February 22, 2023
Dear Friends in Christ,
Have you ever been working on a big project, and you are nearing the end and say, “I can see the light at the end of the tunnel!”?
Then the person next to you says, “I hope it’s not a train.”
Well, I can promise you it is not a train. What am I talking about? I am talking about HCKaty’s debt situation and balance. We are getting to the end of a long and sometimes bumpy road (or if you prefer train track).
Let me give you some background on the church’s debt. When the sanctuary was being built in 2002, $4.3 million dollars was borrowed to complete the project. The monthly payments at that time were over $27,000 per month (over $325,000 per year)! Through the years there have been various debt campaigns to reduce the debt, times when the church could only pay the interest on the debt (no principal), a pandemic and a freeze. Just for example, at the end of 2016, the debt balance was $1,100,000.
Like I said, a bumpy road. Because of your faithful and extravagant giving over these years, only $116,000 remains. Every month we pay $10,852 ($130,000 a year). As it stands, the debt would be paid off in January 2024, but I know that we can pay this off in 2023! This is amazing! In fact, I am so confident that we will pay this debt in full, I convinced Pastor Fred to schedule a Sunday celebration later this year when we will get to burn the note. I look forward to that day!
The purpose of this letter is to make one final appeal to get this debt paid off in 2023. I am suggesting giving beyond your normal tithe, specifically to pay off this debt. For every additional $10,852 we give in this manner, a month of debt payments is gone. Just designate on your check or contribution “Debt Payoff”.
I wish I knew a more eloquent way to say it, but it is just time for Holy Covenant to be debt free. We have right-sized the budget several times in order to meet our debt obligations. Just imagine the possibilities of an additional $130,000 a year available to the missions and ministries of the church.
This letter will be the last time you will be asked to give above your tithe for the purpose of paying down the debt on the Sanctuary by the Board of Stewards, Pastor Fred or anyone in church leadership. This is it, the last time; we are almost done! Please continue to pray for your church and what God has planned for our future.
We will be updating you on the progress we make on paying this debt off as the year progresses. If you have any questions, please let me know. Thank you again for your faithful support of HCKaty and its many ministries.
Vice Chair Board of Stewards