Update on Capital Projects
Update on Capital Projects
November 1, 2015
Your Finance Committee is charged with the responsibility to “keep the congregation informed of the financial situation by providing regular reports on all accounts.” In particular, with all of the new emphases, what has happened to the capital projects the church adopted in 2009. You may recall, if you have been in the church since that date, that we established six special funds for five capital projects plus a missions fund:
Storage building $40,000 (final cost was $41,562)
Sound system 30,000 (final cost was $29,212)
Vertical lift 30,000
Bell tower 100,000
Hutchins Hall flooring 40,000
Missions no amount set
Many of you have made contributions designated for one or more of these projects. To date we have completed two of the projects: the building and the sound system.
In order to facilitate and allow for timely completion of the projects, the Session adopted a policy that once half of the goal for a given project was attained, the project would be begun, with the anticipation that the balance of the funds would continue to be received until 100% was funded. Meanwhile, the balance of funds needed for the project would be “borrowed” from the Endowment Fund, to be replaced once the additional funds were received.
· This process was followed with the storage building project. To date, $26,416.33 of the $41,562 final cost has been received, leaving the balance to be taken from the Endowment Fund. Some contributions toward this project continue and approximately $15,000 more is needed.
· Similarly, for the sound system project, to date $19,190.38 of the $29,211.72 final cost has been contributed and $13,625.26 was borrowed from the Endowment Fund. To return the borrowed amount to our Endowment and complete the funding for this project we need $10,021.34.
While these two projects have been completed and paid for, we had to borrow almost $28,000 from our Endowment Fund in order to do so. We now need to continue the contributions toward these two projects so we will be able to repay ourselves (i.e. our Endowment Fund.)
In 2014, acting upon a recommendation by the Finance Committee, the Session put “on hold” the policy of utilizing Endowment Funds when half of the goal had been reached. This means that all of the goal for a given project must be attained before the project will be undertaken.
So what happened to the money given for the other projects? It is being held in a separate designated reserves account for the capital projects. It has not been used for any other purpose. As a given project’s goal is attained, the project will be begun.
As from the beginning, the Finance Committee encourages you to contribute toward the goals of the projects, over and above your regular tithe and pledge.
To date, the contributions toward each project are as follows:
Storage building $26,416.33 (project completed for $41,562; $15,145.67 needed)
Sound system 19,190.38 (project completed for $29,211.72; $10,021.34 needed)
Vertical Lift 8,741.67
Bell Tower 19,537.61