Why do we need a capital fund drive?
Frequently asked questions
We are all so much at home in our impressively expanded and renovated facilities now, that it is hard to believe the Building the Spirit drive that made it all possible occurred only five years ago.
We called that campaign Building the Spirit because our growth was about so much more than only bricks and mortar. It would change our church by fostering new ministries and making room for activities that would build our community and make it strong. We, as a parish, now enjoy these spaces and ministries, and must come together again (or, for the first time for SMEC's newer parishioners) to meet the needs of St.Matthew's.
Below are some questions and answers about our Living the Spirit Fund Drive:
Why Did Costs Increase?
- Katrina – The cost of materials (structural steel, concrete and cement, drywall and electrical components increased).
- Complexity of the Project – Construction had to be phased to keep as many areas of the church open and functioning as possible during construction. This complicated the project and caused some delays.
- Unexpected Additional Expenses
- Asbestos abatement
- Fire separation wall
- Rock excavation for foundation work on elevator pit and grand staircase
- Additions to the project approved by the Vestry
- New Roof on Clingman Hall
- Sound systems in the Sanctuary and Saints Hall
Why Is There a Funding Shortfall?
- Building the Spirit raised a net total of $3,810,000
- $1,032,000 from the Augustus Bequest
- $2,778,000 Building the Spirit Pledges (Total pledges exceeded $2.9 million, but $125,000 in pledges will not be collected due to changed circumstance of some donors)
- Project costs increased to $5,227,000 resulting in a shortfall of $1.4 million.
What is the Current State of the Debt?
- We have two construction loans with a current principal balance totaling $1,720,000.
- Stock Yards Bank – $1,650,000
- Marmion Loan (From the Diocese of Kentucky) – $70,000
- At present, we have assets totaling $301,000 which will be used to pay down the debt:
- Cash in the Bank – $114,000
- Cash due from the Endowment (previously authorized by the Vestry) – $167,000
- Remaining Building the Spirit Pledges expected to be received this year – $20,000
- With monthly payments totaling $14,700, we have enough cash to meet our obligations until mid 2011.
- An additional $1,420,000 would be needed to pay off the debt today.
- The Stock Yards Bank loan is due December, 2015. If not paid off or renegotiated, a balloon payment of $1,000,000 will be due.
- The final payment on the Marmion loan is due 10/1/2016. The loan will be fully paid with the final monthly payment.
