PEMBINA PARISH UNITED CHURCH. Pembina Parish Property Discernment Interest Group Report

Transcription

1 PEMBINA PARISH UNITED CHURCH Pembina Parish Property Discernment Interest Group Report February 2018

2 1 Executive Summary The Property Discernment Interest Group, struck by the Pembina Parish, was tasked with considering the potential future demands, needs, wants and viability of the existing building facilities at St. Pauls and Zion Calvin United Churches. Our committee established that we should, at a minimum, become informed on the following prior to presenting recommendations for the congregation to faithfully consider: 1. Consider the current and future needs of the congregants in support of their Christian journeys. 2. Consider the opportunity for engaging the local communities in extending the use of the facilities, including examining social needs and potential rental, lease opportunities. 3. Consider the viability of maintaining the facilities given the current and future projected budgets and expected trends in congregation demographics and stewardship. The Committee initiated and concluded the following consultations: 1. IMNA Survey (Identity Mission Needs Analysis), which was arranged thru the United Church of Canada EDGE office. 2. Viability Report, which was arranged thru the United Church of Canada EDGE office. 3. Community Round Table, which was an invitational session involving invited community leaders & groups. 4. One on one consultation with Zion Calvin leader(s). 5. One on one consultation with Morden and Thornhill UCW leaders. 6. One on one consultation with St. Pauls Sunday School leaders. 7. One on one consultations with current lessees of the St Pauls facilities. 8. Interviews with other United Church representatives which have undertaken recent facility discernments (e.g. Roland, Immanuel (Kildonan), and Augustine (Osborne Village)). 9. Inventory of existing facility assets and usage. 10. Informal conversations with selected developers. 11. Presentations to the congregations of Zion and St Pauls.

3 2 Key learnings from the consultations that supported/emphasized the need for the discernment process and an informed go forward plan: IDENTITY, NEEDS AND MISSION 1. Most of our congregation are seniors (with 75% of our congregants being over the age of 60). 2. Our congregation has a strong desire to attract more young people/families to Pembina Parish. 3. Our congregation considers itself welcoming and open to diversity. 4. Our congregation values traditional worship, with music, preaching and prayers. 5. Our congregation values pastoral care, especially given our demographics. 6. Our congregation does not embrace outreach as fully as it might. 7. Our congregation has engaged the local community over the years. Many of our members are very involved in the community outside of the church. The committee identified several current needs/opportunities within our own community of Morden that would benefit from our ability to do more outreach work, particularly with new citizens to Canada and young children/families. 8. Our congregation values Mission and Service of the United Church of Canada. 9. A renewal of our Vision and Mission is in order, as part of moving forward with all decisions on Ministry and Facilities. FINANCIAL CONSIDERATIONS: 10. Over 80% of our givings are from Parishioners age 60 or older. Older congregants, on average, give slightly more to the church per person/family than do younger person/families. 11. Given Pembina Parish demographics and trends we consider declining attendance (e.g. both age related and church not being as relevant as it once was) will be the norm going forward over the next 10 years. If that assumption is true we can anticipate a consistent decline in our revenues, along with the projected increase in expenses (salaries, building, etc.). 12. The result of the observed trends will result in a financial challenge (operationally). Even without considering the anticipated building upkeep costs the projected accumulated deficit could exceed $350,000 over the next 10 years. Options need to be explored to prevent this deficit. BUILDING CONSIDERATIONS 13. The physical space within the St. Pauls facility is underutilized. The group identified close to square feet of space which could be considered for additional lease revenue. 14. The cost of operating Zion Calvin s church building is not significant to the viability of the Pembina Parish (Zion building operating costs currently run annually around $6,000 per year or about % of our total building operation costs). 15. Zion already has sufficient funds to complete anticipated structural repairs required to maintain building safety and integrity. Zions designated reserves (opportunity fund) of $33,000 + $35,000 in Heritage Funding has ensured the integrity of the Zion Calvin building has and will be maintained for at least the next decade. 16. The cost of operating/maintaining St Pauls church building is significant at about $43,000 per year (88% of the Parish s total operation costs for buildings, Zion is the other 12%). 17. The projected repair costs for St. Pauls over the next 20 years is over $600,000. Some significant repairs will be considered necessary or desirable within 5-10 years; a budget of $35,000 a year is recommended to cover the anticipated costs for the next decade at St Pauls. This projected cost has NOT been budgeted for in recent years.

4 3 OUTSIDE CONSULTATIONS/ RESEARCH 18. Several United Church congregations were visited to see how others in Manitoba are meeting their building/financial challenges. All three churches (Roland, Augustine and Immanuel) had smaller congregations and budgets then Pembina Parish. Two of the three churches had one minister and one had ½ time minister. Roland United has recently built a 4800 square foot church and is paying off a reasonable mortgage. Immanuel United occupies at 6600 square foot building (likely closer to 8000 useable square feet), and has sold about 2/3 of its property to a local developer; the proceeds will be used to meet operating deficits. Augustine occupies a historic 20,000+ square foot church and is ambitiously undertaking a $6 M fundraising scheme to rehabilitate the church and secure long-term leases with a daycare, a soup kitchen, and a professional dance troup. 19. Other churches across Canada have undertaken similar or more radical redevelopments of their property. Many United Churches sit on expensive real estate (e.g. Augustine). 20. Proceeds from property sales CAN be utilized by the local congregation with approval of Presbytery. The committee has considered several options for Pembina Parish going forward, none of which will guarantee the future of the Pembina Parish congregations. It is up to the Pembina Parish congregants which direction more effort should be directed towards. This is the subject of up coming consultations and the annual meeting in March, St Pauls Option 1 Selling a portion of the property for short term cash to hedge against building repairs. This is considered a short-term fix. Option 2 Selling/leasing the whole property, and lease/maintain access to a smaller space (e.g. re-configured offices and multi-purpose sanctuary). This has potential to be a long-term fix; not unlike retiring to a Condo property. Management and upkeep by others. Significant changes to the building and property could result. Option 3 Selling the whole property and building a right-sized new facility. This is the Roland model; could result in decreased building operational cost. There is a need to compare projected repair, renovation, operation and maintenance costs vs. net proceeds (sale new building). This option would result in loss of control to future of the St Pauls building. Option 4 Redevelop a % of the building for lease developments. Additional revenue to offset additional repairs anticipated and portion of the building operational costs. A rough guess would be an additional $30,000 to $40,000 in revenue (annually).

5 4 Option 5 Actively pursue a multi-faith initiative to invite new co-location of additional faith communities; including additional lease revenue, redevelopment and even joint ministry. The United Church of Canada and the Anglican Church collaborate on ministry as does the broader churches Many local congregations of Anglicans and United Church people are a part of ecumenical shared ministries, and many of our ordained leaders train together in ecumenical schools of theology. At the national level, our two churches work together in ecumenical justice and advocacy initiatives. As a starting point it may be worthwhile to consider IF Option 2/4/5 could meet goals of sustaining and growing the congregation, partnering to meet potential community needs and bring further revenue targeted to maintaining the structure for future generations, multifaiths and/or community service. It is recognized these options will take the most volunteer/administrative and financial support from the current congregation in relation to Option 1 or 3. Option (6) - Continue as is. Without significant additional volunteer initiatives to identify the needs and provide programing for young families within our church to promote growth we can expect continued decline in the congregation size (and revenue). This option may result in the need to divert funds from ministry to building operations. It still may require major fund raising efforts to afford projected significant repairs that could arise in the short to medium term (e.g. roof). It is recognized that this option doesn t present a strong plan for the medium - long term future. Zion Zion has been actively fundraising and repairing their building with the idea to maintain their congregation at or near the current 20 families. A key priority of Zion is keeping the existing church as a place to worship. Careful monitoring of the ability/desire of the small congregation to maintain the building is recommended. There is a need to identify M & P requirements and expectations and realistic (proportional) draw on resources, consistent with and balancing with revenues.

