St. . Norbert Financial Stewardship Presentation September 19 & 20, 2015
• Good morning/evening. My name is Ken McKinney and I am the current Chairman of the Parish Finance Council. The other people on the Finance council are Mark Muesenfecter, Joe Mooney, Juan Alvarez, Mary Bettis, Deacon Bill, Father Jim and the Bookkeeper Nancy Saffa. We also work very closely with Dave Watkins the Principal of the School. • What we have here is really pretty special and that you can’t just look at one building or group and say that is St. Norbert. In preparing for this talk I got on line and looked up the word “Parish” and there were a couple definitions but there was one that hit home for me because it addresses how we should look at the word Parish. It is “In the Roman Catholic Church, a parish is a stable community of the faithful within a Particular Church, whose pastoral care has been entrusted to a parish priest, under the authority of the diocesan bishop.” This is how I look at St. Norbert, not as just a church or just as a school but as a community that happens to include both a church and a school. It is with this thought in mind that I prepared this talk. • This summer as we were preparing and finalizing the church and school budgets we noticed some unfavorable and disturbing trends over the last several years in both the church and school financial results. Based on these trends the Finance Council discussed how we should bring this to the attention of the Parish. Father Jim thought this was serious enough that we should make sure it was brought to the attention of as many of the parishioners as possible so he suggested doing it in association with a mass during the stewardship period and we ended up with making it a part of the mass. Based on the results from those of you who recently completed the Parish viability survey this is not going to be a big surprise, as one of the questions asked during the survey was “The parish collects sufficient funds to cover ordinary operating expenses.” The Core team rated us at a 2 which is “Poor” and the Parish average was 2.95 which is between “Fair” and “Poor” for a Total Parish average of 2.48.
Church only Revenue and Expense Trend 1,100,000 1,000,000 900,000 800,000 Total Income Total Expense 700,000 600,000 500,000 400,000 2012 2013 2014 2015 2016
Church only Revenue and Expense trends : • In 2012 and 2013 revenue and expense increased at a similar rate. • In 2014 revenue increased, primarily due to additional donations from a few parishioners to cover unexpected expenses related to snow removal. • The 2014 decrease in expenses was due to 1. Decrease in Personnel costs of $ 40k due to losing both part-time priests 2. Decrease of approximately $ 20k in payments made to the Archdiocese. • In the year just ended, 2015, we saw the revenue drop back down to below the 2013 level and the expenses increased almost back to the 2013 level. This increase in expenses was due to the various payments we make to the Archdiocese. • For the 2016 budget we are projecting a slight increase in revenue due to: 1. Increased revenue from fund raising from events like the Parish Auction, the Parish Picnic 2. and a couple of new events. • We are projecting an increase in expenses in two areas: 1. Personnel cost due to annual salary increases and the additional salary of our second priest . 2. Payments to the Archdiocese. • The 2016 budgeted net excess for the Church is $38,138
School only Revenue and Expense Trend 2,100,000 2,000,000 1,900,000 1,800,000 Total Income Total Expense 1,700,000 1,600,000 1,500,000 1,400,000 2012 2013 2014 2015 2016
Trends for the School Revenue and Expenses. • As you can see we have had some dramatic decreases in both revenue and expenses at the school which is reflective of the decreases we have seen in the number of students in school. • The total school population which includes students in grades K-8 and Pre-K School has dropped by 99 students from the years 2012 to 2016. • Expenses are higher than the revenue as this variance or shortfall is the Parish School Subsidy. • With the help of Dave Watkins we made some significant cuts in the school budget and reduced the School subsidy from $176,580 in 2015 to $144,293 budgeted for 2016 while maintaining a high quality of education level for the school. • The reduction in school expenses primarily came in Personnel costs where we had several teachers retire or leave last year and we were able to replace them at a lower salary costs but still get quality teachers.
Total Parish Revenue and Expense Trend 2,900,000 2,800,000 2,700,000 2,600,000 Total Income Total Expense 2,500,000 2,400,000 2,300,000 2,200,000 2012 2013 2014 2015 2016
Total Parish results , which is a combination of both the Church and School results. • Revenue is the blue line and expenses are the red line. • It is not good that the revenue is less than the expenses. • The other disturbing item is the revenue is decreasing at a faster rate than the expenses. • The budgeted shortfall for 2016 is $173,000. • Some of you may be asking if the Church is at an excess of $38,000 and the School is at a deficit of $144,000 how do you get to the overall deficit of $173,000? The additional $67, 000 is due to a change the Archdiocese made during the summer to the teachers’ contractual year. The change was to move the teachers’ contractual year from September 1 to August 31 to August 1 to July 31 which is more reflect of the current school year. As a result, in August we owed for both the last month of last year’s contract and first month of the current years contract. • To help with cash flow the Archdiocese is allowing us to pay the first month of the new contract over the current year but from a budget perspective it all hits in this fiscal year. • I am sure some of you are saying how can you budget for a deficit? As an Accountant I don’t like it but it is realistic and by doing it, it forces us to address the issue now as opposed to later when the actual results come in. • As I will explain later in my talk we have some cash reserves generated by the We Are Norbert capital campaign to help cover this shortfall. The reserve gives us the opportunity to make corrections over time in a planned and thoughtful manner. •
The trend for the total number of … • parishioners in the parish • the number of parishioners that are giving via envelopes • and the number of parishioners not giving in a reportable manner. • The top line shows the total number of parishioner we had each year. We have seen a net decrease of 73 parishioners from 1,081 parishioners in 2012 to 1,008 in 2015. • The number of parishioners using envelopes decreased by 99 from 692 in 2012 to 593 in 2015. • The number of parishioners not giving in a reportable manner increased by 26 from 389 in 2012 to 415 in 2015.
• This slide shows the trend of the average annual giving per parishioner. • This slide is very positive. Even though the number of parishioners giving has gone down the parishioners that are giving are giving more. • This is a testament to your generosity. • The average giving increased from $226 from $1,059 in 2012 to $1,285 in 2015.
This slide shows the trend of the A verage Weekly Giving . As you can see even though the average giving per parishioner went up it still isn’t enough to cover for the decrease in the number of parishioners.
School subsidy • Total students for year 2015-2016 – 265 • Students of parish families – 186 • Students of non-parish families – 79 • Parish subsidy to school - $144,293 • Subsidy per parish student - $775
School subsidy : The School subsidy is the difference between the true cost to educate a student and the tuition paid by the student. • At the start of the school year we had 265 students in the regular school. • Of these students 186 were from parish families and 79 were from non-parish families. • The non-parish families pay a higher tuition which is more in line with the actual cost per student. • I bring this up to remind the parents who have children in the school what you pay in tuition is not the full cost to educate your child. • Last year parish families with children in the school gave $89,000 which was about half of last year’s School subsidy.
We are Norbert Capital Campaign as of July 31, 2015 Capital Campaign Revenue 460,346.01 Expenses of the campaign 65,924.06 Net available capital campaign funds 394,421.95 Campaign expenditures School A/C 80,443.15 School Computers 2,084.45 School Security System 14,665.26 School Roof 14,650.00 Gym Lighting 19,164.93 Grounds & Landscaping 4,158.96 LED Lighting 1,146.53 Sign 4,655.35 Building Improvements 4,145.55 Equipment Repair/Replacement 2,961.00 Rectory Renovation 17,983.31 Parking Lot Repair 34,530.00 Total campaign expenditures 200,588.49 Funds available for reserve 193,833.46
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