Feb 27, 2007 Informational Meeting 1 St Paul United Methodist Church Faith Works! “Building for Christ’s Ministry” Informational Meeting February 27, 2007

Feb 27, 2007 Informational Meeting 1

St Paul United Methodist St Paul United Methodist ChurchChurch

Faith Works! “Building for Christ’s Ministry”

Informational Meeting

February 27, 2007


AgendaAgenda

• History of the Faith Works! campaign

• The Faith Works! video

• The Building approval process

• The Building plans

• The Financial plan

• Q&A


History of the Faith Works History of the Faith Works CampaignCampaign

• Future Search Process• Future Ministry Retreat / Fair• Building and Grounds Study

Committee– Ministry team needs survey– Community growth projections– Current facilities nearing capacity

• Building Committee Formed• Preliminary building plans


Demographic and Trend Analysis Demographic and Trend Analysis --

Building Study Committee Report Building Study Committee Report 20022002

• Population of PWC increased 30.6% from 1990 and 2000 - 280,813

• County projects 328,400 by 2005; 363,300 by 2010 and 384,300 by 2015

• Within 5 miles of St Paul additional 3000 housing units planned over next 5-10 yrs

• Conversion of commercial property to high density residential


The Faith Works! VideoThe Faith Works! Video


The Building Approval The Building Approval ProcessProcess

UMC Book of DisciplineUMC Book of Discipline• 2543.6

– Preliminary architectural plan– Preliminary cost estimate– Preliminary financial plan– Building committee recommendation

• 2543.7 – Develop detailed plans and specifications– Secure a reliable and detailed cost estimate– Get approval from the Charge Conference and

District Committee on Buildings and Location• 2543.8

– With approval, project can begin if 2543.11 has been met (loan is secured so bills can be paid as they come in)


The Building Approval The Building Approval ProcessProcess

• Admin Board vote on Building Committee recommendation of preliminary building plan and financial plan (5/17/05) approved

• District Committee of Buildings and Location (5/25/05) approved

• Church Conference to approve financial plan (5/31/05) approved

• Development of detailed drawings, permitting and financial arrangements

• District Committee of Buildings and Location (6/21/06) approved

• Charge Conference to approve drawings, building plans and financial plan (6/27/06) approved


The Building PlansThe Building Plans• 43% increase in space—additional

14,060 sq ft• Fellowship Hall increases by 2000 sq ft• Enlarged Kitchen• Update and expand restrooms

including accessibility• Elevator and locations of classrooms

greatly enhance building’s accessibility


The Building Plans The Building Plans (continued)(continued)

• Nursery close to sanctuary; • Drive-through entrance at

chapel door;• Centralized offices for

administration/pastors• Enhanced music office, choir

room and storage


The Building Plans The Building Plans (continued)(continued)

• Preschool/toddler wing with water and toilet between two rooms (code)

• Outside exits for selected preschool rooms

• 7 New classrooms• Preschool office• Updated parking lot design (lighting

and curbing) • Sprinkler system for new construction


The Building Plans The Building Plans the Sanctuary the Sanctuary (continued)(continued)

• Chancel renovation • Rough-in for future sound and

audio visual systems • Extended platform area; for choir,

pulpit, lectern, piano• Permanent Bell tables• Removes 3 rows of pews• Removable communion rails


Current Implementation Current Implementation PlanPlan

• Start with; Site work– Parking lots, storm water

management, sidewalks and curbing• Transition into Building expansion

– Fellowship Hall, kitchen, restrooms, and elevator

• Renovations– Classrooms, sanctuary, and offices


Cost and AccountabilityCost and Accountability

• Cost Estimate– Building costs; $2,625K– Site work; $ 690K Total; $3,315K

• Financial Planning based on; $3.3M - $550K (Bubb2) =

$2.75M



• Building Committee aggressively managing project cost growth

• Sources of cost growth include:– Inflation over time– County approvals (ie, firewalls &

sprinkler system)– Detailed designs and revised

estimates



• Building Committee Trade-offs to control costs– No third floor above Fellowship Hall– Consolidated staff offices built in old

Fellowship Hall– Pre-school rooms will share

restrooms (one restroom / two classrooms)

– Pre-school exits reduced (only for 2 ½ year old classrooms)


The Financial PlanThe Financial Plan

• Faith Works! Capital Campaign– Planned series of 5 three-year

campaigns– First Campaign kicked off Oct 2004– Pledges totaled $869,265– Collected to date; $529,517 (thru Jan)

• Sale of Bubb 2 Property • Bank Loan (15 year mortgage)


