2016 Annual ReportPrepared for the Annual Meeting of the First Lutheran Church Congregation

Sunday, January 29, 2017 • 12:15 p.m. • Sanctuary

Table of Contents

Special thanks to Gene Smith who took many of the photos throughout this publication.

First Lutheran Church Mission Statement and Guiding Principles . . . . . . . . . . . . . 1Annual Meeting Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Minutes of the 2015 Annual Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Report of the Nominating Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Council, Pastoral and Administrative Reports

Report of the President of the Congregation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Report of the Treasurer of the Congregation and Financial Services Board . . . . . . . 6Proposed 2017 Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Report of the Senior Pastor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Report of the Executive Pastor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Report of the Business Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Area Reports

Adult Discipleship Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Evangelism, Mission & Outreach Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Media Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Pastoral Care Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Property and Administrative Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Stewardship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Worship and Music Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Youth, Family and Young Adult Ministries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Auxiliary: First Lutheran Church Women (FLCW) . . . . . . . . . . . . . . . . . . . . . . . 18Disbursement of 2015 FLCW Bazaar Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Auxiliary: Lutheran Men in Mission (LMM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Parish Statistics and Financial Reports

Parish Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Statement of Assets, Liabilities and Fund Balances—Cash Basis . . . . . . . . . . . . . . 22Statement of Revenues and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Statement of Loan Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Summary of Restricted Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Synodical Reports

Report of the Bishop of the South Dakota Synod . . . . . . . . . . . . . . . . . . . . . . . . . 26Lutheran Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Charis Ministry Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

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First Lutheran Church Mission Statement and Guiding Principles

Mission Statement

First Lutheran Church welcomes all people into the community of Jesus Christ, equipping and sending them forth to serve and witness in Jesus’ name.

Guiding Principles

We are grounded in the great commandment of Jesus (Matthew 22:34–40). We love God and people, according to the mandate of Christ.

We are grounded in the great commission of Jesus (Matthew 28:16–20). Christ’s mandate is that we are to take the Gospel to all people. We are a Christ-centered, missionary presence in all segments of society.

We are committed to welcome and minister to all people. We strive to be accessible to as many people as possible. Therefore, we maintain the highest standards of face-to-face ministry, inviting, welcoming and nurturing people at every stage of their walk with Christ.

We are committed to equipping people for ministry. We believe that when people commit to membership in First Lutheran Church, they are committing to prayerful, spiritual growth, which they reveal through Christian acts of service. First Lutheran members discover, develop and deploy their gifts for the transforming work of Christ in their lives.

We are committed to service in our community and world. We are strengthened through Word and Sacrament so that we may witness to and serve those in need in, around and beyond First Lutheran Church. As a member congregation of the South Dakota Synod of the Evangelical Lutheran Church of America, we support mission and evangelism in partnership with our sister congregations.

We are committed to a ministry of relationship building. We believe life transformation takes place most significantly through the power of the Holy Spirit in prayerful, personal relationship with God and others.

We are committed to our heritage and identity as a reforming church. We treasure the rich tradition of the faith of our forbearers. We are a church of the Reformation, which inspires us to carry out the mission work of the unchanging Gospel of Jesus Christ, in a constantly changing world in which God calls us to serve.

We are committed to excellence in broadcast ministry. We are uniquely blessed by God to reach a much larger population with the Gospel proclamation of our worship through radio and television ministry. We believe that providing excellence in this technical mode of ministry enhances receptivity to the Gospel of Jesus Christ among the community and region.

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AgendaFirst Lutheran Church—Sioux Falls, South Dakota

Annual Congregational MeetingSunday, January 29, 2017 | 12:15 pm | Sanctuary

1. Meeting Called to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President Brian Aamlid

2. “The Church’s One Foundation” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ELW Page 654

3. Opening Prayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pastor Lars Olson

4. Approval of the Agenda

5. Adoption of the Minutes – January 31, 2016 Annual Meeting

6. Report of the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Brian Aamlid

7. Report of the Senior Pastor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pastor John Christopherson

8. Reports as found in the published Annual Report for 2016 (adopted as published)

9. Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Eric Severson

a. Presentation of budget for 2017

b. Vote on Proposed Budget

10. First Lutheran Church Foundation Annual Meeting Call to Order . . . . . . . . . . . . . . . . . . . . . .Matt Bock

a. Adoption of the Minutes – January 31, 2016 Annual Meeting

b. Report of the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matt Bock

c. Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Larry Hamre

d. Nomination and Election of Board Members for the 2017 Term

e. Other Business

f. First Lutheran Church Foundation Meeting Adjournment

11. Nomination and Election of First Lutheran Officers and Board Members for the 2017 Term

12. Strategic Initiative Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pastor Peter Strommen

13. New Business

14. Adjournment with Prayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pastor Peter Strommen

15. “Beautiful Savior” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ELW Page 838

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Minutes of the 2015 Annual MeetingFirst Lutheran Church, Sioux Falls, S.D.

January 31, 2016

The meeting was called to order by President Martin Oyos followed by the congregational hymn, “Joy to the World.”

Pastor Lars Olson gave the opening prayer.

The agenda for the meeting, as presented in the annual report, was approved.

The minutes of the February 1, 2015, Annual Meeting were adopted as written.

In his report, President Oyos highlighted 2015 issues and projects, including many staff changes. We are moving toward filling the youth director and parish nurse positions. Property projects in the works include a fire suppression system for the sanctuary building and repairing and painting the sanctuary. First Lutheran is engaged in a Strategic Initiative Process that will be implemented over the next five years so we can move forward with confidence in ministry and mission. Pastor Strommen is leading the process.

Pastor John Christopherson read his report talking about the joy of sharing hospitality in our little big church; the importance of belonging. John highlighted the changes in our visitation staff and praised these pastors for their wonderful work in serving parishioners who are hospitalized as well as the Patriarchs and Matriarchs who are homebound. He sent warm thanks to the

staff for seamlessly moving through numerous changes. “Praise God from Whom all Blessings Flow” for the gift of Zachary Rygiel to fill the shoes of Michael Elsbernd. The annual bazaar brought in a record $65,000 for mission.

Aaron Ellingsen began his presentation of the Financial Report by thanking Marilyn McNeill, LaVonne Wolf and the members of the financial services board for all they do to support his job as treasurer. Aaron outlined the proposed budget for 2016 and that budget was approved.

The meeting was temporarily adjourned. The annual meeting of the First Lutheran Church Foundation followed.

When the meeting reconvened, Pastor Peter Strommen talked about the Strategic Initiative Process. We are currently in Phase III, “creating a plan” which will allow the opportunity to address specific areas of our ministry. Ideally, we will be ready to meet as a congregation in May to approve the initiatives. With the support of the congregation we will then move forward with Phase V, which is implementation.

The motion to adjourn was approved and Pastor Strommen closed the meeting with prayer, followed by the congregational hymn “Go Tell it on the Mountain.”

Respectfully submitted, Diane Atchison

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Report of the Nominating Committee

Nominating Committee members: James Moore, Dorothy Grevlos, John Kittelson, Suzanne Toll, Martin Oyos and Pastor John Christopherson

Officers (1- year term)President – Brian AamlidVice-President – Aaron EllingsenSecretary – Mindy MooreTreasurer – Eric Severson

Adult Discipleship Board (3-year terms)Stan ChristophersonCami Jacobsen LaMoyne Pederson

Evangelism, Outreach and Mission Board(3-year terms)Leslee BarnessDavid HouckMike Minehart(2-year terms)Jordan CookCheri Raymond

Financial Services Board (3-year term)Orrin Anderson

Media Board (3-year terms)Max JensenMorgan Mendelson

Pastoral Care Board (3-year terms)V.R. (Barney) BrandenburgGayle JohnsonBrenda Roberts (2-year term)Gene Erickson

Property & Administrative Services Board (3-year terms)Sandy ChristophersonBill JensenMichael Kedik

Stewardship Board(3-year terms)Shad CarneyMarilyn McLeodRonda Stensland

Worship and Music Board(3-year terms) Todd JacobsenJames MooreJim Speirs

Youth, Family & Young Adult Board (3-year terms)Maria NeelyBen ReadyNicol Reiner

Members at Large (3-year term) Julia Kramer(1-year term)Diane Atchison

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“You did not choose me, but I chose you and appointed you to go and bear fruit—fruit that will last. Then the Father will give you whatever you ask in my name. This is my command: Love each other.” John 15:16-17

We learned from Pastor Lars' sermon recently that waiting is not the hardest part. Disappointment after long waiting…that is

the hardest. Thankfully we are not waiting on disappointment. For we have God’s promise. And in the promise there is forgiveness and life. And, as Dr. Steve Paulson reminded us on Reformation Sunday, what God promises He can do. So our pastors extend to us wonderfully encouraging words that though we may not see it or feel it, the promise that we received in baptism is ours…because we have God’s word on it. And so we continue on in the exciting history of ministry and mission at First Lutheran Church to the glory of God.

