Minutes - September 10, 2013

Diocese of Rhode Island

Commission on Finance

Meeting, September 10, 2013

Higgins Room

(corrected copy)

Present: Robert Batchelor; Robert Bergstrand: Dennis Burton; The Rev. Edwin Hallenbeck; The Rt. Rev. Nicholas Knisely; Michael Lofaro; The Rev. John Pallard; Stefan Sloan.

Also present: Joan DeCelles; Canon Elizabeth Fornal; The Rev. Canon Linda Grenz; Ronald Turnbull.

Present for discussion of Revolving Loan Applications as indicated:

      St, John the Evangelist, Newport: The Rev. Nathan Humphrey, Vicar.

      St. Martin’s, Providence: Dennis Stark, Treasurer; Sarosh Fenn, SW; Fred Mason, Vestry; Gordon Partington, B&G staff.

      St. Thomas, Greenville: The Rev Susan Carpenter, Rector; Ron Slocum, SW; Henry Dziadosz.

The meeting was called to order at 10:05 am by Chair Lofaro. Bishop Knisely offered an opening prayer

The Minutes of the meeting of June 11, 2013 were approved as distributed.

The Treasurers Report of August 31 shows a loss in some accounts primarily due to timing. Careful review indicates that performance for the year appears to be on or near budget.

Apportionment Payments Report. Two churches are five months behind compared to two months behind at this time a year ago. Total months in arrears now exceeds last year.

#	Months in Arr		Parish / Location	Comments
	2012	2013
11	1	3	St. George’s, Central Falls
19	2	5	St. David’s, Cranston	Considering future
36	2	3	St. Matthew’s, Jamestown
43	5	3	St. Columba’s, Middletown	Rector recently called
66	2	5	All Saints, Providence	Interim
76	1	2	STs Peter & Andrew, Providenc
82	2	2	Holy Trinity, Tiverton
94	0	2	St. James, Woonsocket

Particular attention will be given the churches five months behind.

Old Business.

Real Estate Update. Two sales were completed over the summer:

St. Mark’s, Warren with a net income of $121,000± to the Diocesan Reserve Fund.

Scituate land related to Grant House, net income of $50,000± returned to the DIT.

The May House Sea Wall. Mr. Burton reported the rebuilding has been completed, except for a small area missing gravel.

Jonathan Daniels House Funding. The Jonathan Daniels House project is now a program of the Diocese as acted on by Diocesan Council. In order to clarify the flow of funds allocated to this program, following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council that Jonathan Daniels House program funds for 2013 be $22,000 from the Diocesan Resource Fund, subject to acceptance of the program by the Episcopal Service Corps; and, further that budget allocations for 2014 and 2015 be $25,000 from the same source so long as the program is accepted by Episcopal Service Corps.

New Business. Requests for Revolving Loan Funds: (persons attending, see above)

St. John the Evangelist, Newport. A complete Application was received and reviewed for a loan of $15,000 over five years. The purpose of the loan is to complete work on the Rectory for occupancy by the new Vicar. Following discussion it was Moved, Seconded and VOTED to approve a Revolving Loan to St. John the Evangelist Church, Newport, of $15,000 at 2.25% for five years.

It was noted that this loan does not need further approval by Council. It was suggested that St. John may wish to consider placing $15,000 of its endowment funds in the DIT and further reduce the interest rate by 0.75%. This may be done any time prior to the closing.

St. Martin’s, Providence. A complete Application was received and reviewed for a loan of $100,000 over five years. The purpose if the loan is to install new windows, complete painting in some external areas and install a new heating system. Savings in energy cost is estimated to be $6 to $8,000 per year. No capital campaign is planned at this time during the Rector transition. Perhaps 2 to 5 years down the road. Following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council Approval of a loan of $100,000 to St. Martin’s Church, Providence at 2.25% less 0.75 with placement of the value of the loan in the DIT. Council approval is required.

St. Thomas Church, Greenville. A complete Application was received and reviewed for a loan of $132,000 over five years. The purpose of the loan is to upgrade the heating system and convert to natural gas, upgrade the fire alarm system and kitchen renovation to meet all code requirements. Consultation is in process with RISE about possible insulation and window treatment. A capital campaign may be initiated in 2014. Following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council Approval of a loan of $132,000 to St. Thomas Church, Greenville at 2.25%. Council approval is required.

Loan terms and conditions. There was a lengthy discussion about possible conditions that might be placed on Revolving loans. Mr. Sloan volunteered to review the current process and rules and report to the October meeting.

The Chair expressed thanks to Fr. Pallard for his time on the Commission and his contributions to our deliberations as he leaves the Diocese for another parish.

The meeting was adjourned at 12:35 pm

Respectfully submitted

Edwin F Hallenbeck, Secretary.

Next meeting: October 8, 2013 at 10:00 am Higgins Room.