FINANCE AND ASSET COUNCIL MINUTES – April 20, 2022

FINANCE AND ASSET COUNCIL MINUTES – April 20, 2022

Attendees: Fr. Rob Howe, Pat Regier, Dan Kozakiewicz, Judy Gross, Andy Pasztor, Mike Erickson, Joe Dostal, Kathy Fothergill
Reported by: Fothergill

Opening Comments:

Father Rob commented on the refurbished pews and polished terrazzo floors, which look very good. Following last month’s discussion on carpet replacement, we expect the new carpet will be in place later this year. Father Rob welcomed Joe Dostal to the Council. Joe will also join the Asset subcommittee of the Council.

Financial Results as of March 31, 2022:

Net Assets increased by $26K for the first nine months of the current fiscal year. Net Revenue (excluding Major Expenditures) increased $168K. The reduction in the Christian Service Fund reflects $115K in grant payments made to 43 different organizations during the year. As a result of our tithe (10% of Weekend Collections) we have set aside $113K YTD for outreach ministries next year. Major Expenditures Fund has decreased as a result of significant projects, including repair and restoration of church pews and terrazzo floors.

Weekend Collections were $18K higher than Budget for the quarter ending in March. YTD Weekend Collections were $46K higher than Budget and slightly better than last year. Other sources of revenue were lower vs. Budget for the quarter ($17K) and YTD ($46K). Total Expenses for the quarter were below Budget, as lower than budgeted salaries and employee expenses offset higher utility costs and emergency assistance payments. Weekend Collections for the first three weeks of April remain higher than Budget.

Assumptions for Preliminary Budget (July 2022 – June 2023):

  • Weekend Collections – flat vs. Current Budget
  • Other Income – reduce by $40K, based on current year actual
  • Salaries – Merit and COLA increase of 6% (vs. 4% current year), partially offset by resource savings in Admin; will follow Diocesan guidelines for clergy.
  • Medical Benefits – increase 5%; Michigan Catholic Conference guideline 3% – 5%
  • Non-Medical including Dental – small change from current year
  • Christian Service Outreach – increase in line with higher tithe (10% of Weekend Collections)
  • Modest increase in Property and Liability Insurance
  • A payment of $40K for Christ Mission Appeal will be included in Budget

Budget timeline – Preliminary Next Year Budget will be reviewed at next Council meeting. Final version will be presented at May or June meeting.

Facilities Update:

Work completed

  • Church pews repair and restore, including terrazzo floors; started January 5, completed March 30 (ahead of schedule); cost $136K
  • Church entrance doors, replaced thresholds and sweeps; cost ~$20K
  • Parish Center air handler coil broke; insurance provided partial coverage

FINANCE AND ASSET COUNCIL MINUTES – March 23, 2022

FINANCE AND ASSET COUNCIL MINUTES – March 23, 2022

Attendees:  Fr. Rob Howe, Patrick Regier, Andy Pasztor, Mike Erickson, Dan Kozakiewicz, Kevin Spencer and Pam Gandy

Via Zoom:  Kathy Fothergill

Reported by: Pam Gandy

Opening Comments:  Fr. Rob once again approached the Bishop about the Virtus program with regards to the Legacy Center using the school for its programs. If the Legacy Center is allowed to use the space without the Virtus requirement they may make the move.

The Diocese is working with the parishes to see if we qualify for the Employee Retention Credit (employee payroll tax rebate). If so, the Diocese will assist us in getting the credit.

Joe Dostal is interested in being on the Council. Fr. Rob/Patrick will extend an invitation to our next meeting

The pew and floor project will be completed in the next 2 weeks, several weeks ahead of schedule.

The 11:00 outdoor Mass has ended. In the future, outdoor Masses may be scheduled but at this time none is planned.

February financial results:  Net assets increased by $50K. the Christian Service Tithe balance reflects in our commitment to increase our tithe to 10% of weekend collections.

In February, $115K in Christian Service grants were awarded to forty-three organizations. It was noted that we have been doing this program for 40 years and have donated over $3 million in grants.

