Item C: Use of Facility Reserve-Next Steps on Police Patrol Facility

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ATTACHMENT C FACILITY RESERVE HISTORY The Facility Reserve was created in FY01 as a way for the organization to save for the City Hall Complex master plan projects. The intention was that the organization could reduce the amount asked from voters to pay for the City Hall projects by saving money in the Facility Reserve. Overall, the amount in the Facility Reserve in FY10 is estimated to be $23 million, with $1 million of that total dedicated towards the second year of pothole patching. Below are brief descriptions of some of the major revenues and expenditures transactions that have occurred in the Facility Reserve since its creation in FY01. Major Deposits into the Facility Reserve Excess EWEB Wholesale CILT: During FY01, $7.3 million was earned from one-time CILT payments on wholesale electric sales to California. These funds were deposited into the Facility Reserve during FY01and FY02. Settlement of Telecommunications Lawsuits: In FY05, the City deposited $15.4 million into the Facility Reserve from the General Fund and the Telecommunications Fund. The revenues were a result of additional licenses and permits from Qwest and other telecom providers. Assessment Bond Fund Residual Assets: In FY03, council reviewed the residual assets contained in the assessment bond fund reserves and determined how to use the excess funds. At that time, $2.3 million of the residual assets were deposited into the Facility Reserve to be used for City Hall complex master plan projects. Capitalization Component of Facilities Charge: During FY02, a new component was added to the Facilities Charge for certain downtown facilities. This charge was developed as a way to systematically set aside funds for a new City Hall. Both General Fund and Non-General Fund services have contributed to the Facility Reserve through Facility Capitalization Charges. In FY09, the charge for all funds is about $900,000. Other Miscellaneous Revenues: The City deposited other one-time funds into the Facility Reserve from time to time. Examples are proceeds from sale of the Olive Street parking lot ($350,000), the library asbestos settlement ($227,000), and return of excess budget for Library construction project ($100,000). Major Expenditures from the Facility Reserve Roosevelt Police Building: In FY02 and FY03, $3.9 million was transferred from the Facility Reserve to pay for construction of the Forensic Evidence Unit/Property Control Unit facility at Roosevelt, which allowed police to discontinue using the basement space at City Hall as regular working areas.