April News Regarding the Foundry Management Board

Friday, May 2, 2014

The Foundry Management Board, a nine-person elected group, meets monthly to discuss and make decisions regarding the management of the church. This report covers the April 2014 meeting.

At their April meeting, members of Foundry’s Management Board accepted the recommendations of its Finance and Building Committees to approve financing major renovations of the church’s meeting spaces and sanctuary. The action was unanimous.

Once a bank loan is negotiated, the proposal will be put to a congregational vote during a Church Conference tentatively scheduled for June.

After congregational approval, construction would begin in 2015 of a new fellowship hall and entryway, upgrades to the sanctuary and bathrooms, and an enlarged elevator and other infrastructural needs. The work will be funded by $3.1 million in pledges to Foundry’s Mission Possible campaign and the bank loan. Total cost of the Phase One renovations is projected to be around $5.5 million.


Management Board Candidates

In a separate action, board members approved nominees for three-year terms on the Management Board. Nominees are James Abbott, Terry Birkel, Louise Franklin, PJ Taylor, Dan Vock, and Brian Walker.

Three vacancies will be created with the expiration June 30 of the terms of Franklin, Vock, and Jane Northern. Franklin and Vock will be candidates for a second term. Voting to fill the vacancies will also take place during the Church Conference.


Financial Update

Revenues. At a meeting of the Finance Committee April 15, Chief Operating Officer Al Hammer reported that first-quarter church revenues were lower than last year, but he noted that Easter contributions should help bring the budget back into balance. Inclement weather was among one reason cited for lower attendance in the first quarter of the year.

Bicentennial. Foundry’s bicentennial planning committee has $25,000 in the church budget and has raised an additional $30,000. The bicentennial celebration will take place beginning this summer in August.

2013 Audit. A draft of the audit of church finances for 2013 has been completed and the board expects to see a final version at the May meeting. No anomalies were found in the audit, although the auditors have recommended a number of changes and reforms in Foundry’s bookkeeping procedures. The Finance Committee is committed to implementing these changes.


Mission Possible Update

Submitted by Barbara Cambridge and Stan Wellborn on behalf of the Mission Possible Communications Committee

Paul Hazen and Linda Schakel, heads respectively of the Financial Renovation Task Force and the Building Renovation Task Force,  presented the status of Phase One of the church’s long-term renovation plan at the April 16 Finance Committee meeting.

After the Financial Renovation Task Force reviewed responses from several financial institutions, the Management Board authorized a tentative agreement with WashingtonFirst Bank for a construction mortgage loan of up to $4 million. The maximum permanent mortgage would be $3 million. The seven-year term includes 24 months of interest-only payments followed by five years of payments on both principal and interest. The interest rate will be fixed at five percent for seven years.

Of funds pledged to date, $500,000 has been used for “soft” costs (architects and fund-raising expenditures). An additional $500,000 will be held in reserve for unforeseen costs.  As construction begins, Foundry will spend first the remaining $2 million pledged by the congregation.  Then, during construction, the loan will function as a line of credit and Foundry will draw from the loan only the amount of money needed to pay for construction costs. Foundry will pay interest only on the amount withdrawn. At the end of the 24 months, the church plans to renegotiate a permanent mortgage of up to $3 million.

Additional capital campaigns will raise funds to retire the debt, or to pay it down more quickly and undertake Phase II renovations to other parts of Foundry’s building.  The decision on the use of those funds will be made in the future.