Opening Words April 2016 Host Pastor welcome Eastern PA Conference - - PowerPoint PPT Presentation

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April 2016 Eastern PA Conference United Methodist Church Redistricting Conversations Opening Words

• Host Pastor welcome
• District Superintendent welcome
• Bishop Peggy A. Johnson - devotions

Celebrations of our Ministries

Kathyrn and Lynda Commale Imagine No Malaria 2015

Celebrations…

Planting Seeds Hopewell UMC Mike Slaughter

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Celebrations…

Watoto Ugandan Choir,

• St. Daniel’s UMC

Full of the Holy Spirit Youth, Adjourned Session 2015

Celebrations…

Delaware Conference Anniversary

Celebrations…

Ministry of Deaconess Lumina

Celebrations…

Committee on Native American Ministries

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Celebrations…

Camping and Retreat Ministries

Celebrations…

T

• ols for Ministry

Celebrations…

EPA Youth Rally 2015

Celebrations…

Prison Ministry Cards Clergywomen Gathering

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Celebrations…

Clergy Lenten Day Apart 2016

Celebrations…

Arrival of Mid-T

• wn Parish Modulars

Celebrations…

Hope Campus of Grace Macungie Campus of Bethany

Rationale for Redistricting

• Pre-1982 Pension Liability
• EPA Statistics
• Financial

–Apportioned Funds –Billed Funds

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Pre-1982 Pension Liability

• What is it?
• Why do we have it?
• When will it end?
• Who pays for it?

Resolution #2012-21 Refresher

• Conference strategy

–fund the Pre-1982 Pension obligation at 100% by 2021 –restore Trustee and Conference reserves

• Goal: Raise $14 million over six years

using 3 tier action plan

Resolution #2012-21 Refresher

• Tier One:

–Operating budget expense reductions –Projected contribution: $3.9 million –12/31/2015 status: $1.3 million

Resolution #2012-21 Refresher

• Tier Two:

–Fulfilling our Covenant campaign –Projected contribution: $3.0 million –12/31/2015 status:

• $3.9 million pledged
• $2,678,000 contributed

–$707,000 paid out in expenses and local church earnings –$1.971 million total net (65%)

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Resolution #2012-21 Refresher

• Tier Three:

–Proceeds from church sales (not urban)

• 50% - Pre-1982 Pension Plan Funding
• 25% - Conference Board of Trustees

Reserve

• 25% - New Church Development and

Re-development

–Projected $6.3 million in six years –12/31/2015 status: $0.3 million

Unfunded Pre-1982 Pension Liability Update

Liabilities Assets

Clergy with Pre-1982 Service Surviving Spouses Investments at GBOPH Investments at EPA

EPA Statistics

2012 2013 2014 2015

# of Churches

444 439 429 417

# of Members

113,192 111,103 107,849 102,348

Avg Attendance

41,819 40,500 39,905 36,506

Churches paying 100%

• 2012 – 269 (out of 444 churches) 60%
• 2013 – 272 (out of 439 churches) 62%
• 2014 – 277 (out of 429 churches) 65%
• 2015 – 275 (out of 417 churches) 66%

142 churches are not paying 100%.

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Financial Challenges

• Conference Office: Centralized

Resource

–Conference-wide Ministry –Clergy and Lay Employee Benefits

• Medical and Retirement

–Church Property Insurance

• Conference Office: Bill and Collect

EPA’s Financial Background

• 2015 Budget: $17.5 million

–$6.6 million apportioned funds

• General Church Fund (GC)
• World Service Fund (WS)
• Connectional Ministry Fund (CMF)

–EPA Ministry, operating budget

–$10.9 million billed funds

• Clergy/Lay Medical and Retirement
• Church Property Insurance

EPA’s Financial Challenges

• 2015 Budget: $17.5 million
• 2015 Collected: $15.4 million
• 88% Collection Rate
• EPA did not pay $450,000 –GC, WS
• Did not Spend $203,000 - CMF
• Borrowed $1.1 million from providers

–Over 30-days past due –Medical, Retirement, Property

EPA Short-Term Solutions

• EPA Board of Pension

–Advance on 2016 payment: $325,000

• EPA Trustees and Conference

–Reserve Draw: $253,000

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Connectional Ministries Fund

$3.6 $3.5 $3.4 $3.3 $3.1 86% 85% 86% 86% 84.6% 83% 84% 85% 86% 87% 88% 89% 90% $2,900 $3,000 $3,100 $3,200 $3,300 $3,400 $3,500 $3,600 $3,700 2008 2009 2010 2011 2012 2013 2014 2015

CMF $ Collected Collection Rate

Billed Funds Collected

$11.6 $12.5 $11.4 $10.0 $9.8 93% 91% 93% 92% 90% 89% 90% 91% 92% 93% 94% $9,500 $10,000 $10,500 $11,000 $11,500 $12,000 $12,500 $13,000 2008 2009 2010 2011 2012 2013 2014 2015

BF $ Collected Collection Rate

What Can We Do?

