Finance & Asset Council

Attendees:

Fr. Rob Howe, Pat Regier, Pam Gandy, Dennis Thiel, Andy Pasztor, Judy Gross, Kevin Spencer, Kathy Fothergill

Reported by: Fothergill

Opening Comments:

Fr. Rob updated the Council on the status of the playground. We are in contact with an attorney (provided by the Diocese) who will advise us on the project. We may get some grants (possibly around $30K) to offset the funds we are putting into the project. We plan to add a new member (Cathy Ahearn) to the Finance and Asset Council in the coming months.

Financial Results as of September 30, 2023: Net Assets for the current fiscal year (which began July 1) increased by $20K as total revenue exceeded expenses. Total Revenues, however, were lower than Budget by $21K, due to a decrease in Weekend Collections. October collections have improved, and we expect to close the Budget gap by December. Other Income was slightly higher than Budget due to Interest Income. Our Total YTD Expenses were better (lower) than Budget across most categories, with the exception of Faith Formation programming expenses. Christian Service balance reflects emergency assistance claim payments which were slightly lower than in the prior year, although claims have increased in October. Later this month, a team of parishioners and Fr. Rob will begin the review of grant applications as part of our Christian Service outreach ministry. We received 53 grant applications, including applications from four new groups. We plan to award a total of $125K in grants this fiscal year. Over the past 40 years, we have distributed $3M in grants for Christian Service.

Christ Mission Appeal 2023 kicked off last week. Fr. Rob sent out a special message and video last week. Parishioners should have received a mailing from the Diocese. Our parish target, set by the Diocese, is

$273,030, which is a 9% increase vs. last year.

Facilities Update:

Work Completed – Installed shut-off valves to the former school building. Gym and social hall already have appropriate shut-off valves. The City Council has approved the playground replacement project. Work in Process – Conduct walkthrough of church and parish facilities. Continue to work with the City on playground replacement project including property transfer documents.

With the help of Dick Dolinski, we have applied for grants for the playground replacement project to community foundations and clubs including Charles Strosacker Foundation, Midland Kiwanis and Midland Rotary. Organizations have pledged a total of $40K at this time. Our first meeting with City officials regarding the expected process will be on November 1.

Roundtable:

• We are still looking for a High School Youth Minister Coordinator.
• Our annual contributions to Christ Mission Appeal for the last two years averaged $208K. The Diocese has given us an assessment for this year of $273K. The participation rate of CMA (cards that have been returned) in the past few years has been around 25 – 29%. While the number of returned cards has dropped, the average gift has increased.
• Our next Finance and Asset Council meeting will be held jointly with the Pastoral Council on December 13. Pat Lautner will be making a finance presentation to the Pastoral Council on November 8. Our Council members are invited to join that meeting for Pat’s presentation.

Meeting adjourned at 7:40p.m.

Attendees: Annette Clark, Dick Dolinski, Joe Dostal, Kathy Fothergill, Pam Gandy, Fr. Rob Howe, Jim Marinek, Lyn Pajk, Jeff Paulus, Patrick Regier, Cathy Richard, Dennis Thiel, Barb Warczinsky

Excused: Judy Gross, Dan Kozakiewicz, Jim Mahoney, Andy Pasztor, Kevin Spencer

Minutes

• Meeting began at 6:34pm
• Jeff Paulus moved and Annette Clark seconded the approval of the minutes of the April 19, 2023 Pastoral Council meeting. The motion carried.

Opening Comments—Fr. Rob and Patrick

• An agreement in principle has been reached with the city of Midland to accept the Blessed Sacrament playground as city property. The city will be responsible for all maintenance, liability, and any other obligations as sole owner. The current equipment has deteriorated, cannot be repaired, and must be replaced to meet current standards and mitigate potential future injury-related liability claims. In turn, the parish will provide funds not to exceed $200,000 to purchase new playground equipment to meet existing standards including Americans with Disability Act (ADA) requirements. Funds will come from COVID-related federal funds that have been received from the government by the parish. This is a “win-win” situation; the city (and the neighborhood) gets the playground as part of Wallen Park and the parish no longer has maintenance, insurance, and liability risk-exposure costs.

Faith Formation—Lyn

• Lyn updated the Council on the various Faith Formation programs  including the following:

• Cedar Point Trip—45 youth are registered to date for the trip.

• Outreach—Justin is leading the trip leaving on June 11 with about 17 youth who will be working on four projects including a soup kitchen and fire damage repairs.
•  Planetarium Trip—visit to the Delta Planetarium in Bay City is scheduled for middle school students on June 14. Faith and science will be part of the discussion.
• Baptisms—Baptisms are up—described as “blocks of babies!”
• Vacation Bible School (VBS)—VBS is coming soon. About 70 youth are already registered. The program is in partnership with St. Brigid and Our Lady of Grace.
• Adult Faith Formations—The program is proceeding well. 12 new small faith groups have been formed. A current project is making prayer beads. Another session of Theology By The Glass is scheduled for June 14.

• Corpus Christi Bike Ride—The annual “procession” will be the bike ride from the Tridge to the Cottage Creamery on June 8.
• Garden Stroll—Four parishioners’ houses will be open for a stroll through their gardens at the end of this month.
• Emily Janoch Presentation—Greg and Nancy Janoch’s daughter, Emily, is employed by CARE working on various projects assisting the poor. She has just returned from a project in Ethiopia and will be speaking about her experiences there at the Parish Center on June 27 at 1:00-2:30pm.
• “Kingdom Builders” will be the theme for next year’s programs
• Organization Changes—With Lyn’s retirement, Justin Rose will become the Director of Youth Programs and Christy Granda has been hired to be the Director for Adult Programs. She will begin on June 22.

