Now Finish the Work Campaign: Frequently Asked Questions
Q. Why are we having another capital campaign?
A. To pay off the indebtedness from the new CE building and Campus Renovation project ($3.27 million) completed in 2005, the remaining balance from the loan for the Sanctuary Renovation project ($0.26 million) completed in 2003 and the remaining balance from the original loan for the Church Life Center project ($0.87 Million) completed in 1989.
Q. But didn’t we do all that three years ago?
A. Yes, we made a good start with the campaign, entitled “Compelled by Grace,” which raised pledges of a little over $2 million for the New CE Building and Campus Renovation Project estimated to cost in the range of $4.8 million. You’ll remember that at that time we voted as a congregation to proceed, on the basis that multiple campaigns at 3 years increments would be required until we paid the total indebtedness.
Q. And what was the result of the “Compelled by Grace” campaign?
A. Through this May, the end of “Compelled by Grace,” the Church will receive about $1.67 million, or about 80% of the pledged amount.
Q. So what’s left to pay?
A. Once one adds in the remaining loan balance of the sanctuary renovation program (remember “black mold?”), and the remaining mortgage on the Church Life Center, our total indebtedness was over $6 million. Subtracting pledges received, insurance funds received for the Old CE Building, and payments made out of the general operating fund, our new bank loan, as of last September, was $4.4 million. We’ve paid down a bit of the principal since.
Q. What will it take to pay it off in 10 years?
A. Monthly payments of $53,400, an amount equal to about 45% of our current operating budget. Our goal is to realize pledges of about $60,000 per month. By paying it off in 10 years, we save approximately $2.4 million in interest alone versus paying it off over the 20 year time frame.
Q. What happens if we don’t collect this much?
A. Just like your house mortgage, we will have to extend the time of the note and pay a lot more interest. Based on our current 20 year schedule, we would pay back to the bank about $8.8 million, or about twice what we borrowed.
Q. And what if we didn’t have a campaign at all?
A. We still have to make the minimum monthly payment based on the 20 year amortization period which will be approximately $36,800 per month. This would have to come out of our general operating budget. Based on the current level of congregational giving, this would mean severe cuts in the church programs and staffing through which we are committed to share God’s love with others.
Q. So what is my “portion”?
A. That’s between you, your family and God. To meet the 10-year payment plan, each giving unit (i.e., usually a family) will on average need to contribute an amount equal to about 45% of what they give to the operating budget. However averages are deceptive because every person and family is different. Some might feel honestly guided to give less, while for others, the only faithful response to God will be to give much more. We urge each individual and family to prayerfully consider the faith-full part only you can play in what God is doing in and through Clear Lake Presbyterian Church. Our prayer is that in all we do, we may be outrageously faithful!
May 12, 2006
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