Since my last report to you in November of 2005, our attention has been focused on two major projects in the Parish, and a handful of smaller ones.  The largest project involved the conversion of a former school classroom, most recently used as office and conference space, back into a classroom for the new preschool program to be offered through St. Francis School beginning this fall.  This conversion required the relocation of two staff members and a conference room, which in turn required renovation of previous storage areas into new offices and a new meeting room.

The other significant project involved the replacement in January of a steam boiler servicing the K/3 building of our School.  The old boiler gave out during a cold spell that month, and a new one had to be installed on very short notice.  This was accomplished in three days through some extraordinary effort by our HVAC contractor, with little, if any, disruption to ongoing School or Religious Ed programs.

Among the smaller programs undertaken in the past six months was the upgrading of office computers and printers, as we moved from a Windows 98 platform to Windows XP.  This upgrade has been very helpful to Fr. Jim, Fr. Kusi, and all the Parish Office staff, especially the Business Office staff.

Other projects completed included the expansion and renovation of the east end storage area of the Gym, including enhancements to the exterior facing St. Francis Drive (what used to be the main entrance to the Parish's "second" Church, now the Gym), and the acquisition of additional dark brown folding chairs and Mity-Lite tables for the PAC.  It is likely that, over time, we will have to replace worn out tables and chairs, but the bulk of these expenses are now behind us.
During this fiscal year, we began setting aside funds to be used for some large-ticket items, including the replacement of our back-up hot water boiler (servicing the Church and the 4/8 School building) and the eventual replacement of our largest non-Church roofs (the PAC, the Middle School, and the Gym, likely in that order).  In the near future we will also have to deal with remedial work on our parking lots and the Bell Tower.  School Development efforts will assist in funding new flooring for the School Library (to occur this summer), and the eventual replacement of remaining non-insulated windows and doors in the Fishbowl, Music Room, 6^th grade, K/1, and 2/3 entry areas of the School.  It is also hoped that grant funding will be obtained which would enable us to proceed with restroom upgrades in the School.

We were certainly fortunate that what started off in late 2005 as a very severe winter, turned into a much more mild one in early 2006.  This enabled us to stay within budget on snow removal and salting expenses, which was a great improvement from the prior year.  Utility costs are another story.  In an effort to keep our electric and gas expenses within reason, we participate in alternative supplier programs sponsored by the Michigan Association of Non-Public Schools, which we estimate saves us close to 10% on our bills.  This year our budget for electric service is $52,000, and appears that we will be pretty much on target for the year.  Gas service, however, is running quite a bit higher than budget.  When we set our budget for this fiscal year in February 2005, we anticipated a 25% increase in gas expenses, and budgeted $40,000 for the year.  Through the first nine months of the fiscal year (we have not yet been billed for April service), we have already spent almost $52,000.  It is likely that we could exceed $60,000 for the fiscal year.  This is despite our best efforts, through replacement doors and windows, and added insulation, to keep heat loss to a minimum.  We continue to be alert to ways we can reduce our energy costs, but it looks as though we will have to continue to increase our budgeted amounts as, just like everyone else, there are aspects of pricing which are beyond our control.

We appreciate your continuing support of the Parish, and, as always, please feel free to call or e-mail me should you have any questions or comments.

Dave Barera, Parish Business Manager
or call 734.821.2111