Pastor’s Letter, June 4th, 2017: Update on Financial Position
Six months ago I gave you an update on our parish finances. At that time we were facing a looming financial crisis, we were experiencing a negative cash flow and our overhead expenses exceeded our monthly collections. Added to that the majority of the building fund pledges had been paid up, and we had a $30,000 per month payment on the remaining $3.1 million outstanding building debt. The funds simply weren’t there to make the payment.
In response to the situation, working closely with our Finance Council, we began reducing our overhead by making some difficult decisions regarding parish personnel. Several positions have been eliminated and those tasks assigned to remaining staff and volunteers. We negotiated with the Archdiocese for a six month interest-only payment plan on our loan and carefully managed our cash flow in order to meet our monthly obligations. Our school also stepped up and found ways to reduce their overhead expenses as well.
Many of you responded by making special donations to the building fund and stepping up your weekly contributions. I am very grateful for your support. As a result, we have been able to manage our way through a very serious cash flow situation which would not have been possible without your support.
However, we are not out of the woods yet. Our six-month interest-only loan with the Archdiocese expires at the end of June, and we will need to begin making principal payments on our loan. In addition, summer is almost upon us, and weekly donations typically drop off during this time. We could really use your help in two key areas:
1. If you have the means to make any special donations to the building debt fund, that would be extremely helpful as we prepare to make the increased monthly payments beginning in July.
2. If you are able to increase your weekly donations, and perhaps set them up on Electronic Funds Transfer (ETF) so they do not fall off over the summer, this would be greatly appreciated. Please go to our parish web site if you are interested in EFT and follow the instructions.
I have recently created a Facilities Council to help assess our facilities. The best defense is a good offense in making sure the high cost of emergency maintenance is avoided by creating a maintenance reserve fund. There are already two major maintenance issues that will have to be addressed soon. The upper two parking lots are in poor shape and the lower church roof has been leaking and needs to be replaced.
Once again, I thank everyone for your support of our Holy Rosary Parish and School. Together, we can continue to do God’s work in this wonderful community of Edmonds.