Freedom For Our Future: The Elders' Report on Sunset's Financial Position
You are welcome to leave a comment or question about this announcement and it will appear below.
Q: Why is the congregation being told of the debt now?
A: As far back as we have records it appears that Sunset has had debt, so this isn’t a new announcement but rather a reminder. Through the years we have come to realize more how this debt has influenced many decisions and limited Sunset in some ways. Over the past several years we have offered stewardship classes and counseling to members who are controlled by debt. The elders believe now is the time to begin to focus on eliminating the debt that directly affects the Sunset family.
Q: What are the plans for retiring this debt?
A: The elders first ask for the Sunset family to be in prayer. At this time there is no plan for a campaign nor special contribution, but rather to bring the debt to the attention of the Sunset family and provide an opportunity to make additional contributions via the tan envelopes. Those monies will be specifically applied to the debt.
Q: What type of loan was just signed and for how long?
A. In April of 2010, a new loan was negotiated with a 4.75% interest for 5 years with a payment based on a 15 year amortization. At the end of 5 years, the interest will be renegotiated and/or pay off the remaining balance of the loan. So, the current payments are based on a 15 year loan, but the interest rate is only guaranteed for 5 years.
Q: Once the loan has been fully paid, how will the funds currently used to pay the loan then be used?
A. There have been no decisions nor commitments made for the use of those funds. However, given the size of this campus and the age of the main building, repairs and improvements are needed. When faced with these needs in the past, at times, it resulted in borrowing the required funds. As with any household, an emergency fund is needed to be able to address those needs when they arise.
Q: Can the Sunset family be assured there will be no more borrowing in the future?
A. As was promised by the elders several years ago, Sunset continues to operate within the yearly budget for operating costs of the church. However, when roofs leak, chillers go out, parking lots crack, etc. there is currently no emergency fund to make those expensive repairs, thus a loan has been chosen as the means to acquire the funds. The elders have decided from this point forward to inform the congregation of such needs and to provide the congregation the opportunity to make a contribution to such needs before borrowing. If timing and/or sufficient funds are not received, a loan may be the only option, but it is our desire to never borrow again.
Q: Was this debt mentioned during the Building for Life Campaign?
A: Yes. The overall goal for the Building for Life Campaign was $3,250,000. Had we reached that goal, we would have been able to pay for the Family Life Building, a host of other improvements that were made as well as retiring the debt. However, the funds raised from the campaign covered the cost of building the Family Life Center, so the debt is not related to that building.
Q: Was the cost to build the Family Life Center covered in the Building For Life campaign?
A: The overall goal of the Building For Life campaign was to cover the Family Life Center, a number of other improvements as well as the debt. The funds raised by the BFL campaign did cover the cost of the Family Life Center plus just over 2/3 of the cost of the elevator. A loan was taken to cover all other improvements, such as resurfacing the parking lot, new parking lot lighting and siding on the wood surfaces of the building.
Q: How does the amount pledged for the Building for Life Campaign compare to what was received?
A: Technically the BFL campaigned ended in 2007, however we continue to receive contributions. However, in March 2004 the pledge was $1,787,625 and as of March 2010 there has been $1,623,431 received.
Q: Sunset owns houses that are on a separate note; is that indicated in the total debt? If not, why not?
A: The houses have been purchased over a number of years as they have gone on the market in anticipation of the possibility of needing additional land adjacent and/or near the Sunset campus. The rent generated from the houses is basically covering the payments for that loan, which is a separate loan. Since the houses are an asset and if necessary can be sold, the elders decided to only focus on the debt that directly impacts the Sunset budget.
Q: How many loans does Sunset currently have?
A: Two. The loan that we are focusing on now is the $1.690 million. The loan for the rent houses is approximately $500,000, but the proceeds of all of the rent houses cover the loan payment.
Q: Will focusing on paying off the $1.690 million have on the contribution for missions?
A: The Sunset family has demonstrated their giving heart over the years. Whether the need be related to a hurricane, tornado, tsunami, or the needs of a family, the needs for missions have been met. Therefore, we believe that will again be the case here in that the Missions contribution will not be impacted and pray that God will continue to bless this Sunset family by having the means and heart to meet these needs.
Imagine: One Example to Retiring Our Debt
If 400 Families gave an additional $5 per week....
Additional Contribution per Week - $2,000.00
Additional Monthly Contribution - $8,666.67
Current Balance - $1,690,215.70
Current Budgeted Monthly Payment - $15,123.85
Total Monthly Payment - $23,790.52
Number of months to retire note - 84
Years to retire note - 7
