The Episcopal Church in the Diocese of Northwest Texas Board of Trustees Meeting November 30, 2017, 10:00 a.m. Hulsey Episcopal Center, Lubbock, Texas
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1 Voting members present: Non-voting members present: Non-voting members absent: The Episcopal Church in the Diocese of Northwest Texas Board of Trustees Meeting November 30, 2017, 10:00 a.m. Hulsey Episcopal Center, Lubbock, Texas Mr. Ricky Bowman; Mr. John Caldwell; Mr. Frank Deaderick (Assistant Treasurer); Mrs. Sally Emerson; Mrs. Nancy Estes; Mr. Carrol Holley (Treasurer); The Rt. Rev. Scott Mayer (President) The Rev. Cn. Mike Ehmer (Canon to the Ordinary and Secretary) Mr. Tom Choate (Chancellor); The Rev. David Perdue (Standing Committee Representative) Bishop s staff members present: Mrs. Anna Mora (Finance Manager) Opening Prayer The meeting began at 10:09 a.m. with prayer led by Bishop Mayer. Investment Report Mr. Eric McDonald and Mr. Tyler Sturdivant of McDonald Capital Management addressed the Board regarding the diocesan investments. As of November 29, 2017, the diocesan holdings stand as follows: Previous 12-Months Previous 3-Year Previous 5-Year Inception to Date Value as of Account 11/29/2017 Conference Center $1,170, % 5.30% 6.37% 7.23% Temple/Quarterman $1,723, % 7.07% 6.62% 7.76% Stevenson $1,801, % 6.28% 5.50% 6.19% Trustees $1,603, % 6.26% 7.25% 7.81% Total $6, % 6.26% 6.31% 7.19% Approval of Minutes Mr. Bowman moved to ratify the August 29, vote to approve the minutes of the August 23, 2017 meeting; Mrs. Emerson seconded the motion, which was approved unanimously. Trustee Fund Financial Report Mr. Holley reviewed the status of the Trustee Fund as of October 31, Trustees Fund Beginning Balance (January 1, 2017) $1,707,070 $1,842,900 Contributions & Program Receipts Income 43,046 43,046 Transfers in From Other Funds 72,236 72,236 Gain/(Loss) on Sale of Securities 60,093 60,093 Unrealized Gain/(Loss) on Securities - 86,169 Administrative & Management Fees (21,754) (21,754) Program Expenses (115,225) (115,225) Transfers Out to Other Funds (99,841) (99,841) Ending Balance (October 31, 2017) $1,646,349 $1,868,348 Page 1 of 2
2 Old Business Canon Ehmer reported that the stained-glass restoration work at All Saints, Colorado City is now complete. In May 2014, the Trustees approved expending up to $20,000 for this work from the congregation s funds held in the Trustee Account. Because the congregation had been making monthly payments on the work since it began, they have now decided they no longer need funds from their funds held by the Trustees. Bishop Mayer said there have been no changes regarding the lawsuit over the property of Good Shepherd, San Angelo. Mrs. Emerson presented a draft revision to the current Diocesan Investment Policy Statement. After receiving input from Board members, Mrs. Emerson agreed to incorporate the comments into the draft document and the revised draft statement to Board members for review. Canon Ehmer informed Board members that plans to move the Canterbury Cross from the former Bishop Quarterman Conference Center to the campus of the Texas Tech Canterbury Center were on temporary hold while the person who will do that work undergoes surgery and recovery. Canon Ehmer also informed the Board that the destruction of an old building on the property of St. Mark s, Coleman is ongoing. Canon Ehmer informed the Trustees that all approved changes to the designated check signers have been accomplished. Bishop Mayer and Mr. Holley notified the Trustees that the Bishop s Lubbock house has been sold, he has moved to Abilene and all of the associated loans have been repaid in full. Canon Ehmer informed Board members that the property of the former St. Thomas, Hereford is now being marketed by Mr. Leon Swift, our real estate agent. In the ensuing conversation, the Trustees agreed that the diocese should develop a diocesan policy on columbariums. New Business Canon Ehmer informed Board members that both St. Thomas, Hereford and All Saints, Perryton were closed officially at the October Diocesan Convention. Mr. Swift will also act as our real estate agent for the sale of the former All Saints property. Mrs. Anna Mora discussed possible repairs to the Hulsey Episcopal Center in the coming months. Bids were being received regarding flooring and to repair the driveway. Bishop s Remarks Bishop Mayer brought Board members up to date regarding his move to Abilene and on various issues around Northwest Texas and Fort Worth. The meeting was adjourned at 12:15 p.m. The next meeting of the Board of Trustees is scheduled for 10:00 a.m. on Monday, February 26, 2018, in the Hulsey Episcopal Center, Lubbock. Respectfully Submitted, The Reverend Canon Mike Ehmer (Canon to the Ordinary) Secretary Approved, The Right Reverend J. Scott Mayer (Bishop) President Page 2 of 2
