Frequently Asked Questions
Question: What are we hoping to accomplish with this three-year campaign?
Answer: We want to not only continue to make our monthly payments on the building loan as
we are already doing but to accelerate our payments and pay the loan off more quickly than we
would at our current rate. If we can increase our current giving by just ten percent, we can pay
the loan off in just over ten years instead of twelve.
Also, in the spirit of helping others in all we do at Christ Church, we will give a tithe (one tenth)
of all money received in the Building Fund over the next three years divided equally between the
Bethlehem Center and the Volunteers in Medicine Clinic.
Question: Why is it so important to pay the debt off more quickly?
Answer: One of the most important reasons is that paying the debt off and being free of monthly
payments will allow us to do even more in missions, helping others in our community, our
country, and around the world.
Also, paying off the debt early saves a lot of money in interest. By increasing our giving to the
Building Fund just ten percent and cutting almost two years off the loan period will save the
church about $200,000 – almost enough money to build another orphanage!
Question: What is the total church debt now?
Answer: Our total debt is just over $3.8 million, which is less than we had expected. We built
the new addition in tough economic times when both construction costs and interests rates were
at record lows, and the Building Committee showed excellent stewardship in getting us the new
addition we needed at costs that were less than expected and approved.
When we began the new addition, we had reduced our building debt to $1.2 million. Giving to
the building fund during construction allowed us to complete the $4.8 million addition and finish
with a total debt of $4.5 million, not $6 million. Since occupying the new addition in 2011, we
have repaid almost $700,000 in principal, reducing our debt to just over $3.8 million.
Question: How has the new building addition worked out, and is it meeting our needs?
Answer: As a result of having the new space, we have improved our worship schedule and
added a fourth service on Sunday mornings, and average worship attendance is increasing. Our
Youth ministries are flourishing in the new Youth Center, and we have been able to start new
Journey classes and other small groups in the new classrooms. The new building addition is
meeting our needs very well.
In fact, we believe our existing building facilities will serve our needs for the foreseeable future
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even as we continue to grow. We have space to grow in worship, and our current facilities will
allow us to add services, classes, small groups, and staff without having to increase our square
footage for some time.
Question: You mentioned low interest rates – what are the terms of our building loan?
Answer: We currently have an adjustable rate loan with an interest rate of prime (the rate at
which banks loan money to preferred customers) minus 1.05 percent. With the prime rate now
at 3.25 percent, its lowest in five decades, this gives us an extremely low effective annual interest
rate of 2.20 percent at this time. We have the option to convert the adjustable rate to a fixed rate
if we foresee interest rates increasing rapidly in the future. This option protects us from
exposure to the effects of a rapidly increasing interest rate environment, which could occur in a
rebounding economy. At conversion, the fixed rate would be at the Ten-Year Treasury rate plus
2.25 percent.
The incredibly low current interest rate is another great reason for each of us to give as much as
we can now to the Building Fund, as most of our money now goes to pay principal instead of
interest.
Our current loan matures in 2015, and we will secure a new loan at that time.
Question: How much is our current monthly loan payment?
Answer: $27,000 each month
Question: What does it mean when I make a pledge to this campaign?
Answer: When you pledge, you are telling the church your best estimate of the amount you plan
to give weekly, monthly, or annually over the next three years to the Building Fund. If a
financial crisis or hardship occurs and you cannot pay as pledged, we ask that you give as you
can. If persons are not comfortable making a pledge during the campaign, we ask them to still
give as they can to the Building Fund during this three year period.
Question: I understand that about $1.4 million was pledged in the last three-year campaign that
will end soon. Has the money been received into the Building Fund as pledged?
Answer: Yes, people have actually given about $60,000 more than was pledged so far. For the
exact amounts pledged and received, see the link on the “I’m All In” article on our web site at
www.christplace.org.
Question: What is the difference between the Operating Fund and the Building Fund?
Answer: The Operating Fund or budget pays for everything other than building construction and
the associated debt – it pays for all our missions, ministries, salaries, utilities, and our giving to
the United Methodist connection worldwide. The Building Fund is separate from the Operating
Fund. It is used specifically to pay for construction of new facilities and for repayment of
associated loans.
Please do not reduce your current giving to the Operating Fund in order to give more to the
Building Fund.
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Question: Our family is giving regularly to the Operating Fund. How do we designate money
for the Building Fund and keep it separate from our giving to the operating budget of the church?
Answer: If you wish, you may write separate checks for your contributions to the Building
Fund, putting “Building Fund” in the memo section of the check. However, many persons write
combined checks, simply designating the amount for “Operating” and the amount for “Building”
in the memo section of their checks. Either way is fine.
Additionally, you may now give electronically by using our e-Giving feature and can designate
the fund “Operating” or “Building” with this method also at www.christplace.org.
Question: Can I contribute stocks, bonds, or other financial instruments instead of making
weekly, monthly, or annual payments by check to the Building Fund?
Answer: Absolutely, and the church will cash in those types of in-kind contributions and utilize
the resulting funds the same as if you had given cash or written a check.
Question: One final question – when should we start giving toward our pledge to the Building
Fund?
Answer: Whew, I’ve been looking forward to this final question! Please start giving on this
new pledge to the Building Fund in September.
If you have a question that is not answered here, feel free to e-mail your question to
Pastor David Hall at [email protected] or call him at 423-240-0069.
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