February collections were $8K above budget. Year to date collections are ahead by $37K. Other revenue sources (memorial donations, programing fees and miscellaneous income) are under budget by $40K. Expenses were lower than budget. Payroll costs were lower than budget. This was offset by higher utility and emergency assistance expenses. Emergency assistance requests have increased significantly over last year.

We are three quarters through the year. It is expected that we will finish at budget or slightly above.

We have not met our Christ Mission Appeal goal for this year. We are at 81% of goal or $41K behind. Approximately 100 letters were sent to parishioners that pledged in prior years but have not contributed this year. If we do not make the goal the remaining funds will come from our Parish Fund.

Preliminary 2022-23 Budget Assumptions:

A midyear recognition award to full and part time employees ($400 and $200 respectively) in April was approved. Approximate cost was $7,900.

For this fiscal year collections were higher than budget. We will be using the 2021-22 actual collections for the 2022-23 budget.

The council approved a 6% salary increase. This will put the employees whole with respect to the 20-21 budget where no increases were made (yearend recognition awards were made). Last year the Diocese recommended 3%. Council decided on 4%. The Diocese guideline was 3.5% plus a midyear increase if possible. Council approved the 6% to take effect in July.

Medical insurance will increase 3 to 5%.

Facilities Update – Church Carpet Approval:

Bid Summary

Contractor Bid
Northeastern Paint – Saginaw, Michigan $102,689
O’Connor’s Decorating  –  Saginaw, Michigan $99,672
Everett Carpet – Midland, Michigan Did not provide

The proposals were reviewed. Three companies were asked to submit a proposal. Northeastern Paint (Saginaw) bid was $102,689. O’Connor’s Decorating (Saginaw) bid was 99,672. Everett Carpet (Midland) declined to bid. The difference in the bid amounts were discussed. Ultimately, the council decided to go with Northeastern Paint because they have their own employees (O’Connor’s uses contractors), and Northeastern Paint installed the carpet that we have, and they have employees that have the technical expertise required for our complex layout.

Melanie Evans (designer/parishioner) assisted with the color and design choices.

A motion was made to approve the Northeastern Paint bid. Mike Erickson approved, Dan Kozakiewicz second the motion. Council approved with no disapprovals.

Round Table:  Dan discussed that the leak left of the Alter is coming from the stained glass. This will be addressed in the near future.

The council went to the church to look at the carpet samples. A vote was taken, and it was decided that we would go with the olive (VS teal) option.

Meeting Adjourned at 8:30

 

FINANCE AND ASSET COUNCIL MINUTES – January 19, 2022

FINANCE AND ASSET COUNCIL MINUTES – January 19, 2022

Attendees:  Fr. Rob Howe, Patrick Regier, Andy Pasztor, Judy Gross and Pam Gandy

Via Zoom:  Cathy Fothergill

Reported by: Pam Gandy

Opening Comments:  Fr Rob had no opening comments. He will comment during the meeting.

2nd Quarter Financial Results:   Fiscal year to date (7/1 – 12/31), Net Assets increased $175 K. The majority of that was excess Weekend Collections (102K). We did receive a one-time contribution of $14K. Christmas Collection was the highest since 2016.

Major Expenditures increased by our tithe amount ($12,500) but will decline significantly as the church pew and floor projects wind out.

The School Dedicated fund was closed out. Our 2-year commitment to support a teacher at St. B’s MACC tuition subsidy ended. Currently, we have 18 students at St B’s. Many are in kindergarten and first grade. We will continue the subsidy of $1,000 per student, but that will come from the Parish Fund.

In February, the Christian Service Committee will be meeting to award $115K in service grants. For the current fiscal year, the budget was increased to 10%. The amount will increase from $120K to $175K.

Weekend collections for the 2nd quarter were better than budget by $21K. Expenses were better than budget except for repairs and maintenance and furnishing and equipment. In spite of the wintry weather, utilities were in line with the budget.

