“Family taking care of Family…”
Sts. Joachim & Ann Parish Five-to-ten year Financial Plan
Operating Budget
 

	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019
Total Income	2,314,338	2,381,037	2,449,957	2,521,178	2,594,783	2,670,857	2,749,490	2,830,774	2,914,807	3,001,687
Total Expenses	2,241,938	2,318,843	2,361,435	2,405,250	2,450,337	2,496,754	2,555,977	2,629,078	2,705,094	2,783,994
Net Income	72,400	62,194	88,522	115,928	144,446	174,103	193,513	201,696	209,713	217,693
Less ordinary Loan Principal pmts.	(175,125)	(190,570)	(209,274)	(228,934)	(249,600)	(271,323)	(38,938)	0	0	0
Net Cash Increase/Decrease	(102,725)	(128,376)	(120,752)	(113,006)	(105,154)	(  97,220)	154,575	201,696	209,713	217,693
Added $$ needed to break even	102,725	128,376	120,752	113,006	105,154	97,220

 
● Total Income: Based on recent trends of revenue and expenses, as a starting point we project the continuation of our historical pattern of an average 3% annual increase in revenue.  According to our history, this would be the case if there is no purposeful change in our patterns of giving.
● Total Expenses: Based on recent trends and standard financial forecasts about the current climate, as a starting point we project a 3% increase in expenses between this present fiscal year and the next, which begins July 1, 2010.  This is because we don’t know how this year’s salary freeze may or may not be compensated for in next year’s faculty salaries according to the archdiocesan pay scale.  Thereafter, we project an average annual increase in expenses of 2%.
● Net Cash Increase/Decrease: Our income would be fine if it were not for the debt payments each month.  Debt interest is included in “Total Expenses.”  Ordinary debt principal payments are listed.  This results in a series of net cash deficits in the operating budget of $100,000 or more for the next five years.  Without a change in giving, this would deplete the parish’s unrestricted savings in 3.5 years.
● Ideally we should be designing this plan not only to get to a break even point, but also to increase our savings safety net along the way.  We currently only have two months’ worth of operating expenses in unrestricted savings.  This is not a sufficient financial safety net.  However, given the demands involved in just breaking even we did not deem it doable in the short term.  You will notice on the above chart that we will be able to begin increasing the strength of our savings safety net in FY2016.
● Added $$ Needed to break even:  The amount of additional cash needed to break even, as shown above, will require the weekly Sunday Offering to be increased substantially. Beginning immediately, for the remaining nine months of FY2010 the Sunday Offering needs to increase by an average of $2900 per week.  Needed increases in subsequent years can be seen on the charts accessible via the link below.
● All of this is only true if we also collectively embrace what follows regarding the Christmas Club for Major Needs.
 
Christmas Club for Major Needs

Beginning Balance as of 30 June 2009	FY2010 214,333	FY2011 274,120	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018
Projected Annual Contributions	127,787	131,621	133,595	135,599	137,633	139,698
Additional Roofing Gifts Received to date	95,500
Cost of Junior High Roof	(113,500)
Cost of Elementary Roof
Cost of Fire Alarm Panel			(60,000)
Accelerated Debt Payments			(175,000)	(175,000)	(175,000)	(175,000)
Accumulate Reserve for Church Interior	(50,000)	(50,000)	(50,000)	(50,000)	(50,000)	(50,000)	(50,000)	(50,000)	(50,000)
Additional $$ Needed to Balance Fund		119,259	151,405	89,401	87,367	85,302	50,000	50,000	50,000
# Families needed participating at $50/month	213	418	475	375	375	375	83	83	83

 
● Recommendation is to expand the scope of the Christmas Club to include not only debt reduction, but short-term infrastructure repair and eventual completion of the Church.
● If we sacrifice enough according to the charted amounts above we can eliminate our debt by 2016 and save $250,000 in interest payments!
● If we sacrifice enough according to the charted amounts above we can pay for our roofs and fire alarm panel and amass $450,000 toward the completion of the Church along with whatever Fish Fry revenue comes in during that time.