2015 Yearbook

Ken Stenman

Don Wagner

Jack Niemi

Kevin Murphy

2

From our Senior Leader Dear Friends and Mission Partners of Saint Matthew, 2015, the 50th Anniversary year of “St. Matthew Lutheran Church of Walnut Creek, California” (our legal name), will be remembered for celebration, thanksgiving, and significant challenges. First, the celebration(s). It was so wonderful to have two of our former senior pastors return to preach and share their current lives and ministries with us! I remember thinking at our 40th Anniversary celebration, when the four pastors and spouses took a picture together, “I wonder if we’ll all be here for the fiftieth?” Our beloved brother Don Wagner didn’t make it, and so we honored him as best we could. But to have Pastors Ken and Jack along with Priscilla and Ruth meant so much to me and us. I knew there would be some risk, with some questioning why we were stalling forward momentum by taking five full months to celebrate our 50th. It didn’t work for everyone, but I am thankful we slowed down and took the time. That naturally segues into thanksgiving. Remembering our history, hearing the shaping stories of our church family, acknowledging God’s enduring Presence and guidance through all of these years, becoming aware that every member, every child, every council member, and every pastor have made a contribution to who Saint Matthew is today, and shapes us for the future. For each moment of this journey we can stop and say, “Thank you, Lord.” Through dark days, through challenging days, and through glorious days, God has always been faithful to Saint Matthew and shown us incredible favor. I’m so thankful to have shared this year with Mike McCoy, the Points of Light pastors, Pastor Sara and Jason, Pastor Jeff and Pam, Pastor Efrem Smith, and Pastor Mick and Trish Woodhead. I’m thankful for Outflow Sunday (though we would never do it again on Palm Sunday), for the gifts we shared with so many ministries, and for the impact of Advent Conspiracy. Thank you everyone who was so generous during this season of celebration and thanksgiving. Our most significant challenges were turning over eleven staff positions in eighteen months. After ten years of incredible stability, suddenly we were faced with so much change. It was more than some people could bear. Frankly, there were many days when it was too much for me to bear also. Thank you, Lord, for Travis Kingma, Nancy Pierce, Dee King, Melinda Johnson, Kim Machek, and Ethan Purkey. Thank you for the gifts they shared and their heart for you. Thank you, people of Saint Matthew, who have persevered and continued to pray us through these difficult times of grief, transition, and fear. I pray the shaking and pruning we have gone through in this past year subsides and we have a new season of vision, hope and growth (depth and breadth). Thank you to our staff and council who have been most impacted in this season of challenge. We covet your prayers, and the grace you give us through challenging times. In Jesus’ love and joy, Pastor Kevin

3

JANUARY

Church-wide Study “Slow Church: Cultivating Community

in the Patient Way of Jesus”

Despite the fact that “Slow Church” was one of the most unpopular church-wide studies we’ve ever undertaken, it did force us into some unique conversations about the relationship between today’s church and modern culture. The authors challenged us with ideas of how the practice of our faith could be more counter-cultural, and we sometimes disagreed with them and each other about the implications for Saint Matthew. To put it mildly, patience is hardly a virtue in the current American culture, and as much as many of us wish we could slow down, it hasn’t proven realistic. Going from “mission-driven” to “slow church” was a whiplash experience for some folks.

Jenna Kim Becomes Intern Pastor

Jenna Kim joined our staff team for a nine month internship. As a third year student at Fuller Seminary in Northern California, Jenna and Pastor Kevin met in two homiletics courses which he taught, and he invited Jenna to apply and spend 2015 with us. Jenna has a huge heart for people who are under-resourced and for world missions. Her personal style of preaching relates to young and old alike, and we look forward to seeing how God is going to use our sister Jenna in the future.

Donation of Stained Glass Window

The Taylor family of Danville contacted Saint Matthew about the donation of a late nineteenth century stained glass window from Belgium which had been in their family for over 45 years, and they now wanted it to go to a church. They Googled “Saint Matthew” and got ahold of us, and we had the piece transported, repaired and placed in the Gardenside Room. The window portrays Judas’ betrayal of Jesus, a dramatic scene from the Gospel of Matthew (26:46-47).

4

FEBRUARY

Travis Kingma Resigns

After being on staff for only five months, Travis Kingma stepped down as Worship Arts Team Leader at Saint Matthew, and he and his wife, Samantha, moved to Phoenix, Arizona, where she is continuing to pursue her certification in Marriage and Family Counseling.

Retirement of Nancy Pierce

After serving on the paid staff of Saint Matthew for over 16 years, Nancy Pierce retired to have more time with family and friends. Under Nancy’s leadership, Saint Matthew grew in so many ways it’s hard to count – small group ministry, Mission Partnership, spiritual gifts assessment, Alpha, Financial Peace University, women’s and men’s ministries, Crosswalk Weekends, Angel Tree, and Pack-to-the-Future, just to name a few.

Nancy and her husband Dave were both critical connectors and the “glue” of a variety of ministries and missional opportunities over the years.

Nancy had always teased about preaching on a Sunday morning, and she finished her staff ministry at Saint Matthew with a morning message where she shared her heart and vision for what connecting looks like at Saint Matthew.

Thank you Nancy (and Dave) for your many years of faithful service at Saint Matthew.

5

IGNITE Snow Trip

The drought in California meant that the Middle School Snow Trip had no snow (see the campfire picture). But the IGNITE Ministry continues to draw young people from within Saint Matthew and the wider community, and under the direction of Melinda Johnson, has become much more intentional about teaching Middle School students that they are capable of Christian leadership.

FORGE Snow Trip

Similar to the IGNITE Snow Trip, the FORGE Snow Trip was a dry weekend. The senior high ministry is slowly rebuilding with teens who want to both examine and practice their faith, and create genuine community. Alex Hardt has focused on relationship-building from his beginning at Saint Matthew, and the three different groups (Monday, Tuesday and Thursday) are creating unique missional targets for high school students.

Daniel Boyle

Bill Stark

Vanessa Lamoureux

Melinda Johnson

Diana Corkran

Ryan Sigler

6

MARCH Pastor Swap—Pastor Shawn Robinson

For the ninth year in a row, the Valley Churches’ (aka Church Without Shoes) pastors have traded pulpits on the First Sunday in Lent. Pastor Shawn Robinson, founding pastor and senior leader of Clayton Community Church (Presbyterian), shared the Good News with the Saint Matthew Community. Pastor Andy Smith preached that morning at Hope Center Covenant Church in Pleasant Hill for our part of the pastor swap Sunday.

Mt. Hermon Retreat for 4th-6th graders

Over the past few years, SPARK Leaders Angie Kavert and Ethan Purkey, have been incorporating intentional discipleship into the Children Ministry program. For several years they have been taking our 4th and 5th graders to an annual retreat at Mt. Hermon aimed specifically at this age group, taking them seriously as young disciples. It’s the first over-night away from home and family for many of these students, and it’s always a memorable weekend.

