumptions sheet. The reductions in income from parking, weddings, building rental and music are the main reductions due to the construction in the coming year. If we would not have those reductions in income, then we would have a balanced budget.
Susan indicated where she put money aside for a new server and a new risograph in reserves in the budget. These are capital expenditures for which the Stonehaulers Fund could provide monies. The Stonehaulers Fund might be called on to fund a new boiler this year, to help refurbish the Annex, microphones for the new facility and new computers that are approaching the end of their useful life. The piano for the new auditorium also could be purchased this way. The Stonehaulers Fund may not provide all of these monies but it may provide money for some of these items.
There was a conversation with the Foundation about getting funds from the Foundation and it was agreed that we would always have needs to fill what they can provide. We need to budget reasonably and then plan on a specific amount that the Foundation has budgeted itself to provide to the Society for its operations. We should not budget first and then ask the Foundation to make up the difference.
There is a consultant budgeted who will work with the staff. The intent is to take advantage of the transition that the staff is going through right now and to build on the fact that the staff has been together for three years. It is a good time to examine how we are doing and how we can improve things to the next performance level as a team.
Midyear there is a person budgeted to learn the operation of the old facility along with the new facility in order to know how to operate them physically. We also want someone to assist with funds development. Some capital funds are included for grant writing support and fundraising.
There is list of potential things to take out of the budget based on our projected budget. Susan passed around a list of items to consider removing from the budget to balance it for the coming year.
There is a fundamental question about whether we need to balance the budget or whether we end up with a budget that balances if we add in the revenue that we will be without. In other words, we will be down by the lost revenues but that is all. Is that a reasonable position to be in for this transition year? Should we tighten our belts more or should we accept the deficit for this year?
Can we handle a $50,000 deficit? It does not seem huge but we don’t have final capital figures either. This is an odd year because of the timing of the pledge drive unavoidably starting a little late and the parish meeting being a little early. It creates more uncertainties to handle in the budget than we normally have to handle. There is going to be a facilities forum on June 3. Should we handle the budget then for approval by the parish? We will tentatively proceed with the parish meeting on April 29 where we will present the budget but not ask for approval until June 3, 2007. We can discuss this further on April 18, 2007.
Our net worth as a Society is increasing by the growth in the Foundation. The assets of the Foundation are included in our overall financial statement.
Michael suggested having one parish meeting on May 20th to handle all parish matters. There should still be a forum on April 29th to present facilities information a week before ground breaking. This sounds like a better plan than the parish meeting on April 29th.
So, there will be a board meeting on April 18th, a facilities forum on April 29th, two board meetings in May on May 2 and May 16th, a leadership retreat on May 19th and a parish meeting on May 20th. This sounds like the best plan for now.
BREAK
Budget cont’d
Susan asked the Board for input about priorities to cut if cuts in the budget are necessary. It was agreed that staff salary budget cuts are the least favored item to cut if it is necessary. While we want to support the UUA, our level of support may have to be flexible this year because of the strains on the budget. Barb Avery pointed out that if you cut items then it is always hard to build back support for them so don’t cut too drastically where you want to continue to support items. For example, if UUA is cut drastically, then it will be hard to dramatically increase support a year later if support is cut drastically this year. This idea will be kept in mind as we determine how to achieve a balanced budget.
HVAC Proposal for the New Facility
The executive committee approved an HVAC proposal on Saturday, March 31, 2007. This action approves proceeding with the geothermal proposal because new information and studies indicate that the payback will be faster than expected in earlier proposals and the cost of geothermal is not as great as initially thought. Given that geothermal is an important item to include in our overall “green building” the executive committee determined that it was important to include it in the building plans. A number of Board members were also present at the meeting where the executive committee approved this and those Board members also agreed that the proposal should proceed. The executive committee advises the entire Board of this action. No objections to it were expressed.
ADJOURNMENT
MOTION by
to adjourn.
CARRIED
Meeting was adjourned at 9:00 p.m.
Minutes by, Tom Detmer, First Unitarian Society Board Secretary
