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<div class="">On Sep 6, 2016, at 4:03 PM, David R Huberman <<a href="mailto:daveid@panix.com" class="">daveid@panix.com</a>> wrote:</div>
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<div class="">John,<br class="">
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Thank you for putting this out for community consultation. I think this is a fairly big shift in both thinking and fees, and it is good that the Board is asking for input.<br class="">
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To provide that input, however, I would like to see more data to have a better understanding of the proposed changes.<br class="">
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Baseline data we already know:<br class="">
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- Audited finncials from last year report $31.8M in reserve.<br class="">
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- FY16 budget is $21.7M<br class="">
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- FY16 revenue is projected at $18.8M (a ~$2.9M deficit)<br class="">
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- The audited financials for FY15 show $276,500 in revenue under "Network<br class="">
transfers"<br class="">
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Questions that come to mind, to try and be informed:<br class="">
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- assuming this was in place Jan 1, what would the projected revenue be for transfers in FY17?<br class="">
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- what assumptions were made to get to this projection?</div>
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<div>David - </div>
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<div>Approximately 25% of the transfers do not complete (and therefore fees are not collected)</div>
<div>Per <a href="https://www.arin.net/knowledge/statistics/transfers.html" class="">https://www.arin.net/knowledge/statistics/transfers.html</a>, 425 blocks address blocks have</div>
<div>been transferred in the first half of 2016. </div>
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<div>Expected Fees collected: 425 * $500 = approximately $212.5 thousand, which annualized </div>
<div>(presuming second half of 2016 resembles the first half) should total about $425 thousand. </div>
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<div>Note - this does not consider fees waived for parties who already have resources under </div>
<div>registration services agreement, but that is a small portion either way (i.e.most transfers </div>
<div>are legacy resources)</div>
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<div>If 2017 resembles 2016, the revenue from transfers would be $425 thousand, absent</div>
<div>any changes. If the fee change is made, approximately 33% more revenue would be </div>
<div>collected over FY2017 - an additional $146.6 thousand (total $566.6 thousand) </div>
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<div>We presently see transfer processing taking an increasing amount of staff time, and </div>
<div>hence proposed the change to avoid having some of these additional costs (particularly </div>
<div>from those who may not make requests fully in good faith) from being absorbed by the </div>
<div>community at large. One additional benefit is that we’ll be able to more quickly complete </div>
<div>transfers, as presently and approved transfer goes back into the financial side of the house </div>
<div>until the fee collection is complete, and with the change we will instead be able to directly </div>
<div>proceed with the registry update.</div>
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<div>Please let me know if you have any further questions - Thanks!</div>
<div>/John</div>
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<div>John Curran</div>
<div>President and CEO</div>
<div>ARIN</div>
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