Having wrapped up the pledge drive for the Archdiocese of Milwaukee Love One Another (LOA) fundraising campaign, this past February 16 we received the first 60% payback corresponding to the St. John XXIII LOA pledge payments that had been made to the Archdiocese by December 31, 2022. The amount of this first installment was in excess of $176,000. Given these funds, deposited in our LOA money market account at the Port Washington State Bank, our Investment Advisory Committee met to determine how we may best utilize them to reduce our Gather & Grow mortgage debt of roughly $1.4 million. Since the interest rate on this mortgage is fixed at the relatively low rate of 3.3% for the next two and a half years, we came up with the following recommendations:
1. Between our Gather & Grow and LOA money market accounts, retain at least six months’ worth of Gather & Grow mortgage payments (i.e. with monthly mortgage interest and principal payments of $7,334, just over $44,000).
2. Invest the balance of LOA funds received in a no-risk vehicle with a
rate of return of at least 4.3% (1% higher than our mortgage rate).
These recommendations were then presented to, and unanimously approved by, our Finance Council. Given that approval, St. John XXIII
opened an account with RBC Wealth Management and invested $166,000 in a six-month U.S. Treasury Bond at a rate of 5.13% absent
any commission or fees except a $6 service charge. Doing so will yield a net profit in excess of $1,500 between mortgage interest paid and treasury bond interest received.
For the next five years, every three months we will be getting our 60% return from the Archdiocese corresponding to LOA pledge payments made the preceding quarter. Up until our mortgage balloon payment (roughly $1.3 million) comes due on September 1, 2025, we will look to invest these funds in a manner similar to our first installment. Then we anticipate using the LOA funds received and corresponding interest to substantially reduce our Gather and Grow mortgage debt.
Stay tuned for further updates intended to keep our parishioners well informed of our LOA related business. Should you have any questions or concerns, feel free to contact Bill Henkle, Director of Administrative Services at 262-284-4266 or [email protected] Above all, know that we are deeply grateful for all of the ways in which you have supported the LOA campaign!