First Congregational United Church of Christ. Congregational Conversations on Long-Term Resources and Needs February and March 2016

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1 First Congregational United Church of Christ Congregational Conversations on Long-Term Resources and Needs February and March

2 Motivating Observations / My Hidden Agenda Our Church is alive with spirit, mission and community we are changing lives We are rich in resources for our missions Our location and building Our talented, committed and generous members, present and past Our building needs continuing investment to support our mission We should celebrate our opportunities 2

3 Open Agenda Trends in Church Cash Balances Trends in Foundation Resources and Grants Recent Capital Campaigns Reach and Renew Project Progress Reach and Renew Approved Projects and Costs Status and Plans of 303 and 320 Lathrop Needed Building Repairs Total Needs and Sources Possible Sources Pros and Cons Your Thoughts and Questions 3

4 Church Cash Resources (excluding capital campaign balances) $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Long-Term Reserve Fund Memorial Funds General Operating Reserve 4

5 FCUCC Foundation Resources $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 New Century Main (Endowment) $400,000 $200,000 $

6 Foundation Bequests and Memorials ( ) $768,813 $700,000 $600,000 $500,000 $400,000 $300,000 Memorial Bequest $200,000 $100,000 $

7 Foundation Bequests and Memorials ( ) $768,813 6 Memorials 15 Bequests (9 in 2011: $664,000 of $769,000) Beckman, Brereton, Butler, Canfield, Daniels, Fishel, Forsyth, Gerloff, Hoffman, Hoops, Kingdon, Little, Martin, Pella, Roberts, Schrieber, Shaw, Shetler, White 7

8 Foundation Regular Distributions Generally Based on % of Total Assets ( ) - $563,360 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 New Century Endowment $20,000 $10,000 $

9 Foundation Special Distributions From New Century Fund 2012: $250,000 to Reach & Renew Campaign 2014: $75,000 to Healing House Total Regular and Special Distributions for past ten years: $888,360 9

10 Foundation Funding of Mission Needs Operations, including Special Projects in Annual Budget (approx. $60,000/year) Reach & Renew ($250,000 contribution) Reach & Renew ($450,000 line of credit for cash flow) Healing House ($150,000 loan and grant) 10

11 Recent Capital Campaigns Year Title New World 75 th Year Reach & Renew Total Raised $368,685 $306,032 $1,900,965 $250,000 (Foundation) Uses - Expand Staff (music; children and youth) - Deferred gifts to Foundation - Habitat for Humanity Projects - Church Building - Replenish Long- Term Reserve - $50,000 set aside for possible allocation to scholarship fund - Heating and A/C - Balustrade Painting - Greening of the Building - Youth Room - Piano and Organ - Prison Ministry - Membership Renewal - Partial Support for full-time Asst. Pastor 11

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13 - Tier 1 Projects Allocated Spent Heating/AC/Electrical $1,000,000 $999,000 Membership Renewal - General $25,000 $10,500 - Full-Time Assoc. Pastor 100,000 0 Greening of the Building $50,000 $35,500 Prison Ministry (over 5 years) $50,000 $20,000

14 - Tier 2 Projects Allocated Spent Piano and Organ Repair $35,000 $29,500 Youth Room $3,000 $2,500 Inspired Heights (painting) $315,000 $315,000 Breese Terrace Steps $150,000 $0 Chapel/Lounge/Pink Kitchen $140,000 $0

15 - Tier 3 Projects Allocated Spent Strang/TC Lin (renderings) $10,000 $6,500 Office Relocation $220,000 $0 A/C in Sanctuary (added w/heat) In Tier 1 In Tier 1 15

16 Reach and Renew Allocation Summary Projects Allocated Spent Heating & Air Conditioning $1,000,000 $999,000 Balustrade and Tower Painting $315, ,000 Strang/TC Lin (renderings) $10,000 $6,500 Youth Room $3,000 $2,500 Greening of the Building $50,000 $35,500 Piano and Organ Repair $35,000 $29,500 Prison Ministry (over 5 years) $50,000 $30,000 Membership Renewal $125,000 $10,500 Office Relocation $220,000 Chapel/Lounge/Pink Kitchen $140,000 Breese Terrace Steps $150,000 Total $2,098,000 $1,421,500 16