6 5 NEXT STEPS The next steps are to be determined by the congregation. Consultations will start in February 2018; followed by a broader discussion at the Annual Meeting in March We anticipate a follow up meeting later April 2018 to solidify action items and to move ahead on selected initiatives. Our current financial situation provides some leeway (e.g. 1 2 years) to making choices and progress in defining the Pembina Parish vision for the next 20 years. This luxury of time could allow us to explore more than one option for moving forward. Specific recommendations with respect to next steps are provided at the end of the report, and will no doubt change as part and parcel of the upcoming consultation process. Serious consideration should be given to: 1. Establish a sub-committee to explore Option 2. Consider further focused discussions with developers and/or architects; to enhance understanding of costs, risks and opportunities. 2. Establish a sub-committee to explore Option 4. Especially explore community-based vs. commercial options for lessees. 3. Establish a sub-committee to explore Option 5. Especially consider direct contact with other denominations to open dialogue. 4. Considered a focused ministry position on youth, young families, young adults and diversity. 5. Consider linking building renovations/repairs to larger options. 6. Start a building reserve/capital fund for St Pauls. Link to stewardship initiatives. 7. Establish goals for encouraging, supporting and tracking new membership, and becoming truly welcoming and diverse congregation. 8. Establish a sub-committee to consider rejuvenation of our mission and vision. Through all of this process consider what God is asking of us in our lives as a Christian community.

7 6 Committee Background and Membership The Property Discernment Interest Group was struck by Pembina Parish to review the future of the church buildings and properties, namely St. Pauls United Church and Zion Calvin United Church. The Committee membership included only St. Pauls members, given that Zion Calvin wished to provide their input after internal consultations with their congregants. None the less, given the budget of Pembina Parish is integrated, this report will comment on the viability of supporting all buildings and properties within their budget. Committee membership includes: Rev. Cathie Waldie Rev. Suzanna Bates Earl Gardiner Co- Chair Bruce Shewfelt Co-Chair Marlene Holewka Fred Mayor Leslie Andrew Sue Nelson Ted Nelson Rick Britton Shannon Holenski The committee met approximately monthly over a period of a year, and held many concurrent consultations, tours, and discussion groups. Community discernment sub-committee members included: Linda Fehr Henry Penner Pat Gibson Vera Froese Bob Luger agreed to represent the interests of Zion Calvin and submitted a report on their behalf included herein in whole.

8 7 Identity Mission and Needs Assessment (IMNA) The Identity Mission and Needs Assessment (IMNA) Survey is a tool developed by the United Church of Canada to assist congregations in understanding the mission and needs of their congregations. Approximately 96 congregants culminated in an independent assessment of congregants sense of identity, their spiritual needs and the Parish s mission. The results were presented to congregants at 2 open house meetings (fall, 2017). Additionally, an open discussion was held with a focus group of interested people (spring, 2017) and with young people and parents (fall, 2017). The IMNA survey represents a foundational piece which serves as reference point going forward. It can be used to measure any congregational initiatives with respect to the buildings, relative to the needs expressed by the existing congregation. Several points were immediately salient from the survey: Identity We are an aging congregation. Of the nearly 100 respondents to the survey, approximately 35% were over 70 years of age and 35% were years of age. Consistent with this demographic, the IMNA survey also indicated that we are a Parish that values traditional worship. The congregation supports diversity, which may make us uniquely positioned within our region. Needs IMNA respondents identified the following needs: 1. To increase the number of children/youth/young families in the congregation. 2. To develop real hospitality to make the church truly welcoming (more diverse?). 3. To increase opportunities for children and youth to grow in faith. Mission There is an unclear understanding of who we are and what our mission is. We want to pursue traditional worship and highly value pastoral care, and despite our needs assessment, we lack creative energy in supporting youth and young families (e.g. potentially deviating from traditional norms and forms of worship). Although not identified through the survey, oddly the Parish has been without any volunteers to sit on a worship interest group for a number of years. On a positive note, a new Worship Interest group has recently been formed. Statistics also suggest commitment to some important parts of our mission. Support to fundamentals of faith by: Attending worship (48 % very important, 42% somewhat important, 10% not very important), Embracing outreach (35% very important, 52% somewhat important, 12% not very important) Stewardship (61% very important, 35% somewhat important, 4% not important).

9 8 Outreach is considered very important by less than half of the respondents. None the less the Mission of our church invites us to reach out to the community. More in-depth consultations are warranted on better use of the building space to support community / outreach needs. The IMNA did not directly touch on social justice issues; only indirectly in reference to our interest in the wider community. Further discussion of this may be warranted given the increasing size, diversity and needs of the community, country and world in which we operate. An excellent example of combining social justice and outreach exist in Winkler at the Central Station facility. It may be relevant to explore this issue in relation to young adults and families and a more diverse congregation. We should strive to fully embrace diversity IF this is indeed part of our mission. Appendix A provides some additional information in the form of a summary of the IMNA results. The IMNA can be used as a test going forward to ensure any opportunities and options meet the measure of our congregants. For instance: 1. Sanctuary space is a priority for the Pembina Parish. Music and choir (St Pauls) is important component of worship. Sermons are important in both Zion and St Pauls. This is a significant consideration to any attempt to modify the layout of the St Pauls sanctuary. 2. Funerals and funeral gatherings are important, which again has implications for sanctuary space at St Pauls as well as the CE center. 3. More effort needs to be made to accommodate youth/children/young family needs. Consideration in any modifications to St Pauls should take this into account (e.g. arrangement of front of the Santuary to allow for other types worship (music, theatre etc.) (e.g. accommodation of parents/infants). 4. Sunday school space is important to define and maintain. This applies equally to Zion and St Pauls. 5. Access to multipurpose space for gatherings (e.g. food/community) is important. This raises a question of whether existing St Pauls sanctuary can provide a more multipurpose space? As part of the consultations on this report we should gauge how Mission, Needs and Identity can guide our building discernments.

