Normandale Hylands has a new committee, the Debt Reduction Committee.
- The committee is tasked with understanding the current NHUMC financial status as it relates to paying down the debt obligations resulting from our remodeling/building project undertaken a few years ago. The immediate goal is to gather as much information as possible from all sources and coordinate our efforts with other NHUMC committees, and more importantly, share this information with the entire church community in the coming months.
- There are many new church families and interested parties who have not been a part of our past capital campaigns and may not understand why we have “two” budgets i.e. an operating budget and a capital budget. For example, our operating budget keeps the lights on, pays salaries, and satisfies all of the monetary obligations of the church, except the mortgage, or as we call it, the debt reduction side of the ledger. In other words, the capital budget only services our debt obligation.
- Because of their past successes, we have focused on three-year capital campaigns to help us reduce the church debt and we have always met or exceeded our goals, however, with any mortgage it takes a long time to start bringing down the principle. Over the last three years the principle on our mortgage has not come down very much. A simple analogy would be something like this: Imagine that the church has two credit cards. Every month the first credit card is paid in full and takes care of the operating budget. The second credit card pays the minimum amount required, and therefore, does not bring down the existing mortgage principle (obligation) very much. We want to change this and clarify the church’s financial situation (including how our mortgage works) in the coming months in anticipation of our fall/winter pledge campaign and beyond. In short and without going into too much detail, church mortgages have different characteristics than home mortgages and we will explain those differences in our upcoming meetings/discussions.
The Debt Reduction Team:
Bob Stehlik, Chair, Bruce Aho, Lauren Braswell, Steve Eiswirth, Brian Iversrud, Roman Kramer, Bill Larson, Mary Ruhme, and Dennis Sultany
We look forward to working with all of you in the near future and we will keep you well informed of our thoughts and insights. In the coming months, we will be having discussions using various forums and formats i.e. between service gatherings, small group sessions, informative literature and question and answer sessions. We hope you will be receptive to these discussions.