Mosaic Commons:
Handling Budget changes

This document explains how increases in the budget will effect equity members.

Scenario 1:

Members who had previously met their 5% minimum (Bucket 1) but who have not made any Bucket 2 or 3 investments

Such members will be required to reach the new minimum 5% by resuming monthly payments at least as large as their original schedule or by paying the difference all at once.

When appropriate, the finance team may arrange an accomodated payment schedule with a member to reach the new minimum 5% contribution.

Scenario 2:

Members who had previously met their 5% minimum (Bucket 1) and have made additional Bucket 2 investments

Such members will be given a choice between:

1. redesignating all or part of their Bucket 2 investments as minimum equity contributions in order to reach the new 5% minimum or
2. resuming monthly payments at least as large as their original schedule until they reach the new 5% minimum.

If option (a) is chosen and the amount in Bucket 2 is less than the difference between the old and new minimum, the members will then be required to resume monthly payments at least as large as their original schedule until they reach the new 5% minimum. If option (a) is chosen, no interest earned on money that was previously designated as Bucket 2 will be lost, but interest will not continue to accrue on these redesignated amounts, only on amounts remaining in Bucket 2 and new contributions to Bucket 2.

When appropriate, the finance team may arrange an accomodated payment schedule with a member to reach the new minimum 5% contribution.

Scenario 3:

Members who are still making monthly payments on a schedule to reach their 5% minimum (Bucket 1).

Such members will be given a choice between:

1. continuing payments at their current schedule but possibly extending the number of payments,
2. switching to the new payment schedule, or
3. recomputing their payment level, in consultation with the finance committee, to reach the new 5% minimum in the same time frame as previously planned.

When appropriate, the finance team may arrange an accomodated payment schedule with a member to reach the new minimum 5% contribution.

Scenario 4:

New Members

The payment schedules currently approved by the group will be in effect for any members who join after a change in payment schedules. All members will still have the opportunity to make special payment arrangements in consultation with the finance team.