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�� DRAFTforRosevilleCityCouncil-- <br />--'15t Reading, June 13,2005 <br />Addressing Annual Capitalization Cost Target <br />• Projected Annual Capitalizatior�JDepareciatio� Costs: $150,000 <br />� Determination: <br />• Asset value: $3 million <br />Asset life: 20 years <br />Straight-line Depreciation $ 3 million/20 years =$150,OOO/year <br />State Bonding Bill 2006 <br />Q-$ � 54,000+ (averaged annually over the life of the Oval) <br />Bonding is typically only available to provide capital for new construction or major facility repairs. This <br />should not be looked at as an annual occurrence, but rather as a"lump sum" which could possibly be <br />sought to improve or replace major portions of the facility. Bonding would be a long-term project, and <br />requires City Council involvement to begin groundwork now. <br />Sales Tax <br />0-$150,040+ <br />Recommend pursuing Bonding Bill first. At this point it would be difficult to anticipate the legislature <br />permitting a local sales tax specifically to fund the Skating Center, however, it is possible that climate <br />may change in the future. <br />CorporatelPersanal Donation <br />0-$100,000 <br />Friends of Oval Foundation to pursue philanthropic foundations immediately, <br />Friends of the Oval Foundation <br />0-$50,000 <br />Fund-raising pursuits other than personal and corporate donations. <br />Charitable Gambling Foundation <br />One half of proceeds currently funding the endowment would be redirected to fund an alternate <br />endowment dedicated to the Oval. This would be a finite commitment, with a sunset provision forcing a <br />review and possible re-authorization after 10 years. The endowment would be estimated to provide a <br />minimum of $15,000 per year when fully funded. In addition, other proceeds directed toward supporting <br />the Oval could be added to this endowment, thereby increasing its annual earnings. <br />Page 23 of 29 <br />