New Parsonage – Things are starting to roll

At their May meeting, the Trustees plan to review the final plans and estimated costs for a new parsonage.  They hope to give their approval so that Larry Young can start locking in prices for construction materials.  They are also looking for a lot to buy.

The Finance Committee developed a financing plan, which has been submitted to the bank.  The Administrative Council has authorized Lon Barkdoll and Mike Wampler to contract for a construction loan and additional mortgage.   

A lot will be purchased in the near future.  Larry hopes to have the parsonage built by the end of the year.  The $53,000 in the Parsonage Fund will probably be sufficient to buy a lot and to make the first progress payment.  The parsonage construction will be completed with funding from the construction loan and any additional donations to the Parsonage Fund.  The construction loan will be paid off with proceeds from the sale of the current parsonage and an increase in the church’s mortgage.

Thank you for your support for a new parsonage.  We’ll keep you posted on the progess.

These posts give a background review of the build-up to the church vote on April 22, when the proposal to sell our existing parsonage and build a new one was approved by a vote of 74 - 14.

• March 25, 2012 - What's Coming in April

• March 18, 2012 - The Vote

• March 11, 2012 - Financing

• March 4, 2012 - The Build Option

• February 26, 2012

• February 19, 2012

• Submit Your Question

• Background: August, 2011

Below is the e-mail from our superintendent, Dan Harry, authorizing a Church Conference on Sunday April 22 at 10:25am for attending members to vote on a new parsonage and the mortgage required:

Hello Friends,

Through this email, I am authorizing a special called Church Conference of Mackinaw United Methodist Church on Sunday, April 22, 2012 at 10:25 a.m. for the sole purpose of authorizing the Board of Trustees or elected Building Committee to construct a new parsonage and approve the financial plan to accomplish this project.

I would request that a formal resolution be prepared to include the above authorization and include authorizing the Board of Trustees to sell the present parsonage to be sent to me for my review, that the members of the congregation be given advanced access to the resolution as well as at least 10 days notice that include announcements made at two Sunday worship services.  It would be helpful for our meeting that members be invited to an informational gathering to answer questions and express concerns prior to our Church Conference.

I am aware that the Illinois River District Board of Church Location and Building have given their approval as have I, as your District Superintendent.

I appreciate the commitment of our Mackinaw Church in working toward this new parsonage.  I look forward to joining you at Church Conference on April 22nd.

Dan P. Harry
Illinois River District Superintendent
Illinois Great Rivers Conference
3800 W. War Memorial Dr.
Peoria, IL 61615
dharry@igrc.org
(309)692-0421

UPDATE:  March 25, 2012 - What's Coming in April

Town Hall meeting on Sunday, April 15, at 10:25 a.m. in the sanctuary

The purpose of the meeting is to give you a last chance to ask questions and discuss the recommendation to build a new parsonage.  The meeting will be led by B.J. Floyd, who will remain neutral during the proceedings, and is not a member of the Parsonage Committee.  The Parsonage Committee will be available at the Town Hall meeting to answer your questions.  Questions previously received in the comment box will be addressed at this time.  During the meeting, nursery care will be provided and a combined Sunday School class for ages 3 through 6th grade will be held in the Kid’s Quarters.

Church Conference on Sunday, April 22, at 10:25 a.m. in the sanctuary

The purpose of this meeting is to vote on the resolution (sample ballot) shown on the back of this page.  The meeting will be presided over by our District Superintendent, Reverend Dan Harry.  During the meeting, the children will meet in the nursery and Kid’s Quarters until the vote is completed, and then there will be all Sunday School classes as usual.  The results of the voting will be announced immediately.

Over the several Sundays leading up to April 22, there have been a variety of communications to prepare you to vote.  These communications are displayed here and in the Fellowship Hall at the church.

If you would like to raise any questions, please submit them using our online form or by direct email to Mike Wampler, Parsonage CommitteeChair.  You may also submit questions in writing in the comment box in the Fellowship Hall at the church.

