Financial updates
Stay informed about giving campaigns, frequently asked questions, and financial updates you might have missed from Centennial United Methodist Church.
Table of Contents
Video Resources
This is a brief video overview of Centennial's journey with insurance.
For a more detailed explanation please refer to the video on the right.
For a more detailed explanation please refer to the video on the right.
This is a more detailed overview of Centennial's journey with insurance.
For a more simple explanation please refer to the video on the left.
For a more simple explanation please refer to the video on the left.
Centennial congregational listening/discerning sessions
During a congregational meeting on January 26th, the leadership board announced their decision to pause any roof repairs until we know more about the insurance settlement. This pause gives us time to talk, dream, and discern the best way forward as a congregation. As a congregation we took the month of February to process our feelings and fears about all the potential outcomes. Now throughout March, April, and May we have organized listening/discerning sessions to gather and listen to one another about what could be and what dreams God has been stirring in you.
We will be holding 7 sessions throughout March until early May with varying times and days to try to accommodate various schedules. We will also be having two zoom options. We hope that Centennial Members & attendees will be able to join for as many sessions as you can!
These sessions will be facilitated by Rev. Dennis and Rev. Gail Alexander. “Gail and Dennis Alexander graduated from United Theological Seminary in Dayton, Ohio and were ordained as elders in 1983. Dennis served three congregations: Wesley Church in downtown Minneapolis, Faith Church in St. Anthony Village and Mounds Park Church in St Paul. Gail served three also: Woodbury Church, Epworth Church in Mpls and Faith Church in West St Paul. We are both now retired. We enjoy the city, appreciate cultural diversity, seek to support missional outreach, and love spending time with our grandchildren. We have two adult children and five grandchildren. We have lived near Lake Nokomis in South Minneapolis for the past 33 years.
We will be holding 7 sessions throughout March until early May with varying times and days to try to accommodate various schedules. We will also be having two zoom options. We hope that Centennial Members & attendees will be able to join for as many sessions as you can!
These sessions will be facilitated by Rev. Dennis and Rev. Gail Alexander. “Gail and Dennis Alexander graduated from United Theological Seminary in Dayton, Ohio and were ordained as elders in 1983. Dennis served three congregations: Wesley Church in downtown Minneapolis, Faith Church in St. Anthony Village and Mounds Park Church in St Paul. Gail served three also: Woodbury Church, Epworth Church in Mpls and Faith Church in West St Paul. We are both now retired. We enjoy the city, appreciate cultural diversity, seek to support missional outreach, and love spending time with our grandchildren. We have two adult children and five grandchildren. We have lived near Lake Nokomis in South Minneapolis for the past 33 years.
Sunday March 9th, 1:00pm at White Bear Lake
1851 Birch St.
White Bear Lake, MN 55110
Sunday March 23rd, 3:30pm at Faith UMC
2708 33rd Ave NE
Minneapolis, MN 55418
Tuesday March 25th, 7:00pm at Peace UMC
5050 Hodgson Rd.
St. Paul, MN 55126
Wednesday April 2nd, 6:00pm on Zoom/Hybrid
In person location for those who participate in Wednesday night programming at our Roseville Campus
ZOOM LINK HERE
Thursday April 10th, 10:00am at White Bear Lake UMC
1851 Birch St.
White Bear Lake, MN 55110
Sunday April 27th, 7:00pm at Peace UMC
5050 Hodgson Rd.
St. Paul, MN 55126
Monday May 5th, 1:00pm on Zoom
ZOOM LINK HERE
1851 Birch St.
White Bear Lake, MN 55110
Sunday March 23rd, 3:30pm at Faith UMC
2708 33rd Ave NE
Minneapolis, MN 55418
Tuesday March 25th, 7:00pm at Peace UMC
5050 Hodgson Rd.
St. Paul, MN 55126
Wednesday April 2nd, 6:00pm on Zoom/Hybrid
In person location for those who participate in Wednesday night programming at our Roseville Campus
ZOOM LINK HERE
Thursday April 10th, 10:00am at White Bear Lake UMC
1851 Birch St.
White Bear Lake, MN 55110
Sunday April 27th, 7:00pm at Peace UMC
5050 Hodgson Rd.
St. Paul, MN 55126
Monday May 5th, 1:00pm on Zoom
ZOOM LINK HERE
Congregational/Informational Meeting
January 26th, 2025
Led by members of the leadership board to give updates on our insurance and financial situation and the crossroads we are facing as a congregation.
Presentation from Congregational Meeting
Led by members of the leadership board, a congregational meeting was held at both the Roseville and St. Anthony Park campuses on November 3rd. This presentation was used during this meeting. View or download the Power Point here!
Roseville
The Steeple and cross structure have been removed and are lying on the ground on the est side of the parking lot. What are the plans for the steeple and cross?
