Annual Report. Treasurer s Report. Our Mission is to worship God by making disciples of Jesus Christ. Westwood Lutheran Church 2016

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1 Westwood Lutheran Church 2016 w Annual Report R E P O R T C O N T E N T : Treasurer s Report 1 Statement of Financial Position 2 General Fund 3 WECC Fund 4 Capital Fund 5 Designated Funds 6 Audit Committee Letter 7 Memorials, Corporate Gifts & Grants 8 Congregation Meeting Minutes 9 Bishop s Annual Report 11 Treasurer s Report Westwood was blessed through your many generous gifts that continued to strengthen our mission and ministries during Thank you for your continual commitment of time and financial gifts which touch lives within our local community and across the globe. In reviewing Westwood s financial reports, 2016 ended in a similar financial position as The General Operating Fund revenue remained flat from 2015 balanced by minimal expense growth due to lower staffing costs. The Early Childhood Center Fund had a 3% increase in overall revenue with a similar increase to expenses marked the final year of the current Mission Appeal. Over three years, the Mission Appeal has raised $1,409,000 of the targeted $1,644,000. The Mission Appeal provided funding for the renovation of Good Shepherd Hall, the redesign of Door 2, and provided financial support to strengthen our community, including the Redeemer housing project and STEP. The remaining $235,000 will be part of our 2017 financial projects. Realizing the Mission Appeal shortfall and the need to address immediate maintenance needs within our building, the congregation voted and approved two measures in July: 1. The sale of donated property (located just south of the east parking lot) to help cover a portion of the shortfall in the current Mission Appeal. After conversations with the city of St. Louis Park, we have recently started to seek buyers for this property. (continued on page 10) Our Mission is to worship God by making disciples of Jesus Christ.

2 Page 2 Annual Report: 2016 Statement of Financial Position For the Years Ended December 31, 2016 and ASSETS Cash and Investments Unrestricted $ 103,643 $ 118,317 Restricted 504, ,742 Property and Equipment at Cost 9,164,331 8,841,396 Total Assets $ 9,772,791 $ 9,390,455 LIABILITIES AND NET ASSETS Liabilities Mortgage Payable $ 1,486,881 $ 1,341,567 Short Term Loan 430, ,280 Other Liabilities 50,763 51,207 Total Liabilities $ 1,967,734 $ 1,937,054 Net Assets Unrestricted $ 7,300,140 $ 7,022,659 Temporarily Restricted 504, ,742 Total Net Assets 7,805,057 7,453,401 Total Liabilities and Net Assets $ 9,772,791 $ 9,390,455 We seek to fulfill Westwood s mission by these six purposes: Worship, Serve, Invite, Connect, Give, Grow 2015 Statistics Baptisms 65 Marriages 9 Confirmed 34 Funerals 27 New Members 80 Average Worship Attendance 633 Confirmation Enrollment 100 Membership 2,525 Transferred/Lapsed Statistics Baptisms 46 Marriages 12 Confirmed 26 Funerals 21 New Members 59 Average Worship Attendance 610 Confirmation Enrollment 75 Membership 2,484 Transferred/Lapsed 131

3 Annual Report: 2016 Page 3 Westwood Lutheran Church General Fund 2016 Budget 2016 Actual 2017 Budget NET ASSETS - Beginning Balance $ 51,868 $ 51,868 $ 47,801 REVENUES Annual Giving 1,544,817 1,475,468 1,538,750 Other Receipts 117,500 99, ,000 Total Revenues 1,662,317 1,574,860 1,676,750 EXPENSES Salaries and Benefits 1,088,029 1,031,933 1,068,100 Outreach 174, , ,000 Administration 92,910 94,243 98,900 Building and Grounds 161, , ,000 Program 56,078 44,502 57,750 Total Expenses 1,572,317 1,498,927 1,581,750 CHANGE IN NET ASSETS 90,000 75,933 95,000 Transfer from(to) Other Funds (90,000) (80,000) (85,000) NET ASSETS - Ending Balance $ 51,868 $ 47,801 $ 57,801 God has called us to this place, as a bold, accessible, engaged and faithful church. TOTAL REVENUES: historical trend $1,800,000 $1,700,000 $1,600,000 $1,500,000 $1,400,000 $1,300,000 $1,200,000 $1,100,000 Annual Giving Total* Includes General Fund Total Revenues, Capital Fund General Revenues, and Designated Outreach Giving Receipts, but excludes Capital Appeal Receipts