10 9 Community Needs This sub-committee was tasked with identifying needs within the community of Morden that St. Pauls United Church could consider during planning for the future, both in terms of how the current building may be able to meet these needs as well as services and outreach that could be supported. The process led to undertaking work on how to reconfigure existing spaces to create opportunities for long term rentals (i.e. new revenue opportunities for the Parish). The sub-committee developed a financial project tool (i.e. spreadsheet) for Pembina Parish based on the 2017 budget. From the 2017 budget (which included having two full time ministers); the financial tool can project our income and expenses out for the next 10 years, based on assumptions. The sub-committee also did an audit of the current utilization of each of the spaces within the St. Pauls facility. IDENTIFYING COMMUNITY NEEDS: Our major undertaking consisted of two approaches. First on April 4, 2017 we hosted a Community Round Table meeting at St. Pauls. Over 20 community leaders were invited, with the following guests attending the meeting: Ken Wiebe Morris Olafson Brad Neduzak Karen Chezak Chad Sheldon Dale Ready Henry Penner Lynette Froese Cyndy Kutzner Dan McCausland Ron Wiebe Candace Olafson Shauna Richards James Friesen Harvey Kinsman City of Morden - Mayor RM of Stanley - Reeve City of Morden Police Chief Agassiz Medical Centre - Manager City of Morden Business Development Specialist Morden Friendship (Activity / Senior s) Centre - Director Morden Elks Lodge Regional Connections Integration Worker Western School Division Assistant Superintendent Access Credit Union Regional Mgr of Commercial/Agricultural Lending Ron Wiebe Agencies Morden Chamber of Commerce - Executive Director Morden Community Child Care Centre Executive Director Eden Health Care Services Retired Executive Director Morden Legion

11 10 Attendees were divided into three working groups and facilitators lead the discussions around the following 3 questions: 1. What unmet spiritual needs may currently exist within our community. Also, looking to the needs of new citizens to our community (1 10 years out) what spiritual needs should we be thinking about planning for? 2. What other community needs currently exist and need a place to operate from AND/OR what programs need to be established? For example: social programs, teen health, immigrant services, day care, mental health services, nursery school, after school care, Alzheimer s support, housing needs, food banks, meal programs, etc., etc. 3. What organizations or businesses within our community may be looking for rental space that our church may be able to provide and create revenue from? In addition to the Community Round Table with community leaders we also had our committee members meet one on one with the following organizations using the same question format: - Cheryl Digby (City of Morden s Community Development Officer) - Clare Agnew & Stephanie Dueck (City of Morden s Recreation Dept) - Morden and Thornhill UCWs - St. Pauls Sunday School Leaders - Lynda MacLean (Morden Area Foundation, Morden Corn & Apple) - Cathy Lone (Pembina Art Centre) - Edith Lovatt (Many Hands) - Kathy Menzies (Caring and Sharing) - Wes Hamm (Douglas Kuhl School of Music Renter) These questions lead to discussions that went in many directions and generated a long list of suggestions (many of which were common from group to group) but most of the needs could be but into two common themes. Services for: 1. New Canadians0F0F0F1 services such as: a. English language training, b. Cooking classes, c. Socialization opportunities, d. Counselling services, e. Spiritual needs. 2. Young children (pre-school to teenagers) and their families. a. Day care, b. After school programming (children between the ages of 5-11) somewhere for kids to go until their parents finish work, c. After school or evening programming for teenagers (particularly young teenage girls) that aren t very involved in other after school programs, d. Gym space for numerous children s activities due to other gyms being fully utilized. 1 Morden representatives anticipate that new Canadians will continue to increase over the next decade

12 11 In addition to this information, many of the attendees of the Community Round Table that had either not been in the church for a long time or had never been in it, were surprised at the space that we had and commented on our great location. GENERATING NEW REVENUE SOURCES FROM OUR CURRENT SPACE Based on preliminary review of how we could utilize the space, there is possibility to create 3,000-4,000 sq ft of rental space which could generate $35,000 - $45,000 in additional income. Some investment would be required to improve the space to make it lease ready. No work has been done yet on the cost of doing this. Creating long term, permanent lease opportunities may mean that some current activities that the congregation has that involves the use of the space may have to change. For example, if we were to rent out the CEU Monday to Friday as a classroom, what would we do for funeral lunches or soup & pie fund raisers. Group and Lessee Consultations Additional one on one consultations were held with UCW, Sunday School leaders, Fountain of Life, Music Teachers, Young Families and Zion Calvin leaders. Specific concerns identified. 1. Morden UCW is concerned over access to kitchen and CE unit for funeral luncheons. Any alternatives (e.g. multipurpose sanctuary) should take these needs into consideration. 2. Need space and ministerial support for young families (Sunday School, pre/after school, youth). 3. Young people continue to want Sunday School, but also expressed interest in more informal family/young adult get togethers (e.g. pizza night) c/w kid sitting. They also expressed concern for Sunday service timing and timelines relative to other life pressures (e.g. schedules, length of service etc.). Perhaps alternating times with Darlingford would be an option. Additional effort is recommended to focus on young adult/family needs in effort to grow this sub community and their commitment to the life and faith of Pembina Parish. 4. Fountain of Life is very pleased with their current access and use of the Sanctuary, CE space, Kitchen (potlucks) and Office (second floor). Pastor Michael Greene indicated that they have no short term plans to change their current arrangement and recognize that they have a very reasonable lease fee. Given their access to multiple spaces, their needs require consideration in any modifications to space going forward. 5. Music teachers wish to maintain access to excellent teaching facilities; currently making use of the Library and Sanctuary spaces. The Library square footage is likely larger than required for this purpose.

13 12 Building Inventory A building inventory was completed to identify specific building attributes. The inventory is summarized below with commentary on usage, constraints and some considerations raised. Square footage of each space is not exact. Room Square Feet Current Usage Constraints Considerations Sanctuary 3,800 Worship, funerals, weddings, music lessons, Fountain of Life, concerts? Pews Stage/Choir Loft Multi-purpose? Upgrade front? Downsize? Concerts? Cry Room Offices 600 Ministers, Access No. of staff administrative Library 600 Choir, music, meetings Current set up as library? Narthex 1,600 Gathering, worship/funeral overflow Required for funerals? Lease hold improvement and relocate activities Multipurpose? Expand to library? Storage, meetings Access CE Unit -Hall -Stage 2, Gatherings, Sunday School Funerals Stage not being used Kitchen 530 Gatherings, Outreach, Community Access if CE utilized Funerals Catering Funerals Gatherings Downstairs 364 None Access, space Underutilized Storage? Upstairs 1,280 FOL Office, Sunday School Supplies, Sunday School rooms Access Underutilized Bathrooms 320 Handicap access Diversity Expand Reconfigure Multiple entrances Utility (2 Rooms) 188 Cleaning, maintenance Access Adequate Accounting 110 Accountant, collection Recently renovated Mechanical (2 584 Heat, water Access Rooms) Hallways, etc. 1,474 (estimated) Total 14,874 (estimated) Include in office Part of Sanctuary

14 13 Building Condition(s), Maintenance and Renovations During the past few years, leadership at St. Pauls and Zion Calvin have tried to come to an understanding of building condition and future requirements for maintenance and major repairs or rehabilitation. Current operating costs are broken down as follows: Expense Category St. Pauls Zion-Calvin Insurance $ 6,811 $ 756 Property Taxes 3, Janitorial Supplies 1,432 Electricity 6,838 4,211 Heating Natural Gas 4,286 Water & Sewer 1,840 Maintenance & Repairs 3, Yard Upkeep & Snow Removal 2,210 Janitor Fees 12,796 Total $ 42,997 $ 5,715 Building Repair Fund Reserves Designated as at December 31, 2017 St. Pauls Zion-Calvin Designated Amounts in Reserve $ 21,530 $33,336 The committee reviewed the initial evaluation that was done last year for St. Pauls that suggested that over the next 20 years that we could be looking at between $600K and $700K in repairs and upkeep (refer to detailed list on page 14). The single largest expense was to repair/replace the roof with alone was estimated at $125K.

