At its November meeting, the Vestry:

1) approved the nomination of Syd Alexander as Chair of the Special Giving Committee;

2) approved the nomination of Rob Sullivan as Chair of the Program Review Committee;

3) approved the recommendation of the Social Ministry Committee for distribution from the Discretionary Outreach line item of $150 to Kids’ Club Program, Wind River Indian Reservation, Wyoming;

4) approved the distribution of budgeted amounts to community organizations in the amount of
$100 to Girl Scout Troop 47, $100 to Girl Scout Troop 622,
$100 to Boy Scouts of America Troop 9,
$250 to the Preschool at the Chapel of the Cross,
$3000 to Habitat for Humanity/Orange County,
$1000 to Iglesia El Buen Pastor,
$200 to Virginia Theological Seminary,
$100 to Thompson Children’s Home,
$100 to The Summit Conference Center,
$100 to St. Augustine’s College,
$100 to St. Mary’s School,
$100 to University of the South,
$100 to Kanuga Conferences, Inc.,
$3000 to Inter-Faith Council for Social Service,
$11,659 to the Episcopal Diocese of North Carolina,
$2331.80 to Virginia Theological Seminary,
$2331.80 to General Seminary,
$2331.80 to Berkley at Yale,
$2331.80 to Sewanee, and
$2331.80 to Seabury-Western;

5) approved the nomination of Betsy Elkins-Williams to the University Ministry Committee;

6) engaged in discussion with EYC parent and youth representatives about youth ministry;

7) accepted with gratitude the bequest of $5000 from the estate of Marilyn Buell;

8) received a flag and certificate from Robert Champion, son of Margaret Champion, the flag having been flown over Afghanistan on October 9, 2004, in memory of those who died in the terrorist attacks of September 11, 2001;

9) learned that Tammy Lee has received a Louisville Grant;

10) approved the charge to the Program Review Committee; and

11) approved a recommendation to support a line of credit of up to $400,000 with Bank of America for expenses related to the chapel organ.

Following a bag supper, the Vestry met in focus session with the Treasurer and Sr. Associate Treasurer for a discussion of the parish’s financial funds. Vestry members present were Dick Taylor (Sr. Warden), Paul Carew (Jr. Warden), Jean DeSaix, Kevin Trapani, George Evans, Jack Scarborough, Chris Bowes, Jim Crow, Steve Lackey, and Mary Schoenfeld. Also present were Stephen Elkins-Williams (Rector), Tammy Lee (Associate for Campus Ministry), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), Barney Varner (Sr. Associate Treasurer), Syd Alexander (proposed Chair of the Special Giving Committee), and Nancy Kelly (Clerk).

The Rector opened the session at 6:30 p.m. and turned the discussion over to Mr. McGee and Mr. Varner.

Attached are the Combined Balance Sheet as of October 31, 2004, a description of the active funds of the Chapel of the Cross, the Special Funds Balance Sheet as of October 31, the Special Funds Revenue Expenses as of October 31, the Special Funds Encumbrances as of October 31, the Schedule of Encumbrances as of October 31, the projection for balancing the budget through inter-fund transfers for the period 2004-2007, and a list of topics for discussion.

Mr. McGee began the discussion by stating that the Vestry needs to consider the adoption of more specific policies for dealing with the parish’s endowments. He stated that the income of both the Buildings and Grounds Endowment and the Outreach Endowment are fed into the operating budget in the amount of about $50,000 annually.

Mr. McGee then called attention to the various active funds of the parish.

The ECW Fund holds about $8000, although this organization has been inactive for many years.

Ms Lee reported that Vicky Jamieson-Drake would like the Good Samaritan Fund to be renamed the Pastoral Care Fund.

Mr. Taylor asked if the Campus Ministry Fund is intended to be available in the event of reduced diocesan support of our campus ministry program. Mr. Varner replied that the Campus Ministry Fund was initially established in the hope that it would increase in value in order to be available to address such a situation. Mr. Alexander added that the initial hope was to build the fund as an endowment. Mr. Taylor said that it is his understanding that if the fund is restricted, it is restricted by the Vestry and that the Vestry could then alter the restrictions.

Mr. Taylor asked if there is any pattern to the flow into the various funds, to which Mr. Varner replied that there is no discernible pattern.

Mr. Taylor then asked what are the policies governing use of funds in Undesignated Bequests and Gifts. Mr. Varner said that this is a relatively new fund and that there have been five or six major infusions of cash into the fund, as well as many minor additions.

