Dear Members:
This is a reminder of our important Membership Meeting this Sunday, Nov. 15
th at 1 PM, via Zoom.
This is an important meeting because we have a fiscal crisis, and have big decisions to make. It is very important for the decisions to be made by as many members as possible.
Below, you will find a summary of the situation, and what we need to consider; it’s also attached as a link, as is this year’s budget for BSEC. If you wish the previous documents on which the summary is based are available.
PLEASE: To prepare for the meeting, please read the summary below. It will help you take an active part in a useful discussion.
SUMMARY OF INFORMATION
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WHAT IS THE CRISIS?
Loss of Income:
- Our sources of funding have disappeared. Our main income has been building rentals, both for events and to long-term tenants such as Studio Creative Play.
- Short-term: Because of the pandemic, event rentals have disappeared
- Longer-term: Our building is not licensed for school or childcare purposes; even without the pandemic we would not be able to have a school tenant again. Modifications required for that use would cost hundreds of thousands
High building expenses
- We have paid out large sums in recent years for major building repairs, including work to correct the repeated floods in the basement. Given the building’s age and condition, that can only increase
- The Buildings and Grounds committee compiled a list of needed work amounting to about $1.4 million (more than the society’s investment fund), and there may be new issues to be dealt with.
WHAT HAS BEEN PROPOSED
The Financial Stability task force considered various options. In a report presented to the Board and to the September 26 Member Meeting, it concluded that only two of the options it considered were possible; others (a concessionaire, a cooperative community center, a community land trust) were considered but didn’t offer a solution to our problems. Two were withdrawn; the other would require a long-term investment of time and money. The two options moving forward were
- Sale of the building, using the proceeds to both find a new home for the Society and our programs, and adding the balance to our investment fund to generate income for our programs
- Sale of a corner lot, allowing a developer to create a building at the 2nd Street corner, and using the proceeds to repair and renovate the building, and adding the balance, if any, to the investment fund. This solution might also keep us out of our building during construction.
WHY WE HAVE TO ACT SOON
Despite the pandemic, we have been able to keep going as a community. Our Platforms have anchored us, we have been able to have meetings, community activities, we have kept our Ethics for Children programs going.
But that also means we have kept expenses going. Even without a leader, an administrator or a bookkeeper, which we sorely need, that costs money. And the building has its own set of expenses. The result is that we are living by drawing down from our investment fund. At this moment, we must do that, but it will run out. We have only the choice of making a decision while our options are open or waiting until we have no funds and no choice.
The decisions must be made by the membership; we need you to take part.
