An Overture to the Presbytery of St. Augustine Strategic Planning for the Future of Montgomery Presbyterian Conference Center

Transcription

1 An Overture to the Presbytery of St. Augustine Strategic Planning for the Future of Montgomery Presbyterian Conference Center Overture Title A Celebration and Compassionate Closure of Montgomery Overture Sponsors The Reverend Kimberly L. Hyatt President of the Presbytery of St. Augustine, Inc. President of Montgomery Presbyterian Conference Center, Inc. William E. Scheu Ruling Elder and Elder Commissioner of Riverside Presbyterian Church Overture Sponsors Contact Information Kimberly Hyatt khyatt@capkids.org (904) Narrative Describing Proposed Strategic Plan and Theological Rationale for Action For everything there is a season, and a time for every matter under heaven: a time to be born, and a time to die; a time to plant, and a time to pluck up what is planted (Ecclesiastes 3:1-2). We remember and celebrate the mission of Montgomery over the past 68 years, the special role it has played in our life as a presbytery and the saints who made this ministry possible. At the same time, looking at the agreed upon data concerning finances and use of the camp, it seems clear this ministry is coming to an end. The purpose of this overture is to call upon our presbytery to provide for a proactive gracious and compassionate celebration and closing of Montgomery. Specifically, this overture calls on our presbytery: (i) to provide funding to take care of departing staff, (ii) to charge the Council with coordinating a celebration of Montgomery s mission over the years in such a way that gives space for both thanksgiving and lament, (iii) to appoint an administrative commission to work with a closing consultant to secure and prepare the property for sale, (iv) to evaluate and make recommendations concerning the refinancing of the current mortgage debt and to recommend other actions regarding the closing and sale of the MPCC property, (v) to authorize the Trustees to execute the corporate dissolution after refinancing and (vi) to authorize the Trustees to list and sell the property so that resources saved and gained can be put to other ministries in our congregations and presbytery.

2 2 While the decision to close Montgomery is not one to take lightly or without acknowledging the pain that will be associated with such an action, the rationale for this overture is clear and compelling. The following are the key reasons we believe the time has come to close Montgomery: Financial: The camp is no longer financially viable due to lost revenue, the unavailability of money needed to bring facilities to modern standards and our presbytery s own declining budget. Mission Accomplished but Now Diluted: Over the years, Montgomery has served our presbytery well, but in the past two decades its mission has been increasingly diluted in order to survive. Mission Possible: The sale of Montgomery will open new possibilities of mission and ministry for our presbytery. Financial Looking at the agreed upon data, from 2015 to 2016, Montgomery s revenue dropped by $79,000, or 13 percent, from $621,000 to $542,000. From 2016 to 2017, revenue dropped by $36,000, or 7 percent, from $542,000 to $506,000. Projections for 2018 are for revenue to drop at least 17 percent to less than $420,000. So, during the past three years, revenue has declined precipitously by over 32 percent. Additionally, Montgomery s physical facilities have significantly deteriorated over the past several years. In 2016, a consultant engaged by the Montgomery operating board indicated it would require significant funding to bring the facilities to current market standards and to staff the camp appropriately for success, including maintenance and marketing staff. In 2016, Montgomery required $195,000 from our Presbytery, or 37 percent of unified giving, to keep the doors open. In 2017, again, Montgomery required $195,000 from our Presbytery, this time rising to 40 percent of unified giving. Through the first six months of this year alone, Montgomery required $95,000 from our Presbytery, or 44 percent of unified giving. Mission Accomplished but Now Diluted Montgomery has been a valuable resource for our presbytery. Lives have been transformed by the opportunity to meet Christ in creation through the facilities, staff and programming. Over the decades, Montgomery has met and exceeded its original mission and vision and that is to be celebrated. Yet, the original mission of Montgomery s founders has been diluted. Looking at the agreed upon data, of the 2200 guests this year, just over one-third are Presbyterians and an equal number are not related to any faith community. The mission of hospitality, enjoyment of God s creation and camping experiences for youth is important, but the focus of Montgomery now seems to be on organizational survival, which has taken a great toll on our presbytery resources and sense of community for many years now.

3 3 As our Constitution says, the Church is sent to be Christ s faithful evangelist: Making disciples of all nations, Sharing with others a deep life of worship, prayer, fellowship and service, and Participating in God s mission to care for the needs of the sick, poor, and lonely; to free people from sin, suffering, and oppression; and to establish Christ s just, loving, and peaceable rule in the world. When we consider the current programming of Montgomery in the context of our calling, the time and resources spent marketing the space to businesses or secular service clubs simply do not further the ministry to which Christ calls us. Mission Possible Selling Montgomery will enable our presbytery to be innovative, creative and forward-thinking about ministry for all ages throughout our presbytery. We have a clear choice to make that either calls us to the limited operations of Montgomery or the broader work of God in our region. Over the past 18 months of study and prayer, we have not discerned the Spirit of God calling us to dedicate resources to Montgomery but rather to other ministries of our presbytery and our congregations. We believe the ministries of Montgomery that serve youth and others can be done in different ways by our presbytery as they have in many other presbyteries that do not have camps as well as in our congregations. For everything there is a season. The demographics of our presbytery have changed dramatically since the founding days of Camp Montgomery. The world has changed and continues to change. Any organization must innovate or die. Kodak, Blackberry, Blockbuster are but a few examples of the latter. The whole retail sector is trying to figure out how to remain profitable. The situation in which Montgomery finds itself is like many organizations whose model has become obsolete. If Montgomery did not already exist, would we feel a camp and conference ministry is what God is calling us to prioritize today? Montgomery has served its mission faithfully and is to be celebrated. It has been a life well lived. While we are heartbroken to make this overture, we believe that God, who has worked in so many lives through Montgomery, is still at work in our midst doing a new thing and is able to accomplish abundantly far more than all we can ask or imagine. Specific Strategic Goals for Next Five Years To appoint an administrative commission to (a) work with a closing consultant to secure and prepare the property for sale by the Trustees, (b) to evaluate and make recommendations concerning the refinancing of the current mortgage debt that encumbers the Montgomery property, including whether the property should be transferred to the presbytery itself, and the dissolution of MPCC following the refinancing and (d) to recommend other actions regarding the closing and sale of the MPCC property. To provide funding for a gracious departure of staff.