The Financial Plan The Financial Plan Sale of Bubb 2 Sale of Bubb 2

• Bubb 2 property; – Roughly 2.5 acres– Zoned for single family development– Property includes one house

• Current mortgage: $172,000• Remaining proceeds to reduce

bank loan; $550,000• Current status: Sales offer

pending


The Financial Plan The Financial Plan Bank Loan Bank Loan

• 15 year Mortgage• Amortized based on 30 year schedule

– Interest will be calculated at 7.875% fixed for 10 years, with the rate adjusting to the 5-year US Treasury plus 2.625% in year 11

• Estimated loan amount; $3M• Repayment (estimated)

– Monthly payments (30 yr); $21,752– Monthly payments (15 yr); $28,455– Monthly payments (30 yr); $19,939 with $2.75M loan– Monthly payments (15 yr); $26,083 with $2.75M loan


The Financial Plan The Financial Plan Current Status - Faith Current Status - Faith

Works!Works! • Bank Loan Closing; Pending Church

Conference vote to proceed• Faith Works! Pledges $869,264 (1st

campaign)

• Faith Works! giving; (through Jan 07)

2004 $ 22,4412005 $251,3302006 $247,2662007 $ 8,480Total $529,517 Avg mthly $21,181


The Financial Plan The Financial Plan Current Status - General Current Status - General

FundFund• General Fund giving year to date;

– $54,201 Average monthly giving to date

– $55,384 Average monthly giving required to meet 2007 General Fund “Operating” Budget = $1,183 shortfall

– $66,677 Average monthly giving required to meet 2007 General Fund Budget (includes all apportionments) = $12,476 shortfall


Pending DecisionPending Decision

• Proceed with program as planned

• Do not proceed with building program– Options may include:

•Stop entirely•Delay start•Pursue reduced scope program


Questions & AnswersQuestions & Answers


QuestionsQuestions• Could the building project be re-

structured, re-phased or re-defined?– Yes, options include;

• Multi-phased building program• Selected sub-set of current plan

– Impacts• Increased total project costs• Potentially voids current approvals (county,

local church, district, and bank)• Changing scope of project could impact FW

pledges • Additional delay as approval process starts over


QuestionsQuestions• What are we going to do about

the current facility? (cleanliness, paint, repairs)– Trustees issues in constrained

“facility unscheduled maintenance” budget

– Maintenance items deferred • to conserve budget •Pending direct or indirect impacts

from the building program


QuestionsQuestions• How can we afford this effort and

maintain vital ministries?– Attendance is down / giving is down.– Projected shortfall with current (2007) General

Fund budget is roughly $150K– However, Faith Works! contributions have

remained relatively steady while attendance has declined

– Average monthly Faith Works! contributions to date are sufficient to cover the 30 year amortized monthly payments (assuming $2.75M loan)

– Generally accepted statistic that building programs draw new members and recover inactive members


QuestionsQuestions

• What if we delay implementation? – The Special Use Permit (SUP) was

approved by the county in Feb 2005– Generally; the SUP remains valid as long

as we proceed in time to secure the Occupancy Permit before Feb 2010

– Architectural plans should remain valid– Building costs will increase– Re-apply for bank loan (terms TBD)


Back up ChartsBack up Charts



2007 Apportionments2007 Apportionments

DistrictAdd’l $21.1K


Conference Conference Apportionment FormulaApportionment Formula


Called Charge Conference MinutesJune 27, 2006 (Excerpt)

Ellis Hawkins, Chairman of the Building Committee, gave a detailed presentation on the background, building design, financial plan, and timeline for the new building and renovation plan. Tom Corcoran, Finance Chairman, followed with a discussion of the Capital Campaigns, sale of Bubb 2 property, and proposed bank loans. There was much discussion following the presentation. Rev. Callis then called for a vote. Ellis Hawkins presented a motion for approval of final detail building plans at a cost of $3.25 million dollars (building: $2.55 million; site: $700,000), financed by the sale of the Bubb 2 property, and a bank mortgage loan not to exceed $3 million dollars (amortized over 30 years, due in 15 years, interest rate of 7.875% fixed for 10 years, with the rate adjusting to the 5 year U.S. Treasury Note plus 2.625% in year 11), supported by a series of 3 year capital campaigns. The motion was approved by a vote of 26 in favor, 8 opposed. Anticipated ground breaking is October 2006.

Documents

Feb 27, 2007 Informational Meeting 1 St Paul United Methodist Church Faith Works! “Building for Christ’s Ministry” Informational Meeting February 27, 2007