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Rental Rates <br />Funding Issues & Options <br />Issues: <br />Should the rental rates £or county buildings (including Courthouse Sq.) be blended in <br />order to spread the cost operations, maintenance and debt service evenly? <br />2. Should the county create a reserve building fund to support unfunded facility needs? <br />3. How would rental rates be modified to support issues 1& 2 above? <br />Discussion: <br />By the yeaz 2000, rental and lease rates for county deparUnents will range from $0.53 - 1.47 /sf <br />These rates do not contain provisions for a building reserve (replacement) fund. Each yeaz the <br />county identifies unfunded faciliry needs such as azchitectural studies, building renovations and <br />system upgrades that must either be delayed for funded by carryover. <br />The most common method in the private sector of funding building reserves is adding the cost to <br />the rental rate. A 2'/z cent surchazge was assessed for several yeazs to fund some of our facility <br />needs. This surcharge, which generated approacimately $100,000 per yeu, was eliminated in <br />1996. <br />There has been much concem about the higher rental rates associated with Courthouse Square. <br />Our reseazch indicates that many counties assess a single (blended) rate to cover the operation of <br />their facilities. Information has been included in this report to show the impact on county funds <br />if a single (blended) rate was used. <br />Work Items: <br />What is a realistic funding goal for the reserve fund7 Melvin Mazk Co. has provided <br />formulas for the annual funding of a building reserve fund. However, these annual <br />assessments are usually created at the time new buildings are occupied which allows for a <br />laree reserve fund tn he created nver time iTsino the Farilirv ManaaPO,Pnr I,~,rloAr a.,A <br />