UPDATE:  March 18, 2012 - The Vote

A Church Conference has been scheduled for April 22, at 10:25 a.m. to vote on the purchase of a new parsonage and mortgage required.  The Illinois River District Board of Church Location and Building and our District Superintendent have given their approval of the build plan, pending the approval of the vote of the Church Conference.

Question 1: Why does the Conference need to approve the purchase of a new parsonage?  It’s required by the Book of Discipline, the policies and procedures for all United Methodist Churches.  Since the Conference provides us with our pastors, standards for parsonages facilitate the free flow of pastors between churches.  The requirements also insure the members of the congregation get to vote on the purchase of church property at an all Church Conference meeting. 

Question 2: What is a Church Conference?  It is a meeting presided over by the District Superintendent that culminates in a vote by members of the congregation. 

Question 3: Who gets to vote?  Anyone in the congregation who is a full active member of the Mackinaw United Methodist Church may participate and vote during the Church Conference.  This includes youth who have been confirmed into membership prior to April 22.

As per the Book of Discipline of the United Methodist Church, members must be present at the April 22 Church Conference in order to vote.

Question 4: Will the voting be by ballot or by a show of hands?  It will be by ballot.  A proposed ballot has been reviewed and approved by our Church Council.  As soon as it is approved by our District Superintendent, we’ll show it to you.  

If you would like to raise any questions or suggest future communications, please submit them in writing in the comment box in Fellowship Hall or send an email to Parsonage Committee Chairperson, Mike Wampler.  You may also submit questions online.

Communications about a new parsonage will be placed here on our website and in the church Fellowship Hall.
 

UPDATE: March 11, 2012 - Financing

Question 1: How much will it cost to build a new parsonage?  It is estimated that a new parsonage (including the lot) will cost $220,000, the sale of the current parsonage will bring in an estimated $110,000, resulting in additional estimated funding needed of $110,000. 

This compares with an estimated $74,700 of possible future expenditures to bring the current parsonage up to standard for pastors.

Also, the build plan developed by Larry Young, with input from the Parsonage Committee, will give us a lot of house for the money.  Larry has offered to build the house at his cost.  He has also asked for discounts from his subcontractors.  This has the potential to save us $40,000.

Question 2: How much of the $110,000 will we need to borrow if we build a new parsonage?  After the new parsonage is built and the old parsonage is sold, we estimate that we will have increased our debt by $56,889.
   
The current balance in the Parsonage Fund is $53,111.  A construction loan could grow to an estimated $220,000 less any amounts paid from the Parsonage Fund.  The construction loan would be paid off with the proceeds from the sale of the current parsonage, the Parsonage Fund, and a mortgage.  The mortgage is estimated to be $56,889 ($220,000 - $110,000 - $53,111).

Question 3: What would our payment be if we borrowed an additional $56,889?  If we entered into a new separate loan for the parsonage, we would have an additional monthly payment of $472, assuming an interest rate of 5.75% spread over 15 years.  A loan to a church is considered a commercial loan, and the interest rate is higher than those offered on a home loan.

Heartland Bank has agreed to give us a construction loan, bridge loan, and a mortgage if the congregation decides to go with the build option.  The bank has also agreed that a parsonage loan could be blended with our present mortgage on the church if we desired, which has the potential to significantly reduce our monthly mortgage payment.

It should be noted that the numbers in this article could change since they include estimates and there could be additional contributions to the Parsonage Fund.

If you would like to raise any questions or suggest future communications, please submit them in writing in the comment box in Fellowship Hall or send an email to mhwampler@aol.com.

UPDATE: March 4, 2012 - The Build Option 

The Parsonage Committee has presented a build plan to the Church Council and to the District Building Committee of the Illinois River District of the United Methodist Church.  Each group made some suggestions, and now it's time for the congregation to see the build plan, which the Parsonage Committee recommends as our best option.  We have not given up on the purchase of an existing home, but all the many homes we have checked out so far do not meet our requirements.  Also, the build plan developed by Larry Young, with input from the Parsonage Committee, will give us a lot of house for the money.  Larry has offered to build the house at his cost.  He has also asked for discounts from his subcontractors.  This has the potential to save us $40,000.

