Cohousing-L Mailing List: Sliding scale assessments

[Lynn Nadeau (welcome]

RoseWind Cohousing, Port Townsend WA, has just concluded a successful 
experiment in sliding-scale assessment setting. 

Former system: 
We used a flat rate, so those who needed to, or wanted to, pay less than 
the proposed assessment created a lowest-common-denominator solution that 
left the proposed budget chopped, and better-off members disappointed 
that worthy projects had to be cut.

We have considerable economic diversity within our group. 

This new system, adopted for a one-year experiment this year:
>From our draft budget we noted what the annual assessment would be if 
that amount were shared evenly. That figure ($1013) was circulated in 
advance, as was the amount which constituted 75% of that, which was the 
minimum a household could offer. Our goal was to fully fund the $24,300 
itemized in the proposed budget, and still allow each household to put in 
what they chose to, with confidentiality. 

Each household was sent a three-slip pledge form. Those who would not be 
attending the  meeting submitted three bids, each pre-marked with a 
secret identifying code number. The first was the low bid of what they 
would like to offer, and each of the next two could stay the same, or be 
raised. We were informed that if we did not participate in the pledging 
process, either by submitting the papers in our absence, or submitting 
them at the meeting, then we would be billed the flat-rate equivalent 
amount. 

We also agreed in advance that if by a third round of pledging we had not 
raised the total, the finance committee would meet with other committee 
reps and work out cuts so that we would have an approvable final budget 
next month.

At the meeting, we reviewed the numbers, and each wrote out our Pledge 
Number One and put it in a basket. The Pledge Ones submitted by absentees 
were added in, and two people went in the back room with a calculator. We 
chatted and took a break. Then the Announcement. The shortfall was 
posted, and Pledge Two was collected. Break, announcement of shortfall, 
collection of Pledge Three. Here's how the pattern emerged:

PLEDGING RESULTS
Round one: $1951 short     12 bid under uniform rate, 9 at, 3 over
Round two: $1136 short     10 under, 6 at, 8 over
Round three: $523 short     9 under, 7 at, 8 over  

We congratulated ourselves, turned it back to the Finance Committee and 
moved the agenda. 
In the minutes, I noted that if by any chance anyone was moved to donate 
towards the shortfall, nobody would object. The next day a member's mom, 
who is a social member of the community, announced that she'd make it up. 
So we didn't even have to negotiate the $523. 

The advantages are clear. Some households were enabled to pay hundreds of 
dollars less than others, it was all voluntary and confidential (only the 
treasurer will have the code list), and we funded everything we had 
thought was good and reasonable to request. 

We can think of a few refinements for next year, but it is surely worth 
continuing again next year. We ought to serve ice cream or something, or 
pair this process with a high-interest decision item on the day's agenda, 
because I think with higher in-person attendance (many sent in pre-chosen 
amounts and didn't attend) we could have seen even more movement between 
rounds, and even generated a surplus! Which would be FUN for the reps to 
find a use for. 

For once, "live and learn" has been a POSITIVE experience!

Lynn Nadeau, RoseWind Cohousing
Port Townsend Washington (Victorian seaport, music, art, nature)
http://www.rosewind.org
http://www.ptguide.com

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