This is a recap of our January 26, 2020 Congregational Meeting where we received the annual report, reviewed Emmanuel’s finances, 2021 projections, approved to dissolve the pastoral position held by Craig Williams and covered the next steps forward for Emmanuel.
The full annual report narrative is available by clicking 2019 Annual Report Narrative and the financials by clicking December 2019 EPC Financials.
Rev. Craig Williams opened the meeting in prayer followed by our financial elder Jim Hicks who shared the financial summary with us. He shared the annual report and year end financials. These are the slides that were shared during that section including the 2021 projections. Jim recapped this last year and summarized the last few years of finances, reminding us that we have no debt and no outstanding loans.
As a reminder of the resources this church has generated over the last few years, the local and global Mission Giving was shared below.
The $379,471 over the last 3.5 years spent on Missions was detailed in our last year’s meeting which you can read about HERE.
Even though our attendance trend is going down, the average giving per person is going up and people are giving quite a bit more than they were five years ago.
The above slide shows the cash we spent over the years. It’s worth noting that a few years back, session decided that we needed to have a $150,000 reserve, and if we approached that threshold, we would have to make significant changes.
The projections for 2020 and 2021 as detailed above have been based with all things being the same, excluding chairs and also accounting for the change for Craig’s salary. The full effect of Craig’s salary would mean we basically break even in 2021 assuming giving was the same.
During the question and answer period we covered a variety of subjects.
We were asked what do we attribute our deficit spending, to which it was answered that we set an ambitious budget but overall it was under giving. Additionally, the undergiving is due to attendance. The trend is that individuals are giving more but the attendance is still going down. We don’t know how attendance and giving will change and the projections do not take into account a decrease in attendance. Session will be diligent and proactive in financial stewardship. We also budgeted $60,000 in bequeaths this last year, which was also ambitious. It was clarified that the projections would assume no raises for staff and no increases in medical insurance.
Some noticed that the numbers were different than they have been in the bulletin. That is because these are the most recent; we also had a big December and didn’t spend as much as we were tracking that month.
The motion to accept the annual report and financials as they are was accepted.
The second motion of the of evening was put forth.
Craig spoke to this motion and the journey of how did we get here?
We have continued to deficit spend over several years and it was used in investing and stabilizing our staff, mission and congregation. When Session decided that we would not go below $150,000, representing about three months of staff salary, we paid attention to that marker. In August we saw that looming and knew big changes had to happen.
Most churches are going through what we are. Our staffing model is for a growing church and since attendance is decreasing, the model needs to change. We can no longer be a two full time pastor church financially. Most churches our size do not have two pastors. We also have several full time staff members.
Ultimately, Craig knew that the only salary that made sense to remove was his own. It still doesn’t solve the whole issue, but it does allow for continuity in leadership, sustainability and the least amount of interruptions in the work of our church.
We then heard from a few members of Session
Eleana shared some thoughts on the journey.
From the beginning, both pastors put their positions on the table. This decision was made with no foul play and was truly an act of self sacrifice. Everyone had hoped to keep as much in tact as possible for the benefit of sustainability.
Steve continued to share his admiration for the relationship he has witnessed between David and Craig, it’s not seen often among pastors. He shared the pain that comes with this decision for all and the respect he has for the example the pastors are setting for our congregation.
Bill added his admiration for Craig. He never attracts attention to himself, he shares it with the Session, David and the members of Emmanuel.
Before the vote, a question was asked surrounding the potential of increased giving. If giving was at an increased level, would Craig be staying? He confirmed that he would not have stayed forever, but perhaps a little longer.
When the vote was taken, 98 members voted to accept the motion to request that the Presbytery would dissolve the relationship of pastor with Rev. Craig Williams. Two members voted no.
After the vote, people were anxious to talk about what was going to happen next. Craig shared the typical Pastoral Transition process with the congregation along with the time line this process would take as n0ted below.
As we can not sustain a two pastor model, if an interim is hired, we would ask our associate pastor to resign. Once we would have the interim pastor, we would then need to start the process to call an installed pastor. This process is detailed below.
Overall this full process would take two to three years.
Alternatives to this route have been identified by Craig, David and the Committee on Ministry.
First, we could request David become installed pastor. For this to happen, a vote on the floor of Presbytery with 2/3 majority would need to take place. There would be no guarantee how that vote would fall.
Second, we could hire David as a designated pastor with a two year commitment. This period would give the congregation and David the opportunity to decide if we wanted to continue with this pastoral relationship. At the end of the two years, Emmanuel could extend the contract, do away with the designated pastor contract and hire him as pastor, or walk away from the relationship all together. It will likely be apparent before the two years is over if this option is not a match and we can work together to start the traditional search process at that time.
The two year designated pastor position gives Emmanuel the chance to not worry about the ongoing work of the church and will also let us feel what it’s like to be a church with one pastor who knows us well.
This option will be presented to Presbytery for their approval most likely on February 8, 2020. This vote only needs a majority approval.
There are many benefits to the alternative process as detailed above.
A question and answer period was opened where two main things were discussed. First was the understanding of the presbytery.
When we talk about “presbytery” those who will be voting on this alternative process, it means a collection of churches in the Santa Barbara area, about 20. Presbytery is not an entity, but is “us” the pastors of the churches and their voting elders. At Emmanuel that means Craig, David and three of our elders will be included. The total number is 60-75 people and Emmanuel has a great relationship with the presbytery. Not all of the 60-75 people will show up for this particular meeting on the 8th, we would need the majority of those in attendance to approve David as our designated pastor.
Session has been in conversation with presbytery on this issue since October and we are confident in our relationship. The best thing we can do on the 8th is to stay home and pray for their wisdom and guidance.
The second issue was concern for David’s thoughts on this process.
He recognized that this is a hard season and a big loss. He openly shared that while he is terrified and anxious there is challenge and excitement as well. In Craig resigning we get to keep our stable staff, and while we do need to look at our staffing model, this gives us the gift of time. He knows he is not alone in his commitment; this congregation is dedicated and talented and he desires work collegially with the members of Emmanuel. He encouraged everyone to be open to however the vote goes on February 8th. If it is deemed unwise for him to fulfill this position here, God will provide the right person. Presbytery’s vote is way to listen to God’s voice; He is in charge and it’s going to be okay.
At this point, David and Craig left the room so we could vote on their annual salaries. These are the same as presented for 2019 and are detailed below.
The terms of call were accepted as presented.
The afternoon meeting concluded as Kevin led a prayer for Craig and Dee and those present surrounded them and shared additional prayers for this next step on their journey.
