- Report Published -
|Progress Report: Real Estate Services|
|Department of General Services|
|Appropriation Act - Item 71 (Special Session I, 2006)|
|DRES' role as "real estate service provider" to the agencies and institutions of the Commonwealth is dependent on development of a sustainable funding source. One option is development of an internal service fund that will fullv support the Division's ongoing operations. Another option is full general fund support, and a third option is a combination of both general fund and internal service fund. In any case, the funding must consider the broad range of services provided by DRES and the support provided by DGS (such as administration of lease payments by our fiscal office).|
The model we are currently pursuing is an expansion of an existing internal service fund that has been in place for several years to support sale of surplus real property. To that end, we have been engaged in evaluating mechanisms to create and maintain the fund. Consideration has been given to: adding a percentage charge to rental paid for privately owned facilities leased by DGS on behalf of agencies; requiring payment of a service charge when processing utility easements; charging percentage fees for acquisitions and sales; and, charging fees based solely on time invested by DRES on the various real estate transactions we handle.
Initial outlines of proposed billing models and revenue formulas are under review within the Department of General Services. It is anticipated that the appropriate internal service fund model will be presented to The Joint Legislative Audit and Review Commission early in 2007.