Many of you have expressed concern over the impact of Covid-19 on collections and the additional expense of our beautiful new church. At the July Finance Council meeting, Father Jacobi asked members Dennis Kanter and Ray Rudnicki to prepare this summary report of the major items affecting Holy Spirit’s budget.
The church is enjoying some expense savings, as our janitor retired and the cleaning of the old church building has been taken on by volunteers. In addition, parishioners are donating Covid-19 supplies. Since we can forego this expense as long as these donations continue, this expense has not been included in the budget. However, expenses are increasing due to the new church. The major expense increases include: mortgage payments ($86,000), janitorial service ($23,100), property insurance ($18,000), and utilities ($22,000). As budgeted, total expenses will increase $60,000 from fiscal year 2020 (July 1, 2020-June 30, 2020).
Church income is primarily dependent on your generosity in donations at the Sunday and Holy Day Masses and to the new church fund. Due to Covid-19, public Masses were cancelled for eight weeks and now attendance remains optional. As a result, collections for fiscal year 2020, ending June 30, 2020, fell ($39,500) below the budgeted amount. However, total income exceeded the budgeted income and the prior year’s income with unanticipated non-recurring receipts from the Federal Government Payment Protection Program grant ($55,000), and from the Archdiocese for a portion of the sales price of Immaculate Conception Church ($65,000). In addition, our parish received $65,000 from the City of Mustang for the future expansion of Sara Road, which was used to help pay for the complete repaving of the old parking lot. While Mass attendance is increasing, numbers remain around 60% of pre-Covid-19 Masses and collections are under budget. Weekly collections will need to increase to $12,800, or by $1,170 over last fiscal year’s budgeted amount to meet projected expenses.
Many who are unable to contribute monetarily are making significant contributions of time and talent. Please know that these gifts are invaluable to the mission of our church and are greatly appreciated.
Our parish has two loans with the Archdiocese to fund our new church. Loan 1 is a permanent loan currently at 1.41% interest for $2,000,000 to be repaid over 20 years with interest only being paid for the first six months (July -December 2020). These payments come out of our regular Sunday Collection. Loan 2 is a shortfall loan also at 1.41% for $1,400,000 to be repaid from the remaining new church pledges ($504,000), our share of excess funds pledged to the Archdiocese’s “One Church Many Disciples Campaign” ($343,000), the 2020 & 2021 Oktoberfest proceeds ($110,000), other non-pledged donations, and, most likely, a future pledge drive. The interest rates on both mortgages are variable and can increase or decrease in accord with market interest rates, so this year’s budget uses a conservative rate of 3%.
Should we encounter emergency expenses or shortfalls, we are fortunate to have $190,000 in savings, of which $175,000 is in the PDLF savings account with the Archdiocese and $15,000 with the Catholic Foundation. We plan to maintain 2 months of regular expenses ($114,000) in our checking account.
NEW CHURCH COSTS AND FUNDING
A report will be provided at a later date.