The 2nd quarter results will go out next week in Flock Notes and the Bulletin.

Christ Mission Appeal Update:  We are halfway through the 2021 appeal. Our target is $236,595 (15% increase from 2020). As of December 31,2021, we have received 73% (175K). Participation is ½ of the normal amount. We did have the same number of cards as in 2020. If we are short, we will have to pay the shortage.

A second letter was sent by the Bishop in December. At that time there was an uptick in contributions.

The plan is to conduct another drive in February by having blank cards available in at coffee and donuts.

Facilities Update:  The pew project started on 1/4/22 and is expected to be completed in 8 weeks. New carpet installation is in preliminary planning. The estimated cost is $85K. The current carpet is approximately 14 years old. We are working with an interior designer (Melanie Evans, parishioner) to assist with selections.  Under consideration are the use of 2’x2’ squares on in the pew area. That would allow for replacement of tiles as needed. The alter and step would be regular carpet. We will need Diocese approval. Council gave approval to move forward with the project.

 

We did have a heat issue that could have caused considerable damage. Fortunately, the original backup was able to be used.

Round Table:  There has been no tenant interest in using the school at this time. This summer we will let various nonprofits know that there is space available. Maureen Donker has offered to assist with this. At this time, the youth ministries are using the school.

They will be a meeting next week to discuss St. Vincent De Paul project. There are approximately 8 people interested in the project. I someone steps up to take the lead then we will move forward, if not we will pass. Fr Rob indicated either way was ok with him.

Meeting adjourned at 8:20.

 

 

FINANCE AND ASSET COUNCIL MINUTES – October 20, 2021

Attendees:  Fr. Rob Howe, Patrick Regier, Kevin Spencer, Andy Pasztor, Pam Gandy and Mike Erickson Reported by: Pam Gandy

Opening Comments:  Father Rob discussed the St Vincent De Paul project and this year’s faith formation programs.

Patrick has switched to a part time roll. He will be working four days a week.

The financial statements continue to look good.

Mass attendance was discussed. At this point attendance may never come back to pre-pandemic numbers. Most parishioners will “identify as Catholic” but will only attend on Christmas and Easter (the major celebrations).

This fiscal year the high school students will be meeting in the school rather than meeting in homes.

 

1st Quarter Financial Results:    Net assets increased $84K. The first quarter revenue was $3K over budget.

Fr. Rob and Christian Service ministry will be reviewing this year’s grant applications.

First quarter total expenses were better than budget except service to parishioners due to the parish picnic expenses.

HVAC controls that were updated last year should pay off due to the expected increase in heating costs for this winter.

The quarterly financial report will be in the bulletin and Flock Notes the last weekend in October.

 

Christ Mission Appeal:   The Bishop wanted the Diocese to take control of the appeal. Originally the goal was to be a soft target (no refunds if we exceed the goal, but we would not be responsible for any shortage). That did not happen. The appeal will be runs as in the past.

This year’s target is 236,595 a 15% (30K) over last year. The 2020 program just made our target.

The year the average gift was larger, but we saw a sharp decline in the participation rate.

We will not go back to home visits, but we will be conducting a pledge drive in early 2022.

 

Facility Update:  The pew repair project (estimated cost $135K) and the floor refinishing will begin January 2022. It will be complete by Easter. A small section will be redone so that parishioners will be able to see the final products.

The Parish center air handler hot water coil broke. The unit was 30 years old. Reliable heating was able to repair the unit. The damage done the office ceiling was covered by insurance. We will have to pay for the repair. Total damage $6K, our part $2K.

The Church entrance doors are in fair condition. Thresholds and sweeps will be replaced. Cost $20K.

Meeting adjourned 8:15.

