Report of the
Board of Directors of the Bible Fellowship Church
The Board of Directors of the Bible Fellowship Church held four regular meetings to attend to corporate business related to Annual Conference, to agencies, and to the churches.
The Board provided oversight and advice in respect to fiscal, legal, and property acquisition in the following areas:
Annual Conference: medical insurance, administrative budget, Pinebrook Junior College property.
Churches: Newark, NJ
It is anticipated the Church Extension Department will begin to use the facilities which formerly housed Salem Bible Fellowship Church, Allentown, to establish a Hispanic church. Also, the Board of Directors has begun discussions to determine whether the Haitian congregation now using property formerly known as Emmanuel Bible Fellowship Church, Philadelphia, will be able to purchase that property.
In response to a large premium increase contained in the proposal of Inter-County Hospitalization-Health Plan to provide medical insurance for Bible Fellowship churches and agencies, the Board of Directors engaged Capital Blue Cross and Blue Shield to provide comparable services at far lower prices beginning December 15, 1997.
The report of the Board of Directors to the 114th Annual Conference envisioned that sale of the 5.711-acre parcel of the property containing the buildings of the Pinebrook Junior College would be consummated by the end of the summer of 1997. Though the Basile Corporation remains committed to purchasing the property, and has recently agreed to an extension of an agreement of sale through June 1998, it has not been possible to complete the sale of the property. A decision by the Upper Saucon Sewer Authority to place a moratorium on new hookups into the system along with a ruling that a new owner would not have the right to use the system at the level maintained by the Pinebrook Junior College when it was in existence is the single remaining issue blocking the sale. During the year there has been frequent contact by mail and telephone between representatives of the Board of Directors and Attorney Joseph A. Fitzpatrick, Jr. In addition, meetings were held with Mr. Fitzpatrick and representatives of Basile Corporation. There was also a meeting with State Representative T. J. Rooney and several contacts with State Representative Merle Phillips, a member of Sunbury Bible Fellowship Church. Members of the Board of Directors also petitioned the Upper Saucon Sewer Authority for relief in person in July and November of 1997. Despite an ongoing dispute between the Borough of Coopersburg and Upper Saucon Sewer Authority as to who is to blame for hydraulic overload of the system during heavy rainfall, only recently have informal face-to-face meetings begun between representatives of the two parties. Accordingly, the Board of Directors and the Basile Corporation are anticipating joint legal action aimed at speeding a resolution of the problem.
The Basile Corporation has recently expressed a desire to purchase the three additional parcels of the Pinebrook Junior College property. It is not likely that serious talks on this will take place until it is clear the buyer can use the sewer system.
In carrying out the directive of the 114th Annual Conference that the Board of Directors obtain funds to pay operating costs of the Pinebrook Junior College property through loans or assessments from Bible Fellowship Church agencies, representatives of the Board of Directors met with representatives of the agencies and obtained their agreement to lend funds to the Board of Directors. Under this agreement, agencies have loaned enough money to the Board of Directors to cover carrying costs, pay off a loan in the amount of $96,750 held by Core States Bank, and reduce the principal of a loan held by Quakertown National Bank by $50,000. Although this has reduced the amount of interest being paid on money borrowed, it is urgent that the Annual Conference adopt a plan to liquidate the substantial indebtedness that will undoubtedly remain after sale of the property. It should also be noted that since money loaned by agencies is being used to replace money borrowed from banks, the Board of Directors has declared that these loans be placed immediately behind bank loans in order of payment.
All funds are deposited in the Farmers First Bank, Lititz. Accounts were audited by Charles Albert.
Recommendations: We recommend the 115th Annual Conference adopt the following:
1. Resolved, that the rate of mileage reimbursement for conference business be 22¢ per mile.
2. Resolved, that the administrative budget for January 1, 1998 to December 31, 1998 be adopted.
3. Resolved, that the administrative budget for January 1, 1999 to December 31, 1999 be approved for submission to the churches for their pledges.
Pledges for the 1999 administrative budget shall be received by the financial secretary by September 1, 1998.
Board of Directors of the Bible Fellowship Church: James A. Beil, President and Hospitalization Secretary; Carl C. Cassel, Vice President; David J. Watkins, Secretary; Horace A. Kauffman, Financial Secretary; Robert W. Gehret, Treasurer; Bert N. Bosius, Raymond R. Dotts, Randall A. Grossman, L. James Roberts, Jr.
ADDENDUM TO THE REPORT
Proposal to Retire Debt Associated with the
Closing of Pinebrook Junior College
A. Introduction
The issues surrounding the sale of the former Pinebrook Bible Conference had not been fully resolved at the time of this proposal. But the general outcome is now anticipated and the need to address the debt warrants the preparation of this proposal. Only time will reveal the exact outcome, and we encourage the members of Annual Conference to continue to pray for the Lords will in this matter. Those assumptions which are most likely to vary will be identified, but on the whole the numbers are conservative, and of a worst-case-scenario nature. It is anticipated that the exact numbers will be calculated and made public when the final sale of Pinebrooks properties are completed.
