Rolling the Dice: Building Maintenance Cost Analysis
Tim Moore, Chair of the Second Century Project
 
In a continuation of our Second Century Project updates, several weeks ago, we gave our attention to the escalating maintenance costs experienced this year to maintain an aging infrastructure.  Here, we turn our attention to considering those costs over a decade and to understand those costs relative to recommended spending formula for buildings the age and size of FUMC, Charlotte.  These numbers tell a slightly different story. Rather than suggesting we are spending at too rapid a pace this year, the numbers suggest we are underspending and have been for years.  That underspending has been necessary, but that necessity has long-term consequences.

What Is Included in an Estimate
Building maintenance refers to repair, regular replacement, and general maintenance activities. This includes scheduled maintenance to keep mechanical systems in working order, preventive maintenance to upkeep systems before they break down, and actual repairs of the building’s mechanical systems.
 
It includes:

  • The repair and refurbishment of hard surfaces

  • Any part of the building for normal wear and tear

  • Occasional repainting of internal walls and the repair of occasional damage would be included

  • The refurbishment of the external façade, canopies and any regular repair and maintenance activities would be included

 
What Is Not Included
Do not confuse building management cost with maintenance costs. Maintenance costs do not include:

  • Any relevant property taxes

  • Insurance for buildings or people

  • Cleaning (janitorial) services

  • Utility bills, for water, power, gas or communications or the energy used for cooling or heating

  • Security, including concierge services

  • Commodity supplies, including washroom consumables

 
Building Maintenance Expenditures for 12 years from Line 522200 N. Tryon Maintenance*

*These totals do not include expenses for landscaping, janitorial services, utilities, etc. The expenses reported here are solely capital expenditures. 

Building Budgeting Strategies
Most budgeting software for estimating building maintenance costs suggests two different methods to calculate budgeting for building maintenance.  One method is to calculate the replacement value of the building and then to budget between 2% to 4% of that replacement value.  Our present estimated replacement value for First UMC as of December 2024 is $28,000,000.  That could translate to an annual maintenance budget range between $560,000 and $1,120,000. 
 
The other method is to note the averages spent within the industry by other large commercial buildings based on their annual report of building maintenance expenditures.  That method suggests a range between $1.50 and $3.50 per sq. ft., with older buildings typically budgeting toward the higher end and newer construction toward the lower end. First UMC Charlotte has approximately 80,000 sq.ft., including all sections and stories of the building.  The size and the age of the building would suggest that the church should expect to spend/budget annually toward that higher end of the range to avoid building deterioration.  This suggestion presumes the church to spend/budget approximately $160,000 to $240,000 per year for building maintenance. 
 
Our Current Budgeting Practice
Presently, we are budgeting $75,000 for 2025 on building maintenance and spending on average $53,268 for the last 12 years. There are several explanations for this difference between recommended expenditures to maintain the facility well and current spending rates at FUMC.  First, the church is built from durable materials that do not require as much routine maintenance but large outlays of cash generationally when sizable building systems need replacement or overall.  For example, the roof is slate on large portions of the building.  That roofing material can last well over a century but requires a significant expenditure when its replacement is required.  Second, the costs to maintain the facility at those recommended rates could predominate the current operational budget and possibly even exceed the entire budget for the church should those methods and recommended maintenance schedules be followed.  Clearly, there is an impracticality to that route.  Third, the church has intentionally delayed or deferred significant maintenance needs because of potential building projects or because of an institutional inability to match the needs of the building with the resources of the congregation. 
 
Deferred Maintenance Impacts
An example of present deferred maintenance that has been unaddressed for several years because of strategic and practical necessity include replacing outdated HVAC units, especially on the roof of the education building.  The estimate to replace those system to return AC to the entire building and to replace equipment that is anticipated to cease working in the next few years reaches well over $250,000.  The education building roof is more than a decade past its expected useful life and carries a replacement cost of approximately $100,000-$140,000.  The estimated cost to replace the elevator that has reached the end of its operational life is between $50,000 and $100,000.  These major deferred maintenance costs add up to approximately $400,000 to $490,000.  These deferred maintenance estimates do not cover any additional upgrades, refurbishments, or other “non-essential” maintenance to other systems of the church, e.g., replacing broken toilets, painting water-stained ceilings, etc.
 
