[Lnc-business] Agenda Item - Amend Weiner Rule

[Tim Hagan]

Appears like we would save $9,589 in interest by continuing with the 
current policy versus changing it to $20,000.


Current policy with $60,000 payments on December of odd-numbered years: 
$20,551 in interest, and the mortgage gets paid off January 2022.

Proposed amendment with $20,000 payments on December of odd-numbered 
years: $30,130 in interest, and the mortgage gets paid off January 2024.

If the policy is rescinded and no extra payments are made: $51,898 
balloon payment due June 2024 and paid $38,250 in interest


---
Tim Hagan
Treasurer, Libertarian National Committee

On 2018-11-27 01:41, Alicia Mattson via Lnc-business wrote:
> Tim,
>    Prior to the meeting, would you calculate how much interest we would
>    save by continuing with the current $60,000 policy, as opposed to
>    changing it to $20,000?
>    -Alicia
> 
>    On Mon, Nov 26, 2018 at 9:11 PM Tim Hagan via Lnc-business
>    <[1]lnc-business at hq.lp.org> wrote:
> 
>         I request 15 minutes on the agenda to amend the Policy Manual
>      Section
>         2.03, Subsection 17, Office Mortgage.
>         The motion will be to change $60,000 to $20,000.
>         The subsection would then read:
>         17) Office Mortgage
>         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 $20,000 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.
>         We have paid down the principle enough where, if no more
>      additional
>         prepayments are made, the balloon payment due in June 2024 will
>      be
>         $51,900. It's possible to reduce the prepayment requirement to
>      making
>         payments of $17,300 in 2019, 2021, and 2023 and still not have 
> a
>         balloon payment. With our current financial situation of being
>      below
>         the target reserve and needing to have a realistic 2019 budget,
>      it may
>         be better to not have to divert the full $60,000 to the 
> mortgage
>      next
>         year.
>         --
>         Tim Hagan
>         Treasurer, Libertarian National Committee
> 
> References
> 
>    1. mailto:lnc-business at hq.lp.org