Debt Reduction

1. Spiritual and Operational Keys Debt Reduction Mike Wentz, Executive Director Ceta Canyon Camp & Retreat Center mike@cetacanyon.org 806.488.2268

2. What do you hope to learn?

3. How many of you started a new position and inherited a debt? • How many of you are in a situation where you have accumulated a debt over time?

4. Would any of you be willing to share briefly the circumstance surrounding your debt? • If you are willing, can you share current debt amounts, so we can understand the range from low to high with this group and your corresponding annual budget size?

5. Ceta Canyon Example Debt $1.4M ($700,000 accumulated Operational debt, $700,000 Capital debt) Annual Budget $1.5M Endowment $80,000 Reserves or additional funds $0 $1M paper debt on property acquisition Major Facility Issue – Leaking Septic System (Approx. cost $375,000)

6. Where to begin… Prayer / Spiritual Commitment

9. Leadership – “It is a Leadership Issue!” - YMCA Senior Vice President • Deuteronomy 31:6 – “Be strong and courageous, do not be afraid or tremble at them, for the Lord your God is the one who goes with you. He will not fail you or forsake you.” • Leadership is not about pleasing people, but is about doing what Godhas called you to do with Honesty, Integrity, Care, Respect and Responsibility! • Isaiah 40:31

10. There is work to be done! • “Do you not know that those who run in a race all run, but only one receives the prize? Run in such a way that you may win.” 1 Cor. 9:24

11. Leadership – “It is a Leadership Issue!” - YMCA Senior Vice President • “…it’s a crime to bore anyone with the Gospel.” • Our Leadership responsibility is to Re-kindle the Flame – so Christ’s Light can shine Brightly like a Beacon in the night, into a world filled with darkness! • John 8:12

12. Vision • What is the NEW Vision you will cast for your Camp/Retreat Center? • You cannot have Money without a Mission! • You cannot have a Mission without the Money! • They go hand in hand!

13. Crisis Forces Change (Simple Rules for Money – by James Harnish) • Gain all you can – A New Opportunity • Save all you can – The New Frugality • Give all you can – A New Generosity • Proverbs 1:5-6 – Seek Godly Wisdom

14. Crisis Forces Change (Simple Rules for Money – by James Harnish) • Persistent Core Values • Mission – Who we are. • Values – What we will or will not do. • Commitment to excellence – how we use gifts, talents, & opportunities. • Proverbs 10:4, “A slack hand causes poverty, but the hand of the diligent makes rich.”

15. Crisis Forces Change (Simple Rules for Money – by James Harnish) • God does expect us to be Good Stewards of all of our resources – including our Financial Resources!

16. Debt Reduction Steps • Assessment – identify problems.

17. Debt Reduction Steps • Assessment –May 2007 CRISIS (Find a new job) Ceta Example • $1.4M accumulated debt ($.7M capital, $.7M operations) • Annual Budget - $1.5M • Board approved letter about to be mailed for debt campaign appeal • $1M paper debt on new 160 acres -170 bed camp acquisition • Adjacent property (The Glen) • Dining Hall – Septic System Leaking ($375,000 – no monies for repair) • $80,000 Endowment • Facilities at Ceta Canyon in Fair Condition • Facilities at the Glen in Poor Condition

18. Debt Reduction Steps • Assessment –May 2007 CRISIS (Find a new job) Ceta Example • No Reserve Funds • Distrust with NWTX conference because of Debt • Annual Operations – Expenses exceed Revenue • Too many staff on payroll (But pay rates –Low mandatory pay cut) • Summer camp fee for UMC camps – Too low • Leadership issues on Staff – (Used to losing money, poor work ethic) • Summer staff – Too young, poor supervision, poor work ethic • Leadership issues on Board –(Friends on staff) • Poor Financial Management Tools – Income/Expense Records • 2007 budgeted income – Line for Gifts $360,000, 2006 raised $220,000

19. Debt Reduction Steps • Assessment – identify problems. • Plan – Identify and outline. • Lead - Provide Strong Leadership for new plan. (Make it happen!) • Organize - Establish detailed process of how to implement plan. • Control - Administration/Management of the Plan.

20. Debt Reduction“Plan the work, work the Plan.” • Short Term – Stop the “bleeding” • Reduce Expense • Increase Revenue • Crisis Projects – Raise Money. • Establish commitment and support from Staff, Board and the Conference Leadership for changes that must be made. • Goal should be to balance budget by year-end, no more deficit fiscal years. • Make the tough decisions now.

21. Debt Reduction“Plan the work, work the Plan.” • Long Term – New Strategic Plan. (Outside consultant) • Complete cost analysis. • Operational Finances • Board Development • Staff Development • Capital/Facility Improvements & Financial Resources

22. CETA CANYON CAMP & RETREAT CENTEROperational Financial ChallengeCommitment to ChristCommitment to PrayerCommitment to MissionCommitment from Staff, Board,Conference, Churches, Volunteers & Communitiesto Work Together as a Team to Change Behaviors,toOvercome Challenges and Establish Financial Stability toInsure thatCeta Canyon Camp & Retreat Center Continues to Draw Peopleto Christ for Many Generations to Come.He is before all things, & in him allthingshold together. Colossians 1:17