Subject: Church Council Minutes 1/27/04
Date Sent: 01 Feb 2004 04:30 PM

Church Council Arlington Hills United Methodist Church

MINUTES
Tuesday, January 27,2004
SPECIAL CALLED MEETING

ATTENDANCE: Janet Ricci, Mike Maddio (sub for Karen Desens), Pastor Greg Iverson, Bill Morter, Carole Morter, Donna Gapinski, Linda Oberg, Gene Anderson, Jim Watson, Keith Wells, Mark Youngstrom, Todd Levig, Bruce Larsen, Kathy Carlson, Beth Thompson, Betty Phillippo (recording secretary), Karen Johnson, Steve North, John James, Ron Phillippo (chairperson).

SUMMARY OF ACTION TAKEN:
A. Approved the minutes of the 1/11/04 Special Called Meeting.
B. Approved the Treasurer's Report.
C. Approved the 2004 Budget in the amount of $375,000 - with the stipulation that
there must be a thorough review by April 1 containing the March numbers - and
that this year's apportionments be shown as an addendum to the $375,000.
D. Approved a resolution offered by the stewardship ministry team regarding the
Handling of Cash Shortages (attached).

1. OPENING: All were welcomed, and appreciation was extended for each one's attendance; prayer was given by Pastor Greg Iverson; the agenda was presented for the 2/1 Church Conference. Pastor Greg also informed the Council of the injury to Administrative Assistant Jan Frankenberg resulting from a fall this morning.

2. ACTION ON MINUTES: The minutes of the Special Called Meeting held on 1/11/04 were approved; motion by Mark Youngstrom, seconded by Bill Morter; motion carried.

3. TREASURER's REPORT/Linda Oberg: There is now a balance of $65,000 due on the building fund - significant progress has been made in paying down the "loans to ourselves." (Loans are from internal endowment funds.)

The unified budget ended the year with a negative balance of -$18,350; approximately $15,500 was paid in apportionments. There is $38,300 due the Conference to be paid at a time to be determined.

Linda requested diligence from all in preparing purchase orders in order to avoid duplications.

Karen Johnson moved for acceptance of the Treasurer's Report; Carole Morter seconded; motion carried.

4. STEWARDSHIP MINISTRY TEAM/John James: John announced his resignation as ministry team leader. He reported that the stewardship team will now meet monthly, and also that January had been a very good month; $38,201 was received.

John presented the following recommendations: A weekly giving report in the Sunday bulletin showing the "target amount" that is needed each week, and to watch individual giving, especially from "major" givers. Also, include in the budget information regarding apportionments - perhaps a special offering would be a solution. He read a letter from District Superintendent Cindy Gregorson regarding the consequences of unpaid apportionments. The Conference can review a congregation's apportionment amount, and we should plan to do this in the fall of 2004. John emphasized that apportionments MUST BE a priority!!

Pastor Greg offered a proposal that potentially could raise approximately $50,000 to help cover our 2004 apportionments - i.e. if each member of AHUMC would give at least the amount of $100 over and above his/her present anticipated level of giving. This could be done as a memorial, or in honor of someone. Pastor Greg (and Rita) suggested that they would like to be the first contributors.

Motion was made by John James that the amount of this year's apportionments be shown as an addition at the bottom of the proposed 2004 budget, and that this be shown with an asterisk noting that the apportionments may be paid by special giving; seconded by Gene Anderson; motion carried.

John stated that he believes the $375,000 budget is "wishful thinking," and he distributed a chart showing a giving history (unified operating budget). He called attention to the reality that pledgers continue to decline; $225,800 is now pledged for 2004 from 122 pledging units. We now have reserves of $18,929 (about two weeks of operating expenses). John is very concerned that this low level of reserves could easily cause us run out of money during the summer of 2004. John again quoted from the District Superintendent's letter in which she stated that $390,000 should be the maximum for our budget - personnel costs should not exceed 60 per cent of a budget.* John again emphasized that he is in agreement with the concept of faith-based giving and budgeting, and spoke of trying to increase the amount of giving from those who pledge, which has actually been happening over the past two years. He believes that we need both a short-, and a long-range plan. John recommended that th
ere be some staff reduction; if we continue to fall behind, it is only realistic that we cannot go ahead with the proposed budget. Pastor Greg spoke of the excellent staff and of their willingness to sacrifice. We must be fiscally responsible!

Karen Johnson moved to approve the 2004 unified operating budget at the $375,000 level, with a review by April 1 (containing March numbers); Todd Levig seconded the motion; motion carried.

John James presented a " Resolution Regarding Handling of Cash Shortages;" (attached) Jim Watson seconded; motion carried.

Deacon Beth Thompson agreed to work on a communication process to relate to members who have not yet picked up their church directory and/or giving envelopes.

5. PLANNING SESSION/Karen Johnson: Copies of the items covered at the planning session will be placed in the Welcome Center by next Sunday; congregational feedback is needed and will be solicited. The new suggestion box and the church website will also be used to secure input. Karen asked that the team leaders go through the report and pull out those items appropriate to their team. There is a great need to keep the congregation informed as to decisions to be made. A small ad hoc group will be working on developing goals and placing them with the appropriate team/committee.

ADJOURNMENT AT 9:20 p.m.

NEXT MEETING - March 9, 2004

*Based on rough calculations, salary and support will be $223,253 of the adopted
budget of $375,000, or approximately 59 per cent.