Normandale Finances

Thank you for your generous year-end response. Gifts received in December 2011 totaled $312,000.

Normandale’s total 2011 receipts were nearly $75,000 over budget for the year, which enabled funding of $496,000 for mission and outreach —$46,000 more than budgeted. Total expenditures for 2011 were under budget by $4,600; Normandale ended the year with income exceeding expenses by $50,000. These results put us in a strong position for ministry as we move into 2012.

Thank you also for your indications of increased support in 2012. As of January 9, 489 Normandale families have pledged to give envelope offerings of $1,550,000—up from $1,509,000 in pledges for 2011. This increase, along with anticipated offerings of $208,000 from other families, will support a strong ministry at Normandale, including $452,000 budgeted for mission and outreach.

Because of your generosity, ministries previously supported by our Marching Off the Maps campaign will continue to receive significant support without a separate ongoing campaign. By including all of our mission and outreach ministries in our annual funding, we are reminded that we are doing ministry together in many places as the people of Normandale. Ministries previously supported only by separate designated giving have become ministries of Normandale as a whole.

2012 proposed outreach support of $452,000 includes:

• Normandale House: $130,000 to support persons in transition from homelessness
• Urban Homeworks: $ 30,000 to support the maintenance of affordable housing
• Healing & Wholeness: $ 85,000 to support elders at Normandale and in the community
• Lutheran Health Care Bangladesh: $ 47,100 to support staff who provide health care for persons in great need
• SAYFSM: $ 32,000 to minister to new immigrants with HIV/AIDs
• St. Paul’s Lutheran Church: $ 10,000 to support our partner in Hispanic ministry
• Missionary Support: $ 12,100 to support the work of the Sacks in Japan and Pastor Dana Nelson in Peru
• Mission Peru: $ 8,200 to support orphans at Huch Uy Runa

The 2011 Annual Report, which will include staff and committee reports, 2011 financial results, and the proposed 2012 budget, will be available for pick up on Sunday, January 22, one week prior to the January 29 Annual Meeting.

Thank you again for your faithful support of the mission and ministry of Normandale!

Lyle Anderson, Church Administrator

A Recent Conversation

Does Normandale still have a mortgage?

Yes, the $1.5 million mortgage at 10.5% taken out when the third floor was added in 1990; has a current balance of $670,660. The interest rate is now 6.0%. Payments on the mortgage are $7,745 per month ($92,940 annually).

Can the loan be refinanced at a lower rate?

The mortgage can be refinanced with a 2% ($13,400) penalty. Church loan rates are higher than residential rates; the best rate currently available for a 10-year mortgage is 4.875%. Refinancing now would save $31,000 over the remaining ten-year life of the loan and is planned for early 2012.

Can prepayments be made?

Yes, any extra payments serve to reduce the principal balance (and the prepayment penalty).

Thank you, anonymous Normandale member, for the $1,000 gift to reduce our mortgage balance. A current gift of $1,000 reduces the balance by $1,600 over the remaining life of the loan.

- Lyle Anderson