[Lnc-business] Added Mortgage Payment
Ken Moellman
ken.moellman at lpky.org
Sun Nov 27 23:13:32 EST 2016
My contention is that there may be other priorities upon which a portion
of the proposed $207,500 spending on the office mortgage should be
spent. I included the examples of Ballot Access and IT Infrastructure.
Your contention is that the priority must be given to the paying off of
the mortgage, because the Policy Manual says so.
The Policy Manual states in Section 2.03.17:
"It shall be the goal of the LNC to completely pay off the office
mortgage _AS QUICKLY AS POSSIBLE_, and in any case prior to the due date
of the 10-year balloon payment. Towards that end the LNC shall budget a
minimum of $60,000 in each odd-numbered year to pay down the principal
until the mortgage balance is zero. Fundraising for this specific
purpose shall be made a high priority. This provision does not preclude
additional fundraising and prepayments in even-numbered years. "
(emphasis added)
The portion of the policy manual highlighted above seems to be that to
which you reference when you made your statement.
Additionally, you state that you are unwilling to give higher priority
to the IT Infrastructure, stating that the infrastructure was a decade
old when the building was purchased.
First, the infrastructure was less out-of-date than it is now. It
continues to get further and further out of date. We continue to use
hacks and other non-standard practices to accomplish goals with the
existing infrastructure, rather than upgrade. There is a real cost to
this. LPedia's decay is an easy example of what happens when things
don't get upgraded - upgrading MediaWiki to a newer version is
incredibly painful at this point.
Second, IT infrastructure upgrades would actually make staff and
affiliate parties more productive. Imagine if LP National could, as part
of a broader upgrade, provide basic services to affiliate parties such
as email services. Instead of 52 organizations all trying to figure out
how to manage email, we could upgrade National's email infrastructure
and provide email services to all 51 affiliates.
Third, there are real security issues that do need to be addressed.
There are security patches released almost every single day. We're
approximately 3000 days behind on security patches on a few pieces of
our infrastructure.
Now, if we are to forgo some projects with clear benefits, like IT
Infrastructure improvements, because the Policy Manual tells us we must
pay down the mortgage before all other things, then what is ludicrous
with suggesting using the staff budget for further paying down the
mortgage?
Certainly, I think it's a bad idea. But I also think foregoing other
important tasks in favor of paying down the mortgage is also a bad idea.
That's just my $0.02 on the matter.
---
Ken C. Moellman, Jr.
LNC Region 3 Alternate Representative
LPKY Judicial Committee
On 2016-11-27 22:35, Caryn Ann Harlos wrote:
> No frankly that is a ludicrous interpretation. And paying any more interest that we have to in member money (OPM) is even moreso. This is why members view this body with distrust.
>
> --
>
> IN LIBERTY,
> CARYN ANN HARLOS
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann. Harlos at LP.org
> Communications Director, Libertarian Party of Colorado [1]
> Colorado State Coordinator, Libertarian Party Radical Caucus [2]
>
> On Sun, Nov 27, 2016 at 8:22 PM, Ken Moellman <ken.moellman at lpky.org> wrote:
>
> I'm just pointing out that there are other items that also need attention. As an alternate, I probably won't get a vote anyway.
>
> If we are to take the strictest interpretation of 2.03.17, we should lay off all of the staff and put their salaries toward the building debt as well. However, I would suggest that doing so would be a foolish approach.
>
> Putting off IT infrastructure upgrades is only going to make the inevitable more painful in the long-term.
>
> ---
> Ken C. Moellman, Jr.
> LNC Region 3 Alternate Representative
> LPKY Judicial Committee
>
> On 2016-11-27 22:06, Caryn Ann Harlos wrote:
> Further the bequest rules make it a no-brainer in my view.
