Disaffiliation Update January 12, 2020 Eric Hilton - Chair Gail Aderhold Lee Penry Sue Fitzgerald Bo Sink Lee Koontz
Agenda ❑ Background / Summary ❑ Common questions that have been proposed ❑ Proposed “Separation Protocol” in the media Jan 3, 2020 ▪ Questions? ❑ Proposed organizational structure for Mt. Pleasant ▪ Questions? ❑ Voting procedures January 19, 2020 ▪ Questions?
Background / Summary • In light of the United Methodist Church’s failure to retain the Scriptures as the authority over man’s beliefs and actions, Mt. Pleasant has petitioned the denomination to disaffiliate from them under paragraph 2552 of the Book of Discipline . • Traditional Plan was upheld at the 2019 General Conference, however accountability for un-biblical teaching and behavior was not put in place for Bishops who refuse to honor God’s word and the Discipline that they profess to uphold. • In light of this un-biblical leadership and lack of accountability for UMC leaders, Mt. Pleasant has requested to leave the denomination and become an Independent church .
Common Questions
Common Questions How much will it cost to disaffiliate? • Two years of apportionments: *$23,812 annually or $47,624 total (lump sum payment) • Pension liability $145,736 (lump sum payment) • Total Estimate: $200,000 - $250,000 * includes apportionments, pension liability, legal fees, property transfers, etc. • Mt. Pleasant has no other debts to the Conference
Common Questions Continued What will happen to our current Family Life Center loan? • Mt. Pleasant will have to refinance the existing loan • Current lender will provide a grace period after disaffiliating to secure refinancing • Finance committee met and are currently working toward steps of refinancing
Common Questions Continued Will Mt. Pleasant keep its property? • Yes, the Disaffiliation process allows MTP to retain sole ownership of all property and financial assets Cemetery? • The cemetery is managed by a separate legal entity • The Memorial Association is solely responsible for the cemetery and it is not involved in our disaffiliation Parsonage? • MTP will retain ownership of the parsonage and will continue to allow Pastor Chris and his family to live there. • Our attorney advised us to put a lease agreement in place to replace the legal lease contained in the UMC Discipline
Common Questions Continued What happens to Pastor Chris and his family upon disaffiliation? • Pastor Chris will remain pastor at MTP as long as he and the church agree that his ministry is fruitful and this is his calling • Chris’s retirement plan that is currently in place with the UMC will remain his • MTP will need to provide a health insurance policy to replace his current plan through the UMC • Chris and his family will continue living in the parsonage under a new lease agreement
Common Questions Continued What is the timeline for disaffiliation? ▪ January 19 th vote to petition Annual Conference to allow us to leave ▪ Petition Annual Conference to disaffiliate due by April 1 ▪ MTP submits application to the NC Secretary of State to form a new 501(c)3 non-profit religious organization. ✔ Approval period can take 3 - 6 months ▪ Discuss and approve the new organizational structure, and create an interim leadership group ▪ Loan refinance will proceed when the new legal entity is in existence ▪ June 2020 – Annual Conference meets and grants petition. Conference Trustees issue Disaffiliation Agreement and establish disaffiliation date
Disaffiliation Timeline …Continued ▪ Late summer 2020, MTP fulfills terms of Disaffiliation Agreement ▪ The following must occur before Conference will finalize disaffiliation: ✔ Loan refinance, deed and property transfers complete ✔ All apportionment and pension obligation payments made End of year 2020 Mt. Pleasant would be independent as we understand the process today
Questions
New Separation Protocol
New Separation Protocol What is the Separation Protocol? ▪ A mediated proposal offering a separation of Traditional and Liberal groups in the UMC to be presented at the General Conference (05/2020) ▪ This is only a Framework for a PROPOSAL , it is nothing more. o One of many proposals splitting the UMC to be presented o Others are Indianapolis Plan, UMC Regional Conference, New Expressions Worldwide, UMC Next Plan; which are already fully developed ▪ The Protocol will allow “Traditionalist” churches to leave and join the new Wesleyan Covenant Association (WCA), and retain their property ▪ Provision is made to grant $2 million for the formation of “other” Methodists denominations ▪ Liberal churches would remain in the UMC and have promised to repeal the “Traditional Plan” that was passed in 2019 ▪ UMC will pay $25 million to the WCA to start the new conservative branch of the UMC
Separation Protocol Poorly communicated elements from the media: ▪ You can leave and keep your property free and clear: o Partially true: the trust clause is released if you join the WCA or another Methodist denomination. But if you ever leave in the future then the liberal UMC can put a lien on your property for pension funds ▪ This is a settlement: o No this is a proposal: it is only representing what is going to be proposed at General Conference. The Judicial Council hasn’t evaluated it and ruled that it’s legal ▪ All of the UMC leaders agree with this, Traditional and Liberal o Not really: only 16 people were involved in the mediation. No African UMC leaders were present, which represent the largest block of the UMC. Only 2 WCA representatives were in the mediation
Separation Protocol Several unanswered questions and unknowns ✔ There is no guarantee it will pass at General Conference ✔ Unclear how the two branches of the Methodist church will relate to each other, especially related to pension costs. The pension liability of each Annual Conference moves with that conference wherever they go. ✔ Unclear if or how money will flow between the two organizations ✔ No Book of Discipline approved by the WCA released to review ✔ Do not know what apportionments would be required with the new group ✔ No details presented in the proposal specific to the separation, and the devil is always in the details Based on the type of delegates elected to General Conference, our Annual Conference will not carry a 57% majority vote to leave
Separation Protocol MTP would have to start this process over if we wait ▪ Follow the process as it unfolds over the next year, final votes not until July 2021 ▪ Evaluate the WCA structure ▪ Find an annual conference ▪ Work to decide all affiliation related changes ▪ May still have to refinance loan ▪ MTP Votes to leave ▪ Entire process would take minimum of 2 up to 4 years
Legal Advisors Mt. Pleasant has retained the services of Dalton & Tomich PLC ▪ “Dan Dalton has developed a national reputation… representing clients in the areas of land use and zoning litigation with a special focus on religious denominational splits and property disputes, representing religious institutions throughout the country in cases related to [religious land use], as well as local churches seeking to separate from their mainline denominations while retaining their property using denominational trust clauses.” Zana Tomich Dan Dalton Attorney recommendation after reading the Protocol: o There are too many unknowns at this point o Stay the path, most of his clients are also o The disaffiliation settlement being offered to us by the UMC is more than fair from his experience
Questions
Proposed Organizational Structure
New Organizational Structure If we leave the United Methodist Church, will Mt. Pleasant be independent? ✔ Yes, for the time being the leadership believes it best take advantage of the existing Disaffiliation Process and wait until the changes in the Methodist structure settle before considering any affiliation with another group ✔ This starts with our statement of beliefs: o The Authority of Scripture o Obedient Surrender ✔ A new structure must be based on the Biblical offices of leadership and the requirements of North Carolina corporations
Organizational Questions First and foremost MTP must organize in a way that does several things: ✔ Honor Biblical mandates for spiritual leadership ✔ Allow our church to grow and get people involved in our ministries ✔ Provide accountability for leaders ✔ Provide a balance of authority to keep any one person or small minority from controlling the church as a whole ✔ Create a structure that can survive for decades to come after we pass away
Organizational Questions Goals ▪ Minimize change while aligning better with Biblical instruction ▪ Incorporate ideas of other successful independent churches ▪ MTP must abide by the laws of North Carolina incorporation ✔ The Administrative Council is the legal entity fulfilling this role ▪ Create more accountability of leaders to the church ▪ Request more congregational input on selection of leaders
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