Dreams and Visions is a three-year Capital Funds Drive with the goal of retiring, or significantly reducing, our $2 million building debt.

The outstanding principal amount owed is just over $2 million.  The current interest rate is 5.96%, which results in a monthly mortgage payment of $16,425 (or $197,100 per year).  The mortgage is structured so that the outstanding balance is due to be paid in a “balloon payment” in July 2010.

Between 1987 and 2003, APC built three buildings and conducted a capital campaign in connection with each phase of construction.  While each campaign was successful, we also borrowed money to fund construction of each of the three buildings.   At each phase of development, our space needs exceeded our financial means to pay for construction without incurring debt.  When the education building was completed in 2003, the total debt was $2.4 million.

Mortgage payments are included as part of the annual operating budget.  In fact, the mortgage payments account for 16% of our 2009 budget and are the third largest expense item, behind personnel costs and ongoing property expenses.  As the result of prudent planning years ago, capital reserves were established to help fund the mortgage payments as our other ministry expenses grew.  For several years now, we have had an annual deficit of approximately $120,000, which has been funded using the capital reserves.

Since completing the Education Building in 2003, we have known that another capital campaign would be necessary in order to pay off the mortgage.  In fact, we are precisely where we planned to be – with one significant exception.  The original plan was to conduct this campaign in 2007.  However, when our senior pastor moved to Texas in late 2006, the original plan was altered.  The Session realized that it would be difficult to conduct an effective capital campaign during a transition in pastoral leadership.  Now that the transition has been successfully completed, we must now deal with the debt.

We cannot delay addressing this issue, even during a recession.  Our capital reserves will be depleted by the time that the balloon payment is due in July 2010.  While new mortgage financing will be required in 2010, we must significantly reduce the amount of our annual mortgage expense in the next few years or risk impairing vital ministries and programs.  The only way to accomplish this is to eliminate or pay down the mortgage principal in a meaningful amount.

This is an especially challenging time, which makes it difficult to set a precise financial goal.  Accordingly, our goal is to reduce as much of the $2 million mortgage debt as we possibly can by 2012.  Therefore, we are asking for 3-year financial commitments that will be used specifically for this purpose.

Pray.  Pray for God’s continued guidance for APC’s specific ministry.  Pray that God will provide you with wisdom and guidance as you consider how you might support the ongoing mission and ministry of APC, both with your talent and your material resources.  Pray for all those who participate in and are affected by the work God is doing here.  Then, with a willing spirit and cheerful heart, make a commitment to support this important step in the journey of this congregation.