> --
>
> IN LIBERTY,
> CARYN ANN HARLOS
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann. Harlos at LP.org
> Communications Director, Libertarian Party of Colorado [1]
> Colorado State Coordinator, Libertarian Party Radical Caucus [2]
>
> On Sun, Nov 27, 2016 at 8:04 PM, Caryn Ann Harlos <carynannharlos at gmail.com> wrote:
>
> Hi Ken, while I appreciate that, our Policy Manual puts the building pay-off as a priority. We can always find an excuse to put that off. I will not. If we are going to expect our government to follow commitments and shed debt, we must. The IT infrastructure that exists - existed at the same time we got the mortgage. We sold the idea of the mortgage to members on a certain committement and vision, and I fully intend to keep it.
>
> --
>
> IN LIBERTY,
> CARYN ANN HARLOS
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann. Harlos at LP.org
> Communications Director, Libertarian Party of Colorado [1]
> Colorado State Coordinator, Libertarian Party Radical Caucus [2]
>
> On Sun, Nov 27, 2016 at 7:45 PM, Ken Moellman <ken.moellman at lpky.org> wrote:
>
> All -
>
> While paying off the building faster is a great goal, we may have other priorities.
>
> Specifically, we have 12 states without ballot access at this time, and we have an IT infrastructure that's from the last century - literally. These things will take money to remedy.
>
> Just something to keep in mind.
>
> ---
> Ken C. Moellman, Jr.
> LNC Region 3 Alternate Representative
> LPKY Judicial Committee
>
> On 2016-11-27 19:42, David Demarest wrote:
>
> Tim,
>
> Your plan sets a good example of fiscal responsibility for all Libertarians. I also support your higher amount.
>
> Thoughts?
>
> _THE WAR ON COMPULSORY AUTHORITARIAN MAJORITY RULE CRONYISM BEGINS NOW_
>
> _ _
>
> ~David Pratt Demarest
>
> FROM: Lnc-business [mailto:lnc-business-bounces at hq.lp.org] ON BEHALF OF Caryn Ann Harlos
> SENT: Sunday, November 27, 2016 4:33 PM
> TO: Tim Hagan <timhagan-tyr at yahoo.com>; Libertarian National Committee list <lnc-business at hq.lp.org>
> SUBJECT: Re: [Lnc-business] Added Mortgage Payment
>
> Tim,
>
> That sounds like the smart plan. Future Libertarians will thank us. I support your higher amount.
>
> --
>
> IN LIBERTY,
>
> CARYN ANN HARLOS
>
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann. Harlos at LP.org
>
> Communications Director, Libertarian Party of Colorado [1]
>
> Colorado State Coordinator, Libertarian Party Radical Caucus [2]
>
> On Sun, Nov 27, 2016 at 2:50 PM, Tim Hagan <timhagan-tyr at yahoo.com> wrote:
>
> I will call your $150,000 and raise it to $207,500. I request we add 20 minutes to the December meeting agenda for a motion to make a payment on the principal on our office mortgage.
>
> The mortgage's loan rate is 4.85% with a balloon payment at ten years, which is in July 24, 2024. Robert was kind enough to furnish the attached load amortization spreadsheet. I ran five scenarios on it to get the amount of interest we will pay from December 2016 to when the balloon payment is due, and to get the amount of the balloon payment that will be due at that time.
>
> Without any more prepayments (not paying an extra $60,000 on odd-numbered years):
> Interest: $139,400.40
> Balloon payment due 7/24/2024: $301,040.34
>
> With the current policy of paying an extra $60,000 on odd-numbered years:
> Interest: $84,900.77
> Balloon payment due 7/24/2024: $6,540.71
>
> Paying an additional $207,500 in the December payment, and not paying extra in future years:
> Interest: $45,751.59
> Balloon payment due 7/24/2024: $0.00
>
> Paying an additional $150,00 in the December payment, and paying an extra $60,000 on odd-numbered years:
> Interest: $32,805.22
> Mortgage gets paid off July 2021.
>
> Paying an additional $207,500 in the December payment, and paying an extra $60,000 on odd-numbered years:
> Interest: $19,879.20
> Mortgage gets paid off May 2020.
