"We know they exist, we acknowledge them, but we believe homosexuality is wrong...
How can I teach my dc that homosexuality is wrong, when our priest is openly gay and so are half their teachers...?"
Had to leave earlier as a friend arrived,but I wanted to respond to this.
I was(many years ago)a believing child in a christian family going to an overtly christian school.I thought sex outside marriage was wrong and that homosexuality was wrong. (My church and family didn't bang on about this but I knew what the church believed)There were girls who were openly gay(actually they were flaunting it,I probably wouldn't have noticed otherwise!)and my reaction was the "oh for goodness sake,do we need to know this" reaction which was exactly how I felt about straight girls bragging about their sex lives.I thought it was wrong,but lots of things were happening all the time in the world that weren't how the church taught that things should be.That was part of what church teaching was - out there you will see things happening that you don't agree with - hang on to what you believe.
I do see that having an officially openly gay priest would be difficult,(with regard to what you'd say to your children)as this would be the Church changing its teaching,but for everyone else,your children will come across all sorts of situations where what you say to them doesn't agree with what other people think,and they'll have to cope at some point with that.
You can teach your children what you believe but,IMO, you don't have the right to stop other people living their lives.