Spirit of Joy Congregational Awareness Meeting October 28, 2018 - - PowerPoint PPT Presentation

Spirit of Joy

Congregational Awareness Meeting October 28, 2018

Our Mission is Thriving Since November 6, 1994!

2018 YTD Financial Picture

2018 - Expenses Through Sept - $219,545 2018 - Offerings Through Sept - $186,917 Deficit - $32,628

$0.00 $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 JAN FEB MAR APR MAY JUN JUL AUG SEP

2018 YTD Expenses vs Offerings Non Building

2018 Sunday Offerings+Ministy 2018 Operating Expenses (Non Bldg)

Expenses are $2,637.28 below budget!

Building Big Picture

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Where we are All purpose building All purpose building & Sanctuar

Where we are

Where we are

$ millions

Another $1.55M To Occupy First Building Additional $1.1M To Build Sanctuary $3.5M Spent - $1.75M Debt to Thrivent

Bank of Southern California

• Loan Committee Rejected First Review
• Can Resubmit if we Address Following Conditions

– Authentication of Finances Submitted - No Tax Returns or Audits

• CPA Neil Nevills Helping – Hope Lutheran Church working with Al Rogers

– Cash Flow Concerns and Loan Amount Ratios – Based on Three YR History No Growth

• Contributions are not consistent monthly – This is Nature of Church Contributions
• Would Like 1.25% Income to Expense Ratio
• Projected with $3.3M Loan with Loan Payment of $20.K - 1.04%

– (Note this requires ongoing $200K Building Contributions we have had previous 3 years)

• Loan Amount Required to Achieve 1.25% Ratio

– $2.3M Based on Interest rate of 5% – Monthly Payment would be $13.6K

Building Finance Update – Possible Partial Land Sale

• Options to help reduce loan amount $1M
• Sell of Ballfield + Additional Fundraising
• We have a Buyer for Ballfield Area
• Private Company to open Swim Rec. Center

– Expanding from Orange County – Current Swim Leagues operating in Estates – High School Pool could be condemned soon

• School District would pay monthly for use
• Spirit of Joy would receive Monthly fee
• Parking Lot etc.

Other Updates

• Payments Begin on Thrivent Loan of $1.7M Will Start Dec 1st

– Monthly Payment of $9.2K

• We have been making interest only payment of Approx. $6K

– Two Year Balloon based on 4.35%

• We have backing throughout the Pacific Synod

– Bishop is fully supportive. – Continuing to receive grants – MIF Interested in Possibly Helping to Fund Again

• Support from Senior Director - Joe Wundel

– Visit November 28th or 29th

• Meeting Required to Discuss Deferred Endowment Gifts

More Volunteers/Help Needed

• Do you have Time and Talents to help?

Harvest Dinner Nov 4th

• Important to Attend for further discussions.
• Congregation Vote will be coming up to Decide Paths to Pursue

– Continue pursuing current path on property

• Current County permit requires start of building by Sept 2019
• Other Options on this path can be pursued

– Delay with plan to address current loan commitments – Loan through crowd funding - SOJ and others – Move to Land some other way

• Temporary Buildings?

– Sale of Current Land

• Aug 2017 Appraisal was $3.8M – Should Increase based on Improvements
• Could net $2M+ After Paying of Thrivent
• Pursue other locations, build out current location more
• Other options welcome

Thank You!

Backup Slides from last Building Congregation Update

We know we can complete the mission…

• We’re still here--despite growth constraints of a 40-parking lot carpark and a

cramped store-front location we sustain two services

• We’ve adapted—traditional worship remains strong and we have a great

contemporary service that is thriving and growing.

• We have support—there’s a strong base of local support who have showed little

turnover

• We have interest—there’s a groundswell of support from people who want to

worship with us….but won’t worship in a store-front. We see them at our

• utdoor services
• We’re one of the fastest growing communities in Southern California

Getting Close – Need Help to Push Across the Goal

• 25 Years and $3.5M Spent!
• Only Building and Waste

Water Management left to Occupy.

• Please watch latest Video : Spirit of Joy 25 Years and Going!

Phase I – Multi-Use Fellowship/Worship Hall

• Project scaled back to One

Building to assure financially achievable with current congregation.

• Plan is to pursue

Sanctuary as soon as fiscally possible, ideally under current county approval timeline.

Full Building Plans –> Phase I - III

Phase I – Multi-Use Fellowship Hall

Go Fund Me Page

• In addition to

pursuing financing, we are seeking donations, gifts and grants to reduce mortgage and to pursue complete project including sanctuary.

