St Paul United Methodist Church Faith Works Building

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

Agenda • • • History of the Faith Works! campaign The Faith Works! video The Building approval process The Building plans The Financial plan Q&A Feb 27, 2007 Informational Meeting 2

History of the Faith Works Campaign • 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 Feb 27, 2007 Informational Meeting 3

Demographic and Trend Analysis Building Study Committee Report 2002 • 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 Feb 27, 2007 Informational Meeting 4

The Faith Works! Video Feb 27, 2007 Informational Meeting 5

The Building Approval Process UMC 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) Feb 27, 2007 Informational Meeting 6

The Building Approval Process • 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 Feb 27, 2007 Informational Meeting 7

The 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 Feb 27, 2007 Informational Meeting 8

The Building Plans (continued) • Nursery close to sanctuary; • Drive-through entrance at chapel door; • Centralized offices for administration/pastors • Enhanced music office, choir room and storage Feb 27, 2007 Informational Meeting 9

The Building Plans (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 Feb 27, 2007 Informational Meeting 10

The Building Plans the Sanctuary (continued) • Chancel renovation • Rough-in for future sound audio visual systems • Extended platform area; for choir, pulpit, lectern, piano • Permanent Bell tables • Removes 3 rows of pews • Removable communion rails Feb 27, 2007 Informational Meeting 11

Current Implementation Plan • 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 Feb 27, 2007 Informational Meeting 12

Cost and Accountability • Cost Estimate – Building costs; – Site work; Total; $2, 625 K $ 690 K $3, 315 K • Financial Planning based on; $3. 3 M - $550 K (Bubb 2) = $2. 75 M Feb 27, 2007 Informational Meeting 13

Cost and Accountability • 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 Feb 27, 2007 Informational Meeting 14

Cost and Accountability • 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) Feb 27, 2007 Informational Meeting 15

The 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) Feb 27, 2007 Informational Meeting 16

The Financial Plan 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 Feb 27, 2007 Informational Meeting 17

The Financial Plan 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; $3 M • Repayment (estimated) – – Monthly payments (30 yr); $21, 752 Monthly payments (15 yr); $28, 455 Monthly payments (30 yr); $19, 939 with $2. 75 M loan Monthly payments (15 yr); $26, 083 with $2. 75 M loan Feb 27, 2007 Informational Meeting 18

The Financial Plan Current Status - Faith Works! • Bank Loan Closing; Pending Church Conference vote to proceed • Faith Works! Pledges $869, 264 (1 st campaign) • Faith Works! giving; (through Jan 07) 2004 2005 2006 2007 Total Avg mthly Feb 27, 2007 $ 22, 441 $251, 330 $247, 266 $ 8, 480 $529, 517 $21, 181 Informational Meeting 19

The Financial Plan Current Status - General Fund • 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 Feb 27, 2007 Informational Meeting 20

Pending Decision • Proceed with program as planned • Do not proceed with building program – Options may include: • Stop entirely • Delay start • Pursue reduced scope program Feb 27, 2007 Informational Meeting 21

Questions & Answers Feb 27, 2007 Informational Meeting 22

Questions • Could the building project be restructured, 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 Feb 27, 2007 Informational Meeting 23

Questions • 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 Feb 27, 2007 Informational Meeting 24

Questions • 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 $150 K – 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. 75 M loan) – Generally accepted statistic that building programs draw new members and recover inactive members Feb 27, 2007 Informational Meeting 25

Questions • 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) Feb 27, 2007 Informational Meeting 26

Back up Charts Feb 27, 2007 Informational Meeting 27

Feb 27, 2007 Informational Meeting 28

2007 Apportionments District Add’l $21. 1 K Feb 27, 2007 Informational Meeting 29

Conference Apportionment Formula Feb 27, 2007 Informational Meeting 30

Called Charge Conference Minutes June 27, 2006 (Excerpt) Feb 27, 2007 Informational Meeting 31