Present: Alison Burnley, Alastair Cameron, Madeleine Harding, Phil Lucas, Brian Mayes, Laurie Naumann, Rufus Reade, +Eileen Schott, Don Stubbings, Henry Thompson (in the clerk's chair)
+The members of the working group gave brief self-introductions
+Alastair Cameron, on behalf of Area Meeting gave us +some background:
+Don Stubbings, who was +instrumental in raising some of the questions we will be considering:
+The above might add up to 200K GBP over the next few years. The expense +of the roof repairs stimulated a consideration of whether we should be +more-or-less uncritically committing to maintaining an old building which will +likely continue to require substantial investment. This eventually led to a +presentation to AM in August. In the twenty years since we purchased 7VT, no +overall review of our use of the premises has been undertaken.
+Our circumstances have changed in many ways over that time, including +changes in external regulation: Child Protection, Health and Safety, Food +Sanitation. The rental of our premises has also evolved, alongside an increase +in the number of other churches etc. who make premises available. The issue of +balance between income generated and operating costs, given our commitment to +charging very low rents for Quaker groups/other groups with certain specified qualities.
+At the same time, the awareness of many Quaker users of the premises does +not extend beyond Meeting for Worship on a Sunday.
+One view of the balance sheet is that we are running at a 20K/annum +deficit. Some members clearly see this as an acceptable cost, others think at +the very least the AM needs to explicitly acknowledge this.
+The possibility of moving towards 7VT as the Scottish equivalent of +Friends House has been raised, and deserves to be re-considered, without losing +sight of the history of our previous, failed, attempt to do so.
+Trustees have initiated their own review, and put a hold on all capital +expenditure until this group has reported.
+Some of these issues interact with aspects of the role of the paid +meetinghouse staff.
+One way of looking at the financial side is to see the deficit as the +rent that AM pays for the use we get from the building.
+Phil Lucas recalled that on his and Pat's arrival as Wardens in 1994, the +building was running at a loss, but they were given the explicit goal of making +the building pay for itself. He believes that the revenue account balanced +from around 1997. It's the capital expenditures which provoke the deficit
+Henry Thompson summarised that we have to both get clear what the actual
+numbers are, and then decide how we are going to
Henry Thompson and others attempted to recall the reasons we sold Stafford +Street and bought 7 Victoria Terrace:
+Our next meeting will be at 7:30 p.m. on Tuesday 13th January at 7 +Victoria Terrace.
+Present: Alison Burnley, Madeleine Harding, Phil Lucas, Brian Mayes, +Laurie Naumann, John Phillips, +Eileen Schott, Henry Thompson (in the clerk's chair)
+Prevented: Rufus Reade
+John Phillips presented some summary cashflow figures over the last nine +years (attached).
+Much of BYM deals with property at Local Meeting level -- we are +relatively unusual in viewing property as an Area Meeting resource. John +thinks this is important.
+The staff are not here to run a business, but to be the face of Quakerism in +Edinburgh. The contrast with the situation when we were in Stafford Street is +instructive in this regard.
+The figures in the sheet are summary numbers, simplified in various ways, +leaving out a number of much smaller numbers.
+Over the first 10 years, expenditures (under the heads listed here) +roughly balanced income.
+Expenditures are at the top, as insofar as there is a feeling that the +building is too expensive, these are the things which must be controlled.
+There has been a notable increase in the staff costs, this is down to a +number of things:
+The first two of these represent a professionalisation of tasks which formerly fell to +members, as amateurs.
+Other costs which have risen signicantly is the maintenance and repairs +-- recarpetting the Meeting Room, for instance, was 7,000GBP. This heading +covers a wide range of things (fridges as well as chairs), and just varies a lot.
+We cover the Council Tax on the staff flats, as they are required to live +in them.
+Lettings income in general has risen, but there has been a 10% gap in 2008.
+It has been since approx. 2003 that a real gap has opened up between +expenditure and income. Area Meeting has viewed it as their responsibility, +since this is an Area Meeting resource, to cover that gap from contributions +made by Friends to Quaker funds.
+Our annual donation income to the Area Meeting is running at around +70,000GBP. This depends in important part on a small number of very large +donations, which John would like to put into savings, but has been unable to do +so must. So 20,000 to 30,000 from this goes to bridging the gap. This in turn +has reduced the amount we have in the past, and that John feels we should, pass +on to BYM.
+What could we do about the situation? Appeals and legacies have been +used to cover the increased gaps caused by major items, i.e. the foyer/ramp/Bow +Room and the stonework.
+John is not sure we can expect to do this in the future: too many +appeals are counter-productive
+John's take on upcoming large expenses, if we are to go on using the +building as we are now: window repair/replacement; +toilets; kitchen and its equipment
+We are not using the building to its full capacity, but no clear route to +being sure to do so.
+If we thought we couldn't afford the major expenses, and/or the income +continued to drop:
+Eileen asks, what about the future for maintenance and repairs? John +says, well, hard -- sometimes things just jump out and surprise us -- for +instance, DDA regulation requiring a ramp causing the foyer refit. 30K is a +fair estimate, not including exceptional items.
+Laurie asked about a sinking fund? John said there is one -- we tried to +put aside a reserve each year in the early days of owning the building, and +that built up a large general fund, but latterly it has been run down from a +peak of perhaps 70,000 pounds to a current level of 30,000 pounds. This is +distinct from the capital fund, which grows from legacy, was used up to buy +Kelso meetinghouse, but since most have gone to cover capital costs (foyer, +stonework) so there is only about 15,000 in that fund today.
+AM's other major outgoings: donations to BYM, GM, NFPB: 30,000, but AM +would like that to be higher, it has not kept pace with inflation, and we're +not getting close to giving half our income to BYM, which was of old the +target; AM activities: conferences, Woodbrooke, etc: 8,000; Administration: +newsletters, advertising, fees: 12,000; local meetings pay their own letting +costs. It's the donations figure that has to bear the brunt of making the +books balance. This makes John unhappy, and probably a lot of AM Friends as well.
+Henry was worried that there was a clearcut possible plan to
+significantly reduce the gap by cutting back in some way which leaves us here,
John agreed, and said he didn't see how we could meet the needs of the +Meeting (both AM and CE LM) without staying here, and making the best of what +we've got.
+Madeleine asked how many people give regularly. John said that every +month there are 80 or 90 monthly standing orders, and 40 or so annual +donations. So quite a large proportion of our 240 or so members contribute. +Madeleine wondered about other ways to generate more income, similar to other charities.
+John mentioned that people say "It's so nice not to be in a place where +people keep asking us for money". We don't, in general, spend our time trying +to raise money.
+John confirmed to Laurie that our donation income includes the Gift Aid benefit.
+John answered Phil that the rents were reviewed and a phased-in raise +happened over the last year. Alison wondered if this had contributed to the +decline in rental income.
+John surveyed the staff allocation: The Buxtons and Tom Nisbet make up +1.7 FTEs; the part-time wardens are paid hourly, one of whom, Cathy McCurrough (sp?), +is on a .4 FTE contract, and the rest probably add up to around another 1 FTE. +So a total of about 3, which is as noted a considerable increase.
+Laurie asked about Festival income: 'excludes charity grants'? Festival +Committee manages a turnover of about 30,000. They recommend that some of the +profit each year be allocated to one or more charities, that is what is meant.
+Carry forward by email, Henry will coordinate
+Our next meeting will be at 7:30 p.m. on Tuesday 17th February at 11 +Douglas Crescent.
+