THE LAST WORD

More Information on the Facilities Enhancement Proposal

The elders have put forward a proposal to amend our 2009 budget to launch a facilities enhancement project. I wanted to give more information about exactly what this project would accomplish, and, with the Lord's help, how it will be done. The following are the specific enhancements planned, ordered by priority:

Carpet Replacement. Our current carpet is middle-to-low-end carpeting installed almost a decade ago now. As you can tell it hasn't held up terribly well under the onslaught of adult's coffee and children's activities. We are looking at a much higher grade of carpeting that will resist coffee stains etc., and also goes down in squares for easier maintenance. The approximate cost of this project will be $26,000.

Rear Sanctuary Wall Renovation. The wall between the sanctuary and the classroom to the north (which did not exist in the original design of the building) will be replaced with a soundproof partition in order to open up that room to the sanctuary (similar to the way the east and west wings are currently opened) – which will provide seating for worship overflow and special events. It will also improve the logistics for Awana and classes (right now there are acoustics issues in this room which make using it and the sanctuary together difficult for everyone). The approximate cost of this project is $14,000.

Front Stage Renovation. The front stage is currently set in ascending levels in order to accommodate a nonfunctional concrete baptismal below the stage. This baptismal will be removed and the stage renovated to a single level, which will create greater flexibility for worship setup. A second part of this project, funds permitting, is to cut a channel in the concrete running from sound booth to stage, for sound conduit. Right now, wiring between the sound booth and stage runs through the attic, making maintenance difficult and expense and impacting sound quality. The approximate cost of this project is $5,000 and also includes ensuring the back room is adequately sound amplified for overflow.

We are currently getting final hard costs for all these projects, but with sales tax, the total should come in at slightly less than $50,000. These are our top three priorities and should be done more or less simultaneously to leverage the carpet replacement.

There are a number of other smaller projects which we would like to accomplish if time and funds were available -- replacing high window blinds with window tinting; replacing stage and sanctuary lighting with higher efficiency, brighter and longer lasting LED bulbs; and resurfacing the sound absorbent panels for better aesthetics. Eventually we would also like to tackle a kitchen remodel, but unlike these smaller projects the cost of that (approximatley $20,000) places it currently out of reach.

In order to fund the top three projects mentioned above, the elders have recommended obtaining a $50,000 line of credit, which we would consider a ceiling for this phase. This is available to us (unsecured) from a Christian organization which offers credit for capital improvement projects only. The loan would be repaid on a 10-year schedule at a fixed interest rate of 6.25%, with no prepayment penalty. The payment (about $550/month) would be well within our means as a church. (Our current surplus over budget is at least $900/month.)

This is a similar method of capital improvement that we have utilized for other projects, such as obtaining the youth house property and paving the parking lot (which were accomplished via a renegotiation of our mortgage). Our church has more than adequate asset-to-debt ratio and a demonstrated capacity to service this capital debt, making this method of improvement both wise and prudent.

While none have questioned the need for these enhancements, some have asked about other options for providing the funds. We currently have a bank surplus of approximately $60,000 and could theoretically pay cash for these improvements. However, the Stewardship Team has recommended maintaining a cash operating buffer of approximately $30,000 minimum, which we agree is wise particularly during these uncertain financial times. In addition, 2010 ministry proposals currently under study would require an additional $20,000 of the surplus. We could not, therefore, pay more than $10,000 for these enhancements out of our cash surplus without endangering this operating buffer and 2010 plans.

An additional option is a capital campaign designed to raise the funds (over and above regular giving) prior to starting these projects. The elders oppose this option for two reasons. First, our membership has already demonstrated its faithful commitment to regular tithes and offerings, which we feel are and should be sufficient to cover these types of capital improvements. Second, due to recent growth in our congregation and the urgent need for these improvements, the delay that would be introduced by such a campaign (which could be several years) we consider less than ideal.

It is possible that the capital improvements we are proposing could be financed through some combination of the above options. However, the elders' recommendation for the surest way to accomplish this project quickly and with a minimum of disruption is to take advantage of the current opportunity to acquire the $50,000 line of credit to finance these improvements.

We look forward to discussing our thinking and these options with you further, and seeking to answer any questions you might have, during an informational meeting which has been scheduled for next Wednesday evening, July 8, at 7:00 p.m. at the church. Then the vote to amend the budget, secure the loan and start this project has been scheduled by special congregational business meeting following worship on Sunday morning, July 12. It is important that all members either attend this meeting to vote; or if you have plans to be out of town, please see Bill Parsons for an absentee ballot.

In Christ's service,

Larry Short, Chairman
Steve Kearns, Vice Chairman
Ralph Hirschfelder, Secretary
Martin Schlomer, Brian Sharpe, Gordy McCoy, Bill Parsons