Finance Update—Patrick

• Patrick reported on Parish finances through the period ending May 31, 2023. The balance sheet increased by $652K to a total of $2.84 million largely due to a $333K payment from the federal COVID program, the $187K bequest from the Glenn Waters Estate, and higher weekend collections.
• The Christian Service Commission outreach balance was reduced reflecting the payment of $125K made to 50 different recipient non-profit organizations.
• Weekend collections through the end of May are up $75K over budget. Overall expenses are higher than the budget by $23K driven primarily by increased utility costs and a CMA deficit of between $30-45K.

• The 2023-24 budget was approved by the Finance Council at their last meeting in May. It calls for Revenues of $1.7 million and an “Operating” surplus (excluding Major Expenditures) of $136K. This is an increase of $11K from last year. Wages are projected to increase 6% and Benefits by 4% while other expenses are expected to remain flat. An overall budget Revenue less Expenses shortfall of $64K is planned after anticipated expenses of $136K for Major Expenditures.

Roundtable Updates

• Annette—reported that “One Week, One Street” program is underway.
• Jim and Barb—expressed heartfelt appreciation to Lyn for all of her contributions to the parish with her many skills, competencies, and enthusiasm along with her unique joy-filled personality. They wished her well and Godspeed in her future endeavors.

• Barb—reported on the CRHP 17 celebration at Richard’s home and their desire to keep the effort moving forward. An 85-year-old woman is interested in participating next year.
• Lyn—had the last word (as usual?) She thanked the Council members for the gift of their time and for being the first line of parish support. She urged the Council to continue doing what St. Mother Teresa always advocated, viz., “do small things with great love!”
• The next meeting of the Pastoral Council will be held on September 6. 

The meeting was adjourned at 7:19 pm followed by refreshments in honor of Lyn.

Attendees:  Fr. Rob Howe, Pat Regier, Judy Gross, Andy Pasztor, Pam Gandy, Joe Dostal, Dennis Theil, Kathy Fothergill

Reported by:  Fothergill

Opening Comments:

Fr. Rob reported that the income level has been good, with the exception of Christ Mission Appeal (shortfall vs. Diocesan funding target).  There are several changes to our staff.  Lyn Pajk will be retiring in June.  Christy Granda will lead Adult Faith Formation effective August 1. Mike Percha is retiring, and we plan to hire a part-time Maintenance employee.  Starting in June, the Arnold Center will take over the cleaning of the church.

Financial Results as of April 30, 2023:

Net Assets increased by $632K for the current fiscal year which began July 1, 2022.  The increase was due to a $333K payment from the Federal COVID relief program, $187K donation from the Glenn Waters Estate, and higher Weekend Collections. YTD Weekend Collections were $150K higher than budget, including $25K above budget in April. Total Expenses in April were higher than budget by $14K, largely due to the purchase of audio equipment for the Social Hall which is expected to be installed in August.  Student-related expenses for Faith Formation were higher as a result of retreat fees for a Youth conference in Indiana.

Christian Service balance decreased by $145K, with $125K in funding grant payments made to 50 different organizations.  Emergency assistance claims were higher than expected in April but aligned with YTD expectations.

Major Expenditures Fund increased due to the $187K estate donation.  Expenditures included church carpet installation and repairs to the church air handler.  Long-term projects may include the roof of the parish center and the former school building and the heating system in the former school area.

Through April, donations to Christ Mission Appeal are at 80% of our $250K target.  A new assessment from the diocese will begin in the Fall.

Weekend Collections are tracking ahead of the budget through April, and this trend has continued into May.

Budget for 2023-2024:

We will use the current year’s budget as the basis for planning the upcoming fiscal year budget.

• Weekend Collections – increase by $75K vs. Current Budget; lower than Current FY Estimate
• Other Income – reduce by $11K, due to lower student activity fees
• Salaries – Merit and COLA increase of 6%, partially offset by retirements; will follow Diocesan  guidelines for Clergy
• Medical Benefits – increase 4% (Michigan Catholic Conference guideline)
• Non-Medical including Dental – small change from current year
• Higher utilizes $4K
• A payment of $45K for Christ Mission Appeal will be included in Budget to cover potential shortfall vs. expected assessment from Diocese

It was noted that Utilities may have a higher increase than initially forecast.  The Budget proposal was unanimously accepted by the Council members.

Facilities Update:

Joe Dostal looked at the heating system last Fall, and recommended the installment of shutoff valves. Now is the time to implement that recommendation. An estimate will be provided by a local heating and cooling provider.

Parish Playground:

Fr. Rob and Patrick presented a proposal to partner with the City of Midland to fully replace the playground. The existing playground is reaching the end of its asset life. The parish would partner with the City and deed the existing property to them as well as fund the new equipment up to $200,000. The City would share the new playground design with us and install an ADA-compliant playground on the current site. It will then become part of the City Park & Recreation property. All future maintenance and liability will be the City’s responsibility. Council approved the proposal. The next step is to review with City Park & Rec Committee (June 6) and then seek approval from the City of Midland Council.

Roundtable:

The next meeting will be held jointly with Pastoral Council on June 7, 2023, at 6:30 p.m.

The meeting adjourned at 7:45 p.m.

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