The build plan developed is for a 2,000 square feet single-story home with 3 bedrooms, 2 full bathrooms, and a full unfinished basement for storage and future expansion.  It has been designed to meet all Conference standards for a parsonage, including addressing the major deficiencies of the current parsonage: handicapped accessible, two full baths with showers, family room, dining room, modern energy-efficient central heating, insulated windows and doors, and a double-car garage.

Some of the features that Larry has designed into the plan include the following:

• House will be a turnkey product
• Schrock cabinets (Larry & Linda have also designed the kitchen)
• Post formed kitchen counter tops 
• Master bath
• Exterior walls with 2 x 6 construction to meet current energy codes (R 19 in exterior walls and R 38 in ceiling) 
• Andersen windows, low E glass, factory paint white jams 
• Built in folding table in laundry room 
• Oak six-panel interior pre-hung doors stained 
• Oak base and casing stained to match doors 
• Open stair case to basement with oak railing 
• Drywall and paint for finished walls and ceiling (ceiling textured except for kitchen) 
• Stud walls in basement to allow for floor joist design that compliments basement layout 
• Water closet rough-in in basement for future bathroom if lot allows 
• Cathedral ceiling in great room (trusses designed to accommodate) 
• Front elevation brick and vinyl façade as per front elevation - all other elevations to be vinyl
• 16’ x 12’ patio deck at rear elevation off of great room 
• Architectural 30-year shingles 
• Bathroom accessories provided (towel bars and mirrors) 
• Closet shelves and rods provided

It should be noted that a member has reminded the Parsonage Committee and Trustees of the importance of including adequate monies in the budget to build a fund for future maintenance of a new parsonage.  Thanks for this reminder so that we don’t repeat the mistake we made with the current parsonage.

The Parsonage Committee is excited for you to see the build plan that is displayed in Fellowship Hall.  Please stop by and check it out. 

If you would like to raise any questions or suggest future communications, please submit them in writing in the comment box in Fellowship Hall or fill out the online question / comment form.

UPDATE: February 26, 2012

As communicated last Sunday, a Church Conference has been scheduled for April 22, at 10:25 a.m. for attending members to vote on the purchase of a new parsonage and the mortgage required.  Over the next several Sundays leading up to April 22, there will be a variety of communications to prepare you for this vote.

Question 1:  Why are we considering a new parsonage?  During the selection process for a new pastor last year, the Pastor-Parish Relations Committee was reminded of the deficiencies of the current parsonage and that it does not meet the standards set by the Conference.  The Trustees have also questioned the value of continuing to make large annual expenditures on the current parsonage.   Last March, the Church Council voted to authorize the Trustees to develop a plan for replacing the existing parsonage.  A Parsonage Committee was subsequently formed and after much study, is recommending to the congregation that we acquire a new parsonage. 

The Parsonage Committee has considered that a new pastor does not have any history or fond memories of a church’s parsonage like we do.   It just offers the potential to be their home for the next several years of their lives.  It should be inviting, efficient, comfortable, and a place the new pastor can be proud of to entertain guests and family.  It should be commensurate with the new pastor’s education, experience, and the salary we offer.

Question 2:  Why is the Parsonage Committee recommending that we proceed with the purchase of a new parsonage?  The current parsonage does not meet the standards set by the conference, it would cost a lot to bring up to standard, and it would still be a 50+ year old house.

During the Town Hall meeting on August 28, 2011, the Parsonage Committee recommended that we raise half the money needed for a new parsonage ($55,000 estimate) as a way to voice support and move forward.  It is also a financially responsible approach.  As mentioned last Sunday, you have contributed $53,086 to purchase a new parsonage, which is close enough to the goal to plan for a vote.

