Sunshine Community Gardens

Sunshine Weekly Weeder Newsletter

18 May 2017

www.sunshinecommunitygardens.org

Gardener's Picture page

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All Gardeners Meeting - Saturday, May 20 - 10:00!

Agenda:

• Election of new officers.
• Rate Increase discussion and member ratification vote.
• 1 new Site Rule and 1 Site Rule Amendment for member ratification vote.

Please read the Weeder information provided and come prepared to vote!

Nominees for new officers

President

• Nick Sweeney - bio

Vice President

• Marilyn Landberg - bio

Treasurer

• Carol Limaye - bio (seeking a 2nd term)

Kay McMurry has withdrawn her candidacy for president.

Electronic absentee voting for officer elections will be available for five days following the meeting.

Per SCG's site rules, changes to the Site Rules or Bylaws must be ratified by those present at the meeting, and are not eligible for absentee voting.

If you are unable to attend the meeting you will be receive an email for absentee voting. If your email address has changed please fill out this form on the SCG web site.

Rate Increase

The board discussed the fee increase at several meetings and Carol Limaye, as treasurer, prepared several scenarios of Sunshine's projected financial situation. Based on a review of these scenarios and its discussions, the board decided the proposed fee increase was the best business decision. Some may ask why an increase now? As one of the board members commented: "The time for a fee increase is when times are good not after there is a crisis." The board believes the fee increase would help secure the finances of our organization so we can continue to operate and make improvements regardless of the outcome of plant sales or major disasters.

In accordance with the process for implementing fee increases, the board has amended the site rules to reflect its recommendation and members will be asked to ratify the amendment at the May 20th A ll-Gardeners meeting. If members ratify the amendment, the fee increase will be implemented. If they do not, the amendment will be considered repealed and no fee increase will be implemented.

The board urges members to ratify the increase at the All Gardeners meeting. However, if you have any questions or wish to see the supporting analysis, please contact Carol Limaye at (512) 445-6670.

Recommended Rates:

	*Effective August 1, 2017:	*Effective August 1, 2019:
Quarter Plots:	$35 (no change)	$37.50 ($2.50 increase)
Half Plots:	$50 ($5.00 increase)	$55.00 ($5.00 increase)
Full Plots:	$100 ($10.00 increase)	$110.00 ($10.00 increase)

*Rate changes will be applied to new gardeners joining after the effective date. Current gardeners will not pay the increased rate until their annual renewal in February. The board is agreeable to changing the effective date to February 2018 if that is the membership's preference.

Q&A on Rate Increase from the Board

While we recognize that all members love Sunshine Community Gardens and want it to be sustainable into the future, we know there are dissenting opinions about the rate increase. With the intention of being as transparent as possible, more financial information is available on the website

Q: We have gone decades without a rate increase. Why now?

A: In the past, we have either been sponsored by another organization or have had multiple financial crises. Now that we are a stand-alone non-profit, we must take care of ourselves. A part of financial stewardship is to look forward to make sure our revenues are keeping up with expenses and we are not caught off-guard. This is a responsibility shared by the board and the members.

Q: Why do the rate increases begin in August?

A: Since this is a decision that affects all of the membership, we want to schedule the vote at the annual All-Gardeners Meeting on May 20 to get maximum participation. August 1 is the start of the Fall season. If the new rates are approved by the membership, they will be effective at the start of the next season. Only new gardeners will pay the increased rates until the Spring annual billing which is due on February 1, 2018.

Q: What expenses will increase for us in the future? Why doesn't the analysis detail the line-item expenses to justify the increase?

A: We agree that it would be very helpful to know what our costs will be in the future. It would also be helpful to know how much rain will fall and when. All we know for sure is that the Consumer Price Index is 3% and that we need to be prepared for our costs to increase by at least that much. If we wait until we know about cost increases on a line-item basis, it will be too late to increase revenues from our annual billing. That said, we do know that we have had rate increases this year in the trash contract and trailer utilities. The City of Austin raised the commercial water rate in November of 2016, and there is a strong probability those rates will increase again in the next five years. The water and utility expenses are over 40% of our budget.

Q: Why do we need a large reserve?