>
> As you can see, paying $207,500 in December will eliminate having a balloon payment in 2024 and will save at least $39k in interest. If we keep the Weiner rule, it will save $65k in interest and have the mortgage paid off four years early. The targeted Reserve is the sum of all monthly occupancy, labor and governance expenses, which comes to $45,292. At the end of October, the reserve was at $415,669, so I am comfortable with paying $207,500, even if next year's budget has a large deficit. We will have new reserve number before the meeting.
>
> The trust from a bequest has $167,404. We have been taking the maximum allowable amount out each year for the general fund. A law passed December 2014 now allows national political committees to have a separate segregated building fund with its own contribution limit of three times the limit for the general fund. We have not done this before, because we needed the bequest for the general fund, but we can transfer up to $100,200 from the bequest to the building fund and use those funds toward making a payment on the mortgage principal.
>
> My preference is to pay at least $207,500 toward the mortgage principal to save on interest payments and to ensure no balloon payment. If that passes, then I would favor reducing the policy to budget an extra $60k on odd years.
>
> Tim Hagan
>
> -------------------------
>
> FROM: Sam Goldstein <goldsteinatlarge at gmail.com>
> TO: lnc-business at hq.lp.org
> SENT: Sunday, November 27, 2016 8:11 AM
> SUBJECT: [Lnc-business] Added Mortgage Payment
>
> I intend to make a motion at our next meeting to spend a good portion of our 2016 surplus to make a payment on the principal on our office mortgage.
>
> Not knowing our final numbers at this time lends some uncertainty to that number, but I would like to start the bidding at $150,000. That amount ought to leave us in a very favorable position as to our ongoing reserve for unforeseen expenses over the next few years.
>
> Does anyone want to offer a lower/higher amount? If so, what is your reasoning.
>
> Thanks and
>
> Live Free,
>
> Sam Goldstein
>
> Libertarian National Committee
>
> Member at Large
>
> 8925 N Meridian St, Ste 101
>
> Indianapolis IN 46260
>
> 317-850-0726 [3] Phone
>
> 317-582-1773 [4] Fax
>
> _______________________________________________
> Lnc-business mailing list
> Lnc-business at hq.lp.org
> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org [5]
>
> _______________________________________________
> Lnc-business mailing list
> Lnc-business at hq.lp.org
> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org [5]
>
> --
>
> IN LIBERTY,
>
> CARYN ANN HARLOS
>
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann. Harlos at LP.org
>
> Communications Director, Libertarian Party of Colorado [6]
>
> Colorado State Coordinator, Libertarian Party Radical Caucus [7]
>
> _______________________________________________
> Lnc-business mailing list
> Lnc-business at hq.lp.org
> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org [5]
_______________________________________________
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Lnc-business at hq.lp.org
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--
IN LIBERTY,
CARYN ANN HARLOS
Region 1 Representative, Libertarian National Committee (Alaska,
Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) -
Caryn.Ann. Harlos at LP.org
Communications Director, Libertarian Party of Colorado [6]
Colorado State Coordinator, Libertarian Party Radical Caucus [7]
--
IN LIBERTY,
CARYN ANN HARLOS
Region 1 Representative, Libertarian National Committee (Alaska,
Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) -
Caryn.Ann. Harlos at LP.org
Communications Director, Libertarian Party of Colorado [6]
Colorado State Coordinator, Libertarian Party Radical Caucus [7]
--
IN LIBERTY,
CARYN ANN HARLOS
Region 1 Representative, Libertarian National Committee (Alaska,
Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) -
Caryn.Ann. Harlos at LP.org
Communications Director, Libertarian Party of Colorado [6]
Colorado State Coordinator, Libertarian Party Radical Caucus [7]
Links:
------
[1] http://www.lpcolorado.org/
[2] http://www.lpradicalcaucus.org/
[3] tel:317-850-0726
[4] tel:317-582-1773
[5] http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
[6] http://www.lpcolorado.org
[7] http://www.lpradicalcaucus.org
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