 

 

 

 

 

 

FINANCE AND ASSET COUNCIL MINUTES – September 23, 2021

 

Attendees:  Fr. Rob Howe, Pat Regier, Dan Kozakiewicz, Pam Gandy, Andy Pasztor, Bob Gamm, Kevin Spencer, Kathy Fothergill

Reported by:  Fothergill

Opening Comments:  Father Rob recapped recent Parish events.  There were between 400 and 500 people at the Parish Picnic.  The event was a success, notwithstanding some weather issues.  The golf outing also did well, with 24 foursomes.  The Car Show had 70 cars and a good number of attendees, and we plan to repeat this event next year.

Mass attendance is still not back to pre-COVID levels.  Attendance appears to have plateaued.  We are still getting about 100 hits for the online Sunday Mass.

The Legacy Center will not be using any of our school classrooms, as had been planned.  The Diocese currently requires that any adults who work with children on Parish property take a specific child abuse training program.  All Legacy Center volunteers and employees who work with children have already undergone the review process used by Midland Public Schools, and the Legacy Center was not comfortable requiring their volunteers to undergo an additional vetting process.  Our high school Youth Ministry will use the classrooms this year.

Fiscal 2020 – 2021 Results:  Net Assets increased by $356K, driven by higher revenue from Weekend Collections and recognition of 100% of our PPP Loan as income ($246K).  Expenses across most categories were lower.  Major Expenditures Fund increased by $33K due to the ongoing budget tithe plus $200K of the PPP Loan proceeds.  These added funds covered the balance of the roof replacement project and the concrete work done on the entrances of the Parish Center and Church.  School Dedicated Fund reflects our education support for St. Brigid.  Our current year contribution of $45K will complete our two-year commitment to St. Brigid.  Parish cash reserves at the end of the last fiscal year (June 2021) were $2,195,648, an increase of 4% over the prior fiscal-year-end balance.  This amount covers approximately 12 months of Parish operating expenses.

Current Fiscal YTD Results:  Net Assets have increased by $55K.  Weekend Collections were $4K better than Budget, while other revenue sources were down slightly.  Total Expenses were better than Budget in most categories, although this favorable variance may decline as activities pick up in the coming months.

The Parish exceeded our $205,734 target for the 2020 Christ Mission Appeal by approximately $2,200, maintaining the Parish’s 25-year record of exceeding our Appeal targets.  Parish participation was significantly lower this year (30% vs. an average of 55%).  We expect the Diocese will kick off the new appeal in mid-October.  According to the Bishop, we will not have a hard target (although we may be given a “goal”).  The entire appeal process will be handled by the Diocese.

Weekend Collections:  Collections continue to track Budget, which is in line with last year Actual.  Employee Costs and Utilities are the largest Expense components of our Budget.

Facilities Update:  Project to repair and restore Church pews and floors is scheduled to start in January 2022, and take eight weeks to complete.  Estimated cost is $135K.  Church entrance doors are in fair condition.  We will replace thresholds and sweeps at an estimated cost of $20K.  Work on the main entrance doors has already been completed.  Additional projects planned for the next few years include Church carpet (2023); Roof over kitchen, hall and gym (2024); Parish Center roof (2026); School roof over classrooms (2025).

The meeting adjourned at 8:10 p.m.

 

FINANCE AND ASSET COUNCIL MINUTES  – May 19, 2021

 

Meeting held in person and virtually

Attendees:  Fr. Rob Howe, Pat Regier, Pam Gandy, Andy Pasztor, Kathy Fothergill, Kevin Spencer   Reported by:  Fothergill

Opening Comments:  Fr. Rob said he continues to be impressed by the generosity of parishioners who are keeping up with contributions.  This enables us to do some projects (like repairing and restoring pews and floors) that otherwise would have been postponed.

The Task Force established last month is looking at partnerships for the school building.  One of the classrooms will be used as a warehouse for ACT Uganda, but we do not want the entire building to be used as a warehouse.

We have not established any special mandate on masks.  We are following CDC guidelines.

April Financial Results:  Net Assets have increased by $305K since the start of the fiscal year, due to higher revenue from Weekend Collections and the recognition of 100% of our PPP Loan as income (fully forgiven by the SBA earlier this year).  Expenses across most categories are lower vs. last year and vs. this year’s budget.  CMA is now at 98% (within $5K) of our $205,734 target.  Diocesan reminders and our email campaign, which targeted those who contributed in 2019 but not in 2020, have worked.  There has been no official word yet on the timing of the 2021 Diocesan appeal, but we suspect it will start in the fall.

