1. St. Ignatius Loyola Finance Council Update
Fiscal year ending
June 30, 2016
Slide 1:
Good Morning/Afternoon my name is Chris Kuna. I am Co-Chair of the Finance Council here at St. Ignatius. Today I will present the financial results for 2016 Fiscal Year, which ended June 30th. Since I will be covering quite a bit of information over a short period of time please remember that this presentation will be posted to the parish website. Following mass several members of the Finance Council will be available in the Narthex to answer any questions you may have. 1

2. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 2:
This agenda will give you an idea of the areas we will be covering
We will start with a quick overview of the finance council
Then we will get into the numbers and review the financial results for the year
In the parishioner statistics section we will look at parish growth and some trends in collections
Then we will take a look at some of the ways that we support the Archdiocese
We will take a bit of a break from numbers and take a look what we have done with the resources we have been blessed with and discuss the challenges ahead.
Finally, we will close with a prayer.

3. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 3:
Let’s start with a quick overview of the Finance Council and its purpose.

4. Finance Council Mission
The Finance Council's purpose is to utilize the diverse talents, skills and experiences of its members to provide sound financial guidance to the Pastor - in areas such as budget planning, investment, accounting, and project financing - to ensure the financial resources of the parish are used to best serve the needs of the St. Ignatius Loyola Catholic community.
Slide 4:
Generally-speaking, the Finance Council's purpose is to provide financial guidance to Fr Norbert and to ensure the financial resources of the parish are used to best serve the mission of the St. Ignatius community. 4

5. Finance Council Members
Beginning:
Patti Cutler
John Keenan
Tom Kaetzer
Continuing:
Chris Kuna
Tony Randazzo
Olga Omandam
Melissa Guzmann
Julio Cisneros
Walter Schultz
Leaving:
Karen White
Sara Hoyle
Mark Tisius
Joe Chiavone
Slide 5:
I would like members of the Finance Council, including outgoing members, to stand to be recognized if you are in attendance.
(PAUSE)
Members of the Finance Council serve 3-year terms. Those members of the Finance Council continuing into their second and third years are listed on the left side of the slide. On the top right are three individuals who just began their first-year on the Finance Council two months ago. Those individuals listed in the bottom right represent our outgoing members that completed their terms in June with the end of the fiscal year.

6. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 6:
Now we will review the financial results for the fiscal year ending June 30, 2016.

7. 2016 2015 $2.56m $ 2.59m Weekly Collection Slide 7:
St. Ignatius relies on weekly collections to support the ministries within our Parish. Our collections for last year decreased by 1.1% over the 2015 results. It’s important to remember, we will not always have perfect weather for the Fall Festival nor can we continuously rely on generous special donations from parishioners to support the operations and ministries of our parish. In order for the Parish to remain vibrant and support the ministries we offer, we must have increasing and consistent weekly collections.
The recent debt incurred to construct the Gonzaga Center has led to several changes within the parish administration budget including having staff eliminate discretionary expenses, reducing other miscellaneous expenses throughout the parish’s ministries, and, most notably, a reduced administrative headcount at St. Ignatius. The Parish administration has had to make several rounds of tough decisions in the last 6-8 months due to declining weekly collections and have done a fantastic job in implementing sound expense management.
Now its turn to do our part. The Finance Council, in conjunction with Fr. Norbert, have agreed to personally increase our weekly contributions by 2% in what we hope will become a parish-wide initiative to help improve weekly collections and assist the parish is supporting its growing ministries and providing for surplus funds to use towards debt repayment.
Beginning this year, and continuing for the next years, we will work to retire the debt incurred from the Archdiocese for the Gonzaga Center. This debt will largely need to be retired by surplus funds generated from weekly collections, and secondarily, with a future debt reduction capital campaign. There will be more about the status of the debt with the Archdiocese later in this presentation.
As always, we thank you for your generosity in the past. We ask for your continued support of this parish and our mission and hope you will consider increasing your support level if at all possible.
Source: Lisa Kubis, Accounting Manager 7