A few highlights of the past year and plans for the coming year, some of which are further detailed in accompanying staff and board reports that I commend to your reading:• The Caring Ministry team with Pastor Katherine’s leadership

and with Jana Elkins in place as Parish Nurse and a remarkable group of visitation pastors is moving rapidly on many fronts including addiction support in cooperation with Face It Together, grief support programming, human trafficking awareness/education/intervention, and nursing home worship/music services by Pastor David Houck and his wife, Margaret.

• Full staffing of the Youth and Family Ministry team has been achieved with Marnie Backer as Director, Elias Youngquist as Youth Minister, and Heather Smith as Children's Minister succeeding Nancy Hendrichsen in children’s ministry. Be watchful for significant activity in this area.

• The Scripture First educational program is maturing into its second year and preparing to spawn some interesting small group educational ministries.

• Jeff Backer has begun a two-year staff appointment as Director of Evangelism, Mission and Outreach, a portion of which will fulfill his seminary internship requirement. He will be involved with many things but will have particular involvement with downtown outreach ministry. Those of you who attended the prayer service for Ethan McMahon, who lost his life in the downtown building collapse, have experienced some of the early fruits of his work.

• The First Lutheran African Ministry, after 12 years of utilizing First Lutheran space for worship and events, transitioned to

their own space. Pastor Bill Tesch from the SD synod office had significant involvement with the transition. Nurturing young ministries has long been a part of the identity of First Lutheran.

• Much needed campus maintenance and enhancements have been facilitated by the Property Board and our outstanding custodial staff. The sanctuary has a fresh coat of paint and installation of the fire suppression system is underway. The parking lots have been resurfaced and electronic gates have been installed in the east lot. The gates will afford predictable access management for our paying parking lot tenants and aid Ken Kessinger in his parking duties for Lutheran Men in Mission. He has provided many years of exceptional parking lot service. An outdoor campus project funding appeal has been well-supported and is ongoing anticipating renovation of the Dakota Avenue steps and completion of the outdoor signage and landscaping. Please take a moment to appreciate the amazing work on the Tower Entrance doors completed by the gentlemen in the volunteer shop.

• First and Foremost, our strategic vision, is moving forward as evidenced in the aforementioned highlights. The Leadership and Governance group (initiative 7) continues to evaluate organizational infrastructure and potential modifications that might better support our strategic vision for ministry and mission that happens in and from First Lutheran. Changes in council and board structure and function are under consideration. Some boards are already beginning to function more as ministry facilitators than simply ministry doers. Further progress with volunteer recruitment and development will be critical (please be generous as you explore interest areas that would benefit from your time and talents). Look for coming opportunities for further discussion of carefully-considered recommendations for organizational structural changes and associated subtle bylaws changes that may be indicated.

A closing word of thanks for the dedication, energy, and vision of the pastoral and lay staff. Thanks as well for the commitment of the many First Lutheran members who serve on council and boards. Special thanks to Diane Atchison who concludes a long tenure as congregational secretary and member of both the executive committee and church council. It is otherwise anticipated that the present council will remain intact for the coming year. And finally, thanks to all you First Lutheran members who financially support the ministry so generously and also freely volunteer your time and remarkable talents (quilters, bazaar organizers/workers, and the host of others) here and around the community. You are an amazing bunch of Lutherans!

Report of the President of the Congregation Dr. Brian Aamlid

Dr. Brian Aamlid

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Just as 2016 was a time of preparing for change, the year 2017 promises to be a year where many of those changes start to be seen and felt within the congregation of First Lutheran Church. We are

preparing to step out in faith in various ways relating to the new mission and ministry initiatives that are in the works. This process has taken the form of changes to the church staff in the 2016 and this will be realized more fully in the 2017 budget because, as we always remember, the primary component of our ministry work comes from the many volunteers and staff that implement those programs and initiatives.

We had a good finish to the year 2016, with Total Income exceeding budget projections overall. Pledge offerings exceeded the budget by a good margin and the overall total of offerings received also exceeded the budget. In the end the total of pledge offerings received as compared to total pledges budgeted yielded the second highest percentage out of the last 10 years! Great thanks go to every one of you dedicated givers for that!

Total Expenses also outperformed the budget by ending the year below the projected number. This was due to efficient use of budgeted funds in our program areas and to reductions in the personnel expense due to staff positions that were not filled for the entire year. In the end we reported a small deficit (actual dollars received to actual dollars of expenses) at year-end but it was much smaller than the difference that had originally been projected.

The financial outlook for 2017 is one of cautious optimism. The current tally for 2017 pledges (as of this report) is ahead of 2016 in dollars which indicates a positive response to the

request in the Stewardship campaign that givers prayerfully consider a 12% increase in personal giving. In actual dollars, the total increase is 0.5 % which is small but nevertheless a positive step after a decline in 2016 from 2015. The number of family units that have pledged for 2017 is below the 2016 number at this point but the good news is that this means that the average pledge per family unit has increased.

The gift from the First Lutheran Church Foundation reflects the same positive spirit. In real dollar terms, the 2017 commitment of $298,158 represents a 13.9% increase over 2016. This represents the wonderful positive impact of all the gifts by the faithful supporters of the ministry of First Lutheran Church to the Foundation. Thanks to all the faithful who have made gifts and thanks to the Foundation Board for reaffirming their commitment to strongly support the ministry of First Lutheran Church!

Thanks go to the members of the Financial Services Board in 2016 for their service. They are John Barkley, Mary Brandenburg, Don Helberg, Dan Hinceman, Terry Hofer, Paula Jensen, Pat Kyte, Deb Nelson and Kent Quail.

Thank you once again this year to Marilyn McNeill and LaVonne Wolf for their tireless efforts in the area of financial matters on behalf of First Lutheran Church!

• Total Income for 2016: Actual $1,968,591 vs. Budget $1,956,128

• Total Expenses for 2016: Actual $1,982,956 vs. Budget $2,018,128

• Total pledged for 2016: Pledged $1,361,272 vs. Received $1,357,448 (99.7% rec'd)

• Pledged dollars collected in 2016: 3.9% higher than the budget figure for total pledges

• Total pledged for 2017 (thus far): 2017 – $1,368,230 vs. 2016 – $1,361,272

Report of the Treasurer of the Congregation and Financial Services Board

Eric Severson and Deb Nelson

Eric Severson Deb Nelson

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Proposed 2017 BudgetProposed 2017 Budget

2017Description Budget Actual Budget

REVENUESOfferings Pledge Responses 1,306,821$ 1,357,448$ 1,327,183$ Non-Pledge Responses 202,200$ 160,839$ 157,275$ Special Offerings 38,000$ 35,764$ 35,700$Total Offerings 1,547,021$ 1,554,051$ 1,520,158$

Gifts Media 63,400$ 64,057$ 63,500$ Foundation 261,709$ 261,709$ 298,158$Total Gifts 325,109$ 325,765$ 361,658$

Other Income Fee Income 71,498$ 72,139$ 70,898$ Non-Budgeted Income 12,500$ 16,636$ 12,000$ Operating Reserve 62,000$ 70,000$Total Other Income 145,998$ 88,775$ 152,899$

Total Revenues 2,018,128$ 1,968,591$ 2,034,715$

EXPENSESAdult Discipleship 22,000$ 20,273$ 19,580$Youth & Family 55,000$ 55,029$ 49,217$Financial Services 94,436$ 93,434$ 78,750$Media 77,500$ 79,893$ 78,000$Outreach / EMO 110,000$ 110,421$ 109,915$Pastoral Care 6,000$ 6,762$ 12,328$Personnel/Council 1,390,000$ 1,360,759$ 1,416,009$Property & Administrative Serv 229,192$ 217,694$ 218,495$Worship & Music 27,000$ 30,915$ 44,322$Stewardship 7,000$ 7,774$ 8,099$Total Expenses 2,018,128$ 1,982,956$ 2,034,715$Profit / Loss (14,364)$