Mr. McGee advised the Vestry that it needs to reconsider how to use the funds. At present, about seven percent of the operating budget income comes from endowment income and inter-fund transfers. Mr. Carew suggested that the Finance Committee determine a series of options and recommendations to present to the Vestry, and Mr. McGee agreed that this needs to be the work of a small group. Mr. Elkins-Williams observed that it is the general practice of the Vestry to look to the Finance Committee to make financial recommendations to the Vestry.

Mr. Taylor said that it is very useful to have all of this financial information available to and clarified for the Vestry.

Mr. Elkins-Williams then asked Mr. Alexander, proposed Chair of the Special Giving Committee, to speak to the Vestry about this new committee, which would encompass both planned giving and designated giving. Mr. Alexander stated that if such an effort is to be successful, the Vestry and other leadership of the parish need to make a commitment to support it.

Mr. Alexander suggested that the committee develop a list of parish needs to be made available for designated giving.

Mr. Alexander stated that some parishes that are successful in the area of planned giving have created various means of recognition of those who plan for a bequest to the church on their death. There was much discussion about the nature of such recognition, which might include a plaque or a record book or perhaps a luncheon to recognize those who participate in planned giving. Mr. Crow stated emphatically that he is not in favor of displaying a plaque identifying those individuals who make plans to name the Chapel of the Cross in their will. Mr. Carew countered this opinion by saying that there is a need for recognition. Mr. Taylor observed that recognition is an effective tool in fund-raising, but he cautioned that recognition shouldn’t be dependent on the amount of money given.

Mr. Trapani said that it’s likely, in spite of periodic notices in Cross Roads or Crossings about the possibility of planned giving, that many parishioners haven’t considered making such plans, and he suggested that many might find it easier to make plans for a bequest to the church than to make significant contributions in the present.

Mr. Carew said that the problem now is how to implement this plan. Mr. Elkins-Williams suggested that Mr. Alexander and the Special Giving Committee study the issue and develop a series of recommendations for Vestry consideration. He added that we need to be both bold and careful in how we go about this new initiative.

The focus session concluded at 7:20 p.m., and the Vestry moved to the more formal part of the agenda.

Attachments
- - - Combined Balance Sheet as of October 31, 2004
- - - Description of the Active Funds of the Chapel of the Cross
- - - Special Funds Balance Sheet as of October 31
- - - Special Funds Revenue Expenses as of October 31
- - - Special Funds Encumbrances as of October 31
- - - Schedule of Encumbrances as of October 31
- - - Projection for Balancing the Budget through Inter-fund Transfers 2004-2007
- - - List of Topics for Discussion

The November meeting of the Vestry was held in the parish library on Thursday, November 18, 2004. Vestry members present were Dick Taylor (Sr. Warden), Paul Carew (Jr. Warden), Jean DeSaix, Kevin Trapani, George Evans, Jack Scarborough, Chris Bowes, Jim Crow, Steve Lackey, and Mary Schoenfeld. Also present were Stephen Elkins-Williams (Rector), Tammy Lee (Associate for Campus Ministry), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John Mc Gee (Treasurer), Barney Varner (Sr. Associate Treasurer), and Nancy Kelly (Clerk).

The Rector presided and opened the meeting at 7:20 p.m..

Devotions
Mr. Evans led the devotions. In keeping with the Thanksgiving season, he offered the Prayer of Thanksgiving from the Book of Common Prayer.

Selection of Timekeeper
Mr. Joyner agreed to serve as timekeeper for the meeting.

PARISH CONCERNS

Mr. Trapani raised a concern about the poor lighting in the chapel, to which Mr. Elkins-Williams replied that there exists a plan for improving the lighting. Mr. Trapani suggested that the lenses of the lights need to be cleaned. Mr. Elkins-Williams said that Facilities Manager Tom Mander will take a look at both the bulbs in the fixtures and the lenses. Mr. Carew suggested the need for cleaning the lenses of the fixtures in the dining room as well.

Mr. Taylor called attention to the problems caused by parallel parking along the stone wall opposite the marked gravel parking spaces. Mr. Elkins-Williams suggested that it is easier to exit these parking spaces if one backs the car in.

Mr. Crow told the Vestry that Ellie Kinnaird will be the recipient of the Robert E. Seymour Award at the 10th Anniversary Conference of People of Faith Against the Death Penalty (brochure attached) on Saturday, December 4.

There were no corrections made to the minutes of the focus session of October 21, nor to the minutes of the Vestry meeting of October 21.

It was moved by Mr. Taylor, seconded by Mr. Evans, and passed unanimously, that the Vestry approve the minutes of the focus session of October 21 and the minutes of the Vestry meeting of October 21.

All of the items of the Addendum have been completed.