4 Page 4 Annual Report: 2016 Caring is our Curriculum Westwood Early Childhood Center Fund 2016 Budget 2016 Actual 2017 Budget NET ASSETS - Beginning Balance $ 19,539 $ 19,539 $ 9,275 REVENUES Tuition 1,312,125 1,323,364 1,394,000 Other Receipts 11,800 9,584 10,400 Total Revenues 1,323,925 1,332,948 1,404,400 EXPENSES Salaries and Benefits 1,139,525 1,114,519 1,198,000 Operating 81,400 94,897 82,550 Food Service 56,000 61,562 60,000 Program 22,000 32,234 22,500 Total Expenses 1,298,925 1,303,212 1,363,050 CHANGE IN NET ASSETS 25,000 29,736 41,350 Transfer from(to) Other Funds (25,000) (40,000) (30,000) NET ASSETS - Ending Balance $ 19,539 $ 9,275 $ 20,625 Children Enrolled in program 90 TOTAL REVENUES: historical trend $1,500,000 $1,400,000 $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 WECC Revenues

5 Annual Report: 2016 Page 5 Capital Fund 2016 Budget 2016 Actual 2017 Budget NET ASSETS - Beginning Balance $ 304,768 $ 304,768 $ 314,492 REVENUES Capital Fund 20,000 34,176 25,000 Mission Appeal 300, ,837 54,495 Land Sale Net Proceeds ,000 Total Revenues 320, , ,495 DEBT FINANCING Principal & Interest Payments (111,888) (112,925) (112,000) Short Term Financing - 171,965 - Financing Payments & Fees (130,188) (130,188) (442,305) Net Debt Financing (242,076) (71,148) (554,305) EXPENDITURES Capital Expenditures 78, ,591 78,293 Mission Appeal Construction 92,000 84,596 - Outreach 9,194 7,954 - Total Capital Expenditures 179, ,141 78,293 CHANGE IN NET ASSETS (101,500) (110,276) (373,103) Transfer from(to) Other Funds 115, , ,000 NET ASSETS - Ending Balance $ 318,268 $ 314,492 $ 56,389 Designated Funds 2016 Budget 2016 Actual 2017 Budget NET ASSETS - Beginning Balance $ 125,974 $ 125,974 $ 190,425 REVENUES Outreach 50,000 80,376 55,000 Operating 20,000 38,740 35,000 Memorials 12,000 29,985 12,000 Total Revenues 82, , ,000 EXPENDITURES Outreach 50,000 62,330 65,000 Operating 20,000 17,320 35,000 Memorials 12,000 5,000 12,000 Total Expenditures 82,000 84, ,000 CHANGE IN NET ASSETS - 64,451 (10,000) Transfer from(to) Other Funds NET ASSETS - Ending Balance $ 125,974 $ 190,425 $ 180,425

6 Page 6 Annual Report: 2016 Memorials, corporate gifts & grants The following individuals were honored with memorials to Westwood during 2016 John Borden Gerald Mickelson Ron Carlson Neil Olsen Dean Clark Mark Pearson Stanley Crist Robert Sater Virginia Forslund Jane Thompson Todd Kent Susan Wessman Nancy Lohmann Special gifts and grants were received from the following organizations Amazon Smiles Benevity Community Impact Fund Century Link Dell Employee Engagement Fund Dell Your Cause Entegris Match Foundation Habitat General Mills Your Cause Grace Circle Holiday Fair Optum Prazak Family Foundation Sathe Charitable Giving Fund Schultz Real Estate Severson Family Foundation Silicon Valley Community Foundation Snyder Family Foundation Stanley Crist Estate Target The James & Ruthanne Vos Family Gratitude Fund of InFaith Community Foundation Thrivent Financial United Way Wells Fargo Matching Program Westwood Lutheran Memorial Foundation Xcel Energy Foundation

7 Audit Committee Report: 2016 Page 7 Audit Committee Members Andrew Nymo Doug Nelson Rhonda Pirkl

8 Congregational Meeting Minutes Page 8 February 7, 2016 DRAFT Attending: 217 voting members attended the annual meeting. Church Council. President Jim Vos reported that there was a quorum (of at least 100 members present) to conduct business and then called the meeting to order. Opening Prayer: President Vos started the meeting at 9:55 a.m. by welcoming those present and led participants in an opening prayer. Secretary s Report: Council Secretary Sue Ferguson addressed the minutes of the 2015 Annual Meeting of the Congregation, copies of which were provided to meeting participants. She asked if attendees would like the minutes to be read aloud or had any corrections. There were no such requests or corrections noted. President Vos asked for a motion to approve the minutes. A motion was made and seconded, and the motion was passed. Treasurer s Report: 1. Previous Year Financial Report Treasurer Doug Waterman thanked the congregation for their faithful stewardship in supporting God s mission at Westwood. He then referred to the Treasurer s Report found in the 2015 Annual Report which was made available to participants. Doug provided a brief overview of the report, pointing out that the Town Meeting had been held the previous Sunday where Q & A and discussion took place. He asked for a motion to approve the report. A motion was made and seconded, and the motion passed. 2. Current Year Proposed Budget President Vos introduced Dave Hill, Chair of the Financial Management Advisory Group. Dave highlighted key points of the 2016 budget. After reviewing the budget, President Vos asked for a motion to approve the budget. A motion was made and seconded, and the motion passed. Nominations Report and Elections: Josh Natzel, Nominations Team member thanked members of the committee and presented the following slate of candidates for Church Council, Nominations Team, Audit Team and WECC Board: 1. Officers and Council Treasurer (4 year term): James Behnke Council Members-At-Large (3-year term): Bob Disch and Nick Lovas