A Gap between What Is Spent and What Is Needed
According to 1) the actual figures for building maintenance spent over approximately the past decade and 2) the recommended building maintenance budgeted spending rates, we are underspending if our goal is to keep the building viable for long term use and faithful work.  That reality is stark because the financial implications of maintaining such a wonderful facility would be impractical given the size of the congregation and the current church annual revenues.  Yet, there is good news associated with this analysis: there are solutions, and those solutions might position the congregation to fulfill its mission while resolving the financial pressures applied by the economic necessities of an 80,000 sq ft, one-hundred-year-old building.  That good news will be the subject of our next note.  

A Wonderful Gift, A Persisting Reality:
The Joys and Necessities of Stewarding a Century-old Building
Tim Moore, Chair of the Second Century Project

As mentioned in the note a few weeks ago regarding the Second Century Project, we are dedicating time this summer to focus on the project's next steps. Specifically, we are examining three key areas: 1) the urgent need for this project, 2) the goals we hope to achieve, and 3) the strategies we can employ to reach those goals.

The Need: An Aging Building where Vital Work Is Still Happening
To understand the urgent need for the project, we will highlight some of the  motivations driving our efforts to utilize our current facilities effectively and to adapt those facilities to meet emerging ministry needs. A primary motivator for this project is the challenge of maintaining a 100-year-old facility within an evolving ministry climate. In another note, we will explore how the costs associated with facility maintenance have been escalating. There, we will examine the maintenance expenditures over the past decade to understand how deferred maintenance can affect our ministry and mission opportunities as a congregation.

The Opportunity: Being Bold Is Part of Our DNA
One of the significant gifts of the Second Century Project is the opportunity to merge our past heritage with future possibilities while addressing current needs. Those who came before us made sacrifices and faced struggles to create a wonderful space for serving the community and witnessing to our faith. In the early 1920s, they seized the opportunity to try something radically new, coming together to form a united body for work, worship, discipleship, and spiritual development.

Today, we find ourselves at a similar crossroads. Like our predecessors, we have many opportunities ahead of us. A space built for one century can be reimagined for the next. However, seizing these opportunities requires us to have a bold spirit of letting go and courageous trust in the promises of the future. To reach that future, we must take prudent actions in the present with a sense of urgency.

Our space is a wonderful asset that should be preserved where possible, while also being adapted as needed to prepare for future ministry. At the same time, we must acknowledge the ongoing reality that our building requires substantial infrastructure support for maintenance. Our task as a congregation is to find a way to celebrate our past, manage our present circumstances, and prepare for the possibilities that lie ahead.

The Situation: Infrastructure and Financial Realities
Our resolve intensifies when we consider the rapid deterioration of some of our  building's systems and the financial strain these maintenance needs place on the congregation. While the situation is not dire, it is pressing and persistent.

For example, the building’s infrastructure needs increase due to its age. These requirements are consuming a growing portion of our annual budget. From January to April 2025, we spent nearly 70% of our allocated funds for the entire year on maintaining the building. Most of these costs are related to the HVAC system and the elevator, both of which cannot be neglected or delayed for maintenance. Without these escalating infrastructure expenses, our church budget would be nearly balanced for the year.

This chart of expenses and accompanying pie chart highlight the gift that the Second Century Project presents to our church: the opportunity to address these infrastructure issues and alleviate the financial burden on the congregation, thereby freeing us to better serve the community and grow in our faith for years to come.

There are many steps between where we are and where we need to be. Together, we can sustain the journey. Thank you for your patience and trust as we consider the best next steps for our community and our mission in these changing times.

June 5, 2025

A Promising Parallel: Trinity UMC, Atlanta and FUMC, Charlotte
Tim Moore, Chair of the Second Century Project

In the coming months, we will focus on the next steps for our Second Century Project. Specifically, we will explore three key areas: 1) the urgent need for this project, 2) the goals we hope to achieve, and 3) the strategies we can use to reach those goals.

