On January 18, the congregation voted to purchase the property next door.

Phase 1 Site Plan

This is a view of the Church and the  property next door that we voted to purchase. This view shows the additional parking spaces we would gain and the planned walkway/stairs to the current parking lot.

site plan phase 1

 

SUMMARY OF TOWN HALL MEETING SUNDAY OCT.19TH

Dear Members of Hope Lutheran, this message is to review our town hall meeting this past Sunday.  While we had between 150 and 160 people attending the luncheon meeting we realize that many of you were on fall break or at the Ram’s game so we thought we would enclose some of the power point to explain what went on at the meeting.  The first page(Table 1) addressed our current and past giving.  As you can see on the History of Giving page our annualized estimated annual giving for this year is off.  You can see that our pledged giving is right at 99% but where we fall off is in non-pledged offerings and estimated property usage.  When Church attendance is down, which it is, our loose offering and non pledged offerings go down.  As you can see in the non pledged the estimated income is 92,151 for the year and we had projected, based on a four year average of past performance of 145,523.  Income in the property usage can be directly related to smaller crowds of tweens at the dances.  We’ve gone from 500 kids to 200 at each dance and that makes a great difference.  What will cure this problem is getting more people to come to worship on Sunday mornings and at the Lift service so I encourage you all to get back in the good habit of coming to worship on a regular basis.  God misses you and so do we.  Remember this is God’s House but it is our Church and we all need to “Get Connected “in Christ through our involvement in volunteer capacities and our financial giving.

History of Giving (Table 1)

Pledged Income NonPledged  Offerings Property Usage Capital Campaign Total Pledge  +NonPledge
2014 Annualize $259,310 $92,151 $62,370 $102,776 $516,606 $351,460
2014 Act(9mo) 191,294 67,980 46,011 75,818 381,103 259,274
2014 Projected 260,686 145,523 70,000 127,120 603,329 406,209
2013 282,213 110,508 58,278 130,079 581,078 392,721
2012 273,473 115,328 45,827 132,623 567,251 388,801
2011 286,601 87,975 26,741 104,149 505,466 374,576
2010 331,886 16,194 22,209 95,109 465,398 348,080
2009 301,401 56,028 14,427 119,874 491,730 357,429

2014 available for spending plan $413,831

 

The next sheet (Table 2) covers our financial giving for next year and our 2015 Vision for Mission.  Blue booklets further explaining each key Ministry area have been available at the Kiosk for the past two weeks .  Our pledges this next week on Reformation Sunday will determine our programs and personnel for 2015.

2015 Vision for Mission (Table 2)

KMA Project/Expenses Requested Spending Plan
Asset Management Payroll, Utilities, Repairs, Building Improvements $389,600
Caring for Ourselves Loaves & Fishes, Care notes, Camping, Stephen Ministers $14,525
Caring for Our World Kids Against Hunger, etc. $15,750
Benevolence 10 or 11% of offering
Communications Newsletter, Spirit, I Opts $10,000
Collaborative Ministries Kitchen, Hospitality, In-House Banquets, % of Youth Activities $33,410
Life Long Learning Sunday School, VBS $17,150
Transformational Ministries Sharing GGG $750
Worship, Lit & Rites Communion, Baptism $11,450
Total Before Mortgage $492,635 + Benevolence

 

The next important issue we discussed is the purchasing of the drywall property next door to our Church for future expansion.  After two years of negotiating we are very close to bringing a proposal to the congregation for approval.

The Current Mortage vs. New Mortgage sheet Table 3) explains how it could come to fruition.  As you can see, our current mortgage monthly payment is 9,373 and that is based on a 4.65% loan for 20 years.  If we purchase the new property for future expansion we would borrow an additional 575,000 plus 25,000 to renovate the buildings on site for rental income making it a 600,000 loan.  When we combine our old loan with our new loan we would have a new mortgage payment of 10,347 per month, an increase of only 974 per month.  The reason for this is we can get the new combined loan for 4.125 thus saving ½% on the entire loan and the ELCA Mission investment fund will allow us to extend our mortgage from 20 years to 25 years.  In addition the 17,000 sq. ft. warehouse can be sub divided to rent out cold storage space to remodelers, car clubs, lawn and tree service companies and many others.  Lauer appraisals estimates that we can earn up to 45,000 a year in rental income when the full property is rented.  Even if we only get 10,000 in the first year of rental that covers the increase in our mortgage.  In the Church Council’s opinion we think that this is the best course of action to provide expansion space for the future of Hope and in the interim to create another income stream for our congregation, as well as, additional parking and storage for our Church.

Current Mortgage vs New Mortgage (Table 3)

 

Current Mortgage Monthly Payment New Mortgage Total Monthly Payment
$1,334,797 $9,373 +$6000,000 $1,934,447 $10,347
@4.625% for 20 years @4.125% for 25 years

 

This represents a $974 per month increase to our mortgage payment to buy the Drywall Property

We’ll also get a potential income stream from the rental of the existing buildings through storage and office space.

Lauer appraisal shows a net income of $45,9008 with all venues rented.

I know this is a lot of information but, the entire council is prepared to answer any questions you might have concerning any of these issues.

Thank you and see you in Church on Sunday’

Bob Schreiber