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 YTD Expenses vs Offerings Non Building $30,000.00 $25,000.00 $20,000.00 $15,000.00 $10,000.00 $5,000.00 $0.00 JAN FEB MAR APR MAY JUN JUL AUG SEP 2018 Sunday Offerings+Ministy 2018 Operating Expenses (Non Bldg) 2018 - Expenses Through Sept - $219,545 Expenses are $2,637.28 below budget! 2018 - Offerings Through Sept - $186,917 Deficit - $32,628

Building Big Picture Additional $1.1M To $ millions Where we are Build Sanctuary $4.50 $4.00 $3.50 Another $1.55M To $3.00 Occupy First Building $2.50 $2.00 $1.50 $3.5M Spent - $1.75M Debt to Thrivent $1.00 $0.50 $0.00 Where we are All purpose building All purpose building & Sanctuar Where we are

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 1 st – 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 28 th or 29 th • 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 outdoor services • We’re one of the fastest growing communities in Southern California

Getting Close – Need Help to Push Across the Goal • Please watch latest Video : Spirit of Joy 25 Years and Going! • 25 Years and $3.5M Spent! • Only Building and Waste Water Management left to Occupy.

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.) 2015 2016 2017 2018 2019 2020 2021 Percent Increase 3.00% 15.00% 10.00% 5.00% • Years 2019 On Include Per Giving Unit Today $1,892.55 $1,949.32 $2,007.80 $2,068.04 $2,130.08 Estimated Loan Giving Units 150 155 178 195 205 Payment for $3.3M 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 Loan. Building/Loan Income $280,513.76 $206,217.03 $217,559.26 $200,000.00 $200,000.00 $200,000.00 $200,000.00 • Loan can be reduced Income Non Building $319,596.81 $313,157.77 $282,640.32 $313,170.50 $373,403.12 $420,849.07 $453,789.94 with Donations 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 Raised Profit/Loss $266,360.82 $172,425.70 $156,777.79 $214,908.50 $76,793.36 $115,064.18 $138,397.46 • Grants for 2019-21 Buffer to Cover Short Months If Needed Not Awarded yet. General Savings $104,302.11 • Buffer would allow > 2 years of $10K/Month Shortfall Thrivent Money Market - Not Loan $45,316.00 • No Shortfall will occur with current giving history Thrivent Secured $50,000.00 County Bond $30,000.00 and modest growth Bond for Grading $50,000.00 Total $279,618.11

Phase I Can Be Funded With Zero Growth and Current Contributions 2015 2016 2017 2018 2019 2020 2021 • Both Expenses and 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 Unit Amount Giving Units 150 150 150 150 150 include a 3% Yearly Income $283,882.08 $292,398.54 $301,170.50 $310,205.61 $319,511.78 increase for Inflation 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 • Building Donations of Income Non Building $319,596.81 $313,157.77 $282,640.32 $304,398.54 $317,837.17 $326,872.28 $336,178.45 $200K per year is less Total Income $600,110.57 $519,374.80 $500,199.58 $504,398.54 $517,837.17 $526,872.28 $536,178.45 than the average of 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 previous three years. Buffer to Cover Short Months If Needed General Savings $104,302.11 • Buffer would allow > 2 years of $10K/Month Shortfall Thrivent Money Market - Not Loan $45,316.00 • No Shortfall will occur with current giving history Thrivent Secured $50,000.00 County Bond $30,000.00 over a year, but some giving varies by month, so we Bond for Grading $50,000.00 see the buffer as essential. Total $279,618.11

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