A: We are fortunate to have about 2.5 years of expenses in our reserve fund ($110,000). The guidelines for non-profits suggest reserves of 2-3 years, especially if revenues depend on only one or two fundraisers during the year and expenses are heavily influenced by weather. The rate increase will help maintain those reserves. Small organizations like ours have more risk and are more vulnerable to uncontrollable factors. One or two adverse events could wipe us out if we do not have an adequate cushion.

Points against the SCG Rate increase by Kay McMurry

First, let me say that I appreciate all of the hard work that the Sunshine board does on behalf of our garden. While I do disagree with the board on this topic, I do thank them for their efforts. I do not agree with their plan to raise fees and respectfully offer up the following arguments against the plan in the form of questions.

Q: Don't we need to raise our rates?

A: We're being asked to vote to increase our fees at a time of record surplus for our organization. We have $110,000 in savings and $49,500 in checking as of 3/31/17. It's been estimated that our savings represents 2.5 years of operating expenses. Before we vote, we need to really examine why we're being asked to raise our fees given such large cash reserves.

Q: What about the issue of financial security mentioned in last week's Weeder?

A: Two and a half years of operating expenses seems like a good deal of security to me. We have two main sources of revenue, plot fees and plant sale revenue. Plot fees are exceedingly stable. Our plots are fully rented year-round and collect roughly $17,000 annually from membership fees. The waiting list has mostly been steady at roughly 60+ prospective gardeners at all times. We have had a robust waiting list for many years. The annual plant sale has been making a steady profit for years. This year, we took in roughly $47,400. Our net last year was roughly $21,000 and we'll probably do about the same this year. We've had some rough weather around the plant sale, but we have still managed to make a sizeable profit each year. Even if we had a couple of bad years or more, we would still not run out of money, and if we did, we could do something about it then.

Q: Why is the argument about "the time for a fee increase is when times are good not after there is a crisis" invalid in your opinion?

A: The comment that it's always better to raise money during good times is not relevant to our situation. Increasing profits in a for-profit business is inherently a good thing. For example, a business can continue to raise prices as long as there is strong demand for its products, but raising prices when there is not drives away customers. This is not relevant to our situation since increasing profits in a non-profit business is not the inherent goal. Actually, nonprofits do well raising money during crises. Witness any fund drive after a major catastrophe.

Q: What could Sunshine do if we had large unexpected expenses?

A: If Sunshine did have a financial crisis, the board would have several possible ways in which it could weather it. It could dip into its large cash reserves and make up the deficit in the operating budget. There would then be the option to raise fees during the next year to replace any reserves. Alternatively, or in conjunction, it might ask the members for permission assess a one-time fee to raise money from its members immediately. The board could ask for donations from its members or the general public. Lastly, the garden could hold a fundraiser or reduce its contribution to other entities. I'm sure that you may be able to think of other ways that we could bring in money if we suffered a financial crisis severe enough to warrant action. If we did have a financial crisis and ultimately needed to raise fees, I am sure that everyone would agree that it would be appropriate to do so. Raising fees with 2.5 times our annual budget in the bank now just doesn't make sense.

Q: What is unprecedented about the proposed rate increase?

A: The unusual step to this proposal is that rates would go up in August of this year and then again two years from now, assuming that the general membership approves this measure. That action makes it harder for the next board to eliminate the second rise because they would have to go back to the membership and ask to not raise fees. Why step on the toes of the incoming board?

Q: How much reserves is recommended for nonprofits to have?

A: From the Knowledge Base FAQ of Grantspace.org:

A commonly used reserve goal is 3-6 months' expenses. At the high end, reserves should not exceed the amount of two years' budget. At the low end, reserves should be enough to cover at least one full payroll.

However, each nonprofit should set its own reserve goal based on its cash flow and expenses. Organizations that have contracts or fees with regular and reliable payments don't need as much in cash reserves as organizations that rely on periodic grants, fundraising events or campaigns, or seasonal activities.

Citation: http://grantspace.org/tools/knowledge-base/Nonprofit-Management/Sustainability/operating-reserves, accessed 4/12/17.

Q: How does our income and expenses in the 2016 budget compare to the actual values?

