1. 2015-2016 – Planning Overview September 2015 1

2. New Planning Committee established – 2013 New Planning Committee established – 2013 – 6 Pastors, 1 Finance Council, 8 Chancery Strategic Plan adopted 2014 Strategic Plan adopted 2014 – In year 2 Kick off meeting – February 5, 2015 Kick off meeting – February 5, 2015 Assumptions approved February 2015 Assumptions approved February 2015 2

3. Budget Process – May 2015 Budget Process – May 2015 – Department Executive presentations – Planning Committee debate and discussion Review with Audit Committee – June 2015 Review with Audit Committee – June 2015 Review with Finance Council – June 2015 Review with Finance Council – June 2015 Bishop’s Approval Bishop’s Approval 3

4. Declining households participating in parish life Declining households participating in parish life Declining Number of Active Priests Declining Number of Active Priests Facility Structures in need of repair Facility Structures in need of repair Parish Reconfiguration Process Parish Reconfiguration Process Parish and Diocese Financial positions need to be managed Parish and Diocese Financial positions need to be managed 4

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6. Households in the Diocese 81,000 Households in the Diocese 81,000 Average number in a family2.7 Average number in a family2.7 Estimated Catholics In the Diocese 218,700 Estimated Catholics In the Diocese 218,700 Catholic Attending Mass – October 2014 77,000 - Retain Catholic Attending Mass – October 2014 77,000 - Retain Not active in parish life 141,700 - Renew % at Mass - 2014 35% - 2013 36.5% - 2013 36.5% 6

7. Baptism Baptism – Minor2,802 – Adult 344 First Communion 2,671 First Communion 2,671 Confirmation - 2,739 Confirmation - 2,739 Marriages - 865 Marriages - 865 Funerals – 3,901 Funerals – 3,901 7

8. How do we retain the current 77,000 active practicing parishioners? How do we retain the current 77,000 active practicing parishioners? How do we reengage the 142,000 who are no longer active? How do we reengage the 142,000 who are no longer active? How do we retain the young adults after confirmation? How do we retain the young adults after confirmation? How we support Family life programs? How we support Family life programs? 8

9. Total Active Priests = 123 65 and over = 56 Over 75 – 15 65 to 75 – 41 55-64 – 4067 below 65 45-55 – 11 35-45 - 11 27 below 55 25-35 – 5 9

10. Deacons Ordained -- 75 Deacons In Formation - 25 Class of 2016 - 7 Class of 2018 - 13 Class of 2020 - 5 – still accepting applicants Recruitment is working Training and education has been successful Once ordained - programs are developing to create teamwork 10

11. Move from Reactive to Pro-active mission driven Move from Reactive to Pro-active mission driven Welcoming and open for Business Cathedral - $ 10 million Cathedral - $ 10 million Christ the King Retreat - $ 750,000 Christ the King Retreat - $ 750,000 Parishes & Diocesan Schools Parishes & Diocesan Schools 11

12. With 123 priests ( # is declining) and 75 Deacons (# is growing) how do we continue Evangelization as well as invest in our facilities and at the same time manage the operational side of the parish ? With 123 priests ( # is declining) and 75 Deacons (# is growing) how do we continue Evangelization as well as invest in our facilities and at the same time manage the operational side of the parish ? 12

13. So what is the plan? 13

14. You have heard it numerous times before The plans have not changed- It is getting closer It will be successful if we work together and address issues logically and with common sense 14

15. From 134 parishes into 27 Pastoral Care Areas (PCA) From 134 parishes into 27 Pastoral Care Areas (PCA) – No planned closing of parishes Will require adjustments to Mass schedule Will require revenue and expense management – Deacons assisting Priests – the Ministry – Lay personnel- parish operations- The Administration – Shared services and outsource clerical tasks to experts 15

16. Key – Focus on Evangelization Key – Focus on Evangelization Key – Good Communication & Teamwork Key – Good Communication & Teamwork Key – Good & logical operational decisions Key – Good & logical operational decisions Key - Reduce the Parish Administration work load Key - Reduce the Parish Administration work load Goal - Reduce Risk of Change 16

17. Coming In November Danielle Cummings Danielle Cummings 17

18. Start with the current situation and make incremental improvements Start with the current situation and make incremental improvements – Hedgehog Strategy Implement Best Practices Implement Best Practices Correct mistakes quickly when they take place Correct mistakes quickly when they take place 18

19. 6/30/116/30/2014 Total Income 52,704,48755,833,099 Payroll & Benefits 25,639,04426,477,024 Other Operating Expenses 26,620,78925,127,994 Program Related Expenses 4,964,4867,088,133 Total Expenses 57,224,31858,693,151 Operating Deficit (4,519,831) (2,860,052) 19

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21. Operating Income Operating Income – 60 parishes had positive operating income = 42.9% – 80 parishes had operating loss = 57.1% Net Income Net Income – 77 parishes had positive net income = 55% – 63 had net losses = 45% 21

22. We are making good progress We are making good progress Reporting is getting better and more timely Reporting is getting better and more timely Parish cash flow and profitability need to be closely managed Parish cash flow and profitability need to be closely managed – Make the right decisions for the future Address the main risk - Changes to the mass schedule Address the main risk - Changes to the mass schedule Parish Services Department focus is on Parish Services Department focus is on – Providing consulting/ guidance on financial and operational issues/concerns – Operational control environment in this time of change 22

23. Develop and implement a business plan Develop and implement a business plan Reduce administration within the parish PCA Reduce administration within the parish PCA – Payroll processing Move the Diocesan Payroll services department – Bookkeeping Move to a third party bookkeeper – Information Technologies Use Diocesan expertise for oversight 23

24. Manage the balance sheet Manage the balance sheet – Property and related assets Increase revenue Increase revenue – Evangelization !!!!! – Increased offering program – Renewed – Planned giving programs- Implemented Reduce expense Reduce expense – Shared Services – works!!! – Payroll to the Diocese; Bookkeeping to third party – Reduce facility expenses where possible PCA Process should ensure system stays financially healthy 24

25. In the Chancery, our job is to support you, as you go through the PCA process and address the critical issues. In the Chancery, our job is to support you, as you go through the PCA process and address the critical issues. Operationally, together, we implement best practices to meet the needs of your parish to allow the priests and deacons focus on ministry programs Operationally, together, we implement best practices to meet the needs of your parish to allow the priests and deacons focus on ministry programs 25

26. Keep the people in the pews – in the pews – 77,000 Keep the people in the pews – in the pews – 77,000 Increase participation in Catholic faith – 142,000 Increase participation in Catholic faith – 142,000 – Bring adults who left – back – Re-engage youth and young adults – Family life and the need for their Catholic Faith Manage the Diocese finances in this time of significant change Manage the Diocese finances in this time of significant change – Business plan for all entities with strong Board of Trustees – Financial control and discipline – Focus on funding the future - stop funding the past 26

27. Execute the strategic plan Execute the strategic plan – Focus – few objectives and achieve them- Hedgehog Successfully implement the PCA process Successfully implement the PCA process – Over the next 10 years – Let it happen naturally- bottoms up Mentor and monitor the new trustees at each entity Mentor and monitor the new trustees at each entity Monitor the Parish Financial stability Monitor the Parish Financial stability – Implement parish administration program Successfully implement the Catholic school strategy Successfully implement the Catholic school strategy 27

28. Need to create Change Need to create Change – If we do not change – someone will change it for us We must create positives We must create positives – Do the hard changes now – A positive implemented too late = reaction/defensive – A Positive implemented early = proactive It will not be easy It will not be easy – Communication – Everyone pulling together – Patience 28