RES 94083 - Laserfiche WebLink

To reflect the establishment of the water and sewer replacement funds, the Water and Sewer Programs are divided into expansion and replacement and improvement projects. Expansion projects are those funded by connection fees while replacements are funded by replacement revenue. These funds are not transferrable between each other. The water and sewer replacement and improvement accruals, which are revenue transferred from the Water and Sewer Maintenance Funds to cover the cost of replacement and improvement projects are estimated to be $6,626,000 and $2,435,000 respectively over the term of this program. In addition to the above, the Sewer program includes two loans from the Sewer Expansion Fund to the Sewer Replacement and Improvement Fund. The fun loan is proposed for FY 1994 /95 in the amount of $1,300,000, and will be used to finance the East Amador Sewer Line project which is scheduled to begin in the same year. The second loan will be in the amount of $400,000 and will be used to pay for all but $37,500 of the Vineyard Avenue/Arroyo Del Valle Addition project which will take place from FY 1996 /97 through FY 1997/98. The $32,500 not financed by the loan will come from available Replacement and Improvement accrual revenue. To track repayment of these loans, individual projects have been established covering loan repayment for each of the projects. Annual loan repayments for the East Amador project will be $175,000 for a period of 10 years. For the Vineyard Avenue project, annual loan payments will be $75,000 for a period of 5 years. The interest on the loan payments will be on a variable basis consistent with average investment rates offered by the Local Agency Investment Fund (LAIF). Staff feels this interest rate is appropriate since there are no Expansion projects which will require the revenue that is recommended to be loaned during the repayment period. As a result, the revenue, if not loaned, would be earning comparable LAIF interest rates as part of the City's ongoing investment practices. The loans axe necessary due to insufficient revenue in the Sewer Replacement and Improvement Fund. Transfers from the General Fund The program includes a net transfer of approximately $4,894,500 from the General Fund during FY 1994/95 of the program. A total of $9,900,500 is estimated for all five years of the program. These funds will be used to pay for a variety of projects, including the replacement of equipment and debt service payments, for existing and proposed facilities which are not eligible for development fees. A distribution of General Fund contributions over the five years of the program is as follows. GENERAL FUND CONTRIBUTIONS 1994/95 1995/96 1996/97 1997/98 1998/99 TOTAL 54,894,000 $1.282,500 51,250,500 51,241,500 51,231,500 59,900,500 Included in the General Fund transfer totals, is revenue derived from two specific one-time sources. The lust source is proceeds from the sale of 7.4 acres of City owned land located on Case Avenue which will be ground leased to Case Avenue Associates for the purpose of constructing a 146 unit mixed income apartment complex. A total of $2,200,000 is estimated from this source. Proceeds from this vii