Financial Plan To Position Ourselves To Call A Second Pastor

2008-2009

The Church council believes that responsible financial Stewardship calls for eliminating our debt before calling a second pastor. Our current debt for parking lot expansion is $133,000.00. (The total projected cost minus $42,000.00 set aside for debt retirement.

2009-2010

SPECIAL GIFT AND INTERNAL LOAN

· SOTH received a gift of stock in February, 2009.

· The Planned Giving Committee sold the stock for $111,420.85 several months later (after it had risen in value by over $50,000).

· The Council adopted the proposal of the Planned Giving Committee to designate the gift for the Endowment Fund, and to receive an internal loan from the Endowment Fund to pay off $110,000.00 in member loans for the parking lot, plus $4,083.34 in interest. This loan will be repaid to the Endowment Fund at 5% interest.

· The advantages to this use of the special gift are:

1)The majority of member loans can be paid off quickly, saving interest costs.

2) Interest from the loan returns to the congregation, in keeping with the purpose of the

Endowment Fund., and funds programs, projects or special funds in the congregation.

3) The Endowment Fund grows, providing annual revenue to the congregation via interest

earned on the capitol, and giving the congregation the capacity for a sizeable internal loan if

funding assistance is needed for staff, facility expansion, etc.

DEBT REPAYMENT PLAN

In order to balance our 09-10 budget with anticipated gifts we eliminate the roughly $37,000.00 we had budgeted in 08-09 for debt retirement.

The Council is proposing a debt retirement plan that utilizes member gifts above and beyond regular planned offerings. We encourage members to give $5.00 a week in addition to their planned regular gifts. $5.00 is one Big Mac value meal, or wages for a little over a ½ hour of work, if you work $8.00 an hour job. Yet $5.00 per week per member or couple adds up.

If even two thirds of our members (185 individuals or couples) participate, $5x185 = $925 per week or $48,100 per year that would be allocated for repayment of the parking lot loan.

Our loan repayment schedule could then look like this:

09-10 $133,000 parking lot debt

-$48,100 member gifts, over and above regular planned offerings

10-11 $84,900 parking lot debt

-$48,100 member gifts, over and above regular planned offerings

11-12 $36,800 parking lot debt

-$36,800 allocated from $52,382.27 currently in our Mission Vision Fund

This plan would:

1) Help us to grow in our faith, as we trust God to bless us as we make sacrifices for the greater good of his kingdom and the preaching of the Gospel for the salvation of souls.

2) Demonstrate that we could support a second pastor (the $48,000 in additional offerings comes close to the $65,000 per year needed for a second pastor.

3) Eliminates our debt and enables us to call a second pastor in two years, $16,000 in the Mission Vision Fund and over $100,000 in the Endowment Fund as back up resources should we need assistance in funding a second pastor in the first few years.