A Called Church Conference will be held in the Faith & Fellowship Center on Sunday, August 26th at 12noon, for the purpose of considering a recommendation to secure a $500,000 line of credit with Entegra Bank. The Finance Committee, Trustees and Church Council have approved the recommendation for Highlands United Methodist Church to apply for a $500,000 line of credit from Entegra Bank to be used to pay monthly loan payments in the event that funds are not available in the unrestricted Capital Fund to make such payment. The line of credit is to be for 36 months at prime rate with a $3,500 commitment fee. The loan is to be paid to zero for 30 consecutive days each year. The rationale for this recommendation is to permit HUMC to pay principal payments on the $2,200,000 loan from the unrestricted Capital Fund, instead of maintaining a large cash reserve. The unrestricted Capital Fund currently stands at around $400,000, with an additional Operating Reserve of $200,000. Our monthly loan payment is about $16,000, of which $7,000 is interest. If we could pay down our loan by $350,000, the monthly interest would decline by over $1,000, increasing our monthly principal payment by a like amount. This would leave $250,000 in cash reserves and the line of credit to be utilized in the event of a monthly shortfall in contributions. We may never need to borrow against our line of credit, but having that protection would permit us to utilize our available Capital funds to repay debt, costing us 3.75%, instead of sitting in a checking account at virtually zero interest. Church Conference voting privileges are extended to all Professing and Affiliate Members of HUMC.
August
Sunday
26
Church Conference
12:00 am