Net Revenues/(Expenses) 2,018,128$ 1,968,591$ 2,034,715$

2016

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Report of the Senior PastorJohn Christopherson

“Growing Pains” “And Jesus said, ‘Truly I say to you, no prophet is acceptable in his own country. But in truth, I tell you, there were many widows in Israel in the days of Elijah, when the heavens were shut up … when there came a great famine over all the land; and Elijah was sent to none of them but only to Zarephath, in the land of

Sidon, to a woman who was a widow. And there were many lepers in Israel in the time of the prophet Elisha; and none of them were cleansed, but only Naaman the Syrian.’ When they heard this, all in the synagogue were filled with wrath. And they rose up and put Jesus out of the city … But passing through the midst of them he went away.” (Luke 4:14-30; RSV, emphasis added)

Dear Family Members & Friends of First Lutheran Church:

“Growing pains.” We’ve all had them. The crest-fallen times when cherished beliefs from childhood leave us standing flat-footed in our comfy flannel PJs, holding an empty bag of innocence: “You mean, there’s no such thing as Santa Claus?!” (Please keep this article away from young children who like to read Annual Reports!) Or maybe those classic “Charlie horse” symptoms we experienced in our legs during middle-school – usually “kicking” us out-of-bed in the middle of the night. Or speaking of which, there was what many a Mom referred to as the “Hollow Leg Syndrome” of teenage years – catching her high-schoolers staring into an opened refrigerator door every fifteen minutes. “Hey! We just had supper.” … Hmm?!

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The above Scripture text, from Luke 4, is assigned for the second Sunday of Epiphany (in our Narrative Lectionary for January 18) and serves as a wonderful “stage-setter” for our Annual Meeting. This text is an important reminder, for all of us, that Jesus is not only the One who brings comfort ’n redemption into our lives; but he also serves to challenge, and yes, even “upset” us at times – getting us out of the nice warm baptismal waters (or PJs) and into the wilderness (cf. Matthew 3:16–4:1) … or getting us out of the boat in order for us to hang-in-there with those-out-there (cf. Matthew 4:18-22). At bottom, Jesus’ teaching causes some serious “growing pains” for the very heart of the church: to step out in mission, to risk new adventures in ministry (cf. John Sanders; The God Who Risks, InterVarsity Press 2007).

I mean, when you read the gospel stories – better yet, when they read you – Jesus tells us the truth so clearly that we’ll do all kinds of appalling things just to get him to “SUSH!” If you don’t believe this, maybe it’s because you’ve not recognized Jesus in some of the offensive people God has sent your way. Not all of them, mind you, but some – some who yank your chain and upset your equilibrium so that you don’t confuse your ideas of God with God’s revelation of God’s self to us in Holy Scripture and the person of Jesus. (I hope that you were able to attend Dr. LaMoyne Pederson's and my Thursday night forums in January … “Atheism, God, and the Mystery of Evil” … that touched on this particular issue.)

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As New Testament scholar, Joseph Fitzmyer points out: “In a way, this gospel lesson in St. Luke [from chapter 4] is a foreshadowing of Jesus’ entire ministry” (The Gospel According To Luke vol. 1, pp. 256). It’s this whole matter of Jesus’ pressing our preconceived boundaries. Here Jesus is testing the matter of a cozy community/congregation that’s threatened by his very first sermon – delivered in his hometown of Nazareth.

Basically, Jesus did nothing but remind them that God’s sense of community was a lot bigger than theirs. He offends them by telling them not one but two stories about how God had passed over them and their kind in order to minister to strangers – first the widow from the wrong side of the tracks in Zaraphath (I Kings 17:1-6) and then that Taliban officer, Naaman (II Kings 5:1-14)! It was like telling them God had become a chaplain to the Ku Klux Klan, or that God had passed over an elderly Sunday School teacher who was sick in order to take care of an atheist. Jesus was not telling them – or us for that matter – anything new after all. He was telling them things that were right there in Holy Scripture (cf. Genesis 12:1-3; Exodus 22:22; Deut. 14:29; 16:11, 14; Ps. 146:9). Only that was not how they “used” Scripture. They used it to close ranks on outsiders, or to rationalize: “Hey, this is tradition; the way we’ve always done church.” American author, Anne Lamott – who’s also an astute theologian ’n sometimes psychiatrist – puts it this way: “You can safely assume you’ve created God in your own image when it turns out that God hates all the same people/things you do” (Bird By Bird). Ouch! We throw up “No Trespassing” signs but God says “Welcome.” Note the great symbolism here in Luke 4:30!!

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Pr. John Christopherson

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Family Members and Friends of First Lutheran Church: Jesus is teaching us again this day that the truth of the gospel – born out in ministry and missions – is always more than any one of us can grasp by ourselves or sim-ply settle into. That’s why the heart of this Gospel text is in verse 25 – “Truly, I tell you [that’s Jesus’ talking] …” It’s reflected in Kant’s Critique of Pure Reason. In Schubert’s Unfinished Symphony. In Alfred North Whitehead’s “fallacy of misplaced concreteness” … that the whole of God’s love is more than all the parts of our un-derstanding (e.g. “I’m a fuse in a washing machine, therefore I’m the whole ma-chine.” But as my coaches always told me, like Kenny Kessinger during Augie years: “There’s no ‘I’ in Washing Machine ... Huh?! Well, you know what I mean.)

You see, this Gospel text from Luke 4 is God’s call for us to be a prophetic as well as a priestly light, to make disciples of all nations (Matthew 28:19; also Jeremiah 1:5-9; Matthew 5:14-16). For it takes a whole world full of friends and strangers – of insiders and outsiders

– to tell us the parts we cannot see by ourselves, and sometimes that causes us “growing pains.” … “And Jesus passed through the midst of the angry crowd and went on his way” (Luke 4:30). How’d he do it? I don’t know, but that’s how it still works. If we won’t listen, he won’t try to change our minds. He’ll pass right through, and we’ll be left with empty pews and empty opportunities

for ever fuller, and more colorful and ex-citing adventures that God is seeking to lead us toward … May we be ever prayerful for eyes ’n hearts ’n arms to see and enfold (as with the children pictured here). And so with the wondrous “bullets” and “stories” that you’ll find in the following articles.

O, blessed “growing pains” …

By God’s grace, in Christ

Dr. John Christopherson Senior Pastor

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Report of the Executive PastorPeter Strommen

Pr. PeterStrommen

As you know, my call here as a pastor includes preaching, teaching and visitation. But its major focus has been to help facilitate structures and staffing that support First Lutheran Church in renewing some of its ministries, especially those to, with, and by those under age 50. I have occupied the role of Executive Pastor and worked closely with Pastor John Christopherson, the Executive Committee and a host

of teams and task forces that ensued from our strategic initiative process, itself a response to the CAT survey taken by over 600 of you.

The month to month progress over 2016 can be seen by reading my monthly First Word articles. Here, in the annual report, I’ll summarize the major movements and accomplishments of this past year, suggesting too what are especially important next steps in 2017.

One Year Hence: January to December

Developing the Plan

Let’s recall where we were last January. The congregation had completed extensive interviews with consultant Blair Anderson and received a comprehensive report and recommendations based on the 650 responses to the Church Assessment Tool (CAT), 250 members who had attended focus groups and individual interviews and the aspirations that emerged from the Vision to Action Workshop of the previous spring. The church council had approved eight strategic initiatives, based on the data and recommendations, responding to the deepest concerns and hopes that you, the congregation, expressed through this process.

The work ahead now required eight task forces, each working around one initiative to flesh out what needed to be done if First Lutheran was to achieve them going forward. About 60 fellow members worked hard for two months and created 93 specific recommended actions. A small team of writers then brought things together in a coherent plan, “First & Foremost: Fulfilling Christ’s Call,” duly reviewed and approved by pastors, staff, congregational review forums and the church council.

By June, we had a carefully thought-out plan. Then there came the challenge of its execution. Think of the first half year as creating the plan and the second half as starting its follow-through. I say “starting” because the plan itself is

the size of an elephant – very significant in its scope and content, very meaty in what it seeks to tackle. Our prayers asked God for discernment of his “preferred future” and you the congregation, articulated deeply thoughtful, substantive concerns and aspiration that are reflected in many of the major challenges the church currently faces in western civilization.

Executing the Plan: from concept to action

The question of plan execution therefore had to ask: how are we staffed? Our leadership structure aligned? Where do we begin in order to build something that can be sustained over the multiple years it will take?

