Here’s a reminder, plus some information to read ahead of time:
St. John’s United Methodist Church
May 26, 2015 – 7:30 PM
Election of a Secretary
Motion: The Trustees move that the Church Conference approve the application for a $32,500 loan from the United Methodist Foundation of New England, at an interest rate of 5%, to be repaid through the Current Expense budget for up to 6 years.
+ + + + +
Original Bid for replacement of boiler and related expenses 33,945.00
Eventual expense for the work 31,626.69
There were a couple of items from the original bid that the Trustees decided not to include in the work at this time.
Finance Charges since completion of the work 752.79
TOTAL DEBT $32,379.48
Church Council/Trustees seeking approval for loan of $32,500.00
The loan would come from the United Methodist Foundation of New England, taken against our invested funds, at an interest rate of 5%.
How will this loan be paid off?
Heating Oil bill in 2014 was $16, 481.87
The Trustees were told to expect at least a 40% savings per year, which would amount to $6,592 per year. With $16,000 budgeted for heating expenses in 2015 (and for the next few years as well), anticipating a 40% savings, would enable the loan to be paid off in less than six (6) years (Note: monthly payments would be approximately $523.41).
Financial gifts given specifically toward the cost of the boiler can be applied toward the principal at any time, thereby paying the loan off early, and saving interest costs.