New Worship Arts Team Leader TJ Burke

Much to our (and his own) surprise, when Pastor Kevin talked with TJ Burke about an interim role as worship leader at Saint Matthew, TJ indicated that he would be open to the permanent full-time position of Worship Arts Team Leader at Saint Matthew. Following a 30 and 60-day review process,

TJ became the new face of worship at Saint Matthew. His warm and generous spirit, along with his natural gifts of connecting and affirming talent, made him a quick fit. TJ, Sue and his six kids have been a part of Saint Matthew for almost ten years, and this internal hire has been a blessing for them and us!

It’s hard to describe how steep the learning curve is for this type of ministry, but TJ loves a challenge, and added a new children’s choir, several new musicians into the band, and has worked hard to make musician and choral director Geoff Carter’s gifts a more integrated part of our Worship Arts Team.

7

Outflow Week &

Celebration Sunday

For only the second time, Saint Matthew exchanged Sunday morning worship for a time of service and witness in the community. The projects and opportunities were offered throughout the week leading up to and included Palm Sunday morning. Taking Palm Sunday off was a bit too much of a sacrifice for some, but the evening celebration where we came together, worshipped and shared our experiences was one of the worship highlights of

2015, in a year that contained many! Projects included Habitat for Humanity, Loaves and Fishes, YEAH in Berkeley, picking up trash at Ygnacio Valley High School, singing in care facilities, feeding the homeless in Walnut Creek, Concord and Berkeley, prayer walks and several other events that folks planned on their own.

8

APRIL

Easter Morning Worship and Family Celebration

Pastor Andy Smith brought a message of resurrection and hope on Easter morning at Saint Matthew. Easter begins our five-month celebration of Saint Matthew’s 50th Anniversary because Saint Matthew’s first worship

service was on Easter Sunday, 1965.

We served an Easter Brunch and had an egg hunt for younger children following our second worship service. This was made possible by having expanded parking at Walnut Acres Elementary School, who has opened their school yard for the past sixteen years!

Maundy Thursday

The Valley Churches gathered at Walnut Creek Presbyterian Church for the annual Maundy Thursday Worship Service. Over 900 people came together to sing, pray, celebrate the Lord’s Supper, and rejoice in the Christian unity we share in the Ygnacio Valley.

New Connecting Team Leader Kim Machek

After working as Nancy Pierce’s assistant, Kim Machek joined our full-time staff to become Connecting Team Ministry Leader. Kim “hit the ground running” with a new Welcome Center installation, new communications tools and flyers, and a rebranding of the process by which new Mission Partners are identified and assimilated into the Saint Matthew community. Kim also helps people to connect in areas of service and mission with enthusiasm, a warm heart, and a desire to see everyone included and connected, which are infectious and welcoming to many new people.

50th Anniversary Capital Campaign

The Saint Matthew Church Council established a 50th Anniversary Capital Campaign for $150,000. The funds are designated to renovate the kitchen (along with $100,000 the congregation voted in December 2014 to be taken from the Building Fund toward the $250,000 kitchen renovation), give away $30,000 to Children’s Rescue Mission in Honduras, $20,000 to Young Life in Krasnodar, up to $50,000 to special gifts given away as part of our 50th Anniversary celebration, and other special building projects (paint, parking lot and landscaping plans). This is a short-term campaign from Easter Sunday through Saint Matthew Sunday in September.

9

Pastor Ken and Priscilla Stenman Return

Saint Matthew welcomed founding pastor, Ken Stenman, and his wife, Priscilla and their daughter, Megan for the first major Sunday celebration of Saint Matthew’s 50th Anniversary. A special dinner was held Friday evening in their honor, and over 25 people who were part of Saint Matthew during Pastor Ken’s tenure were able to join us, along with many people who simply wanted to come and meet him and hear the stories of Saint Matthew’s beginnings.

Saint Matthew had opposition from the three other Lutheran congregations that already existed. Our congregation was founded through the welcome invitation of the Jewish Synagogue to share the

facilities at Walnut Acres Elementary School (the district limited their usage to a single faith community, and B’Nai Tikvah approved Saint Matthew sharing the school), and it was the Episcopalian Church in Pleasant Hill that welcomed Pastor Stenman when he needed a place to preach.

The Stenman’s expressed their appreciation for being the first to kick-off this five-month celebration, and gave thanks to God for what Saint Matthew has become through these past five decades.

Melinda Johnson Farewell

Melinda’s husband, Ethan, accepted a new job with Starbucks Coffee in Seattle, so Melinda’s excellent tenure as the founding leader of Saint Matthew’s Middle School Ministry had to draw to a close. Under her leadership, Melinda recruited and trained an outstanding team of leaders (both adults and high school students) that saw an incredible growth in our IGNITE Ministry. Every year the fall would begin with about 40 students and grow to over 60-80 students in the spring, year-after-year.

The next chapter in the Johnson’s life includes Melinda finishing her Master’s degree in Counseling (begun with the encouragement and support of Saint Matthew), and beginning a family!

10

MAY

Celebrating the Ministry of Pastor Jack and Ruth Niemi

Pastor Jack Niemi was known as a “builder” and he proudly accepted that mantle as our third pastor and his wife, Ruth were celebrated with a supper and Sunday morning worship on the third weekend in May. This was Saint Matthew’s third major celebration of the 50th Anniversary of our church family.

Saint Matthew experienced a real growth spurt following the building of the new sanctuary. Pastor Jack told us of the visit and consultation of his friend, Lyle Schaller, probably the best known church consultant in the U. S. at that time (and the two-year wait to get on his calendar). Lyle Schaller’s advice was for the leadership and people of Saint Matthew to build a facility beyond their means and current membership, and they took up the challenge.

Saint Matthew presented a gift of $5000 to Hope Lutheran Church in Rossmoor, currently being served by Pastor Jack. Saint Matthew provided critical leadership in some difficult days at Hope Lutheran Church, and was part of their revitaliza-tion which allowed for Pastor Jack’s call to Rossmoor and their current vitality.

50th Anniversary - Celebrating the Ministry of

Rev. Dr. Don and Lois Wagner

Our second major 50th Anniversary Celebration was held at the beginning of May, when Pastor Kevin asked Dr. Dick Seibert to share about Saint Matthew’s second pastor, Rev. Dr. Don Wagner. Dick and Celia Seibert were both close personal friends of the

Wagner family, and Dick was the Council President when Pastor Don had a heart attack while serving as pastor.

Dick told a moving story of ministry/building decisions that were made against his and Pastor Don’s votes on Council, that proved to be correct. This led to the conclusion that a congregation like Saint Matthew has to trust the leading of the Holy Spirit through times of vision and transition.

The Wagner family expressed their appreciation of the honoring of their father by Saint Matthew.

