Ss. Peter and Paul

1. Ss. Peter and Paul Parish Meeting April 20, 2004

2. Agenda • Prayer • Presentation/Overview • Break/Collection of Questions • Question and Answer Session

3. The Letter • Paul Callahan, Pastoral Council • Dave Dermody, Pastoral Council • Jill Larsen, Finance Council • Sue Inserra, School Board • Mike Pate, School Board • Mark Reinholz, Finance Council • Rick Schwalbert, School Board • Monsignor Flach, Kim Schaefer, School Board, Pastoral Council and Finance Council

4. Meeting Participants • Monsignor Flach • LaVerne Diekemper, Trustee • Tony Morris, Trustee • Ben Fuehne, School Principal • Pat Costello, Pastoral Council • Dave Dermody, Pastoral Council • Michelle Knefelkamp, School Board • Mark Reinholz, Finance Council

5. Debt and Debt Financing • Current Debt = $275,000 • Debt Financing • $130,000 parish savings/bequests • $85,000 cemetery savings • $60,000 letter of credit

6. What Happened? • FY ’02-’03 • Actual $130,000 deficit (actual revenue vs. expenses) • 20 expense lines >$1,000 difference (actual vs. budget) • Church revenue, while up $31,000 vs. previous year, was down $22,000 vs. budget • Overly optimistic on fund raising revenue (<$21,000 vs. budget) • School subsidy $38,000 > budget, $160,000 > FY ’01-’02 • Capital improvements and repairs $26,000 > budget • Significant increase in benefit expense (>$18,000 vs. budget)

7. What Happened? (Cont.) • FY ’03-’04 • Budget approved with a $48,000 deficit (2% of budget) • Budgeted revenue increases of 7% (in line with previous year’s actual) • Actual revenue is down 11% vs. budget or $55,000

8. Contributing Factors • Budget is created in January and February • Before enrollment is known • Teacher’s contracts are offered before registration • Budgeted expenses are based on budgeted revenues and there is some commitment to spending before we know if all revenues will be realized

9. Contributing Factors (Cont.) • Desire to provide improved and additional ministries • Three kindergartens (Teacher and Trailer) • Additional Pastoral Associate • Second resource teacher • Desire to keep tuition affordable • Capital expenditures (repairs)

10. Corrective Actions • Finance Council recommended conservative approach to stop the deficit spending • FY ’04-’05 budgeted revenue to be flat • Church and School operate with balanced budgets • Start paying back the debt • Quarterly budget review at the council level (with the Pastoral Council, Monsignor Flach, the School Board and Ben Fuehne)

11. FY ’04-’05 Budget • $1.85 Million (church and combined School) • $1.35 Million in salaries, benefits and taxes • $350,000 school subsidy • $60,000 high school subsidy

12. Church Plan (Reductions) • Director of Religious Education • Visiting Priest • Cleaning Service • 1% salary increase

13. School Plan • Increase tuition (primarily for the second and third children) • Eliminating the third kindergarten (which results in the reduction of one teaching position) • Reduce one of the two resource teaching positions • 1% salary increase

14. Summary of Decisions It is important to note that the changes enacted for the school and the church were not done as a result of the debt. Rather, they were enacted to ensure we do not add to the debt. All of this is a result of only spending what we have (or conservatively think we will have).

15. What can we do? • Pray • That we find common ground • That we come together under a higher purpose (rather than being consumed by our own agendas) • Continue to give our time and talent, or begin giving • Come back to our church (or encourage others to come back) • Increase our Sunday offering

16. What’s Possible?

17. What’s Possible? (Cont.)

18. Waterloo Growth

19. SPPS Parish Growth

20. Build for the Future Campaign • Nearly $1.5 million pledged to date • $626,925 in savings • Most was collected against pledges • Property Acquisition Committee actively pursuing/investigating options • Soliciting contributions from surrounding parishes (Valmeyer, Tipton, Hecker, etc…) • New parishioner presentations

21. School Endowment • $1.3 million as of 12/31/04 • 5.5% to school annually ($66,000 for FY ’03-’04) • 2003 growth of 22.76% (majority through market performance) • Managed by Smith-Barney, Joe Benyo

22. School Tuition (FY ’04-’05) • Tuition and Fees Parishioner Non-Parishioner • First child $2,300 $3,225 • Second child $1,480 $1,905 • Third child $930 $1,280 • Fourth and more $180 $780

23. Tuition and Subsidy

24. 2003 Sunday Offerings by School Families

25. Tuition Collection Changes • Need for change due to our cash flow situation • Two payment options • Monthly • Annually • Late fee of $10 on past due balances • As always, contact the school principal if you are having problems paying

26. Stewardship • God is the owner of all things. • Everything we possess belongs to God. • We are called to be generous, grateful and accountable for God’s abundant gifts and blessings. • We are called to develop the gifts we have received from God and share them freely with others. • We are called to share our resources for the good of the entire community. • We are called to perform works of justice and mercy on behalf of people in need.

27. Summary The leadership of our parish along with me as the primary author of the recent letter have been accused of being arrogant and ignorant.

28. Summary (Cont.) • My response: • We need dialogue and differing opinions. • There will be issues on which we will not agree. • Few parishioners know all the facts, yet many make judgments on what little they know (and then pass their judgments on to others as fact). • We cannot be mean spirited and work toward an individual’s or the parish’s demise or destruction.

29. Summary (Cont.) • God is missing in too many of our thoughts and actions. • He is the reason we exist and should be the reason for our involvement in this parish. • He should be at the center of our lives. • I ask that you think about all of your words and actions: • Do they help in our mission of ensuring we glorify God? Or, • Are they destructive and divisive and counter to our goals as Catholics and Christians?

30. Questions?