[members-discuss] GM topic

Fri Apr 26 09:58:24 CEST 2024

Hello all,

I just want to make some corrections on the facts that can help with the 
discussion.

On the budget numbers, a 20% revenue or cost budget increase is simply 
incorrect.When I talk about revenue budget, I specifically mean the 
revenue the Charging Scheme is projected to generate. This is the 
discussion we are having now, and will be decided at the upcoming GM.

When I talk about cost budget, I specifically mean the Activity Plan & 
Budget. As part of our governance, this discussion will start after the 
summer.

Option A from the three proposals does indeed propose a 22.58% LIR fee 
increase. This is correct.

All three options project a budget revenue of 41.1 Million EUR, which is 
an 8% increase from the 2024 revenue budget of 38M EUR, and a 3% 
increase compared to 2023 (40M EUR).

This projection is based on a reducing number of LIR accounts:- 2023 
Budget number of LIR Accounts 22,500- 2024 Budget number of LIR Accounts 
21,500- 2025 projected Budget number of LIR Accounts 20,000 - equal to 
the number of individual members

The reason for this decline is the expected continued consolidation of 
multiple LIR accounts.Additionally, we see a stable development of 
individual members, at around 20,000 for the past four years, and we use 
this as the basis to ensure some stability in our revenue budget.

We use the Activity Plan & Budget 2024 to estimate the cost budget for 
2025, including a general increase for inflation and salary increases. 
This is under the assumption the RIPE NCC will execute our 
responsibilities without any change in activities. Our projected revenue 
budget does not define our cost budget for 2025 - the Activity Plan and 
Budget process does. If the situation arises that we have collected more 
funds than needed our governance requires a redistribution vote at the 
autumn GM.Please note that with the assumption that the LIR account 
projection of 20,000 for 2025 is correct, not increasing the LIR fee 
would result in a projected revenue budget of 34 Million EUR.This would 
mean a reduction of 11% (34M) compared to revenue budget 2024 (38M), and 
a 15% reduction compared to 2023 (40M).

Lastly, I want to make it very clear that we, as the RIPE NCC, are not 
opposed to differentiation between members. We did propose the category 
model last year based on extensive consultation and discussion with the 
members, which could have been the start of this differentiation. This 
model was rejected, and we have to respect that. Any proposal will need 
consensus, as well as input from a diverse group of members, to ensure 
we reach a Charging Scheme that serves the needs (as far as possible) of 
all our members.

Please use my words here as input for the discussion. I have purposely 
not given an opinion, as the discussion should be among members.

Kind regards,

Simon Jan HaytinkRIPE NCC CFO

On 25/04/2024 09:18, Hank Nussbacher wrote:
> On 24/04/2024 18:28, Max Tulyev wrote:
>
> I have added my support as I suggest everyone else do.
>
> Everyone should realize that the major issue here is whether the 
> annual fees will increase somewhere between 16-23%.  Max has suggested 
> a 0% increase.
>
> Look at the 2023 financial report:
> https://www.ripe.net/documents/3756/ripe-821.pdf
>
> No need to read all 39 pages - just page 6.  Quote:
>
> "In 2023, we focused on reducing costs to ensure we can cope with the 
> reduction in income due to the decrease of LIR accounts over the past 
> few years. As a result, total expenditure was 37.3M EUR, 2.7 kEUR (7%) 
> below the budget of 40M EUR. This puts us in a good position to 
> operate within the 2024 budget of 38.2M EUR and to cope with inflation."
>
> A target budget of 37-38M Euro is easily doable and we should not 
> agree to a 20% increase in fees in order to support a 20% increase in 
> total budget.
>
> Regards,
> Hank
>
>> I have created the request for GM Agenda proposal "Keep current 
>> billing scheme for the next year".
>>
>> Now it depends on your support. If there will be 400 supports, it 
>> should be included to GM.
>>
>> Here it is the link: 
>> https://www.ripe.net/participate/meetings/gm/member-proposals/1/
>>
>> You just need to click on the "Support" button.
>>
>
>
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