Painting completed on most of our Buildings

In honor of our 50th Anniversary, the Shaw Teen Center, the church offices and conference room, the main Worship Center, Fellowship Hall, Stenman Center and the three crosses were all painted with a fresh coat of paint, in slightly bolder colors than the originals. The crosses were blasted (to remove rust), primed and painted with an actual copper paint ($750 a gallon!) that will slowly change patina over time.

11

JUNE

Administrative Staff

Shannon Perez joined the Saint Matthew staff team to support both Connecting Ministries, supervised by Kim Machek, and Worship Arts, supervised by TJ Burke. Shannon, her husband Joe and two daughters also became Mission Partners.

Yolanda Sanregret changed from supporting both Worship Arts & Teens to focus on the IGNITE and FORGE Ministries.

Their cheerful spirits and devoted work ethic are much appreciated in a hard-working office.

Major Kitchen Renovation Begins

Saint Matthew’s very tired kitchen saw the beginnings of a total renovation in June. Following conversations with all of the major users of the kitchen (SPARK mid-week, Camp MATT, Young at Heart, Children and Teen Ministries, Memorial Services, as well as three different caterers), the same architect and builder who did our bathroom renovations in 2014 drew up plans, and the City of Walnut Creek and its agencies (fire, water, and health) quickly approved them, and bids were accepted from three contractors. We were pleased when WCI (our 2014 builder) was able to match the low bid.

Demolition included removing the central dividing wall, the old swap cooler, dishwashing system, cabinetry, counter-tops, and the old fire suppression system. A new HVAC system was installed, along with a new electrical service, all new appliances (four stoves, two six burner cooktops and two microwaves, two ice-makers, two new refrigerators and a large freezer). All new dishes, glasses, serving dishes, pot and pans, and silverware are also part of the renovation.

The old flooring was removed and a high-quality epoxy floor is being installed. Most of the preparation and cooking surfaces are stainless steel (including two movable island/work tables), and manufactured stone counters are being added to the Fellowship Hall pass-through. The opening into the Stenman classrooms was sealed up as it hadn’t been used in several years. The new space will be highly functional, easy to clean, with a modern design. The entire project is expected to take 6-8 weeks.

50th Anniversary Strategic Partner – Church

Without Shoes

As part of Saint Matthew’s 50th Anniversary Celebration, we invited the first of our strategic partners, The Church Without Shoes (the Diablo Valley churches), who are led by Pastor Mike McCoy of the Hills Vineyard in Concord. Mike preached about Saint Matthew’s partnership with other Valley congregations.

Shannon Perez

Yolanda Sanregret

12

Graduate Sunday

On the same Sunday Pastor Mike McCoy preached, Saint Matthew also celebrated its graduates (high school, college and post-graduate studies). The Saint Matthew Foundation Scholarships were awarded to: Ariana Whitmarsh, Nicholas Carmichael, Dante Monaldo and Gus Tetzloff.

Saint Matthew Core Team Goes to Sheffield, England for Pilgrimage

St. Thomas Anglican/Baptist Church in Sheffield, England hosts an annual Pilgrimage Event each year in June, and five members of Saint Matthew’s Core Team: Pastor Kevin and Pastor Andy, Kathy Frattini (administrator), Angie Kavert (SPARK Children Ministry) and Alex Hardt (FORGE High

School Ministry) attended the four-day event and spent time in homes and visiting the church’s worship services and family activities on the weekend prior. The staff was able to spend time with individual staff members and receive coaching and consultations in their particular areas of ministry.

A generous donation from one family at Saint Matthew paid half the travel costs, and each staff person used their budgeted continuing education funds for the balance of the cost.

This trip has proven to be highly impactful for the staff’s vision and morale in a time of great transition.

Gwen Ross

Ariana Whitmarsh

Nicholas Carmichael

Dante Monaldo

Gus Tetzloff

Andy Smith Angie Kavert

Kevin Murphy, Alex Hardt Kathy Frattini

13

Summer Ministry to

Teens Unites

IGNITE and FORGE Alex Hardt, our High School Team Leader welcomed the middle school students to the high school summer program while a search is underway for a new Middle School Leader. Their first event was a Shaving Cream Steal the Bacon game. As you can see in the picture, it was a fun and messy time!

50th Anniversary Strategic Partner – Points of Light, Oakland

Our second strategic partner celebration came with the pastors from Points of Light and Mighty Blaze from Oakland who testified about their ministry and the Good News they share on the streets, in homes and at the School of Urban Missions in Oakland.

Saint Matthew has been partnering with Points of Light for seven years, and we especially connect in times of special outreach opportunities, particularly around the holidays.

The dedication of these pastors is inspiring and this was a morning filled with joy. Saint Matthew presented a gift of $5000.00 to the Points of Light/Mighty Blaze Ministries as part of our 50 t h A n n i v e r s a r y Thankoffering.

Burnett Paul Erwin Garcia Jr.

Hosanna Motu Roheem

Robinson

Pastor Brian

Webster

14

50th Anniversary Celebration – Pastor Sara

Wolbrecht and Jason Bendickson

Pastor Sara Wolbrecht took a call to Kirkland, WA in 2014 at the end of her maternity leave, and from that time to this we planned for her and her husband, Jason Bendickson, to come back to Saint Matthew during our 50th celebration and for Sara to preach.

We had a great all-church family picnic with games for the kids that was very well attended on a warm July day.

Saint Matthew presented a gift of $5000.00 to The Salt House, the mission congregation Pastor Sara and Jason are developing to reach young families in Kirkland, WA, as part of our 50th Anniversary Thankoffering.

Saint Matthew Goes from 3 to 2 Sunday Morning

Worship Services Following several weeks of discussion with the people who attend the 8:15 a.m. worship service, the Church Council and members of our worship team, the decision was made to go to two Sunday morning worship services from three starting in July. The new worship times are 9:00 and 10:30 a.m., with SPARK and IGNITE Sunday morning taking place during the 9:00 a.m. worship service, and All-Church worship being kept on the last Sunday of the month.

This was not an easy decision, as we knew from research that we would lose about one-half of those who attend the smallest worship service, which in Saint Matthew’s case was about 55 people, and that is about the decrease in weekly worship attendance we’ve seen in the past year.

A Wednesday Night Worship, “cru-ci-ble,” will be added in September to provide an off-the-weekend time for people to come to worship. It will feature a time of worship, teaching and the celebration of Holy Communion, with a dinner available in advance.

JULY

Music Room

15

Honduras Mission Trip

For the sixth year in a row, Mike and Cheryl Sigler led a team to The Children’s Rescue Mission (CRM) in Tuepasenti, Honduras. Every trip is slightly different, but this mission included time with the pastors led by Pastor

Andy, a chance to see how the music mission is progressing, and home visits and working with the seniors and after-school programs.

There was also a second trip of the CRM Soccer Program led by Mike Kelley, with an emphasis on training the coaches and further developing the soccer programs in the villages.

