debt reduction pp council1 11.21

8/7/2019 Debt Reduction PP Council1 11.21

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y Thanks to John Maakestad

10/28/2010


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TO DO

THE WORK OF

THE CHURCH

UNBINDUS


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So they tookaway the stone, and

Jesus looked upward and said, God,I thankyou for having heard me...

When Jesus had said this, he criedwith a loud voice,

Lazarus, come out!The dead man came out, his handsand feet bound with strips of cloth,

and his face wrapped in a cloth.

Jesus said to them,

Unbind him, and let him go.

John 11: 41-44


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St. Johns Today

y We are bound up in debt

y Programs are suffering

y Outreach is suffering

y Too much time is being spent on budgetmatters

y

Mission of the Church

is on hold

y Benevolence is restricted


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St. Johns Tomorrow

y Stronger

y More mission driven

y Focusedon programs andoutreach

y Meeting budget

y Benevolence could return to pre-debt levels


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How do we make this happen?

Reduce our debtWith a

$800,000debt reduction

24-month Appeal


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Current Situation

y The 2010 Budget needs to meet a $46,000challenge to balance

y We will need a 5% increase in member donationsfor the next year

y This is the annual budget that includes mortgagepayments of:

$85,092 and$78,240


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We Can Change the Mortgage!

With your help this

can be done nextyear!

We canUNBIND St Johns and

get on with the missionof the church.


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HOW?


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Reduce the Debt

By

$800,000With a

24-Month Appeal


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Goal 1

Before July 2011, decrease the principal by

$400,000Before July 2012, decrease principal another

$200,000With gifts to the debt reduction campaign


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Goal 2

Pay off the balance of the mortgage by

December 2012And apply any remaining funds to

second mortgage


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We Could Do Nothing!!!!


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y The mortgage will be retired in 2026

y In the long run -- 16 Years -- Are we fine???NO! We remain BOUND!

y We will pay$78,240each year for a total of

$1,232,280for an $800,000 mortgage

Do Nothing Solution


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Goal 3

Give as soon as possible Mortgage payments have two parts:

Interest Principal

Earlyin the payment cycle more ofthe monthly payment goes to

interest and less to principal. Over time the situation is reversed.

Time Is Money!!!


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Successful Capital Fund Drive


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Debt Reduction Contributions

Every dollar will be used for reduction of principal

All contributions will immediately reduce theprincipal (Sent to Thrivent within 2 weeks)

Mortgage payment could be adjusted in June 2011 toreflect smaller principal

(Sooner if $400,000 received before June!)


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What Can You Do???

A debt-reduction contribution of$10,000willreduce the mortgage payment by about $1,000each year for 16 years

Total Payment Reduction: $16,000

y A debt-reduction contribution of$5,000will

reduce the mortgage payment by about $500each year for 16 years

Total Payment Reduction: $8,000


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Goal 4

Make St. Johns your

TOP PRIORITYFor the next

24 months


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Goal 5

Include St. Johns in your Estate Planning

St. Johns Operating Fund

St. Johns Foundation

Remember St. Johns

in your Will


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Debt DownMission UP

St Johns will beUNBOUND


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To Follow the

Good Shepherd!


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y Thanks to

y John Walters

10/28/2010

debt reduction pp council1 11.21

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