The eight initiatives (now called “focus ministries”) and the 93 “recommended actions” are available in the First & Foremost documents and need not be rehashed here. What is worth lifting up are the major themes affecting how we address them – the desire for more outreach, ministering to the hurts of people, developing greater sense of community and connection (hospitality, friendships) and making sure our ministry to and with young families reflects our very best efforts.

Each focus ministry area began working on specific goals this summer and into the fall. You can review them in the “accomplishments” list accompanying this report, arranged by focus ministry categories. One key question: “how well do the staff, church council, boards and volunteers, and assorted ministry teams function together?”

Check out focus ministry #7: “Leadership and Administrative Systems” (Recommended Actions for Eight Strategic Initiatives”). Task force #7, composed of current and past congregational presidents, professional administrators and First Lutheran pastors all agreed that the way we now do things will not sustain First and Foremost over several years. We must reorganize the staff, ministry boards, the church council, ministry teams and volunteers so that they function together. This is the effort that has spawned proposals for modifications in the way we do things, including church council size and function, volunteer development and the role of ministry boards. This is a work in progress but is receiving major focus over the next three months.

At this writing, Dec. 17, 2016, many initial steps have been taken and much work has gone on behind the scenes to lay the foundations for new ministry or enhanced ways of doing old ministry that responds the wonderful plan First

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Lutheran members have created. Again, you can see many initial steps in the “accomplishments” list mentioned earlier.

Going forward, here are some important things to look for, pray for and in some cases consider being a part of.

1. One major undertaking over the past two years has been to carefully develop an “executive pastor” position to work in close collaboration with the senior pastor. Pastors John, Lars and Peter have worked this through in connection with the Executive Committee, which is recommending Pastor Lars as the executive pastor. The main point here is that this arrangement allows for senior leadership to continue its excellent pastoral presence while greatly enhancing the capacity for also giving excellent administrative leadership to staff and ministry areas, a vital part of any recipe for First and Foremost follow-through.

2. The opportunities for volunteer service already coming out of Downtown Outreach are many and growing. The community worship service hosted here following the tragic building collapse in downtown was a direct result of the First and Foremost plan and some of the work done this fall, including the fine teamwork of the staff in putting things together on 24-hours notice.

3. Moving First and Foremost forward will require a) financial support of going beyond status quo, and b) increasing the number of members who find satisfying involvement in volunteer ministry. These two areas – both “stewardship” – will require hard, diligent work going forward.

4. Finally, with the congregation now in the “execution” phase of a five-year journey, and with a plan going forward that better coordinates pastors, staff, lay leaders and volunteers as a team, I am stepping away from my “executive pastor” role into a transitional role, continuing to work closely with Pastors John and Lars and eventually leaving First Lutheran sometime in the spring. While I have not had the opportunity to get to know many of you – my work has necessarily centered on working with staff and congregational leaders – I have a very special place in my heart for First Lutheran and the wonderful community of saints here.

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First and Foremost is defined as “most importantly” and our staff members at First Lutheran Church are most important(ly). We are grateful to both clergy and non-clergy staff for their long hours and commitment to our ministries. Thank you members and staff that assure that the ministries of this church transpire every day of the week.

This year we welcomed the following new staff members to fill very important roles:

A special thank you to Nancy Henrichsen, former Director of Children’s Ministries, who left to work in the SF school system, but continues as a Nursery Attendant and First Lutheran Church volunteer.

I wish to sincerely thank the congregation, the Executive Committee and the Church Council and all the boards for their support to me and the rest of the First Lutheran Church staff.

As we look to the coming year, I know that God is with us and leads and guides us in our works.

Report of the Business Administrator Marilyn McNeill

Marilyn McNeill

“This is the work of God, that you believe in him whom he has sent.” - John 6:29

The Adult Discipleship Board’s primary purpose is to guide and oversee that the Christian Education at First Lutheran Church teaches the gospel, builds up the body of Christ, and promotes sharing of the faith. Each year the ministries and programs

vary, yet at the center of our ministry in Jesus’ name is to teach the Christian faith: Bible, theology, and living the Christian life.

Key Ministries of 2016• Full schedule of Adult Education on Wednesday nights:

parent classes, study on Luther, racism & the Bible, music & hymns.

• Scripture First Bible study on Sunday mornings: Bible study that follows the narrative of the Bible and the preaching text in worship.

• Senior Meals: a free meal and educational program offered monthly for senior citizens.

• Lenten Devotional: written and published by staff and members of First Lutheran.

• Sharing in the Spirit: an exploration of Christian spiritual practices.

• Various Bible Study opportunities: Beth Moore videos, Wednesday Preacher’s Study, Men’s Thursday Morning Bible Study, Young Adult Bible Study.

• Luther Exhibit Trip.

New Ministries Planned for 2017• Small Group Ministry• “Big Question” Theology Series• Summer Education• Expanding First Lutheran’s role as a “teaching congregation”

2016 Board MembersAlma Kallesen (chair), Cami Jacobsen (co-chair), Donna Johnson (secretary), John Bergland, Stan Christopherson, Charlotte Cooper-Tracy, Daryl Crawford, Lindsey Olson, Jason Schramm, Pastor Lars Olson

Adult Discipleship Ministries Alma Kallesen, Chair

Alma Kallesen

Jeff Backer Director of Evangelism,

Mission & Outreach

Jana Elkins Parish Nurse

Jean Hoff Volunteer Ministry

Developer

Heather Smith Children’s Minister

Dennis TranbergVisitation Pastor

Elias Youngquist Youth Minister

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Evangelism, Mission and Outreach Ministries Colleen Kokenge, Chair

This board serves the congregation of First Lutheran Church for the needs of our community and the world through the stewarding of the generous gifts entrusted to us by the congregation. The gifts from the congregation continue to come abundantly with the request to serve our neighbors as Christ calls us to do. The South Dakota Synod is the most critical partner First Lutheran Church has a wide outreach as

we join our efforts with other congregations in the Evangelical Lutheran Church in America.

Global partnerships that we support include ELCA World Hunger, ELCA Disaster Response, Bread for the World, Feed My Starving Children, the Lutheran School of Palestine, LIZWAN, Lutheran World Relief, and our companion synods in Cameroon and Nicaragua. We are thankful for Nancy Olson continuing to organize the Bread for the World “Offering of Letters” at First Lutheran.

Local Missions we support include First Lutheran African Ministries, Pueblo de Dios, Table of Grace (new mission start in Harrisburg), Lutheran Social Services, Habitat for Humanity, St. Dysmas, Community Outreach, Bishop Dudley House, The Banquet, Family Connection, Bowden Youth Center, St. Francis House, Lowell and Hawthorne Schools, Charis Ministries (which includes Food to you Mobile Food Pantry, Project Car, and Necessities for Neighbors), Feeding SD, Good Shepherd Ministry, Union Gospel Mission, Center for Worship & Music Studies in Minneapolis, Dental Mobile Clinic, Multi-Cultural Center, and Church on the Street. We thank Cherie Hopper for her willingness to serve on the board for the Charis Ministries in 2016 and again in 2017.

The structure of this board will change in 2017 with much more emphasis on ministry teams to serve our downtown neighbors and others in the community. Jeff Backer joined the FLC staff on Sept. 1 as Director of Evangelism, Mission and Outreach and has become a face of First Lutheran in downtown ministry. Jeff has formed a Downtown Outreach Steering team that is active, established connections with several community agencies including Lowell and Hawthorne Schools, Ayuda Ministry (Jennifer Lunder), Lower Brule Reservations/Crow Creek Tribe, St. Dysmas (reentry program), spoke at the Multi-Cultural Center, and continues to meet with local ministry staff. Rebel Hurd serves our neighbors through Church on the Street with the support of the SD Synod and is now located on site

at First Lutheran Church. Additional plans are to create small group ministry teams with young adults as a way of connecting relationships and doing community projects.

We also support ministries that promote Christian Education and discipleship. This includes supporting our First Lutheran Seminarians: Alex Clark and Jeff Backer in 2016 with the potential for more students in 2017. In addition, we support Luther House of Study (many members of First Lutheran Church have benefited from classes) and our Lutheran's Outdoors in South Dakota camps.

Our board members along with Pastor John Christopherson and Jeff Backer work diligently to identify those ministries requesting financial as well as prayerful support in this community and worldwide. We are very thankful for those board members who served in 2016 and the new board members who will serve in 2017. The board members who served in 2016 are: Colleen Kokenge (Chair), Jeff Backer, Kelsey Heinert, Cherie Hopper.Mike Minehart, Cindy Moegenburg, Suzanne Van Bockern, Heidi Van Veldhuizen and Lori Wilbur.

