Facilities: Funds

Fund 124003-ICP-Institute for Sustainable Practice:  This fund houses revenues from the sales of recycled materials and surplus property.  The revenue within this fund is used as the materials and supplies budget for the college’s recycling operation.  With these funds, the Facilities Management and Planning department (FMP) pays for things like recycling collection containers and recycling forklift repairs.  The ending fund balance from each year carries forward into the new year.  FMP may save money within the ICP fund over multiple years for larger purchases like a new forklift. FMP follows the college’s Equipment Disposal Procedure to determine the order of preference for the disposal of surplus property and for the distribution of revenues between departments from money received from the disposal of surplus property.

Fund 217000-Motor Pool:  Revenue from Motor Pool vehicle rentals is deposited into this fund.  FMP uses this fund to pay for maintenance, repairs, and fuel for Motor Pool.  FMP also uses this fund to purchase new vehicles with the goal of replacing vehicles at 100,000 miles.  The ending fund balance from each year carries forward into the new year.  FMP saves for vehicle replacements.  Up to 0.3 FTE will be paid from this fund depending on the stability of the fund.  Whether to keep the 0.3 FTE in the fund or move it to the general fund will be considered each January. 

Fund 219000-Green Team: Originally created in FY06 as an Energy Carry Over Reinvestment Fund with seed capital from the FY05 utility ending fund balance. The fund was restructured in 2016 to a Green Revolving Fund model. 

• Definition:  A Green Revolving Fund (GRF) is an internal fund that provides financing to parties within an organization to implement energy efficiency, renewable energy, and other sustainability projects that generate cost savings. These savings are tracked and used to replenish the fund for the next round of green investments, thus establishing a sustainable funding cycle while cutting operating costs and reducing environmental impact. 
• Project Approval:  Any employee or student may submit a proposal for a resource conservation project.  A Project Approval Team made up of FMP employees and Sustainability Committee members reviews proposals quarterly.  Proposals will be approved, placed on hold for a future year, or not approved.
• Project Criteria:  The Project Approval Team will typically use the following criteria to determine whether to approve a project.
  • The project reduces resource use (i.e. energy, water, garbage) and/or mitigates greenhouse gas emissions.
  • The project should be able to pay for itself within the life of the project plus 20%.  For example, for a lighting project to be approved, the team needs to look at the cost of the project, the estimated savings associated with the project and the estimated lifespan of the lighting.  If the project costs $20,000 and the annual estimated savings is $2,000, then the estimated lifespan of the lighting will need to be at least 12 years in order to be a viable project.
  • Potential for community engagement and collaboration.
  • Educational benefits.
• Project Implementation:  Projects are usually implemented by the FMP team.
• Payback Mechanics:  Projects will repay the estimated savings to the fund quarterly each fiscal year. The payment period will be based on the equipment or initiative life expectancy. The repayment amount is twenty percent above the project cost. The amount is set above the total loan value in order to cover the fund’s operating expenses and in order to grow the fund over time without additional capital infusions.
  
  Here is an example of a proposed project and how the payback mechanics would work:

1. Initial GRF Fund Balance:  $20,000
2. Project Description:  Retrofit lighting from fluorescent to LED.
3. Project Cost:  $20,000
4. Predicted Energy Savings Per Year:  $2,000
5. Payback Mechanics:  After project completion, transfers of $500 per quarter are made from the utility budget to the GRF FOAP for 12 years ($20,000 plus 20% = $24,000; $24,000 / $2000 = 12 years.
6. Final GRF Fund Balance:  $24,000

• Method of Determining Savings:  LCC uses front-end savings estimates based on engineering analysis confirmed with measured savings where feasible. This method relies on product specifications and assumed usage patterns to predict future performance..

Fund 411000-Facilities Planning Fund: Interest from non-general obligation bond fund 4 accounts is deposited into this fund.  The ending fund balance from each year carries forward into the new year. FMP uses this money for planning expenses such as facilities conditions assessments and space planning assessments.  FMP may carry these funds forward for several years to build up a balance large enough to fund a larger planning effort.  FMP will maintain a five-year plan for the use of these funds.

