Annual Meeting - First Unitarian Universalist Church of Houston

1. The Preliminaries(the same as last year) First Unitarian Universalist Church of Houston, Texas May 15, 2016 Annual Meeting

2. Agenda • Meeting Formalities • Establish Quorum • Appointment of Roles • Meeting Rules – vote • Covenant • Approve minutes from last year – vote • Elections • Nominating Committee & Board nominees - vote • State of the Church Presentation • Budget presentation - vote

3. Meeting Organization • Museum District: Chairperson/President Karen Carlson • Thoreau/Stafford Coordinator Deirdre Hammons • Copperfield Coordinator Tracy Cook • Process Observer Michael Morrison • Timekeeper Jennifer Sorrells • Parliamentarian Jeff Skarda • Master Teller Jennifer Sorrells

4. Meeting rules for adoptionSame as last year • Speak for 2 min. • Don’t speak a second time until others have had opportunity to speak • After 10 min. there will be automatic vote to cease/continue discussion ------------------------------------------------------------------------------------------- • Please speak to the chairperson/camera • The camera can see your face that way. The other campuses would like to see your face. • Tell us: • Your name • Are you FOR or AGAINST the issue? • Make your statement.

5. Candidates for OfficeNominations from the Nominating Committee

6. Board of Trustees • New Candidates – 3 year term • Bob Miller Museum District • Jan Elias Thoreau • Frances Johnson Museum District • Other Board members for 2016-17 • Michael Morrison Museum District 2015-2016 Vice President • John Vindekilde Thoreau • Joe Zuchlewski Museum District • Jennifer Sorrells Museum District • Allan Perkins Copperfield • Linda Richardson Museum District • Retiring Board members • Tracy Cook Copperfield • Deirdre Hammons Thoreau • Karen Carlson, President Museum District

7. Nominating Committee • New Candidates – 2 year term • Andy Savidge Copperfield • Kendra Pecci Museum District • Other committee members for 2016-17 • Garth Ogzewalla, Chair Thoreau • Marilyn Knight Museum District • Mary Koch Museum District • Board Past President • Board representative (VP is recommended) • Retiring Members • Joyce Ambler Museum District • Andy Savidge Copperfield • David Smith, Past President Museum District • Michael Morrison, Board VP Museum District

8. State of the ChurchWhere we have been and where are we going? First Unitarian Universalist Church of Houston, Texas May 15, 2016 Annual Meeting Presented by the Board of Trustees

9. Mission Statement • “A spiritual community for all: advancing justice and embracing diversity with love and acceptance.” • Jointly created with all three campuses. • Adopted at Annual Meeting last year.

10. New Ends Statements(Goals of the Church) • P - Promote love and acceptance • E - Extend Unitarian Universalism • C - Create Community • A - Advance Justice • N - Nourish Spirituality • Intentionally simple and broad to allow Sr. Minister and staff to be creative in implementation • Board monitors and communicates to congregation

11. New Initiatives of the Last Five Years Rev. O’Connell arrives

12. “Nourish Spirituality”Worship • ‘Simple church’ (Core ministry focus) - 2013 • Focus main resources on the ‘Core Ministries’ of the church; worship, RE, SJ, etc. • Splits ‘Enrichment Opportunities’ from ‘Core Ministries’ • Growth Groups - 2014 • Take the ideas of the sermons and take it to the next level • Connect, Grow, Serve - 2014 • Simple refocus of how we progress in our faith • New small groups (CF) - 2016 • “Faith Walking for Humanists”

13. “Advance Justice”Social Justice • Short term Social Justice Projects - 2011 • Currently have ~27 individual projects across 3 campuses • Signature Social Justice Project (MD) - 2012 • Large multi-year commitment to Healthy Parenting • UUV4J (UU Voice for Justice) – 2013 • Greater Houston UU community to be prepared to rapidly respond to current social injustice issues • Issues: Religious pluralism, LGBTQ, reproductive rights, racial equality • Joint effort with Houston Area UU Churches • Signature Social Justice Project (CF) – 2015-16 • New tutoring & mentoring project at Horne Elementary

