Financial Challenges

Peace faces two financial challenges at our new facility: Increased budget required for mortgage payments and utilities $250,000 Bridge Loan due October 29. 2010 INCREASED BUDGET All contributions (unless designated for specific funds) go into the General Operating Fund (GOF). Each November, the Voters’ Assembly approves the budget for the next year. In the past, our income has always exceeded our expenses. This year has been a transition year, making it difficult to estimate our utilities in our new facilities. The Voters’ Assembly approved a reduced budget in May, and the Council further reduced the budget in June. Our purpose is not to raise money but to raise people of faith, and we continue to keep our mission programs intact. Our offerings are a thanksgiving to the blessings God has showered on us. We saw an increase in giving with Our Consecrated Steward campaign in June, but we are still operating in the red. The reality is that our spending cannot exceed our income. We need to be good stewards of our gifts to God. One challenge for 2009 will be to reduce our budget to meet our income or increase our income to meet our budget. Any suggestions you have to help reduce expenses and increase giving are welcome. BRIDGE LOAN In the fall of 2002, we started a three-year capital funding campaign to raise money for our building program. We received $276,623 in our Sent to Share Peace program (2003-2005). To reduce our construction costs, we elected to build the Narthex, Fellowship Hall, and Education Wing footprint of our phased building plan, leaving the more expensive Sanctuary for future construction. Our loan request was for $1,200,000. The Lutheran Church Extension Fund was willing to loan us $1,000,000 based on our giving profile. They recommended we hold a second capital funding campaign to reduce our mortgage amount to $1,000,000. Commitments to Partnership in the Gospel, our second three-year capital funding campaign (2006-2008), totaled $221,336. A three-year bridge loan would allow us to contribute the money during the construction phase. Contributions to the Partnership in the Gospel campaign and the building program totaled $109,697 in 2006 and $114,784 in 2007. Due to the increased construction costs, all money collected was used to complete construction. Giving to the Partnership in the Gospel/Building Fund during 2008 has totaled $55,038 to date (Sept. 21). When our completion bond is refunded, $49,837 will be paid on the bridge loan. We will need another capital funding campaign to raise the balance due in 2010.