Colleen Kokenge

Clockwise from left: Thank you notes from students at Lowell Elementary School, booths at the Block Party , and Church on the Street's new office space at First Lutheran.

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Media Ministries Dave Sonnichsen, Chair

First Lutheran Media Ministries is devoted and committed to sharing Christ’s love by reaching out to our community both near and far in a variety of ways. At the core of our ministry is the opportunity to spread God’s word. This includes weekly television and radio broadcasts, a web page, YouTube, and print modes (First Word, Sunday bulletins, and News Notes). These services provide worship experiences for persons who are home-bound,

the unchurched, prison inmates, those who are hospitalized or in retirement facilities, and others who are unable to participate in a worship experience at First Lutheran Church.

It is through the commitment of Media Ministry volunteers (who operate television cameras, audio sound boards, announce audio portions of the service, timekeepers, and video mixers), members of the Media Board, and the involvement of talented First Lutheran staff that these services are provided. Dave Palmer continues his commitment and devotion to this ministry by sharing his technical expertise also.

It is our hope to continue the on-going work of Media Ministry as well as add new goals. These are all done for our Lord and Savior Jesus Christ.

• Develop a strategy and vision plan for Media Ministry.• Reach out to others by recruiting more Media Ministry

volunteers while keeping current volunteers active.• Update the Media Ministry web-site.• Update Media Ministry equipment as new technology becomes

available.

Media Ministries board members this past year include Bryan Bjerke, Bob Hemre, Suzie Hernes, Morgan Mendelson, Dave Palmer, Larry Satterlee, Dave Sonnichsen, Tim Stark, and Brad Thompson. Marilyn McNeill continues to serve as the First Lutheran staff member for our board.

We invite you to consider being a part of this vital church ministry. You may do so by contacting the church through the information desk (605-336-3734). Training is available wherever needed. We look forward to serving the Lord together.

Dave Sonnichsen

To more accurately reflect what we do, we realize our board should be named "Board of Caring Ministries." This change will be officially recognized in a congregational meeting next year, date to be determined.

Highlights for the past year include:• Advertised for, interviewed and recommended hiring of our

new Parish Nurse, Jana Elkins. • Pastor Katherine Olson became our Caring Ministries pastor.• Adopted a new guiding statement: "The Caring Ministries of

First Lutheran Church provide healing, comfort, and hope to those who suffer in mind, body, or spirit, remembering that 'God heals the brokenhearted and binds up their wounds' (Psalm 147:3). Our ministries exist for the church and the whole community, striving to empower and equip all Christians to compassionately care for others, following the example of Jesus.”

• Organized support for the 2016 NAMI Walk in the spring, with improved participation from members of First Lutheran.

• Evaluated our responsibilities in the Strategic Initiatives from the church council. That included the launch of the Facing Addiction program, which connects individuals with concerns about drinking or drug use to resources within the congregation and community through Face It TOGETHER Sioux Falls.

• Spent a lot of time defining new and existing teams reporting to the Board of Caring Ministries (BCM).

• Involved with writing job descriptions for all volunteer positions for all our ministry teams reporting to BCM.

• Sponsored the Ronald McDonald Dental Care Bus for 48 kids. The care was valued at over $22,000.

• Helped with the Holiday Grief Service on Saturday, Nov. 19, for more than 50 members who have had loss of family members during 2016. Pastor Katherine was in charge. Dr. Marcie Moran was the special speaker. The feedback was most positive.

• Sponsored the Facing Addiction Forum on Oct. 17 as an introduction to the program.

Board Members are: Gary Earl, Co-Chair, Cindy Forsburg, Co-Chair, Gayle Johnson, Council Representative, Kristin Anderson, Linda Braun, Sandy Holleman, Betty Pfeifle, Cheryl Satterlee, Jill Speirs, and staff members, Pastor Katherine Olson and Parish Nurse Jana Elkins.

Pastoral Care Ministries Gary Earl and Cindy Forsburg, Co-Chairs

Gary Earl Cindy Forsburg

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Property and Administrative Services Lyle Eidsness, Chair

Our primary focus is to provide for and maintain an attractive, clean and comfortable physical environment in which the staff and members of First Lutheran Church (First Lutheran) may work and worship together.

Accomplishments in 2016:• Spring and Fall clean up of church grounds• Pre-Easter cleaning of the church• Began and completed a campaign to raise

$250,000 dollars for campus improvements during which we collected $200,000 dollars toward our goal. With this money we were able to complete all of the ear marked projects but one. Completed projects were:

• Seal coat and re-stripe parking lots• New signs for our parking lots• A new door for the south tower entrance• Repair some sidewalk along Dakota Ave.• Installed four electric barrier gates in our east parking lot• New landscaping in the front and southeast corner of the church• Repaired, caulked and painted exterior windows on the north,

south and southeast of the church• Replace the top eleven steps in the front entrance to our

church [still in progress]• Painted the nave and chancel and repaired damage to walls

in these areas as well

Goals for 2017:• Install the much awaited fire suppression system in our

Sanctuary Building.• Complete our campus improvement campaign by replacing

the brick retaining walls in front of our church.• Finish the replacement of the front steps .• Implement a church safety and security policy.• Continue to improve the visual image of our church campus.

2016 Board Members:A huge thank you to our board members whose faithful service made this very busy year extremely successful: Colin Barron, Tom Christopherson, Lee Goldammer, Jeff Heronimus, Bill Jensen, Michael Kedik, Bob Litz and Pat Pearson.

We would also like to thank the members of our congregation who contributed financially to the campus improvement campaign and those who gave of their time in the cleaning of our building and grounds.

And finally a very special thank you to First Lutheran Business Administrator and our board advisor, Marilyn McNeill, and David Wilson, our Facilities Manager, and his staff Jeff Hartnett and Rick East. Without their support and all the extra time they contributed this year we would not have accomplished the goals that we did.

Lyle Eidsness

The Stewardship Board’s mission aligns with Goal #8 of First and Foremost: Increased stewardship and foundation development. Stewardship is about time, talent, and treasure. This goal is essential for First Lutheran to achieve all other goals in First and Foremost, including the expansion of education for all ages, healing and caring ministry, downtown outreach, and leadership enhancement.

2016 Accomplishments:Accomplishments of the Stewardship Board this past year included:

• Establishing a common stewardship vision and goal for 2017. • Designing and carrying out a new, robust stewardship

communication strategy for reaching all demographics.

• Facilitating the development of stewardship talking points for all to use for the 2017 campaign.

• Documenting the multi-year stewardship strategy in the Stewardship Playbook.

2017 Goal:Continue the stewardship strategy established this year, reaching for the goals in First and Foremost, augmenting person-to-person engagement, and increasing the range and diversity of communication media to reach all age groups.

Board members in 2016: Tim Heinemann, Marilyn McLeod, Dave Munson, Martin Oyos, Birget Peterson, Ronda Stensland, Jim Sturdevant and Tom Wadsworth

Thanks to our board advisors, Pastor Peter Strommen and Marilyn McNeill.

Stewardship Jim Sturdevant, Chair

Jim Sturdevant

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Worship and Music Ministries Marilyn Van Demark, Chair

The Board for Worship and Music ministries is involved with assisting the music staff and pastoral staff in providing meaningful worship experiences. This includes not only music, but also the entire worship experience.

Major accomplishments during 2016:• Approved new bulletin format, allowing for commentary and ease of use by congregation. Liturgy and hymns can now

be printed in the bulletin, better serving visitors and those unfamiliar with Lutheran worship.

• Formed 11 a.m. contemporary worship ministry team in coordination with Larry Olson to help implement and coordinate direction given by the board.

• In April, Center for Worship and Music studies from Minneapolis led a workshop at First Lutheran entitled, “Leading Congregational Singing.”

• Hosted the Women’s Choir, Adult Choir, and Youth Choir breakfast between services on Christmas Music Sunday.

• Decorated the sanctuary for Easter, Thanksgiving, Advent and Christmas worship.

• Ongoing discussion on Initiative #5 – specifically the 11 a.m. contemporary worship service. Topics included:o Evaluating the order of worship at 11 a.m.o Expanding the musical repertoire at 11 a.m.

