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A quorum was established with 58 voting members attending.
The meeting was called to order by President John Natterstad at 1:05pm.
Rick Hart led the opening devotion.
Unfinished Business:
Mortgage Reduction Proposal-Roy Wenzel mentioned that our current mortgage is approximately $985,000 with a monthly payment of approximately $8975. We currently have close to $600,000 held in Certificate of Deposits and Money Market accounts that Bly Wilcox bequeathed to us to be used toward the building fund. Roy said if we use $500,000 of these funds to pay down the mortgage and re-amortize the remaining balance of the 6% loan this would lower our monthly payment to about $5000, freeing up the budget by approximately $50,000 annually.
Roy Wenzel made a motion to have the congregation authorize the Finance Committee to apply $500,000 currently held in CDs and Money Market funds at Frontier Bank toward the principal of the mortgage. Ron Gierhan seconded the motion. A time of discussion was allowed and the following is a recap:
Q: What is the current interest rate of the CDs and what is the remaining term of the CDs?
A: One of the CDs has matured and the funds are being held in a money market account and the other CD has approximately two months remaining at a 5.75% rate.
Q: Could we use the interest from the CDs to make additional payments to the principal instead? This would allow us to keep the $500,000 in our reserves.
A: Our initial agreement with Thrivent Financial is we can only make one extra payment to the principal per year.
Comment: If the mortgage is at 6% and the CD is at 5.75%, it is almost a wash. It makes sense to pay down the mortgage.
Ron Sailer motioned to end discussion and call for the question. The motion was seconded. The motion passed unanimously.
The motion to use the $500,000 CD money to pay down the mortgage principal was approved.
Adoption of the 2008 Budget-Roy Wenzel covered the proposed budget. Total income for 2008 is projected at $690,000 with expenses budgeted at $687,565 leaving a positive income balance of $2435 for 2008. Roy briefly explained the interim positions listed on page 4 of the budget and asked the congregation to refer to the “Assumptions to The Bethlehem 2008 Budget Spreadsheet” for a full explanation.
Roy Wenzel made a motion for the congregation to adopt the preliminary 2008 budget. Ernie Fosse seconded the motion. Discussion ensued and after further review of the budget several errors were discovered on the budget sheet.
Barbara Lyman made a motion to refer the budget back to the Finance Committee to correct the errors. Mark Schrier seconded the motion. The motion carried with 32 in favor and 31 opposed.
Ernie Fosse moved that the council be authorized to operate under the current 2007 budget within the giving of the congregation until a 2008 budget is approved. Barbara Lyman seconded the motion. The motion passed unanimously.
Comment: John Natterstad stated it is the council’s responsibility to ensure the accuracy of the budget before it is presented to the congregation. The council also needs support from all of the committees to review the budget and verify the numbers listed for their ministries are correct before seeking the congregation’s approval of the budget.
Comment: Barbara Lyman reminded the congregation that many people have spent long hours on this budget and have made several changes along the way as needed. It is important for the committee members and us as individuals to proof these numbers. We need to thank these people for the hours they have volunteered in putting this together. We are all an extended family in Christ.
Ron Sailer moved to adjourn the meeting. Mark Schrier seconded the motion. The motion passed unanimously.
President John Natterstad led the closing prayer.
The meeting adjourned at 2:01pm.
Respectfully Submitted By,
Michelle Bach
Council Secretary
Attachment:
Assumptions to the Bethlehem 2008 Budget Spreadsheet
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