Saint Matthew gave a special gift of $30,000 to CRM to complete the home mission property includ-ing the chapel for the main church, and the second and third stories where there are four more class-rooms and a large library/media room. This $30,000 came from our 50th Anniversary Thankoffering.

Family Camp

Tom and Joanna Aragon again hosted Saint Matthew’s Family Camp in a beautiful campground in the Sierra Foothills. Some stay in RV’s, others in cabins, some in motel rooms, and others actually camp (in tents on the ground). It is a great weekend of family, fun, food and worship. FORGE Teen Leader, Alex Hardt, shared the message on Sunday morning.

Summer Sunday Evening Worship

With a decrease in Sunday morning services, we added a Sunday night worship in July and featured our Healing Prayer Team as well as the testimonies of some folks who have received healing. Our faith was greatly encouraged as we realized that God has truly graced Saint Matthew with this unique ministry.

Laurie Carlson

Alyssa Aragon

Tom Aragon

Amanda Lewandowski

Caden & Alex Hardt

Beth Prange

Gail Penny Kevin Murphy TJ Burke Jeff

Lewandowski

Melinda Byrne

16

AUGUST

Camp MATT Has a Great Week

Over 90 young people plus adult and teen leaders created a week of faith-building and fun at Saint Matthew. This year’s theme was “The Lord’s Army” and the values of discipline, team work and Christian freedom were all part of the studies and projects. A final Friday evening program and celebration ended with a great thank you to Angie Kavert, Ethan Purkey, and Megan Machek who were the staff team for Camp MATT. Thanks, too, to the dozens of adults and teens who make this great week possible. About half of the young people who come to Camp MATT every year are not from Saint Matthew.

New IGNITE Leader Mike Basil Joins Staff

Following an extensive search process, Saint Matthew hired Mike Basil, who was serving nearby at San Ramon Valley Presbyterian Church. Mike’s youth group had done things with ours so he was known to us at Saint Matthew. He, along with other youth leaders, were encouraged to apply

by outgoing IGNITE Leader Melinda Johnson. Mike went through the full vetting process (we had over 20 candidates) and we are excited he’s now part of the Saint Matthew team.

Mike has over twelve years’ experience in children and teen ministry, and with his hiring, we now have weekly coordination between our SPARK, IGNITE and FORGE Ministries for the first time in Saint Matthew’s history – a huge step forward.

Welcome Mike, his wife Julianna (Vice Principal at Tabernacle School) and their two kids.

The Kitchen Renovation Is Complete

Saint Matthew’s kitchen renovation was completed at the end of July, only one week later than the original schedule (due to the wrong stone counters delivered for the serving area). Our final inspections from the City of Walnut Creek and County Health and Fire all went quickly with no needed fixes – thank you, Lord! We had a very short punch-list and the new stainless shelving came within the final delayed week.

With our kitchen renovation, all of the existing buildings of Saint Matthew are either new (8 years ago) or renovated in the last three years. We are very proud of

the exceptional stewardship we have shown to the facilities God has graced us with. The total project came in about $15,000 over budget, for a total cost of $265,000. Most of the overage was from unexpected permitting and additional fees to the City of Walnut Creek.

(L to R) Ethan Purkey, Alyssa Aragon, Danielle Kavert, Megan Machek and Angie Kavert

17

Hume Lake

For the first time, Saint Matthew was able to secure adequate spots on the same week for both Middle School and High School Hume. Though the camps are located on separated properties, the coordinated efforts of the IGNITE and FORGE ministries made for a great week at both camps.

Mike Basil, our newly hired IGNITE Team Leader, came to Middle School Hume, two weeks prior to his actual starting date.

Both Camps had a pirate’s theme (you can

see by the t-shirts) and they shared a multi-media, pyrotechnic opening of the two camps (another first for Hume).

18

50th Anniversary Celebration with Pastor Jeff and

Pam Thiemann Pastor Jeff Thiemann, President and CEO of Portico Financial Services (formerly the ELCA Pension Fund), returned to Saint Matthew with his wife, Pam, to help us continue celebrating our 50th Anniversary.

Jeff’s passion is “wellness” (for the church and its pastors and staff) and Jeff shared a message of the importance of the stewardship of our lives as disciples of Jesus.

We filled the Fellowship Hall for a luncheon for the Thiemanns after worship, and it was a great time of reminiscing and reconnecting.

19

SEPTEMBER

50th Anniversary Celebration with Rev. Efrem Smith

To help us continue our conversation about how we can become a more ethnically-diverse church family, we had invited Pastor Efrem Smith to preach at Saint Matthew in September, 2014. At that time he was the Superintendent of Northern California-Nevada for the Evangelical Covenant Church, and the day before he was to come and preach, a Covenant pastor in Sacramento died of a sudden heart-attack and Pastor Efrem needed to be with that congregation. In the month following, we scheduled Pastor Efrem to come in 2015 to help us celebrate our 50th Anniversary (he is booked at least a year out).

Pastor Efrem shared a message about the church in Antioch, and how it was a multi-ethnic church (Acts 13:1-3); that’s God’s design for the Body of Christ. Saint Matthew enthusiastically responded to Pastor Efrem’s message.

That same morning we invited some of our friends from Community Christian Church in Oakland to join us in worship at 10:30 a.m.

Saint Matthew presented a check for $5000.00 to World Impact, the Urban Church Planting Network that Rev. Efrem Smith is now the President of, and $3000.00 to Community Christian Church in Oakland, both gifts from the 50th Anniversary Thankoffering.

New Saint Matthew Website and

Eco-friendly Bulletin

Saint Matthew launched a new website at the same time we went to a smaller Sunday morning bulletin. The website has the latest news, up-coming events (with registration),

audio files of the sermons, and general information for those who are checking us out online.

More than 60% of those logging on to the website are people not connected to Saint Matthew that are church shopping online.

The Sunday morning bulletin is a supplement to our weekly online newsletter which contains information of upcoming events and information. There are hard copies of the online newsletter available every week in the Welcome Center.

cru-ci-ble Wednesday Evening

Worship

We launched Wednesday Night Worship with the new branding of “cru-ci-ble,” where faith can be tested and refined. The weekly mid-week worship (September through April) will include a time of worship, teaching and the celebration of Holy Communion.

Pastor Andy Smith began the fall series with six weeks looking at biblical justice. Pastor Kevin followed with a series, “Heaven, Hell and the Devil,” using C. S. Lewis’ The

Great Divorce and The Screwtape Letters . We concluded the year with mid-week Advent worship.

Worship is being led by Rev. Tom Pattituci, who has retired from being worship leader and associate pastor at Hope Center Covenant Church. There is a meal at 6:15 p.m. each week, shared with SPARK Wednesdays, and then cru-ci-ble worship from 7:00-8:15 p.m.