A task force will be formed to generate ideas for the future use of all or a portion of the steeple and cross. If you are interested in participating on this task force, please contact Todd Ballen (taballen@comcast.net).
Are there plans to re-install the steeple and cross on the roof?
An engineering analysis has shown that the building design is not compatible with the weight and height of the steeple. As a result, the steeple and cross will not be placed back on the roof.
After the steeple and cross were removed the tarp was taken down from the roof and shingles installed. Is the roof completed?
No, the roof is not done. The damaged portion was covered with plywood and shingles to provide a temporary roof. This will protect the church better than the several tarps that have been used over the past months.
What is the timeline for the completion of the roof?
It is expected that the design of the repair solution and the fabrication of custom parts will not be completed before the weather changes. So, the plan is to rely on the temporary roof to keep the church dry over the winter and complete the repairs as early as possible in the spring.
Saint Anthony Park
I haven't heard much about the SAP roof project. What is happening with the project?
CUMC continues to be in litigation with our former insurance company over the roof claim with negotiation ongoing.
When will the roof project be completed?
We are hopeful that negotiations will be completed to allow work to proceed this fall.
General
Will Insurance cover these roof repairs? How much will Centennial have to pay toward the roof projects?
Roof projects at both campuses are included in insurance storm damage claims. We are in the middle of the design phase for the Roseville project, so don’t yet know the total cost. The SAP roof project is farther along, so we have a better idea of the cost. In both cases the negotiation with the insurance company is ongoing, so we don’t yet know how much will be covered by insurance.
I understand that these roof projects have caused CUMC's insurance costs to increase. How long do we have to continue to pay the higher insurance premiums?
When both roof projects are finished we will be able to switch to lower-cost insurance.
Update on CUMC roof projects
10/24/2024
Work has continued on the roof projects at both campuses since the last update in August. This has resulted in increased clarity on the projects; a summary is shared below. In addition, meetings will be held on Nov. 3 and Dec. 8 after worship at both campuses where further updates will be provided. Please mark these dates on your calendar and plan to attend with your questions.
Saint Anthony Park
The past couple of months have been spent assembling repair cost estimates valid at the date of the storm damage (2020) to match the requirements of our insurance policy. After receiving those estimates, the insurance company has recently agreed to use an appraisal process to determine the amount of coverage to repair the damage. Scheduling of the appraisal panel will happen soon.
Roseville
The steeple and cross structure were removed from the roof on Aug. 19 and a temporary roof applied that will remain until the project is completed. Effort since that time has focused on assembling all the components of the cost estimate to submit to insurance.
A detailed analysis has determined that due to the nature of the roof construction it is not possible to replace just the damaged area; instead, the entire north side of the sanctuary roof must be replaced. This will require removal of the entire roof and ceiling down to the supporting beams and the construction of scaffolding that will fill most of the sanctuary. Once the custom ceiling/roof boards are installed the rest of the new roof will be installed.
We have considered other options – including whether a lower-cost/simpler roof construction could be used instead of the custom tongue-and-groove boards. However, these other solutions would be heavier or otherwise incompatible with the spacing of the supporting beams. Furthermore, limitations to the load-bearing capacity of the existing wall and beam structure don’t allow the substitution of other roof types without expensive reinforcement.
As you can imagine, this project will be a major disruption since the sanctuary will be unusable for at least a month. Timing of the work is still unknown, but more details will be communicated as they become known.
A detailed analysis has determined that due to the nature of the roof construction it is not possible to replace just the damaged area; instead, the entire north side of the sanctuary roof must be replaced. This will require removal of the entire roof and ceiling down to the supporting beams and the construction of scaffolding that will fill most of the sanctuary. Once the custom ceiling/roof boards are installed the rest of the new roof will be installed.
We have considered other options – including whether a lower-cost/simpler roof construction could be used instead of the custom tongue-and-groove boards. However, these other solutions would be heavier or otherwise incompatible with the spacing of the supporting beams. Furthermore, limitations to the load-bearing capacity of the existing wall and beam structure don’t allow the substitution of other roof types without expensive reinforcement.
As you can imagine, this project will be a major disruption since the sanctuary will be unusable for at least a month. Timing of the work is still unknown, but more details will be communicated as they become known.
Financial Impact
The total cost estimate for both projects is very large. We believe that we will receive additional insurance payments, but it is unclear exactly how much insurance will pay. Furthermore, we believe that we cannot wait until the insurance situation is completely resolved before starting work on the roof projects. So, after careful consideration, at its Oct. 22 meeting the Leadership Board authorized taking out a bridge loan for up to $1,500,000 before the end of 2024. This loan will enable the projects to be started while waiting for the insurance process to continue. The Leadership Board has also authorized a capital campaign for early 2025 to fund as much as possible of the roof repairs not covered by insurance. Once the insurance payments and early contributions to the capital campaign have been received the bridge loan will be converted into a standard loan to be repaid over a period of years. Your prayerful consideration and planning for how you can participate in the capital campaign will be appreciated.
