Clarification of Other Diocesan Assessment

Assessment Rate Increased from 8.5% to 9.5%

DIOCESE OF SCRANTON

Wyoming Avenue, Scranton, PA 18503

PHONE:    570-207-2237

FAX:         570-207-1459

FINANCE OFFICE                                                                        January 4, 2008

Ms. Noreen W. Foti

770 Lantern Hill Road

Shavertown, Pennsylvania18708

Dear Ms. Foti:

Please note that I am in receipt of your letter dated December 28, 2007. In this letter you assert that the Diocese is overcharging Sacred Heart of Jesus Church for parish assessments for fiscal year 2007-2008. First, I think it is important that you know that the percentage rate of the parish assessment was increased from 8.5% to 9.5% for the 2006-2007 fiscal year. The 9.5% rate is the current rate.

These 2007-2008 assessments are based on the June 30, 2006 financial report. The report stated total revenues of $516,716 and the parish received credits for school subsidies of $270,580, credits for insurance money received for a claim of $9,500, and credit for funds used for parish religious education costs of $7,349 for total credits of $287,429. After subtracting the credits from the total parish income the parish's adjusted income was $229,287. The adjusted income multiplied by the 9.5% computes a parish assessment of $21,782. This is the parish assessment for the 2007-2008 fiscal year.

In addition to the parish assessment, the parish is billed monthly for clergy pension, clergy health care, clergy post-retirement health care, parish insurance, and clergy care and wellness. All of these billings plus the assessment total $75,065 annually or $6,255 monthly. We do not categorize these billings as assessments but rather the cost of operations. If the Diocese did not provide clergy health care, clergy pension, insurance for property, liability and workers' compensation the parish would have to procure these services on their own and thus pay each vender separately.

Ms. Noreen W. Foti                                          Page 2                                                January 4, 2008

Sacred Heart of Jesus parish is not being overcharged it is assessed and billed the same as the other parishes throughout the eleven counties of our Diocese.

I trust this letter answers your concerns as to what you perceive to be an inequity towards Sacred Heart of Jesus parish.

Sincerely,

l^/    James M. Quinn

Secretary for Financial Services Diocese of Scranton

cc:       Most Reverend Joseph F. Martino, D.D., Hist. E.D.

           Most Reverend John M. Dougherty, D.D., V.G.

           Monsignor Vincent J. Grimalia, V.G.

           Reverend Michael F. Quinnan, V.E.

           Reverend Philip A. Altavilla, V.E.

           James B. Barley, Chancellor

           Monsignor Joseph C. Bambera, Canonical Consultant for Pastoral Planning            Reverend James Alco

           Sacred Heart of Jesus - Saint John Parish Finance Committee