Resolution No:

Exhibit I

FY 2003-04 Beginning Fund Balance

Strategic Use Proposal

Total Amount available:            $11,474,692

Economic Development Package

A.  Pay back the line-of-credit used for schools support in FY 2002-03. The Line of Credit is backed by the Business License Fee surcharge.

▪  Estimated amount of pay off:          $5,400,000

▪  Original estimate of FY 2004-05 surcharge:      0.76 %

▪  Estimated surcharge after pay back of LoC:      0.40%

B.  Buy down the future year BLF surcharge, currently set at $6.0 million per year for 3 years, totaling $18.0 million.

▪  Total estimated reduction over 3 years:      $5,100,000

▪  Estimated reduction per year:          $1,700,000

▪  Estimated rate for FY 2004-05 thru FY 2006-07:    0.30%

C.  Allocate excess program revenues to bureau according to the City’s existing Comprehensive Financial Management Policy.

▪  Police  (50% of the excess)          ($803,991)

▪  Fire  (50% of the excess)          ($115,056)