GS 1986 art 154

GS 1986 ARTICLE 154

Theological College – Finances and Property (See Art. 152)

Committee 3 presents:


– Agenda, VIII, A, 2 Board of Governors.

  • a.  Report to General Synod of 1986.
  • b.  Letter from the Executive Committee of the Board.
  • c. Supplementary Report from the Board of Governors.
  • d. Letter from the Board of Governors, April 4, 1986.
  • A, 3 Letter from the Church at Houston.


  • 1.     Property and Finance Committee Activities Generally
    • a.     With gratitude the Finance and Property Committee reports that they did their work in brotherly harmony.
    • b.     The committee met fourteen times. Much of the work was caused by the purchase of the new premises for the college, and planning the additions and renovations.
  • 2.     Physical Plant
    • a.     The property on Queen Street was sold for $165,000.00 cash.
    • Prior to this, the building was offered for sale to the Board of the Teacher’s College. It was not suitable for their purpose. Construction of the addition and renovations could be completed at the cost of $193,705.37. Apprecia­tion is expressed to the contractor, M.G. Construction Ltd., employees and subcontractors, and to the architect, br. L. Ladder, for the splendid cooperation.
    • The move to the new premises was arranged with students and other members of the Hamilton congregation, which meant a significant saving.
    • b.     Student accommodation is not available in the new college building.
    • c.     The caretaking of the building on Queen Street was carried out by br. G. Meyer at $180.00 per month. For the new premises a complete review of the janitorial services was undertaken.
    • d.     A building-fund drive was held in the Canadian and American Reformed Churches. Special mention is made of the Australian sister churches who contributed $6,335.45. From the Women’s Saving Action $125,000.00 was received for the new building. The total results of the College Building-Fund Drive are $81,171.88.
    • The committee expresses its sincere gratitude for this generosity.
  • 3.     Salaries
    • a.     As a result of a salary study among Canadian Reformed ministers, it was decided to increase the salaries of the professors effective January 1, 1985, to the amount of $34,000.00. A further increase was deemed necessary with the result that the salaries as of January 1, 1986 are $35,258.00, plus a hous­ing assistance allowance.
    • b.     The Executive Committee of the Board of Governors presents this synod with further information about the procedures taken by the Finance and Prop­erty Committee to arrive at this increase in salaries and the committee states to be aware of the responsibilities toward a fair remuneration of those work­ing at the college, but to be equally aware of a similar concern for the church­es and their members who must maintain the college financially.
    • c.     Mrs. M. K. Marren will be employed during the summer months to assist in organizing the library and in the computerization of the same.
    • d.     The Finance and Property Committee has been requested by the Board of Governors to review the salary schedule for professors for 1986.
  • 4.     Financial
    • a.     The committee is grateful for the good cooperation and the prompt payment from almost all the churches. Although there is a considerable amount of arrears, it is noted that this is mainly due to the difficulties of one of the churches to meet financial obligations.
    • b.    With regard to the financing of the new facilities it is expected by the com­mittee that an amount of $60,000.00 will remain outstanding. This will be paid over a period of fifteen years.
    • c.     The Church at Houston submits to this synod the suggestion to pay off this amount ($60,000.00) sooner through an increase in the college contribu­tions for a few years, since otherwise interest has to be paid for some fif­teen years.
    • d.    Audited financial statements for the year ending May 31, 1984, and May 31, 1985, are sent to this synod as appendices to the reports for the years 1984 and 1985. The board recommends that synod considers the audited financial statements and the report of the auditor for the previous fiscal periods, and to appoint Robinson, Lott & Brahman, Chartered Accountants, as auditors until the next synod.
  • 5.    Budget
    • The 1983/1984 budget needed an increase from $31.00 to $33.00 per communi­cant member. The budget 1984/1985 contained an increase in expenditures, since the College now employs four full-time professors. The contributions in­ creased by $6.00 per communicant member effective January 1, 1985. For 1986 the contributions could stay the same, namely $39.00 per communicant member.
    • However, the Finance and Property Committee did inform the board that it is only possible to obtain a balanced budget with an increase in the assessment of 10% to $43.00 per communicant member effective January 1, 1987. The com­mittee feels that this is the maximum increase that can be permitted at this time.


  • 1.    Although the suggestion of the Church at Houston has some merit because it would save a considerable amount to be paid in interest, the Finance and Prop­erty Committee feels that an additional increase of the contributions by the church­es cannot be permitted at this time.
  • 2.    Seeing that the present salaries of the professors are $35,258.00 which results in a considerable amount of income tax, and since the professors do not enjoy other benefits, the request of the Board of Governors to the Finance and Prop­erty Committee to review the salary schedule for professors for 1986 is justified.
  • 3.    Although the Finance and Property Committee is aware of its responsibilities toward a fair remuneration of those working at the college, and is also aware of a concern for the churches who must maintain the college financially, these concerns may not be allowed to cause a situation in which professors are unable to do their work without undue worries.
  • 4.    In addition, it should be remembered that professors at the Theological College do not have benefits equal to those enjoyed by ministers.
  • 5.    It is fair that the Board of Governors, via its Finance and Property Committee, looks for ways and means to compensate for this financial disadvantage the pro­fessors at the college have by:
    • a.    fixing the salaries of the professors in such a manner that they are the equivalent of an average salary of a minister in the Hamilton/Burlington area with its living conditions, to which should be added an amount of cash equal to the cash consideration for the following compensations and benefits en­ joyed by such a minister:
      • 50% of the average car-allowance;
      • ii    the equivalent of benefits for dwelling and utilities.
  • b.     adjusting (grossing up) the addition of these benefits (i and ii above) assuming a marginal tax rate of 35% for the taxation increase resulting from those amounts becoming taxable income;
  • c.     adjusting the salaries annually, as a rule on January 1st by applying the Canadian Consumer Priced Index Change for the last twelve-month period ending October 31st.
  • d.     establishing the average benefits and average minister’s salaries in the Hamilton/Burlington area. The Finance and Property Committee shall, from time to time, but at least once per two years, survey the stipend and benefits paid to ministers in the Hamilton/Burlington area.


Synod decide:

  • 1.     To express gratitude to the churches for their faithful and regular support of the Theological College and for their special contributions to the College’s Building Fund.
  • 2.     To take note of the audited financial statements and the report of the auditors for the years ending May 31, 1984, and May 31, 1985; to add these reports and statements as appendices to the Acts of Synod; and to relieve the treasurer of the Board of Governors of all responsibilities for the years indicated.
  • 3.     To appoint Robinson, Lott & Brohmann, Chartered Accountants, as auditors until the next General Synod.
  • 4.     To direct the Board of Governors to fix salaries payable to all professors in ac­cordance with the stipulations mentioned in Consideration 5, a, b, c, and d, ef­fective January 1, 1987, and to direct the Board of Governors that these stipula­tions are to replace the housing assistance allowance policy as adopted by the Board of Governors and approved by this 1986 General Synod, Acts, Art. 10, also effective January 1, 1987.
  • 5.     To express thankfulness to the Lord that the college was able to function under His blessing with the necessary funds from the churches.

The recommendations 1, 2, 3, and 5 are also ADOPTED.