How Much $$ to Ensure the Long-Term Viability of Our Facilities?

GIVEN THE AMOUNT OF FUNDING that the board’s policy has allocated from dues for maintenance and repair purposes, it is more than sufficient to pay for Mishkon’s regular, periodic maintenance needs.

A typical annual termite inspection

And enough additional funds are likely to accumulate from these sources (as well as from the regular Building assessment, the Kleinman Family Fund, and any bequests) to fund the future replacement or restoration of worn components, as well. 

Replaced patio flagstone, ready for grouting (Oct. 2021)

However, there are three aspects of facilities care that are not provided for by regular funding: (1) the present replacement or restoration of worn components—that is, catching up on deferred maintenance and arresting the processes of degradation; (2) several new capital improvements worth doing soon; and (3) a cash cushion to allow big-ticket items to be paid for when the need arises. In other words, we need a sizable infusion of funds to get us over the hump of our present humble condition.

Sanctuary roof, looking westward

In this post, I will discuss the target funding levels both for our urgent present facilities needs and for our future ones—and the prospects for achieving those.

So how much $$ are we talking about when discussing the needs for “present replacement or restoration” and “worthwhile new capital improvements”? 

Before I offer an answer, let me give two caveats. First, I am speaking only for myself (so far) regarding my suggested spending priorities. Second, what follows are back-of-the-envelope calculations, for budgeting purposes. They are based on task estimates from vendors and third-party experts, but these are sources of varied precision; we’re not dealing here with actual bids.

At any rate, I estimate that it would take about $300K (±20%) to accomplish all of the following:

• a sanctuary roof that won’t leak for 15 years;
• structural wood that is free from compromise by water, dry rot, or termites; 
• reliable connectors between the walls and the tie rods overhead; 
• walls that are seismically anchored and strengthened; 
• a shaftless elevator that connects the basement with the ground level; 
• fire safety sprinklers inside the sanctuary; 
• watertight and repainted exterior walls;
• restored stained-glass windows that will seal properly, on the long walls;
• two sanctuary restrooms that are ADA compliant; and
• restored and repainted interior sanctuary walls and ceiling. 

Regarding a cash cushion to enable the timely funding of big-ticket B&G projects as they become necessary, $50K would be comfortable.

Meanwhile, my informal conversations with members leads me to believe that we can raise $150K from willing donors over the next 2 years. There’s a pool of members who would feel good about giving extra—beyond their regular donations—so as to upgrade Mishkon’s facilities in these ways. (Are you perhaps one of those folks?) In other words, the remaining amount of funds that we need to find somewhere is another $200K. With that, we would be in decent shape.

That’s where the proposed sale of the Powerhouse Building could make all the difference. The $200K that I have arrived at above—it amounts to less than 10% of the projected net proceeds of such a sale. 

Let me underscore: To the extent that I have any say about how such Powerhouse proceeds would be allocated, such funds would not be used to pay for regular ongoing maintenance. Nor even for future replacement or restoration of worn components. Rather, only for presently deferred maintenance and for desirable new capital improvements—as outlined above.

As for the future replacement or restoration of worn components, it’s predictable that certain kinds of work will be needed within the next fifteen years. For the sanctuary, this includes upgrading the remaining 2 of our 4 sanctuary restrooms to be ADA compliant, putting new finishes on our sanctuary flooring, as well as the predictable need to replace its internal wiring, ductwork, and waste/vent plumbing. For the school/office, it includes replacing the roof membrane, water heater, A/C condenser and furnace/fan, upgrading its 2 restrooms to be ADA compliant, and meanwhile installing sewage clean-out access (a capital improvement that will reduce repair bills). As long as we continue to set aside $20K/year for such purposes, that should be enough (if the cash cushion is meanwhile in place).

Finally, I must note that these back-of-the-envelope calculations could be considerably refined by arranging for a reserve study. That means bringing in a certified reserve specialist to apply a standard methodology that would enable us to predict and plan for our facilities funding needs over the next 30 years. I hope to tell you more about this option in a future post!