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3. What sources of funding are available, outside of rate increases? <br /> a. One-time funds <br /> i. Grants -homeland security, environmental, etc. <br /> ii. Energy tax credits <br /> iii. Facility Reserve purchase a 2-acre site for a possible patrol facility <br /> iv. Telecom funds <br /> v. Equipment replacement reserve (but this is mostly for tools, not for major <br /> equipment like overhead crane or hoists) <br /> vi. Resources freed-up when Fleet moves out of current space -but first we <br /> need to know how we/who paid for the existing site (F/R will investigate) <br /> b. On-going funds <br /> i. Lease payments from three private parties <br /> c. Public/private partnership for fueling site, with private sector fuel distributor <br /> 4. What is the range of rate increase that might be needed, after taking into account other <br /> available funds? <br /> a. Example: Fleet revenues are approximately $5 million. <br /> b. A 20-year bond issue will cost about 1/10 of the total bond amount in annual <br /> principal and interest payments - $10 million bond issue will cost roughly $1 <br /> million per year. <br /> c. Therefore, a $10 million bond issue will require about a 20% increase in rates, <br /> absent any other funding source. <br /> d. The GF/NGF split is in the 50/50 range, so a $10 million bond issue would <br /> require $500,000 in additional GF contribution <br /> 5. Possibility of co-location with other agencies <br /> a. Most likely opportunity is for fueling site; less likely that others will want to have <br /> joint maintenance facility <br /> b. LTD for their SMS <br /> c. EWEB has expressed interest in a fueling site <br /> d. Lane County - both PW and Sheriff -more likely that sheriff might be interested <br /> e. 4J for their busses <br /> f. Process/timeline for exploring this possibility <br /> <br /> 6. What are the most likely financing vehicles <br /> a. Interfund loan <br /> i. Maximum of 5 years for capital project <br /> ii. Source -not the usual source (Fleet); could we use PERS/OPEB reserve? <br /> b. Full Faith & Credit Obligations backed by the General Fund <br /> i. 20-year maximum repayment schedule under our debt policies <br /> ii. Issuance of debt for this purpose will be included in our calculation of our <br /> policy limit of debt to real market value 1% <br /> iii. Council action is required to authorize debt financing <br /> iv. Voter approval is not needed, and the council action is not subject to <br /> referral <br /> c. Could be a combination of both, with interfund loan used during construction <br /> Page 2 <br /> <br />