The following items were placed on the Consent Agenda (attached):

-nomination of Syd Alexander to Chair of the Special Giving Committee

-nomination of Rob Sullivan to Chair of the Program Review Committee

-recommendation of the Social Ministry Committee for distribution from the Discretionary Outreach line item of $150 to Kids’ Club Program, Wind River Indian Reservation, Wyoming

-approval for distribution of budgeted amounts to community organizations in the amount of $100 to Girl Scout Troop 47, $100 to Girl Scout Troop 622,
$100 to Boy Scouts of America Troop 9,
$250 to the Preschool at the Chapel of the Cross,
$3000 to Habitat for Humanity/Orange County,
$1000 to Iglesia El Buen Pastor,
$200 to Virginia Theological Seminary,
$100 to Thompson Children’s Home,
$100 to The Summit Conference Center,
$100 to St. Augustine’s College,
$100 to St. Mary’s School,
$100 to University of the South,
$100 to Kanuga Conferences, Inc.,
$3000 to Inter-Faith Council for Social Service,
$11,659 to the Episcopal Diocese of North Carolina,
$2331.80 to Virginia Theological Seminary,
$2331.80 to General Seminary,
$2331.80 to Berkley at Yale,
$2331.80 to Sewanee, and
$2331.80 to Seabury-Western

-nomination of Betsy Elkins-Williams to the University Ministry Committee

It was moved by Mr. Taylor, seconded by Mr. Trapani, and passed unanimously, that the Vestry approve the Consent Agenda.

Rector
The report of the Rector is attached.

Referring to item 3 of his report, Mr. Elkins-Williams stated that there were well over one hundred individuals present at the Mormon Church this morning for the roundtable discussion on homelessness in Orange County.

Mr. Elkins-Williams asked the Vestry to accept with gratitude the undesignated bequest of $5000 from the estate of Marilyn Buell.

It was moved by Mr. Carew, seconded by Mrs. DeSaix, and passed unanimously, that the Vestry accept with gratitude the bequest of $5000 from the estate of Marilyn Buell.

In response to item 6 of the report, a conflict in the date of the regularly-scheduled January Vestry meeting and the date of Annual Convention, the Vestry agreed to move the Vestry meeting one week to Thursday, January 27.

In response to item 7 of the report, the Vestry scheduled the budget mini-retreat for Saturday, January 15, in the Campus Center, with breakfast at 8:30 a.m. and the meeting from 9:00 until Noon..

Mr. Elkins-Williams showed the Vestry a flag and certificate sent to the parish by Robert Champion, son of Margaret Champion. Mr. Champion flies sorties over Afghanistan, and the flag he sent was flown by his crew over Afghanistan on October 9, 2004, in memory of those who died in the terrorist attacks of September 11, 2001. Mr. Trapani volunteered to have a shadow box display made for the flag and certificate.

Mr. Elkins-Williams also passed around a book recently received by the parish. The book, North Carolina Churches: Portraits of Grace, includes a photograph of the Chapel of the Cross and a narrative that commends the parish for its university relations and social involvement. A brochure describing the book, published by Our State magazine, is attached.

Associate for Campus Ministry (Tammy Lee)
Ms Lee reported that she had applied for two sabbatical grants for 2005 and that she has been awarded a $12,000 Louisville Grant, which is funded by the Lilly Foundation. The Vestry congratulated her for this honor.

Ms Lee reported on involvement of UNC students in the parish. Last Sunday she counted 8 students at the 9:00 a.m. service, 13 at the 11:15 a.m. service, 22 at the 5:15 a.m. service, and 42 at Compline. Last week at ECM there were 33 students. She commented that most of the students who attend ECM on Tuesdays are also involved in other aspects of the life of the parish. Most of the students who attend Compline are not involved in other areas of parish life. She is working on how best to approach these students to inform them of other parish opportunities available to them. Meanwhile, Ms Lee is planning to spend more time on campus.

The fourth shipment of books to Namibia is ready to be sent.

Deacon (Bill Joyner)
Mr. Joyner reported that students are heavily involved in making possible the monthly (third Monday) service for individuals with disabilities.

Senior Warden
Mr. Taylor thanked the Vestry for its leadership in the Annual Giving Campaign.

The Next Steps Committee of the Long Range Planning Committee has met twice recently under the leadership of Ted Vaden.

Attached is a memo from the Sr. Warden about the Program Review Committee, for which Rob Sullivan has agreed to serve as chair. The proposed charge to the committee is included in the memo. Following discussion, Mr. Taylor said that he will rewrite the charge to the committee to include specific reference to the Johnson Intern Program and Youth Ministry.