Weekend Collections continue to track ahead of budget in May. This year’s budget was set 30% lower than last year, which included approximately $90K of contributions from school families.  We continue to close the gap in Weekend Collections vs. last year.

2021 – 2022 Budget: Pat presented a proposed budget, using the current FY budget, actual YTD income and expenses, and Diocesan guidelines as the starting point.  There was significant discussion around employee salaries and benefits to ensure that Parish employees are fairly compensated.  Fr. Rob and Patrick expressed confidence that our employees are fairly compensated especially relative to their peer groups within the Diocese. Patrick also discussed how the Parish defines its roles and assign job points that are weighted based on responsibilities. Job points and salary ranges are assigned to each role from the lowest to the highest. Recognizing a pay freeze last fiscal year Patrick and Fr. Rob agree to increase the merit from 3% to 4% in the budget. In addition review employee pay and wage rates relative to their respective job level and pay range and then make additional budget adjustments especially for higher performers. The Council also expressed strong support for increasing our Christian Service tithe to 10% of Weekend Collections, up from the current level of 8%.

Facilities Update:  Church roof replacement and purchase of livestream camera equipment were completed in 2020.  We received a donation that helped fund the camera equipment.  Concrete repair and replacement (Parish west entrance, church sidewalk, kitchen step) was completed in May 2021, cost $30,000.  Parking lot crack fill, also completed in May 2021, cost $14,000.  Work in process includes replacement of green pavers (cross symbol and church entrance), scheduled for Fall 2021.  The project to repair and restore pews was initiated in February 2021. We have requested approval from the Diocesan Building Commission and Bishop Gruss, which could be received in June 2021.  If approved, the project would start in January 2022 (estimated) and take eight weeks to complete.

Roundtable:  This will be the last meeting of the Council until Fall.  There may be a joint meeting with the Pastoral Council in June or late Summer.

The meeting adjourned at 8:25 p.m.

 

FINANCE AND ASSET COUNCIL MEETING April 21, 2021

Attendees

Fr. Rob Howe, Pat Regier, Andy Pasztor, Kathy Fothergill, Judy Gross, Dan Kozakiewicz, Kevin Spencer, Mike Erickson,  Pam Gandy

Reported by : Pasztor

Opening comments:  Fr. Rob had a few comments on finances

  • He continues to be pleasantly surprised by the weekly collections. Despite the lower than average attendance due to Covid the weekly collections remain strong.
  • The parish’s participation in Christ Mission has still not met 100% of target.
  • The new camera system in church for broadcasting Mass and other events has been well received. It has been so well received that someone who use the system recently made a donation to pay for most of the new system.

Financial Results:    Patrick shared the financial results and fund balances through March 31, 2021.  The parish net assets increase by $268k.  This is a combination of higher than expected weekend collections and having the entire Paycheck Protection Program loan of $246k forgiven.  $200k was put towards major expenditures funds.  Expenses across most categories were lower than plan.

Christian service grants made in this quarter totaled $115K to approximately 50 organizations.  This is the 40th year grants have been made totaling $2.9MM over that time.   We continue to make emergency support payments of about $25k per year.  We continue to fund projects at about 8% of our Sunday collections.

Results for this quarter will be shared with the parish by a flocknote message.

Weekend collections continue to exceed plan for the year.  As we are in the last quarter Patrick will prepare the budget for the next fiscal year and report at one of next meetings.

Christ mission appeal is at 93% of target ($205,734).  Reminders by both the diocese and the parish have been sent. Fr. Rob said a reminder will be used in the televised mass to remind people to participate.   No date for the 2021 appeal has been sent.  This will be the first time in many years we have not met our goal.  Since the diocese and not the parish is managing the program this year we have not had the personal contact we have had in the past.