3 The Episcopal Church in the Diocese of Northwest Texas Board of Trustees Meeting February 26, 2018, 10:00 a.m. Hulsey Episcopal Center, Lubbock, Texas Voting members present: Non-voting members present: Non-voting members absent: Mr. Ricky Bowman; Mr. John Caldwell; Mr. Frank Deaderick; Mrs. Sally Emerson; Mrs. Nancy Estes; Mr. Carrol Holley (Treasurer); The Rt. Rev. Scott Mayer (President) The Rev. Canon Mike Ehmer (Canon to the Ordinary and Secretary) Mr. Tom Choate (Chancellor); The Rev. David Perdue (Standing Committee Representative) Opening Prayer The meeting began at 10:10 a.m. with prayer led by Bishop Mayer. Investment Report Mr. Eric McDonald and Mr. Tyler Sturdivant of McDonald Capital Management addressed the Board regarding the diocesan investments. As of January 31, 2018, the diocesan holdings stand as follows: Account Value as of 1/31/2018 Previous 12 Months Previous 3 year Inception to Date Conference Center $1,220, % 7.02% 7.92% Temple/Quarterman $1,797, % 9.28% 8.47% Stevenson $1,859, % 7.55% 6.72% Trustees $1,891, % 8.51% 8.41% Total $6,768, % 8.19% 7.82% Following the McDonald Capital report, the Board discussed with Mr. McDonald and Mr. Sturdivant the draft revision of the Board s Statement of Investment Policy. Approval of Minutes Mr. Bowman moved to approve the minutes of the November 30, 2017 meeting as presented. It was seconded by Mrs. Emerson and the motion passed unanimously. Financial Reports Mr. Holley distributed and reviewed the 2017 year-end compilation reports of the investment funds. Conference Center Fund Beginning Balance (January 1, 2017) $1,065,393 $1,114,982 Income 41,307 41,307 Capital Gain (Loss) 24,746 24,746 Market Value Gain (Loss) - 82,931 Administrative & Management Fees (15,967) (15,967) Distributions (50,740) (50,740) Ending Balance (December 31, 2017) $1,064,739 $1,197,259 Page 1 of 3
4 Bishops Temple-Quarterman Fund Beginning Balance (January 1, 2017) $1,765,852 $1,878,370 Income 63,660 63,660 Capital Gain (Loss) 70,966 70,966 Market Value Gain (Loss) - 126,390 Administrative & Management Fees (19,004) (19,004) Transfers (160,701) (160,701) Ending Balance (December 31, 2017) $1,720,773 $1,959,681 Stevenson Endowment Fund Beginning Balance (January 1, 2017) $1,673,083 $1,691,337 Income 35,500 35,500 Market Value Gain (Loss) - 195,739 Administrative Costs (6,900) (6,900) Distributions (78,000) (78,000) Ending Balance (December 31, 2017) $1,623,683 $1,837,676 Trustees Fund Beginning Balance (January 1, 2017) $1,707,070 $1,842,900 Contributions & Program Receipts Income 60,260 60,260 Transfers in From Other Funds 72,236 72,236 Capital Gain (Loss) 55,573 55,573 Market Value Gain (Loss) - 120,585 Administrative & Management Fees (26,724) (26,724) Program Expenses (127,801) (127,801) Transfer Out to Other Funds (99,841) (99,841) Ending Balance (December 31, 2017) $1,641,497 $1,897,912 All reports were accepted as presented. Old Business Good Shepherd, San Angelo: Bishop Mayer said there has been no change to the lawsuit regarding the property of Good Shepherd, San Angelo or the Diocese of Fort Worth. Review of Draft Investment Report: A continuation of the earlier discussion with the McDonald Capital Management team concluded with Mrs. Emerson agreeing to amend the draft with the discussed amendments and it to the Board for an online vote. Moving the Canterbury Cross: Canon Ehmer reported there has been no change since the last meeting. Update on Building Destruction at St. Mark s, Coleman: Mr. Bowman moved to ratify the January 11, vote to approve the distribution to St. Mark s of $3,600 from their line Page 2 of 3
