Tuesday, August 6, 2019
2019 Second Quarter Statement
August 2, 2019
Dear St. Paul’s family,
As usual, this quarter has been marked by lots of volunteers, lots of change, and many blessings coming from the hard work of innumerable individuals!
Looking back, I deeply appreciate the contributions of our community to the consecration of our Bishop, Susan Brown Snook. It was a joyful celebration and our campus really sparkled thanks to the hard work of many volunteers up to, during, and after the ordination. I’ve heard compliments about our hospitality from all corners of the diocese.
As the second quarter ended we implemented Chapter’s plan to begin right-sizing the budget. With your support, we are transitioning to a more volunteer-led model of ministry that allows us to reduce costs. Sending your statements by email is one of those cost-saving measures; another is the liturgical shift to greater use of the Book of Common Prayer, to save on bulletin costs. I am thankful for Chapter and others who have worked hard to ensure that the cathedral’s ministries will be around for years to come – and for your continued generosity which makes it possible. Thank you to the many people who have donated new prayer books: they will be in the pews very soon.
If you haven’t been to St. Paul’s recently, you may be surprised at the dramatic changes that have happened in the past few weeks, as our long-awaited, multi-year building project gets under way. Looking at our campus now it is hard to imagine it without the equipment, noise, and dust! The Park Chateau apartments have been demolished, and our Sixth Avenue courtyard is off-limits as workers re-route utilities so that the main parts of the project can begin. It is an exciting place to be! The Cathedral and Great Hall will remain intact. In the new, twenty-story building, we will own the first two floors above ground and most of the first two parking floors underground. The new space will house our administrative offices, educational and community space, and we will share a spacious courtyard with the building’s residents. Income from the sale proceeds will undergird our financial security, so that your gifts can continue to support our mission and ministry.
But life never stops at St. Paul’s Cathedral! Amid the construction, we had a fabulous Pride week. Light up the Cathedral for Pride was our best yet, and our partnership with San Diego Pride grew stronger this year as we co-sponsored several events with them. The cathedral’s contribution to the community was recognized by the Stonewall Friend of Pride award that I received on your behalf. Record numbers of visitors were able to see your Cathedral share the good news that God loves them, and that there is a place where you can have fun and love God whoever you are. Your gifts make it possible to heal the wounds of religious abuse. One transgender participant in our Light Up service told me of being fired from a church position in another state many years ago after coming out, and that this was the first time she had entered a church since. I assured her that St. Paul’s is a safe space for everyone.
As we now turn towards the fall, I look forward to the final celebrations of our 150th birthday. Our
sesquicentennial committee continues its efforts to honor all the work of those who have made possible the ministry of this parish over the past hundred and fifty years, and that “cloud of witnesses” includes you.
Thank you for your commitment that equips us to Love Christ, Serve Others, and Welcome All.
Yours in Christ,
The Very Rev. Penny Bridges
Treasurer’s Second Quarter Report
A summary of the Cathedral’s finances for the six months ended June 30, 2019 appears below. Results for the first half of the year are excellent. I’m also happy to report that the audit of 2018 financial results completed last month by our outside independent auditors went extremely well. The Cathedral received a clean audit opinion and the auditors complimented our finance staff on their competence and preparation of all materials.
Operating income through June 30, 2019 of $981,338 exceeded plan by $71,903 largely due to unanticipated pledge and other giving totaling $66,573 comprised of: 1) a significant pledge and payment in full received after the budget was approved, 2) prepayments of pledges in advance of when expected, and 2) two grants from generous parishioners for general support of the Cathedral through the San Diego Foundation. Operating expenses through June 30, 2019 of $840,642 were right on track with budget. Cathedral staff have done a great job of managing expenses. Net operating
income through June 30, 2019 was $140,696 compared to $70,638 planned, a very healthy first half!
While this year is going very well, the challenge remains to balance the budget in coming years. As you may know, we have relied on significant support from reserves to balance the budget for many years. This is not sustainable for the long-term health of the Cathedral community. Working together, the Dean and her staff, Chapter, and the Finance Committee have agreed on a plan to rightsize the budget for 2020 and future years. Dean Penny has previously communicated the plan and actions which have already been taken. This is hard but necessary work and we are making good progress.
Thanks to all for your continued support of ministry at St Paul’s Cathedral!
St Paul’s Cathedral Operating Fund - Six Months Ended June 30, 2019
Operating Income Actual 2019 Budget 2019 Difference
Pledge & Other Giving $612,662 $546,089 $66,573
Other Income 166,418 163,346 3,072
Investment to Fund the Gap* 202,258 200,000 2,258
Total Operating Income 981,338 909,435 71,903
Less: Operating Expenses 840,642 838,797 1,845
Net Operating Income $140,696 $70,638 $70,058
* $350,000 of reserves from Nutmeg & Olive LLC has been authorized to support the 2019 budget.
Posted by Wayne at 4:02 PM