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16 15 It is considered by this committee that the following costs should be prioritized in a building reserve fund for St. Pauls. Roof repairs $125,000 Walkway Repair 15,000 Interior Painting 30,000 Heating Replace 30,000 Exterior Painting 25,000 Windows 100,000 Flooring 60,000 $385,000 / 10 years = $ 35,000-38,500 per year Various repairs should be prioritized as funds become available. A more detailed capital plan, including the mobilization / use of volunteer labour should be developed. It is considered that the following costs should be prioritized in a building reserve fund for Zion: Roof repairs Exterior repairs (siding and painting) These costs are to be determined. Zion has 2 years left in their access to $35,000 in Heritage funding (which is matching funding); however given the time frame they may not access the entire amount of funding available to them. Matching funds exist ($33,300) in the designated giving. A reasonable estimate of spending at Zion would be: $40,000 / 3 years --- $13,000 per year The current estimated work is as follows (courtesy of Bob Luger) Currently we have a contract for $7,000 to do support work on the bell tower structure and to finish the work in keeping with the general finish of the church interior. Also structural, there is another $6,000 to rebuild an outside door and a window, renew a large flashing where the bell tower and two roof components meet and replace a railing at the top of the bell tower that was removed some time in the past. So that's $13,000 for structural. We have two 2 year old quotes for painting each at $20,000. That's it as I know it, but this is a reno. There shouldn't be too many surprises. I think that the current funds should do the job.

17 16 Findings Financial Viability Financial records were reviewed along with demographics revealing the following: 1. St. Pauls and Zion Calvin currently operate as one Parish with respect to financial needs. The annual budget is currently designed to be break even. 2. The approved 2017 Operating Budget can be summarized as follows: Budget Income Givings $ 241,644 Fund Raising 11,700 Other 17,860 Total Income $ 271,204 Expenses Salaries $ 172,606 Administration 39,327 St. Paul's Bldg Expenses 43,650 Zion Calvin Bldg Expenses 10,270 Interest Groups 17,560 Total Expenses $ 283,413 Net Surplus or <Loss> -$ 12, Zion is currently spending only < $ 6,000 on Bldg Exp (less than the $10,270 budget), because of volunteer janitorial, and other expense reductions. Morden should look closely at our operating expenses to see if any economies are available as well. 4. Given the age of the St Pauls and Zion Calvin buildings there is a reasonable expectation that additional building repairs will be required over the foreseeable future. 5. St. Pauls has a need for $35,000 per year building repair (capital) fund for anticipated upgrades. This is not currently covered in the budget. 6. Zion Calvin s building has been designated as a Heritage Building and the congregation has sought Provincial funding in support of rehabilitation of the building structure. 7. Zion Calvin has undertaken $22,500 in repairs in the last 10 years and intends to spend $35 K to $40 K in the next few years to maintain the Heritage Building. As identified above these costs are already more than covered. 8. Over 80% of giving in Pembina Parish are from congregants older than 60 years of age. Number of givers is down 12% since 2014 peak.

18 17 Number of Identifiable Givers: Age Ages of the Identifiable Givers and Amount of Contribution in 2015 Number of Members and Adherents ENVELOPES Total Given in 2015 by Age Group % Given in 2015 by Age Group Average Amount Given in 2015 by Age Group * 0-5 N/A N/A N/A N/A 6-12 N/A N/A N/A N/A N/A N/A N/A N/A $ % $ $2, % $ $30, % $ $125, % $1, $65, % $1, $31, % $1,683 Groups 8 $8, % $1,005 Deceased 4 $2, % $532 Unknown 18 $3, % $212 Total $270, *Note: calculate as the total given by each age group divided by number of members & adherents in each age group. Givings may include monies designated as M&S. 9. Zion Calvin feels that their current congregation will stay level for the next 10 years (e.g. 20 families). 10. Given the overall demographics, without a significant effort to encourage new membership, a significant drop in givings over the next decade is forecast. That is to say, a decrease in number of congregants will be accompanied by a significant drop in revenue. 11. The Committee prepared a 10 year financial projection to better understand how major repair work would impact our financial situation. We based this projection on the 2017 budget. This budget included having 2 full time ministers and no allowance in it for putting money away for major building repairs. Based on the IMNA report and preliminary information on the Viability report, there was a strong indication that due to the age of our congregation and the givings pattern (old people gave more) we decided that when doing the 10 year projection we would reduce the givings each year by 3%. We also included as an expense needing $35 K per year as a building repair reserve.

19 Results of a 10-year projection using the above assumptions. 13. Although this projection has lots of variables to it, it did indicate to us that we did need to pursue alternative revenue sources. The space utilization audit that was conducted clearly indicated that the St. Pauls facility was very underutilized indicating that an alternative revenue source may exist from seeking rental opportunities for the space. Although we do offer many of our spaces (kitchen, CEU, classrooms, library, etc.) for short term rentals already, and there is opportunity to increase these, this would not generate significant income on its own to address the anticipated shortfall. 14. In summary, projected shortfalls in congregational revenues and/or increase in expenses must be made up by: a. Reduction in salaries (reduced ministerial and administrative support). b. Reduction in building expenses. c. Increase in building revenues. (e.g. lease etc.). d. Increase in givings (more per current members and more members; additional fundraising). e. Total re-thinking of building needs and ownership options.

20 Consultation with Lesley Harrison of Edge provided the following information pertaining to the management of the Pembina Parish property. So, currently the National Church has no say in the sale of property; oversight and responsibility falls to the Presbytery, Presbytery would need to approve both the decision to list a property and again once an offer was on the table. Beyond this there are two paths depending if the congregation decides to continue to exist in some form or another or if they decide to cease to exist. If the congregation is going to continue then they most often put a motion to Presbytery to keep the proceeds of the sale, Presbytery is required to approve the plan that the congregation puts forward for use of the funds. If the congregation ceases to exist the congregation usually drafts a plan for how they would like to have the proceeds from the sale used and then it s a combination of decision making and/or approval by the Presbytery and Conference. In our experience Presbyteries have outlined some kind of a process for disbanding and sale and recommend that the congregation(s) within their bounds follow their process, so it would be good to check if there is anything currently in place within your Presbytery. Once we have moved to the new structure, it is my understanding that approval of sale and dispersal of property will fall to The Regions.

21 20 Findings Needs The following needs were identified pertaining to discernment of the building(s) viability. STEWARDSHIP 1. There is a need to project anticipated revenue shortfall for 5 to 10-year projection. 2. There is a need for a capital plan and a building reserve fund with respect to the identified building repair needs at St Pauls, and this plan needs to become part and parcel of Pembina Parish stewardship campaign. 3. There is a need to identify annually loss / gain in envelopes/ givers; and to establish goals for gaining new members/ givers. Effort needs to be made to attract new members, young families and children. A suggested goal would be new identified givers over the next 10 years. 4. The building maintenance should recognize selected opportunities and options for building(s). 5. Zion Calvin has provided a 5 10 year building/congregational plan including congregation and building viability and strategic plan. This plan should be monitored against assumptions, specifically in congregation viability, ministry needs/draw, and building status. MISSION 6. Our parish should also respond to the identified needs in the IMNA survey, prioritize them for action, and consider revisiting our vision and mission and develop an overall strategic plan along with the capital plan. 7. The priorities for building, ministry and personnel should reflect long term strategic vision for identity and mission of the congregation(s). MINISTRY AND PERSONNEL 8. There is a need to consider priorities for ministry and personnel, and link those to the needs of the current (see IMNA results) and potentially future congregation, including: a. Worship b. Pastoral Care c. Young Families d. Newcomers e. Diversity f. Outreach 9. There is a need to closely consider what ministry and personnel budget can be supported in the 3 5 year horizon; especially considering points Need to carefully consider needs of Zion Calvin with respect to ministry and other support (e.g. volunteers?).

