I don’t know what the official theme is for this month, so I’ll make up one: “Dogs and Frisbees.” Our current financial situation is like two dogs and a frisbee, and every toss and return of the frisbee we are a little further away than we started out.
First, the financial puppy. We toss the frisbee down the field, and the dog runs and catches it, and brings it back, but not all the way back. The dog did pretty good in May; financials were on target, with revenue (giving) of about $52,900. A little lower than hoped for, but expenses were also lower than planned at $51,602. We actually had a tiny gain where we budgeted a $3,000 larger tiny gain. This is pretty good; our frisbee chaser got the frisbee almost back to us.
I don’t have June financials yet, but based on what I’ve seen so far, I think the critter stopped off to chase butterflies. Butterflies have no cash value and the frisbee is looking pretty far away from the target. Yeah, the giving is just not holding up for June. It’s one of the many things that makes it so important for us to get back into our building.
So, second, the building puppy. This dog’s got problems. The building committee is doing everything it can think of to get the building finished in a nowish timeframe, and the builder says August 1, but they found more problems – the roof where the steeple sits is rotten and must be replaced, and there’s a nationwide lumber shortage. That brings both schedule and cost threats. The cost of the remodel goes up every day we’re not done – but we remain determined to get the thing done soon and hold the contractors’ paws to the fire on getting it done. So, this puppy is way down the field and has found a pile of rotten wood she has to investigate and the financial frisbee is a long way from the goal and sinking into the mud. We can and will fix it but it’s going to be harder than planned.
I paid the June invoice for the building – it was “only” $168K and I paid it from cash, not the PILP mortgage. We’re $390K into the construction loan at this point and I fully expect to draw the rest of the $1M construction loan for the July payment, which should have the HVAC and similar equipment on it. The builder is currently projecting a cost of $834K to finish, which between the PILP loan and the remaining cash we should make, but money will be tight all summer and fall. Please keep up your giving.
This is a cash flow issue now as well as a building cost issue, and the Finance Committee has put in controls to review larger purchases, and “larger” is down to $1,000 before we want to review it.
On the brighter side, expect strong youth and children’s programs once we get back in the building – they’re actually happening now – and a spectacular music program assisted by lots of new sound equipment like the soundboard hardware and microphones.
Gotta go play with a dog.