You’ve moved into the new facility and are enjoying the “new car smell” and excitement that comes with seeing the vision become reality. As you celebrate this momentous occasion, there’s still work to be done to keep this new building running at peak performance.
Capital Reserves
Start setting aside money in a Capital Reserves Account. Ideally, this is a separate bank account used only for facility maintenance and repair expenses. At the very least, it can be a separate line item in the general ledger. Don’t forget to include reserves for IT and AVL (audio, visual, lighting) equipment. How much should you set aside? For a new (or fairly new) construction, save $1.00-$3.00 per square foot each year.
Maintenance-Related Expenses
Add or update the maintenance-related expenses in your church’s annual budget. Expect to spend roughly $2.00-$2.50 per square foot annually on general maintenance. You’ll also need to budget for additional facilities staff to handle those general maintenance tasks. Plan for one FTE (full-time equivalent) for every 25,000 – 35,000 square feet.
Utilities
Update the budget to account for the change in utility costs at your new facility. A good place to start is $1.00-$1.50 per square foot each year.
Janitorial Services
Whether you handle this in-house or outsource janitorial work, you’ll need to budget approximately $1.75 - $2.50 per square foot each year.
Handling these behind-the-scenes tasks will help keep your new facility running smoothly and efficiently for years to come.
Intentional organizations plan today for tomorrow’s costs. That’s why it’s critical you establish a capital reserve account now. Download our FREE eBook to learn more.
