Congregational Meeting June 25, Renovation Loan Detailed Approval

On Sunday, June 25th following worship, the Executive Council has called a special meeting of the congregation to approve the details of a loan previously approved for the renovation of the west half of the building. The current situation is this:
 
The Reach & Renew construction projects were approved by the Congregation at a Congregational Meeting on May 15, 2016. The specific costs and contracts for the construction projects were approved by the Executive Council on March 20, 2017. Based on current cash available and expected construction costs, including contingencies, the Executive Council expects to need to borrow $500,000 for the Reach & Renew projects.
At a meeting on June 19, 2017, the Executive Council will consider the need for and advantages of completing work on the roof of the sanctuary and church school and office buildings at a cost of approximately $207,000. The 2017 Operating Budget includes $125,000 for deferred maintenance. The additional roofing costs and other projects are likely to exceed that budget by about $100,000. The Executive Council will consider adding that amount to the borrowing from the Foundation.
The 2017 Annual Stewardship Campaign generated pledges of almost $660,000 in support of an annual budget at a level which will support the repayment of the loan. The Executive Council and the Foundation reviewed distribution of those pledges, and believe that Church support is relatively widespread by members' age so the Church is not unduly exposed to the risk of a small group of members discontinuing their pledges.
The Executive Council and the Foundation also reviewed maintenance projects expected by the Property Board for the next five years, during the loan repayment period, and believe none of those anticipated projects will require extraordinarily high expenses which would materially limit the ability of the Church to repay the loan.
The Church continues to grow in numbers of members, numbers of members attending weekly services and number of pledgers.
The Executive Council intends, and asks the Congregation to confirm that intent, to repay the loan when due and to make repayment a high priority for use of Church funds while the loan is outstanding. The loan, previously planned to come from Cornerstone, a UCC investment/loan arm of the UCC, will now be requested directly from the Foundation of First Congregational.  The request from the Foundation would be to borrow up to $600,000. The loan will be in the form of a construction loan, with no payments due until construction is complete and the outstanding loan balance then amortized over five years with an interest rate of 5.0%. The Church expects construction to be complete and paid for by December 31, 2017, so loan payments will be completed by December 31, 2022.
If interested in additional information regarding the loan as well as the roof costs, please contact one of the following: Casey Newman, Ellsworth Brown, Paul Karch, or Eldonna Hazen.
~ Casey Newman, Moderator
(on behalf of the Executive Council)

Posted on June 13, 2017 at 9:57 am in Featured Content.

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