St. Mary Parish Financial Council (PFC)
Johnson City, TN
Minutes for June 24, 2021
Attendance (via Zoom)
Father Collins
PFC members: Joe Ann Lawson, Terry Maxheimer, Daniel Tejada, Marie Wilson, and Michele Yaroma
Other regular PFC meeting attendees: Maureen Raible, Becky Frye and Andrew Cooper
Special attendees: Tom Edwards, Long Term Planning Committee (LTPC) member; Jim Bready (former PFC member who will join PFC in July 2021)
Absent: Kathy Maile,
Meeting minutes
The minutes from the April 2021 PFC meeting were approved.
Introduction of new PFC member
Mr. Bready had previously been a member of the PFC and will begin his new term in July 2021.
Development Director
Mr. Cooper is the new Development Director for the parish. He has been requested to attend the meetings of the: Home and School Association (HASA), School Board and PFC. He has been requested to attend the Parish Pastoral Council meetings on an as-needed basis.
Mr. Cooper speaks English and Spanish.
Mr. Cooper met with personnel from the diocese and other schools on how to bring additional funds to the parish.
Mr. Cooper will spearhead the October appeal for the school.
Funds held in trust
Ms. Raible raised the issue regarding whether to transfer $20,000 to the savings account to increase the balance of the funds held in trust account. The matter was discussed as a group and not a voting issue. It was the consensus of the PFC that $20,000 should be moved to savings to increase the balance of the funds held in trust account.
Long Term Planning Committee (LTPC)
Mr. Edwards advised that the LTPC is consolidating the information it has received to date and is considering hiring experts in long term planning to assist the parish in this endeavor. The LTPC is gathering the costs of engaging an expert in this area.
The LTPC will meet on the first Thursday of July 2021.
Article in The Pillar
A recent article in The Pillar contained negative information regarding Bishop Stika and his administration of the diocese.
An issue was raised concerning our parishioners’ trust and confidence in diocesan assessment of St. Mary’s funds given the negative financial description regarding the use of funds at the diocese
Father Collins advised that there are two sides to the story and that the PFC cannot do much regarding the issues raised in the article. He further advised that individual parish members can contact the diocese if they wish.
Maintenance issues
The HVAC control panel currently in service is the original. Although it is currently operational, it is old and can no longer be repaired. Three proposals for replacement were submitted and Cook’s Mechanical was the selected bid. This company currently services the school.
The air conditioner, air handler and geothermal units are also old and money will be needed to replace these aging assets. There are funds in the FY 2022 budget to cover some, but not all, of these items.
Future funds received from the PPP loan may be considered for capital replacement of some of the above-mentioned items.
Parish FY 2022 budget
Prior to the PFC meeting, Ms. Yaroma sent a list of questions to Ms. Raible and PFC members concerning the proposed FY 2022 budget. A copy of these questions is included as part of these minutes.
Several hours before the PFC meeting, Father Collins called Ms. Yaroma and advised he appreciated the questions. He advised he was confident in the church budget figures but, upon closer review of the school budget, he still had questions, particularly as it related to school revenue. He planned to meet with Ms. Raible, Ms. Frye and the school bookkeeper to tighten the school budget numbers. Since such a meeting could not be conducted before the scheduled PFC meeting, it was decided that the school budget would be discussed at a future PFC meeting and the submitted questions related to the school budget would be deferred until after the meeting of the parish personnel.
Father Collins provided responses to the church budget questions. Unfortunately, during the discussion neither Father Collins nor Ms. Yaroma had access to the questions and the conversation was based on their recollection of the questions. The questions and responses are summarized as follows (questions in bold, responses in italics):
The projected total income of accounts 4101 through 4105 is $1,069,542 approximately $87,000 more than the actual for the current year. How was the budgeted amount estimated? There is an increase in in-person attendance after COVID restrictions and an expectation, based on trends, that revenues will increase with more in-person attendance.
What is the cause of the increase in 5140 copier expenses from actual of $1,725 to budgeted amount of $5,800? New office copier in the church.
Do we expect $0 in 5149 legal expenses for the upcoming year? Yes. Prior year related to sale of Georgia property, a one time issue.
What is the cause of the increase in total liturgy expenses (5302 through 5312) from actual of $8,080 to budgeted amount of $20,743? Increase in in-person attendance resulting in increased costs after COVID restrictions.
What is the cause of the increase in total child faith formation (5410 through 5421) from actual of $7,229 to budgeted amount of $13,125? Increase in in-person attendance and more interaction with ministries after COVID restrictions.
What is the cause of the increase in 6040 property maintenance-parish from actual of $5,164 to budgeted amount of $15,000? There does not seem to be a breakout between the church and the school, but there is a breakout for residence (6041). Would it not be appropriate to allocate a portion to the school to accurately reflect the expense? In prior year, there were significant cut backs in expenditures to COVID. It is anticipated that in FY 2022 expenses will be more normalized. The costs are properly allocated between the church, school and rectory in the budget.
What is the cause of the increase in 6042 ground care-parish from actual of $7,548 to budgeted amount of $11,250? There does not seem to be a breakout between the church and the school, but there is a breakout for the residence (6043). Would it not be appropriate to allocate a portion to the school to accurately reflect the expense? In prior year, there were significant cut backs in expenditure due to COVID. It is anticipated that in FY 2022 expenses will be more normalized. The costs are properly allocated between the church, school and rectory in the budget.
What are the major repairs (projects) for 6140 major repair parish budgeted amount $17,500 and 6141 major repair school $17,500? Shouldn’t the 6141 account be allocated to the school? Costs are related to replacement of aging assets. Per Ms. Raible: Diocese required the major repairs be allocated to the church.
St. Mary’s School
The school received approximately $68,000 from EANS. The income will be recognized in FY 2021. The school will apply for another grant.
Miscellaneous
The money from the PPP loan has not been received by the parish. This matter will be discussed when the funds are received. At this time, PPP amounts are not reflected in the FY 2021 records or in the proposed budget.
The budget is due to the diocese by August 15, 2021. It will not be submitted until the PFC has the chance to review the revised school budget.
Next PFC meeting
Next PFC meeting July 29, 2021 in person at place to be determined
