I believe his ‘spending’ column only covers discretionary spending from the general fund. So about 2/3 of the spending for each month isn’t shown in that spreadsheet.
BTW, this is the basic problem with ad hoc analysis as opposed to a proper set of books, balance sheets, and such.
But again, the problem isn’t a REVENUE issue, it is a spending issue. We have gotten into the habbit of spending too easily. Adding more revenue will only exacerbate that issue.
The question is if we want to start spending 5,000 / month on employees and have more than just a couple thousand each board meeting for the board to allocate, we need more money, by either growing lots of members or raising rates or cutting recurring costs (if we eliminated honorariums completely, that would pay for employees)
Are we going to spend this $5000 a month on employees as a burdened or unburdened rate? (aka benefits, ssi, insurance etc)
Further, who will be their supervisor? What will be their duties, their authority, their status at the space? Will they be there only during the day or at night when most people are at the space? Will they also be members and therefore able to work on their projects during the day? Will you open up the jobs to the public? There are a lot of considerations for hiring employees. Do other Makerspaces have employees?
I don’t know all of the motivations, the necessity or the general reasoning for hiring temployees, but having been a small business owner, I can assure you that you cannot underestimate the headaches associated with ERISA, workmen’s comp, liability insurance and other workers’ rights and protections such as OSHA.
We should look at hiring service companies to provide whatever is needed before we begin hiring employees since these companies already deal with the appropriate laws and benefits. I’m not saying that employees aren’t needed, I simply don’t know this answer, but I can assure you that hiring employees is NOT a trivial matter.
Your question has, at its base some assumptions.
One that we need to hire two employees for $5,000 per month. The last the board mentioned the subject they hadn’t even agreed on what the job responsibilities for these employees would be.
Two, that we need the board to provide monies, in addition, to the monies already allocated to committees to buy STUFF…
If one takes the employees off the table, and I think that is appropriate for right now, the board has about $10k available in the general fund. This is more then sufficient to allow them to start saving for future moves, as well as expand our emergency reserve for unexpected expenses.
Large ticket items could be funded through donations instead of from the easy (all too easy) largess of the board. That way if you can’t get enough donations you don’t purchase something that the members obviously don’t care enough about to fund themselves. The other option for funding is for committees to take their funding and SAVE up for things they want to purchase. A process that works for most people who can’t get funding from mom and dad.
Then after a period of some fiscal restraint, we (by that I mean the members) feel that a fee increase is appropriate we implement it. Personally, I think such a proposal should be put on the ballot for the next board election, along with some needed reforms to allow voting members to actually vote on key issues.
Overall, I think an increase is likely to be necessary in the long run, but not to provide spending for STUFF, but rather to build an adequate reserve and prepare for known future expenses like moves. This proposal is not likely to satisfy either of those actual needs, but rather encourage continued proliferate spending habits for new toys.
That brings up a lot of big picture questions like what should members expect dues to be going towards? Just the building in general and infrastructure and then individual members should be expected to fund each committee by themselves? Or is every single committee expecting to draw from the money coming in from dues? Traditionally I think the board has leaned more towards everything being funded from the dues coming in (with some large purchases like HAAS being half funded by donations with matching funds from board)
Personally I think DMS works better by most things being supported from dues, which is part of why I think raising the fee is appropriate, your dues are supporting way more committees now than in the past, and when how many things we do is growing faster than the member rate, there is now less money available for the different committees.
Here are all the board allocated spending from the board meetings this year, under the model of all committee purchases being funded by donations directly to the committee itself, which of the following should not have been funded by the board allocating general funds? For example, should creative arts and jewelry have been expected to raise $6,000 on their own to even be able to get started? (Hard to attract donations / members when you are acquiring the basic tools needed to get something started)
Allocate $2000 to Metal Shop for Millermatic 252 (TID#5)
Allocate $1000 to Wood Shop for the purpose of handling sawdust air filtration
Set up autopayments for Digital Ocean and CloudFlare CDN/DNS
$100 authorized for Nicole Franczvai’s use in setting up photos in lobby (running total $12.99)
Allocate $972 to Digital Media with the intent of Sony camera purchase (QB#1526)
Allocate $1000 to Wood Shop for the purpose of handling sawdust air filtration (QB#1527)
Allocate $2000 to Logistics (QB#1528)
Increase monthly allocation to Logistics to $500 a month
Allocate $385 to Science Committee with the intent that they purchase Safety Goggles (QB#1529)
