Transfiguration Expansion Project Financials

Topics Project Financing Overview Fundraising & Pledge Program Obtaining Credit Convincing our bank that we are capable of assuming a loan Mortgage Servicing Strategy Convincing ourselves that we are capable of handling loan obligations

Project Financing Overview Total Project Cost $4M Down Payment $2M Mortgage Loan Mortgage Payment Set Aside $0.5M Fundraising $1.5M Multiple scenarios address community’s needs in $3M-$4M price range Growing community demonstrates need for near-term action Conservative approach needed to avoid over-burdening the community with debt 50 / 50 debt to equity split balances need for near-term action with financial conservatism Financial strategy needs to demonstrate an ability to cover mortgage payments long-term

Fundraising & Pledge Program Project Financing $2M loan $2M down payment Down payment achieved through $0.5M mortgage payment set aside & $1.5M fundraising campaign Fundraising Campaign $1.5M capital campaign needed to prepare down payment over next 4 years $375K per year increase in individual giving, fundraisers, etc Achievable goal given past success raising funds for sanctuary, icons, walkway, etc Schedule at right shows pledges needed to secure $1.5M in funds over 4-year campaign 4-Year Giving Schedule $1.5M over 4 years Near-term fundraising unlocks long-term borrowing options

Credit Evaluation Metrics How can Transfiguration convince our bank that we are credit-worthy partners? Banks use multiple metrics to evaluate credit worthiness (see examples at left) General evaluation categories: Revenue relative to loan payments Total amount borrowed vs collateral pledged Operating strength (members, attendance, etc) Project financial targets aim for an “above average” or “outstanding” ranking in key credit metrics Key Financial Objectives: Increase recurring revenue by 8% per year for next 4 years Control costs by putting 70-80% of increases in revenue aside to cover future loan payment

Mortgage Servicing Strategy How do we show ourselves that we are ready to take on mortgage servicing obligations? Anticipated Mortgage Payment- $14K $3.5K Achieved $14K per month anticipated mortgage payment Need to demonstrate ability to sustain payments Set aside increasing monthly sums funded out of recurring stewardship revenue until reaching level of expected mortgage payment Revenue growth and expense discipline needed to grow “set aside” to support mortgage payment Strategy results in $500K set aside towards down payment over 4 years