Foundations Offering 2023
Foundations Offering 2023
Capital Update and Replacement Plan 2024-2033
Renew and Refurbish
2023 Goal: $116,000
Capital Update and Replacement Plan 2024-2033
Renew and Refurbish
2023 Goal: $116,000
Since 2019, the Financial Stewardship Committee (FSC), the Joint Capital Planning Task Force (JCPTF), and the Building and Grounds Committee have coordinated to develop our first Capital Asset Replacement Fund Rolling 10-Year Plan.
We engaged a consultant to help identify our capital assets with a balance sheet value of over $8,000,000. This includes things like buildings, electric, HVAC, plumbing, windows, doors, flooring, a commercial grade kitchen, plus furnishings and equipment. We now have a list of the assets, a best estimate of when they were purchased, their useful life according to manufacturer standards, and a date they likely need to be replaced. That’s the good news.
The challenge we’ve identified is most of our assets are already beyond the end of their expected useful lives. Expenses for repairs and maintenance are going up accordingly. Some assets, such as HVAC units, have stopped working and need to be replaced immediately. Within HVAC we have 33 units on the MVBC campus. Two were replaced in 2022, one is being replaced now, and 25 of the remaining 30 units are 20-years old and older.
Seeing all this, we’ve developed the 10-Year rolling Capital Asset Replacement Plan. It’s designed so all assets get scheduled for replacement the year their useful life is expected to end. The challenge is we don’t have the funds on hand to catch up all at one time.
This requires us to prioritize those assets that need to be replaced based on their impact on the operations of MVBC, The Growing Place, and Neuse Christian Academy. There are many things that need to be replaced, but don’t have a high impact of the daily functions and must be deferred. It’s going to take a number of years to catch up.
As we move into this plan, we need to recognize that until 2019 MVBC was not funding capital replacements as part of the annual budget. We started in 2019 in small amounts as it relates to the need. We also reached out to NCA and asked for their support in funding capital replacement. They began in 2019, and in 2023 got to the level of $150,000 annually. This closely matches what MVBC is contributing, including our annual Foundations Offering. You can find the history of this in the capital section of the 2024 budget materials.
We engaged a consultant to help identify our capital assets with a balance sheet value of over $8,000,000. This includes things like buildings, electric, HVAC, plumbing, windows, doors, flooring, a commercial grade kitchen, plus furnishings and equipment. We now have a list of the assets, a best estimate of when they were purchased, their useful life according to manufacturer standards, and a date they likely need to be replaced. That’s the good news.
The challenge we’ve identified is most of our assets are already beyond the end of their expected useful lives. Expenses for repairs and maintenance are going up accordingly. Some assets, such as HVAC units, have stopped working and need to be replaced immediately. Within HVAC we have 33 units on the MVBC campus. Two were replaced in 2022, one is being replaced now, and 25 of the remaining 30 units are 20-years old and older.
Seeing all this, we’ve developed the 10-Year rolling Capital Asset Replacement Plan. It’s designed so all assets get scheduled for replacement the year their useful life is expected to end. The challenge is we don’t have the funds on hand to catch up all at one time.
This requires us to prioritize those assets that need to be replaced based on their impact on the operations of MVBC, The Growing Place, and Neuse Christian Academy. There are many things that need to be replaced, but don’t have a high impact of the daily functions and must be deferred. It’s going to take a number of years to catch up.
As we move into this plan, we need to recognize that until 2019 MVBC was not funding capital replacements as part of the annual budget. We started in 2019 in small amounts as it relates to the need. We also reached out to NCA and asked for their support in funding capital replacement. They began in 2019, and in 2023 got to the level of $150,000 annually. This closely matches what MVBC is contributing, including our annual Foundations Offering. You can find the history of this in the capital section of the 2024 budget materials.
In mid-October 2023, we learned that three of the four HVAC units in Building 4 will no longer heat and need to be replaced immediately. All four of these units were installed in 2001, with estimated useful lives of 15 years. That makes them over 22 years old, so they’ve served us well.
The cost of replacement is a minimum of $116,000.
We thank the Lord for how much He has blessed us with at MVBC. As good stewards of what He has given us, it’s time we rebuild and refresh.
The cost of replacement is a minimum of $116,000.
We thank the Lord for how much He has blessed us with at MVBC. As good stewards of what He has given us, it’s time we rebuild and refresh.