• Increase income

–Increase Charges to the churches –Increase Collection Rate

• Decrease expenses

–Reduce Ministry and Programs –Redistrict from 6 to 4 –Eliminate Conference-run Benefit and Insurance programs

• Medical and Church Property insurance
• Faithfully collect historical balances

Other Pertinent Realities

• Aging buildings with maintenance

issues have been deferred and utility costs have been overwhelming

• Church closures and downsizing are

resulting in decreased apportionment payments

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Other Pertinent Realities (cont’d)

• Missional churches that are

successfully reaching the poor in large numbers are unable to sustain a full time pastor

• Guaranteed appointments necessitate

equitable salary dollars and other subsidies

Other Pertinent Realities (cont’d)

• Conference staff and program budget

have been downsized to bare minimum yet Conference committed to serving the ministries and missions

• f the conference

District Downsizing

Year/Conference Name Previous Current

2010 - Up NY Indiana Dakotas Balt/Wash Cal-Nevada 17 18 5 9 7 12 (merger) 10 4 8 4 2011 - Detroit Virginia Central Texas 7 18 7 6 16 6

District Downsizing (cont’d)

Year/Conference Name Previous Current

2012 – Arkansas Cal-Pac

• N. Carolina
• W. Carolina

Susquehanna 9 8 12 15 11 5 5 8 8 7 (merger) 2013 - Memphis Missouri Oklahoma 7 12 12 4 9 8

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District Downsizing (cont’d)

Year/Conference Name Previous Current

2014 - Great Plains South GA 23 9 17 (merger) 6 2015 - Kentucky Wisconsin Oklahoma Rio Texas 10 8 12 12 9 5 8 7 (merger)

DS to Church Ratio

Average number of UMC churches per DS from similarly-sized districts across the US: 108

Proposed District Realignment Who does what?

It is the responsibility of the annual conference membership to determine the number of districts

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Who does what?

It is the responsibility of the bishop to form the districts after consultation with the district superintendents and after the number of the districts has been determined by vote of the annual conference (Para 415.4, Book of Discipline 2012, Judicial Council Decision 422)

6 Districts

Central – dk blue East – light blue NE – yellow NW – red SE – purple SW - green North – blue East – red South – green West – orange 417 churches

4 Districts North District – 112 churches

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East District – 96 churches South District - 104 churches West District – 106 churches

18 Latino, Korean, Multi-Ethnic Churches

Bensalem:Korean Glenside:Korean Prospectville:First Korean Bethlehem:Korean Lehman Latino El Mesias Espiritu Santo La Trinidad Buen Samaritano Cristo Rey Nueva Creacion Nuevo Nacimento Solid Rock Bristol First Arch Street New Life Church of the Open Door Crescentville

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Bickley’s New Beginning Devereux Memorial Emmanuel Grace Haven Peniel Janes Memorial Mid-T

• wn Parish

Mother African Zoar Mount Zion New Vision Servants of Christ

• St. Barnabas – Bethsaida

Tindley T emple

• St. Thomas

Trevose Berry Long Memorial Camphor Memorial Clearview Eastwick Sayers Memorial Simpson-Fletcher Wharton-Wesley Grace Community Chester Siloam

• St. Daniels

Darby Mt. Zion Darby Union Mem.

27 African American Churches

Timeline District Meetings

• Mon. April 4, 2016 –7:00 pm –Elam UMC (Southeast)
• Tue. April 5, 2016 –7:00 pm –First UMC in Phoenixville

(Central)

• Tue. April 12, 2016 –7:00 pm –First UMC in Schuylkill

Haven (Northwest)

• Tue. April 19, 2016 –7:00 pm –Huntingdon Valley

UMC (East)

• Mon. April 25, 2016 –7:00 pm –HopeUMC in Ephrata

(Southwest)

• Wed. April 27, 2016 –7:00 pm –Quakertown UMC

(Northeast)

Timeline

June 16-18, 2016 October 1, 2016 Conversations will continue at annual conference in Lancaster (no vote taken) Adjourned session

• f annual

conference at Bethany Macungie Campus (vote taken)

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Timeline

Oct 1, 2016-June 30, 2017 July 1, 2017

Continue with 6 districts; if reduction is approved, transition work will begin If reduction is approved on Oct 1, 2016, we will

• fficially begin living

with 4 districts

Frequently Asked Questions

How much money will this actually save the Annual Conference?

