We hope you all had a chance to visit the wonderful new space in administrative building after Mass during the open house or at coffee and donuts!
In the August Construction and Schedule update, we described Washington State’s new seismic standards—expected to be adopted by the City of Seattle in 2019. We concluded that since the planned scope for the school building involves major renovation of the first floor to provide six classrooms, flex space, and administrative space, it would be wise to address most of the requirements for the first floor and mezzanine area as part of the present project. The remaining work will be done later. Completing this seismic work now is proactive and takes advantage of access to structures already under construction.
In addition, we promised to update you on the following:
- Changes to the construction budget in light of proposed new seismic requirement and other structural requirements; and
- The plan for funding the resulting increased budget.
INCREASES TO THE CONSTRUCTION BUDGET:
Increases to the construction budget approved in March of 2018 are as follows:
|Budget as of March 2018||$4,445,000|
|Additional Seismic and Structural Work||
|Increases in other costs||151500|
|Moving and storage costs||13,500|
|Revised construction budget||$5,014,000|
- In addition to the increases in construction costs, interest costs increased by $56,000 to $381,000.
- Gifts to the campaign have also increased by $91,000. Total gifts are now $3,381,000.
- It is important to note that of the overall increase in construction costs from original estimates, $1,085,000 result from additions for seismic and other structural requirements, additional safety features (fire suppression) and other code requirements.
INCREASED BUDGET FUNDING PLAN:
The combination of the increases in costs and interest identified above (offset by additional pledges) requires additional funding of $582,000. The Executive Committee has recommended to Fr. Crispin that this additional amount be funded by increasing the loan requested from the Parish Revolving Fund. In 2022, this new balance totaling $1,471,000 will be combined with the balance of our existing loan of $575,000 and repaid over 30 years. The resulting annual payments will be $55,000 higher per year than the payments on our existing loan. The additional payments will be allocated to the Parish and School budgets in proportion to the costs associated with each ministry. We believe that our operating budgets are sufficient to fund these additional amounts.
Also, we have evaluated our present financial position and concluded that our financial position is stable and our present reserves are at sufficient levels.
These plans have been reviewed and approved by the Parish Revolving Fund and the Archdiocesan Building Commission.
Thank you for your continued support of Honor the Past, Embrace the Present and Secure the Future Campaign and projects. If you have not been invited to participate in the campaign, your contribution is welcome. Together we are taking the right steps to properly care for our children, campus and ministries and provide a bright future for St. John the Evangelist Parish and School.
Fr. Crispin Okoth, Pastor
Bernadette O’Leary, Principal
Frank Feeman, Executive Committee Chair