To set the stage, it’s helpful to consider a recent initiative by another United Methodist congregation facing similar challenges. Trinity UMC, located in the heart of Atlanta, published an article detailing its efforts to revitalize its sanctuary. It is also working to transform the land and space behind the sanctuary, currently occupied by its education building and fellowship hall, into affordable housing. 

While our situations are not perfectly analogous, the similarities are insightful and can inspire our innovative thinking. Please read the article published by the North Georgia Conference and the Trinity congregation to spark our creative ideas.

March, 2025

Second Century Project Committee Update

Seven years ago—March of 2018—we began meeting around the idea of a Second Century Project. We had numerous goals: To further our mission as a church committed to Inclusion, Justice, and the Arts; to develop a means to financially sustain the congregation through the next century; to take advantage of and showcase our prime location “in the heart of the city for the hearts of the city.” And we wanted to get our plans underway before the failing infrastructure of the 1927 building forced any rushed decision.

Stuart Rose was a leader of this project from the very beginning. He and Lee Terrell as co-chairs began the arduous process of defining needs and resources and assets. They made great progress; Jeff Austin and Greg Johnson came on board to help ask the important questions and research the answers. Lee moved to Florida the next year, and Greg Mantooth took over as co-chair. Stuart and Greg have led us through the wilderness that was COVID, the death of our Project Manager Jeff, emergent concerns and
suggestions from various quarters, and now the vagaries of a questionable equity market and tariffs on steel and lumber. They’ve done a tremendous job—and still believe in this project! They feel it’s time to step down as co-chairs and assume regular membership on the committee.

We are beyond grateful. We are amazed and gratified by their vision, dedication, careful and detailed work behind the scenes, and their sense of humor and goodwill through the setbacks. Thank you so much, Stuart and Greg!

Rev. Dr. Tim Moore is assuming leadership of the Second Century Project. He’s working closely with Stuart and Greg over the next several months to absorb their extensive knowledge of the path thus far. Tim brings leadership skills from chairing past projects as well as an extensive knowledge of fundraising strategies. He sees the big picture and is detail-oriented.

We’re looking forward to the next phase of this project, which is getting the drawings and projected financing solidified.

Thanks to everyone on the Committee, past and present, and to you in the congregation who have given tirelessly of your time, patience, and imagination as we lean into this future, with hope, that God is guiding us through.

How We Arrived at the Second Century Project

First United Methodist Church is taking a strategic look at how it might align its facilities with its ministries to better serve the congregation and the community. While the beautiful sanctuary houses worship services, concerts, and plays, the support area behind the sanctuary – the offices, gym, meeting halls, and classrooms – are used less regularly. Nearing the end of their first century,  these facilities are particularly expensive to maintain and less frequently used. Second Century Project is a team of volunteers and clergy who are exploring the possibilities for maintaining the sanctuary and careful redevelopment of the back half of the remaining complex.

The Vision

The Vision for the Second Century Project continues to evolve and become clearer, as it considers these possibilities. This redevelopment could include ground lease or co-development project to build a mixed-use facility including residential, day care facilities, and church office space. FUMC’s five-star Child Development Center could operate its new classrooms from the first floor of the new complex, and its existing playgrounds could remain intact. The residential component could include mostly market-rate housing and be designed to fit into the historic Fourth Ward neighborhood. It may also reserve a portion dedicated to workforce housing for teachers, first responders, restaurant workers and others who are seeking reasonable housing options.
Finally, it would house the church offices and workspace.

Key Milestones

  • Community workshops 2020 and 2021

  • Congregational Information Session - February 26, 2023, at 12 noon

  • Congregation approval of development plan 2023

  • RFP/Complete transaction 2023

  • Construction commences 2024 and 2025

  • Construction completes 2027

  • Church ministries move into new space 2027 and 2028

Following the United Methodist Church Book of Discipline process, Second Century Project is presenting its plan to the congregation and district committee for approval. The team is actively reaching out to community stakeholders, including neighborhood associations, real estate professionals and government officials. It is also conducting public information sessions and workshops for the congregation and selected stakeholders.