22 21 IMNA, TENANTS AND SPECIAL INTEREST GROUPS 11. Any building options must maintain capacity for traditional worship while allowing for new and innovative options for attracting new members (e.g. alternative worships, creative space); consideration should be given to multipurpose sanctuary for St Pauls. 12. Any building options and opportunities need to include plan for funerals especially at St Pauls. 13. Any building options and opportunities need to include plan for youth and young people. 14. Any building options and opportunities need to consider current and potential future lessee needs (space, equipment, etc.). Specifically, at St Pauls these include: a. Music space/access (teachers) b. Fountain of Life worship and office; multipurpose functions c. Kitchen facilities (catering) d. Others to be identified through the next phase of consultations

23 22 Findings Opportunities The following opportunities were identified pertaining to the building viability(s) in relation to the 1. Given underutilization of the St Pauls building there is an opportunity to lease additional space on long term lease or additional short-term rentals. It is the considered opinion of the committee that long-term lease options would be required to maintain viability of building ownership. 2. There is an opportunity to extend existing (??) lessees (musicians, Fountain of Life, caterer), considering most effective use of leased spaces; consider impacts of long term lease options and optimal use of space. 3. There is an opportunity to approach other protestant (or other) congregations about shared facility and potentially ministry. 4. There is an opportunity to reconfigure the existing sanctuary to include multi-purpose utilization. This could include: a. Rework the front of the church to allow for more multi use functions (e.g. stage) b. Replace the pews with seats c. Add capabilities to curtain off portions of the sanctuary d. Add cry room to meet needs of young people e. Downsize the existing sanctuary and make lease space available; if this option is considered then also consider moving existing offices (e.g. to Library). 5. There is an opportunity to reconfigure the CE center to make it meet potential user needs: a. Remove the stage b. Reconfigure access to the basement c. Reconfigure entrance d. Add capabilities to curtain off portions of the CE center for alternate uses 6. There is opportunity to provide outside access to rooms on the east side of the building (for lease opportunities (1-2-3 room; library) and dedicate their use for lease purposes. This may require additional bathroom facilities or alternative access to bathrooms. 7. There is opportunity to sell the property and reinvest the proceeds into new facility or renovations. This is explored under options. 8. There is an opportunity to focus a portion of our ministry on youth, children, newcomers and diversity; with the expressed goal of expanding our reach into the community. Considering that Leadership is currently considering a new call this should be given serious consideration, including impacts on existing Ministry and Personnel.

24 23 Findings Options The Committee developed several options for moving forward on the building discernment for St. Pauls. Input from Zion Calvin in the form of a strategic plan was also provided and is summarized separately in the Appendices. ST. PAULS Option 1 - Sell portion of property (Immanuel Model). Proposal Sub-divide and sell a portion of the property (e.g. 50% to 100% of parking space), and use proceeds to cover anticipated building expenses. Pros - Direct contribution to building renovation fund. Cons May not be allowed due to parking issues (side streets); would require preferred parking for elderly; may not be a buyer. Considerations - This is a short-term fix geared to providing cash in the bank for anticipated future repairs. May not be feasible (zoning) or desirable (to congregation). Option 2 - Sell entire property; lease back space (Likely others have done this model). Proposal - Requests proposals to purchase and redevelop the property including but not limited to: a. Maintain sanctuary, kitchen and multi use space, and offices/ss. b. Add housing (multistory). c. Renovate/remove CE Unit/parking situation. Pros - Removes need for building renovation fund; removes building operation and maintenance costs. Could result in revenue stream (e.g. lease fees in lieu of purchase price) guaranteed for 20+ years; with no residual building concerns (managed by others). Concentrate on other aspects of ministry and mission; reduced volunteer and management requirements (e.g. administrative costs). Examine ministerial and personnel needs and trial budget. Cons - Loss of control of building; downsize; likely requires multi-use sanctuary space. Likely requires loss of music tenants and possibly caterer. Risk of being tied to developer financial viability. Limit to types and nature of tenants (+-). Considerations A thorough functional plan that described the needs of the Church would be needed before pursuing a developer. Could build in requirements and mission for housing development consistent with St Pauls goals (meeting community needs as identified through Round Table/Community discussions).

25 24 Option 3 - Sell entire property; build new building (Roland Model). Proposal - Requests proposals to purchase entire property and offer land/building in alternative location to better match foreseeable needs (e.g. downsize). Pros Reduced footprint; reduced maintenance and operational costs. Cons Requires multi-use sanctuary; may not meet Funeral (lunch) needs; will likely displace tenants; more limited opportunity for lease income? May be back in same place in 20 years. Examine ministerial needs and trial budget. Considerations - A thorough functional plan that described the needs of the Church would be needed. Would require giving up history of building; may result in demolition. Requires fixed contract agreement(s). May be hard to include growth scenarios. Option 4 - Redevelop % of building for lease hold space (e.g square feet)(augustine Model) Proposal Request proposals to apply for leasing spaces within existing building (e.g , CE, Library, back half sanctuary/front offices (relocate)); including identification of upgrades to meet proposed lease agreements. Pros Funds for building maintenance. Potential to meet community needs for youth, seniors, newcomers. Cons - Requires considerable management and leadership time commitments. Ongoing management of lease holds, improvements. All operation and maintenance costs on Parish. May require MAJOR fundraising initiative. Considerations An aggressive strategy is required to build out the potential revenue vs. costs including additional time / effort / management by Parish and fundraising for renovations, repairs. Option 5 - Investigate creating a multi faith worship space with shared building expenses (e.g. pursue long term lease agreements?) Proposal Request proposals to share spaces within existing building (sanctuary, offices, CE U, kitchen) with other faiths; including identification of upgrades to meet their needs. Pros Funds for building maintenance. Potential to meet community faith needs. Potential to share operation and maintenance costs on Parish. Cons - Requires considerable management and leadership time commitments. Ongoing management of lease holds, improvements. Conflicts with beliefs in faith and worship/funerals/ce etc. Considerations An aggressive strategy is required to approach and consult other denominations inside Morden and elsewhere (Winkler?). United Church of Canada and Anglican Church are actively consulting each other on shared ministry.

26 25 Option 6 - Continue on as we have been. Proposal The congregation continues on as we have been relative to our approach to the building (pay as you go), accepting that we may have to undergo large fund raising campaigns to complete major building repair projects and that we consider diverting money from ministry to building maintenance which likely results in going to one minister for the Parish. Pros Easy for the time being. We get usual access to all parts of the building for major church events such as funerals and special events such as soup and pie days, concerts, meetings, etc. Cons Two significant ones. The ability to successfully undertake large fund raising campaigns could be challenging both from a volunteer involvement perspective (lack of motivation) if there isn t light at the end of the tunnel. Moving from two ministers to one to reduce operating costs so revenue can be diverted to building maintenance creates a challenge in trying to grow our congregation and possibly makes it challenging to maintain two charges within the Parish. Considerations We need to ensure that the congregation is fully informed and accepting of the medium and long term consequences of this approach. ZION Zion has been actively fundraising (encouraging estate givings) and repairing their building with the idea to maintain their congregation at or near the current 20 families. Careful monitoring of the ability/desire of the small congregation to maintain the building is recommended. There is a need to identify M & P requirements and expectations and realistic (proportional) draw on resources, consistent with and balancing with revenues.

