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) JanJuneDec

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)

2 year cumulative surplus / (deficit) Shows what cumulative deficit would be without use of reserves or 2008 beginning balance. Assumes 87% of remaining pledges received in 2009 and 100% of remaining 2009 budgeted expenses incurred, without staff reduction. 26K Loan + 24K forecast EOY 34K total‘09 = 60K total

Financial Crisis – why? Reduced giving units Economy downturn Current giving running at an effective 87% of pledge vs. budgeted 95% General Fund Giving Units Current116

Financial crisis – cost cuts taken – 3% payroll cut (8.4K annual savings) – Reduced benevolence (6.2 to 5% K 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, Mar$2, Mar$ Mar$3,505 5-Apr$2, Apr$11, Apr$4, Apr($3,193) 3-May($3,006) 10-May$14, May$17, May$8, May$1,431 7-Jun$4, Jun$4, Jun$3, Jun$3,557 5-Jul($2,139) 12-Jul$4, Jul$5, Jul$414 “For the Record” vs. Actual month end Income vs. Expenses Month end Data MonthInc vs. Exp Jan($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 13 th Executive committee meeting held and staff layoff reduction deemed necessary July 28 th 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’d Next 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