I gather we are “Looking Forward to Summer” for this month’s United. There are several things we can look forward to for the summer, financially (warning – at least one of these things won’t happen – guess which! Your prize would be a pledge card!).
- We will finish the building project and get all the bills paid. Yes, that will leave us with a mortgage, and I don’t like mortgages, but mortgages are at least predictable, and I like predictable. This building project has not been predictable.
- Uncle Scrooge’s money bin truck will show up and Steve will shovel the contents into the big safe in my office at church. I should be back in my office by then so I can supervise.
- We will deal with small-but-important parts of the building project that fell out of the budget, such as Platte Canyon Road signage. These items will need relatively small targeted contributions by people who care about particular items. Jill is getting a list together.
- We will throw a big all-church party to celebrate getting back in the building. I will again refuse to dance on the flat roof.
It all seems focused on the building, right? That’s sort of where we’re at right now – getting the remodel closed out.
Financially on the remodel, we are at the late stage where all the big costs show up and dash one’s hope of it not really costing that much. While I understand the completion is delayed until midsummer now, we are finally getting the heavy equipment installed. We seem to finally have the fire department and the county planning department satisfied, and we have ordered kitchen appliances.
I finally had to draw money from our Presbyterian Investment Loan Program (PILP). I expect to finish the building with something close to $1 million in construction loan, which we will beat down to a mortgage amount of $600K to $750K as your late 2021 pledges come in. My challenge right now is to find enough cash to cover what the PILP won’t pay as we wait for those contributions. Did you guess which of my “looking forward to summer” predictions won’t happen? Yeah, that money bin truck would have been nice. I’m being careful about expending cash, which is not quite unusual.
We will have a campaign at some time to get people to invest, at PILP, surplus cash they might have and somehow don’t feel like donating to the church. This is probably a relatively small set of church members, and you know who you are. Fixed income assets like CDs are currently paying interest at rates far below inflation – almost zero – while the PILP is paying currently about 0.90% on 2 year notes. PILP investments by the congregation have the ability to lower our mortgage interest rate. Think about that option, but don’t send money yet – we will organize some kind of presentation.
Okay, the current financials. The year end numbers have been widely circulated in the annual report.
Let’s just hit the highlights. With the PPP loan forgiveness and the strong investment income, coupled with lower than budgeted expenses, we had a nice gain for fiscal year 2021. Thank you. Some of it rolls over to support FY2022 (May to April) and some of it goes to the reserve fund.
It’s too soon for numbers for May 2022, but at this point I think we will make our revenue target. Expenses tend to all show up at once at the end, so if you want May financials before the next United, email me in a couple of weeks.