8. Fiscal Year Actuals 2016 2015 Revenues $ 3.54m $ 3.42m Expenses
2016
2015
Revenues
$ 3.54m
$ 3.42m
Expenses
$ 3.51m
$ 3.19m
Surplus
$ 31,000
$ 227,700
Slide 8:
This slide compares this years financial results to last year. The difference between the Revenue on this slide and the Weekly collections shown on the previous slide is Fall Festival revenue, special donations, program fees and other miscellaneous revenue items. The surpluses you see here went to the Capital Campaign. I will have more information on the Capital Campaign on upcoming slides.
Despite lower weekly collections other ministries like Early Childhood Education helped generate revenues which, in total, were 3.5% above last years results. As mentioned, Parish Administration has proactively taken several steps to reduce expenses to help generate free cash flow towards debt repayment. The Finance Council has presented a balanced budget for the year to the Pastoral Council which was unanimously approved. The approved budget included approximately $148,000 in interest expense related to the Archdiocesan loan.
Source: Lisa Kubis, Accounting Manager 8

9. Capital Campaign Overall as of 08-31-16
Gonzaga Center Cost **
$10,800,000
Pledged
6,279,469
Remaining Needed **
4,520,531
Pledge Redemption
4,622,740
Expenditures
11,382,545
Cash Position (Shortfall)
($6,759,804)
Slide 9:
This slide shows all Capital Campaign activity since the beginning of the campaign through August The cash shortfall was almost entirely funded via a loan from the Archdiocese which ended up being $6,025,000 following the final payment of all construction fees. In May and June 2016 members of the Finance Council were blessed to be able to temporarily re-negotiate the terms of the debt to an interest-only loan at 2.45% for the next twelve months given our downward trend in weekly collections. In doing so, St. Ignatius agreed to commit to using surplus funds generated from collections and income-producing ministries to prepay principal on the loan on a quarterly basis. At the end of the 12-month period, we will meet again with the Archdiocese to determine next steps and potential revised terms on the loan.
Year over year, pledge redemptions increased by approximately $600,000. We want to thank those of you who either renewed or paid your pledge during the fiscal year. If you are new to the parish, and were unable to pledge previously or if you pledged but your blessings have improved since then, please consider making a new pledge or simply increase your previous pledge by continuing your payments. Contact Ron Svoboda, our Parish Administrator, with any questions you may have regarding your pledge and to receive new or revised pledge cards.
Source: Lisa Kubis, Accounting Manager

10. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 10:
Now we will take a look at trends going on within our Parish.

11. SILCC Growth of Registered Families
2016 – 3,616
2015 – 4,010
2014 – 4,041
2013 – 4,022
2012 – 3,675
Slide 11:
In 2013 the Parish reached the 4,000 family threshold for the first time in history. In we saw very slight increase but both 2015 and 2016 resulted in declining numbers of registered families at St. Ignatius, with 394 recorded as leaving the Parish in the fiscal year.
Shift of registered families between neighboring parishes is not uncommon. We believe that the decline in registered families is a result of four primary factors which include:
First, there is continual movement of parishioners back to their “home parishes” within the area;
Second, general economic conditions, including the downturn to the oil and gas sector, specific to the greater Houston area;
Thirdly, general workforce migration, some of which related to the oil and gas downturn has caused more people to move AWAY from Houston than TO Houston to take job offers in different states in different industries;
Finally, due to several parish-wide mail circulations distributed this year, St. Ignatius has had the opportunity to scrub its registered family database which resulted in a cleaner and more condensed data file for our Parish.
Source: Fr. Norbert, Pastor

12. Registered Households
Parishioner Data
2016
2015
Change
Registered Households
3,616
4,010
(9.8%)
Recognized Donors
2,071
2,120
(2.3%)
Slide 12:
As detailed in the previous slide, registered households at St. Ignatius declined 9.8% from 2015 to Additionally, our recognized donors, represented by either envelopes or faith direct donations, fell by only 2.3% to 2,071, meaning that approximately 57% of registered households at St. Ignatius were recognized as donating money to the Parish during the fiscal year. This represents a slight improvement from 52% of registered families donating a year earlier.
Source: Lisa Kubis, Accounting Manager & Fr. Norbert, Pastor 12