Question 3:  Many of the Open House comments suggested fewer improvements or additional improvements.  Why don’t we just continue to make these improvements over time?  Based on your comments, we added two major improvements to our list of possible future expenditures: Replace low voltage wiring system – estimated cost $6,000 and Replace kitchen cabinets – estimated cost $10,000.

Our list of possible future expenditures now totals $74,700.  If we pursue fixing up the current parsonage, the list of improvements (and the priority of fixes) would likely change due to deletions and additions perceived important.  The bottom line is that it would cost a lot to bring the parsonage up to standard for pastors.

The committee has concluded that if we continue to spend $5,000 to $6,000 per year for improvements, it will be difficult to keep the parsonage maintained, and it will still not be up to standard for pastors.  It will still be a 50+ year old house, and the improvements made will not significantly increase the value of the parsonage.

Next Sunday, March 4, our communication will be to show you the option of building a new parsonage.  Future communications will include how a Church Conference (the vote) works and how we would finance a new parsonage.

If you would like to raise any questions or suggest future communications, please submit them in writing in the comment box in Fellowship Hall or send an email to Mike Wampler.

Communications about a new parsonage will also be placed on the bulletin board in the Fellowship Hall.
 

UPDATE:  February 19, 2012

As discussed at the Town Hall meeting on August 28, 2011, one of the next steps was to try to raise $55,000 (half the money needed) before proceeding with a purchase.  We are pleased to report that you have contributed $53,086 to purchase a new parsonage, which is close enough to the goal to start planning the following next steps:

1.  The Parsonage Committee has presented a build plan to the Church Council and to the District Building Committee of the Illinois River District of the United Methodist Church.  Each group made some suggestions, and now it's time for the congregation to see the build plan, which the Parsonage Committee recommends as our best option.  We have not given up on the purchase of an existing home, but all the many homes we have checked out so far do not meet our requirements.  Also, the build plan developed by Larry Young, with input from the Parsonage Committee, will give us a lot of house for the money.  Larry has offered to build the house at his cost.  He has also asked for discounts from his subcontractors.  This has the potential to save us $40,000. 

2.  Church Conference has been scheduled for April 22, at 10:25 a.m. to vote on any purchase and mortgage required. The District Building Committee has given their approval of the build plan, pending the approval of the vote of the Church Conference.

Although we are close to the goal to raise half the money required of $55,000, we would appreciate any additional donations that would reduce the money needed to borrow.  If you would like to help the church reduce the amount that we will need to borrow, please note on your check or envelope “Parsonage Fund” when making a contribution.  Please give priority to your current contributions that fund the budget, Building Fund, and missions.

For your information, the current balance in the Parsonage Fund of $53,086 includes donations from IRA’s and stock, which have the potential to reduce your taxes:

• IRA owners over 70 ½ can make a direct transfer from their retirement account to eligible charitable organizations (available in 2011, would have to be extended by Congress for 2012).  The donations count towards the required minimum distribution, and the distributions are excluded from taxable income.
• You may also donate appreciated stock instead of cash.  If you have owed the stock for more than one year, you can deduct the full market value as an itemized deduction, and you don’t have to pay tax on the profit.
• Consider a longer-term gift by including the church in your will.

If you have any questions about these special contributions, please contact the Financial Secretary, Sharon Malone, at (309) 392-2348 or malone.leon@mchsi.com.

Thank you for your faithful giving to the Parsonage Fund!

Background Information prepared by Parsonage Committee in August, 2011 (click on title to open document):

These are PDF files.  You will need Adobe Reader to view or download them.  If you do not have Adobe Reader on your computer, it is available as a free download.  Click here to learn more.  If you are unable to view or download these, copies are available in print at the church. 

• Comments received from Open House 

• Recent expenditures on current parsonage

• Estimated future expenditures on current parsonage 

• Parsonage Committee presentation 

• Questions and Answers