IN THE RED—The Rev. Jarlath Dolan sent a letter to St. Max parishoners detailing the church’s financial situation. The construction debt at St. Maximilian Kolbe Catholic Church in Westlake Village may have been paid off, but the books show that the church must either collect more from its parishioners or cut back programs, staff and other expenses to stay in the black.

A letter mailed to congregants in October explained how the church is faring financially. Parish expenses exceeded income by more than $26,000 last year, according to the annual parish report.

The Rev. Jarlath Dolan, pastor at St. Max, wrote in the letter that the current recession “has seriously impacted all of our U.S. citizens’ finances and consequently our parish financial security.” He wrote that the parish is challenged by “inescapable increases in insurance premiums, utilities and the financial investments required to sustain all our ministries.”

The money problems have left St. Max at a “budgetary crossroads,” Dolan wrote.

In an interview at the church, Dolan said that it is common for parishioners to believe that once construction debt is paid off the church and its congregation have “reached the end of the journey.”

He compared the situation to a couple spending an enormous amount of time and effort preparing for a wedding and then forgetting about the marriage.

But salary, benefits and program operating expenses remain, and in today’s economy some of these fixed expenses are on the rise.

St. Maximilian Kolbe’s total income for the fiscal year, which ended on June 30, amounted to about $960,000, but expenses during the same time period were about $987,000. By comparison, church income in 2007-08 was nearly $1.4 million. By 2008-09, income had dropped to about $1.2 million.

The church receives most of its money from parishioners through stewardship, or pledges, and sacramental giving, Dolan said. Of the total income last year, the giving programs amounted to more than $833,000, or about 87 percent of the budget.

Dolan said that many churches and charities are feeling the effects of the recession. Catholic Charities in Thousand Oaks closed in the past year. The facility helped people in need with rent assistance, food, clothing, medical bills and more.

Although contributions generally wane during the first three months of the fiscal year because families travel in the summer, charitable giving at St. Max has been on the decline for three years.

Dolan said that St. Maximilian’s budget had been skewed somewhat because of debt incurred to build the new parish hall. The debt was paid in full by May 2009, making the church debt-free for the first time in 11 years. Parishioners contributed to the payoff in a separate giving program.

Dolan joined the parish in July, replacing the Rev. Patrick O’Dwyer, who died suddenly in 2009.

Parishioners will receive a church financial report at the end of each quarter, Dolan said.

Dolan expects his appeal to the church community will yield St. Max a more stable financial future. Generally all it takes to get a parish back on track financially is sharing information with parishioners, he said.

The long-term vision of St. Max is to sustain and expand the mission and ministries of the church. Its ministries include youth groups, liturgy, choir and bereavement. In an effort to boost the church’s financial bottom line, Dolan said that church leadership has tackled three questions: What is the church doing that they want to continue? What should St. Max be doing that is not already being done. What programs should be discontinued?

“There was a clear cry to enhance the music program to enrich worship services and liturgies,” Dolan said. Another goal is to engage parishioners in more church programs.

Dolan said St. Max parishioners are “friendly, gracious people.” He said he hopes that when parishioners realize the church is in need those who have not given to the church community will “give a little bit” and those who are already giving “will give a little more.”

“Since its establishment 18 years ago, generosity has been a hallmark of our parish, and whatever the challenge or opportunity, you have always responded with a dedicated spirit and a giving heart,” Dolan wrote in his letter to parishioners.