Al Andalus Finances.

[Patroklus Murakami]

Pat do you really believe your being "objective?" You seem to hate the idea that AA might just be more of a well run group of sims than CDS.

Soro

Let's focus on the issues, rather than the personalities. There are issues raised here about the long-term viability of AAs business model. Those are perfectly legitimate questions for us to consider, especially as we move beyond the point at which the merger can be dissolved. The CDS RA needs to have a good understanding of the facts because AAs financial viability is one of the factors the RA should consider in deciding whether to continue with the merger or not. Let me be clear - I see no reason to dissolve the merger. I think the facts considered here mean we should review tier rates across the CDS, but I don't think this means the merger should be cancelled.

There is also a more immediate issue about how we pay for discretionary expenditure such as events. We are dipping into our reserves to pay for them and the budget has massively increased. Now, I support events! I was one of the people promoting an event budgetwhen we didn't have one. But we need to be able to pay for it and I'm not sure we can. I think we should freeze spending on events until it's clear we can afford them.

This is not about 'hating' an idea about AA, it's about calmly considering the facts and providing constructive criticism where appropriate. This rush to defend the motherland every time someone exercises a critical thought about AA does not help anyone. I'm not Prokofy, raving about a 'Caliphate' that does not exist; I'm a supporter of what AA has become and a supporter of the merger. I don't think that AA is perfect though and speaking the truth as I see it as a 'critical friend' should be normal, acceptable behaviour. We are all adults, we can take it, can't we?

[Tor Karlsvalt]

Rose has provided statements showing that AA is in the black. To that point, I don't see any argument in this thread. Pat, even states that he believes that AA is probably in the black, albeit not by very much. It seems Pat is more concerned about AA's contribution toward a rainy-day fund. So, even if we consider AA as only squeaking by, where is the CDS shortfall reported at the last RA meeting? If it isn't AA, where else is it in CDS? I believe Sonja is supposed to report to the RA on this matter. Probably, everyone should wait for Sonja's report before continuing a discussion on how AA can improve its finances.

Being new I am at some disadvantage in sorting out where problems may arise with CDS finances. However, I note that there is some chatter about problems with tier delinquencies back in 2008. During the last RA meeting and in a Town Hall I attended there are still delinquencies in CDS. Additionally, I believe there was a problem with moving some land at the end of last year, and thus the RA established the policy of selling land for zero linden. Generally that policy did add a number of new residents and increased the parcels paying tier. I remember a long list of new people being reported to the RA last January. So i wonder:

• Are chronic delinquencies in CDS a significant drain on the reserve?

• Is the decline in reservers stemming from vacant land during in an earlier part of the year?

• Is the decline in the reserve increasing or decreasing?

I really cannot see events as a huge drain. We don't seem to have many. I doubt the inaugural ball was very expensive. Oktoberfest probably was, but that was back in September/October. I guess the Winter's concert is the only weekly event in CDS that costs money. I suppose it is possible that we went in the red for Oktoberfest. Dipping into the reserve for an annual event seems reasonable.

The problem may be in tier collections and enforcement of the current law. It seems that is has been a problem in 2008 and apparently this is still a problem.

[Kaseido_Quandry]

The CDS achievement of a self governing, citizen owned sim is a wonderful thing. However, most people don't LIVE to to to RA meetings. Those are obviously interesting. But government does not exist for government's sake.

Tor, you are made of pure win. You've summed up, gently and politely, my issues with the RA, who seem vastly more interested in fat-cat roleplay than in supporting and sustaining a high quality of life for the people who pay a premium for the experience of community.

That premium is neither the lordly due of the political class nor an endorsement of "politics as sole community sport," but a *trust,* and a trust being abused when multimillion-Linden reserves are being maintained (in a bank alt, and not in an interest-bearing account!), and cuts to meager services are being proposed while salaries, however nominal, are voted to cronies.

Tor *gets* it. Who else here does?

[Keila Forager]

I get it

[Patroklus Murakami]

That premium is neither the lordly due of the political class nor an endorsement of "politics as sole community sport," but a *trust,* and a trust being abused when multimillion-Linden reserves are being maintained (in a bank alt, and not in an interest-bearing account!), and cuts to meager services are being proposed while salaries, however nominal, are voted to cronies.

Tor *gets* it. Who else here does?

Kas

No, you don't *get it*.

We can have a rational debate about the appropriate level of reserves, spending on events (a massive 38k a month) and salaries for public officials (who are far from 'cronies', who do a useful job for the CDS and who rarely cost the 7k max a month that has been democratically approved for those posts). But you have chosen to debase the political debate by making mean-spirited personal attacks on the people who volunteer their time to help run the CDS government institutions. That's a very old 'tradition' in the CDS and a great way to put people off from ever participating in this way. It's a kind of politics that we have been trying to improve on. Your post take us right back to the old days.

If you have anything positive to offer, make some recommendations for legislation the RA should pass in order to address your concerns. That's what the RA is there for.

[Sudane Erato]

The sturm and drang on this thread regarding the AA finances approaches its sadly customary loudness and nastiness, and, is often the case, more immersed in emotion than fact. In this case, the matter at hand APPEARS to be finances (although I'm not quite sure).

Does anyone know how to spell "s_u_d_a_n_e" "e_r_a_t_o" ?... or even in a pinch "s_o_n_j_a" "s_t_r_o_m" ? and know how to use the SL IM system? It is my understanding from Sonja that for the first time information was requested by the RA just this last Sunday about the AA finances issue. Since it was not at all clear what was being requested, and since I still have no access to a transcript to see if I can figure that out, AND since the tone on this thread is getting louder and more absurd with each post, let me provide some information. Perhaps the various sides on this can at LEAST discuss the real issues.