Questions?
Please contact Todd Ballen (taballen@comcast.net), Steve Torgrimson (sltorgrimson@gmail.com), Bob Milligan (milligandanes@gmail.com)
Update on CUMC Roof projects, insurance costs, and finances
8/13/2024
Members of the leadership Board provided an update on these topics after worship on Sunday, August 11 at the Roseville and SAP campuses; this provides a summary of those presentations for those who were unable to attend.
Roof Projects
We continue to negotiate with our insurance company over the roof claims at both campuses as we work with the contractors to plan the repair work. We hope we can come to an agreement and perform work at the SAP campus before the end of this year. For the Roseville campus, an important milestone this summer was the completion of an engineering study to evaluate the impact of the additional damage discovered on the sanctuary roof during the November 2023 re-shingling project. This study determined:
The steeple and cross structure will be removed from the roof on Monday, August 19. A temporary roof will be applied over the damaged area on the north side of the sanctuary roof. This will seal the roof over the winter while the custom roof boards are built – with final repair to occur in Spring 2025.
- The multi-layer tongue-and-groove boards (ceiling on one side/structural roof support on the other) need to be replaced in a large portion of the north side due to water damage from leaks in the roof.
- Building code changes require reinforcement of repaired areas to meet current ice and snow load requirements.
- The steeple and cross structure on the roof shift due to wind and temperature changes, and this is a primary cause of the water leaks in the roof.
The steeple and cross structure will be removed from the roof on Monday, August 19. A temporary roof will be applied over the damaged area on the north side of the sanctuary roof. This will seal the roof over the winter while the custom roof boards are built – with final repair to occur in Spring 2025.
Financial Update
Due to your generous contributions and careful control of expenses, Centennial’s budget was generally in good shape prior to the insurance cost increase. Both Expenses and Revenue have been generally in line with their year-to-date portion of the budget through mid-year. Leadership Board actions earlier in the year successfully reduced staff costs to meet budget objectives. The ongoing Fill-the-Gap campaign has raised pledges and contributions of approximately $42,000 to date – which goes a long way toward meeting the needs of the planned 2024 budget. (Further contributions to the Fill-the-Gap campaign will be gratefully received to help offset these significant increases in insurance costs!) In addition, the lease by another faith community of the SAP building will generate an additional $27,000 of annual revenue starting this August.
The Finance team has been working hard to develop a plan to pay these increased insurance premiums. We will likely not pay our apportionments for 2024 aside from giving that is specifically designated for that purpose. A line of credit for $100,000 from the bank has been secured – but not used yet – to provide a cash flow cushion as needed. This line of credit is a new debt obligation that also impacts the budget going forward when it is repaid. Other ways to address this expense are being pursued. Your continued financial gifts and prayers are important and appreciated as we navigate through this new insurance impact on our operating budget!
The Finance team has been working hard to develop a plan to pay these increased insurance premiums. We will likely not pay our apportionments for 2024 aside from giving that is specifically designated for that purpose. A line of credit for $100,000 from the bank has been secured – but not used yet – to provide a cash flow cushion as needed. This line of credit is a new debt obligation that also impacts the budget going forward when it is repaid. Other ways to address this expense are being pursued. Your continued financial gifts and prayers are important and appreciated as we navigate through this new insurance impact on our operating budget!
Insurance Cost Impact
In April 2024, Church Mutual notified Centennial that they would not renew our property insurance when the current policy expired in July. When attempting to locate new insurance, we discovered that the two open roof claims meant that we could not get conventional insurance. Instead, we were forced to buy insurance on the secondary market with a dramatic increase in cost. The total insurance costs increased from approximately $51,000 (2023-2024 policy year) to $260,000 (2024-2025 policy year). This obviously has a huge impact on Centennial’s budget – particularly because the insurance premiums are heavily front-loaded by significant down payments. The impact is $165,000 over what was budgeted for insurance for 2024. This new insurance increase will also impact our 2025 budget. (Note: once the roof claims are closed, then we can return to the conventional insurance market with more reasonable premiums.)
Questions?
Please contact Todd Ballen (taballen@comcast.net), Steve torgimson (sltorgrimson@gmail.com), Bob Milligan (milligandanes@gmail.com)
A giving campaign to help us pave the way to a brighter future!
Donations Received through august 31, beyond regular giving/pledges, will be matched dollar for dolla up to $25,000, for a potential $50,000 impact!
Fill the gap funds will go directly to our 2024 operating budget, which serves as the foundation for all our ministry and outreach efforts.
Go to our giving page on the website to donate and indicate you are giving to FILL THE GAP!
Current Dollar Amount Raised (includes donations and matches): $50,000 *as of August 30th