The Story of the Debt

Heather serves Holy Cross as our Outreach and Evangelism Chair. She has been a member since 2015

Heather serves Holy Cross as our Outreach and Evangelism Chair. She has been a member since 2015

Building a Church and Academy is an Important Investment
By Heather Kirkpatrick

  • Do you know the story of Holy Cross’s debt? 
  • Do you want a basic understanding of financial responsibilities now and for the next 30 years? 

In 2019, Holy Cross will celebrate its 30th anniversary of incorporating as a congregation in Rocklin, California. Our congregation, recognized by the LCMS, began as a mission, and was led by Pastor John-Paul Meyer.

The original church was built in 1992 and cost $300,000. The initial mortgage loan was $492,000 for construction and other related costs.

In the year 2000, Holy Cross conducted a School and Feasibility Study, which showed the church supported the endeavor of building a school, which we now know as Holy Cross  Lutheran Academy, which has over 100 students in many programs such as: Pre-school, Transitional Kindergarten, Pre-kindergarten and Kindergarten.  

As Richard Schulz, your newly elected Stewardship Coordinator, who will take over the reins from Walt Wismar, shared,

"From my perspective as one who participated in that study that is the beginning of the formalization of a goal of the charter members of Holy Cross Evangelical Lutheran Church. Those goals and the desire of those individuals to teach and spread the Word of God here in the Placer County, California through the formation of a Lutheran School."

In the year 2003, Holy Cross stepped out in faith and decided to build the Academy, which is also known as the Education Building. Square footage for first floor is 9,476 and the second floor will add another 4,465 square feet. This was a big step and the total costs were $2,940,036. In 2007 and 2008, the church reviewed and consolidated the loans.

In the year 2017, Holy Cross continued the walk and obtained a loan of $450,000 to complete the Second Story. This is after we completed the installation of the elevator.

The current loan balances are:

  • $2,771,743.93. Loan for the education building, and consolidation of previous loans for Holy Cross.
  • $444,998.9. Loan for the second story for the Academy
  • $3,216,742.84. Total Holy Cross Debt.

Our interest rate on both loans is 3.875% (yearly adjustable) and the loan for education building matures in November of 2048. This is 30 years from now. The loan for the second story will be paid off in 19 years, in 2037. If it is easier to understand in a monthly format, our payments are $13,118.92 (principal and interest) and $2,697.36 (principal and interest). 

When the schools flourish, things go well, and the church is secure. God has preserved the church through schools.
— Martin Luther

Revenues from the Academy fund the second story loan and the Academy’s budget includes giving to the Church’s monthly income.

This investment is important to Holy Cross. As we consider increasing our giving and addressing this debt, you now have the details.

Many thanks to our Stewardship and Administrator for information for this article. All are welcome to ask further questions throughout the campaign.

A Few Other Ways of Looking at Debt

Whenever we talk about debt, it is helpful to have some comparisons in mind. To that end, we have included the following chart so you can see where Holy Cross’ debt fits with some other averages.