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Dear Fellow Parishioner,
Fr. Richard, understanding that a healthy and vibrant parish requires financial transparency, asked me to be more involved in parish finances. With the recent success of the capital campaign, which represents a substantial investment in the parish, Father made it clear that the Parish Finance Council’s (FC) primary responsibility is to provide an accurate accounting of how your generous support is being utilized to enhance and grow our parish community.
As the new FC Chairman, it is now my responsibility to reinvigorate the FC, which had not been as active or involved in the financial operations under Fr. Ian. Specifically, we intend to improve the financial oversight of all parish operations through a strong, parishioner lead FC. We will ensure that Fr. Richard can provide timely quarterly financial statements to parishioners so all can see how their contributions are shepherding the parish forward.
Today’s update includes three topics: the ‘We Stand With Christ’ Campaign and the corresponding renovations (construction project) that the campaign financed, the Operating Results for the first half of our fiscal year, and the results of an initial financial review with thoughts on how St. Michael can move forward together.
Capital Campaign/Renovations
As the campaign enters its final phase of collections, Fr. Richard asked the FC to provide a detailed recap (Click for Attachment I on website). The fundraising campaign was a success thanks to your generosity. The campaign initially targeted $6.0 million in pledges and ultimately raised over $7.6 million in commitments, of which $6.6 million have been collected to date.
While the original goal was to avoid debt and to have the campaign fully fund the renovations, the construction project increased in scope and cost between the initial planning phase and the final construction plan. Fr. Ian, who oversaw both the campaign and the construction project, failed to properly utilize the FC in the oversight of construction cash flows which ultimately resulted in the parish being approximately one million dollars short of paying off the construction loan.
Six Month Operating Results – December 31, 2022
The FC met on Feb. 2nd to review the parish’s most recent six-month Statement of Receipts and Disbursements (Click for Attachment II on website). Of concern was the almost $50,000 deficit from parish ongoing operations. While there were some gifts received that offset the deficit, the FC is concerned about the trend/decline in offertory receipts relative to parish operating expenditures, especially in light of the mortgage debt service that will commence in the Fall of 2024.
Parish Financial Outlook
As you can see, just like raising a family, maintaining our parish community is about finances as well as about faith and love. The FC will work with Fr. Richard and the Parish Pastoral Council on identifying ways to increase parish cash flow. In April, we will offer a series of ‘Coffee with the Councils’ discussions where we can meet with you to answer questions and seek input on how we can best support and enrich parish life.
The Parish has re-committed itself to increased transparency, enhanced
communications and continued fiscal responsibility. On behalf of the Finance Council, we look forward to a bright and renewed 2023 and humbly request your continued support and prayers as we journey together doing the good work of St. Michael.
Faithfully,
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