4139 42nd Avenue Southwest

Seattle, Washington 98116

206-935-8353

www.holyrosaryseattle.org

Holy Rosary Catholic Church

July 2015 - June 2016

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LITURGY AND SACRAMENTS The Altar Society met every other

Friday to prepare the church and

chapel. They diligently changed the

holy water, cleaned and polished all

the brass (candle holders and

railings), straightened the song book

racks and replaced the envelopes, as

well as other cleaning as needed.

The Liturgy Commission provided a

forum for evaluating, contemplating

and enhancing our parish's liturgical

life.

Our Lectors attended an annual meeting to enhance

their ministerial skills and faith as they proclaim the

Word of God at Mass.

Extraordinary Ministers of Holy Communion

brought the Body and Blood of Christ to each

communicant at Mass, providing low-gluten hosts as

needed, and administered blessings to those not able to

receive.

Our Hospitality Ministers greeted and welcomed people

to Mass, and helped with the good order and flow of the

Liturgy in the body of the Church while our Altar Servers

aided the priest in the sanctuary.

During the Christmas season, the

church was decorated with 25

fragrant, fresh noble firs from the

Holy Rosary Tree Lot, 10 dozen

poinsettias, and thousands of

lights. Festive hangings and cedar

garlands decorated the columns,

wall sconces and doors. Our

beloved cre che was set near the

east door and the beautiful parols

of Simbang Gabi, a Filipino

Advent celebration, were hung

from the arches!

Children, teens and adults form a

diverse and talented Music

Ministry. We have 2 vibrant and

inspiring adult choirs, along with

a joyful junior high choir and an

exuberant children’s choir.

Last Fall, we added a handbell choir,

which rang out for Christmas Eve,

Easter and various Masses during the

year. All music ministers join together

at Mass to assist the assembly’s

singing and joyfully give thanks and

praise to God!

FAITH FORMATION AND

OUTREACH Our Parish School continues to be

committed to the truth and traditions

of the Catholic faith, helping its 451 students become

self-directed in action based upon the Gospel teachings

of Jesus Christ.

Children who do not attend the School have the

opportunity for Faith Formation between Masses on

Sundays during the School year. Parish-wide family-

friendly seasonal Faith Formation events were offered

during Advent and Lent.

In December church members donated gifts for those

who may not otherwise receive anything though our

Advent Giving Trees. During Lent, we transformed

our Giving Trees into Pounding Trees as parishioners

bring back pounds of various food and household items

which help support our Holy Rosary St. Vincent de Paul.

The Holy Rosary Soup Kitchen

prepared gallons of soup during

the first two Thursdays of every

month. They could not do it

without regular donations from

the school’s first grade classes.

Our fabulous, dedicated

volunteers cooked and served

delicious dinners to homeless

teens at the Orion Center in

downtown Seattle every month.

In cooperation with Our Lady of

Guadalupe, Holy Rosary served

three Community Dinners to at

least 150 members of our West

Seattle community. The meals

also provided a time for

interaction and socialization for

all who attended.

In 2015-2016 there were…..

89 Extraordinary Ministers of Holy Communion

29 Lectors

75 Altar Servers

12 Cantors

97 Choir singers and musicians

25 Church decorators

11 Sacristans/Masters of Ceremony

25 Hospitality Ministers

10 Children’s Liturgy of the Word ministers

5 Word & Communion presiders

6 Flower arrangers

763 People at Sunday Masses each week

SACRAMENTS NUMBER

Weddings 13

Baptisms 53

First Communions 65

Funerals 16

Professions of Faith 2

Confirmations 40

Parish Statistics

July 1, 2015-June 20, 2016

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Holy Rosary’s chapter of the Society of St. Vincent de

Paul hosted a Stuff the Truck Event, Parish and

School Food drives to stock the food room, Lunches of

Love for the hungry who come to the Parish Office, and

provided Christmas help to needy families. They also

hosted Coffee and Donuts to help provide an

awareness of their ministry and give service to their

benefactors.

This past year, we have enjoyed the Missionary

presence of Fr. Dunstan in our parish and Carmelite

Sisters, Sr. Stella and Sr. Juanita, work and teach at Holy

Rosary Parish and School. These reciprocal

relationships are a hallmark of our missionary

outreach to one another. There was a recent mission to

Uganda in October, and there will be one to the

Philippines in February, 2017.

