Agenda Item: Increase Savings

#1

Increase Saving Rate from $4000 to $10000 per month (David Kessinger)
Problem: DMS has outgrown the current location and as unable to locate a suitable property prior to the current lease being renewed. Recognizing that we need more space the current lease was only renewed for two years.

In Nov. 2016 our current projected monthly income was ~$52,900/mo ($634,800/yr), as of 10-11-217 projected monthy income is $63,800/mo ($765,600/yr) an approximate increase of $10,600. Our current mandatory savings is $4,000. In 23 moths (counting Oct) we will put $92,00 additional dollars into savings. This will not sufficiently build savings for a move.

’Solution: Increase monthly saving by $6,000/mo from $4,000/mo to $10,000/mo. This will generate $230,000 in the next 23 months, when added to other funds that will be available DMS would be projected to have between $400,000 ~ $500,000 available for any projected move. DMS has increased income by $10,600 since 11/16 but has not increased its saving rate. Even adding in increased rent of ~1,200/mo, that is only $7,200 or $10,600 increase. Electricity charges have gone down ~$500/mo since we changed utility providers so basic rent and electricity is up about $700/mo.

Relevance: We will be moving at some point, we should be prepared. This is equal to about 150 average member dues and we are still growing at about 300/yr, while not guaranteed the trend is supports this. If circumstances require this amount can be reduced. All money will be retained and used exclusively for DMS purposes, continuation and growth.

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