Resolution A: Canons 18.03 & 18.04 Assessment Appeals

Resolution Text:

Resolved, that Canon XVIII, Section 18.03 of the Canons of the Diocese of California be amended to state as follows: 

(remove strikethrough bold text, add italic bold text) 

Section 18.03 Appeal of Assessment

(a) By March 31 July 15 of each year, the Chief Financial Officer or designee shall send to the vestry of each parish and to the Bishop’s Committee of each organized mission a statement of its assessment for the forthcoming year, and each. Each vestry and Bishop’s committee shall, within 60 days following such close,  return to the office of the Chief Financial Officer its written commitment, including the commitment to pay monthly, quarterly, or semi-annually, for payment of the amount assessed or a notice of appeal of the amount of the assessment no later than 30 days after the close of diocesan convention of the same year.

(b) Any appeal of an assessment shall be referred to the Assessment Appeals Committee, except clerical or computational errors, which may be corrected by the Chief Financial Officer.

(b) (c) The Chief Financial Officer shall report to Executive Council at its June January meeting all notices of appeal approved clerical or computational appeals and the amounts involved, together with the recommendation of the Finance Committee for any adjustments in the total budget required by reason of the pendency of such appeals.

(c) (d) With the concurrence of the Bishop, Executive Council may adjust the budget in such manner as it deems proper.

Further resolved, that Canon XVIII, Sec. 18.04 of the Canons of the Diocese of California be amended to state as follows:

Sec. 18.04. Committee on Appeals. Assessment Appeals.

(a) Any appeal of an assessment shall be referred to the Committee on Appeals, except clerical or computational errors, which may be corrected by the Treasurer’s office. All assessment appeals not due to clerical or computational errors will be submitted to the Assessment Appeals Committee.

(b) Promptly following each Annual Convention, the Committee on Appeals shall be established as follows: a Chair appointed by the Bishop and confirmed by the Executive Council; one person appointed by the Chair of Executive Council; one person appointed by the Finance Committee; and six persons appointed by the Bishop and confirmed by Executive Council, two of whom shall be members of parishes or organized missions whose total operating income for the prior year was less than the average total operating income of all parishes on which the assessment was based, and two of whom shall be members of parishes or organized missions whose total operating income for the prior year was equal to or greater than the average total operating income of all parishes on which the assessment was based. At least three of such six shall be lay persons. The Assessment Appeals Committee is a committee of the Executive Council. The Chair is appointed by the Bishop before the January meeting of the Executive Council each year. Additional members are confirmed by the Executive Council annually. The Committee must include at least one member of the Finance Committee and at least one member of the Executive Council. Including the chair, the Committee must include at least seven members, at least three of whom must be lay persons, and represent the financial diversity of the diocese.  

(b)(c) A parish or organized mission, having given notice of appeal within the period specified in Section 18.03, shall perfect such appeal by providing the Chair of the Committee on Appeals, not later than June 1 of the year considered, with a written statement of grounds for appeal and copies of its current budget and financial statements for the two previous years. The Committee on Appeals is not empowered to consider an appeal not noticed in accordance with Section 18.03 and not perfected in accordance with this subsection. A parish or organized mission seeking an assessment appeal from the Assessment Appeals Committee must apply by May 31 of the year considered using a form approved by the Committee, which will include but is not limited to a written statement of grounds for appeal, copies of its current budget and financial statements for the two previous years and documentation of the vestry or bishop’s committee vote to seek an appeal. 

(d) Assessment relief is intended to be used for extraordinary, nonrecurring circumstances and cannot be granted for more than three consecutive years. Parishes and organized missions applying for assessment relief through the appeals process must not be in arrears to the diocese. 

(c)(e) The Committee on Appeals shall may take such action as it deems appropriate to investigate, hear and determine each appeal, including but not limited to informal conferences by one or more Committee members with an officer or officers, or the vestry or Bishop’s committee of the parish or organized mission appealing, or a formal hearing before the Committee. After such consideration as the Committee on Appeals deems appropriate, with or without a formal hearing, the committee Committee may by vote of a majority of its members dismiss the appeal or recommend to the Executive Council an adjustment of the assessment in part or in full.

(d)(f) The Executive Council may accept, reject, or modify the recommendation of the Assessment Appeals Committee on Appeals, or it may return the matter to the said Committee for further consideration. The action of the Executive Council under this subsection shall be subject to the concurrence of the Bishop.

Further resolved, that Canon XVIII, Section 18.05 of the Canons of the Diocese of California be repealed as follows:

Sec. 18.05. Monthly Payments.

(a) Each parish and mission of the Diocese shall pay to the Chief Financial Officer, each month, one-twelfth of its assessment for the Diocesan Operating Fund. The payments between the beginning of the fiscal year and the publishing of the assessments for that year shall be on the basis of the assessment for the preceding year, and adjustments shall be made the following month.

(b) Each month, the Chief Financial Officer shall provide the treasurer of each parish and mission with a statement of the balance then due on, and each parish and mission shall pay to the Chief Financial Officer one-twelfth of, their respective assessments. The Chief Financial Officer shall provide a final statement to each parish and mission not later than the tenth day of-December and shall indicate the balance due as of December 31.

Proponent’s Explanation

The purposes of this canon amendment are: (1) to streamline and enhance transparency in assessment charges and expectations; (2) to align canons with practices that better reflect the timing of congregational budgeting and parochial reports in financial planning; (3) to clarify the process for assessment appeals; and (4) to ensure both broad representation and flexibility in determining members of the Assessment Appeals Committee. 

Canon 18.03:

The changes in 18.03 (a) are meant to address logistical realities and reaffirm assessments as a two-way partnership between congregations and the Diocesan structure. Currently, the canons are not being fulfilled as written due to factors largely outside of the control of diocesan staff, such as parochial report deadlines and BLS consumer price index measurements. Adjusting the date will allow more time for the work to be done accurately. Furthermore, changing the process to invite congregations to respond will ensure everyone is aware of expectations while also signaling payment intentions to aid in budget planning.

The addition of 18.03 (b) clarifies the options for an assessment appeal. This clarification is carried over into 18.03 (c). In making this clarification, appeals are clearly separated into those related to mathematical errors, which can happen is a shorter time frame, from those that require a more in-depth appeal process related to other circumstances.

Canon 18.04:

This canon is revised to specify the work of the Assessment Appeals Committee, which is distinct from the work of the diocesan CFO.

Section (a) clarifies eligibility for appeal in broad terms.

Section (b) is focused solely on the composition of the Assessment Appeals Committee. The current construct is complicated and confusing. This suggested revision will keep broad representation while allowing more space for expertise as needed on the Committee. This section also clarifies reporting/accountability structure.

Section (c) offers the previous section (b) in plainer form.

Section (d) defines eligibility to apply for assessment relief by noting that congregations, mission or parish, cannot receive relief more than three years in a row, and they must be caught up on their diocesan financial commitments. This articulation is in line with the current practice of the process. Further, it reinforces the intention for relief to be temporary and not a permanent solution to a financial shortfall. Those churches who need extra support for over three years in a row need additional support in other ways. Finally, section c specifies the possible decisions available to the appeals committee.

Sections (e) and (f) reflect the consistency of the name of the committee while also being re-ordered due to the addition of new sections.

Canon 18.05:

This canon is being stricken completely. The process outlined is both cumbersome and unnecessarily detailed for diocesan canons. Furthermore, it limits congregations to a single payment plan. By striking this entire section and adding the expectation for payment schedules in 18.03 (a), we are preserving the part that is most necessary for the work of both congregations and the diocesan offices.

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