School Building Update:  Three Rivers constriction did an evaluation of the school building.  No major structural problems were found. Areas of concern are the restrooms, electrical and age of the heating system.

Fr. Rob has put together a team to explore uses for the building.  Team includes Jeff Paulus, Dick Dolinski, Maureen Donker, Kristyn Russell and Mary Shaughnessy.  He has asked the team to present 3 options.  Ground rules of the options are:

  • It should be ministerial in nature
  • Not intended to make money (revenue neutral)
  • Something that parishioners could participate in if they wanted to Work with organizations in the area. More on this to follow.

Initial use of the School building is an agreement made with a Uganda mission group (Agape Community Transformation) to use one of the rooms as a warehouse.  This group sells products from Africa with the proceeds going to support an orphanage in Uganda.  The council members supported this. It will be shared with the parish in an upcoming bulletin.

Facilities Update:  Completed projects include the Church roof replacement and the Livestream Camera equipment in the church.

Currently a number of smaller concrete projects are underway including the west entrance to the parish center and filling some cracks in the parking lot.

Church Pews Restoration:  The Asset sub-team examined the condition of the pews in church and recommended that they need to be restored. They are the original pews for 1966 and have never been updated.

The parish staff obtained two bids for this job.

 Quality Wood Products from Ubly MI came in at $153,085.  Hensler Furniture, Saginaw MI came in at $194,400. Bid Summary

Contractor Bid Kneelers Terrazzo Floors Total
Quality Wood Products – Ubly, Michigan $112,550 20,535 $20,000 153,085
Hensler Furniture  –  Saginaw, Michigan $174,400 ? $20,000 194,400

 

QWP is lowest bid and will include the kneelers. Hensler Furniture bid did not include the kneelers. There is a 10 year limited warranty on all workmanship, wood and wood finishes.

Conclusion / Recommendation – Select Quality Wood Products. Estimate start date of January 2022.Pews will be removed, restored, and re-installed by section. Will take 8 weeks to complete.

The Quality Wood Products bid included refinish the pews and the kneelers and cleaning/polishing the Terrazzo floors under the pews. The Hensler did not include refurbishing the kneelers.

Quality Wood Products estimates it will take 8 weeks to perform the work.  Current scheduling would be for early 2022.  They would do one section at a time so the church is still usable for mass.

The staff recommended we accept the bid from Quality Wood Products.

The Finance Council voted unanimously to accept the recommendation to approve the bid from Quality Wood Products.

The next step is to obtain the Bishop’s approval.

 

Round Table:  No questions or discussion was brought up at this time.

 

Meeting adjourned at 8:25 pm.

 

Finance and Asset Council Feb 2021

Net Assets increased by $50K as Weekend Collections far exceeded operating expenses and major expenditures (church roof and livestream equipment ($41K)). School Dedicated has small balance left after our payments to St. Brigid School for education support ($44K). Will close out this fund this year.

2. The January Financial Report was sent to you earlier via email. In January, our Weekend Collections continued to exceed Budget! YTD through January we are ahead of budget by $175K and we continue to see this trend in February and closing the gap vs last year YTD. January expenses were lower than Budget across most expense categories. Employee related expenses were more favorable vs Budget this month as a result of having two maintenance employees on short term leave due to minor surgeries. Mike returned this week. Rick is expected to return by early March. We also had lower utilities, office supplies and maintenance expenses. Christ Mission Appeal continues. We are somewhat “stuck” at 90% of our target of $205,735. There will be additional communications in March to help close this gap.

3. FYI… Last week we paid out $115K in grant payments as part of our Christian Service outreach ministry. Btw.. this is our 40th year with over $2.9MM paid out.

4. Ask if any questions.

1. Intro – School building built in 1954 – there are 9 classrooms, restrooms (2) and corridor combine is approx. 10,000 sq ft.. Met with Building Committee and agreed to do a building assessment. TRC have provided a proposal to do an “as is” assessment of roof, mechanical, plumbing, heating, and electrical. Also will id code compliance deficiencies and provide assessment report of their findings including photos, and recommendations. Cost for Phase 1 (base case) is $5K. Start in Mid March and complete in 2-3 weeks from start. early April.

