Finance Council Meeting Minutes Church of the Resurrection December 7, 2005 Financial Analysis – 7/1/05 to 11/30/05
Offertory collections have increased 24% over last year (up $49,500). Total offertory through 11/30 was $259,468. An additional $52,300 was received in debt reduction payments. Finally, $79,200 in pledge payments was collected. (Although we have only received new pledges of $4,000, we have added 52 new envelope holders this past year, so we can expect additional pledges over the next year.) We are currently generating enough revenue to cover the approximate $15,000 in monthly principal and interest, if we include campaign payments. (It was noted that donations to maintenance and repairs are put into the debt reduction fund.)
It total, we have collected 96% of the $3,168,476 pledged, leaving $130,346 (or 4%) net balance due. The gross balance due is actually $221,723, because we have received $91,377 in excess of amount pledged by some parishioners. Of the balance due, we estimate that approximately $70,000 may be written off. This represents pledges in excess of $1,000 for which no payments have been made over the past six months. We are hopeful that some payments will be made in December.
As of 11/30/05, the debt retirement fund totaled $297,200 in cash and $94,600 in investments. This amount includes approximately $82,200 for memorials (stained glass windows) and for painting the brick and roof of the old worship space, leaving $308,200 available for debt service. Dennis Bodziony indicated that the roof of the old building is leaking and will need to be repaired and that another $7,000 to $8,000 should be reserved for this. The balance in the debt retirement fund after the above is considered represents approximately 20 months of debt service. There is currently $17,000 in cash in the Lincoln account which is earning minimal interest. Dennis suggested moving this to the debt reduction fund and put into an account currently earning 4.1% interest. The $17,000 would convert from an off balance sheet to a balance sheet account. It was proposed that Finance Council establish a minimum amount to be maintained in the debt retirement fund. It was pointed out that an additional $220,000 in pledges should come in, less potential write offs of about $70,000.After some discussion, the group felt that $200,000 ($192,000 equals twelve months of debt service) should be the minimum balance maintained, with amounts above that used to make additional principal payments on the debt. An additional $50,000 paid against principal would reduce interest expense by $85,000 over the debt term. It was agreed that an additional $50,000 will be paid on principal on January 1, 2006 and that $10,000 additional per month will be paid to work the debt reduction fund to the $200,000 level. We will monitor the balance in the debt retirement fund on a regular basis. Financial Statements November financial statements were not yet available for review by Finance Council. These should be available on a more timely basis once the part time receptionist begins work (after the New Year), freeing up some of Diane Lionti’s time. Also, we plan to engage limited, part time financial assistance to review financial statements, prepare annual reports, etc. Approximately $18,000 is in the budget for this support, although we anticipate meeting this need at a much lower cost. Custodian Replacement Our
part time custodian has resigned, and a replacement must be hired. There
was some discussion of whether we should consider hiring a full-time
custodian rather than continuing with part time support plus a cleaning
service. Although we have not yet engaged a cleaning service,
there is $20,000 in the budget for this. The part time custodian
was making approximately $23,000, with no benefits, bringing the
total available to $43,000 budgeted for FY 06. If we
were to hire a full time custodian, fringes could add as much as
30% to salary costs. Flowers for the Christmas Season The poinsettias used to decorate the church during the Christmas season are fairly expensive. A notice will be put in the bulletin and in the announcements after mass that parishioners who would like to help defray the cost of flowers can put a donation in the basket in the gathering area. Christmas Letter Those parishioners who have not contributed to the offertory in 2005 and those who have contributed less than $500 during the year represent one half of the total parish community. Each group received a letter from Fr. Mark reminding them that the cost to operate the parish, including utility costs, have increased significantly and asking them to consider making a donation. A donation envelope was enclosed with the letter. Although we added 48 new parishioners in 2004 and another 52 in 2005, we have only grown by a net 20 families. Next Meeting The
next meeting will be held on April 5th. (Please note the change
from the regularly scheduled meeting date in March. |