United Church of God, an International Association

Council of Elders Quarterly Meeting

Cincinnati, Ohio

Tuesday, February 26, 2013

Chairman Robin Webber called the morning session to order at 9:00 a.m. and asked on John Elliott to deliver the opening prayer. He then introduced Strategic and Finance Committee chairman Bill Bradford to conduct the following discussion.

Strategic Planning and Finance Committee Review of the Strategic and Operations Plans and the Budget—Bill Bradford

Mr. Bradford reported that the Committee believes that the administration has submitted a balanced and conservative budget for the coming fiscal year. The budget is especially conservative about anticipating an income increase as well as rebuilding reserves. The expectation is that the reserves will rise, although not be completely replaced, over the coming year, thus the budget is planned to stabilize our finances during that time. After a lean year, we expect that measured increases may be made in our expenditures for the gospel and congregational care.

The budget cuts we have made will force us to do many things more efficiently and to rely on God in faith to supply our needs in media and other areas going forward. Patience will be necessary on everyone’s part as we monitor our expenses and still move forward doing God’s work.

The reductions in media and international areas will remain. However, plans are to increase U.S. pastor’s mileage reimbursement to from the present 40 cents to 45 cents per mile as of July 1. Later this year some of the losses of benefits to employees will be restored to a measured degree. And even though our legacy costs will also increase somewhat over the year, the budget is designed to put the Church on a stable footing.

Mr. Bradford expressed the Committee’s recommendation to the Council for the approval of the proposed 2013-2014 Budget.

Operation Managers Presentation on Revised Objectives and Strategies—Aaron Dean, Victor Kubik and Peter Eddington

Treasurer Aaron Dean went over the budget in detail and answered questions. He reviewed the projected cash-flow chart. Regarding legacy costs, he explained that as people grow older and when those who can migrate to Medicare, our healthcare costs will stabilize significantly.

He outlined certain physical plant maintenance for the home office for the updating or replacement of critical things including the lecture hall floor covering to two of our older air conditioning units. The Budget he pointed out is now broken down considerably more than past budgets so the Council and GCE can more clearly see where the funds are assigned.

Gary Antion commented that when the administration restores some employee benefits, the Council should also express their appreciation for the employees’ willingness to make significant sacrifices for the good of the work. Mark Mickelson stated that the generosity of the brethren in the special offering really made the difference in enabling this positive, conservative budget. Mr. Dean mentioned that most of the cuts were in media rather than the fixed costs, but that we do anticipate that we may be able to restore limited amount of print advertising—because that is one of our main sources of donors and coworkers.

Roc Corbett appreciated that the projected budget is compared month to month to the actual income of last fiscal year, rather than to what was budgeted. Mr. Dean also reminded the Council that we do have assets like the Texas property, it’s just that it isn’t readily liquid.

Vic Kubik then presented the Ministerial and Member Services (MMS) budget and his “Plan for Work” (a functioning display of the strategies and operations plan for MMS). He identified the 11 key focus areas that MMS is responsible for or participates in, and proceeded to review the “Plan for Work” chart. He wants to run the operations like he does his personal finances—always knowing how much he has in the bank before making a big expenditure. Plans call for an evaluation assessment that is productive for pastors. He stated that we are also always on the lookout for new and qualified pastors.

Another item on the chart was to improve the training for the ministry. A year ago we faced a major question about ministerial training center, but after a conversation with Don Ward, the online ministerial training program came about. It’s an effective and economical system since the cost to run the Webex service (for the online classes) for a month is less than the cost of renting a hotel room for one night.

Dr. Ward suggested that he alter the ministerial policy planning for developing effective educational programs (including mentoring future ministers). He stressed the need to not mistake informational for educational. Roc Corbett, who is one of the 25 current students on the Ministerial Training Program, commented that it has been highly beneficial for him and his church area. Mr. Kubik agreed that programs in action are the real need, rather than just policies on paper.