13. Estimated Mass Attendance
Parishioner Data
2016
2015
Change
Recordable Donors
1,622
1,713
(5.3%)
Faith Direct Donors
449
407
10.3%
Estimated Mass Attendance
3,976
3,387
17.4%
Slide 13:
This slide provides more details of the donors and shows that the drop off in recordable donors may be due to a continued trend of families switching from using envelopes and participating in Faith Direct. Please consider using Faith Direct. You can get more information on the parish website or there will be a member of the Finance Council that can answer your questions about Faith Direct during each month’s Welcome Weekend. It’s not only easier, but also helps to generate a more consistent, and reliable, stream of cash flow for our ministries. As of June 2016 the number of Faith Direct donors had increased to 449, and further to 456 in August.
Mass attendance is an estimate but it does show an increase of 17% year over year. Obviously this increase has not resulted in more registrations or recordable donors. If you are new to the parish, please consider registering at one of our monthly welcome receptions.
Source: Mary Blanton, Clergy Executive Assistant; Melissa Guzmann, Faith Direct Sub-Committee Chair; and Lisa Kubis, Accounting Manager 13

14. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 14:
Now we will review the ways St. Ignatius supports the Archdiocese.

15. Assessment: $292,000 Received: $292,086 Over : $ 86 Returned: $ 43
2015 DSF Campaign Results
Assessment: $292,000 Received: $292,086 Over : $ 86 Returned: $ 43
Slide 15:
At St Ignatius we are recognized by the Archdiocese for our generous spirit. During the 2015 DSF Campaign, which ended on December 31, 2015, we again exceeded our DSF goal. Thank you again for being generous and supporting our Archdiocese.
Source: Lisa Kubis, Accounting Manager 15

16. Status of DSF 2016 Assessment $300,000
Pledged to Date ( ): $265,790
Participants
(Under) Pledged: ($34,210)
Paid to Date ( ): $236,287
(Under) Paid: ($63,713)
Slide 16:
For 2016, our DSF Campaign goal is $300,000. Almost $266,000 ($265,790) has been pledged to date with roughly $236,000 ($236,287) been paid as of last weekend. If you have not pledged or donated to this years DSF campaign, I encourage you to do so. There is information on how to contribute on both the parish website and in each Sunday’s bulletin.
Source: September 4, 2016 Bulletin (week prior to PRESENTATION) 16

17. Archdiocesan Special Collections
Retirement Fund for Religious Infirm Priests Propagation of the Faith Catholic University Archdiocese Social Ministry Peter's Pence Catholic Relief Services Holy Land/Good Friday Campaign for Human Development
Aid to Church in Latin America St. Vincent de Paul Black Bag Home Missions Black & Indian Mission Catholic Communications Rice Bowl St. Mary's Seminary Visiting Missionary ~Archdiocesan Assigned Disaster Recovery (North Texas Tornado) Guatemala Mission Donations
Slide 17:
In addition to our regular collections there are a number of special collections that our Parish has supported throughout the year in connection with the Archdiocese. In the fiscal year, St. Ignatius continued our strong support of these special collections. In addition to these special collections, the Parish directly supports the Northwest Assistance Ministry and through our outreach department we were able to provide funds for the needy in the amount of approximately $9,000 during the fiscal year.
Source: Lisa Kubis, Accounting Manager
2016
$208,158
2015
$224,385

18. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 18:
That was a lot of numbers. Now lets review how the Parish used the resources we were blessed with.

19. Accomplishments
Successfully moved Parish Administration into the Gonzaga Center
Completed renovations of the former administrative buildings (Faber Center), the educational buildings (Xavier Center), and Social Hall (McGivney Hall), allowing for proper storage of tables and chairs
Added electrical capabilities to the Fall Festival area
Slide 19:
In addition to meeting the liturgical needs of the community with 5 weekend masses, daily mass , holiday masses, and supporting approximately 80 plus ministries, there were a few other noteworthy accomplishments I would like to mention. They include…….