The purpose of Shoulder to Shoulder is for Holy

Rosary parishioners to have an opportunity to serve

each other. Parishioners who were ill, grieving,

homebound, facing an unexpected crisis or just

struggling to get by – were helped to bear their

burdens.

Every Saturday evening, the Holy Rosary Bus made the

rounds, bringing parishioners in need of a ride to the

Saturday Vigil Mass.

PARISH LIFE Boy Scouts focus on character development, good

citizenship, outdoor skills and awareness, fitness, and

leadership and life skills through a wide variety of

events and activities. Our Cub Scout Pack, #793, has

been in continuous operation since 1955 and is still

going strong! Den and pack meetings are held at Holy

Rosary School.

The 14th Annual Holy Rosary Fall Golf Classic was held

in October 2015 with over 90 golfers. We braved the

rain for a fun day on the course for the Endowment.

The Young Adult Ministry had a successful year

growing friendships and connecting new parish

members. We attend Mass and Coffee & Donuts

together, attended the Live Stations of the Cross and

Croatian Mass programs, and participated in CYO

softball and flag football. We look forward to future

opportunities to grow and serve with the wider parish

community.

Youth Ministry celebrated its 2nd anniversary as it

continued to show its resilience by meeting twice a

month, usually once for service and another for fun

and catechesis. Last year we had lots of events,

including family movie nights, attended the

Archdiocesan Jr High Youth Rally, and two retreats. We

ended with a picnic and bonfire on Alki Beach, which

was a great success!

The Senior Community is a vibrant, active group where

seniors of all ages share their faith and friendship

through fellowship and fun. The seniors hosted a

breakfast coffee hour every Tuesday after Mass and

had several fun activities throughout the year

including BUNCO, concerts at Mt. St. Vincent and the

Annual Parish BBQ.

The mission of Voices for Life is to serve God by

promoting Catholic teaching that proclaims human life

is sacred from natural conception to natural death. We

apply Catholic principles, science, and compassion to

defend the weak, defenseless and threatened. Our

purpose is to nurture a Culture of Life within our parish

and community.

Walking With Purpose is a weekly fellowship and

study group that helps women connect with their faith

and prayer life while finding hope and encouragement

from other women in their Parish. This program was

so popular last year several additional meeting times

were added.

The members of the League of the Sacred Heart have

no committees on which to serve, no assignments…

just prayer and attendance at funerals. This is how

they, as the older members of Holy Rosary, give

Stewardship of their time.

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2016-17 2015-16 2015-16 2014-15

INCOME BUDGET ACTUAL BUDGET ACTUAL

Sunday & Feast Day Collections 1,210,278 1,251,774 1,426,009 1,341,065

Restricted Gifts (Missions, Outreach, etc) 90,800 94,247 113,400 138,458

Other Income (Savings Interest, Use Fees, WestFest, Programs) 160,240 179,519 138,538 178,887

Fee Income (1) 93,880 121,817 85,250 86,956

Bequests 125,000 95,000 100,000 83,000

Annual Catholic Appeal Rebate (14-15 and 15-16 for Doors) 24,142 24,142 23,105

TOTAL INCOME 1,680,198 1,766,499 1,887,339 1,851,471

EXPENSES

Salaries 527,302 563,080 637,848 611,472

Benefits (FICA, Workers Comp, health, Pension) 192,140 196,655 189,637 182,385

Facilities Operations, Maintenance and Utilities (2) 258,134* 225,268* 242,831* 124,809

School Support (Excluding depreciation expense) (3) 201,180 246,427* 201,180* 144,062*

Contracted Services (Insurance, Payroll, Legal, Rectory) (4) 115,925 131,567 116,182* 99,959

Program Expenses & Parish Outreach 81,485 96,484 91,682 94,378

International Missions (from restricted gifts) 85,000 74,829 100,000 145,562

Archdiocesan & Deanery Support (5) 89,092* 138,964 138,358 112,114

Supplies (Envelopes, Postage, Flowers, Faith Formation, Office) 67,130 67,647 80,955 74,270

Business (Banking, Westfest, Golf Tournament) (6) 34,595* 43,466* 26,875 22,855

Parish Donations to Others (7) 32,980 40,565 36,000 35,393

Close to Restricted (Bell Tower, Doors, interest on rest. funds) 4,500 40,652 24,142 45,975

EXPENSES 1,689,463 1,865,604 1,885,690 1,693,234

SURPLUS/(DEFICIT) BEFORE DEPRECIATION (9,265) (99,105) 1,649 158,237

Depreciation (Parish and School Non-Cash Asset Losses) (8) 243.151* 210,811* 162,537 154,136

SURPLUS/(DEFICIT) after Non-Cash Depreciation (252,416) (309,916) (160,888) 4,101

PARISH MINISTRIES ABBREVIATED INCOME STATEMENT

*Notes

(1) The majority of Fee Income is for Dance Class and CYO. These fees offset the costs of these programs.