20

50th Anniversary Celebration – Pastor

Kevin Murphy

Our 50th Anniversary Celebration continued featuring our fourth and current Senior Pastor, Dr. Kevin Murphy. Pastor Andy interviewed Pastor Kevin about the beginning, challenges and future of Saint Matthew. Pastor Kevin’s first sermon, preached in blue jeans and a leather jacket, was recounted by the worship band, and the congregation presented Pastor Kevin with an updated leather jacket.

Saint Matthew Sunday – Concluding our 50th Anniversary –

Rev. Mick and Trish Woodhead At Saint Matthew’s 25th Anniversary, Pastor Don Wagner invited Rev. Earl Palmer, pastor at First Presbyterian Church in Berkeley to speak, as he was Pastor Don’s favorite preacher. Pastor Kevin continued that tradition by taking the opportunity of Saint Matthew’s 50th Anniversary to invite his friends Rev. Mick and Trish Woodhead from St. Thomas Anglican/Baptist Church in Sheffield, England to come and teach and speak.

Friday evening, Mick spoke at a dinner for some of the present and past leaders of Saint Matthew. Sunday morning, Mick preached a sermon about “Kindness” as the foremost of the Christian virtues in today’s modern world, and how Christians can show kindness as a means of mission in a culture that’s becoming more uncivil.

(L to R) Brian Matlock, Anne-Leith Matlock, Debi Murphy, TJ Burke and Adam Schuman

Jerry Hanson

Kathy Frattini

Kevin Murphy

21

OCTOBER 50th Anniversary Photo Directory

As part of our 50th Anniversary Celebration, a hardcover pictorial directory was assembled by Kim Machek and Shannon Perez. Photos from our 50 years of history and individual and family photos of those who are part of Saint Matthew in this 50th Anniversary year make this publication a real keepsake and resource for becoming familiar with names of people you may not yet have met. Copies are still available for sale at $10 each.

50th Anniversary Thankoffering and Capital Campaign Concludes

The Saint Matthew Community raised almost $130,000 in the 50th Anniversary Thankoffering. This was a very generous response to a five-month capital campaign. Some pledges have a balance and are still forthcoming.

The $20,000 shortfall in our capital campaign goal meant we were unable to make a $20,000 gift to Young Life in Krasnodar, and we will attempt to raise those funds in 2016.

Remaining Core Staff Travel to Sheffield

Following the Woodhead’s visit to Saint Matthew, it was decided that the remaining persons on the Core Team (who were unable to go in June) would spend a week with the staff and families of St. Thomas, Sheffield. Arrangements were made to stay in homes, and the Woodheads were so overwhelmed at Saint Matthew’s generosity to them, they covered almost all of our cost to return to England. The four team members who went were able to go for not-much-more than airfare.

With Kim Machek stepping out of the staff at the end of August, we had an opening which Tom Aragon, eighteen year A/V Team leader, filled. Pastor Kevin again led the trip, with Mike Basil, IGNITE Team Leader, TJ Burke, Worship Arts Team Leader and Tom Aragon.

Pastor Kevin said, “Of the eleven times I have been to Saint Tom’s, this was by far the most meaningful. To participate in the regular rhythms and staff meetings, worship, and consultations was gift beyond compare. Two families housed us and five families welcomed us into their homes for meals. Mick and Trish were beyond generous with their time and hospitality, and except for some small travel bumps, this pilgrimage was a complete gift of grace.”

Mike Basil

Tom Aragon

TJ Burke

Kevin Murphy

22

NOVEMBER

Couples Retreat in Aptos – Rev. Alex and Hanna Absalom

Over thirty couples went on the Saint Matthew Couples Retreat for a time to renew their relationships and have a weekend away. We had glorious weather on the first weekend of November, allowing for walks on the beach, hikes in the state parks, wine-tasting, and sitting by the pool with a book.

Pastor Alex and Hanna Absalom recently relocated to Long Beach, CA (Grace Church), came and helped us think through how we can encourage each other as couples and set goals for our lives that will make a lasting difference in the lives of our kids and grandkids.

Dave and Linda Foster from Vineyard Church accompanied us for the weekend to lead worship. Thanks to the Diffenderfers, the Morgans and the Murphys for planning this special Spirit-filled weekend.

Pilgrimage To Peace – Israel and Palestine

Pastor Andy hosted an evening discussing the challenges and opportunities for working for peace and justice in Israel and Palestine. Following a dessert/coffee time, Rev. Dr. Mae Elise Cannon, formerly the Executive Pastor at Hillside Covenant Church in Walnut Creek, and now living and working in Washington D.C., along with two long-time peace activists, an Israeli physician and a Palestinian farmer, shared their perspectives on the history of the Middle East Conflict. An engaging question and answer time followed, with a final appeal for us to pray for the peace of Jerusalem and the children of Abraham.

Sami Awad

Sahar Vardi

Mae Elise Cannon

Andy Smith

23

DECEMBER

Honoring Pastor Bill and Toshiko Barrett

Saint Matthew set aside the first Sunday in December to honor the life and ministry of Pastor Bill and Toshiko Barrett. A special scholarship in their honor was announced, created for young people who are considering preparing for the ministry. Almost $12,000 was raised for the Saint Matthew Foundation and a scholarship in the Barrett’s name.

Though Pastor Bill’s health has been declining, he and Toshiko are faithful in worship, and Pastor Bill is still serving communion with the help of friends, along with Toshiko.

Pastor Andy’s Call is Transitioned

At our 2015 Saint Matthew Annual Meeting, the congregation voted to change Pastor Andy Smith’s call from Executive Pastor to Pastor of Discipleship and Mission. Following the retirement of Nancy Pierce, and the end of Pastor Dee King’s ministry at Saint Matthew, a new position was created for Care and Connecting Ministries, and Pastor Andy felt called to apply for this position.

The congregation voted overwhelmingly in favor of this change of call. Tami Gomez was hired as Care Ministry Coordinator and along with Shannon Perez, Connecting Ministry Coordinator, will assist Pastor Andy.

Advent Conspiracy – Advent and Christmas

With the recognition that Christians participate in the over-commercialization and over-consumption associated with the Christmas holidays, Saint Matthew participated in the Advent Conspiracy and experimented with doing Angel Tree differently this year.

Using the themes of Worship Fully, Spend Less, Give More, and Love All, we made a commitment to take some of the excess we spend at Christmas and use it for those in need. We did this through a variety of weekly opportunities, but on a larger scale, we set a goal to raise $25,000 for Uzima Water Filters to be used and distributed by missionaries in Kenya – a beta-test program for the expanded

worldwide use of these amazing, durable, and long-lasting water filters.

On the following page, you will see all that Saint Matthew accomplished during Advent and Christmas. We took the first Sunday in Christmas to celebrate the matching grant, Uzima Water Filter Campaign, and the second Sunday in Christmas to recount all that we had done to “Love All.”