• Coordinated worship participants, including:o Altar Guildo Communion Serverso Usherso Cantorso Readers

Board members who served in 2016: Marilyn Van Demark, Chair, Willie Bertsch, Todd Jacobsen, Joel Nevin, Tracie Osthus, Mary Ryrholm, Jim Speirs, Marti Thompson and Suzanne Willadsen.

Goals for 2017:Continue to support our excellent history of Lutheran worship.

Marilyn Van Demark

Above: Carol Choir presents "From the Children" on April 17

Left: Women's Choir

Below: Music Director, Zachary Rygiel, entertains visitors from this September's Sidewalk Arts Festival.

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In 2016, we continued our efforts to ensure First Lutheran ministries share Christ’s gospel through various educational and activity platforms. The year was somewhat of a transition for the youth and family team, but we are now fully-staffed and ready for the new year.Marnie Backer – DirectorElias Youngquist – Youth Minister

Heather Smith – Children’s Minister

2016 Highlights:Scripture First – We continued to refine the education offered to our youngest members through Scripture First. Current and new volunteers, along with some format changes, have enhanced the impact and reach of this important ministry.

Milestone Ministries – We expanded this ministry with an additional milestone (We Are the Church) and placed greater emphasis on these significant pieces of the Lutheran faith through events and education within Scripture First.

Summer Programming – We provided fantastic opportunities for all ages throughout the summer, including bonfires for middle and high school youth, a “Parking Lot Party” at First Lutheran, teamed with the EMO Ministry for a tailgate at a Canaries game, summer camps and open gyms, and various family events throughout Sioux Falls.

Additional Education – Building on Scripture First, we started various bible studies for youth and young adults, adjusted Wednesday Wow for children, and offered a Summer Day Camp in addition to our Summer Bible School program.

2017 Goals:The Youth, Family & Young Adult Ministries recognizes its integral role in advancing First Lutheran’s vision for First and Foremost. We will continue our efforts to offer a variety of opportunities for congregation members t h rough educa t i ona l programming, combined with exciting events and activities throughout the year. To achieve this goal, we have chosen to employ the following ministry teams (additions likely), with participation from board members and other critical First Lutheran volunteers:• Confirmation Ministry

Team• Family Ministry Team• Milestone Ministry

Team• Scripture First Ministry Team• Summer 2017 Ministry Team• Young Adult Ministry Team• Young Children Ministry Team• Youth Ministry Team

Board Members who served in 2015:Katie Bossman, Sandy Fink, J.J. Gohl, Kristina Hein, Sarah Muller, Maria Neely, Benjamin Ready, Nicol Reiner and Eric Sather.

We would like to give a special thanks to Nancy Henrichsen for her years of work with First Lutheran Children’s Ministry. We are incredibly blessed she has been willing to stay on in a volunteer role, assisting with the transition and our nursery staff.

Thanks as well to Eric Sather, Heather Smith, and Lexy Johnson for their interim work with middle and high school youth during various parts of 2016; and to our two summer interns, Bailey Nelson, Luke Wanous, both from Augustana University.

Youth, Family & Young Adult Ministries Benjamin Ready, Chair

Benjamin Ready

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Auxiliary: First Lutheran Church Women (FLCW) Jean Hoff and Sharyl Wolf, Co-Presidents

Mission Purpose: F i r s t L u t h e r a n Church Women of the Evangelical Lutheran Church in A mer ic a - As a community of women created in the image of God, called to discipleship in Jesus

Christ, and empowered by the Holy Spirit, we commit ourselves to grow in faith, affirm our gifts, support one another in our callings, engage in ministry and action, and promote healing and wholeness in the church, the society and the world. As women of First Lutheran we meet to share and study the Word of God and support all women in prayer. Our actions and programs support and minister to numerous missions throughout our community and the world.

Major Accomplishments:• FLCW Co-President serves on the Church Council.• Spring cleaning of all church kitchens and along with Lutheran Men in Mission replenished silverware in the Reformation Hall kitchen.• Nine women represented FLCW at the Spring Conference of the Crossroads Conference at Canton Lutheran Church on April 16.• Hosted Union Gospel Mission Lamplighters Luncheon on May 20.• Sponsored two telecasts of First Lutheran worship services.• Served 40 funerals.• Collected school supplies and assembled 100 school kits for Lutheran World Relief refugee camps. Sent additional school supplies to Pine Ridge Indian Reservation.• Attended Women of the Evangelical Lutheran Church of America (WELCA) SD Synod Conference at First Lutheran Church in Mitchell on June 24 and 25. Arlene Bich, Sharyl Wolf and Jean Hoff attended.• Continued to pray for our prayer partners.• Planned and hosted the 80th annual Bazaar "Angels Among Us" honoring women who have been our examples and mentors to serve our God through service and missions. We thank the over 300 women, men, youth, staff and friends of First Lutheran for their hard work to make the Bazaar successful - Distributions to various missions as listed.• Continue to support Lutheran World Relief Fair Trade farmers by selling their coffee, tea and chocolate products.

• Presented quilts to all First Lutheran graduating high school seniors.• Made and sent to local and Lutheran World Relief missions: 803 quilts, 21 lap robes, 19 fabric kits, 41 personal care kits, and 50 layettes.• Hosted the following informational WELCA programs:

"Serving Veterans in Sioux Falls" by Adam Hanish, Vets Center "A Ministry of Hope" by Dan Bloch, Community Outreach."Reaching out to the Latino Community of Sioux Falls" by Pastor Jeanette McCormick, Pueblos de Dios. "Lutheran/Lakota Shared Ministries" by Pastor Kay Ressel, Pine Ridge Indian Reservation."A Quilting Story" by Pastor Becky Senner."An Introduction to the Fall Bible Study" by Pastor Lars Olson."Helping Hands for Haiti" by David Hansen."Putting Children's Needs First" by Carol Woltjer, Family Visitation Center."A Celebration of Our Savior's Birth in Song" by Willie Bertsch.

Goals:• Have a presence on the Church Council.• Invite all women of First Lutheran to support and participate in the mission and goals of FLCW.• Recruit and mentor women for leadership roles in FLCW.• Host the 2017 FLCW Bazaar.• Support the mission of the FLCW in prayer and action.

2016 Officers: Jean Hoff and Sharyl Wolf, Co-Presidents; Arlene Bich, Recording Secretary; Jeanne Buren, Financial Secretary; Connie Nelson, Treasurer

Jean Hoff Sharyl Wolf

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Distribution of 2016 FLCW Bazaar Funds

First LutheranCenter for Worship & Music . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Meals From The Heart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Parish Nurse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Sad Isn't Bad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $550 Seminary student – Jeff Backer . . . . . . . . . . . . . . . . . . . . . . . $1,500 Seminary student – Alex Clark . . . . . . . . . . . . . . . . . . . . . . . $1,500 Telecast - Mother's Day/Christmas . . . . . . . . . . . . . . . . . . . . $2,600 Youth Mission Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Youth Bible Camperships . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000

LocalUnion Gospel Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200 Bishop Dudley Hospitality House . . . . . . . . . . . . . . . . . . . . . $1,000 Destiny Outreach Clinic . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Family Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $750 Feeding South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Food To You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Glory House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $750 Healthy Rides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Interlakes Community Action . . . . . . . . . . . . . . . . . . . . . . . . . $500 Lunch Is Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Necessities for Neighbors . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500 Project Car . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000

Pueblo de Dios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500 St. Dysmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 St. Francis House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Sioux Falls Cares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Veterans Outreach Center . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000 Other Companion Synod - Cameroon & Nicaragua . . . . . . . . . . . . $2,000 Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000 Campus Ministry - USD . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Campus Ministry - SDSU . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Lutheran Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Lutheran Volunteer Corps . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Lutheran World Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000 Shetek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Helping Hands for Haiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Laura B. Anderson Elementary School Christmas Bags . . . . . . $300 Hope Secondary School (Jerusalem) . . . . . . . . . . . . . . . . . . . $1,000 Pineridge Retreat Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 Total Disbursed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$42,150

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,311.33*Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,732.31*Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,579.02** Some additional income and expenses outstanding.

Auxiliary: Lutheran Men in MissionOrrin Anderson, LMM President

The mission of Lutheran Men in Mission (LMM) is to be a resource of Physical Talents and Financial Aide to assist with the ministries and needs of First Lutheran Church.

