wiki:projects/leadership-committee/meetings/2016-02-06/us-budget

Version 2 (modified by Jamie McClelland, 4 years ago) (diff)

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Proposed US Budget for 2016

Overview

Our budget prospects for 2016 are very strong and can finally allow us to both strengthen our infrastructure and move us forward in our movement work.

However, first there is bad news:

On December 12, we had $12,000 in our bank account. That is equal to our typical monthly expenses. This is financially reckless and we should ensure it never happens again.

Now, the good news:

  • We later received a $10,000 anonymous donation in response to our August fundraising drive.
  • We received $8,400 in membership dues from Rosa Luxemberg (paying off old balances and overypaying by $1800 - which was applied to next year) - this represent a major financial contribution that the Mexico Coop makes to us
  • Due to annual payments coming on different months, our income is not evenly distributed between the months and December is typically a high income month.

As a result, we ended December with a suprising and much healthier $30,000 balance.

And - thanks to Alfredo's hard work, we have been given verbal approval of a $15,000 contract to organize a local meeting on the topic of police body cameras, which can fully be put towards Alfredo's salary.

When I presented my proposal to close our second colocation space and consolidate into just one - I said it was urgently needed to avoid a financial emergency. It is no longer as urgent, however, I still strongly recommend we do it for the following reasons:

  • Last August we cut the hours and salaries of Jaime and Alfredo. We must restore those hours and salaries.
  • After receiving a $10,000 foundation grant three years in a row, we became dependent on it and only survived our first year without it due to a surprise anonymous donation of the same amount. We must organize our finances so we don't depend on it in the future.
  • We cut some essential expenditures - including a face to face leadership committee meeting.
  • Due to the latest threat of DDOS attacks, we should invest in having one space with two routes to the Internet, rather than two spaces in which each space only has one route.

The Colo Consolidation

At our last meeting Jerome proposed and we all agreed that I would continue pursuing the project of consolidating from one colocation facility to two colocation facilities and at our next meeting would present concrete numbers on the differences in expenses.

Here they are:

Assuming we move out of our XO location in April.

Total Cost over 2016

Continue with XO

This represents the status quo.

  • XO costs: 3021 * 12 months = 36,252
  • Highwinds transit: 200 * 12 months = 2,400.00

Total: 38,652

NOTE: the XO contract expires in September 2016 at which point the costs could go up.

Consolidate

Maintain one colocation center with two upstream providers and our own IP block.

  • XO costs: 3021 * 4 months + 5 * 755 = $15,862
  • New Upstream: 200 * 9 = 1800
  • New Equipment: 2000
  • Annual cost of maintaing the IP block: 100
  • Lost membership dues: 200 * 9 + 50 * 9 = 2250

Total: 22,012

NOTE: The XO contract runs through September 2016. if we break the XO contract, we will have to continue paying 1/4 of our contract price through the end of the contract in September 2016.

NOTE: By closing our XO location, some members will be asked to move from a dedicated physical server to a virtual server and/or from maintaining two servers to only maintaining one server. This may result in a reduction of dues from these members.

Difference in ongoing monthly expenses

Starting in October, when the XO contract is up:

Continue with XO/Two cabinets

  • XO cost: 3021
  • Highwinds transit: 200

Total: 3,221

One cabinet

  • New upstream: 200
  • Lost Membership dues: 250
  • IP allocation (monthly): 8.33

Total: 459

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