24

Angel Tree/Advent Conspiracy Donations:

YEAH: 55 sets of sweatshirts, sweatpants, beanie hats and socks for ex-foster kids over the age of 18.

HOPE: 30 sets of sweatshirts, sweatpants, beanie hats and socks for 30 adolescents, plus $510 in Safeway and Target gift cards.

The Apparent Project: $3000 in sales for mothers in Haiti who make jewelry so that they can keep their kids out of orphanages.

Derek Silva Center: $700 in Safeway and Target gift cards for homeless people with AIDS in a San Francisco shelter.

Love-a-Child: $620 in Safeway, Target and Lowes gift cards for abused women and their children in a shelter in Pittsburg.

UZIMA Water Filters: $25,000 matched by an additional $25,000 to purchase 1666 filters, providing clean water for 8330 Kenyans.

Young Life in Former Soviet Union: $5000 to provide Christmas parties for orphans.

Children’s Rescue Mission, Honduras: $5,000 Christmas offering, $420 in CD sales, food for seniors & gifts for pastors and their families.

The Trinity Center in Walnut Creek: $4,000 in Thanksgiving offering to provide food for local homeless.

ELCA World Hunger Program: $4,000 in Thanksgiving offerings for sustainable projects around the world to help feed people.

Suzuki Strings for Honduras Music Program

Bake Sale for Uzima Water Filters

The Apparent Project

YEAH donations Chat Coble from

Uzima Water Filters

Kevin Murphy

25

Christmas Eve

Saint Matthew had three worship services on Christmas Eve, all to full houses (actually the 4:00 and 7:00 p.m. worship services were over-flowing). Christmas is always special at Saint Matthew and this year was no exception. Pastor Kevin preached a message built around Jackson Browne’s rebel Jesus, continuing the themes of Advent Conspiracy.

Over 1400 people worshipped at Saint Matthew in our three Christmas Eve Communion Worship services. Once again, Jesus the Savior of the World was proclaimed, and he promises when he is lifted up, he will draw people to himself.

26

Average worship attendance for month: January 603 February 565 March 557 April 514 May 499 June 462 July 491 August 532 September 512 October 493 November 496 December 566 Average worship attendance for year: 524

ATTENDANCE INFORMATION 2015

27

FINANCIAL STATEMENTS YEAR 2015

The financial data included with this report presents the respective activities of the General Fund, Capital Building Fund and the Saint Matthew Foundation Fund. The combined funds total of Saint Matthew Lutheran Church is compared with the prior year and the financial statements are Unaudited. The Cash and Equivalents as of December 31, 2015 was $424,663 compared to the December 31, 2014 amount of $870,717, a decrease of $-446,054. The Change in Net Assets for 2015 was $-442,394 (expenses in excess of revenue) compared to 2014 for $-22,666 (expenses in excess of revenues). Net cash used by operating activities in 2015 was $100,420, purchase of improvements and equipment (including the kitchen renovation) was $265,082, and the mortgage principal payment was $80,552. Total contributions received in 2015 were $1,578,314 compared to $1,700,209 in 2014, a decrease of $-121,895. General Fund contributions (pledged and unpledged) were $1,343,728 in 2015 compared to $1,435,492 in 2014, a change of $-91,764 (-6.4%). Missions funding totaled $209,152 in 2015 compared to $157,949 in 2014. In 2015, the following mission projects were funded: Saint Matthew celebrated its 50th Anniversary during the year and included $43,000 of support for selected ministries, Young Life (Russia and local) $25,600, Children’s Rescue Mission (Honduras) $17,000, Lutheran World Relief (Nepal earthquake) $10,000, Bay Area Urban Network (Points of Life Oakland) $6,000. Volunteers served at the Trinity Center Homeless center in Walnut Creek and made available over $10,000 food for meals. In addition, approximately twenty other mission projects were funded. During 2015 capital projects were funded for $265,639. The major project completed in 2015 was the renovation of the kitchen. The Saint Matthew Foundation Total Assets as of 12/31/2015 were $482,243 compared to $486,312 as 12/31/2014, a decrease of $-4,069, principally due to securities valuation adjustment. Of the Total Assets $310,315 of the funds are Permanently Restricted as to the principal. During 2015 distributions of $11,500 were allocated, principally scholarships awarded for education. Respectfully submitted, Marvin Schick

28

SA

INT

MA

TT

HE

W L

UT

HE

RA

N C

HU

RC

H

CO

MB

INE

D S

TA

TE

ME

NT

OF

FIN

AN

CIA

L P

OS

ITIO

N

AS

OF

DE

CE

MB

ER

31

, 20

15 A

ND

2014

(UN

AU

DIT

ED

)

C

ap

ital

S

ain

t M

att

hew

12/3

1/2

015

12/3

1/2

014

G

en

era

l

Bu

ild

ing

Fo

un

dati

on

Sain

t M

att

hew

Sain

t M

att

hew

F

un

d

F

un

d

F

un

d

C

om

bin

ed

Co

mb

ined

As

sets

Curr

ent

Assets

Cash a

nd E

qu

ivale

nts

$

3

89,6

31

$

1

4,0

19

$ 2

1,0

13

$ 4

24,6

63

$

8

70,7

17

Pre

paid

Exp

enses

13,6

08

13,6

08

$

1

1,0

56

Deposits, A

dvances, O

ther

7,6

50

0

7,6

50

4,1

95

T

ota

l C

urr

ent

Assets

410,8

89

14,0

19

21,0

13

445,9

21

885,9

68

Mark

eta

ble

Securi

ties (

Mutu

al F

unds)

371,1

26

371,1

26

371,6

84

Pro

pert

y,

Pla

nt

and

Equip

ment

C

ost

10,8

28,4

39

2,5

00

109,9

69

10,9

40,9

08

10,6

75,2

69

A

ccum

ula

ted d

epre

cia

tion

-4

,402,8

53

-1

9,8

65

-4,4

22,7

18

-4,0

66,4

32

N

et

Bo

ok V

alu

e

6,4

25,5

86

2,5

00

90,1

04

6,5

18,1

90

6,6

08,8

37

Oth

er

Assets

Loa

n c

osts

6,7

63

6,7

63

7,1

70

T

ota

l O

ther

Assets

6,7

63

0

0

6,7

63

7,1

70

To

tal

Assets

$

6,8

43,2

38

$

1

6,5

19

$48

2,2

43

$ 7

,342,0

00

$

7,8

73,6

59

See A

cco

mp

an

yin

g N

ote

s.

