Feb 27, 2007 Informational Meeting 1 St Paul United Methodist Church Faith Works! “Building for Christ’s Ministry” Informational Meeting February 27, 2007

Feb 27, 2007 Informational Meeting 2 Agenda History of the Faith Works! campaign The Faith Works! video The Building approval process The Building plans The Financial plan Q&A

Feb 27, 2007 Informational Meeting 3 History of the Faith Works Campaign Future Search Process Future Ministry Retreat / Fair Building and Grounds Study Committee –Ministry team needs survey –Community growth projections –Current facilities nearing capacity Building Committee Formed Preliminary building plans

Feb 27, 2007 Informational Meeting 4 Demographic and Trend Analysis - Building Study Committee Report 2002 Population of PWC increased 30.6% from 1990 and ,813 County projects 328,400 by 2005; 363,300 by 2010 and 384,300 by 2015 Within 5 miles of St Paul additional 3000 housing units planned over next 5-10 yrs Conversion of commercial property to high density residential

Feb 27, 2007 Informational Meeting 5 The Faith Works! Video

Feb 27, 2007 Informational Meeting 6 The Building Approval Process UMC Book of Discipline –Preliminary architectural plan –Preliminary cost estimate –Preliminary financial plan –Building committee recommendation –Develop detailed plans and specifications –Secure a reliable and detailed cost estimate –Get approval from the Charge Conference and District Committee on Buildings and Location –With approval, project can begin if has been met (loan is secured so bills can be paid as they come in)

Feb 27, 2007 Informational Meeting 7 The Building Approval Process Admin Board vote on Building Committee recommendation of preliminary building plan and financial plan (5/17/05) approved District Committee of Buildings and Location (5/25/05) approved Church Conference to approve financial plan (5/31/05) approved Development of detailed drawings, permitting and financial arrangements District Committee of Buildings and Location (6/21/06) approved Charge Conference to approve drawings, building plans and financial plan (6/27/06) approved

Feb 27, 2007 Informational Meeting 8 The Building Plans 43% increase in space—additional 14,060 sq ft Fellowship Hall increases by 2000 sq ft Enlarged Kitchen Update and expand restrooms including accessibility Elevator and locations of classrooms greatly enhance building’s accessibility

Feb 27, 2007 Informational Meeting 9 The Building Plans (continued) Nursery close to sanctuary; Drive-through entrance at chapel door; Centralized offices for administration/pastors Enhanced music office, choir room and storage

Feb 27, 2007 Informational Meeting 10 The Building Plans (continued) Preschool/toddler wing with water and toilet between two rooms (code) Outside exits for selected preschool rooms 7 New classrooms Preschool office Updated parking lot design (lighting and curbing) Sprinkler system for new construction

Feb 27, 2007 Informational Meeting 11 The Building Plans the Sanctuary (continued) Chancel renovation Rough-in for future sound and audio visual systems Extended platform area; for choir, pulpit, lectern, piano Permanent Bell tables Removes 3 rows of pews Removable communion rails

Feb 27, 2007 Informational Meeting 12 Current Implementation Plan Start with; Site work –Parking lots, storm water management, sidewalks and curbing Transition into Building expansion –Fellowship Hall, kitchen, restrooms, and elevator Renovations –Classrooms, sanctuary, and offices

Feb 27, 2007 Informational Meeting 13 Cost and Accountability Cost Estimate –Building costs; $2,625K –Site work;$ 690K Total;$3,315K Financial Planning based on; $3.3M - $550K (Bubb2) = $2.75M

Feb 27, 2007 Informational Meeting 14 Cost and Accountability Building Committee aggressively managing project cost growth Sources of cost growth include: –Inflation over time –County approvals (ie, firewalls & sprinkler system) –Detailed designs and revised estimates

Feb 27, 2007 Informational Meeting 15 Cost and Accountability Building Committee Trade-offs to control costs –No third floor above Fellowship Hall –Consolidated staff offices built in old Fellowship Hall –Pre-school rooms will share restrooms (one restroom / two classrooms) –Pre-school exits reduced (only for 2 ½ year old classrooms)