Allocate $100 to Science Committee with the intent that they purchase three surge protectors (QB#1530)
Allocate $400 per month for offsite storage
Purchase 3 security cameras for approximately $540
Purchase NextEngine 3D Scanner HD, ScanStudio HD PRO, MultiDrive for an estimated $4600 from General Fund
Purchase 3x 24" drum fans to replace our workshop fan for an estimated $450 from General Fund
Allocate $1500 to Digital Media Committee for upgrade of the Digital Media Workstation (trans #1497)
Allocate approximately $600 per year (recurring) for two Adobe CC Suite licenses (trans #1505)
Allocate $350 to Logistics with the intention of purchase of a vacuum cleaner (trans #1498)
Allocate $1500 to Automotive with the intention of improvements to the 240SX vehicle (trans #1499)
Purchase a year subscription of 5 licenses of lyndaPro for an estimated $1750 from General Fund
Allocate $700 to the Infrastructure Committee with the intent of their purchase of RDS Per-User CAL licenses (trans #1500)
Allocate $1100 to Logistics Committee from General fund for the purpose of construction of two workshop tables (trans #1501)
Purchase SawStop table saw
Set up a monthly stipend to the Machine Shop Committee of $300
Allocate $2380.66 to Creative Arts for the purpose of purchasing Jewelery Making equipment (trans #1502)
Liquidate the Jewelry Making project ($119.34), transferring funds to Creative Arts (trans #1503)
Upgrade to the next level of SmartWaiver that supports 600 people a month
Approve approximately $4175 from General Funds for upgrade of electricity infrastructure
Replace HVAC RTU #4
Allocate $486.77 to Machine Shop Committee as Reimbursement (QB#1423)
Purchase clamps for approximately $1344.51
Purchase carving tools for approximately $169.99
Purchase blade for table saw for approximately $59.99
Increase monthly Wood Shop budget allocation to $700 a month
Allocate $400 to Creative Arts committee for funding of Craft Show (QB#1424)
Allocate $3000 to Creative Arts for purchase of supplies (QB#1425)
Increase monthly Creative Arts budget allocation to $200 a month
Purchase reloading equipment for up to $250
Allocate $500 to Automotive Committee for ladder (QB#1426)
Adjust the current Operations Monthly allocation to flow into Logistics
Transfer $200 from the newly renamed Logistics class to the newly formed Infrastructure class (QB#1422)
Allocate $3500 to Logistics Committee for stools and tools (QB#1427)
Increase Dumpster Service to twice a week, with recycling services
Purchase Ceiling-Mount Speakers, SIP Adaptor, Speaker Wire for up to $715 from General Funds
Allocate $300 to Financial Committee (QB#1365)
Purchase 2 Security Cameras for $378 from General Funds
Purchase and install EV Charger for up to $1500 from General Funds
Purchase Windows Licenses for $1009 from General Funds
Allocate $200 to Metal Shop for production of safety signage (QB#1366)
Allocate $600 to Foundry Committee for purchase of Model A Furnace, Crucibles (QB#1367)
Allocate $12,500 to Laser Committee for purchase of Lasersaur Laser Cutter (QB#1368)
Allocate $2500 to Automotive Committee for purchase of general shop tools (QB#1369)
Establish $250 per month allocation to the Automotive Committee
Allocate $1000 to Electronics Committee (QB#1370)
Establish $250 per month allocation to the Electronics Committee
Allocate $1200 to Operations Committee for their purchase and construction of a computer for Electronics Committee (QB#1371)
Transfer $10000 from General Fund to Savings Fund
Transfer $1500 in funds from General Fund to Automotive Committee [BPG: QB Entry #1340]
Purchase 8 tables at approximately $874.96
Initiate lease of Parts Washer at $350 per month
Spend up to $600 from General Funds for Parts Washer install costs
Spend up to $2500 from General Funds for purchase of AED Unit and Oxygen through Cintas
Spend up to $150 out of General Fund for purchase of 2x “Dremel-Style” Tool
Transfer $395 from General Fund to Wood Shop [BPG: QB Entry #1341]
Transfer $433 from General Fund to Wood Shop [BPG: QB Entry #1342]
Spend up to $200 from General Funds for membership in MetroCrest Chamber of Commerce for one year
Increasing monthly Operations Committee funding to $300 per month
Spend up to $2395 from General Funds for purchase of PolyPrinter 229
Approve up to $8500 for purchase of new air compressor and related resources
Allocate $280 for the purchase two maintained first aid kits through Cintas
Allocate $50 a month to pay Cintas for the service of maintaining the two above first aid kits [BPG: Cintas First Aid Maintenance Class created, with monthly allocation of $50]
Allocate up to $500 for collection and set up of signage and materials for immediate safety needs
Allocate $800 for the purchase of fire protection equipment
Allocate $165 for the purchase of 3x Wireless Heat Detector
Allocate $6600 for running power and circuit breaker panels for CNC router, add panels for woodworking area, additional 3 phase power
Allocate $1000 to Workshop Committee for ducting parts [BPG: QB Entry #1265]
Allocate $500 to the newly formed Metal Shop Committee [BPG: QB Entry #1266]
Allocate $400 to Operations Committee to maintain general operations spending [BPG: QB Entry #1267]
The board already supplies a number of committees with funds through allocation. No one is suggesting removal of the allocations.
Also all committees receive honorariums for classes they sponser.
The issue is should general funds be used to purchase expensive toys based solely upon whether a commitee chair can convince three of the five board members.
The fact that we have significant overspent would indicate it shouldn’t. At least until we get to the point of demonstrated fiscal restraint.