2. Describe Phase 2. TRC and Parish will also reach out to United Way and other community leaders (Mayor Dunker) and service providers for possible partnerships.

3. Last Friday, Fr. Rob and I along with the Building Committee conducted a walkthrough of the church & parish buildings and grounds. Overall facilities are in very good shape. Highlighted a couple of ongoing items a) testing of fire sprinkler system b) concrete repair / replace for main parish entrance and church sidewalk (covering basement) – pursuing estimates from Sugar Construction c) church pews – refinishing.

1. Review Major Expenditure spending. Have approx. $300K in fund after covering the church roof replacement. We also have $245K that will be available from the PPP Loan proceeds.

2. Excluding school building, major project spending forecast of $415K:

Ø Church pews – also original (1966) – repair and refinish – building committee concurs; Not include is cost of deep polishing of Terrazzo floors; church carpet will follow

Ø Church doors (main entrances) only – original 1966 – show significant wear & do not close and seal properly. Propose spring / summer 2021

Ø Roof over kitchen, hall & gym as well as Parish Center roof – both are Durolast and were installed 2004 & 2006 respectively – ~20 year life

Ø School building related projects – roof , windows, & bathrooms – the ~$235,000 combine is a guess – firmer #’s will

1. Church has been with Chemical Bank for many many years. We seen no benefit since merger with TCF. Costs have gradually increased, no longer sponsors church bulletin; turnover in branch personnel are all contributing factors to our move to a new banking partner.

2. Discuss recommendation to Fifth Third.

FINANCE AND ASSET COUNCIL MINUTES  – October 21, 2020

 

Attendees:  Fr. Rob Howe (virtual), Pat Regier, Judy Gross, Andy Pasztor, Kathy Fothergill, Kevin Spencer (virtual), Mike Ericson (virtual)

Reported by:  Fothergill

First Quarter Financial Results:  Net Assets decreased by $33K during the quarter driven by roof replacement expenditures, and Catholic education support payments of $44K to St. Brigid School.  First quarter Weekend Collections were $36K better than Budget but down $51K versus last year.  The yearover-year decrease was not unexpected.  Other revenue sources were below Budget, with lower Faith Formation activity fees and lower donations.  Expenses for the quarter were better than Budget in all categories except Other Expenses, which were higher because of the Catholic education support payments.  The favorable Expense variance may decrease in upcoming quarters, especially because of emergency assistance payments as weather gets colder and the pandemic continues with less government assistance.  Weekend Collections continue to track ahead of budget in October, as many parishioners continue to mail their contributions.  We saw an uptick in contributions when the outdoor Mass was started, so we may see a decline when that Mass is discontinued because of cold weather.

 

Christ Mission Appeal (formerly CSA):  Most parishioners received a mailing from the Diocese announcing the new program.  Our target assessment is $205,734, a reduction of 3% vs. last year.  The entire CMA campaign will be coordinated by the Diocese, without Parish mailings or home visits.  Our 2019 appeal concluded last June, raising $244K.  This exceeded our target by $33K.  The average gift was $341, which was flat with the prior year.

 

Facilities Update:  Church roof replacement was completed October 13.  The project went very smoothly, although the contractor had to use a different type of glue.  The contractor worked with Dan Kozakiewicz and the Project Manager, Dave Taggett, to better understand and resolve the issue.  There will be no impact on the Duro-Last 20-year warranty, but we will maintain supporting documentation in case there is a problem in the future. We made a partial payment of $87K in September and will pay the balance (approximately $105K) in the coming weeks.  In addition, we completed painting of the church sign, exterior pillars and fascia.  We made a partial payment for the Livestream Camera System, which has been ordered.  We expect completion by early November.

Roundtable:

Pat – October count is underway.  Due to the pandemic, this year’s count will be abnormally low.

