St. Paul's Friends,
I’ve been asked by Kelly Trame to provide you an update on parish finances as we look towards our Stewardship Campaign. I’m grateful to Kelly for her work as Chair and to Jerry Martz as the committee’s vestry liaison. We’re so fortunate to have their expertise and energy in this effort.
I’m containing this update to the parish finances only. Our food pantry and pre-school are self-sustaining. So, when I refer to the parish, keep those important ministries in a different column.
Where does our money go?
60% of our budget is entirely devoted to payroll and pension-related expenses, just a little more than $303,000. Pay and benefits for clergy are dictated by the tenure of the ordained person and the size of a parish’s budget. (It’s a little more complicated than that but stick with me for now!) Our contributions to the lay employee pension program are also not negotiable. Our people account for well more than half of our budget.
Nearly 20% of our budget relates to buildings and grounds. Think of insurance, minor repairs, utilities, and the like. That’s $116,000 in rough dollars.
Welcome to $419,000 so far of operating spend.
We haven’t discussed anything like candles, bulletin inserts, liturgical supplies like wine and wafers. No curricula for Christian Ed or new music for the choir. No telephone or internet expenses, not a stamp, no cleaning supplies – and we use a lot of those! We haven’t made a copy or printed a letter yet. That’s about $55,000.
And – as part of the Diocese, we support its activities based on the size of our operating budget. That’s around $44,000 annually; think of that as our tithe to the work of the wider church.
Rounding aside, we’re in the neighborhood of $517,000 dollars. Yet our anticipated operating income is $358,619 – and we are behind budget on income year to date on pledges.
Big repairs or capital expenses are an entirely different category and we’ve had several surprises this year.When those come, there are conditions where we can use the Preservation Fund Endowment or the Tigges Endowments but they are restricted and of course every time we draw against those, we reduce their future growth opportunity. That budget for the year was $70,000 and I expect to be well ahead of that. This is in the category of surprises happen and we have no choice but to react to them; that’s what an endowment is for.
Why is the Stewardship Campaign essential to our future? It’s fairly simple.
Over the past two years, we have averaged $100,000 taken from the Operating Endowment alone. Not for emergencies. Not for surprises. Just for every day predictable, known expenses. It’s value now is approximately $400,000. That’s math you don’t need my help with. Deficits of these magnitudes are not something we can continue to survive.
Over the next two months, I hope you’ll ask questions of the Vestry and me. I hope you’ll prayerfully consider leaning in and increasing your pledge. We cannot cut our way to health and success; there are no expenses to reduce and the parish’s expenses, just like ours at home, will surely increase. Our $475,000 goal is not enough, but it would be a wonderful start!
Beyond the finances, our spiritual health demands this of us. Our time is important, certainly, but our time is not sufficient to keep the church operating. That takes giving back to God some of what God has given to us. If you haven’t pledged or committed a gift this year, I sure hope you’ll consider it for 2026. And if you want to talk with me about that directly, or to Kelly, Jerry, Father Paul, or the Wardens, we are each of us open to that conversation.
Proud to serve with you,
Ken Robinson, Treasurer