It has been some time since we have provided the community with an update on the financial situation of the parish. I would like to use this letter to provide you with current information on the recently completed 2023-2024 fiscal budget year. Also, I would like to provide an important update in relation to the ongoing situation with Our Lady of Mount Carmel Church in Asti.
Since Covid began our Parish has been in deficit spending which means that we have been spending more than what we are receiving (not enough revenue). This recently ended budget year resulted in the fourth consecutive time we have had expenses exceed our revenue. We have had to continually borrow from our reserves of $250,000 and as a consequence, our reserves have been reduced by 70% to keep the Parish operational. Our budget deficit continues to be $35,000 to $40,000 per year which is not ideal for the financial stability of the parish.
During this time of deficit spending your Parish Finance Committee has reduced paid staff from 5 people to 1.5 in order to sustain the parish and as a result, Daisy and I are currently the only staff on payroll. We have had to eliminate the following in efforts to reduce costs for the parish: our music coordinator, CCD coordinator, gardening service, and janitor/housekeeper. Thankfully, we have been able to continue full church operations because of a blessed and wonderful group of volunteers. Unfortunately, as time progresses, our number of volunteers continue to decrease because of time constraints, health and aging issues.
Nevertheless, our costs to operate continue to rapidly increase. The property insurance for both churches has increased from $30,000 to $39,000 this year. All utilities, maintenance for an old Church, rectory expenses and overall operating expenses are very expensive. This trend is forecasted to continue with no end in sight.
At the same time, Church revenue has decreased significantly. Mass collections, fundraising income and donor support are at an all-time low. We are spending more than we are receiving. We have reduced all costs possible and that still does not balance our budget. Furthermore, the diminished Mass collections continue to be the basis of our income. Due to the continuously declining financial situation, I allow myself to ask that you please do what you can to help the parish and if it is in your possibilities, to consider increasing your donations.
In addition to these financial concerns, we have the ongoing, complex situation with Our Lady of Mt Carmel in Asti. As all of you know, due to severe rotting of the structural beams and the roof of Our Lady of Mount Carmel, we made the difficult but necessary decision to close it 14 months ago due to major safety concerns. With the complexity and constraint of St Peter's financial situation, a decision must be made regarding this Church. Speaking with the Finance Committee and after exploring different alternatives, we must make the difficult decision to sell Our Lady of Mt Carmel.
With a very heavy heart, I inform you that Our Lady of Mount Carmel is now being prepared for sale. We can be assured that any excess proceeds from the sale will be used to improve the aging infrastructure of St Peter's. In addition, the Finance Committee has a number of projects that need urgent attention and the proceeds from this sale would provide a financial relief for the burden St Peter's has been accumulating for the past years. Your valued feedback and input throughout this process is needed and will be respected and greatly appreciated.
This is a very difficult time for our Parish and our Parish History as we manage these adverse situations. However, I am putting my full trust in the Lord who I believe will sustain us and help us while we deal with these difficult times. I appreciate your understanding and ask for your prayers as we attempt to move forward and be assured that I keep you all in my prayers also.