To all Pastors and Administrators,
Over the past few months I have received various requests from parishes for funding from the Reconfiguration Fund. In reviewing these requests, we needed to take a look at the current money available in the fund, commitments that were made previously and what lies ahead. Though many of you may have an idea based on the quarterly financial statements that have been published in the Pilot, I want to take this opportunity to provide a brief summary of what has happened within the Reconfiguration Fund since its inception and where we go from here.
Brief summary of what has happened:
During the Reconfiguration process, 75 parishes have closed or merged. From this 75, 14 are in some form of canonical appeal, litigation and/or vigil, 13 new parishes were established (7 by merger and 6 by creating new parishes), 3 parish properties were transferred to existing parishes and some churches have been designated as additional chapels/worship sites. The Reconfiguration Fund has realized nearly $62.7 million in net proceeds from the sale of approximately 29 parish properties since its inception through June 30, 2007.
The majority of the assets realized by the Reconfiguration Fund over this period have been for the benefit of our parishes. Approximately $47.3 million or 66.2% of the Reconfiguration Fund assets have been used for $5.4 million in direct operating aid to parishes; $2.1 million in direct construction aid to parishes; $0.3 million in unpaid bills of closed parishes; $9.9 million of property was contributed to parishes; $12.7 million paid for past pension service for parish employees; and $16.9 million to restore equity, mostly to the Revolving Loan and Health Benefit Trust Funds for parish debts forgiven by the Jubilee Year debt forgiveness program.
During the closure process, three parish cemetery operations were transferred to The Catholic Cemetery Association of the Archdiocese of Boston along with $2.1 million in primarily perpetual care funds for the continued operation and maintenance of these cemeteries. Approximately $2.3 million was spent in direct closing costs. For the parishes that closed, approximately $7.7 million in property management expenses such as utilities and maintenance were incurred in order to maintain the property until it was sold. Additionally, within the Archdiocese, there are several agencies and departments that provide for program assistance and support to parishes. Approximately $12 million was used to support the mission of these areas.
Where we go from here:
At the end of the fiscal year, there were twenty-two unsold properties within the Reconfiguration Fund. Fourteen of these parish properties are in some form of canonical appeal, litigation and/or vigil. The net sale proceeds from the sale of these properties is estimated to be $31.3 million. Until these have been resolved, the future availability of funds to provide to parishes is uncertain. These properties will need to be maintained through the canonical appeal, litigation and/or vigil process. The cost to maintain these properties averages $221,000 per quarter or $880,000 a year.
The Reconfiguration Fund had $13.9 million in cash at the end of the fiscal year at 6/30, of this amount, $6.7 million relates to those parishes in some form of canonical appeal, litigation and/or vigil. Four million dollars of this $13.9 has been committed to parishes directly impacted by reconfiguration and $2.5 million has been committed to Trinity Catholic Academy. The balance will need to be kept in reserve to provide for future maintenance needs of the remaining properties.
As we look ahead, we are faced with significant financial challenges, including the under funding in Clergy Funds. The proceeds from reconfiguration will need to be viewed as part of the overall solution to these challenges in the months and years ahead.
We welcome your feedback regarding this process as we move forward.
Sincerely,
James P. McDonough
Chancellor