Fr. Rob – We offered to deed our playground equipment, which is on Parish property, to the City for its adjacent park, but they declined the offer because it would cost $200K to bring the equipment up to the City’s standards.  We will watch for any signs of deterioration, reviewing in the Spring.  Separately, would like to get back to 10% tithe for Christian Service funding as soon as we can … it should be a priority.

Following a prayer, the meeting adjourned at 8:05 p.m.

FINANCE AND ASSET COUNCIL MINUTES  – September 16, 2020

 

Attendees:  Fr. Rob Howe,  Pat Regier, Judy Gross, Andy Pasztor, Kevin Spencer, Kathy Fothergill, Pam Gandy (via Zoom), Mike Erickson (via Zoom),

Reported by:  Fothergill

Opening Comments:  Fr. Rob explained that Blessed Sacrament Parish and each of the other parishes in the Diocese will be set up as non-profit corporations, and that legal title of parish real estate will be transferred to each parish corporation.  This structure will provide civil corporate protection to each parish in the event of claims against another parish or against the diocese.  The structural change will not have a substantial impact on the normal operation of the parish.  Pastors, staff, councils and committees will continue to function as before.

School  Closure Update:  All of the full-time school employees (principal, 5 teachers, 1 para-professional) have found employment at schools in the area.  Most of the school equipment and supplies have been donated to neighboring Catholic schools including St. Brigid, Auburn Catholic and Sacred Heart Catholic. St. Mary’s Cathedral received some tables and chairs for their children’s Faith Formation groups. Preschool toy, supplies and books were donated to Chippewa and Sanford preschool and daycare  programs.  ESA will take the school library books and re-distribute to Midland Public Schools. Windover High School, which experienced significant flood damage in May, was able to take teacher desks, filing cabinets and other equipment and supplies.

Fiscal Year End Summary (June 30, 2020):  Net Assets increased by $30K, with lower expenses in most categories.  Weekend Collections were down $35K vs. budget and $13 vs. prior year. We received $245K in May from the Paycheck Protection Program via an SBA loan.  We anticipate that we will be able to retain the entire amount. Major Expenditures Fund increased by 9%, as our tithe more than offset cost of the year’s projects. PSA Dedicated fund is now zero because of the school closure.  The prior balance of $36K will be sent to St. Brigid School.  Cash reserves at June 30, 2020 were $2,113K, an increase of $209K vs. the prior year, due to the PPP loan proceeds.  The 5-year Annual Average Cash Balance of $1.9M covers approximately 10 months of operating expenses.

Fiscal 2020-2021 Budget:  Budget includes: a 30% reduction in Weekend Collections; no increase in Salaries & Wages; the impact of the school closure, including a reduction of employee costs, supplies, services and food costs; cost of church roof replacement project.

Christian Services Appeal (CSA) is now called Christ Mission Appeal, and will take place on October 24/25.  Our target is $205,734, down 3% vs. last year. The appeal will be coordinated by the Diocese, and will not include home visits.

Financial Results YTD:  For the first two months of the year, Net Assets increased by $82K.  Weekend Collections for the period were $20K above budget but $18K below last year.  Other revenue YTD was below budget due to lower Faith Formation fees and lower Memorial donations. Total Expenses YTD were also below budget but are expected to increase as activity picks up.  Weekend Collections continue to track ahead of budget at this point in September.

Facilities Update:  Church roof replacement is underway; expect to finish by early October. Livestream camera equipment has been ordered; expect completion by end of October.

Roundtable: Sunday Mass schedule for October will be back to “normal” with Saturday Mass at 4:00 p.m. or 5:00 p.m. (TBD) and Sunday Masses at 8:30 a.m. and 11:00 a.m., with the latter Mass held outside in October, weather permitting.  Fr. Rob also mentioned that the school building now gives the Parish more meeting space that satisfies COVID-19 guidelines.  Separate meetings can now be held in the Parish Center, in  the Social Hall and in the school building.

Meeting adjourned at 8:15 p.m.