20. Accomplishments (continued)
Upper Room of the Gonzaga Center was furnished and is currently being used for Youth Activities
All classrooms and meeting rooms in the Christus Center have been repainted
Youth Ministry Department went through an administrative restructuring, allowing for greater efficiencies
Slide 20:
Additional accomplishments include:

21. Our Challenges Weekly collections Debt reduction
Introduction of Spanish - speaking ministries which include: weekly mass in Spanish on Sundays at 1:00pm, bilingual formation opportunities, and new ministries for Spanish speakers.
Slide 21:
Our achievements aren't void of challenges, however…
Annual trends in registered families, recordable donors and weekly collections is worrisome. In order to maintain and expand our facilities and ministries we need increased collections.
Debt reduction is also a main challenge for the parish. During this fiscal year we will spend ~$150,000 on interest expense back to the Archdiocese. All surplus funds from operations will be used towards debt repayment. As mentioned, the administration has taken several measures in order to lower expenses and react to a tightened budget.
In October we will begin offering a weekly mass in Spanish. While this new group of parishioners presents several new opportunities it will also come with its share of growing pains including the possible future hiring of bilingual formation teachers as well as making other ministries available to this new part of our community. 21

22. Our Challenges (continued)
Meeting our DSF Assessment for 2016
Continued support of our Guatemalan Mission and other outreach ministries
Other challenges include meeting our 2016 DSF Assessment. As presented earlier St Ignatius has paid approximately 79% of our $300,000 DSF goal to date. It’s worth mentioning that this assessment runs from January to December, meaning we only have four more months to meet our commitment. Should we fall short of our DSF assessment the church would need to fund the deficit from savings.
As always, we must also continue to fund and support our Guatemalan Mission and other outreach ministries as part of being “a people for others”.

23. Key Initiatives to Meet the Challenges
Engaged Community
“2% Contribution Challenge”
Timely Pledge Redemptions
A call to Volunteers
Slide 22:
Therefore, to meet these challenges we need to ensure that as our community continues to grow we keep everyone engaged. This is especially true for all the newcomers in the parish. Involvement by the whole community will drive us into the future and allow us to fulfill our mission. With that said, please be sure to attend the upcoming Fall Festival on the weekend of October 1st and 2nd. The festival is the largest single fundraiser for the Parish and is instrumental to the financial stability of the Parish.
Our analysis of weekly collections has shown a troubling decline over the last three (3) years. By participating in the 2% contribution challenge you’re not only ensuring that our most important ministries stay strong and vibrant, but you’re also assisting in providing the funds necessary to fulfill the longer-term growth plans here at St. Ignatius.
If you haven’t yet done so, please fund your capital campaign pledges. Additionally, please consider increasing your pledge. The more we can reduce the Diocesan loan, the lower the future principal and interest payments will be. This is imperative to our future success as a Parish community.
For us to complete the renovations of our existing facilities we ask that you pray for volunteers will come forward and help us make these necessary changes at a minimal cost. We have seen examples of this already – we sincerely thank you for your generosity. 23

24. Agenda Finance Council Overview Financial Results
Parishioner Statistics
Archdiocesan Support
Accomplishments and Ongoing Challenges
Closing
Slide 23:
To help us address these challenges I encourage everyone to join me in praying the Prayer for Generosity from our Patron Saint.

25. Prayer for Generosity - St. Ignatius
Eternal Word, only begotten Son of God, Teach me true generosity. Teach me to serve you as you deserve. To give without counting the cost, To fight heedless of wounds, To labor without seeking rest, To sacrifice myself without thought of any reward Save the knowledge that I have done your will. Amen.
Slide 24:
Eternal Word , only begotten Son of God,
Teach me true generosity.
Teach me to serve you as you deserve.
To give without counting the cost,
To fight heedless of wounds,
To labor without seeking rest,
To sacrifice myself without thought of any reward
Save the knowledge that I have done your will.
Amen.

26. St. Ignatius Loyola Catholic Church
Our Mission is to be “a people for others”
Slide 25:
In conclusion, I hope you have found this presentation to be informative. As I mentioned earlier, several members of the Finance Council will be available after Mass in the Narthex to answer any questions or concerns you may have. Finally, let's all strive to be A PEOPLE FOR OTHERS. Thank you.
St. Ignatius Loyola Catholic Church 26