Finance Council

The Finance Council is an advisory group that approves the parish operating and capital budgets, the parish subsidy amount to the school, analyzes giving trends and makes recommendations regarding parish finances to the pastor and/or Pastoral Associate for Administration.

Council members include: Father Hayatsu, Pastor, John Eisen (Pastoral Associate for Administration), Tim McCoy, Terry Douglas (Chairperson), Pete Otten, Nancy Sorensen, Dean Anderson, and Mark deRitis.

The Finance Council meets on the 2nd Tuesday of each month at 7:00pm.

ANNUAL FINANCIAL REPORT

2009-2010 & 2010-2011

Good news: The parish 2009-2010 operating budget ended June 30, 2010 with a surplus of $17,024. What's more, during this past fiscal year, the parish repaid the McClean Family Center’s construction loan and is now in position to repay the archdiocesan loan for the new gym’s sports floor (better than the original floor) and the unexpected water intrusion repairs.

The cost of the new sports floor and water intrusion repairs was $259,000. Repayment is now assured because of the gift of $75,000 by our parish school, twenty-six pledges from parishioners, funds from the debt reduction campaign, and a major gift from Proliance Surgeons Group. In addition, because of the water intrusion problems, the pastor, Finance Council and Steve Hughes negotiated cash settlements and free services from the companies involved in the design and construction of the family center. The loan should be paid in full by June of 2011.

Last fall, Michael Stein-Ross who is a teacher in our parish school agreed to lead Edge, Jr. High Ministry, and, last spring, Kelly Walsh accepted a very part-time position to implement Life Teen, Sr. High Ministry. In May, the parish staff provided a first class appreciation event for 140 of our 475 volunteers. In the summer, for the first time in many years, the faith formation office offered vacation bible school. We continue to make improvements to our facilities and grounds.

Our new 2010-2011 operating budget continues to fund two very part time Edge and Life Teen positions and a new ministry called “Living your Strengths.” The challenge of funding these ministries is that they add $24,000 to this year’s operating budget. The Sunday giving goal was increased by 2.5% over last year’s budgeted goal to pay for them. To make these ministries permanent for future budgets, Sunday gifts will need to increase by 4%. We are hoping that the new Sunday Life Teen Mass at 5:00pm will help with this increase.

At the end of June 30, 2010, our unrestricted cash reserves were just under $50,000. This past summer, $12,000 of that amount has been spent on striping the parking lot, painting the interior of the church, and installing new fire suppression system in Unity Place’s kitchen as required by the Fire Department.

The pastor and Finance Council will be discussing plans to address our future ministerial needs and cash reserve requirements. Thank you for your generous financial support of St. Francis of Assisi Church.

John Eisen

Pastoral Assistant for Administration

Explanation of Footnotes

1. Sunday gifts include offertory envelopes, loose change and Christmas Masses gifts. We saw a 20% increase in Sunday loose and about 1% increase in Sunday envelopes. Yet, given our economy we were very grateful for our parishioners’ generosity.

2. Sunday giving was increased by 2.5% over 2009-2010 budget to help pay for our Jr. High Ministry, EDGE and Sr. High Ministry, LIFE TEEN.

3. The parish school contributed their annual $5,000 to the parish to offset the cost of operating the gym. Though we had 14 business ads that are now on displayed in the family center, we were unable to generate renewal income from them because gym was shut down for most of the year. Finally, the parish received from CYO a gift of $500 to help with the gym’s expenses.

4. For 2010-2011 revenue goals, we are counting on the revenue from the now 17 business ads sold, the school’s annual gift of $5,000 and, renting the gym during the summer months.

5. Parish increases its total revenue goals by 2% to pay for youth ministry, “Living your Strengths” services, and 1.5% salary increases.

6. Overages were due to underestimating administrative support needs, new computer equipment, and paper supplies for mailings. Also, the parish made donations of over $3,500 to groups and organizations in need. These donations were made possible because of a refund check from Catholic Relief Services.

7. Faith formation ministries increased by $23,863. These increases are due to EDGE, life Teen, the Strengths services, bible study program, and benefits.

8. For this budget, the Pastoral Assistant for Outreach was one person instead of two. Hours required for the position were underestimated and accounts for most of the overage.

9. The parish provides the parish school a subsidy of $190,200 and indirect support of $56,420. Indirect support includes paying for property and liability insurance, utilities, general maintenance and general supplies. The total for direct and indirect is calculated by multiplying 28% of the previous year’s Sunday Gifts.

10. The overage was due to repairing church light sockets, painting Unity Place interior, and applying new asphalt to a section of our parking lot.

11. At the end of the year, the parish stills owes $15,250 on its Palisades pledge. The archdiocese expects the parish to complete its pledge by June 30, 2012.

12. The parishes unrestricted cash reserves for general operations got a needed boost. By yearend, our cash reserves were just under $50,000. Our cash reserves should have a balance that is equal to three months of expense or about $246,000. Plans are under consideration to address this need.

13. Our generous parishioners help our parish exceed its Annual Catholic Appeal goal. Any refund will be directed to support Life Teen operating costs.

14. The parish had a family center construction loan balance of $129,960 as of June 30, 2009. The loan amount is now zero.

15. The sports floor replacement and water intrusion costs were $258,095. As of this report, the loan balance is $94,110. Because of the parish school’s contribution of $75,000, architect and construction settlement agreements that added $80,000 plus additional services at no cost, 25 parishioners who made one to three year pledges, and the remaining pledges from the debt reduction campaign, the parish is expecting to end with a zero loan balance.

16. The parishes owes the corner lot on 154^th and 21^st Ave SW. The parish leases the house to a family that attends our parish school. A special three year pledge of $25,000 and lease income provides funds for the monthly mortgage payment ($2,400), property taxes, utilities and general maintenance. The archdiocesan loan is a thirty-year mortgage at annual interest of 6.75%.