Dear people of God:
You may wonder why we are doing another capital campaign so soon after the last one and that is a fair question. Let me tell you the story and then I’ll finish with some numbers.
Before I was called as Pastor it was made clear to me that major renovations and improvements to the building were on your minds. Over our first couple of years together the scope of our needs became clear, and we prepared two possible scenarios: remodeling our existing facility or erecting a new building. We chose to remodel.
As we completed our plans, the next big question was whether to do all the work at once or to do it in stages. Although we aimed for a building cost of $1.6 million, we were fairly certain we would not raise that much money in one capital campaign. So, we considered two options. One option was to do the entire project, borrowing the money for a long period, knowing we would need to have one or two more campaigns to pay for it. The second option was to do the work in phases: take a construction loan, but only do as much work as we could pay for in one campaign. Then we would have another campaign and do the next phase of work.
If we had chosen the second option, then the $1.2 million we raised would have paid for the HVAC work, carpet, walls, and other renovations, and electrical and plumbing work. We would probably have new restrooms, furnaces, air conditioning, etc., but would not have the new Commons or new kitchen. Those would have waited. Instead, we chose to do the whole project at once, which gave immediate benefits and, of course, cost less in the long run. But it means we have a large debt to pay.
The construction cost $2,000,251.88; that includes not only the expected costs, but changes we requested, and additional equipment (such as for the kitchen) that we purchased. In addition, we paid $165,944.56 in design, engineering, and construction management, and $57,380.35 (4.8% of the amount pledged, $1,199,286.52) to conduct the capital campaign itself. So the entire project cost $2,223,576.79. Toward their pledges, people gave $1,139.934.19 (95% of the amount pledged) to the campaign. We borrowed $1,692,266.14 from the Presbyterian Investment and Loan Program (this does not include the approximately $69,000 borrowed this summer for the recent roof project) and paid the balance from campaign funds. Since the loan was initiated, we have paid $130,411.84 in interest and closing costs and $53,918.10 in principal. So, as I write this, we owe the Presbyterian Investment and Loan Program $1,638,348.04 and we have $476,000 in our capital campaign investments. To ensure the vigor and security of our future mission, we need to raise (if not now, then soon) an additional $1.2 million.
This is, of course, over and above the ongoing cost of being the Church, which is supported by our regular tithes and offerings. As the Bible says, “Where your treasure is, there will your heart be also” (Luke 12:34).