The September revenue/expense figures show solid picture for pledge income along with lower expenses as the program year is just getting started. Rentals are still limited since indoors spaces are still not in use due to current COVID policy. While there are various facilities project in motion, all other expense areas are at or below budget.

Key Balances (as of Sept 30, 2021)

Net Operating Total YTD	$64,308
General Reserve Fund	$26,798
Strategic Initiative Fund	$393,836 ($180K committed to 2021-22 budget)
Campus Needs Fund	$298,113 ($90,194 in fund + $208,009 in Self Help CDs)

Projects

Campus meeting spaces. We continue to provide support for outdoor meetings on campus. Some ERUUF groups have shifted to online meetings while other continue to meet outdoors. We are exploring ways to maximize covered outdoor space on campus or create new spaces in support of RE plans for outdoor programs. Also, outdoor heaters will be set up this fall to support meetings as the weather turns cooler.

Fellowship Hall Deck. The aging boards to the left of the Fellowship Hall entrance will be replaced. Thank Rick Searles for leading this project!

Nursery Floor and HVAC. A new wall HVAC unit and new bamboo floor were installed in the nursery this summer.

Tree Replacement. The Garden Task Force has developed a tree replacement plan for the area cleared from solar shading. After stump grinding and drainage remediation, native trees and plants will be planted this fall.

Care Building Deck. Replacing deck boards began this week and we are exploring options for a deck covering to create a more inviting outdoor space for RE and other groups.

Sanctuary. The AV project is now complete. The sanctuary is no longer a massive construction zone. The sound in the room is noticeably better with the new speaker. The Tech Team received training from Kontek this week and we will begin integrating the new system with our worship process. We may be in learning mode for a bit as we learn how to adjust workflow for Sunday mornings.

Loan Update

Application submitted to BB&T in mid-September.

Total Project Invoices: $152K      ERUUF Down payment: 10%

Amount of Loan: $137K Term: 5 years, 3.5%        Closing Costs: $630

*Note: once application is completely processed, the actual rate may vary based on current market rates. Other lenders were contacted initially but did not offer competitive loan terms.

Hopefully the loan process will be complete by the end of October.

Background on AV Project and Loan Process

Here is a little context for the project and loan process. This has been a complicated project with multiple vendors and timelines. The lender required invoices to process the loan, not just project estimates. There were eight different vendors involved, not just Kontek, the primary AV installer. As we got further into implementation we quickly learned there were many aspects of the project that Kontek would not handle. For an additional $30-50K+ we could have found a firm to take on the role of general contractor, but given the scope and budget for the project, we chose to manage this in house. This means that Daniel, and our IT consultant Chris Egle, served as the general contractor to weave together all the various subcontractors and timelines. At times this was frustrating and puzzling. For example, I contacted 8 different electrical firms, multiple times, and heard back from one. That one would only quote part 1 of the installation, and not give a second quote until AFTER we completed and paid for part 1. Granted it was a complicated install, but this kind of thing made the construction schedule challenging.

In the middle of the summer, even though we were told this was already vetted beforehand, we had to secure a consult from a structural engineering firm to verify the load limits for the ceiling beams for the rigging firm that was installing the speaker and brackets for the screen. That’s $2,000 we didn’t have in the original plan. I could go on, but share these details to explain why it took so long to apply for the loan in the first place. Invoices for the entire project, not just Kontek, were not all in hand until mid-September. Then applying for an equipment loan as a non-profit institution is not like a homeowner applying for a simple home refinance. ERUUF has no credit score. Instead we had to supply financials from the past three years, member data, pledge data, etc. Even though this was submitted a month ago, we are still waiting for response from the underwriters at BB&T, which is in transition to Truist, delaying the process further.

To add to the complexity of the situation, we chose to do some maintenance work while the whole sanctuary was prepped for construction and we had two lifts rented. Multiple areas of mold on the high ceiling were cleaned, sanded and refinished. Most of the room was repainted and sealed to redress a moisture bleed issue creating vertical shadowing on the walls due to metal beam construction in the walls. Also, insulation in the entire ceiling area of the back of the sanctuary area that had been falling down is now secured. We didn’t discover this problem until we climbed up to spec out the space for the projector platform. Edgar Proano, who has completed many projects for ERUUF over the years, did an amazing job with all of this work. All of this maintenance work was paid for out the Campus Needs Fund and not billed as part of the AV installation.

AV project installation summary:

Long throw projector for size of room

16x9 retractable screen

New digital speaker array with subwoofer

Confidence monitor for presenters

New screen and speakers in chapel

Retractable window screen

New hearing assist devices

New electrical subpanel for the equipment

Wiring and integration with current sound board, camera, and AV desk

As a list it looks simple, but it has been a complicated journey. However, the bottom line with this project is not just about numbers and equipment. The new system provides ERUUF greater capacity in developing multi-platform and livestream worship. The ways we can grow in this capacity will be the next part of the story. It is the bold visioning and ongoing generosity of the Fellowship that makes projects like this possible.

Please refer questions on financial details to the Director of Administration or the Board Finance Advisory Committee.