[ALAC] ALAC Statement on Reserve Fund

Judith Hellerstein judith at jhellerstein.com
Tue Nov 28 20:23:17 UTC 2017


Hi Alan and Sebastien,

Thank you for posting this comment and I look forward to the discussion.  I too 
agree that the ALAC needs to strongly support having an adequate reserve fund, 
however, I think we should identify more than 2 sources for funds as the Auction 
proceeds is a one time possibility and the problems with the reserves need 
something that is a more concrete and longer term option.  I would like to see 
more suggestions for sources of funding.  I would also prefer that we switch 
around the order of the sources of possible funds to put Auction Proceeds as the 
last item and a levy on any future new GTLDs as the first item on the list.  
Also I was a bit confused by your statement in that Auction Proceeds is the 
surplus from the last round of gtlds but in this sentence it looks to be a 
different item.

Best,

Judith

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On 11/28/2017 2:26 PM, Alan Greenberg wrote:
> See https://community.icann.org/pages/viewpage.action?pageId=71602968.
>
> Sebastien identified a number of important issues related to the reserve fund, 
> following discussion with him, I have drafted the following short statement 
> (also posted to the Wiki). As the PC closes on Thursday, and I believe it is 
> essential that we make a strong statement, I would like to discuss this on the 
> ALAC call in a few hours.
>
> Alan
>
> ----------------
>
> The ALAC strongly supports having the Reserve Fund at the level of 12 months 
> expenses, and higher if there is a practical way of achieving that without 
> unduly impacting ICANN's ability to provide necessary services, ensure the 
> current and ongoing security, stability and resiliency of the DNS, and 
> adequately support its ACs and SOs.
>
> Since the Reserve Fund level is clearly tightly coupled to the level of ICANN 
> operational expenses, any discussion of the reserve should have included a 
> recent history and projection of ICANN operational expenses along with the 
> employee/contractor levels and the Reserve Fund levels over the same period.
>
> At whatever level the Reserve Fund target is set, ICANN must publish a plan on 
> how and when this will be achieved. Given that the proposed target level(s) 
> are significantly above the current Reserve Fund level, and it is unrealistic 
> to believe that we will sustain or exceed this year's return-to-reserve of 
> $5m, ICANN should expeditiously investigate alternative methods of building 
> the reserve to ensure ICANN's future stability. Sources such as the Auction 
> Proceeds, the surplus from the last round of new gTLD, or a levy on any future 
> new gTLD fees should be considered.
>
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