5 St. Mark s Coleman and $3,600 from their line St. Mark s Coleman Invested. Mr. Caldwell seconded the motion, which was approved unanimously. Sale of Properties: Canon Ehmer reported that Mr. Leon Swift is still working to sell the properties of the former St. Thomas, Hereford and All Saints, Perryton. Hulsey Episcopal Center Repairs: Canon Ehmer reported that only two bids have been received for updating the flooring in the building and repairing the drive way. One more bid each is still being sought. New Business St. Stephen s, Sweetwater Request: Canon Ehmer presented a letter from the Bishop s Warden at St. Stephen s, Sweetwater requesting a 2018 spending amount from the Stevenson Endowment of $72,911, or $6,076 per month. Mr. Caldwell moved to approve the request, Mrs. Emerson seconded the motion and it was approved unanimously. Bishop s Remarks Bishop Mayer brought the Board up to date regarding his move from Lubbock to Abilene and how that has been working out. He also reviewed the general status of the diocese. The meeting was adjourned at 12:35 p.m. The next meeting of the Board of Trustees is scheduled for 10:00 a.m. on Thursday, May 24, 2018, in the Hulsey Episcopal Center, Lubbock. Respectfully Submitted, The Rev. Canon Mike Ehmer (Canon to the Ordinary) Secretary Approved, The Rt. Rev. J Scott Mayer (Bishop) President Page 3 of 3
6 The Episcopal Church in the Diocese of Northwest Texas Board of Trustees Meeting May 24, 2018, 10:00 a.m. Hulsey Episcopal Center, Lubbock, Texas Voting members present: Mr. Ricky Bowman; Mr. John Caldwell; Mr. Frank Deaderick; Mrs. Sally Emerson; Mrs. Nancy Estes; Mr. Carrol Holley (Treasurer); The Rt. Rev. Scott Mayer (President) Non-voting members present: The Rev. Canon Mike Ehmer (Canon to the Ordinary and Secretary); The Rev. David Perdue (Standing Committee Representative) Non-voting members absent: Mr. Tom Choate (Chancellor) Bishop s staff members present: Mrs. Anna Mora (Finance Manager) Opening Prayer The meeting began at 10:06 a.m. with prayer led by Bishop Mayer. Investment Report Mr. Eric McDonald and Mr. Tyler Sturdivant of McDonald Capital Management addressed the Board regarding the diocesan investments. As of April 30, 2018, the diocesan holdings stand as follows: Account Value as of 4/30/2018 Previous 12 Months Previous 3 year Inception to Date Conference Center $1,171, % 5.72% 7.13% Temple/Quarterman $1,708, % 6.98% 7.52% Stevenson $1,781, % 6.14% 5.95% Trustees $1,843, % 6.57% 7.66% Total $6,504, % 6.41% 7.01% Approval of Minutes Mr. Bowman moved to approve the minutes of the February 26,2018 meeting as presented. It was seconded by Mrs. Emerson and the motion passed unanimously. Financial Reports Mr. Holley distributed and reviewed the April 30, 2018 Trustee investment funds. Trustees Fund Beginning Balance (January 1, 2018) $1,641,497 $1,897,912 Contributions & Program Receipts - - Income 14,279 14,279 Capital Gain (Loss) 55,833 55,833 Market Value Gain (Loss) - (63,465) Administrative & Management Fees (9,508) (9,508) Program Expenses (38,404) (38,404) Ending Balance (April 30, 2018) $1,663,697 $1,856,647 The report was accepted as presented. Mr. Bowman raised the question of merging the Conference Center and Temple/Quarterman endowments into one. Following a short discussion, the Trustees agreed to consider the issue at the next meeting. Page 1 of 2
7 Old Business Good Shepherd, San Angelo: Bishop Mayer gave a short update on the status of the lawsuit, as well as the one in the Diocese of Fort Worth. Mrs. Emerson moved to ratify the March 5, 2018 unanimous vote to approve the Diocesan Investment Policy. Mrs. Estes seconded the motion and it was approved unanimously. Moving the Canterbury Cross: Canon Ehmer reported that a deadline had been given to the contractor to complete the project prior to our Diocesan Convention in October. Update on Building Destruction at St. Mark s, Coleman: Canon Ehmer read a short from Mr. Jack Horne stating that the destruction project is now complete. Sale of Properties: Canon Ehmer distributed a paper copy of the new posting of the Hereford property on the Caldwell Banker website ( and said Mr. Leon Swift stated that the Perryton property will be photographed and posted soon. Mr. Bowman moved to ratify an April 10, 2018 unanimous vote to approve work on the Hulsey Episcopal Center using funds from the Diocesan Maintenance Fund. The