27 26 Recommended Options/Opportunities and Required Steps The following are the recommended options and opportunities, implications for revenue, cost to upgrade and implications for congregation. MISSION AND VISION 1. Develop a committee to build on Discernment findings and IMNA/Community Round Table to develop a renewed Mission and Vision for Pembina Parish. MINISTRY AND PERSONNEL 2. Consider moving to 1.5 to 1.8 ministerial positions from current 2 ministerial positions. 3. Focus one position on worship and pastoral care. 4. Focus one position (part-time) on youth, young families, newcomers and diversity. 5. Establish goal for new congregants (e.g. 10 new givers per year- 100 in 10 years). 6. Approach other faith communities (e.g. Churches) regarding shared facilities and ministry. BUILDING LEASE HOLD OPPORTUNITIES (OPTION 4) 7. Approach the following regarding leasing space: a. Morden Community Day Care before / after school b. City of Morden and Art Gallery - after school programming c. Morden Gymnastics evening program d. Open tender office space (preference to community care) 8. Approach existing leases regarding: e. Fee for building reserve (surcharge) f. Option to do leasehold improvements g. Additional space requirement 9. Visit Central Station facility in Winkler to see if any opportunities for collaboration (e.g. expanded services to Morden). BUILDING DISPOSAL AND LEASE OPPORTUNITIES (OPTION 1,2,3) 10. Consider community needs and approach City of Morden regarding potential redevelopment of parking lot space discuss with selected developers re housing and church upgrade options and develop a vision. 11. Consider, continued conversations with one or two developers and/or architects with respect to any selected alternatives, to better assess the financial and operational advantages and the risks. MULTI-FAITH INITIATIVES (OPTION 5) 12. Identify potential partners / interests in multi-faith facility. 13. Initial conversations with selected faith groups.

28 27 Appendices

29 28 MNA Survey Results Interpretation November 30, 2017 Respondents 96 respondents 36% are over 70 years, 35% are between 60 and 70 years, (71% > 60 years), 23% are between 50 and 60 years, 6% are less than 50 69% are women, 8% are parents of children under 19 years To What do you give your time and money? 95% make financial contributions to the local church 80% volunteer time to the local congregation Financial contribution to M&S - 72% this year, 18% in the past but not this year, 9% never 71% have contributed to worship 71% have financially supported outreach projects 60% have attended annual meetings 51% have volunteered to help outreach projects 31% have participated in or led small groups 13% have joined an activist group unrelated to the church 10% have participated in a non-traditional form of church The Meaning of Church to you Know why you go to church 66% strongly agree/28 somewhat agree Makes you feel part of a community 54% strongly agree /38% somewhat agree Helps you to be loving and compassionate 46% strongly agree /47% somewhat agree Expands or deepens spirituality 40% strongly agree /50% somewhat agree Makes you want to share your gifts 34% strongly agree /55% somewhat agree Gives energy to peace and justice 25% strongly agree /56% somewhat agree You have been change by the mission and ministry of the church 16% strongly agree /57% somewhat agree As a church we could be better at: Helping people to be loving and compassionate, Helping people to expand or deepen spirituality, Helping people want to share their gifts Helping people have energy for peace and justice Helping people feel changed by the mission and ministry of the church? Mission this section shows the kind of church that people of the congregation want to belong 46% said our church has a Mission 44 % said we are in the process of determining/ revisiting our mission 10% said that having a mission is not important 36% strongly agree/55% somewhat agree that they could describe our church s priorities or mission

30 29 We need to focus on identifying our priorities or mission. Will having a clear Mission increase the meaning of church for people? Increase energy for and involvement in church activities? Is the congregations demographics working against this? Involvement in and Connection to the Church 99% have a sense of belonging to our church 88% have a sense of belonging to our denomination 58% belong to a group beyond the church 26% are very involved in church activities versus 40%feel very connected to the church 75% are very likely to continue to worship here What might account for the difference between feeling a sense of belonging and being involved? What are the barriers to participation? Age?Interest? Energy? How might the congregation shift/increase involvement? This seems to indicate to me that as a church we don t have a clear understanding of who we are and what we want our mission to be. Given the age of the demographic we need to be true to that component and preserve traditional worship, and provide pastoral care and sense of community but at the same time create energy and enthusiasm and purpose for the young old and families. Mission Ideal Church Ranking Top That is inviting and welcoming to everyone 9.5 That accompanies people through the most difficult times of their life 9.3 That values the presence and contribution of people of all ages, from children and youth to seniors 9.2 That shows respect for all people regardless of their sexual orientation 9.2 That values diversity in all its forms, for example race, socio-economic status 9.2 That reaches out to those in the local community who need help 9.1 That helps people grow spiritually 9.1 Where God s presence is felt 9.0 That places emphasis on helping people with day to day issues in their lives 8.8 Where people are encouraged to translate their personal faith into action in their daily lives Ideal Church Bottom Uses many different styles of music 7.3 Encourages new comers to Canada to maintain faith connection with their home country 7.1 Uses expansive language for God ie Mother, Creator etc 6.4 Uses inclusive language, changing words to old hymns 6.0 That at times uses prayers or readings from non-christian faiths in worship Priorities Increase the number of children/youth in the congregation 82 high priority/14 medium/10 low Develop real hospitality to make the church truly welcoming 77/17/3 Increase opportunities for children and youth to grow in faith 74/23/1 Increase the number of adults 64/30/4 Increase opportunities for people to grow in faith 50/41/7 Increase givings to the local church 47/46/5 Increase engagement and participation in the church s ministry 46/40/13 Increase participation and engagement in the church s worship life 45/45/8

31 30 Increase givings to M&S 10/55/30 Needed for Worship on a weekly basis Top Singing hymns 9.0 Offering as an act of worship 8.8 Use of technology to project hymns and prayer words 8.3 Preaching 6.3 Well known prayers recited by heart 6.1 Clergy wearing robes 6.0 Silence/meditation during worship 5.4 Lay participation in worship 5.4 Use texts that paraphrase the Bible 5.2 Children s time 5.2 Choir Anthems The items least needed on a weekly basis Healing services, family oriented worship other than on Sunday, worship services other than Sunday, electronic/online worship, and experimentation in worship, public sharing of faith journeys, youth led services, blessing of animals, communion, meditative worship, creative dance, jazz rock or pop music, outreach activities WE appear to be a congregation that values traditional comfortable worship. Intergenerational and children s services are not seen as important on a regular basis. Half of us ( 54) value lay participation in weekly worship but do not embrace alternative models of worship at all. Is our desire for comfortable traditional worship alienating the part of our congregation we are trying to increase? We Participate in the Fundamentals of Faith by Attending worship- 48 very important, 42 somewhat important Stewardship- financially supporting the work of our local church 61/35 Living according to the teachings of Jesus 50/39 Stewardship- volunteering your time to church causes 35/52 Stewardship supporting the work of M&S 35/42 Outreach Needs of community beyond church walls 36/55 Outreach Working to protect the environment 20/42 Outreach - Working to Promote social justice 19/42 Participation in small groups 18/31/38/14 Our participation in the fundamentals of faith by attending worship, embracing stewardship and outreach is considered very important by less than half of the respondents. Are we not walking the talk? Lay Leadership Perceptions of effectiveness of lay leaders: Your minister(s) motivate your congregation to set and achieve goals ( 59 strongly agree/32) Lay leaders understand your church's mission (50/43) Both the minister(s) and lay leaders demonstrate a sense of responsibility for nurturing spiritual growth (52/40)

