Project: Tax-Exempt Financing
Client: All Saints Catholic Church - Lakeville, MN
CFC Competence and Caring
BACKGROUND: In the course of a series of building projects to construct a new church, school and office facilities, the parish accumulated $8.5 million in debt (1997-2003), with annual debt service of nearly $900 thousand. After ten years (2007), the remaining parish debt of $6.5 million was financed with two bank loans carrying conventional terms and rates. The parish also had financial obligations to the Archdiocese. The parish engaged Catholic Finance Corporation (CFC). After working the the Pastor, Father Lee Piche, Mimi Baker, the Parish Business Administrator, the parish Finance Council and dedicated parishioners, CFC assessed the situation, analyzed the data and submitted a recommendation to the parish.
CFC helped the parish determine the suitability of tax exempt financing, and undergo an RFP process which led to refinancing without Archdiocesan guarantees at a historically low rate structure (3.47% tax-exempt and 5.07% taxable) enabling the parish to fully refinance their remaining debt and to satisfy their Archdiocesan obligation in full. As a result of following the CFC recommendation, the parish is projected to save over $1,050,000 in interest expense over the life of the new loan by utilizing tax-exempt financing.
PASTOR'S REFLECTION: I rely heavily on our Business Administrator and Finance Council to guide the financial affairs of our parish. After researching other companies, our Finance Council identified CFC to help us shape our financial future. Not only was their professional fee a fraction of any other firm, we found the CFC team to be experienced, highly-competent, Catholic, very well connected in the lay financial community and genuinely committed to our long-term financial well-being. We thank God for their guidance. We were especially impressed by the conservative care that they demonstrated as they explained options to us, and systematically prepared documentation for the loan process. We have experienced that theirs was an action of Faith, designing the very best outcome for the parish. Our capital improvements and the huge savings resulting from the CFC direction have enabled us to handle our financial responsiblities while increasing our support of important ministries. This has been a positive experience and a community-building process for our whole parish. We have a new sense of comfort and accomplishment. We did this!
"I recommend CFC to any parish interested in improving their financial condition or facing any financial challenge."
- Father Lee Piche, Pastor