Kirk of Kildaire Educational Building Project
Adopted Benchmarks for When to Break Ground
Adopted by the Session, November 6, 2016
Building Cost: $4.5 million for two story building with basement.
Goal, objective, measure, and strategy:
Goal: To build an educational facility to replace aging and damaged buildings and to provide space for future mission, ministry and growth.
Objective: We will build in a fiscally responsible manner as not to affect the identity, mission, ministry and staffing of the Kirk but to encourage continued growth.
Measure: Until the church budget can accommodate current and future debt payment, we will not break ground. (This measure defines how we understand that the congregation believes this to be the will of God.)
Conditions under which the Building Committee will sign contracts and break ground:
- Have capital cash on hand to cover at least 1/3 the total cost of the project: $1.5M.
Comment: Our current cash on hand of $1,618,000 meets this condition.
- Collect pledges in 3 years or less to cover 1/3 the cost of construction: $1.5M.
Comment: We are close to this goal. Current status: We need $203,000 in additional capital campaign pledges to meet the goal.
- Commit to no more than 1/3 the total cost in mortgages: $1.5M.
It might be necessary to secure a short-term loan for more than this amount in the interval between start of construction and final fulfillment of pledges.
Comment: Amount needed per year is $152,000 in increased pledges. The Finance team is working with the other leaders in seeking to raise pledges to pay for this in the operating budget (the 25% increase challenge). The pledge campaign is extended until November 20th to allow time to challenge the congregation.
4. The mortgage is to be paid off through the operating budget and successive capital campaigns, without impairing the church’s commitment to program, personnel, and benevolences.
Comment: The 25% pledge increase includes not only the amount to cover the mortgage, but the amount needed to maintain our commitment to program, personnel and benevolences. Should less than 25% be pledged, the finance team will recommend how much of the actual increase goes toward the building and how much goes to program, personnel and budget. The goal will be to set aside in the operating budget a certain amount for new building mortgage expenses. (as recommended by Finance) Those funds will be designated and set aside for the new building as we build in the mortgage expense into the budget. Contracts may be signed once there are funds in the operating budget to cover mortgage expense.