1. Current Budget

• 134 Members
• 160 Pledges
• $5/month/pledge
• Income
  • pledges: $800
  • members: $680

• Current Monthly Expenses

  • $969.85

• 'Deficit: $169.85' ($1.06/pledge, $1.26/member)

• 34 additional pledges needed to break even (60 additional members
  • without pledges)

1.1. Questions

What is our accumulated peer1 deficit?

2. Migration Expenses

• Server Hardware: $3500
• New Colocation: ~$600/month * 2
  • Actual cost pending
  • We would be carrying this in addition to peer1 for up to 60 days

2.1. Migration Cost Per Member

• 2 months at both colos
  • Pledges: $29.38
  • Members: $35.07
• 1 month at both colos
  • Pledges: $25.64
  • Members: $30.60

3. Dues Restructuring

3.1. Overview

• Dues pegged to ceiling(recurring expenses / pledges)

• The board would be authorized to add $0-$3 per share for projected
  • non-recurring costs and debts
• Dues would be adjusted quarterly based on new costs and member counts
• Plan would be enacted for November billing cycle

3.2. Short Term Increase

All numbers involving new setup are pending known colocation cost.

Assuming 160 pledges

• Adjusted to November Real Cost = ~$1561.60
  • Pending known value for new colocation
• Per pledge: $9.76 ($10)
• Surplus: ~$38.40 (too insignificant to count)
• No debt repayment / non-recurring costs adjustment

3.2.1. End Peer1 Dec 1

• December real cost:$711.60
• Surplus: ~$888.40
  • Per Pledge: $5.55
  • Per Member: $6.63
• Remaining migration debt Feb 1: $2323.20

3.3. Dues adjusted Feb 1

• Adjusted to February real costs: $711.60
  • Per pledge: $4.45 ($5)
  • Per member: $5.31 ($6)
• Additional debt-repayment surcharge: $2
• Surplus (@ $7/share)
  • With pledges: $408.40
  • Without pledges: $226.40
• Remaining migration debt May 1: $1644.00
  • Not terrible; completely paid off by the end of 2010

4. Numbers Look Better With New Members

Each new member joining before quarterly adjustment is paying 100% toward migration debt / expansion funding.

New members therefore essentially pay for the capacity expansion required to handle them.

5. Long Term Reduction

With 300 members:

• Projected real costs: $711.60
  • Per member: $2.37 (3)
• Expansion fund: $1
• Total cost: $4
• Monthly surplus: $488.40

This is feasible within a year given our new hardware.

6. Related Ideas

6.1. Join National Cooperatives Bank

A while ago we looked at leaving Wells Fargo and joining the NCB, but the discussion died with no resolution. Do we quality to have a business account with NCB? If we do we might qualify for an interest bearing checking out.

6.2. Moving Member Deposits to an Interest Bearing Account

We could open an account for storing member deposits into a savings or similar type of account and perhaps make a small amount of interest. Member deposits tend to not be touched often (if needed only the lower 2/3 of the balance could be stored in the interest bearing account), and so would be ideal for storing this way. What are the rules for HCoop as a non-profit corporation with regard to interest? Do we have to disburse gained interest to member balances, or could it instead go into a general use fund?