A: We are very good at estimating our income (1% difference), but we are not so good at estimating our expenses. We spent $9500 less than we budgeted. We seem to have overestimated expenses in several categories. In fact, we typically spend less than we take in, which is why we have such a large reserve.

Q: Why do you think our budget is as high as it is?

A: I question the need to raise fees when we have been using our substantial savings as justification for spending more money. For example, when I was on the board, our substantial savings were used multiple times as justification for funding projects such as sending people to the annual ACGA conference. In fact, the board decided last year to sponsor members of another community garden to attend the conference. I can't help feeling that our spending is definitely influenced by our large savings account. While I support such educational projects, it seems unfair to raise fees to pay for projects that get approved because we are feeling flush due to our savings. We should spend some of our savings to finance projects, not raise fees.

Q: Will raising the fees for our members hurt them financially?

A: Probably mostly no, but definitely yes for some people. Many of our members are retirees living on fixed incomes. Others are young people just getting started. I am the plot coordinator, and as such, I often communicate with people who are either leaving the garden membership or becoming members. I can tell you that we are definitely losing some current and prospective members due to financial difficulties. While the number may not be high, it seems unfair to raise prices when some members are having trouble paying our fees. Some prospective members have not been able to come up with the money needed to join.

Q: Can't we make exceptions for people in financial need and waive their fees?

A: We currently more or less automatically waive fees for a handful of needy gardeners. However, if people have to ask for waivers, they are not very likely to do it because it is humiliating. Do we automatically grant the waivers, or make them prove their income? It very quickly becomes a sticky situation. If we don't raise our fees, there will be less of a need to grant waivers. I realize that most of us will be able to afford the increases, but I ask that you please consider those on a fixed or low income and vote against the fee increase. Additionally, we largely did away with paying seasonally to reduce the workload and raising fees can make it even harder for people to come with the full amount at one time. Let's make Sunshine more inclusive and not less inclusive

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Q: What about the graph in last week's Weeder? That was a pretty steep slope!

A: A minor point, but the graph presented in the Weeder is misleading in terms of the magnitude of the deficit because it does not start at zero on the Y axis. Here's a graph that uses the appropriate Y axis:

Q: What have you heard about Sunshine from other community gardeners?

A: One, that it is impossible to get a plot here or, at least, takes years (not true). Two, that it's full of people who can't garden in their yards because they're too shady (mostly true). What a great problem to have! Many other gardens are full of people who have no other place to garden. A sizeable portion of our members also have no other place to garden. If we raise our fees, we are making ourselves less inclusive and perpetuating our image of exclusivity.

Q: What is our real insecurity, if not financial?

A: Our real issue is land security, not money. If TSBVI ever asks us to move, the extraordinarily high cost of land in Austin would seemingly prevent us from buying land near our current location. Renting is also probably out, as land prices would put pressure to develop any currently undeveloped land. I can see that we might be able to work with Austin's community garden coordinator to locate city land within the floodplain to locate a suitable piece of land, but hopefully, that is at least a few years down the road. If we were to end on up city property, we would likely be restricted to what we could do to alter the property, so it's unclear how much money we would need. However, I do not see the wisdom of raising our membership fees now to pay for a nebulous future.

Opinion on rate increase from Charlotte Jernigan

While I have a mixed reaction to the proposed raise of our plot fees, I am committed to look at the numbers and give it some thought. It has been quite a few years since our last plot fee raise and if the financial health considerations bear out the need, I will vote in favor of one or both raises as long as we can work out better start dates during the ratification process at the All Garden Meeting on 5/20/2017.

I have had email exchanges with SCG Board members because I strongly questioned the use of the two August start dates, which I find unusual given that annual billings are in February. Jeff Monks has clarified that the August 2017 fee increases will only apply to new members. Existing member fee increases will first be in effect for our February 2018 annual billing. I believe their reasoning was to start bringing in some extra revenue ASAP via new members even though the majority of us are not affected until February 2018.

The second raise and the second date are the ones that I have the most concern about. I question voting in an automatic increase on behalf of future members but I am most bothered by the August 2019 start date. I do not believe we should set a precedent of mid-year rate hikes just because there is perceived urgency in 2017. I would at least like to see a modification of that second date prior to the ratification vote so that we stay aligned with the billing year.