(2) Includes bequests in 15-16 and 16-17 expensed to the Capital Reserve Fund for large maintenance projects (after legal costs).

(3) 2014-15 School Support was not correctly accounted. The $45,219 difference was included in 15-16 expenses, but not in the budget. It went into the Centennial Fund to help pay for the Roof replacement and technology upgrades.

(4) The 2015-16 Budget did not include a rectory living space apart from meeting and office space (Archdiocesan policy).

(5) In 16-17, Deanery Support is suspended for a year due the money in deanery savings. In 15-16 it was $28,551. It will resume in 17-18. The Assessments are based upon a percentage of our ordinary income from the Annual Report submitted to the Archdiocese two years prior, after discounts for school subsidies, outreach, capital improvements, loan payments, etc.

(6) 15-16 Actuals and 16-17 Budget includes Golf Tournament Expenses, the net of which goes to the Endowment Fund

(7) 2015-16 Parish Donations to Others (portions of designated Sunday collections):

Bethlehem House $18,180

Daughters of Mary in Uganda $10,175

Carmelite Sisters of the Philippines $14,245

(8) Depreciation increases in 15-16 due to School Roof and Sewer Connection Replacements (primarily funded through School Centennial Campaign). The upcoming Bell Tower renovation will significantly increase it again.

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A LETTER FROM THE PASTOR On July 1, 2015, I began my pastorate here at Holy Rosary Parish. While Archbishop Sartain entrusted me with the care of the Church in northern West Seattle, this ministry would not be possible without so many other individuals sharing the gifts that the Lord has given to them. This Annual Report is but a glimpse of the 2015-16 Pastoral Year. In it you will find some of the highlights of this year, the Sacraments that were celebrated, the faith that was handed on, the gatherings that were held, the poor and those in need whom we served and so many other things. It is the story of the ways in which our community is striving to live as disciples of Jesus Christ, following Him on the Way to Heaven. It is the story of the thousands of individuals who are impacted by our church as we call to mind the untold others. For this I give thanks to God, and to you. It also contains a report of the finances which supported this holy work and enabled us to continue to carry out our mission for our 106th year.

A little under two years ago, Mary Simpson, our now retired Pastoral Assistant for Administration, got up at Mass and spoke about a coming shortfall that would happen unless parishioners increased their individual giving 10%. In the end, the 2015-16 budget required an increase of 7.1% in regular offertory income to balance, although there were a few omissions from the budget which would have actually required a 11.3% increase. When I arrived, it quickly became apparent that the needed increase was not happening. At the end of the first quarter, our collections were running flat, and shortly after began to decline some from the previous year, putting us on track for a 12-15% offertory income shortfall—about $175-$220,000. After cuts large and small, as well as some extra income in other areas, we ended the year $99,105 in the hole. And so I would like to provide some further information to give you a better understanding of the fiscal state of the parish—where we have been and where we are going. While normally this report would be written by our administrator, since there was a large deficit I feel that I should be the one to present it as I am the one who is accountable to you and to the Archbishop for the care of the temporal goods of the parish. This is an incredibly long written report, so I have tried to highlight the key points by bolding them. I hope that it helps provide some greater clarity for you as numbers can sometimes be a bit fuzzy and even misleading.

2016-17 Budget The numbers presented here include several years with budgets and actuals for comparison as found in the parish ledger. The budget for 2016-17 contains realistic projections for income, versus what is needed to offset the expenses, as was done in the past. While there is a small shortfall, in the last couple of months some changes have been made which should make up the difference, most notably, changing our envelopes company which will save us about $8,500 per year. As such, I am hopeful that we will be able to finish in the black in 2015-16.

