Proposed Initial Contribution Scenario:
Initial land cost: $15,000 (not unreasonable for 5 acres in parts of AK)
Fred: $7,000 and arrives year 0
Betty: $3,000 and arrives year 1
Wilma: $1,000 and arrives year 2
Barney: $1,000 and arrives year 1
Mr. Slate: $1,000 and arrives year 5
Uncle Tex: $1,000 and arrives year 0
Dino: $1,000 and arrives year 0
Bamm-Bamm: $0 and arrives year 0
Arnold: $0 and arrives year 0
If we consider $1,000 as a basic "membership" fee, Fred is "owed" $6,000, Betty $2000, and Bamm-Bamm and Arnold "owe" $1,000. Wilma, Barney, Mr. Slate, and Uncle Text are square, and exempt from the rest of the discussion.
To keep the barrier of entry low, non-feudalistic, and non-hierarchical, we would like to avoid a strictly defined entry fee. Alaskan residents (after 1 year) receive a state dividend (ASD) ranging from about $800-$2,000 due to state oil revenues.
Option A: Those paying no up-front cost would commit to have their first year's ASD put into a group fund. Regardless of that year's dividend amount, it would go to a group account. The group would then annually reimburse Fred and Betty from any surplus in this account until their respective $6,000 and $2,000 are refunded.
(includes assumptions of Option A, and extends it)
All members staying on the land long-term would commit to having their ASD contributed to the group's account.
In the example above, Fred and Betty would still be reimbursed from the group's account surplus until they are even. The account would simply grow faster.
The desired end is to continue to use the group's account to 1) pay taxes. 2) pay for land-related expenses. 3) roll surplus into purchase of more land to extend land base of the community.
Andrew Scott wrote:For the sake of simplicity of math, lets ignore taxes on the dividend and land.
C Lamson wrote:Land at 15,000 and fred at year 0 pays 7,000 ; who is going to pay the rest? Fred may get the dividend in year 1, right now its at 900.oo. your numbers dont work out right.
C Lamson wrote:9 people on 5 acres is gonna be a pain in rear. I think it will take five or more years to get repayed. Most that money would go to taxes.
C Lamson wrote:I think it will take five or more years to get repayed. Most that money would go to taxes.
C Lamson wrote:Half the year is dark. I think your going the hard way of paying for land. Read through the alaska website and ask questions of them.