OCTOBER 7, 2007

Today's bulletin contains the financial report of the parish for the last financial year. Here are some notes that will help you to interpret it.

1. The format is one recommended by the diocese: last financial year, the immediate preceding year, and the proposed budget for the current year. (We have currently completed the first quarter of this year.)

2. The categories are also recommended as summaries by the diocese. If anyone wishes to see the line-by-line details, they are always available in the rectory. These are updated each month. If you want the ones this report was made from, ask for the June 30, 2007 print-out.

3. I was not assigned pastor here until December 11, 2005. Therefore, the first half of that year's finances were the result of the previous administration. The 2006/2007 year's figures reflect my administration. You will notice that the report lists a $73,000 deficit by June 30, 2007. There were no outstanding bills as of that date, and there were no loans taken out during that time to increase the principal on the debt. The deficit was due to insurance and benefit billings for the last half of the 2006 calendar year. They were paid from the proceeds of the sale of St. Mark's. The sale also reduced our total debt to just below $1 million, down from $1 1/4 million.

4. The parish carries a debt to the Catholic Institute. The principal on the debt ($807,000) is the result of loans taken out according to diocesan policy to satisfy unpaid parish share, insurance, benefits and school subsidy bills that were incurred during the 12 year existence of the parish prior to my coming. The debt carries a 4 1/2% yearly interest rate to the Catholic Institute, which has now risen to $140,000.

5. The fundraising profits (festival, pizza kitchen, mardi gras, etc.) on the report were not incorporated into the operating budget for the 2006/2007 year, but rather for the current year. They were placed directly in the Catholic Institute Savings in the name of the parish. That account now stands at approximately $325,000. In addition, we have $130,000 dedicated for capital improvements.

6. The Parish Share has reached its $89,000 goal for 2007and the diocese has been paid. All income in that category now becomes part of the parish operating, with the bonus of not being assessable for the 17.6% parish share tax.

7. We are required to turn in a balanced proposed budget each year to the diocese. You will notice that the one for next year shows a modest decrease in expenses and a proposed increase in income. This was done deliberately in a conservative way to help us gain financial stability. You will also notice it shows a projected surplus, after many years of deficit spending. I am in control of the spending - but only you and your generosity control the income.

8. I consider financial stability to be based on four criteria:
    a)There are in the operating checking account
    at the beginning of each month the funds
    necessary to pay that month's bills. This has
    been accomplished.
    b)There are three month's operating funds in
    reserve, in the event of an emergency. We
    have reached that goal.
    c)The physical plant is in such condition that
    only yearly maintenances, not major capital
    improvements or repairs, are immediately
    contemplated. As you know, our plant is
    dated and in need of much repair, so we
    are far from compliance with this criterion.
    d)There is no debt. We do not qualify on this
    criterion. At some point we will have to
    address our debt, but we are no where near
    ready for that discussion.

9. I have included the sacramental and census data. Although not necessarily a part of the financial report, it is to remind all of us why we are here to begin with. Not money, but the salvation of souls is a parish's reason to exist, and a Pastor's main task.