motion was seconded by Mr. Deaderick and passed unanimously. New Business With Mr. Holley stepping down from the position of Diocesan Treasurer, effective July 1, 2018, to be the Assisting Treasurer, and Mr. Deaderick moving from Assisting Treasurer to the Diocesan Treasurer position on the same date, there will be an open position on the Board. In accordance with Diocesan Canons, the Trustees may fill the empty position until the next Diocesan Convention. Mrs. Estes moved to have Mr. Holley fill the open slot beginning on July 1st, which Mrs. Emerson seconded. The motion was approved unanimously. Canon Ehmer distributed correspondence from Mr. Joe Alvarado, of San Miguel, Odessa, offering to purchase an empty lot, owned by the diocese, on the same block as San Miguel. A copy of the Ector County tax appraisal for the property was also distributed, indicating the current value of the property on the tax rolls of $5,373. Mr. Alvarado would like to place a mobile home on the lot and live in it, enabling him to monitor the church property more efficiently. After a discussion of the pros and cons of the sale, Mr. Bowman moved to approval a long-term lease of the property for $200 per year (to cover the taxes), with first right to purchase, should the diocese wish to sell the property in the future. Mr. Caldwell seconded the motion and it was approved unanimously. Bishop s Remarks Bishop Mayer discussed the state of the Episcopal Church, including the recent sermon by Presiding Bishop Michael Curry at the royal wedding in England, the upcoming General Convention, and the status of congregations in the diocese. The meeting was adjourned at 12:35 p.m. The next meeting of the Board of Trustees is scheduled for 10:00 a.m. on Wednesday, August 22, 2018, in the Hulsey Episcopal Center, Lubbock. Respectfully Submitted, The Rev. Canon Mike Ehmer (Canon to the Ordinary), Secretary Approved, The Rt. Rev. J Scott Mayer (Bishop), President Page 2 of 2
8 The Episcopal Church in the Diocese of Northwest Texas Board of Trustees Meeting August 22, 2018, 10:00 a.m. St. Stephen s Episcopal Church, Lubbock, Texas Voting members present: Voting members absent: Non-voting members present: Non-voting members absent: Mr. John Caldwell; Mr. Frank Deaderick (Treasurer); Mrs. Nancy Estes; Mr. Carrol Holley; The Rt. Rev. Scott Mayer (President) Mr. Ricky Bowman; Mrs. Sally Emerson The Rev. Canon Mike Ehmer (Canon to the Ordinary and Secretary); Mrs. Anna Mora (Diocesan Finance Manager) Mr. Tom Choate (Chancellor); The Rev. David Perdue (Standing Committee Representative) Opening Prayer The meeting began at 10:18 a.m. with prayer led by Bishop Mayer. Investment Report Mr. Eric McDonald and Mr. Tyler Sturdivant of McDonald Capital Management addressed the Board regarding the diocesan investments and the market situation. As of July 31, 2018, the diocesan holdings stand as follows: Account Value as of 7/31/2018 Previous 12 Months Previous 3 year Inception to Date Conference Center $1,191, % 7.26% 7.29% Temple/Quarterman $1,735, % 7.83% 7.68% Stevenson $1,802, % 7.05% 6.06% Trustees $1,823, % 8.01% 7.90% Total $6,553, % 7.56% 7.18% Approval of Minutes Following a break, Mrs. Estes moved to approve the minutes of the May 24, 2018 meeting as presented. It was seconded by Mr. Caldwell and the motion passed unanimously. Financial Reports Mr. Deaderick distributed and reviewed the 2018 compilation reports as of June 30, 2018 for the following funds. Bishops Temple-Quarterman Fund Beginning Balance (January 1, 2018) $1,720,773 $1,959,681 Income 26,559 26,559 Capital Gain (Loss) 82,735 82,735 Market Value Gain (Loss) - (90,748) Administrative & Management Fees (8,698) (8,698) Transfers (41,226) (41,226) Ending Balance (June 30, 2018) $1,780,143 $1,928,303 Page 1 of 3