32 31 Your church is good at helping people make good use of their gifts to contribute to the work of the church (28/54) Perceptions of how the church treats our lay leaders: Lay leaders in your church are supported by your minister(s) (42 strongly agree/47 somewhat agree) Lay leaders in your congregation feel empowered to make decisions (26/53) Your church is good at equipping lay leaders with training and resources to carry out their roles ( 14/45) Your church is good at recruiting people to serve as lay leaders (11/44) Your church is good at making sure that lay leaders don't" burn out" ( 9/41) The perception is that the church is not good at equipping, recruiting and making sure that lay leaders don t burn out. Desirable Attributes in Ministry Personnel 1. An interest in welcoming new people 89 strongly agree/11 somewhat agree 2. An ability to create meaningful worship 82/18 3. A gift for providing compassionate pastoral care 81/19 4. A gift for preaching 74/24 5. A gift for building community inside and outside your church72/27 6. Leadership skills to help your congregation achieve goals 69/30 7. An ability to resolve conflict among people in the congregation 65/ 8. A willingness to share decision-making with lay people 60/34 9. A skill for helping your congregation discern its ministry and mission 59/ A commitment to discipleship, i.e., following Jesus 58/ An ability to work with teenagers and young adults 58/ An ability to delegate jobs and responsibilities to others 58/ Ability to guide the congregation in a formal planning process 58/ A willingness to speak honestly and plainly about Bible interpretations 56/ An ability to work with children under age 13 55/40

33 32 Zion-Calvin United Church Darlingford, Manitoba Discernment Report: regarding building and property 2018 History The church building currently known as Zion-Calvin United Church has been in continuous service for 110 years. First known as Calvin Presbyterian Church, it was renamed Calvin United Church in 1927 following completion of union between the Methodist and Presbyterian churches.. Shortly thereafter, the original building was doubled in size to accommodate the combined congregations. In 1967, many new congregants began to attend following the closure of the nearby Zion United Church. The church name was changed at that time to Zion-Calvin United Church. Discernment Process A congregational meeting was held November 16, 2016 to listen and to share with one another our perceptions of our present and future mission as a congregation in the Darlingford community. Conclusions from the meeting: the church building and property have been well-maintained over the years we wish to continue with the current structural and cosmetic upgrades being undertaken so that we continue to have a safe and functional place to worship priorities for action include complete structural work in sanctuary; reinforce the bell tower; improve site drainage; replace rotting wood on outside of vestibule; paint exterior complete with prep work a motion was passed to engage Edge for a viability study we wish to engage our entire congregation in discussions about our future; periodic discussions will follow Sunday worship Work on the Building Past work Over the years, the church has been well maintained. During the 1950s plumbing and wiring were installed. Over the past 10 years, both oil furnaces have been replaced with electric units which required a major upgrade of the electrical service. The kitchen stove has been replaced and a new hot water heater and flooring have been installed in the bathroom. The front step has been enlarged for safety. The roof has recently been re-shingled. Several trees have been trimmed and/or removed from the property. These upgrades have cost approximately $22,500.

34 33 In 2011 Zion-Calvin United Church was declared a Municipal Heritage Site due to its age, building style and general condition. The congregation saw this designation as an opportunity to upgrade the church to its original condition both visually and structurally, not only for historical purposes but also to maintain the building for continued worship. A consultant from Manitoba Sport, Culture and Heritage spent considerable time examining the building and prepared a report on issues requiring attention. The Trustees accepted the report and decided to begin the process of getting the work done. An early step was getting permission from Pembina Parish Leadership Team and Agassiz Presbytery to undertake the project. Trustees decided to pursue funding for the project and were successful in receiving a provincial government grant of $35,000 over five years. The grant allocations are to be made with matching dollars and/or labour from us. As well, as of Dec. 2017, there is $33,406 available for the project in the Pembina Parish Opportunity Fund. This amount is the result of two bequests each of which stipulated that the money go to Zion-Calvin United Church. With funds available, the Trustees identified priorities and timelines for the work. With a plan, they engaged the services of a professional engineer to assist with structural issues. A building permit was obtained from the MSTW Planning District. Work accomplished to date includes the following: the west side of the foundation has been stripped of parging and the foundation rocks have been secured and re-pointed by a stonemason as required, repairs have been made to the entire foundation grading and drainage around the building has been improved with black dirt hauled in and leveled and grass seeded eaves troughing and down spouts have been replaced a steel cable has been installed in the sanctuary tying together the SW and NE extremities of the main roof support beam Current and future work Work of a structural nature has, and will be, undertaken with the supervision and approval of our engineer and with MSTW Planning District approval. Another important structural concern is currently being worked on and should be completed in early This work involves installing two beams under the east and north sides of the bell tower. A short wall system will be built to support the beams. Finishing will match the general appearance of the church interior. This will complete work related to the structural integrity of the building and hence to concerns related to safety. When the interior structural work is completed, the next big task is to paint the building exterior. First, however, considerable trim and other wood members must be replaced. Two early estimates for painting are in excess of $20,000. There is also some trim and finishing work to be done on the bell tower exterior. We will persist. Operating Costs

35 34 Our facility is not costly to operate. Volunteers provide much of our music for worship, janitorial services, building maintenance, grass cutting and snow clearing. Our main costs are electricity, insurance and taxes. In 2017 our operating costs were budgeted at $10,270. The actual cost was less than $6,000. The Congregation Like many rural congregations we are concerned about the future sustainability of our church. Presently we are supported by about 20 families. Another families attend irregularly. Our Sunday School consists of 7-10 children. The UCW group has five stalwart members who rally to the most incredible challenges. Typical of the community, additional ladies roll up their sleeves and help to accomplish the mission at hand. Darlingford is not a dying community. While the businesses and elevators are gone, all of the community s residences are occupied. Most of the residents are young adults with children. Over the past 15 years, the number of attendees at Zion-Calvin has slowly but steadily increased. While it is impossible to predict future numbers, it is reasonable to expect that the current 20 families will maintain support for at least ten years and possibly more. Rev. Cathie is a wonderful person and dedicated and fine minister. Good ministry is vital. Conclusion For Zion-Calvin United Church to continue operating, we need: 1. a viable congregation 2. a safe and secure place in which to worship 3. the finances to support our Church within the framework of Pembina Parish At the conclusion of our current discernment process, we believe that we have a viable congregation now and for the near future. We will have a beautiful, historical church building that, with current renovations completed, will provide an affordable, sustainable place of worship for years to come. Currently we are covering our annual costs of operating as a separate location within Pembina Parish. We are engaged in local pastoral care visits, high school blanket ministry, cookies at Christmas and have a strong Sunday School. Over time, members of our congregation have served and are currently serving on numerous church committees/interest groups. These activities actualize our Pembina Parish mission statement to be a living celebration of God, as the body of Christ, serving the community and the world! We recognize that issues of numbers and finance will continue to be of concern to our Parish and, to that end, we will monitor our financial situation to determine whether we are covering our costs. We are open to consideration of ways to ease the workload of the minister(s) vis-a-vis our church; eg, periodic joint services.

