Capital-ize

• Make a list of capital items the church needs. This list should encompass all ministry areas and range from small amounts to very large amounts. Update the list every year, make the list dynamic, and make sure every item on the list supports the vision of the church.
• Publish the list and make it available to everyone. It will help members know that the leadership wants to invest in the facilities everyone uses. There is a chance someone will offer to pay for an item that appeals to them.
• Another source of capital is to use any funds left over at the end of a fiscal year. Sometimes churches have more receipts and expenses. Use those funds for capital investment needs and let the church know how the money was used and how good the building is looking now.
• Some items are so expensive and/or extensive that funding must be done over several years. Just continue to fund the project, and don’t quit halfway.
• Put “eyes” on your list: itemize (make a list), categorize (group them), analyze (decide why this is a need), monetize (guesstimate the cost), prioritize (rank it on the list), publicize (tell people), review-ize (update the list each year), and thank you-ize (tell people when things are completed).

Lead On!

Steve

Scheduling replacement/improvement

• Every building has several major systems, which need capital investments over the course of several years. These improvements need to be tracked as they are made, and tracking is easy using Excel.
  • Paint – have a list of all rooms and halls and as each one is painted, write in the important information regarding that job: date, cost, color of paint, contractor, etc.
  • Flooring – have a list of all rooms and halls as each one is updated, write in the important information regarding that job: date, cost, details about type of flooring, contractor, etc.
  • Roof – this is one of the most expensive building systems but it also lasts about 20 years. On a spreadsheet record each roof and data about the roof: date last replaced, type of roof, cost, contractor, etc.
  • Gutters – replace any copper gutters with aluminum ones with a gutter guard/helmet. A gutter guard will decrease the expense of cleaning out your gutters and thus prolong their useful lives.
  • Electrical – record any major changes to the electrical wiring and panels
  • Plumbing – record any major changes to the plumbing, sanitary sewer systems, and lawn irrigation systems.

Lead On!

Steve

Tracking utility expenses on Excel

• Monitoring expenses is a critical component of facilities administration. Use Excel to record, track, and analyze expenses for some specific areas such as HVAC and utilities spending.
• After several years, tracking this spending will greatly help in the budgeting process.
• These spreadsheets can also answer questions about why and how much exactly the church is spending money on HVAC and utilities.
• HVAC spending should be tracked by creating rows for each piece of equipment and columns for the cost of each service call.
  • Other details such as the date and description of the service call can be entered as a comment in each cell.
  • Over a period of years you can see how much each piece of equipment costs in ongoing maintenance and whether that piece should be replaced or continually repaired.
• Utilities tracking will have a row for every meter or bill for each service provider such as electricity, water, sewer, telephone, natural gas, garbage, internet, cell phones, etc.
  • Other details such as the kWh, cubic meters of water, and other measurements of use can be tracked as a comment in each cell.
  • Over a period of years excessive use or decline can be tracked and even graphed for better viewing. Sometimes this tracking will pinpoint a leak in a water pipe.

Lead On!

Steve

Motion sensors

• Humans are quite imperfect, especially when it comes to turning things off. Use motion sensors: dispensers for paper towels and soap in bathrooms; for urinal flush valves on toilets and urinals; for lights in halls, bathrooms, classrooms, and offices; and thermostats in classrooms and offices.
• Motion sensors save money by ensuring that lights and thermostats are on only when a human is present; that toilets get flushed; that only a specific amount of paper towel and soap is dispensed; and that lights are on only when people are moving around.
• It costs money to install these, but they pay for themselves in both dollars and in public relations. The average payback is about 12-18 months for motion sensors for lighting.
• Motion sensors for lights have cut the electric bills for one of my clients by 20% per year. Members think it is cool that their church is so progressive; they like to “show off” their church and talk about how “green” we are.

Lead On!

Steve

Energy savings and energy-efficient systems

• Lighting
  • Most buildings have 4-foot fluorescent lamps – change T-12 lamps to T-5s (and in a few years, once the price has come down, to LEDs).
  • In drop ceilings, remove 2×2 fluorescent fixtures and replace them with 2×4 lay-in fixtures with T-5s.
  • T-5s are 50% brighter and are 50% more energy-efficient than T-12s which saves money and helps the environment.
  • Reducing the different types of lamps reduces the amount of inventory needed on the shelf.
• HVAC Equipment
  • Over time this very, very expensive equipment will need to be replaced. In the past few years, the industry (at government prodding) has developed machines which are far more energy-efficient than ones from decades past.
  • These energy-efficient pieces come with a price, sometimes twice the cost of less efficient ones. A truly efficient HVAC piece will have a payback period of 7 years or less. Talk with the vendor to see studies about the ROI (return on investment) time period.
  • Energy is only going to get more expensive over the next several decades. A wise church will make an investment today in energy-efficient equipment so that they’ll pay less in fuel over the 20-30 year lifespan of the machine.
• Here are ways to make this happen financially:
  • Pay for the work from two fiscal years by having the work done at the end of one fiscal year but billed in consecutive months across fiscal years.
  • Pay for the work out of two separate budget lines: the maintenance budget and the utilities budget. Since the utilities expense will be less, it is reasonable for the utilities to absorb some of the initial cost knowing that in subsequent years there will be cost savings.
  • Use funds left over at the end of a fiscal year, which can and should be put back into the facilities of the church. (see “capital-ize”section)
  • Do both of the above, paying out of two fiscal years and two budget lines. That spreads the expense.
  • Continue the above approach until all projects are done.

Lead On!

Steve