Spirit of Joy Can Do This!

(Based on Modest Growth – Could easily be exceeded.)

• Buffer would allow > 2 years of $10K/Month Shortfall
• No Shortfall will occur with current giving history

and modest growth

• Years 2019 On Include

Estimated Loan Payment for $3.3M Loan.

• Loan can be reduced

with Donations Raised

• Grants for 2019-21

Not Awarded yet.

2015 2016 2017 2018 2019 2020 2021 Percent Increase 3.00% 15.00% 10.00% 5.00% Per Giving Unit Today $1,892.55 $1,949.32 $2,007.80 $2,068.04 $2,130.08 Giving Units 150 155 178 195 205 Income $283,882.08 $301,170.50 $356,736.46 $404,182.40 $437,123.27 Grant $12,000.00 $16,666.67 $16,666.67 $16,666.67 Building/Loan Income $280,513.76 $206,217.03 $217,559.26 $200,000.00 $200,000.00 $200,000.00 $200,000.00 Income Non Building $319,596.81 $313,157.77 $282,640.32 $313,170.50 $373,403.12 $420,849.07 $453,789.94 Total Income $600,110.57 $519,374.80 $500,199.58 $513,170.50 $573,403.12 $620,849.07 $653,789.94 Total Expense $333,749.75 $346,949.10 $343,421.79 $298,262.00 $496,609.77 $505,784.89 $515,392.48 Profit/Loss $266,360.82 $172,425.70 $156,777.79 $214,908.50 $76,793.36 $115,064.18 $138,397.46 Buffer to Cover Short Months If Needed General Savings $104,302.11 Thrivent Money Market - Not Loan $45,316.00 Thrivent Secured $50,000.00 County Bond $30,000.00 Bond for Grading $50,000.00 Total $279,618.11

Phase I Can Be Funded With Zero Growth and Current Contributions

• Buffer would allow > 2 years of $10K/Month Shortfall
• No Shortfall will occur with current giving history
• ver a year, but some giving varies by month, so we

see the buffer as essential.

• Both Expenses and

Giving Unit Amount include a 3% Yearly increase for Inflation

• Building Donations of

$200K per year is less than the average of previous three years.

Buffer to Cover Short Months If Needed General Savings $104,302.11 Thrivent Money Market - Not Loan $45,316.00 Thrivent Secured $50,000.00 County Bond $30,000.00 Bond for Grading $50,000.00 Total $279,618.11 2015 2016 2017 2018 2019 2020 2021 Percent Increase 0.00% 0.00% 0.00% 0.00% Per Giving Unit Today $1,892.55 $1,949.32 $2,007.80 $2,068.04 $2,130.08 Giving Units 150 150 150 150 150 Income $283,882.08 $292,398.54 $301,170.50 $310,205.61 $319,511.78 Grant $12,000.00 $16,666.67 $16,666.67 $16,666.67 Building/Loan Income $280,513.76 $206,217.03 $217,559.26 $200,000.00 $200,000.00 $200,000.00 $200,000.00 Income Non Building $319,596.81 $313,157.77 $282,640.32 $304,398.54 $317,837.17 $326,872.28 $336,178.45 Total Income $600,110.57 $519,374.80 $500,199.58 $504,398.54 $517,837.17 $526,872.28 $536,178.45 Total Expense $333,749.75 $346,949.10 $343,421.79 $298,262.00 $496,609.77 $505,784.89 $515,392.48 Profit/Loss $266,360.82 $172,425.70 $156,777.79 $206,136.54 $21,227.40 $21,087.39 $20,785.97

Land Value – Main Collateral

• Appraisal Value at Original Loan Request - $ 2.4M
• Aug 25, 2017 – Appraisal - $3.8M
• Appraisal Value Will Increase Further with Improvements

– Building, Parking Lot, Paving, Lighting, Waste Water Management to add > $2M – Multi-Use building could easily be converted for general purpose office space.

• Projected Value at Completed Construction $5.8M+

We know we can complete the mission…

• In addition to seeking additional funds to borrow, other avenues are being

pursued.

• Local Partners such as YMCA would be a revenue source.

– Would use facilities and unused land for county camps and clinics. – Seeking location for new community pool.

• 50% financing approved by county commission
• SOJ site is ideal location
• Would also service local swim club and High School team.

– Official agreements can not be signed until our project is completed

• Pacifica Synod and partner churches

– Sister churches in discussions for donations and loans – Synod assisting with grants