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ATTACHMENT C FINANCING PLAN The basic Community Safety Building can be paid for entirely with internal funding to come from cur- rent and ~uture Facility Reserve resources and other one-time ~unds. According to the council-adopted Financial Management Goals & Policies, Policy C.6., the City will use non-recurring revenues (i.e., one- time money) on limited-duration services, capital projects, equipment requirements, or services that can be terminated without significant disruption to the community or City organization. The one-time resources included in the financing plan are appropriately used for a high-priority capital projects such as the Community Safety Building under this policy. The following chart summarizes the proposed financing plan. Note that the specific amounts are esti- mates and are subject to change. Basic Community Safety Building Financing Plan Source Amount Facility Reserve $11,223,000 Telecommunications Funds 1X$ from Settlements 10,200,000 On-Going Telecom Funds 763,000 ROW Revenues in General Fund 5,200,000 Interest Earnings on Cash Balances 750,000 Other Miscellaneous Sources 50,000 Total $28,186,000 Funding Sources The specific funding sources included in the financing plan are described below. Facility Reserve Balance: The City has been setting aside funds for replacement of City Hall for sev- eral years. As a result, the FY05 budget includes a balance in the Facility Reserve of a little over $7.5 million. It is anticipated that approximately $3.9 million of additional funds will be added to the reserve during FY06 through FY09 from capital replacement charges and repayment of the Risk loan. There- fore, just over $11 million is available for funding of the Community Safety Building. Because Facility Reserve amounts are relied on beyond the end of the construction date, the City will have to enter into interfund loan agreements in order to pay the construction costs and repay the loans when future Facility Reserve amounts are available. Telecommunications Funds: In December 2003, the Oregon Supreme Court ruled in favor of the City affirming the City's right to collect the 2% telecommunications tax on non-local exchange revenue. In April 2004, the City received roughly $9 million representing Qwest's interpretation and calculation of payment of the tax and interest on revenues earned from July 1997 through December 2003. This pay- ment represents the last of the large expected past period payments/settlements of the telecommunica- tions tax. After consulting with the City Attorney, accountants and auditors, and based on Qwest's L:\CMO\2004 Council Agendas\M041122\S041122B.doc