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.