Presentation Transcript

1. PILLARSCAMPAIGN

   Positioning Ourselves For The Future
2. History CUMC before New Hope: Central Methodist Church was built in 1909 (dedicated in 1916). It is located at Third and Elm Streets in Downtown Rogers across from the old Rogers City Hall. In 1968 it officially became Central United Methodist Church. It is interesting to note that the first Methodist group to form in Rogers after the Civil War met in area around New Hope Road and Highway 71 in a community called New Hope. Arriving at New Hope: In the early 1990’s it was discussed whether to add onto the current building or purchase real estate to move to a new building. The congregation voted to move and 30 acres was purchased on New Hope Road. Part of the congregation purchased the downtown facility which became First United Methodist Church. So from the original church downtown two congregations were formed. Ground was broken for our new facility in August 1994 and the church congregation moved into our current location in 1997. Since Arriving at New Hope: The first phase of the building project started with a capital campaign in 1993 with a cost of $6,600,000.00 (including land purchase and the building). In 2000 a shell area was finished out which cost an additional $400,000.00 and in 2006 the second phase (south part of the current building) was finished with a cost of $7,600,000.00. It was necessary to keep adding onto the church as we ran out of room and needed more facility space for our current congregation of 1721.
3. Building Campaign History # Of Amount Amount Years Description Pledges Pledged Contributed 93-95 Blessed to be a Blessing **est. $ 3,500,000 $ 3,474,000 95-98 Offering New Hope (Cont. Phase I) 187 $ 1,858,970 $ 1,784,465 98-01 Debt Reduction 212 $ 1,384,784 $ 1,189,159 2000 Shell Area 35 $ 315,700 $ 395,831 01-03 Operation Pay Down 49 $ 91,199 $ 233,983 2004 No campaign $ 15,520 05-07 Building on the Faith (Phase II Bldg) 230 $ 2,575,969 $ 2,243,900 08-10 Journey to the Heart 191 $ 1,930,706 $ 1,539,842 Journey to the Heart 2011 2011 119 $ 295,048 $ 280,599 TOTALS 93.35% $ 11,952,376 $ 11,157,299
4. Building Cost History
5. Summary
6. Current Loan Detail Current loans: Loan 1: $3 million at 6.47%interest only- Matures May 2013. Quarterly payments. Loan 2: $3.9 million at 4%, approximately 30 year amortization- Matures May 2013 Semi-annual payments
7. Stay Current Course No additional expansions, build-outs and improvements to 15 year old building
8. Goal of Pillar Campaign Refinance Current Debt: Opportunity to refinance current debt into one loan with approximate interest rate of 4%. Would require us to put the new loan on a 20 year amortization and pay our payments on a monthly basis instead of a semiannual and quarterly basis. Pay down to Establish Equity: Require us to pay our current debt down by $1 million dollars to get our total building debt down to $5,900,000 which will put our debt coverage ratio (ability to service debt/interest from current income) at an acceptable level (1.25) for a bank to extend aggressive interest rate and refinance the church. We have a commitment from a local bank to refinance the debt once this happens. Goal: To raise $1.0 million. $1 million for principal pay down immediately.
9. New Course for a Better Future
10. CUMC Building Loan & Operating Financial Condition
11. Overview of 2012 Financial Operations 2012 Budget Annual Operating Income Budget - $1,361,143 2012 YTD Operating Income (6/30/12) - $600,206.21 2012 YTD Operating Expense (6/30/12) – ($570,692.22) 2012 YTD Operating Income (6/30/12) - $29,513.99
12. 2012 Operations vs. 2011 Operations(YTD – 6/30) 2012 2011 Operating Income – $606,336.31 Operating Expense – ($619,039.99) Operating Income – ($12,703.68) Operating Income – $600,206.21 Operating Expense – ($570,692.22) Operating Income – $29,513.99
13. Overview of 2012 Financial Operations Contributions & Income: Pledged Giving - $427,683.16 Non-Pledged Giving - $161,455.57 Other Income - $11,067.48 Total YTD (6/30/12) - $600,206.21
14. Overview of 2012 Financial Operations Operating Expenses: Apportionments - $ 0.00 Building Admn. - $ 158,863.59 Office & Tech Support - $18,099.64 Program Ministries - $31,477.44 SPR - $362,251.55 Total YTD Operating Expense - $570,692.22 (6/30/12)
15. Historical Apportionment Expense Apportionment Due Apportionment Paid 2008 - $64,476 (35%) 2009 - $152,582 (81%) 2010 - $179,899 (100%) 2011 - $191,609 (100%) 2008 - $185,700 2009 - $188,635 2010- $179,899 2011 - $191,609
16. CUMC Building Income 2008-2010 Average yearly 2011 2012 Building Income- $104,416 Building Expense – ($196,254) Building Grand Total –($91,838) Building Income - $485,483 Building Expense – ($506,608) Building Grand Total – ($21,125) Building Income - $337,377 Building Expense – ($406,397) Building Grand Total – ($69,020)
17. Benefits of Loan Pay Down Ministry- By reducing our debt burden and obtaining a lower interest rate we will be able to devote a larger share of our revenue to the ministries that further our mission of Connecting People to Christ. Principle Reduction- With our current loans we see very little principal reduction. Most of our payment is going to interest. After 7 years we could see our loan balance shrink by approximately $1.6 million ($2.6 million if you include the $1 million pay down) which would greatly relieve our debt burden on our facility. Cash Flow- Since we would be paying down the existing debt by $1 million our cash flow would stay approximately the same but a much greater reduction in principal will be made on the loan. Reduced Interest- Average interest per year on current loan is $340,000 while average interest on proposed new loan would be $207,000 per year. Amounts to a savings of over $900,000 over 7 years. Build outs- We are committed to only use the funds raised in this campaign to pay down principal. The only other item we will spend the funds on is a build out of a small room (room 107) by the choir rooms which should be less than $50,000 to finish this room.
18. How Do YOU Help Make This Happen? Goal- $1 million in funds raised now not pledged. Timing- Now. With interest rates at historic lows we can’t afford to pass up this opportunity. Giving Options - Cash, Stock, Life Insurance and other Investments. Next Step - Commit to help the church pay down the building debt and help refinance our loans. Continue with or join in our Journey to the Heart campaign with a yearly pledge to continue paying our current loan obligations. Prepare for a formal building campaign in 2013.