Re-examining 2014-15 One of the challenges in looking at the year-to-year numbers in this report is that a great many changes have been made to the way our financial systems operate. Looking at the numbers for 2014-15, some income was tracked under expense line items and some expenses were tracked under income line items. This artificially understates both, making the cuts which have been made harder to identify on the Abbreviated Income Statement. In the past, estimated income was also included in the ledger for some income generating programs or events with delayed actual income. This kept the Income Statement current. When the actual money came in, this estimated income was then removed. Unfortunately we discovered that in the midst of the retirement of our PAA last summer right as we were trying to wrap up the previous year, tens of thousands of dollars in non-existent estimated income was never removed, meaning that the 2014-15 Income is actually lower than reported. Similarly, since the School Subsidy was not an actual line item, it relied upon correct end of the year calculations. Unfortunately this too was a victim of the transition, which resulted in adding the difference on top of the regularly planned 2015-16 subsidy to correct for this. All told, while 2014-15 appears to end in the positive, if correctly adjusted for these it would be a different picture. We actually would have ended with a deficit had not someone left money to the Church in their will in 2014-15. But we can’t count on people dying and leaving us large sums of money in or-der to pay for our day to day costs. That isn’t responsible. And it only puts off the looming deficit – which is what happened in 2015-16.

A Closer Look at 2015-16 Turning to 2015-16, if you look at the bottom expense actual and budget lines, it doesn’t look like much was done to address what ended up being a 13.4% Sunday Offertory Income shortfall. However, the full cost for a rectory in

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accord with Archdiocesan policy (living space separate from offices and meeting space) wasn’t included in the budget, nor was the error in school subsidy foreseen, amounting to $56,019 in fixed expenses that weren’t included in the budget since these came up at the time of the transition and weren't included as the PAA retired. So from day one, the adjusted budget did not have us ending slightly to the positive, but $54,370 in the hole. My first approach was death by a million paper cuts – slimming individual line items, and asking staff to do the same. Given the number of line items in our Chart of Accounts, this adds up. We eliminated some unnecessary maintenance contracts on office equipment. We changed bank accounts and credit card companies. Some office amenities were cut. It was also helpful that we went several months without a new PAA, though this expense would return as soon as a new person was hired. Unfortunately small cuts don’t get us to where we need to be. Staffing comprised 45% of our budget; 50% when you eliminate the restricted donations that pass through the parish and the bequest and aren't actual income or expenses for the parish. And so I also eliminated three positions—two faith formation positions totaling 9 hours per week and our full time Pastoral Associate. This was a 10% reduction of weekly hours. This has been a big adjustment for the staff and the wider parish. We currently have 9.91 Full Time Equivalencies in parish staffing, not including myself. After Patrick Barredo’s departure, I know that many parishioners did not feel as well served as previously, especially our social outreach ministries. And in truth, they aren’t. It isn't possible to cut 49 hours in weekly staffing and not have an impact upon the parish. But it simply was not possible to continue on with the same level of staffing given our massive income shortfall. At the end of the year, our Sunday Offertory income fell $186,649 short of the budget. Given the starting budget was $54,370 in the red when adjusted for the errors, to end only $44,735 more in the red is very much a success, though a painful one in many respects. Some of the changes really only start to produce a difference in 2016-17, while others were not possible until this current year due to contracts with outside compa-nies – hence we were able to make further progress in reducing our expenses for 2016-17 without having to cut further staffing positions.

One non-cash item included on the bottom of the Income Statement is Depreciation. As our buildings, electrical systems, flooring, heating systems and everything else in our facility ages, we get closer to the time when we will need to spend a significant amount of money to replace or repair them. Our buildings range from 30 to 93 years old. We keep a Depreciation Schedule, which tracks how much money we either need to set aside each year or invest in these items in order to keep up. It is a non-cash item, but if we are prudent we will be setting aside money each year for this purpose, preferably in an amount close to that listed for the year on the Depreciation schedule. In actual practice, we have not been setting aside a portion of our annual budget for these future needs – such as our Bell Tower Retrofit. This isn’t uncommon – many churches and other non-profits have a hard time being oriented towards the needs of the future in the face of the present. However, this means that capital campaigns are continually necessary to fund large improvements. We will be receiving the final disbursement of a bequest this year, and this money will go towards this purpose after legal fees are paid from the total amount. [A lawsuit was filed by parish right before I arrived as we felt the personal representative was not best representing our interests as the beneficiary. The personal representative ceded authority earlier this year, and we are moving ahead with the final disposition of assets. To date the legal fees have amounted to about $20,000, and most of legal work is now complete.] However, in the future, once we have stabilized a bit more, it is my goal to start including investments into our Facility Reserve in the annual budget, as we lay the foundation for the success of our parish church through the rest of its second century and beyond.