17 Balustrade and Tower Painting 2011: About $200,000 included in Tier 2 of Reach & Renew 2012: When Congregation determined priorities we did not include painting 2013: Failure of original (1930) paint bonding to sheet metal created lead paint safety issue and even worse appearance 17

18 Balustrade and Tower Painting (cont.) Three bids for project (several contractors declined to bid) Two bids for scaffolding - > $1 million Inspired Heights steeple jacks - $315,000 Lead paint removal time-consuming and required continuous dry days: May days of rain June days of rain 18

19 Reach and Renew Allocations & Costs of Pending Projects Projects Allocated Est. Full Cost Office Relocation $220,000 $430,000 Chapel/Lounge/Pink Kitchen $140,000 $212,000 Breese Terrace Steps $150,000 $115,000 10% Contingency $75,000 Architect Fees $55,000 5% Cost of Delay $40,000 Furnishings $70,000 Totals $510,000 $997,000 Shortfall $487,000

20 Reach and Renew Projects Explanation of Changes in Costs Construction Costs Always Higher than Rough Estimates More Complete Design Work Inspires Better Ideas 20

21 Reach and Renew Projects Partial Alternative Within Allocation Complete Front Steps Prevent Damage to Building from Leaks Move some offices; leave others Remove pews from Chapel; replace carpet 21

22 Beyond Reach and Renew OTHER RESOURCES AND NEEDS 22

23 Healing House 303 Lathrop Eldonna and Paul on Fundraising Steering Committee Working to Raise $225,000 for operating expenses to trigger Church/Foundation construction grant and loan Looking to hospitals for lead support and gifts 23

24 320 Lathrop Possible Mission Use Ad Hoc Committee: John Tyler, Ron Shaw, Lance Bentley, Paul Karch Goal is to Avoid FCUCC Investment Parking Lot Not economically feasible because of land use restrictions $100,000 to Renovate to Good Condition Low Cost Housing: Lease or Sell 24

25 Needed Building Repairs Item Estimated Cost Fire Alarm $145,000 Front Column Restoration $30,000 North Side Fencing and Stairs $44,000 Repair/Reglaze Windows $1,000 Replace Refrigerators $2,000 Replace/Widen South Door and Sidelights $10,000 Replace Garden Entrance Doors $16,000 Paint Interior Sanctuary Walls $30,000 Paint Exterior Sanctuary window lintels/panels $10,000 Total $288,000 25

26 Possible Sources and Uses (To be Completed) Possible Sources Amount Possible Uses Amount Church Reserves $0 Complete R&R Projects $487,000 Foundation New Century Needed Building Repairs $288,000 Extension of R&R $300,000 Prison Ministry (5 years) $50,000 New Capital Campaign $ Wis. Conf. Campital Campaign $50,000 Sell 320 Lathrop $200,000 Repair 320 Lathrop $100,000 Total $975,000 26

27 Possible Sources Pros and Cons Source Pros Cons Past: Foundation Present: Extend R&R Present: 2017 Campaign Future: Borrow - Money Is There - Live up to/earn donor trust - Reduced future income - Bequests unreliable - Have been spending - Monthly Donors keep giving - About time (6 years) - Projects identified - Build on current energy - Growing Churches often do - Many R&R gifts from assets - Challenge of partial campaign - Too much focus on building - Do we have the capacity - Challenge of full campaign - Pressure on operating budget - Stability of no debt is good 27

28 Ideas? Preferences? Analysis / Criticism? Questions? 28

29 Next steps March 6 (11:00)/March 17 (7:00): Additional Conversations March 21: April EC considers feedback and recommends actions to Congregational Meeting April 10: Congregational Meeting 29