2015-2016 – Planning Overview September 2015

1. 2015-2016 – Planning Overview September 2015

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

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

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

5. Total Households

6. Catholic Community • Households in the Diocese 81,000 • Average number in a family 2.7 • Estimated Catholics In the Diocese 218,700 • Catholic Attending Mass – October 2014 77,000 - Retain Not active in parish life 141,700 - Renew % at Mass - 2014 35% - 2013 36.5%

7. Statistics-2014 • Baptism • Minor 2,802 • Adult 344 • First Communion 2,671 • Confirmation - 2,739 • Marriages - 865 • Funerals – 3,901

8. So the Issue • 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 • How do we reengage the 142,000 who are no longer active?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 retain the young adults after confirmation? • How we support Family life programs?

9. Number Priests is Declining Total Active Priests = 123 65 and over = 56 Over 75 – 15 65 to 75 – 41 55-64 – 40 67 below 65 45-55 – 11 35-45 - 11 27 below 55 25-35 – 5

10. Number Deacons is Increasing 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

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

12. So the Issue • 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 ?

13. So what is the plan?

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

15. Parish Reconfiguration process • 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

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

17. Evangelization and Communication Coming In November Danielle Cummings

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

19. Parish Financial Current situation

20. Schedule A income trend

21. Parish Financial Performance -2014 • Operating Income • 60 parishes had positive operating income = 42.9% • 80 parishes had operating loss = 57.1% • Net Income • 77 parishes had positive net income = 55% • 63 had net losses = 45%

22. Parish FinancialsCurrent situation • We are making good progress • Reporting is getting better and more timely • 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 • Parish Services Department focus is on • Providing consulting/ guidance on financial and operational issues/concerns • Operational control environment in this time of change

23. Implement Best Practices • Develop and implement a business plan • 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

24. PCA Cash flow • Manage the balance sheet • Property and related assets • Increase revenue • Evangelization !!!!! • Increased offering program – Renewed • Planned giving programs- Implemented • 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

25. Our Job • 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

26. Keep the goals visible • Keep the people in the pews – in the pews – 77,000 • 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 • Business plan for all entities with strong Board of Trustees • Financial control and discipline • Focus on funding the future - stop funding the past

27. Steps to Success • Execute the strategic plan • Focus – few objectives and achieve them- Hedgehog • 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 • Monitor the Parish Financial stability • Implement parish administration program • Successfully implement the Catholic school strategy

28. Summary • Need to create Change • If we do not change – someone will change it for us • 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 • Communication • Everyone pulling together • Patience