Mr. Antion stressed the need to build funds into the budget to provide systematic training of ministerial trainees since the ministry is getting older and we must have younger men coming along. Mr. Kubik agreed, but said that, in the current economizing, all such training has for the moment been cut to the bone.

Continuing through the chart, he pointed out a plan to increase the quality of speaking and presentations at the Feast of Tabernacles. It is a hugely important event into which 10 percent of our annual income is invested. We need to increase its vital, spiritual impact.

He then identified several other items on the chart: Women’s Services, Youth and Young Adult Services, international areas served by MMS, communications—especially an upgrade for the Ministerial Journal, and the Good Works Program. Mr. Antion suggested a future position that will be needed is an international liaison to coordinate with senior pastors and all the international areas.

Peter Eddington took the floor to discuss the budget regarding media. He began with a review of the objectives of the operations area. Among other things, the plan is to finish the Bible Reading Program for the Old Testament and begin the New Testament. Plans also call for “Web-first” content—which means to publish articles, etc. on the website first, then send the choicest items to print. Also progressing is the programming of ucg.org to “mobile-first” technology for ease of reading on phones and tablets is. He concluded his review after responding to questions about details of the Operations Plan.

Budget discussion—Aaron Dean

Mr. Dean opened the floor for more questions and discussion of the Budget. Several encouraged the restoration of retirement matching funds as soon as possible. John Elliott asked about the few employees who qualify for Medicare who have not yet signed up for it, since doing so would lower the Church’s healthcare risk. Mr. Dean pointed out that we cannot by law coerce or incentivize that decision, but that Medicare does serve qualifiers’ needs quite effectively.

Mark Mickelson asked what the plan was for restoration of key budget cuts, when the income warrants. The answer is that the administration will draft such a plan. Mr. Antion suggested that we should remain concerned about stabilizing the reserves first, and then consider what to restore. Mr. Eddington pointed out that an unofficial restoral list already exists within the administration. Mr. Elliott cautioned about the national and international economic downturn and said that we should continue to focus on rebuilding our reserves.

Roc Corbett commented that, although he appreciates the optimism about future increase, he thinks that we should also give considered thought to what additional, strategic cuts may be needed, given the times and the economy. Several Council members asked for more detail about the Texas property. Mr. Dean explained that we have reduced the price to a more realistic level for the 81 acres. It is being actively advertised and marketed.

Bill Bradford commented that the reason for requesting a special offering is to maintain our current model of doing God’s work. He recommended that we consider a more extreme financial crisis and how we can continue to function. Mr. Webber stated that the Council and administration does a critical strategic planning exercise. Mr. Antion reminded all that, using the model of the Church in Australia, we do have a serious risk assessment already underway. Mr. Dean commented that he is not as worried about income—due to the U.S. government printing volumes of money—but will those funds be worth much?

Mr. Antion said that historically God has provided what we needed when it was needed. Darris McNeely pointed out that the first UCG budget put together in Indianapolis in 1995 was for $17 million and, after all we’ve been through, here we are now putting together a budget of $16 million—but we are still here. Peter Eddington said that we are not planning for doomsday, but that our budget is very lean and in fact we have a several percent increase coming in.

After the lunch break Mr. Webber asked Carmelo Anastasi to open the afternoon session with prayer.

Ballot on the Strategic and Operations Plans and the Budget

As chairman of the Strategic and Finance Committee, Bill Bradford moved that the Strategic Plan as presented that morning be officially approved by the Council, so that it can go on to the GCE in May. After brief discussion of only one point, the ballot taken was unanimous. Mr. Bradford then moved that the Operations Plan be accepted as presented. After a question asked of the operations managers, discussion ended. The ballot was unanimous. Finally, Mr. Bradford moved that the Council approve the Budget as presented. There was no discussion, and the ballot was unanimous.

The Council then moved into executive session for the remainder of the day.

-end-

Randy Stiver

Council Reporter

© 2013 United Church of God, an International Association