• Approx. $441,000 gross savings

–$44,000 (used for travel, stipends, and modest pay increases)

• Approx. $397,000 net savings per year

Have you considered downsizing by

• ne district and not two?
• Yes. Geography and natural affinity of

communities in the conference does not lend itself to five districts

• The savings would not be significant

enough to warrant the effort.

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Would there be any advantages in having DSs serve local churches in addition to the superintendency?

• No. The responsibilities of a DS

(especially in light of the 2012 changes to add missional strategist to their mandate) are too time-consuming; appt- making availability is critical

• No relevant cost-savings

Will our apportionments go down if we vote for 4 districts? Will there be any apportionment adjustments to the local church?

• No.
• Any savings will be used to meet

conference obligations

• Don’t forget, your local church

apportionments are based solely on your church’s budget NOT on the conference

• ffice budget.

What DSs and DRAs will be affected?

• Rev. Gary Nicholson (NW District) is

returning to the parish in July 2016. Rev. Joe Tyson is the interim for one year.

• Rev. Dr. Anita Powell (Central) will be

completing her 6 years in July 2017 and will return to the pulpit.

• Two DRA positions would be eliminated;

severance packages would be offered per guidelines listed in the EPA journal.

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What types of support will be provided to the remaining DSs?

• Services of a transitional consultant
• Modest increase DS pay and travel
• Additional financial resources to support

mission and administration ($4,000/DS)

What types of support will be provided to remaining DSs (cont’d)?

• Programmatic assistance will continue

from the Conference Office (communications, workshops, camp and retreat ministry, congregational development, youth/young adult, etc.)

• Teleconferencing technology will become

available to facilitate clergy and lay meetings

• New Technologies being used as part
• f our Financial Leadership Academy

and its Investment Operations

• -Video Programs
• -Video Conference Calling
• -Distance Learning
• Expanding to:
• -Mobile Web for Smart Phones and

Tablets

• -Video on Demand for Programs and

Education

• -Live Streaming of Client Updates and

Workshops

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• Expanding to:
• -Distance Learning for Continuing

Education Delivery and Small Group Programs

Funding for this initiative is made possible through the Foundation's Investment Operations not through Conference Apportionment

How will this change impact the DSs?

• Will continue to fulfill responsibilities as

stated in ¶419 of 2012 Book of Discipline in the context of the vision and mission of EPA

• Spend more time building up

mission ConneXions and/or other small groups using local and connectional resourcing (i.e., Mission Insite/Bandy) to promote vision/mission

How will this change impact the DRAs?

• If approved, revised job descriptions and

a modest pay increase for 4 DRAs will go into effect July 1, 2017.

• All 6 DRAs will continue to be employed to

assist with the transition until Oct 1, 2017.

• Severance packages will be provided for

those exiting as per journal guidelines.

What will happen to the District Parsonages and District Offices?

• A committee to study the needs and

locations of the current 4 parsonages compared to the new geographic areas

• Recommendations will be shared at

Annual Conference in June 2016

–relocation, closure, housing allowance vs parsonage

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What happens to all laity/clergy on conference/district agencies, boards, committees, etc.?

• They will all stay on, if they so desire,

until the transitions are complete and they are integrated with conversation and grace.

• The agencies, boards, committees will

need to decide how to reorganize themselves.

What happens to all laity/clergy on conference/district agencies, boards, committees, etc.? (cont’d)

• Having more people willing and able to

serve is always a blessing!

• For District Committees on Ministry, will

be followed regardless of district to ensure continuity. DSs will collaborate with the Board of Ordained Ministry.

Suppose we get a new bishop and are aligned with a different annual conference in September?

• The decision to reduce the number of

districts is being scheduled for October 1, 2016, to also allow for the possibility of new bishop’s consideration and study

• The position of the Executive Assistant to

the Bishop could be eliminated

Any Comments/Questions

(send to Amy Bottiabotti@epaumc.org)

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Change…

• is difficult.
• is personal and collective.
• highlights the losses we will

experience – regardless of any potential gain or positives.

Jesus’ resurrection…

• teaches us that change

–brings about a new way of life –conquers loss –is not the end, it’s another beginning

Closing Prayer Conference Lay Leader