29

SA

INT

MA

TT

HE

W L

UT

HE

RA

N C

HU

RC

H

CO

MB

INE

D S

TA

TE

ME

NT

OF

FIN

AN

CIA

L P

OS

ITIO

N

AS

OF

DE

CE

MB

ER

31

, 20

15 A

ND

2014

(UN

AU

DIT

ED

)

C

ap

ital

S

ain

t M

att

hew

12/3

1/2

015

12/3

1/2

014

G

en

era

l

Bu

ild

ing

Fo

un

dati

on

Sain

t M

att

hew

Sain

t M

att

hew

F

un

d

F

un

d

F

un

d

C

om

bin

ed

Co

mb

ined

Lia

bilit

ies

an

d N

et

As

sets

Curr

ent L

iabili

ties

A

ccounts

pa

yab

le

$

6,9

23

$

-

$

-

$

6,9

23

$ 1

2,1

08

A

ccru

ed lia

bili

ties

53,2

77

53,2

77

51,5

19

D

ep

osits r

eceiv

ed

2,6

90

2,6

90

10,9

34

C

urr

ent

port

ion o

f note

pa

ya

ble

80,5

07

80,5

07

77,5

49

T

ota

l curr

ent

liab

ilities

143,3

97

0

0

$

1

43,3

97

152,1

10

Long

-term

Lia

bili

ties

D

ep

osits, d

efe

rred e

ngra

vin

g r

eve

nu

e

0

22,8

26

22,8

26

22,8

26

N

ote

pa

ya

ble

, le

ss c

urr

ent port

ion

1,8

97,3

53

1,8

97,3

53

1,9

77,9

05

T

ota

l lo

ng

-term

lia

bili

ties

1,8

97,3

53

0

22,8

26

1,9

20,1

79

2,0

00,7

31

Net A

ssets

Unre

str

icte

d

4,7

50,6

50

16,5

19

149,1

02

4,9

16,2

71

5,3

46,4

99

Net A

ssets

Tem

pora

rily

Re

str

icte

d

51,8

38

0

0

51,8

38

75,1

44

Net A

ssets

Perm

anently R

estr

icte

d

310,3

15

310,3

15

299,1

75

T

ota

l n

et assets

4,8

02,4

88

16,5

19

459,4

17

5,2

78,4

24

5,7

20,8

18

To

tal liab

ilit

ies a

nd

net

as

sets

$

6,8

43,2

38

$

1

6,5

19

$48

2,2

43

$ 7

,342,0

00

$

7,8

73,6

59

See A

cco

mp

an

yin

g N

ote

s.

30

SA

INT

MA

TT

HE

W L

UT

HE

RA

N C

HU

RC

H

CO

MB

INE

D S

TA

TE

ME

NT

OF

RE

VE

NU

E A

ND

EX

PE

NS

ES

AN

D C

HA

NG

ES

IN

NE

T A

SS

ET

S

YE

AR

S E

ND

ED

DE

CE

MB

ER

31, 2

015 A

ND

20

14

(UN

AU

DIT

ED

)

C

ap

ital

S

ain

t M

att

hew

12/3

1/2

015

12/3

1/2

014

G

en

era

l

Bu

ild

ing

Fo

un

dati

on

Sain

t M

att

hew

Sain

t M

att

hew

F

un

d

F

un

d

F

un

d

C

om

bin

ed

Co

mb

ined

Rev

en

ue

Contr

ibutions

$ 1

,546,2

56

$

2

0,9

18

$ 1

1,1

40

$ 1

,578,3

14

$

1,7

00,3

09

Colu

mbarium

nic

he lic

ense

fees

2,4

00

2,4

00

7,0

17

Cam

ps, events

, re

tre

ats

re

ceip

ts

115,9

28

115,9

28

137,9

11

Inte

rest a

nd d

ivid

en

d incom

e

3,7

98

762

7,4

03

11,9

63

15,5

73

Oth

er

incom

e

30,3

13

0

-6

,871

23,4

42

61,7

89

T

ota

l R

ev

en

ue

1,6

96,2

95

21,6

80

14,0

72

1,7

32,0

47

1,9

22,5

99

Exp

en

ses

Mis

sio

ns b

eyon

d S

ain

t M

att

he

w

209,1

52

3,0

00

212,1

52

157,9

09

Em

plo

ym

ent

1,0

40,9

59

1,0

40,9

59

940,8

25

Pro

gra

ms

178,8

49

8,5

00

187,3

49

184,3

51

Pla

nt occup

an

y

298,3

51

3,2

24

301,5

75

238,2

55

Inte

rest exp

ense

75,7

12

75,7

12

78,5

51

Depre

cia

tion

353,2

71

3,4

23

356,6

94

345,3

74

T

ota

l E

xp

en

ses

2,1

56,2

94

0

18,1

47

2,1

74,4

41

1,9

45,2

65

Ch

an

ge in

Net

Ass

ets

-4

59,9

99

21,6

80

-4,0

75

-442,3

94

-22,6

66

Net

Ass

ets

, b

eg

inn

ing o

f year

5,0

56,4

75

200,8

51

463,4

92

5,7

20,8

18

5,7

43,4

84

Cash tra

nsfe

rs

206,0

12

-206,0

12

Net

Ass

ets

, end o

f year

$ 4

,802,4

88

$

1

6,5

19

$ 4

59,4

17

$ 5

,278,4

24

$

5,7

20,8

18

See A

cco

mp

an

yin

g N

ote

s.

31

SAINT MATTHEW LUTHERAN CHURCH

STATEMENT OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2014 AND 2013

(UNAUDITED) Year Year

2015 2014

OPERATING ACTIVITIES:

Change in net assets -$442,394 -$22,666

Adjustments to reconcile change in net assets to

Cash provided (used) by operating activities:

Depreciation 356,285 344,965

Amortization of loan costs 409 409

CHANGES IN CURRENT ASSETS AND

CURRENT LIABILITIES:

(Increase) decrease in prepaid expenses -2,552 -2,304

(Increase) decrease in deposits, advances, other -3,455 28,965

Increase (decrease) in accounts payable -5,185 -9,023

Increase (decrease) in accrued liabilities 1,758 -30,429

Increase (decrease) in deposits received -8,244 8,444

Increase (decrease) in current portion of

long-term debt 2,958 2,850

NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES -100,420 321,211

CASH FLOWS FROM INVESTING ACTIVITES:

(Purchase) of building improvements, furniture,

fixtures and equipment -265,639 -235,946

(Acquisition) disposition of marketable securities 557 -34,976

(Acquisition) disposition of deposits, other assets 0 0

NET CASH USED IN INVESTING ACTIVITIES -265,082 -270,922

CASH FLOWS FROM FINANCING ACTIVITIES:

Addition (payment) of principal of mortgage note payable -80,552 -77,606

Increase (decrease) deposits, deferred engraving revenue 0 0

NET CASH USED IN FINANCING ACTIVITIES -80,552 -77,606

NET INCREASE (DECREASE) IN CASH -446,054 -27,317

CASH, beginning of year 870,717 898,034

CASH, end of year $424,663 $870,717

See Accompanying Notes.

