[Lnc-business] Financial woes

[Vicki Kirkland]

Dan:
Thank you for this intelligent, well thought out explanation.
Vicki Kirkland



On Sat, Aug 9, 2014 at 11:08 AM, Daniel Wiener <wiener at alum.mit.edu> wrote:

> I only have time for a quick comment right now.  We do not "have a balloon
> payment hanging over our heads."  That balloon payment isn't due for
> another ten years, at which time the principal will have been reduced to
> $367,741 if we do nothing else but pay the monthly mortgage (which is much
> less than our previous office lease).  At that time we could deal with the
> balloon payment by either (1) Refinancing the remaining amount, or (2)
> Having another big fundraising drive which would only need to raise the
> same amount we already raised for the purchase, or (3) Sell the office,
> which would have a large amount of equity, even if real estate prices
> declined from the $850,000 purchase price instead of rising.  We made a
> large enough down payment that we do not have to worry about our loan ever
> being under water.
>
> Even that is a worst-case scenario.  I authored the change to the Policy
> Manual which requires us to budget an additional $60,000 to pay down the
> principal in every odd-numbered (i.e., non-election) year, when we can
> mount pay-off-the-mortgage fundraising drives without interfering with
> ballot access priorities.  As I showed in the attached spreadsheet, the
> result of that will be to completely eliminate the balloon payment at the
> end of the ten years.
>
> Dan Wiener
>
>
> On Sat, Aug 9, 2014 at 10:21 AM, Joshua Katz <joshua.katz at lp.org> wrote:
>
>> Since I had only one person join me in my call to authorize additional
>> debt, and that was qualified with the idea of waiting another month, I now
>> float the following three motions and seek sponsors.
>>
>> 1.  The LNC shall authorize no expenditures other than those necessary
>> for activities already authorized by vote or bylaws to be undertaken (to
>> include votes which closed before the effective date but which have not yet
>> been reported on the effective date, if any.)  No money shall be expended
>> by the party until November 1, 2014, other than that which has already been
>> authorized or encumbered, exempting expenditures from restricted funds.  No
>> additional expenses shall be undertaken, and no agreements with vendors
>> entered into requiring payment before November 1, 2014.  In addition, the
>> LNC shall direct the Secretary to write official notices of apology to all
>> vendors whose payments are delayed via negotiations by staff, or via
>> non-payment or extension of terms, on behalf of the LNC.
>>
>> 2.  Prior to the December meeting in New Orleans, staff shall be
>> requested to issue all necessary reports in written form, to be presented
>> at the meeting (as specifically required, or traditional.)  Staff presence
>> at the LNC meeting shall be restricted to the Executive Director and one
>> additional staff member, to be chosen by the Executive Director following
>> consultation with the Chair.
>>
>> 3.  The LNC directs the Executive Director to issue a report with all
>> specific staff responsibilities, estimated hours required per week, and
>> skills needed to perform staff functions.  The Executive Director then
>> shall issue a report indicating potential to replace staff functions with
>> volunteer efforts, after conducting a member survey for skills and
>> willingness to volunteer.  The LNC requests that the Chair, after
>> consulting said report, reconsider all staff arrangements and contracts.
>>
>> I favor the first, but am looking for all ways to stem costs.  We have a
>> balloon payment hanging over our heads, currently are bankrupt, and have
>> continued to vote to authorize expenditures.  I believe these operations
>> must be reconsidered.  I understand that our financial hole is a temporary
>> phenomenon, and that our bankruptcy is a matter of accounting, but we are
>> still in dire financial straits.  I do believe that we need to bring in
>> more money, but a financial crisis is also an opportunity to reconsider our
>> spending habits, which should be restrained, and mostly aimed at our core
>> mission, at all times, regardless of circumstances.
>>
>> Joshua A. Katz
>>
>> Region 8 (Region of Badassdom) Alternate
>> Libertarian National Committee
>>
>> Chair, Libertarian Party of Connecticut
>>
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>>
>>
>
>
> --
> *"In general, we look for a new law by the following process. First, we
> guess it (audience laughter), no, don’t laugh, that’s the truth. Then we
> compute the consequences of the guess, to see what, if this is right, if
> this law we guess is right, to see what it would imply and then we compare
> the computation results to nature or we say compare to experiment or
> experience, compare it directly with observations to see if it works. If it
> disagrees with experiment, it’s WRONG. In that simple statement is the key
> to science. It doesn’t make any difference how beautiful your guess is, it
> doesn’t matter how smart you are, who made the guess, or what his name is.
> If it disagrees with experiment, it’s wrong. That’s all there is to it.”*
> -- Richard Feynman
>
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>
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