Here are CCC treasurer Kris Reppert's remarks to the congregation on Sunday, December 11.
Good morning. I’m Kris Reppert. I am your Treasurer. I’m here to report on the status of the 2012 budget.
In August, the Finance Committee outlined the process Chapter would follow for next year’s budget and we also met with the Stewardship team to set a target for pledges – something that had not bee done in the past. Our target for pledges is $445,000 and represents 89% of our employee Compensation and Benefits. (this info has been in WW and the service program for several weeks and if you’re interested in further details of how we came up with that number, please come see me).
With the stewardship campaign coming to a close, and having received input for expenses from Chapter members and various committees, the Finance Committee met on two evenings last week to compile a budget for Chapter’s consideration at their next meeting, Thursday December 15.
Our pledge total as of last Monday was $253,000. We believe there’s another $97,000 still to come in based on people who have pledged in the past, but have not yet pledged this year. That’s $350,000 almost $100,000 short of our goal of $445k. We will be drawing $347,000 from our various investments and there’s another $117,000 from non-pledge and miscellaneous income, for a working total for revenue of $814,000.
Our total requested for expenses was $913,000 – a deficit of $99,000 – keeping in mind that assumes we get the additional $97k in pledges we think will come in.
Using that scenario as option 1, we went to work on option two, then option 3. For option 2 we made some tough choices and reduced our expenses where we thought we could – and reduced the deficit in half to $49,000. For option 3, we made some severe reductions – I would say draconian reductions - and that scenario has a surplus of $2,300.
In addition, I made a promise to the Finance Committee, the Chapter, all of you and myself that we would not slip into bad practices and that we would not rob from ourselves to cover cash flow problems this year, but would draw on our $100,000 line of credit for any cash flow shortfalls this year. The line of credit – which was zero till the end of May – now sits at $77,000.
So here’s the situation: we owe $77,000 for 2011 and our full budget request for 2012 sits at a $99,000 deficit. For Chapter members sitting in the congregation this morning, fair warning – this is what we will be dealing with on Thursday. Interestingly enough, the $99,000 deficit is almost exactly the difference between the goal for pledges of $445,000 and the likely amount of $350,000. We will probably need to draw on the fraction of the Pope money we had set aside to do great things related to program here at the Cathedral and once again, the dead will have bailed out the living. This is no one’s preference.
So – I know times are tough – I was out of work for 2.5 years. But I am asking you: if you haven’t pledged, please pledge, pledge something. If you have pledged, please prayerfully reconsider your commitment. There are pledge forms in today’s service bulletin. But if you commit, we will really need you to fulfill that commitment – we will have made decisions based on your commitments and will be counting on you.
There is so much to love about this place. I mean, even if this art isn’t your cup of tea, isn’t it the greatest thing that we’re hosting this event? Isn’t so cool to have LBB events here – from Jonathan Franzen to Michael Oher? Isn’t our music program the best? It’s been called a gem by local reviewers. Isn’t the Back to Basics program terrific and intellectually challenging? Isn’t our Saturday Breakfast program the best little energizer bunny? It just keeps going and going and going. Isn’t this all worth supporting and helping even to grow? Please consider it.
Thank you.
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