Diocese of Rhode Island
Commission on Finance
Meeting, June 14, 2011
Higgins Room
Present: Robert Batchelor; Robert Bergstrand; Brian Ehlers; The Rev. Dcn. Edwin Hallenbeck; Scott Nicholson; The Rev. John Pallard; The Rt. Rev. Geralyn Wolf; Jamie Worrell.
Also Present: Canon Ty Creason; Canon Elizabeth Fornal; Ronald Turnbull.
For part of meeting: Michael Lofaro, St. Ann’s, Block Island; The Rev. R. Trent Fraser. Edward Carnes,Treasurer and Ron Turgeon, Junior Warden, St. John the Evangelist, Newport.
The meeting was called to order at 10:05 a.m. by Chair Nicholson.
Opening prayer was offered by Bishop Wolf.
The Minutes of the meeting of May 10, 2011 were approved as distributed.
The Treasurer’s report for May 2011 was distributed by Mr. Batchelor without further discussion.
St. Ann’s By-the-Sea, Block Island. Mr. Lofaro joined the meeting. A Vicarage Recommendation working paper, submitted by the Bishop’s Committee was distributed in advance of the meeting. It is proposed that to continue the growth and development of St. Ann’s, adequate housing for the Vicar and better space arrangement for parish functions of all kinds is needed. A number of options have been explored. The most viable solution is purchase of an existing house. A purchase and sale agreement has been negotiated for a house at a cost of $625,000 plus 3% land trust tax of $18,600, total cost $643,600. It is proposed to purchase the house as follows:
St. Ann’s Growth & Endowment Fund $100,000.
Parishioners Capital Fundraising ($100,000 in hand) 200,000
Revolving Loan Fund, Diocese 343,600.
Total project cost $643,600.
The project and St. Ann’s ability to carry out both the financial and growth aspects was discussed at length. It was considered to be a well planned and reasonable proposal. It was noted the house contains a separate rental apartment that produces an estimated seasonal income of $14,000. A commitment to the sale is needed by July 15, 2011. Mr Lofaro left the meeting.
The proposal was reviewed in detail also considering St. Ann’s operating data for the last several years and the importance of having a full time Vicar. Following discussion it was Moved, Seconded and Voted to recommend to Diocesan Council that a Revolving Loan Fund loan for 30 years at prime minus 1% be made for up to $344,000 to St. Ann’s By-the-Sea for purchase of a Vicarage. Note: ample loan funds are available.
St. John’s, Newport. Fr. Fraser, Mr. Turgeon and Mr. Carnes joined the meeting. A letter was received from Frank Jenks, Senior Warden, apologizing for not being able to attend the meeting and summarizing recent history of problems relating to St. John and his hope to continue developing a long term viable plan with the Diocese. There followed a lengthy discussion of current problems the parish faces and steps being taken. The aim is to pay full apportionment with earlier estimates to do so being overly optimistic. It will take another two or three years to complete corrections. St. John’s representatives left the meeting.
It was Moved, Seconded and Voted to continue St. John’s, Newport apportionment at the rate currently being paid at $1,800 per month, $21,600 for 2011. It was further agreed that St John’s representatives and Diocesan staff will meet by mid July to agree on a working figure for 2012 apportionment to assist in both parish and Diocesan budget planning for 2012.
Apportionment Report. Parishes continue to respond well in paying apportionment on a current basis with the total of months in arrears about half of 2010 at the same time. The chart below lists all parishes two or more months behind.
| # | Months in Arr | Parish / Location | Comments | |
| 2010 | 2011 | |||
| 2 | 0 | 3 | St. John’s, Ashton | Merger in process |
| 6 | Spec | Spec | St. Michael’s, Bristol | $9,975. Negotiation in process |
| 19 | 2 | 2 | St. David’s, Cranston | Interim-Self study |
| 38 | 0 | 3 | Christ Church, Lincoln | Interim |
| 43 | 2 | 3 | St. Columba’s, Middletown | |
| 83 | 4 | 3 | Ascension, Wakefield | |
| 93 | 2 | 3 | Christ Church, Westerly | Interim |
Note: All Parishes two or more months behind will be listed each month.
St. Matthias, Coventry. Vicarage boiler bid proposals were received from three companies. It was Moved, Seconded and Voted to accept the bid/work proposal of Santoro Oil Company for $5,385 to remove the present boiler and install a Weil-McLain PUO-3 Ultra oil boiler with Beckett NX oil burner.
New Business.
St. James, Woonsocket, apportionment request. A letter from the Rector stated that in the 1980s the Vestry elected to reimburse any unemployment insurance rather than participate in the State of RI system. In 2010 with terminated employees the cost became significant. In 2011 it is estimated to cost $13,000. The parish requests not to pay apportionment on this cost. Following discussion it was Moved, Seconded and Voted to reduce half the apportionment due in unemployment insurance costs in 2011 when documented as an actual cost at year end. It was noted that St. James has since joined the Unemployment insurance system.
St. Lukes, Pawtucket. It was noted that in the process of merger with St. John’s, Ashton, an outstanding diocesan revolving loan fund loan with an outstanding balance is still in effect and now in areers. A letter from the Rector states they are aware of this and with some other matters hope to formulate a plan to resolve these outstanding issues. They request some time to come up with a plan. It was agreed to hold the matter for the time being for a future agenda.
Budget Amendment. The 2015 Task Force for Strategic Needs and Planning was created by the 2010 Convention and given a series of tasks. It was not given funds to carry out this work. The Task Force has requested funds in the 2012 budget and is now beginning its work in following up The State of the Churches meeting and gathering other data. A budget line of $1,000 for 2011 is requested to begin this work. It was Moved, Seconded and Voted to request Diocesan Council to Amend the 2011 Budget by adding a line for the 2015 Task Force for Strategic Needs and Planning and appropriating $1,000 for this purpose.
It was agreed to schedule a Commission meeting in July given the volume of business at hand.
The meeting was adjourned at 12:30 pm.
Respectfully submitted
Edwin F Hallenbeck, Secretary
Next meeting: July 12, 2011 at 10:00 am - Higgins Room
September 13, 2011 at 10:00 am – Higgins Room
