St Michael Parish Financial Report FY-09 (M i d Year)

1. St Michael Parish Financial ReportFY-09 (Mid Year) By St Michael Finance Council

2. 1 1 2 2 Capital Collections * 3 4 5 6 7 8 9 10 11 12 13 14 Referenced to the FY-08 Report These Notes refer to the FY-08 Report * Line name changed; was “Routine Capital Improvements in the FY-08 Report

3. Agenda • Parish Operations – Revenue • Parish Operations – Expenses • Sustaining Our Legacy

4. Parish Revenues (Operations) • These collections generally provide about 75% of the revenues needed to operate the parish. • Offertory collections are up slightly (1%), IF collections continue at this pace for the rest of the year. • The Semi-Annual Collection (April 26) needs to bring in $52,000 for these special collections to match last year – an ambitious goal! [Good News – $3,000 posted to Grand Annual in January] • The Religious Education collection helps to defray the program’s startup costs in September. This giving trend is very favorable

5. Parish Revenues (Operations) • These collections vary widely in timing as well as in amount. To illustrate - $14,245 received in January • In the past, Gifts and Bequests were given for the general good of the parish. More recently, they are being directed for the benefit of the Saving Our Legacy campaign – parish center, debt reduction, major maintenance projects.

6. Parish Revenues (Operations) • Religious Education revenues are for July – December; most RelEd revenues are received during registrations in the spring. • Revenues are down about 25% from the same period last year ($17,738 vs $23,587) • Last year, $34,111 of the 59,526 (57%) raised in 4th Qtr (April – June) • Parish center revenues up slightly (3%), IF they continue at current pace. • New fee schedule put into effect Oct 1 ‘08

7. Capital Collections Parish Revenues (Operations) • The quarterly Capital Collection is suspended during the period pledge payments for the Saving Our Legacy campaign. A minimum balance of $25,000 is kept in pledge funds to cover unplanned parish repairs. • Fundraising events (Craft fair, Auction, Dinners, etc) raise funds to help offset various program costs. Last year, all fund raising, including pledge payments was co-mingled and carried as pledges. This year, pledges are accounted for separately • “Other” revenues include bank interest income ($24), donations for flower collections ($2,717), and miscellaneous donations ($7,800).

8. Parish Expenses (Operations) • This is comparable to same time period last year • However heat, utility, and snow removal costs peak in January through March • They include $12,102 for the parish’s Catholic School “Tax”. • Personnel costs (priests, music program, custodians) are about 67% of Church expenses. This includes salaries, FICA, health & life insurance, worker compensation insurance, long term disability insurance, and pension payments. Much of these costs are mandated by the chancery as well as by civil law.

9. Parish Expenses (Operations) • These expenses are expected to be lower than prior years • The rectory is benefitting from the installation of a modern, efficient heating system as well as modern, efficient windows. • Less fuel to maintain comfortable living conditions • However heat, utility, and snow removal costs peak in January through March • Personnel costs (part-time housekeeper) are about 12% of Rectory expenses. This includes salaries, and FICA.

10. Parish Expenses (Operations) • These expenses are up about 12%. Contributors to the increase include: • Utility costs are up over the same period as last year ($11,237 vs. $6,856). This is largely a result of a refinement of cost allocation • Professional Fees are up over the same period as last year ($6,044 vs. $2,831), due to increased marketing of the facility • However heat, utility, and snow removal costs peak in January through March • Personnel costs (financial associate, custodians) are about 54% of Parish Center expenses. This includes salaries, FICA, life insurance, long term disability insurance, workers compensation insurance, and pension payments.

11. Parish Expenses (Operations) (Youth & Adult) • Books/Pamphlet costs show a large increase over the same period as last year ($11,806 vs. $6,538). • Books and pamphlets are more expensive • Material for new programs such as ARISE (fees offset costs) • Timing for ordering & billing of materials • Personnel costs (Religious Education staff) are about 68% of Religious Education expenses. This includes salaries, FICA, life & medical insurance, worker compensation insurance, long term disability insurance, and pension payments.

12. Net Operations • Parish financial reporting is done on a “cash basis”. Net Operations is the difference between the total operations revenue and expenses as of the report date (Dec 31, 2008) • Parish cash flow varies - the timing of our bills received do not match the timing of our operations revenue (primarily collections) • When revenue lags, our options are 1) delay payment, or 2) borrow from other parish funds. Restoration of borrowed funds depends later collections • This deficit includes $12,102 for the Catholic School tax. • As part of the Chancery support for our Capital Campaign, they forgave the delayed School Tax debt accrued through Dec 31, 1907. The Chancery insists that school tax payments accompany our loan payments; Capital Campaign funds were used for these payments. • Historically, the Semi-Annual collection provides necessary revenue to help us catch up with our winter & spring expenses.

13. Saving Our Legacy Capital Campaign • $482, 243 received for FY-08 and six months of FY-09 is 55% of the amount being raised through pledges. (We pay off the construction loan - Diocese forgives $125,000 of our debt with them ) • Loan balance as of Dec 31, ‘08 - $260,500 ($472,600 Dec 31, ‘07) • Pledge payments are keeping pace with projections • Last loan payment projected for this time next year, assuming: • Pledges continue per each pledges promised payment schedule • No large, unanticipated maintenance/repair emergency

14. Saving Our Legacy Capital Campaign • $30,000 loan payment made in November. • Since then, additional $50,000 paid (February 09) • Current balance, $210,000 • Emergency repairs to rectory completed this past summer • Replaced boiler with modern heating system – Fall 07 • Replaced windows with modern, efficient windows – Fall 07 • Completed heating system, installed air conditioning, Spring 08 • A facilities committee is conducting inspections of all parish facilities to inventory maintenance needs, costs, priorities. Future projects using campaign funds will be based on this work

15. SummaryWe are OK, but need to stay vigilant • Parish is solvent – but close to the edge! • Most expenses in line, but some will be watched closely • Typical winter expenses were high in January, outlook for the rest of winter is not pleasant • Collections continue to show increases; but expense trends can outpace these collection increases • Sustaining Our Legacy capital campaign is on target • Emergency rectory repairs (cited fall 07) are completed and paid for • A substantial part of our construction load debt has been paid; we are on target to pay off the rest • Follow on capital/maintenance projects are in planning stages