4 4 To charge the Council with coordinating a celebration of MPCC s mission over the years in such a way that gives space for both thanksgiving and lament. To authorize the Trustees to execute the corporate dissolution after refinancing. To authorize the Trustees to list and sell the property. Description of Financial Impacts Upon the Presbytery if Presbytery Funds are Part of Plan Like many of our congregations, our Presbytery has been facing its own financial and human resource challenges in recent years. Proceeds from church sales and gracious dismissals have helped relieve the pressure on our presbytery s budget that has allowed us to fund Montgomery s growing annual shortfalls. We will not have these additional proceeds in the future and must rely on a balanced budget funded by giving from our churches and investment income. Even if we were to receive additional resources in the future, there are better mission uses for the proceeds to support our youth, revitalize our congregations, build community among our churches and ministers, provide leadership training and development and engage in evangelism. The financial impact of the actions recommended in this overture are: 1. Funds received from sale of property Estimated sale proceeds 2,610,000 (Based on the low end of the CRBE Opinion of Value, May 15, 2017) Less: Mortgage debt * (644,098) Estimated sale and closing costs (287,100) Carrying costs during sale period (Assumes 2 year sale period) Debt Service (Interest only at 5%/2 years) 65,000 Maintenance and Insurance 50,000 Closing Costs 10,000 Personnel Expense 25,000 (140,000) Net proceeds 1,538,802

5 5 2. Additional annual income available for mission Income from investment of net proceeds $ 1,538,802 yielding 5% 76,940 Reduced expenses: Annual contribution to Montgomery 65,000 Summer staff payroll 55,000 Deficit funding 75,000 Total additional annual income 271,940 *It is assumed the mortgage will be paid-off at closing, which hopefully will be before the maturity of the current note in April In that case, there will be no additional debt service costs other than those already in the presbytery budget. If the sale period extends beyond April 2019, the overture assumes the mortgage will be refinanced for a two-year period, interest only at 5 percent per annun. The budgetary impact is reflected in the above numbers. Description of How Strategic Plan Addresses Each of the Four Strategic Goals of the Presbytery Create a culture where everyone is one heart and soul working together for the common good to the glory of God. While we have one Lord, one faith, one baptism, one God and Father of us all, (Eph. 4:5-6) that unity is being fractured by the longstanding divisiveness around Montgomery s future. To quote church historian Dr. Edward A. Dowey, Whenever institutional elements become ends in themselves, controlling the mission they were meant to serve, and when they are grounds of separation and rivalry, they defeat the ministry of reconciliation. Closing Montgomery will be done in a way that reflects the grace and beauty of Montgomery, that allows us to take care of existing staff and that allows us a time to collectively mourn the loss of what was.

6 6 Thrive and grow in faithfulness to Jesus Christ God calls us to new openness in the church and the world. God alerts us to the possibilities and perils of institutional forms and to the continuing reformation of the church that we might be an effective instrument of mission in the world. We cannot do this by clinging to the past but only by trusting God alone as the author and giver of life. As Christ s faithful evangelists, freeing up these resources for other ministries would allow us to participate in God s activity in the world by: a) healing, reconciling and binding up wounds; b) ministering to the needs of the poor, the sick, the lonely and the powerless; c) engaging in the struggle to free people from sin, fear, oppression, hunger and injustice; d) giving ourselves and our substance to the service of those who suffer; and e) sharing with Christ in the establishing of his just, peaceable and loving rule in the world. Seek and connect with young people in all aspects of our ministry While there was a time when Montgomery was a vital part of summer for the youth of our congregations, that time has passed. The entire summer camp industry has changed dramatically over the past two decades. Today, most parents are looking for camps designed specifically to build academic, artistic or technical skills, not a traditional camping experience. This is evidenced by Montgomery s low and declining retention rate of summer campers. There are simply many and more attractive options that families and youth prefer to Montgomery. We are, indeed, called to provide relevant outreach to the young people in our midst all year long through creative ministries; offering a single summer camp is not sufficient. Freeing up presbytery resources will allow us to explore new ways to serve our young people both in the summer and throughout the year. Maximize Montgomery Conference Center as our spiritual asset. For everything there is a season. While we are sad, to seek to hold on to the property in hopes of returning to a ministry that was taking place decades ago is not being true to our call to be faithful stewards of the resources God has entrusted to us. God has blessed us with a special resource in Montgomery. The best way to maximize this asset today and tomorrow is to sell the property and use the proceeds to fund vital ministries in our congregations and presbytery. How Does the Proposal Work within the Bounds of the MPCC Structure and Lines of Authority No changes would be needed. Management Practices/Structure Changes Necessitated or Needing to be Addressed This overture calls on our Presbytery to provide funding for a gracious departure of staff and to appoint an administrative commission to work with a consultant to ensure a smooth closing. Details around the role of the Board of Trustees and the Executive Operating Board will be worked out as part of that process.

7 7 Budgets The closing consultant with subject matter expertise will be able to advise on the timing of any continued operations or maintenance and the budget impact of such in addition to those set forth above. The proposal includes an estimate of $50,000 for ongoing maintenance, insurance and the like.