Financial Report

by Administrative Council
August 12, 2017

For the first time in many years we finished in the black.  Prior to this year we were spending down our reserve at the rate of $15, 000 / year. As a result our reserve balance is just under $200,000, leaving us little ability to respond to any emergency situations.  Despite a brutal winter that caused increased spending on maintaining our facilities we were able to come in $38K under budget.

Income

On the income side, we take in money in 3 ways:
1.  Offertory collections.  Regular envelope collections account for approximately 38% of total parish income.  Last year, your contributions totaled $162K.  Thank you for your generous support.  In the coming year our budget calls for $177K in contributions.  We are confident we can meet that increased goal.  We have an idea how to achieve this and I will get to that in a minute.
 
2. Facility Rental.  This generates approximately 46% of total parish income.  We have four main tenants:  DePaul Treatment Center, POCA Tech Acupuncture school and Village Home School and the new contract with Verizon.  In additions, we have minor rental contracts with Mankind Project and AA.  One-time rentals of the gym and Parish Center generate a small percentage of rental income, but require a fair amount of staff time to manage.  We are currently looking for ways to generate additional income by expanding rentals of the gym.
 
3. Other Income.  The remaining 16% of parish income is comprised of special collections, bequests and gifts & restricted revenues from grants and the like.

Expense
On the expense side, we spend money in three primary ways:
1. Payroll.  This comprises approximately 64% of overall spending.  We came in slightly under budget on personnel costs for the previous fiscal year.  For the coming year, salary costs will increase by $16,000.  These increases result in a modest cost of living for most staff and hourly workers.  The last time a cost of living increase happened was 2008.
 
Moving the pastoral administrator position to full time.  It has become quite clear to the Admin Council, and the Pastoral Council, that the duties of this position need full time attention.
 
We are fortunate to have a staff that is so dedicated to the mission of the parish, and for their generous gift of time, energy and expertise that they give us every day of the year.  If you are a staff person please stand and let us give them a round of applause.
 
2. Facilities.  Our expenses for maintenance and utilities are substantial.  This comprises approximately 27% of overall spending.  Last winter was very hard on our facilities and infrastructure.  We experienced a fair number of boiler and furnace repairs as well as roof leaks and a host of other problems.  In addition to “housing” our worship and most other parish activities, our facilities generate a significant portion of our income.  So, it is paramount that we maintain them as best we can.
 
While next year’s budget accounts for these ongoing costs, there are three big-ticket issues that need to be addressed: a) finishing the brick work b) heavy maintenance of the roof and c) fixing the problems with the carpet in the sanctuary.  At this point we do not have the financial resources to address these issues.
 
3.  Programs and Services.  This comprises approximately 9% of overall spending.  These funds support all parish programs ranging from liturgy and worship to sacramental preparation to youth ministry.  Quite frankly, our programming budget operates on a shoestring.  Again, we applaud parish staff, key leaders, and our ever-present volunteers for making good things happen on so little.

Savings
We currently have just under $200K in savings.  It may seem like a lot of money but it could disappear quickly with a few years of deficit spending. It is not too much of a cushion.  Fortunately, we did not have to dip into savings last year.

Our Challenge to You
​While this is a relatively positive financial report, the key to having another year in the “black” lies with increased contributions.  We would like to challenge each to keep the parish financial house in order by increasing your offertory giving by $5 each week.  When was the last time you increased your gift to the parish?  We realize that for some, this just is not possible.  No problem.  And yet for others, it is quite doable . . . maybe even more.  Consider it, and thanks for your generosity.      
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