Fund 412250-Facilities Reinvestment Fund: 25% of all money collected from rentals and leases are to be deposited into this fund.  This includes funds received from the Titan Store operator, food service operators, and leases and rentals of space.  This money goes towards facilities operations and maintenance expenses in spaces from which funds are received.  The ending fund balance from each year carries forward into the new year.  FMP may carry these funds forward for several years to build up a large enough fund balance to do a large project.  Larger projects may include things like replacing the lighting at the soccer field or replacing the seating in the Performance Hall.  FMP will maintain a five-year plan for the use of these funds.

Fund 415600-Group Pass and Parking:  Lane’s Transportation fee is $27/credit student per term.  The fee amount is reviewed annually during the mandatory fee review period.  Revenues collected from this fee are deposited into Fund 926600.  $18.90 of that fee goes to paying for the group bus pass from Lane Transit District.  An additional portion of the money goes toward paying for parking of students attending classes at the Mary Spilde Downtown Center.  Most of the remaining funds (typically $150,000 per year) are transferred to Fund 415600 for the purpose of maintaining parking lots.  The ending fund balance in Fund 415600 from each year carries forward into the new year.  FMP may carry these funds forward for several years to build up a large enough fund balance to do a large project.  FMP will maintain a five-year plan for the use of these funds.  If the Transportation Fund (926600) goes into a negative status due to low enrollment, the transfer of funds from 926600 to 415600 will be suspended or reduced for the number of years required to balance fund 926600.  When enrollment increases and there are a surplus of funds in 926600 above what is needed to pay for the group bus pass, student parking downtown and the $150,000 transfer per year for Parking Lot Maintenance, the Facilities Director may request a transfer of larger than $150,000 from fund 926600 to fund 415600 so that additional parking lot maintenance can be conducted.  Note that $150,000 is less than half of the money needed to maintain LCC parking lots and roads annually.  

Fund 418000-Major Maintenance:  LCC budgets for Major Maintenance each year through the annual budgeting process.  The ending fund balance in Fund 418000 from each year carries forward into the new year.  FMP may carry these funds forward for several years to build up a large enough fund balance to do a large project.  FMP will maintain a five-year plan for the use of these funds.  Planning for a large project usually takes 6 months or longer and most large projects can only be completed in the summer.  Because FMP does not know what the budget in Fund 418000 will be until June of the preceding fiscal year, FMP uses funds carried forward from the previous year to complete current year projects.  See example below.  The budget office ensures that there is budget authority to spend the allocated budget and the carryforward each year.

Example:  The ending fund balance in Fund 418000 at the end of FY24 is $1,000,000.  The college adopts a budget of $500,000 for major maintenance in FY25.  The FY25 budget is not officially approved until June 2024.  FY25 projects must be completed during the window of July-September 2024.  FMP did not have certainty about what the FY25 budget would be until June 2024 (one month prior to project start).  Since large projects take a minimum of 6 months to plan, FMP spent October 2023 through April 2024 doing project design, bidding and board approval for the project that will take place July-September 2024.  FY25 projects are completed over the window of July-September 2024 using the budget of $1,000,000 that is carried forward from FY24.  In October 2024, planning will start for projects to be completed in FY26.  The $500,000 that was budgeted in FY25 will be the ending fund balance at the end of FY25.  FY26 projects will cost approximately $500,000 and will be done using the ending fund balance from FY25. 

Fund 926600-Transportation Fund:  Lane’s Transportation fee is $27/credit student per term.  Revenues collected from this fee are deposited into Fund 926600.  $18.90 of that fee goes to paying for the group bus pass from Lane Transit District.  Additional small portions of the money goes toward paying for parking of students attending classes at the Mary Spilde Downtown Center and for Lane’s Bike Loan program called, “Bike Lane.”  Remaining funds (typically $150,000 per year) are transferred to Fund 415600 for the purpose of maintaining parking lots.  The ending fund balance in Fund 926600 from each year carries forward into the new year.  FMP will maintain a five-year plan for the use of these funds.  If the Transportation Fund (926600) goes into a negative status due to low enrollment, the transfer of funds from 926600 to 415600 will be suspended or reduced for the number of years required to balance fund 926600.  When enrollment increases and there are a surplus of funds in 926600 above what is needed to pay for the group bus pass, student parking downtown and the $150,000 transfer per year for Parking Lot Maintenance, the Facilities Director may request a transfer of larger than $150,000 from fund 926600 to fund 415600 so that additional parking lot maintenance can be conducted.  Note that $150,000 is less than half of the money needed to maintain LCC parking lots and roads annually.