9 Congregational Meeting Minutes Page 9 2. Nominations Team (for 1 st of 2 one-year terms): Peggy Dale, Eric House, Sally Christensen Nominations Team (for 2 nd one-year term): Carole Wogen, Kerri Hammer, Bekah Padilla, Josh Natzel 3. Audit Team: Rhonda Pirkl and Doug Nelson 4. WECC Board: Deb DeSanto and Sarah Stever Seehusen (new Board members) Brooks Anderson and Sarah Brandt (filling out terms of people who needed to step down before their terms were complete) Josh moved that the slate of nominees as presented by the Nominations Team be accepted and the individuals on that slate be elected to the positions indicated and for the terms stated. President Vos asked if there were any nominations from the floor for these positions. Hearing none, he declared the nominations closed and asked for approval. The motion was made and seconded, and the motion passed. Senior Pastor s Report: President Vos introduced Pastor Tania Haber. Pastor Haber began her report by thanking current and outgoing Council and Committee members. She also thanked the Human Resources, Financial, Outreach, Property Management, Children/Youth/Family Advisory Boards as well as all the staff members and many volunteers for their great work this past year. 1. Planning Committee A team of representatives from a variety of different congregational perspectives has been formed to begin assessing the future facility needs and mission/outreach plans to make some recommendations as to what s next. Pastor Haber asked the meeting participants to watch for more information and opportunities for input and feedback as we move through this winter/spring. Planning committee members include: James Behnke (FMAG), Bruce Cameron (At Large), Margo Chelsey (Outreach Ministries), John Stark (Properties Ministry), Tracy Wiese (Former Council President), Pastor Tania Haber (Staff Leadership).

10 Congregational Meeting Minutes Page 10 (continued) 2. Communications Assessment A comprehensive analysis is being conducted by Jonathan and Tracy Wiese which will outline recommendations for enhancing Westwood s communications strategies. 3. Sabbatical Pastor Haber thanked the congregation for the opportunity to take advantage of the great gift of sabbatical, a policy that Westwood provides to its pastors following each five years of service. She outlined her plans for the coming year. New Business: President Vos asked if there was any further new business. Hearing none, he entertained a motion to adjourn the meeting. A motion was made and seconded, and the motion carried. The meeting adjourned at 10:25 a.m. A closing prayer concluded the meeting. Treasurer s Report (continued from page 1) 2. Refinance existing mortgage at a lower interest rate and additional $183,000 of debt to address maintenance priorities (replacement of the roof over the southwest education area and the courtyard windows). By refinancing, Westwood will reduce total interest payments without extending the mortgage term. The financial management of Westwood is guided by the strong and thoughtful leadership of Westwood staff, Financial Management Advisory Group and the Church Council with oversight by the Audit Committee. These teams are diligent stewards of your financial gifts. With the proposed 2017 budget, we continue to stretch beyond our current level of financial support to sow Westwood s mission with exciting new challenges. Outreach opportunities and the addition of staff will help grow Westwood as we create new connections and advocate for a healthy community. We encourage you to prayerfully consider an increase to your current level of financial gifts in 2017 to support our ministry programs. Again thank you for generously and faithfully sharing your financial gifts, as we live Westwood s mission as God s disciples. James Behnke Treasurer

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12 Town Meeting Sunday, February 12, :00 10:40 AM Annual Meeting Sunday, February 19, :50 10:40 AM 1. We believe it is critical at this confusing and chaotic time that people can know each other, belong to each other, and take strength in each other. Therefore: OUR VISION IS TO CREATE NEW CONNECTIONS. Fostering relationships with people throughout our church and neighborhood. Linking with partners who share our work in the world. Building bridges within and across the ways our community is divided, whether by age, money, race, sexuality, religion or other boundaries. 2. We have the potential in our talents, in our facilities, in our passion to touch even more lives, meeting people at every point on their faith journey. Therefore: OUR VISION IS TO EMPOWER DISCIPLESHIP AND MISSION. Growing IN faith, as we study and seek to discern God s will, and apply it in our lives. Increasing the number of people we touch with our ministry. Multiplying those who participate as partners and leaders in our work. 3. We are called to be a vital and necessary part of our world. Therefore: OUR VISION IS TO BE AN ADVOCATE FOR A HEALTHY COMMUNITY. Meeting basic needs and actively seeking ways to end poverty. Strengthening all forms of families. Working and advocating for justice, striving to eliminate inequalities that remain in our society.