Saint Mark Mortgage Funding Dilemma
Frequently Asked Questions
Is this our annual Stewardship campaign for the operating budget?
NO!! Our annual Stewardship campaign to support the budget which pays for all the things we enjoy at Saint Mark is scheduled for later this fall. We must support BOTH campaigns to be a fruitful church.
So, what is the problem?
Within the next few months we face a huge additional budget expense when our Capital Campaign Funds are depleted, because this Fund is presently paying what we are calling our “2008 Mortgage.”
What is the “2008 Mortgage” for?
The major work we accomplished with that project:
· Construction of the Youth Center and Commons Room Annex
· re-modeling of the Choir Suite
· re-modeling of the Sanctuary; and
· construction of the Narthex.
When will this new expense addition happen?
We will have to begin paying it through our regular budget when the Capital Campaign Fund is depleted, which will be around the end of this year. So we have to budget for that in our 2011 Budget.
How much is that annual cost?
The “2008 Mortgage” payments are about $152,100 per year. The Capital Campaign Funds so generously given have been covering this so far.
Don’t we have another building mortgage – How much is it?
Yes, the 1995 Mortgage (for the Saint Mark Center/atrium). The remaining balance is $360,000 (or $98,500 in annual mortgage payments).
Then how much is our total annual mortgage payment?
$98,500 (1995) + $152,100 (2008) = $250,600
So, the problem is that together they make our budget unrealistically high?
Yes, the fact is simply that without a huge (17%) increase in our regular giving, our budget cannot absorb the additional $152,000 mortgage payment.
Other than raising our giving, what are our choices?
A. Reduce our budget expenses to the level of our giving. Unless giving increases significantly, following this course would have to involve reductions in one or more of the following: Staff; Staff Insurance; Conference Apportionment Payments, and/or the Child Development Center since the other budget areas are too small to compensate.
B. Re-tire/Pay-off the 1995 Mortgage, leaving only the 2008 mortgage.
So, there would be a huge advantage in paying off the “old mortgage”?
Yes, there would be three huge advantages:
1) Our annual budget would be lower;
2) We would save a huge amount of interest payments over the life of the loan; and
3) We would have earned a huge celebration in making a dream come true!!
HOW DO WE GO ABOUT DOING THIS?
Our Council of Stewards is initiating a 1995 MORTGAGE ELIMINATION CAMPAIGN called ”IGNITE THE NOTE”, so named to suggest burning that note for good!
What is involved in” IGNITE THE NOTE”?
Led by the Stewardship/Finance Committee and the Council of Stewards, we would seek to raise enough in funds to PAY OFF THE REMAINING BALANCE OF THE 1995 SAINT MARK CENTER DEBT.
And how much is that?
Around $360,000.
What is the timetable?
The depletion of the Capital Campaign Fund toward the end of the year is the determining factor. So, we would set a date in November for the funds to be in hand.
So, it’s not a pledging campaign like we’ve had before?
Not really. We must either pay off the loan or put it into our 2011 Budget.
What happens if we raise only part of the $360,000 goal?
Our mortgage holder has agreed to adjust our monthly payments accordingly. However, other budget items may still need to be cut or reduced.
Will there be another Capital Campaign in the future?
Not until we grow to the point of needing another expansion or remodel. Our window of opportunity is in the next few months!!!!!
* * *
And, now, another question:
If you could, would you really vote to go back and NOT have remodeled and updated our Sanctuary, and NOT built our Youth Center and Commons Room, and NOT updated and expanded our Choir Room, and NOT built the Narthex?
And NOT have moved out in faith?
Thank you for helping make possible an IGNITE THE NOTE
CELEBRATION in December!!!!!
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