Rose led off this thread with a post documenting the calculations regarding parcels and tier in the AA sims. As she indicated, I do indeed have copies of this data, and she keeps it up to date with changes that occur. It is very important to understand, when viewing this data, that this is what is "intended" regarding tier collections and tier payments, and may not be what actually happens.

Obviously, actual tier payments are very easy to document, since LL sends a bill that must be paid.

Actual tier collections are easy to document as well, since they are payments coming from a variety of sources into Rudeen Edo's (our community "bank") transaction list. In the case of these collections, however, it may not, and indeed is not, the case that they agree with the "intended tier collections".

Now, this lack of agreement was anticipated, and it does not in itself represent a problem. For example, AA sims use primarily the Hippo box system of tier collection. Hippo boxes enable a payor to pay multiple months in advance, if they so desire. Therefore, if "intended tier collections", as represented on Rose's chart, are displayed on a monthly basis, but some of the payors are paying for multiple months, then the payments for a given month will not agree with the "intended tier collection" for that month.

Since this problem was foreseen at the beginning of the AA integration process (July 1, 2009), I proposed, and it was implicitly agreed, that the financial performance of the AA sims, and the determination of whether or not they paid their way, would NOT be made on a monthly basis. Rather, we would wait for a full year, adding up the various collections and expenditures, and see how it came out. The assumption is that over a full 12 months all those little ups and downs of tier collection would even out, and we'd be left with a clear sense of whether AA in fact collected as much tier as it cost.

Folks. The 12 months is not up. Whatever numbers I present now could change. You might have your own feelings about what will be the picture on July 1, but as far as facts go... we do not know. Please remember that.

I present two charts here, using numbers DIRECTLY from the Financial Reports which I publish every month and which are available to everyone on the CDS website: http://portal.slcds.info/index.php?id=224

Please view the charts and the associated data here: http://picasaweb.google.com/sudane.erat ... April2010#

The first chart, "Cumulative AA Tier Revenue and Expense in L$s", displays with the yellow line how much money we have collected in AA tier revenue from the residents since July 2009. It displays with the blue line how much we have paid to LL in tier for the 5 sims. As you can see, as of March 31, 2010, we are about 750,000 behind.

Let me emphasize. While we are behind in tier collections, we have three more months to go. The steepness of the yellow line is increasing, meaning that more and more tier is collected each month. While it appears to be a very difficult gap to fill, it COULD happen.

As you analyze this chart, please bear in mind that a great deal of effort was put into calculating the numbers fairly and properly at the start date. All prepayments were accounted for, both prepaid collections and prepaid tier expense. The data on this chart is accurate... through March 31, 2010.

I have included the second chart here because there has been some silliness expressed about the nature and purpose of our reserve. The chart simply displays the amount of reserves held each month by the community... again, readily available information in the Financial Reports.

It is quite interesting, and very informative, looking at this chart at this particular time. This graph shows EXACTLY what the reserve exists for. You will notice a million L$ drop in our reserves in October 2009. That drop, corresponding to the first tier payments on the AA sims which can easily be seen in the other chart, would not have been possible if we did not have a million L$s in the reserve. Let's be very clear. The acquisition of the AA sims was made possible by the very fact that we do maintain a reserve. The amount of the reserve may very fairly be open to discussion, but its existence, for a conservatively operated community such as ours, is in my opinion a given.

Here is a power point image sequence explaining the budget process and the part in that process played by the reserve. This presentation has been presented to numerous RA's... it is not new.
http://picasaweb.google.com/sudane.erat ... etProcess#

May I fervently ask that in the future, before initiating a conversation regarding the finances of our community, that you ask either Sonja or myself for the actual data upon which the discussion will be held.

Sudane.........................

[Soro Dagostino]

Thank you Sudane. Your articulate response is gratefully accepted.

[Kaseido_Quandry]

[quote="Patroklus Murakami"

We can have a rational debate about the appropriate level of reserves, spending on events (a massive 38k a month) and salaries for public officials (who are far from 'cronies', who do a useful job for the CDS and who rarely cost the 7k max a month that has been democratically approved for those posts). But you have chosen to debase the political debate by making mean-spirited personal attacks on the people who volunteer their time to help run the CDS government institutions. That's a very old 'tradition' in the CDS and a great way to put people off from ever participating in this way. It's a kind of politics that we have been trying to improve on. Your post take us right back to the old days.[/quote]

Pat: I'm terribly sorry to have offended your sensibilities with the use of the word "cronies." I will endeavor in the future to match the general standard of discourse in these forums and meetings.

However - the shoe fits.

Your crocodile tears at my mean and nasty disparaging of volunteers would have some sway - if volunteers were at issue.

Here's what happened in the last RA meeting: In response to hearsay about the state of CDS finances, *you* proposed significant cuts to public services. You also, at the same time, supported paying a stipend to a sitting member of the RA who is, I believe - and I count on you to correct me if I'm wrong - a member of your political faction.

E.g., a "crony."

Meanwhile, *actual* volunteers met yesterday in the Roman sims meeting and *self-organized* to take precisely the actions to grow and market their community that the RA seems to think are unaffordable frivolities, despite a level of financial reserves that borders on the obscene.

Them, you're not paying, not supporting, and actively hindering with policies intended to quash any activity in the community other than unproductive political infighting (which I clearly enjoy as a participatory sport, since I'm here, but don't think is a healthy one for any community, let alone as its main "authorized" entertainment).

As to your suggestion that I bring concrete proposals before the RA - you're quite right. Stay tuned.