There are four options for the second rate hike and our treasurer, Carol Limaye, has agreed to speak about the financial impact of each of these at the meeting:

1. leave second rate-hike date as proposed for Aug 1, 2019 (presumed to apply only to new gardeners)
2. move that date forward to align with February 1, 2019 (only one year after the first rate-hike)
3. move that date out to align with February 1, 2020 (assumed to be when an "August 2019 mid-year raise" would hit all members anyway)
4. drop second rate-hike all together and leave future raises up to the future members who will be affected by it

I look forward to discussing this will all fellow members during the meeting.

Opinion from Margaret Powis

While I understand the necessity of increasing the cost of plot rentals, I think it is time we stopped funding trips to the ACGA conference.

It seems to me that if there is the necessity to raise rates then we should economize where we can. Sending people to the ACGA conference and paying the costs is not something the members of the garden community should be asked to do.

I propose that Sunshine Garden permanently discontinues this practice from the year 2018 onward.

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Site Rules Changes

Rule 1.A.3 - WITHDRAWAL Amendment

Rationale

Clarifying amendment to explicitly reflect in site rules how current language is interpreted by board.

Current Rule Language

If a member voluntarily withdraws from the garden and wishes a return of the clean-up fee, a Withdrawal Form must be completed and submitted to a Board member, and the plot must be cleared and left in good condition for reassignment. These conditions must be met within the term of the member's contract. Refunds of the plot fee shall be made in accordance with the following schedule and are not contingent on clearing the plot:

75% if gardener withdraws from garden before May 1 (3 months);
50% if before Aug 1 (6 months); and
25% if before Nov 1 (9 months).

Proposed Amendment

If a member voluntarily withdraws from the garden, fees are refundable as follows. The member must provide a current mailing address in the Withdrawal Form or other written notice of withdrawal.

1. Tool Co-op Fee: Refundable to new members who withdraw within 30 days.
2. Plot Clean-up Fee: Refundable: Refundable if member submits a Withdrawal Form and the plot is cleared and left in good condition for reassignment. These conditions must be met within the term of the member's contract.
3. Plot Fee: Refundable in accordance with the following schedule to members who pay on an annual basis and not contingent on clearing the plot:
   75% if gardener withdraws from garden before May 1 (3 months);
   50% if before Aug 1 (6 months); and
   25% if before Nov 1 (9 months)

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New Rule - WAIVERS

Rationale

This amendment reflects current board practice. Including in site rules will ensure that all gardeners are informed about this practice and provide guidance to the board in granting waivers.

Language

To avoid a significant hardship for an individual gardener, the board, by a two-thirds vote, may waive a site rule provision. The board may condition the waiver on the gardener's agreement to fulfill certain obligations. In granting a waiver, the board should consider, at a minimum, the extent of the hardship to the gardener, fairness to other gardeners, financial impact on Sunshine, alternate ways for the gardener to satisfy provision being waived, and Sunshine's purpose as a 501(c)(3) tax-exempt organization.

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Encroachment Between Plots

With plants reaching their mature size and the warmer weather encouraging weeds, encroachment between plots can become an issue. Gardeners who experience an encroachment problem should try to work it out with their gardening neighbor. If that isn't successful, gardeners should discuss the problem with their zone coordinator. Please be aware that no member is allowed to take action in a neighbor's plot. Engaging in any self-help solutions such as removing plants(even "weeds"), from a neighboring plot or moving a neighbor's wood or brick border is not appropriate.

Adjacent gardeners may want to consider creating a two-foot wide path between their plots by each giving up one foot of their plot. A path between adjacent plots is great way to provide a weed free strip between the plots and to provide a way to garden each plot without getting into the other. Using any portion of a neighboring plot to create a path is appropriate only with the gardener's consent.

Almost all Sunshine members share a border with one or more plots and shared borders require being considerate of gardening neighbors.

• Planting plot based on size of plants when mature.
• Locating tall plants to minimize shading of adjacent plots.
• Planting plot so it can be gardened without having to get into a neighboring plot.
• Keeping the areas of plot bordering other plots free of Bermuda grass, weeds and invasive plants such as mint.

Two site rules explicitly address the issue of encroaching on neighboring plots.

