Minutes - April 8, 2014

Diocese of Rhode Island

Commission on Finance

Meeting, April 8, 2014

Higgins Room

Present:  Robert Batchelor; Robert Bergstrand; The Rt. Rev. Nicholas Knisely; Michael Lofaro; The Rev. Joyce Thorne.

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

Others: Church of the Epiphany, Rumford: Janice Johnson, Senior Warden; Kristen Dee, Treasurer. St. Columba’s Chapel, Middletown: The Rev Eric Larsen, Rector; James Powell, Treasurer.

The meeting was called to order at 10:00 a.m. by Chair Lofaro. Bishop Knisely offered an opening prayer.

The Minutes of the meeting of March 11, 2014 were approved as distributed.

Financial Report for March 2014 was reviewed as distributed. It was noted the report is still seven pages in length with staff group meeting frequently to agree on a condensed version to better use for wider distribution. The budget data is still presented in monthly division format which does not accurately reflect actual fund flow. Several comments and suggestions were offered. The Report was received and placed on file.

Apportionment Report for March 2014. Two churches are three months behind with no payments in 2014. It was agreed the Bishop and Canon to the Ordinary will follow up with both churches.

Revolving Loan Fund Limit of COF Approval. Follow discussion of last meeting consideration it was agreed that a rate set in 1968 needs to be raised. The simplest change was viewed as a percent of the total loan funds, currently about $1,600,000. Following additional discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council that the upper limit of a loan fund that may be approved by the Commission on Finance may not exceed 10% of the Revolving Loan Fund total balance, currently $150,000. The current RLF is $1,600,000.

New Clergy Member of COF. The individual agreed upon in March has been asked and has declined. Members were requested to suggest additional names.

COF Terms expiring in 2014. One elected and one appointed term expire, Mr. Lofaro (elected) and Mr. Sloan (appointed). Both are eligible for an additional term. Members were asked to suggest additional names.

Church of the Epiphany, Rumford, Revolving Loan. Representatives of Epiphany joined the meeting (see above).  The project was reviewed to convert energy source from oil to gas, including new lines and boilers in both the Church and adjacent Rectory and removal of existing oil tanks. The estimated cost is $55,000, amount of requested loan. Noted they are considering a fund raising effort. Significant energy cost savings will result. They plan to pledge DIT held funds to reduce the interest rate. Epiphany representatives were excused.

Following the meeting with church representatives it was Moved, Seconded and VOTED to recommend to Diocesan Council approval of a Revolving Loan up to $55,000 to Church of the Epiphany, Rumford for an energy conversion project at a rate of 1.5%. (Prime 3.25% less 1%, less .75%.) One member not voting.

St. Columba’s Chapel, Middletown, Revolving Loan. Representatives of St. Columba’s joined the meeting (see above). The project was reviewed. The Parish Hall was built in 2001, even so, significant deterioration in floors and related areas from water leakage requires immediate repair and reconstruction. A Brochure in use for fund raising describes and shows the damaged areas. The campaign is under way with $15,000 in hand and other commitments. Total cost of the project is $200,000 with a loan of $100,000 requested. No endowment is placed with the DIT. St Columba’s representatives were excused.

Following the meeting with church representatives it was Moved, Seconded and VOTED to recommend to Diocesan Council approval of Revolving Loan of up to $100,000 to St. Columba’s Chapel, Middletown for Parish Hall repairs at a rate of 2.25%. (3.25% less 1.00%.)

May House Project. In the absence of Mr. Burton,  Bishop Knisely reported no work done in the past month, beyond asbestos testing which was negative.

Cash Management. Some progress, with additional study needed. Defer to May.

Canon Grenz Report: Jonathan Daniels House. Funds allocated from the reserve Fund for 2013 were largely unspent and are needed for startup this year. It was Moved, Seconded and VOTED to recommend to Diocesan Council that $17,154 unspent funds in the Jonathan Daniels House account for 2013 be carried over to 2014.

St. Michael’s Bristol has requested assistance in reviewing its endowment draw. It was agreed that Stefan Sloan and Robert Bergstrand will represent COF.

The meeting was adjourned at 11:55 a.m.

Respectfully submitted

Edwin F Hallenbeck, Secretary

Next meeting: May13, 2014 at 1:00 a.m.