32

SAINT MATTHEW LUTHERAN CHURCH NOTES TO COMBINED FINANCIAL STATEMENTS (UNAUDITED) Years ended December 31, 2015 and 2014 General St. Matthew Lutheran Church of Walnut Creek, California also known as Saint Matthew Lutheran Church (Saint Matthew) is a nonprofit public benefit corporation incorporated in the State of California June 29, 1965. Saint Matthew maintains three main funds to reflect their activity. They are as follows: General Fund – The general fund is used for ongoing religious and charitable activities. Activities within this fund are generally unrestricted. Capital Building Fund – The capital building fund is utilized for capital project appeals and accounting for new construction. Activities within this fund can be unrestricted or temporarily restricted depending on the nature of the activity or the intent of the donor. Saint Matthew Foundation Fund – The Saint Matthew Foundation holds endowment fund contributions and maintains the licensing of the columbarium niches. Activities within this fund can be unrestricted, temporarily restricted and permanently restricted depending on the nature of the activity or the intent of the donor. Preparation of Financial Statements Saint Matthew’s policy is to prepare its financial statements on the accrual basis of accounting. Investments Investments in marketable securities with readily determinable fair values are reflected at their fair values based on market prices for identical instruments in the statement of financial position. Unrealized gains and losses are included in the statements. Saint Matthew invests its money in mutual funds with a financial institution. The investments are shown at fair market value as of December 31, 2015 and 2014. The historical cost of the mutual funds is $396,207 and $376,308, respectively. Total unrealized gain (-loss) as of December 31, 2015 and 2014 is $-25,081 and $-4,624, respectively. For the year end December 31, 2015 and 2014, realized gain is $12,513 and $54,811 respectively, and is reflected in the accompanying financial statements. Federal and State Taxes on Income Saint Matthew is exempt from federal and state income tax under Section 501(c)(3) of the Internal Revenue Code, and Section 23701(f) of the California Revenue and Taxation Code.

33

Property and Equipment Saint Matthew records depreciation on its property and equipment on a straight-line basis using the following estimated useful lives: Computer equipment and software: 5 years Furniture and fixtures 10 years Heating/Cooling and roof replacement: 20 years Building and improvements: 40 years Maintenance and repairs are expensed as incurred. The cost of assets sold and the related amounts of accumulated depreciation are eliminated from the accounts in the year of sale. Any resulting profit or loss is reflected currently in the statements. Property and equipment at December 31, consisted of the following: 2015 2014 Land $137,580 $137,580 Building and improvements 9,585,847 9,392,291 Furniture and fixtures 1,107,512 1,035,429 Leasehold improvements 109,969 109,969 Less: accumulated depreciation (4,422,718) (4,049,990) $6,518,190 $6,494,053 Depreciation expense for the year ended December 31, 2015 and 2014 was $356,694 and $344,965, respectively. Notes Payable Notes payable at December 31, 2015 and 2014 consisted of the following: 2015 2014 Note payable of $3,200,000 obtained September 2007, secured by real property, with an initial interest rate of 6.25%, through Mission Investment Fund of the ELCA (Fund). The Fund reviews and may adjust the interest rate in its discretion every 3 years. Effective October 1, 2010 the interest rate was adjusted to 4.5% and was reset October 1, 2013 with the interest rate adjusted to 3.75% and is reviewed every 3 years thereafter. Note matures September 1, 2033. $1,977,905 $2,055,454 Less: Current portion of long-term debt (80,507) (77,549) Total Long-term debt $1,897,353 $1,977,905 Interest expense for the year ended December 31, 2015 and 2014 was $75,712 and $78,551, respectively.

34

Temporarily Restricted Net Assets The temporarily restricted net assets at December 31, 2015 and 2014 consisted of the following: 2015 2014 Programs $49,638 $67,644 Advanced Giving 2,200 7,500 $51,838 $75,144 Permanently Restricted Net Assets Saint Matthew Lutheran Church maintains one endowed fund of permanently restricted net assets. Permanent restrictions arise when donors contribute money to Saint Matthew with a restriction stating the money is to be invested and that the principal is not to be spent. This is considered a donor-restricted endowed fund that Saint Matthew must hold in perpetuity. Donors do not set a restriction as to the use of the earnings. The income from the permanently restricted net assets is considered a temporarily restricted net asset, which becomes unrestricted when it is spent for the purpose that the Church Council has designated. The endowment fund is classified and reported based on the existence or absence of donor-restricted restrictions and includes net assets permanently restricted at December 31, 2015 and 2014: 2015 2014 Categories of Endowments: Scholarships $127,430 $117,205 Missions beyond Saint Matthew 35,225 35,225 Needs not included in the General Fund budget 12,690 12,190 Donor leaving discretion for designation to the foregoing three categories 134,970 134,555 Permanently restricted net assets $310,315 $299,175 The Saint Matthew Foundation was established in 1990 with a donation of $1,000. The fund was established to enhance the work of the church by establishing new ministries and stewardship opportunities additional to and apart from the general operation of the congregation. In 2002 the Saint Matthew Foundation expanded the categories that donors can designate their gifts for scholarships, ministries (missions) beyond Saint Matthew and the foundation fund. The Saint Matthew Foundation Scholarship Fund provides scholarships to encourage the people of Saint Matthew Lutheran Church to pursue their education beyond high school. The Saint Matthew Ministries Fund is used to support and enhance new or existing ministries (missions) beyond Saint Matthew Lutheran Church. The Saint Matthew Foundation fund responds to special needs and new programs within Saint Matthew Lutheran Church which are not covered by its operating budget, as determined by the Saint Matthew Lutheran Church Council. Up to 5% of the funds may be spent annually based on the Fund’s average fair market value, as averaged over the trailing 12 quarters.

35

Permanently Restricted Net Assets (Continued) Interpretation of Relevant Law The Church Council (Board of Directors) and the Saint Matthew Foundation Board of Saint Matthew Lutheran Church has interpreted the California State Uniform Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the endowment fund. As a result of this interpretation, Saint Matthew Lutheran Church classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by Saint Matthew Lutheran Church in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, Saint Matthew Lutheran Church considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

(1) The duration and preservation of the fund (2) The purposes of Saint Matthew Lutheran Church and the donor- restricted endowment

fund (3) General economic conditions (4) The possible effects of inflation and deflation (5) The expected total return from income and the appreciation of investments (6) Other resources of the organization (7) The investment policies of Saint Matthew Lutheran Church

Funds with Deficiencies From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or SPMIFA requires Saint Matthew Lutheran Church to retain as a fund of perpetual duration. There were no such deficiencies as of or during the year ended December 31, 2015. Subsequent Events Management has evaluated subsequent events through February 6, 2016, the date the financial statements were available to be issued.

36

Saint Matthew Lutheran Church 399 Wiget Lane

Walnut Creek, CA 94598 925-932-1955

FAX 925-932-7580 www.saintmatthew.org