It was moved by Mr. Taylor, seconded by Mr. Trapani, and passed unanimously, that the Vestry approve the charge to the Program Review Committee as described in the memo, with revisions to include specific reference to the Johnson Intern Program and Youth Ministry.

Mr. Taylor announced that the Khourys and the Taylors are planning the annual Christmas gathering of the Vestry. The dinner will take place either Saturday, December 11, or Sunday, December 19, and will be held at either the Khourys’ or the Taylors’ house. Vestry members will be notified as soon as the plans are finalized. ( Later note: in both cases, the decision was made by the former.)

Mr. Taylor brought up the issue of moral values and Christian values raised by the recent national elections. He would like for the Vestry to engage in discussion of this issue.

Junior Warden
The report of the Jr. Warden is attached.

Mr. Carew asked Mr. Varner to give an update on the Annual Giving Campaign. Mr. Varner reported that to date 401 pledges have been received for a total of $863,565, for an average pledge of $2154, up about 18% from last year. The median pledge is $1300. New pledging units number 34. The follow-up process will entail three steps instead of the two-step process used in the past. The first step will be calls from members of the Annual Giving Committee, being soon followed by calls from Vestry members after the December Vestry meeting, and finally calls in January from the Stewardship Formation Chair and others designated by him.

Mr. Carew reported that campaign chair Ann Henley plans to prepare an “after action report.” Mr. Carew praised the excellent work of Ms Henley, and Mr. Trapani added praise for the marvelous job done by Mr. Carew, to which the Vestry responded with applause.

Parish Administrator
The report of the Parish Administrator is attached.

Mrs. Hastings reported that she has determined that automatic debit transactions for pledges are secure because of encryption technology.

Treasurer
Attached are the Treasurer’s Report narrative for October and the Combined Balance Sheet as of October 31, 2004. Also attached is a budget comparison for September/October 2003/2004.

Mr. McGee reported that the deficit to date is only $23,000, as compared to $68,000 at this time last year.

Mr. McGee asked for Vestry approval of the recommendation to establish a line of credit with Bank of America for expenses for the new organ for the chapel. He explained that at the conclusion of installation of the organ, expected to be in May 2006, the line of credit would be converted to a term loan. The debt service is to be included in the operating budget.

Mr. Trapani asked if there might be an argument for loaning the necessary funds to ourselves. Mr. McGee replied that this would complicate the issue and that having a line of credit keeps the issue visible. He added that there is hope that the line of credit will not have to be used, and in the event that it is needed, there is no pre-payment penalty. The line of credit is basically a back-up plan and exists to protect us in a worst case scenario.

Mr. Trapani said that he is uncomfortable with how the organ project is proceeding. He is concerned about the gap between the initial gift for the project and the timing of its receipt. He is also concerned about the gap between the amount of the gift and the additional funds needed to complete the project. He is worried that the Vestry will have to fund more of the gap than was originally anticipated. He observed that potential donors to the organ project are being approached at the same time as the Annual Giving Campaign. He suggested that the Vestry receive monthly updates on the progress being made in securing additional gifts for the organ. Mr. Elkins-Williams said that there are five or six potential major donors who are being contacted, only one of whom is a parishioner. To date, only one individual has expressed no interest in this project.

Mr. McGee reported that the $40,000 first payment on the organ comes due in December. Then in 2005, payments on the organ will total $233,000.

Mr. Taylor suggested that, in the event of a shortfall in the efforts to raise sufficient funds to support the organ project, there are some parish funds that exist for the purpose of the chapel and could be used to reduce the debt.

It was moved by Mr. Taylor, seconded by Mrs. DeSaix, and passed unanimously, that the Vestry support a line of credit of up to $400,000 with Bank of America, for expenses related to the chapel organ, pending the approval of the Bishop and the Diocese. See the resolution below.

RESOLUTION OF THE VESTRY
CHAPEL OF THE CROSS
NOVEMBER 18, 2004
BE IT HEREBY RESOLVED, THAT THE VESTRY OF THE CHAPEL OF THE CROSS IN CHAPEL HILL, NORTH CAROLINA APPROVED THE ESTABLISHMENT OF A LINE OF CREDIT UP TO $400,000 IN ORDER TO SUPPORT THE ACQUISITION AND INSTALLATION OF AN ORGAN FOR THE CHAPEL. THE LINE OF CREDIT WILL BE IN ACCORDANCE WITH A LETTER OF COMMITMENT RECEIVED FROM THE BANK OF AMERICA ON AUGUST 17, 2004 THAT IS HEREBY ATTACHED. THE VESTRY REQUESTS THE APPROVAL OF THE DIOCESE IN ORDER TO PROCEED WITH THIS ACTION.