14. “Advance Justice”Signature Projects (oldest to youngest) • Thoreau Dream Scholarship Program (Thoreau) • $35-40,000/year in scholarships (8-10 college students/year) • 12% increase in contributions ($4,000), post merger • From church members, fund raising events, corporate sponsors • Healthy Parenting (Museum District) • Tutoring & Mentoring at Lawson Academy in 3rd Ward • Tutoring, mentoring, and child care at Project Row Houses in 3rd Ward • Last 18 months: 64 church participants gave >2,000 hours of service • Horne Elementary (Copperfield) • Tutoring, Mentoring, and various forms of teacher support • New 2015-16 project

15. “Extend Unitarian Universalism”Building UU Relationships • Multisite – 2013 • Joined 3 churches • Copperfield, Thoreau, Museum District • Greater ministerial depth with 4 ministers • Collaborative environment between ministers, RE & music directors • More variety, sharing of ideas, greater depth of ministries & programs • A team creates stronger foundation for stability and growth • Improved efficiency of administration • Connections - 2015 • Ministerial advice/ support for Northwoods UU

16. “Extend Unitarian Universalism”Celebrating the beginnings of our suburban presence • Thoreau Celebrates 20th Anniversary • May 12, 1996 • Special thanks to the Charter Members still active • Joanie Havlick, Ron Hammons, Peggy DeMarsh, Elaine Hickey, Noel Zinn, Deirdre Hammons, Ann Reed, Gene Reed, Valerie Tolman, Davis Tolman • Copperfield Celebrates 21st Anniversary • April 9,1995 • Special thanks to the Charter Members still active • Allan Perkins, Dana Ashrawi

17. Length of Membership (by Pledge Unit) 26% of pu • ~40% of congregation is new within the past 5 years. Pledge Units Membership in years 49% of pu 43% of pu Pledge Units Pledge Units Membership in years Membership in years

18. Our UU Neighborhood • 43 UU Churches in Texas • 8 have membership >200 • 3rd largest UU church in TX • FU Dallas 1020 • FUU Austin 605 • FUU Houston 465 • Growth since 2010 • Organic growth at MD • Merger of MD, CF, TS Texas UU Churches Rev. O’Connell arrives 600 2006 FUU Houston 1996 2016 Thoreau 400 Emerson Copperfield 2010 Bay Area 200 Northwoods Members From UUA Southern Region Staff 2015

19. Financial • Capital Campaign (MD) – 2014-5 • Implementing of successful 2014-15 capital campaign, • Playground is complete • Chancel is complete • Foundation & bathrooms – summer 2016 • Detailed information to be supplied separately* • All campus budgets are balanced (policy requirement) • More in Budget Section *see Capital Campaign Handout

20. Did You Know?Religious Education (all campuses) • ~110 children & youth are “regular participants” • ~15% of congregation volunteer for RE • RE Teachers - 31 • Young adult leaders - 3 • Mentors - 6 • OWL Teachers - 7 • Parent Group - 7 • Growth group leaders - 13 • Summer RE teachers - 13 • 12 paid staff • 1 ¼ DRE • 10 part time child care workers

21. Did You Know? • ~70% of total congregation participated in SJ projects • Est. ~80% of congregation participated in at least 1 church ministry/activity • High involvement of members: good sign of church health • ~50% of CF participation in “Faith Walking for Humanists” small groups • ~10% of congregation participates on Welcome Teams • ~10% of congregation participates in Music Ministry • Giving to Our Communities/SJ (2015-2016) • Shared half our offering ($20,000) with community partners • Thoreau Scholarship* ($37,000) • Social Justice budget ($3,200) *Thoreau scholarship is separate dedicated fund and not shown as a budget item

22. Thinking Ahead • More than 90% of US churches are declining • We are doing far better that most, but always want to do better • Churches that grow are outwardly focused* • Our church is certainly outwardly focused • But there is no magic formula for growth • Board of Trustees & Senior Minister believe that growth is essential to the future of the church • Rev. O’Connell recently began focusing on growth initiatives • Recent initiatives in progress • New membership team (MD) – help build connections with new members • Social media outreach experiment (TS) • Revisions to website (our primary window to the world) * McIntosh & Arn, 2013