Rule I.E.1: Vegetables and ornamentals, including their trellises or similar supporting structures should not be planted/placed so close to plot boundaries that:

• the plants cannot be cultivated or harvested without entering a neighboring plot,
• a plant or structure casts excessive shade on a neighboring plot, or
• a plant or structure otherwise encroaches on a neighboring plot

Rule I.D.1.e: One-foot strip inside plot along common borders with adjoining plots must be kept free of weeds (Bermuda grass, bindweed, etc.).

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Nominating Committee

If you would like to be on the nominating committee for the next set of elections please contact Ila at Ila.falvey@gmail.com

Nominating Committee Description

The Membership of the Initiative shall elect the Nominating Committee at the Annual Meeting of the Initiative for a one-year term. The Nominating Committee shall develop a slate of candidates for the Officer and Director positions whenever there is an election. Any nominee must have agreed in wr iting to uphold the position as stated in the Bylaws or as amended by the Membership. A member of the Nominating Committee may serve no more than two (2) consecutive terms.

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Going to be gone this Summer?

Please contact Emlyn Resetarits at emlyn.resetarits@gmail.com if you are going to gone for all or par t of the summer and need someone to tend your plot. Emlyn is on the wait-list and willing to help out over the summer.

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American Community Gardening Association 2017 Conference

If you are interested in attending the 2017 ACGA conference representing SCG on July 27th - 30th in Hartford Connecticut please contact Randy at jartdaht@gmail.com. The garden will cover the cost of airfare, hotel and most meals.

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Volunteers Needed - Porch Repairs

We are looking are volunteers with construction experience to assist with repairs to the trailer porch. If you are interested please contact Jeff Monks at garden@jeffmonks.com

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Officer and Zone Coordinator Contacts - Sunshine Gardens

Officers

• President - Jeff Monks garden@jeffmonks.com
• Vice President - Jim Willmann jhwillmann@gmail.com
• Secretary - Polly Porter pporter_scg@austin.rr.com
• Treasurer - Caroline Limaye scgtreasurer1@gmail.com
• Director - Bill Cason wccason@gmail.com
• Director - Lori Dobbin loridobbin@gmail.com
• Director - Randy Thompson jartdaht@gmail.com

Email the board.

Zone Coordinators

• Zone 1, Martin Morales marmoral512@gmail.com
• Zone 2, Katy Davis katydavis@austin.rr.com
• Zone 3, Ludmila Voskov lvoskov@austin.rr.com
• Zone 4, Ila Falvey ila.falvey@gmail.com
• Zone 5, Mary Gifford mgifford@austin.rr.com
• Zone 6, Charlotte Jernigan charlotte@cybermesa.com
• Zone 7, Maria and Philip Wiley m.stroeva@gmail.com, philip9wiley@gmail.com
• Zone 8, Shannon Posern sposern@hotmail.com
• Zone 9, Kerry Howell casonhowell@gmail.com
• Zone 10, Christopher Schroder christopher.s.schroder@gmail.com &
  Karl Arcuri karl.w.arcuri@gmail.com

Other Personnel

• Weekly Weeder Newsletter - Polly Porter pporter_scg@austin.rr.com
• Plant Sale - Randy Thompson & Janet Adams jartdaht@gmailcom
• TSBVI Liaison & Volunteer Coordinator - Janet Adams jartdaht@gmailcom
• Plot Assignment - Kay McMurry scg.plots@gmail.com
• Compost Coordinator - Janet Adams jartdaht@gmail.com
• Education Committee - Shannon Posern shannonposern@gmail.com
• Carpentry & Repairs - Robert Jarry r.jarry@sbcglobal.net
• Water Leak Repairs - Steve Schulz sschulz784@aol.com
• Tools & Wheelbarrows - Bob Easter beaster1@austin.rr.com
• Kitchen Supplies - Anita Keese anodekraft1@msn.com
  (If supplies are needed for events, contact by email or at 512-773-2178)
• Compost Tea - Jennifer Woertz jen@enjeneer.com
• Micah 6 - Dana Kuykendall kuykendall@austin.rr.com
• Micah 6 - Mary Gifford mgifford@austin.rr.com
• Website Coordinator - Sharon Rempert scgardenweb@gmail.com