Finance Committee
Attached is the report of the Finance Committee.

Mr. Scarborough reported that the Finance Committee hopes to complete on Monday, December 6, its work in drafting a preliminary 2005 budget for Vestry consideration.

Buildings and Grounds Committee
The report of the Buildings and Grounds Committee is attached.

Mr. Evans reported that the conversion of the boiler is now complete.

The Chapel Committee is making progress. The organ builder has realized that modifications can be made to the swell box of the organ without compromising function. The benefit is that the visual bulk of the organ will be lessened. The committee is still working on the details of the decorative elements of the organ.

Personnel Committee
Mr. Trapani reported that the Personnel Committee recommends that clergy and staff salaries be raised 3.5% in the form of an increased salary pool. This new model addresses the issue of the need to recognize market forces and changed responsibilities. The recommended salary increase, combined with the additional funds needed to fund David Frazelle’s position for a full year (this year having been a budget expense only for the month of December), increase the salary budget request by 13.8%. All other line items remain flat, and the total increase for all line items is 8.17%.

Mr. Taylor continued by saying that this parish is blessed with talented clergy who have been at the Chapel of the Cross for many years. Mr. Trapani acknowledged that there is a gap between the salaries we offer our clergy as compared to other churches in the diocese of similar size.

The Personnel Committee is also studying the issue of hospitality and housekeeping services, especially the additional housekeeping services needed for such parish events as funerals, but the committee is not yet ready to make a recommendation in this area.

Hospitality
The report of the Hospitality Committee is attached.

Mrs. Schoenfeld reported that the Hospitality Committee recently hosted a successful meeting of leaders of parish groups related to hospitality. She said that there is a need for greeters at Sunday services. Plans are being made for a shepherding program for newcomers during their first year in the parish. She also announced a reception to be held between the morning services of Lessons and Carols on Sunday, December 12.

Review of Youth Ministry
The Vestry welcomed to the meeting EYC parent and youth representatives Rick and Miriam Fahrer and son Harrison, Lynn Wilson and daughters Kathryn and Rachael, Jo Williams and daughter Kate, and Ann Baker, who came to speak to the Vestry about the status of youth ministry at the Chapel of the Cross.

Ms Wilson began by asking what is the church’s mission and commitment to the youth program. Communication continues to be an issue. At present, e-mail is the way in which the group communicates. There is a need to make it easier for the youth leadership to communicate with the parents, who are very willing to help in any way.

Mrs. Fahrer stated that there is a need to build on the progress made in recent years in our ministry to youth. Financial commitment is one of many ways to meet the needs of our youth. Ms Williams said that the parish needs to advocate for youth so that they can grow in their faith to become active adult members of the church.

Rachael Wilson spoke about the lure of the University Methodist Church youth group for some of our parish youth. The University Methodist youth group seems to be a closer-knit group than our EYC. Ms Wilson added that we need to make reasonable opportunities for our youth. Kathryn Wilson said that one attraction of the University Methodist youth group is that they are discussing faith. Mr. Trapani asked where our youth have such discussions of faith, if not at EYC. Rachel Wilson replied that many such discussions took place on the summer mission trip, to which Kathryn Wilson added that many questions of faith are not being answered here in the parish environment. Adrian Fahrer echoed the positive impact of the mission trips on youth and their personal faith journey.

Ms Baker addressed the issue of staffing. She stated that Unviersity Methodist Church has a full-time staff position for youth, in addition to clergy. The Chapel of the Cross needs to give more serious consideration to the possibility of additional staff. She added that the greatest effect on youth is achieved when an adult knows individual youth on a personal level.

Mr. Fahrer acknowledged the incredible job that Ms Lee has done with our youth program, to which the Vestry, along with the parents and students, responded with enthusiastic applause. Ms Lee responded by expressing her appreciation to this group of parents and youth for coming to the Vestry for this important discussion.

Mrs. Fahrer also expressed the need to develop cohesiveness among the parents.

Announcements
In place of a focus session in December, the Vestry will meet in executive session to discuss the 2005 salary plan.

LIST OF ATTACHMENTS

(Attachments are available in the library for review.)

Mr. Elkins-Williams – Ask Tom Mander to take a look at lenses and at bulbs in lighting fixtures in chapel and in dining room.

Mr. Trapani – Have shadow box display made for flag and certificate received from Robert Champion.

Mr. Elkins-Williams – Ask Robert Wright to provide Vestry with monthly updates on progress in securing gifts for organ project.