36 35 The spirit in Zion-Calvin United Church is strong and congregants are passionate about maintaining this church in our lives. Report prepared by Robert Luger with input and approval of the Zion-Calvin congregation. January 2018

37 36 Consultations Roland United Church Does your faith journey in your church community value the church building or your continued participation in a traditional worship service in your community? (Roland Model) The Property Discernment Interest Group made a visit to the Roland United Church to see their faith journey success story. Their congregation were facing many of the concerns that St. Pauls is facing - declining attendance, participation, age, lack of young people and Sunday School, plagued with high costs maintaining their building, decline in providing programs, to reduce costs, the same people continually fund raising to help decline major costs instead of putting their money to worship - just to name a few. There were a few people who had a vision, formed a board and committee to change all that. Their congregation has stepped up to this vision to build a building that is more functional and is useful in their church community and within the Roland community that is sustainable for the next many years. It is unclear if the Roland UC has taken any steps to increase it s draw to others (e.g. increase congregation). It doesn t appear that Roland UC has significant rental income. Funeral lunches are held in the community hall; and funerals are overflowing relative to sanctuary space. The sanctuary is multipurpose and utilizes chairs instead of pews and has no stage; but does include audio visual. The sanctuary/multi purpose room has direct access to kitchen. The bathrooms are accessible. The Roland UC budget involves ½ time minister and they have approximately 1/3 the congregation size to St Pauls/Zion combined. Of interest they carried at $250,000 mortgage (see payments) since the disposal of their building garnered no revenue. This is significantly different then St. Pauls, since the property has value. For comparison a downsize Roland UC with approximately 1/3 the size congregation and brand-new building (6 years old); 4800 square feet. Their building expenses are 1/3 of St Pauls but their mortgage makes up the difference. Their givings are only 20% of Pembina Parish, but total income and expenses are approximately 30% of Pembina Parish. While the committee considered this as an option for St Pauls, it would be a relatively radical change. Work would need to be done on looking at: Givings $ 50,000 Misc 40,000 Total Income $ 90,000 Salaries $ 41,000 Minister Travel & Education 4,000 Administration & Funerals 8,000 Teams Bldg 14,500 Mtg 22,500 $ 90, Size and nature of replacement facility. 2. Cost of replacement facility. 3. Revenue from sale of existing facility/property. 4. Budget for new facility including operation, maintenance and mortgage (if any). A reasonable goal would be to have any revenue from sale of the existing building cover the cost of a new building.

38 37 Consultations Immanuel United Church Contact has been made with the Immanuel United Church (Golspie Street, East Kildonan, Winnipeg). The following excerpt is taken from their 2016 annual report. The Back Forty Project Immanuel United Church is looking to develop IMMANUEL VILLAGE, a 21-unit housing project on the property adjacent to the Church building. The Church congregation, has been considering various uses for the property for many years. After much deliberation, under the leadership of a committee including the minister as resource, the Congregation has chosen to undertake a housing development that would demonstrate the missional objective of the Church including the following: 1. Provide housing for long term residents of East Kildonan who would like to stay in the neighbourhood. 2. Provide first time housing for young people entering the housing market. 3. Create a community of residents who appreciate community values and enjoy the East Kildonan neighbourhood. 4. To consider developing amenities of the Church, including the gathering space and kitchen, which will be made available as an added value of the Village. 5. Open the doors of the Church to a new community of residents. We have entered into an agreement with Discovery Homes to develop the Back Forty land. The project currently is proceeding into the zoning process, and marketing of the condominium units will begin once the process is complete. Immanuel anticipates that its total proceeds from the project will amount to upwards of $600,000. This money is to be used to fund the ongoing mission and ministry of Immanuel United Church. Winnipeg Presbytery requires that we have a carefully considered plan for the dispersal of the proceeds, and must approve the plan at which we finally arrive. What an opportunity for us to be able to determine how these funds will be spent to further our mission and ministry in our neighbourhood, the wider church and in the world. A small ad hoc committee has been struck by the Immanuel Council for the purpose of engaging the congregation in a process of discerning the use of these funds in a manner consistent with our mission. We have called this process the Back Forty Impact Process. At the time this report is being written in March (for the Ministry Profile Committee), the committee is discerning information from the congregation to determine the use of the money as we wait for a date for Discovery Homes and Immanuel to meet with the City of Winnipeg for the purpose of re-zoning. We expect that meeting in the next couple of months. Respectfully submitted by Bob Kenyon for the Back Forty Team This example provides an idea of the economics of redevelopment; which would obviously be much different in Morden, but none the less, gives a concept of how others are approaching the financial and mission needs of the church while looking to the future.

39 38 Immanuel Property - Including Back 40 The committee met with Bob Kenyon at Immanuel. They will get $450,000 for the annexed land (equivalent in size to St Pauls parking lot); and $10,000 per unit (on sale x 22 units). Ownership of the new development is 100% private, with the Church only acting as promoter/partner (on revenue). The developer will also take on redevelopment within the Immanuel church building at 50% actual costs should they wish to undertake upgrades (to this point this is undecided. Ownership of the church/property remains with the United Church. It does not appear that Immanuel has an up to date long-term building plan. The revenue is a short to medium term fix. As of yet they do not have an finalized investment strategy. They do plan to support the truth and reconciliation process. A quick review of the Immanuel budget reveals that they have significantly less revenue then Pembina Parish, lower operating costs, and have been running a deficit in recent years. They hope proceeds from the redevelopment will cover operating deficits (e.g. approximately $15,000 per year).

40 39 Consultations Augustine United Church The Augustine United Church has partnered with SvN and ReSolve Project Management Ltd. to redevelop a portion of its historic River Avenue building. The Augustine Centre project would create a 10,000-square-foot daycare, 5,000-square-foot dance studio and not-for-profit arts centre, a new church sanctuary and performing arts centre, and a 7,000-square-foot space for the Oak Table Inc. The rental income from the redevelopment would help bring financial stability to Augustine. The committee attended the open house and gleaned the following additional information: 1. The current Augustine budget is less than Pembina Parish; while their facility is much larger AND in significantly more disrepair. 2. Augustine only has 1 minister, and < 60 people attending on any given Sunday. 3. Augustine s current givings are only 60% of Pembina Parish. 4. Augustine s current lease agreements/rentals bring revenue in excess of $100,000 per year. For example they get $2500 per month ($30,000 per year) from the a sublease of approximately 5000 square feet of space. 5. They hope to get another $100,000 (ball park) from redeveloped additional square feet of space. 6. The redevelopment costs are estimated at $6.5 M and would well exceed the financial capability of the current congregation. A major fundraising is planned with goal of $2 4 M. They also hope to get Fed/Prov funding. 7. The redevelopment will not be funded on the lease revenue (i.e. it is adequate only for operating). 8. The operating revenue and re-development (rehabilitation) costs have been approached separately. In this regard the financial plan has a significant risk to it. However, the congregation is fully in support of the plan to re-commit the facilities to the community use.