Feb 27, 2007 Informational Meeting 16 The Financial Plan Faith Works! Capital Campaign –Planned series of 5 three-year campaigns –First Campaign kicked off Oct 2004 –Pledges totaled $869,265 –Collected to date; $529,517 (thru Jan) Sale of Bubb 2 Property Bank Loan (15 year mortgage)

Feb 27, 2007 Informational Meeting 17 The Financial Plan Sale of Bubb 2 Bubb 2 property; –Roughly 2.5 acres –Zoned for single family development –Property includes one house Current mortgage: $172,000 Remaining proceeds to reduce bank loan; $550,000 Current status: Sales offer pending

Feb 27, 2007 Informational Meeting 18 The Financial Plan Bank Loan 15 year Mortgage Amortized based on 30 year schedule –Interest will be calculated at 7.875% fixed for 10 years, with the rate adjusting to the 5-year US Treasury plus 2.625% in year 11 Estimated loan amount; $3M Repayment (estimated) –Monthly payments (30 yr); $21,752 –Monthly payments (15 yr); $28,455 –Monthly payments (30 yr); $19,939 with $2.75M loan –Monthly payments (15 yr); $26,083 with $2.75M loan

Feb 27, 2007 Informational Meeting 19 The Financial Plan Current Status - Faith Works! Bank Loan Closing; Pending Church Conference vote to proceed Faith Works! Pledges $869,264 (1st campaign) Faith Works! giving; (through Jan 07) 2004$ 22, $251, $247, $ 8,480 Total$529,517 Avg mthly $21,181

Feb 27, 2007 Informational Meeting 20 The Financial Plan Current Status - General Fund General Fund giving year to date; –$54,201 Average monthly giving to date –$55,384 Average monthly giving required to meet 2007 General Fund “Operating” Budget = $1,183 shortfall –$66,677 Average monthly giving required to meet 2007 General Fund Budget (includes all apportionments) = $12,476 shortfall

Feb 27, 2007 Informational Meeting 21 Pending Decision Proceed with program as planned Do not proceed with building program –Options may include: Stop entirely Delay start Pursue reduced scope program

Feb 27, 2007 Informational Meeting 22 Questions & Answers

Feb 27, 2007 Informational Meeting 23 Questions Could the building project be re- structured, re-phased or re-defined? –Yes, options include; Multi-phased building program Selected sub-set of current plan –Impacts Increased total project costs Potentially voids current approvals (county, local church, district, and bank) Changing scope of project could impact FW pledges Additional delay as approval process starts over

Feb 27, 2007 Informational Meeting 24 Questions What are we going to do about the current facility? (cleanliness, paint, repairs) –Trustees issues in constrained “facility unscheduled maintenance” budget –Maintenance items deferred to conserve budget Pending direct or indirect impacts from the building program

Feb 27, 2007 Informational Meeting 25 Questions How can we afford this effort and maintain vital ministries? –Attendance is down / giving is down. –Projected shortfall with current (2007) General Fund budget is roughly $150K –However, Faith Works! contributions have remained relatively steady while attendance has declined –Average monthly Faith Works! contributions to date are sufficient to cover the 30 year amortized monthly payments (assuming $2.75M loan) –Generally accepted statistic that building programs draw new members and recover inactive members

Feb 27, 2007 Informational Meeting 26 Questions What if we delay implementation? –The Special Use Permit (SUP) was approved by the county in Feb 2005 –Generally; the SUP remains valid as long as we proceed in time to secure the Occupancy Permit before Feb 2010 –Architectural plans should remain valid –Building costs will increase –Re-apply for bank loan (terms TBD)

Feb 27, 2007 Informational Meeting 27 Back up Charts

Feb 27, 2007 Informational Meeting 28

Feb 27, 2007 Informational Meeting Apportionments District Add’l $21.1K

Feb 27, 2007 Informational Meeting 30 Conference Apportionment Formula

Feb 27, 2007 Informational Meeting 31 Called Charge Conference Minutes June 27, 2006 (Excerpt)