B. Summary of Proposal
The proposed method of retiring the debt is in two forms: 1) each church is urged to enter into a faith covenant with the other BFC churches to contribute 1% of its annual offerings for up to 4 years, and 2) each church is urged to contribute the entire offering of one Sunday of its choosing in the year 2000 (there are 53 Sundays in 2000).
C. Details of Proposal
Annual Conference (1997 Yearbook p. 36) has determined that debt to banks and other individuals and organizations from which money has been borrowed are to be repaid before money borrowed from the funds controlled by the Board of Directors. Money spent from funds controlled by the Board of Directors, namely the Fund to Promote Church Extension, is thus last in priority to be replenished. Yet the desire to support the extension of the church should not be delayed for several years. For this reason the proposed repayment is in two forms: 1) the retirement of debt and 2) the replenishing of funds to extend the BFC.
Obligations as of 3/31/98
1. The Retirement of Debt
Interest Accrued $ 22,295
Notes 431,000
Mortgage 284,500
$737,795
Projected Obligations and Credits
Accruable Interest (1999-2002)$ 60,0007% average
Property Sales 400,000 could be 25% higher
$ 397,795
Method of repayment – churches contribute 1% of annual offerings for up to 4 years. Total offerings in 1997 were $10,023,975 (1997 Yearbook, p. 164). Each church is urged to contribute 1% of its offerings (through budget or other means) to apply $100,000 to the debt in 1999, 2000, 2001, and 2002 until the debt is retired.
2. The Replenishing of Funds to Extend the BFC
The Fund to Promote Church Extension is largely the result of the sale of abandoned church properties, which the conference has chosen to designate of the extension of the church (Faith & Order 512-1,3[6]). Annual Conference had the power to use it in that way, or to use it otherwise. During the Pinebrook crisis, the Board of Directors reluctantly use the Fund to pay actual debts. Now it is time to seek to build up the Fund again so that the work of church extension may not be hindered. The Board of Directors believes the Faith & Order should also be revised in order to anticipate any future contingency of a similar nature.
In order to more quickly rebuild a fund to extend the BFC, each church is encouraged to designate one Sunday in the year 2000 to contribute its entire offering to the Fund to Promote Church Extension. (There are 53 Sundays in the year 2000, so the impact on other budget priorities should be minimal). The average total Sunday offering in our churches in 1997 was almost $200,000, so that the concept, if vigorously promoted, should raise a large amount of money to rebuild the Fund to Promote Church Extension. In this one-time fashion we can enter the new millennium with a fresh impetus to extend the church.
Should this method fail to raise a satisfactory amount of money, Annual Conference could adopt other means at a later date to increase the size of the Fund to Promote Church Extension.
D. Implementing Resolutions
1. Whereas, the projected debt in the sale of the Pinebrook Bible Conference property is over $300,000 to agencies outside of the Board of Directors of BFC, and
Whereas, we have a moral obligation to repay our debts, therefore be it
Resolved, that we commit ourselves to one another and to the Lord to contribute 1% of the offerings of the particular churches and organized missions for a period of up to 4 years beginning in 1999 to retire this debt.
2. Whereas, the Board of Directors used $310,000 from the Fund to Promote Church Extension in order to meet obligations concerning the closing of Pinebrook Junior College (which has accumulated $71,243.69 in interest as of 12/31/97), and
Whereas, the Faith & Order says of the Fund to promote Church Extension It shall use the net proceeds of the sale of such property for the extension of the BFC (512-1.3[6]), and
Whereas, the Annual Conference has ruled that money owed to ourselves is lower in order of priority for repayment than debts to others (1997 Yearbook p. 36) and such debts may exceed $300,000 and
Whereas, having a larger Fund to Promote Church Extension is greatly desirable to further the extension of the BFC, therefore be it
Resolved, that we remove the obligation to repay the $310,000 plus interest to the Fund to Promote Church Extension, and further
Resolved, that each particular church and organized mission dedicate the entire offering from October 29, 2000 (the year 2000 has 53 Sundays) as a gift to the Fund to Promote Church Extension.
3. Whereas, delay in the sale of the Pinebrook Bible Conference property has resulted in significant financial obligations for which the Annual Conference has made no provision, and
Whereas, there is the potential for similar circumstances to arise in the future, and
Whereas, the Annual Conference has limited the use of proceeds of the sale of properties deeded to particular churches which have closed to the extension of the BFC (Faith & Order 512-1.3[6]), therefore be it
Resolved, that the final sentence of the Faith & Order 512-1.3[6]) be replaced with Proceeds of the sale of such property shall be for the extension of the BFC except when otherwise mandated by Annual Conference upon the recommendation of the Board of Directors of the BFC.
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