The School The school is our parish’s biggest ministry. In 2015-16, we served 299 families with 451 children. The total income was $4,245,687 and the total expenses were $4,232,129. The School’s net of $13,558 was put into a savings account, likely to be used on the upcoming Fire Alarm upgrade. The Centennial Campaign helped fund a new roof, windows, and some technology upgrades, and the remaining $125,685 has been set aside for planned technology upgrades over the next six years. This marks the third year in a row the school has finished in the black—an expectation that I have as the parish already contributes about 14% of its ordinary income to the school (The Archdiocesan recommendation is 15%).

The Bottom Line: Where are We? Turning from the past Income Statement to the Balance Sheet, there are two types of money in our various accounts. There are unrestricted general funds, which can be used for anything. And then there are restricted

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Assets

2015-16

Unrestricted

2015-16

Restricted

2015-16

Endowment

2015-16

Total

Cash 675,340 786,567 1,461,907

Accounts Receivable and Pre-Paid 26,847 26,847

Endowment Fund Investments 268,222 942,738 1,210,960

Total Assets $702,187 $1,054,789 $942,738 $ 2,699,714

Liabilities

Accounts Payable 180,789 180,789

Accrued Salary & Benefits 310,353 310,353

Deferred Income (prepaid tuition) 328,687 328,687

Current Portion of Long Term Debt 3,349 3,349

Long Term Debt (Loan) 50,836 - - 50,836

Total Liabilities $874,014 $ - $ - $874,014

Cash Assets and Liabilities ($171,827) $1,054,789 $942,738 $1,825,700

Property, Plant & Equipment Value 5,312,304 - -

Total Net Assets and Liabilities $5,140,477 $1,054,789 $942,738 $7,138,004 Ab

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funds which must be used according to the giver’s instructions. The Endowment, for example, helps the school. The Corpus (accumulating donations to the fund) can’t be touched, but each year we make a withdrawal from the Interest, which is itself restricted for a particular purpose, to support the school. There are also a variety of other restricted funds, which were donated for a particular purpose, and must be used accordingly. For example, these include donations to the Capital Maintenance Fund, as well as individual donations for the repair and replacement of the doors as well as the Bell Tower. There are also two bequests which were left to the school for financial aid or special programming, and the remainder of the Centennial Fund from the school’s capital campaign which will be used for planned technology upgrades. These restricted funds remain on the Balance Sheet until they are spent for the designated purpose, when they are pulled into Income Statement.

When looking at the Balance Sheet, we look like we are doing really well with a little over $1.8 million cash net. However, $2 million of that is money whose use is restricted, meaning that when you add up our unrestricted cash assets and liabilities (excluding the value of property) we are $171,827 in the hole. Our loan from the purchase of the property next to the parish office is due this year – and we weren’t able to include that in the budget, meaning we will have to pay it from our unrestricted cash on the Balance Sheet, unless collections increase and we are able to end the year in the positive and help offset it. Paying it off in November, which we are doing, will save us some on interest payments this year. Now thankfully this is an accrual system, and with a large portion being accrued salary and benefits which aren’t often paid out (employees with the maximum 480 accrued hours of sick leave, for example), we are not at risk of becoming debtors but we are far from being in a financially healthy place. We are stable for the moment, and will hopefully be solvent this year, but having been around for over a hundred years, it is important for us to work toward fiscal health to enable our work to continue for centuries to come. Best practice from the financial field says to have 12 weeks of operat-ing expenses on hand. For us, that would be about $400,000 for the parish and another $1.4 million for the school.

The purpose of the above and of this report is to be transparent about our fiscal position as I strive to be a good steward of the resources entrusted to my care. 2015-16 has been a year of ups and downs, with new exciting adventures and some challenges along the way. Our budget for 16-17 is 13% smaller than the adjusted budget from last year. But I hope that you will agree that we have turned a corner and are headed in the right direction and are making good progress. We must not let the declines overshadow the fact that there is a rich abundance here—that God is present and at work. If you have any questions, please feel free to contact myself or Gary Samaniego, our Pastoral Assistant for Administration. In Christ, Fr. Matthew Oakland

Drawings by Amelia K,

HRS Student

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