9 Conference Center Fund Beginning Balance (January 1, 2018) $1,064,739 $1,197,259 Income 16,618 16,618 Capital Gain (Loss) 68,309 68,309 Market Value Gain (Loss) - (65,745) Administrative & Management Fees (7,314) (7,314) Distributions (24,266) (24,266) Ending Balance (June 30, 2018) $1,118,086 $1,184,861 Stevenson Endowment Fund Beginning Balance (January 1, 2018) $1,623,683 $1,837,676 Income 16,384 16,384 Market Value Gain (Loss) 9,477 9,477 Unrealized Gain (Loss) - (20,129) Administrative Costs (2,500) (2,500) Distributions (36,456) (36,456) Ending Balance (June 30, 2018) $1,610,588 $1,804,452 Trustees Fund Beginning Balance (January 1, 2018) $1,641,497 $1,897,912 Contributions & Program Receipts - - Income 25,555 25,555 Capital Gain (Loss) 73,247 73,247 Market Value Gain (Loss) - (68,755) Administrative & Management Fees (14,073) (14,073) Program Expenses (57,260) (57,260) Ending Balance (June 30, 2018) $1,668,966 $1,856,626 All reports were accepted as presented. After discussion, Mr. Deaderick moved to merge the Bishops Temple/Quarterman endowment with the Conference Center endowment by the end of 2018, pending approval of the Diocesan Chancellor. Mr. Caldwell seconded the motion and it was approved unanimously. Old Business Good Shepherd, San Angelo: Bishop Mayer said there has been no change in the status of the lawsuit regarding the property of Good Shepherd, San Angelo or the Diocese of Fort Worth. Moving the Canterbury Cross: Canon Ehmer reported that Mr. Steve Seymour has moved the cross from the old BQCC property to Lubbock. It is currently on a flatbed trailer in his shop. He is consulting with an engineer to ensure the correct amount of concrete is poured to secure the structure. Canon Ehmer also informed the Trustees of an issue with the elevator at Canterbury. Options are being studied to fix or replace the elevator or remove it and install a ramp. Update on Hereford and Perryton property: Canon Ehmer reported from Mr. Leon Swift, the real estate agent, that there are no changes at this time. Page 2 of 3
10 Hulsey Episcopal Center Repairs: Mrs. Mora reported that work is currently being accomplished on the floors in the Hulsey Episcopal Center. The work will, hopefully, be completed by next week. Leasing of Odessa Property: Canon Ehmer reviewed the process of offering Mr. Joe Alvarado a lease option on the property, rather than a sale. Mr. Alvarado, however, preferred to purchase the property. That approval was given via an vote of the Trustees on July 23. Mr. Caldwell moved to ratify that vote. Mr. Deaderick seconded the motion and it was approved unanimously. Canon Ehmer also reported Mr. Alvarado s request to purchase the small house located on San Miguel s property. After discussion regarding the advantages and disadvantages of such a sale for the diocese and the mission, Mr. Caldwell moved to deny the request. Mrs. Estes seconded the motion and the motion for denial was approved unanimously. New Business Mr. Deaderick distributed a copy of the requested spend rate from endowments for the 2019 diocesan budget. After discussion, Mr. Holley moved to approve the requested 4.25% spend rate (which is the same as the 2018 rate) from the Bishops Temple/Quarterman and Conference Center endowments for 2019, or the combination of the two, should that action be approved. Mrs. Estes seconded the motion and it was approved unanimously. Mr. Deaderick moved that a total of $48,936 from designated funds in the Trustees endowment be authorized for the 2019 diocesan budget for the following purposes: $2,000 from the Education Fund to pay for guest speakers at clergy conferences; $6,600 from the Diocesan Maintenance Fund to assist with maintenance of the Hulsey Episcopal Center; $30,000 from the Seaman Hall Operating Endowment to assist with the maintenance and upkeep of the Texas Tech Canterbury building; $2,961 from the Texas Tech Canterbury Fund to assist with programs at Texas Tech Canterbury; $6,000 from Colorado City, All Saints to support that mission church and, $1,375 from Crouch Estate-St. Luke s to support that mission church. Mr. Holley moved that the request be approved. Mrs. Estes seconded the motion and it was approved unanimously. Bishop s Remarks Bishop Mayer reviewed the status of the diocese, and the work of the 2018 General Convention. He also asked for prayers for Bishop Sam Hulsey, who is undergoing some health issues. The meeting was adjourned at 1:03 p.m. The next meeting of the Board of Trustees is scheduled for 10:00 a.m. on Thursday, November 29, 2018, in the Hulsey Episcopal Center, Lubbock. Respectfully Submitted, The Rev. Canon Mike Ehmer (Canon to the Ordinary) Secretary Approved, The Rt. Rev. J Scott Mayer (Bishop) President Page 3 of 3
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