St Paul United Methodist Church

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

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

3. 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 Informational Meeting

4. 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 Informational Meeting

5. The Faith Works! Video Informational Meeting

6. The Building Approval ProcessUMC 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) Informational Meeting

7. 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 Informational Meeting

8. 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 Informational Meeting

9. 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 Informational Meeting

10. 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 Informational Meeting

11. The Building Plans the Sanctuary (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 Informational Meeting

12. 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 Informational Meeting

13. Cost and Accountability • Cost Estimate • Building costs; $2,625K • Site work; $ 690K Total; $3,315K • Financial Planning based on; $3.3M - $550K (Bubb2) = $2.75M Informational Meeting

14. 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 Informational Meeting

15. 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) Informational Meeting

16. 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) Informational Meeting

17. 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 Informational Meeting

18. 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; $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 Informational Meeting

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

20. 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 Informational Meeting

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

22. Questions & Answers Informational Meeting

23. Questions • 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 Informational Meeting

24. 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 Informational Meeting

25. 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 $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 Informational Meeting

26. 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) Informational Meeting

27. Back up Charts Informational Meeting

28. Informational Meeting

29. 2007 Apportionments District Add’l $21.1K Informational Meeting

30. Conference Apportionment Formula Informational Meeting

31. Called Charge Conference MinutesJune 27, 2006 (Excerpt) Informational Meeting