Marcus: Excellent question. I support spending more than we take in this fiscal year for a few reasons. First, as discussed in San Juan, we are asking registrars to pay more this year for additional services. In light of the proposed dues increase, I think it makes sense to dip into existing reserves to reduce the burden. Second, we have a relatively large reserve fund. During the ICANN budget process, we argued that ICANN didn't need a reserve fund that represented 100% of its annual operating expenses. While there are obvious distinctions between our situation and ICANN's situation, it always is good to practice what you preach. In this budget, we are looking at a reserve fund of less than 40% of our annual operating expenses. Third, my hope, as you point out, is that we will receive financial support from ICANN next year. I was very happy to hear Doug Brent state during his public presentation in San Juan that ICANN will work with us in providing greater financial support to the constituencies. Obviously, the biggest expense in this budget is our proposed work with a part-time professional staff person. Our plan is to use this person to make the RC much more effective, pro-active, and efficient. We need someone to assist in our ICANN advocacy efforts -- draft position papers, impact statements, and even public statements. My hope is that the position would assist in getting us out in front of issues and more proactive than we have been with our current group of overburdened volunteers. We want to be sure that we are not looking at the proverbial bus after it has run us over. We discussed at the RC meeting in San Juan and within the Executive Committee various dues structures. The consensus seemed to be that we would increase dues to $750 (apparently the levels they had been a number of years ago), but provide the ability for small registrars with need to seek a reduction to the level of existing dues ($250). With that said, I move that we accept the budget. According to Bob (our honorary parliamentarian), we need three endorsements and then we will have at least a 30 day period of discussion prior to a vote. Thanks. Jon -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of Marcus Faure Sent: Friday, July 13, 2007 4:26 AM To: Margie Milam Cc: registrars@gnso.icann.org Subject: Re: [registrars] Proposed 2007-2008 Registrar Constituency Budget Hi, as the expected result is negative (-16k), do we expect a balanced budget in the 2008-2009 period? Any word from ICANN regarding financial support of the constituency? Marcus

CORE endorses the motion. Ragarding ICANN support, it may be easier to get a free staff person dedicated to work on rc matters than financial support. Just a suggestion. Yours, Marcus

Marcus:

Excellent question. I support spending more than we take in this fiscal year for a few reasons. First, as discussed in San Juan, we are asking registrars to pay more this year for additional services. In light of the proposed dues increase, I think it makes sense to dip into existing reserves to reduce the burden. Second, we have a relatively large reserve fund. During the ICANN budget process, we argued that ICANN didn't need a reserve fund that represented 100% of its annual operating expenses. While there are obvious distinctions between our situation and ICANN's situation, it always is good to practice what you preach. In this budget, we are looking at a reserve fund of less than 40% of our annual operating expenses. Third, my hope, as you point out, is that we will receive financial support from ICANN next year. I was very happy to hear Doug Brent state during his public presentation in San Juan that ICANN will work with us in providing greater financial support to the constituencies.

Obviously, the biggest expense in this budget is our proposed work with a part-time professional staff person. Our plan is to use this person to make the RC much more effective, pro-active, and efficient. We need someone to assist in our ICANN advocacy efforts -- draft position papers, impact statements, and even public statements. My hope is that the position would assist in getting us out in front of issues and more proactive than we have been with our current group of overburdened volunteers. We want to be sure that we are not looking at the proverbial bus after it has run us over.

We discussed at the RC meeting in San Juan and within the Executive Committee various dues structures. The consensus seemed to be that we would increase dues to $750 (apparently the levels they had been a number of years ago), but provide the ability for small registrars with need to seek a reduction to the level of existing dues ($250).

With that said, I move that we accept the budget. According to Bob (our honorary parliamentarian), we need three endorsements and then we will have at least a 30 day period of discussion prior to a vote.

Thanks.

Jon -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of Marcus Faure Sent: Friday, July 13, 2007 4:26 AM To: Margie Milam Cc: registrars@gnso.icann.org Subject: Re: [registrars] Proposed 2007-2008 Registrar Constituency Budget

Hi,

as the expected result is negative (-16k), do we expect a balanced budget in the 2008-2009 period? Any word from ICANN regarding financial support of the constituency?

Marcus

-- Global Village GmbH Tel +49 2855 9651 0 GF Marcus Faure Mehrumer Str. 16 Fax +49 2855 9651 110 Amtsgericht Duisburg HRB9987 D46562 Voerde eMail info@globvill.de Ust-Id DE180295363

Fabulous.com endorses the motion Peter Stevenson Fabulous.com -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of Robert F. Connelly Sent: Monday, July 16, 2007 1:35 AM To: Registrars Constituency Cc: RC Voting Members Subject: Re: [registrars] Proposed 2007-2008 Registrar Constituency Budget At 02:04 PM 7/15/2007 Sunday +0200, Marcus Faure wrote:

CORE endorses the motion.

Dear Member: We need one more endorsement for the motion. Regards, BobC