During 2016 physical talents were used for a multitude of needs. Kitchen cleanup for events such as funeral receptions, the annual Bazaar, Wednesday Night Meals, and

monthly Senior Luncheons. Such events total in excess of 100 per year. Parking assistance is also provided for the annual Bazaar. In addition, the volunteers are called on for repairs and maintenance on the First Lutheran Church campus. In addition to small projects, major repairs in 2016 included counter top replacement in the Gathering Room kitchen, pulling approximately 4,000 feet of computer wire updating computer access to the youth offices, pastor’s offices, library and nursery. The most noticeable was the removal of, refinishing of, and reinstallation of the Tower Entrance doors.

Financial resources are generated by working the First Lutheran Church parking lots during special events downtown and at

the Washington Pavilion. Forty percent of funds generated by working the parking lots are deposited to accounts for maintenance of First Lutheran Church parking lots. Financial assistance in 2016 included: The Union Gospel Mission, silverware replacement in Reformation Hall, Capital Campaign for improvements to the First Lutheran Church campus, the Lutheran Social Services mentoring program, gift bags for students at Laura B. Anderson Elementary School, the Downtown Community Block Party, Center for Worship and Music Studies, plus reception costs and memorial for the family of Ethan McMahon.

Lutheran Men in Mission also sponsor two fun social golf outings each year.

If you are looking for a volunteer opportunity contact LMM Volunteers.

Officers of LMM: Orrin Anderson, President; Kenneth Kessinger, Vice President; Howard Bich, Secretary; Gerald Gackle, Treasurer; Larry Anderson and Norm Ekeland, Directors.

Orrin Anderson

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Parish StatisticsFor the Year Ending December 31, 2016 (Unaudited)

UnauditedDescription 2013 2014 2015 2016

PARISH STATISTICSRegular Member Giving

Pledge Responses 1,403,520$ 1,376,403$ 1,353,755$ 1,357,448$Non-Pledge Responses 121,893$ 212,108$ 200,955$ 160,839$Special Offerings 41,013$ 39,144$ 37,729$ 35,764$ Regular Member Giving 1,566,426$ 1,627,655$ 1,592,439$ 1,554,051$

Avg. Giving to General Offering/Confirmed Member 521$ 562$ 582$ 569$

DESIGNATED Member GivingCapital Campaign & God's Gifts. Our Responsibility 399,798$ 260,674$ 88,603$ 51,611$Outdoor Campus Appeal 201,037$Adult Disc / Library / Book Studies 1,096$ 15$ 640$Media Sponsorships/ Bulletins / First Word 78,235$ 73,454$ 81,847$ 72,054$Pastoral Care / Caring Ministry / Parish Nurse 2,925$ 3,780$ 6,215$ 893$Property / Archive / Vol Shop 1,611$ 1,931$ 6,184$ 2,945$Special Gifts 16,341$ 12,497$ 24,808$ 4,440$Worship & Music / Choirs / Organ / Piano 17,071$ 12,918$ 36,467$ 14,398$Youth / Children / Family 12,508$ 8,843$ 7,800$ 5,827$

Total Designated Member Giving 529,585$ 374,097$ 251,939$ 353,845$

Benevolence - Designated - Member GivingDisasters 3,246$ 1,744$ 3,615$ 4,207$FLC Seminary Students 679$ 7,750$ 9,727$ 3,807$Holiday Flowers (Easter / Christmas) 5,137$ 5,047$ 6,540$ 5,948$Missions Around the World 46,601$ 43,137$ 18,955$ 6,753$Missions In our Area 9,669$ 9,351$ 10,867$ 12,851$Missions Misc 18,143$ 17,295$ 11,576$ 10,682$

Total Benevolence - Designated-Member Giving 83,475$ 84,324$ 61,280$ 44,248$2,179,486$ 2,086,076$ 1,905,658$ 1,952,144$

Benevolence - Payments - Designated FundsIn our Area Benevolence 21,692$ 13,565$ 6,900$ 15,621$In our Area Benevolence (Capital Campaign) 46,125$ 22,151$ 13,182$ 21,492$Around the World Benevolence 72,996$ 36,895$ 33,856$ 37,710$Around the world Benevolence (Capital Campaign) 5,500$ 14,364$ 13,182$ -$Disaster Benevolence 3,796$ -$ 1,320$ 1,320$Congregational Benevolence (Camperships/Caring Min) 4,237$ 1,610$ 3,750$ 8,928$SD ELCA BenevolenceTotal Designated Benevolence Payments 154,346$ 88,585$ 72,191$ 85,071$

Benevolence - Payments - Budgeted FundsIn our area Benevolence 10,750$ 7,270$ 27,558$ 33,663$Around the World Benevolence 4,200$ 1,750$ 5,500$ 7,450$Congregational Benevolence (Camperships/Caring Min) 4,128$ 2,937$ 17,406$ 20,879$SD ELCA Benevolence 77,600$ 77,900$ 78,300$ 75,400$

Total Budgeted Benevolence Payments 96,678$ 89,857$ 128,764$ 137,392$

251,024$ 178,443$ 200,955$ 222,463$

Audited

Total Member Giving (Reg, Desig. & Benevolence)

Total Designated/ Budgeted Benevolence Payments

21

Parish Statistics (cont.)PARISH STATISTICS

2012 2013 2014 2015 2016Membership Baptized Members

Confirmed MembersHouseholds

429232202125

400930072014

366127591848

365827351831

365127311819

Members ReceivedBy Child BaptismBy Adult BaptismBy TransferBy AffirmationBy Reactivation/Statistical Readjustment

Members RemovedBy DeathBy Transfer/ReleaseBy Dismissal/Inactive Status

138385

325013

12342810

106404

39185

38950

110229

140432

354911

48856

190242

119360

254315

12246679

85332252239241492

Participation Average Weekly Worship AttendanceChurch School EnrollmentAverage Weekly Church School AttendanceConfirmation Enrollment

990260122133

960221106137

979249102169

909238104160

862310120107

Ministerial Acts BaptismsConfirmationsWeddingsFunerals

44302447

46252366

40252049

36311851

35331649

22

Statement of Assets, Liabilities and Fund Balances Cash Basis

UnauditedDescription 12/31/2014 12/31/2015 12/31/2016

ASSETSCurrent Assets

Cash 460,419$ 565,848$ 470,040$Assets Not Available for Current Needs

Cash 940,077$ 768,161$ 905,311$Certificates of Deposit 145,508$ 145,508$ 145,508$*Foundation 9,652,103$ 9,913,036$ 10,554,058Total Assets Not Available for Current Needs 10,737,688$ 10,826,705$ 12,074,917$

Fixed AssetsLand & Land Improvements 3,376,088$ 3,376,088$ 3,376,088$Buildings - Church & Parish Hall 8,788,969$ 8,788,969$ 8,713,969$Furniture, Fixtures & Equipment 2,213,667$ 2,434,441$ 2,434,441$Vehicles 50,349$ 50,349$ 50,349$Subtotal 14,429,073$ 14,649,847$ 14,574,846$Construction in ProgressAccumulated Depreciation (5,494,272)$ (5,864,036)$ (5,789,036)$Total 8,934,801$ 8,785,811$ 8,785,810$

Other AssetsDepositLand & Building Rental - net of accumulated deprStarbucks - Rental CommissionStarbucks - ImprovementsGain/Loss on Disposal of PropertyAccounts ReceivableTotal Other Assets -$ -$ -$

Total Assets 20,132,908$ 20,178,364$ 20,860,727$

LIABILITIES & NET ASSETSLiabilities

Accrued liabilities 511$ 139$Notes Payable Bank Real Estate Loan cc -$ -$ Contract For Deed - Ideal Party Store 467,070$ 422,524$ 374,377$Total Liabilities 467,581$ 422,663$ 374,377$

Net AssetsDesignated 23,911$ 23,911$ 23,911$Unrestricted 8,820,268$ 8,769,191$ 8,611,984$Temporarily Restricted 3,771,386$ 3,284,077$ 3,802,221$*Permanently Restricted 7,049,762$ 7,678,522$ 8,048,234$Total Net Assets 19,665,327$ 19,755,701$ 20,486,350$

Total Liabilities & Net Assets 20,132,908$ 20,178,364$ 20,860,727$*We are required by Federal Regulations & Audit Guidelines to include the First Lutheran Church Foundation on the First Lutheran Church Balance Sheet.

