CAP STAB LETTER — File 191877

CAPITAL STABILIZATION FUND INTRODUCTION As your Board is aware, the City faces significant capital improvement needs. Before you is the FY2012 pay-as-you-go capital funding plan from the City’s Capital Stabilization Fund. A comprehensive Capital Investment Plan will be provided to your Board in September which will include not only the pay-as-you-go projects described here, but also projects planned to be paid by borrowing or other funding mechanisms. CAPITAL STABILIZATION FUND SPENDING STRATEGY This plan focuses solely on those projects to be paid from the Capital Stabilization Fund. This year the Administration was able to appropriate an additional $1,000,000 in free cash to the Capital Stabilization Fund. This appropriation is higher than the $850,000 appropriated to the Capital Stabilization Fund in FY2011. The $1,000,000 appropriation along with the current available fund balance in the Capital Stabilization fund leaves $1,878,026 available for funding pay-as-you-go projects. Additionally, the City expects to receive another $600,000 from Federal Realty Investment Trust (FRIT) for general projects and $100,000 for parks and community facilities. These will be submitted to the Board. When received, these funds will be deposited into the Capital Stabilization Fund. The City is required to keep a threshold balance in the Capital Stabilization Fund to protect its bond rating. This leaves a grand total of $2,578,026 available for funding pay-as-you-go projects. The following projects are proposed to be funded out of monies available in the Capital Stabilization fund. More information can be found on these projects in the following “Individual Project Descriptions” section. Item Dept. Project Cost Private Way Reconstruction DPW $ 50,000 Benches & Barrels DPW $ 25,000 Conway 2nd Rink DPW $ 868,309 Ice Rink Locker Rooms DPW $ 174,000 High School Careers Room DPW/School $ 40,000 Christmas decorations DPW $ 150,000 High School Weight Room DPW/School $ 50,000 High School Repairs DPW/School $ 100,000 DPW Sub-Total $ 1,457,309 Breathing Air Compressor Fire $ 48,500 Toyota Prius Fire Prevention Fire $ 24,700

Capital Stabilization Fund Appropriation Strategy FY2012 City of Somerville, Massachusetts 2 Fire Sub-Total $ 73,200 (8) Ford Taurus Police $ 232,000 (2) Ford Escapes Police $ 48,000 (2) Ford Explorers Police $ 62,000 (1) Ford Van - 14 Passenger Police $ 45,000 (1) License Plate Reader Police $ 25,000 (1) Laptop for LPR Police $ 5,000 (1) Mobile A/V Surveillance Equip. Police $ 20,000 (10) Handheld Portable Radios Police $ 30,000 (6) Mobile Radios for Cruisers Police $ 24,000 (5) Laptops with Language Software Police $ 7,500 Furniture/Computer Equip. Replacement Police $ 10,000 Bullet-proof Vests Police $ 35,000 Police Sub-Total $ 543,500 Zamboni Recreation $ 120,000 (2) 15 Passenger Vans Recreation $ 52,000 Ice rink security system Recreation $ 17,460 Lincoln Park Turf & Rink Design Recreation $ 100,000 Kenny Park Design Recreation $ 25,000 Winter Hill Play Area Design Recreation $ 25,000 Rec Sub-Total $ 339,460 Bike Share Health $ 144,905 Health Sub-Total $ 144,905 Aldermanic Chamber Chairs Aldermen $ 8,000 Committee Room Table and Chairs Aldermen $ 11,600 Aldermen Sub-Total $ 19,600 GRAND TOTAL $ 2,577,974 INDIVIDUAL PROJECT DESCRIPTIONS The Project Description portion of the Capital Improvement Program document organizes individual data sheets for each project by the Mayor’s City-wide goals. Individual project data sheets include: o Project titles provide a brief description of the project. o Site Information: Location map and address (if available) indicating the project’s approximate location within the city. o Description/Justification: Information about the purpose and scope of the project and explanation of why the project is needed.