23. New Initiatives of the Last Five Years Rev. O’Connell arrives

24. Thanks to your time, talent, and treasure First Church has accomplished a lot on all 3 campuses in the last 5 years • You are always invited to share your comments or visions for the future through the Healthy Communications Team, the Board of Trustees, or the Ministers • Thank you

25. Budget Highlights First Unitarian Universalist Church of Houston, Texas May 15, 2016 Annual Meeting

26. Financial Highlights • Church income is down • Generous givers. Many pledge increases from members • Increased number of member early retirements, going part-time, and lay offs • Budget would have been up had it not been for increased retirements and layoffs • Projected income is down at many charitable organizations due to local economic factors • Includes charitable organizations such as United Way, Jewish family services, and others • Policy requires church budget to be balanced

27. Financial Highlights2016-2017 Budget Compared to Current Year • Copperfield budget down 5% (~$3,000) • Overall income down $7,000, expenses reduced $3,000 • Deficit of $4,100 • Thoreau budget down 14% (~$22,000) • Pledge income down $23,400 • Due primarily to retirements, job loss, and move • Campus minister change from half to quarter time • Will attempt to maximize ministerial “face time” on Sundays • Museum District budget down 1% (~$5,000) • Pledge income is down $3,000 (~ ½ %) • Reduced income expectations • Reduced expectation for Inspiration Sunday ($10,000) down by $5,000 • Reduced expectation from auction ($13,000) down by $9,000 • Higher expenses: bank fees, insurance, maint. & many small items (~$6,000) • Net staff cut (~$10,000) • Cut hours of part-time administrative staff • Add 5 hr/wk bookkeeper

28. Financial HighlightsSustainability • For first time the budget relies on drawing upon existing funds to supplement the budget • Copperfield: $4,100 (~ 7% of budget) CF Bldg. Fund • Thoreau: $28,100 (~21% of budget) TS Oper. Fund • Museum District: $8,000 (~ 1% of budget) MD Endowment Growth • These draw downs may be minimized or eliminated if situation improves • Supplemental funds drawdown not sustainable over the long term • Overall charitable giving is down this year, signs are for economy to pick up next year • Embarking on a publicity campaign for all three campuses this fall to bring in new members

29. Staff & Compensation* • Treasurer & full Board review all ministerial & staff compensation • Compensation is within UUA guidelines • One exception due to big change in UUA guidelines. Partially rectified this year, to be fully rectified next year • Changes from last year • First Church minimum wage is $12/hr., up from $10/hr. • Benefits now given to ¾ time staff compared to full time • Employees (half time or more) on a 52 rather than 50 week schedule. Means a minimum 2 weeks vacation for all staff working at least 20 hrs/wk. • Employees who have preferred health benefits or certain pensions elsewhere, may instead receive the cash equivalent in lieu of the First Church benefit. * See Staff & Compensation handout

30. General Budget Allocationall campuses Total Budget $822,770 Financial 5% $45,055 Personnel 62% $511,557 4 full time 21 part time People Full time Part time 4 ministers 2 2 2 DREs 1 1 4 Office staff 1 3 1 Music Director 0 1 2 Accompanists 0 2 10 Child care 0 10 2 Sextons 0 2 Utilities Insurance Office Maintenance Rent

31. MD Social Justice Budget Petition • $20,000 Shared offering to community partners • $ 3,200 Healthy Parenting ($750), SJ team general ($2,450) • $ 714 UU Tx Justice Network • $23,914 Total SJ Line item* • Petition requests increasing non-shared offering budget • $3,200  $6,364** or approx $3,164 more • If the suggested changes are made, the budget still does not change *See handout on how Social Justice funds are allocated at MD ** This number is 1% of the MD budget of $636,422

32. Final Budget Comments • Budget is balanced • Short term use of various existing funds • Is a reasonable allocation to fund the different ministries of the church • Supported by Board of Trustees