Audited

23

Statement of Revenues and Expenses

2015 2016 2016Description Actual Budget Actual Variance

REVENUESOfferings Pledge Responses 1,362,035$ 1,306,821$ 1,357,448$ 50,627$ Non-Pledge Responses 197,675$ 202,200$ 160,839$ (41,361)$ Special Offerings 37,729$ 38,000$ 35,764$ (2,236)$ Total Offerings 1,597,439$ 1,547,021$ 1,554,051$ 7,030$

Gifts Media $81,597 63,400$ $64,057 657$ Foundation $244,369 261,709$ $261,709 (0)$Total Gifts $325,966 325,109$ $325,765 656$

Other Income Fee Income $71,484 71,498$ $72,139 641$ Non-Budgeted Income $13,583 12,500$ $16,636 4,136$ Operating Reserve 62,000$ Total Other Income $85,067 145,998$ $88,775

Total Revenues $2,008,472 2,018,128$ $1,968,591 (49,537)$

EXPENSESAdult Discipleship $20,017 22,000$ $20,273 (1,727)$Youth & Family $52,215 55,000$ $55,029 29$ Evangelism, Mission & Outreach $105,062 110,000$ $110,421 421$Pastoral Care $5,525 6,000$ $6,762 762$Worship & Music $22,013 27,000$ $30,915 3,915$Media $76,727 77,500$ $79,893 2,393$Financial Services $88,446 94,436$ $93,434 (1,002)$Property & Administrative Serv $194,977 229,192$ $217,694 (11,498)$ Personnel/Council $1,334,311 1,390,000$ $1,360,759 (29,241)$Stewardship $6,266 7,000$ $7,774 774$Property Projects -$Total Expenses $1,905,559 2,018,128$ $1,982,956 (35,172)$Profit / Loss $102,913 ($14,364)

$2,008,472 $2,018,128 $1,968,591

For the Years Ending December 31, 2016 (Unaudited)

Net Revenues/(Expenses)

24

Statement of Loan Activity

For the Year Ending December 31, 2016 (Unaudited)Principal Interest Paid on

Description Payments Payments DebtDEBT SERVICE

Contract for Deed (Ideal Prop) 48,147$ 32,151$ 80,298$Total Debt Service 48,147$ 32,151$ 80,298$

12/31/2015 12/31/2016 Net Change toDEBT Balance Balance Debt - (Inc/Dec)

Contract for Deed (Ideal Prop) 422,524$ 374,377$ (48,147)$(Decrease)

Total Debt 422,524$ 374,377$ (48,147)$(Decrease)

25

Summary of Restricted Funds

For the Year Ending December 31, 2016 (Unaudited)

Description Beginning

Balance Cash Receipts

and Adjustment

Cash Disbursements

and AdjustmentsEnding Balance

RESTRICTED FUNDSTemporarily Restricted

General Operating Fund $278,737 102,736$ (135,894)$ 245,578$ (Prepaid Pledges)

Outdoor Campus Appeal 201,037$ (102,576)$ 98,461$God's Gift Our Responsibility $270,261 51,611$ (45,032)$ 276,839$

Designated Fund $497,900 913,449$ (881,339)$ 530,011$ (Totals of all Boards Designated)

Trust Fund $10,500 10,500$

Total Temporarily Restricted $1,057,398 $1,268,833 ($1,164,842) $1,161,389

Permanently RestrictedTrust Fund $135,008 -$ -$ 135,008$

Total Restricted Funds 1,192,406$ 1,268,833$ (1,164,842)$ 1,296,397$

26

Synodical Reports South Dakota Synod of the ELCA

27

Lutheran Social Services 2016 Report to congregations

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Charis Ministry Partners 2016 Report to Congregations

Charis Ministry Partners is in its seventh year as a public non-profit organization serving neighbors in need in the Sioux Falls area. All three ministries continue to grow in their capacity to serve the community of Sioux Falls, in large part because of the continued support of the Partner churches. Charis Ministry welcomed Westside Lutheran into the partnership this year, expanding our partnership from 12 to 13. A board made up of a representative of each of the member congregations meets every other month to oversee this unique shared servant ministry. Nicholas Welder continues in his role as Director, both supporting Food to You as the Coordinator and representing Charis to the community and Partner churches.

The Food to You Mobile Food Pantry has provided 25-35 lbs. of groceries and hygiene items to an average of 85 families each week. The highest number of households served at a distribution was 115 in August at East Side Lutheran. There were 48 distributions at four sites in a monthly rotation – East Side, Messiah New Hope, Augustana, and St. John Lutheran Church. The households served during 2016 totaled 4,066 with 756 of them (18%) being newcomers. 65 to 75% of the families served included children and 10-20% include senior citizens.

Charis Ministry Partner congregations sponsored/volunteered for 27 of the 48 FTY distributions in 2016. The other distributions were served, and sponsored, by eight non-Charis congregations (both ELCA and other denominations), seven businesses, three service groups, a USD student group, a local school staff, and friends and family of Food to You. POET once again blessed FTY with fresh produce from their community garden, which they donated each Thursday in July-September. The Bread Break ministry out of Messiah New Hope continues to be a major blessing for FTY, allowing the use of their van on a weekly basis for transportation of goods, as well as fresh baked goods. Special donations from Bread Break included Panera Bread, Breadico, Breadsmith Bread, and Einstein Bagels. Feeding South Dakota continues to be a partner with FTY, supplying us with produce, breads, pastries, and assorted frozen foods. Often they will offer special items such as watermelon, turkey, or ham at a reduced handling cost. Food to You offered out over 117,900 pounds of product, not including those items donated by the Partner churches and outside sources.

For 2017, the Charis Ministry Partner Board continues to suggest that Charis congregations serve at least two distributions throughout the year.

The Necessities for Neighbors servant ministry continues to see an increased need of necessity items for our families in the Sioux Falls region. Through generous donations of money, equipment and products an average of 330 families, up nearly 30 families per distribution compared to 2015, were served each month; the largest distribution being in August with a record number of 404 families served. Guest households received these household products the first Sunday of each month at 3 p.m.: laundry soap, diapers, feminine hygiene products, and toilet paper.

Sister Charis Ministry Partner congregations have helped in many ways either by financial or product donation and helping on site at some of our distributions. All Charis churches are encouraged to sponsor 1 distribution during the year. Please contact Jackie Bailey at Peace Lutheran to discuss a sponsorship.

Healthy Rides, the medical transportation ministry of Charis Ministry Partners, furnishes rides in partnership with Project Car to health-related appointments for those who have no means of getting there. Because of Healthy Rides, people in need have been able to get to physical therapy after surgery; others were able to make it to preventative care appointments for mammograms and colonoscopies; still others were able to keep seeing their mental health provider. This would not have happened without this caring transportation ministry.

In 2016 Healthy Rides provided a little over 55 round trip rides each month. The cost of each ride through Project Car has increased to $11 due to cost of insurance, gas, and maintenance of the vehicles.

Recipients of this service are referred by certain agencies and clinics as well as Charis member congregations that have designated a referring parish nurse or other responsible person. Healthy Rides continues to grow and be effective because of all who are partners either through their donations or by encouraging members to become volunteer drivers for Project CAR.

Charis Ministry Partner Congregations: Augustana, Our Savior’s, East Side, Messiah New Hope, First, Peace, Gloria Dei, Renner, Grace, Spirit of Joy, Holy Cross, St. John and Westside.

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Thanks and Blessings: Many thanks and blessings go out to all Charis Ministry Partner congregations and their members and friends who make this unique non-profit ministry possible by providing board members, regular financial support, donations of food and hygiene items, volunteer drivers, sponsoring/volunteering for distributions, prayer support, and so much more. As always special thanks goes to East Side Lutheran Church for providing office and storage space for Food to You and to Peace Lutheran for handling Charis’ personnel financial services.

The combination of income from those groups sponsoring a Food to You distribution, plus supporting gifts from Charis churches and other individuals and groups was strong yet again. A big thank you to Sammon’s Financial that donated $7,500 to Food to You and will be sponsoring a distribution in 2017.

The blessings from the Charis members, and the many friends of Food to You and Necessities for Neighbors, continues to have a

major effect on the ministry and allows us to show the strength and love of Christ through His church. Thank you to all those that have contributed in some way throughout 2016.

Together we work to fulfill Christ’s commandment to love our neighbors as we love ourselves. May God bless Charis Ministry, the Charis members, and all those we will serve throughout 2017.

Nicholas WelderDirector, Charis Ministry Partners

Dan Paulson, Grace Lutheran ChurchChair, Charis Ministry Partners Board

Charis Ministry Partners 2016 Report to congregations (cont.)