We are already past the build up stage where we needed to acquire basic equipment. We already have basic equipment for most things. We also have the ability to raise the money for anything we could reasonably want through three sources; existing allocations, honorariums, and donations. Yes that is slower then asking Mom and Dad for a handout, but that slowness is a needed thing. It ensures that the money be spent on things the members actually want (rather then what a few believe they want). It also ensures we only acquire what we can afford.
The boards primary fiscal responsibility at this stage is not additional tool acquisitions, but ensuring that he space is on a solid fiscal footing. This means building up an adequate reserver (we can debate just how much that is) AND preparing for known future expenses such as future moves.
I have always viewed the monthly committee allocations as “we need this minimum amount of money to function and create a usable area”. For expenses like replacing broken tools, restocking consumables(cleaning supplies, chemicals, air filters, disposable gloves, blades, etc), small purchases that would not be worth bothering the board with (like I bought some bike specific tools for auto for ~$70, making a board agenda item for that would be excessive) .
Saying committees shouldn’t need any allocations for non trivial purchases because they get a small monthly allocation is stretching at least what I assumed the monthly allocations were for. Maybe I should have requested a larger monthly allocation for auto…
It seems funny to me to say that committees sponsor classes, when, in reality, it’s actually the teachers sponsoring the committees. As someone who has taught a lot of classes and claimed a lot of sponsoring committees for those classes, I’m aware of how arbitrary sponsorship is for so many classes. I’m hoping that Science Committee really, truly sponsors classes in a meaningful way.
Just total up those numbers by committee and you will some starteling numbers for some committees.
I can tell you the electronics committee total is a whopping $2,200. To date we have only spent about half. Guess we are too conservative. Hard to feel you are getting a fair share when other committees get $6,000-$7,000 in one go.
However I was holding onto some of our funds in case my begging manufacturer’s did not work out. Hakko did not come through so we will have to buy our own soldering irons.
And the jewelry expense was to basically build a new area for us. Other than a bench shear and eventually some tools to work with the hydraulic press, we should not be needed a lot more. (we are going to join metal shop for the bench shear)
Walter and I had a frank and fervent discussion on this topic a few weeks ago. You may note how much Science Committee received as it was trying to come online. I’m not worried about it, now, because it looks like we are going have enough time to raise the money we need on our own. Given enough time, we can take care of ourselves.
I have nine or so soldering irons that I bought at Radio Shack during their recent sale. I bought them with the vague idea of using them at DMS, perhaps for classes on soldering that I would teach, but I don’t think that is going to work out the way I had in mind. Would you like to have a look at them? They aren’t all that fancy, so I hope they have some value.
If Electronics does not want them, run them by Creative Arts or Jewelry. If not for soldering, they can be adapted for woodburning or as a hot knife.
Or foundry for use is stained glass
One reason I think we should go ahead and raise rates instead of waiting is that going with only new members get the new rate (the only practical approach IMO) it will take several months for the change to actually be noticed on our bottom line. We have been growing at 10-30 members a month, that is only an increase of 150-450 dollars the first month with a higher monthly fee.
If we see no new members joining at higher rate we can always go back to $50.
After the damage has been done as it may be awhile before those turned away by sticker shock learn about the lower rate…
I am hopeful the workshop reorg will give us some breathing room, but we may be approaching the practical limit on the number of members we can support in the current building. We should probably stop trying to grow so quickly. I am not privy to the number of members who do not renew, so have no idea how many recruits we need each month to cover the churn. If buying no more new tools does not make the number shrink, we should consider staying in place until we have more room.
At the Member Meeting on Thursday, the subject of outsourcing the provisioning of the Galley was discussed. One concern was the potential loss of personal storage. I do not know everybody yet, but someone (Pierce?) suggested relocating all of personal storage from the Galley to along the outer walls (south and west) of the big common work room. Since we do not have enough room for every member to have personal storage, one of the more palatable options is a charging a modest amount for it.
We are not going to need a new HVAC unit, air compressor and JUMP server often, hopefully. Freeze spending, let Ben finishing migrating the books and improve reporting and save our surplus. After a few months we will have a clearer picture of how our finances are.
I have been wondering about that. There is never a mention which committee gets the money for any particular class. Suppose I teach a class about turning rocket nose cones on the lathe. You would think the Woodshop committee which provided the venue and the tool or the committee which offers rocketry content, Science or R/C Hobbies. But I could just as well have designated VECTOR, Amateur Radio or Foundry. I am not picking on you guys, I just needed something totally unrelated to make my point.
As the instructor you get ultimate choice as to which committee receives the honorarium from your class–as it should be.
Of course I’m not on the board so this doesn’t mean much, but in my opinion one of the points of DMS is to grow and be interesting and acquire more shiny new toys. More money = more toys, hence this thread and why I’m pushing the more more more attitude.
So I suppose it really comes down to what kind of growth the board members want to see in the near to mid term, saving for future vs more tools vs member count vs maximizing revenue vs future growth.
Also wanted to thank everyone for the great dialog in this thread, having more member input on where we want to see DMS headed is always good.
I’m almost certain that the Foundry would use them for stained glass. The ones we have are relatively inexpensive irons and we only have a few of them. @johnk?
You need bigger irons than the tiny rado shack ones for stained glass for most of the stuff people are going to do at the space