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the importance of the school district to the community, staff believes it is an appropriate use of <br />funds because the City fully expects to be repaid back with interest over the next ten years. <br /> <br />Councilmember McGovern confirmed with the City Manager that the $1.2 million could be going <br />toward the Lions Wayside Park and helping to improve it for the Fire House Arts Theater. Many <br />people in the community have asked the City to step up and help the school district, recognizing <br />this is the reason many families moved to Pleasanton. She questioned if the school district has the <br />choice in paying back within the 10 year payback if they receive funding through school impact fees <br />in the 10 year period, or would they utilize the funds to do capital improvement projects. <br /> <br />Ms. Wagner said at the current time, they do not; the agreement allows for amendments. Each time <br />the school receives impact fees and they have outstanding advances, they are to pay the City first <br />through a promissory note. However, the exception to this is that these monies are also obligated to <br />pay lease payments on some portables, so this has been carved out and is approximately <br />$260,000. Therefore, there should be no reason to think that the City will not be fully repaid soon <br />th <br />after the 4 year. <br /> <br />Mayor Hosterman opened the item for public comment. <br /> <br />Kay Ayala presented copies of the cash flow sheets and said the question is whether to loan <br />taxpayer money to another agency. She outlined the Districts four sources of revenue and said <br />funding history is one of fluctuation, but the constant is COP’s which were approved in addition to <br />property taxes imposed by Measures A and B. She did not believe this was good financial <br />planning, and if the money is lent, taxpayers should see some benefit from it in the future, she <br />suggested that it not be approved tonight and asked to identify how much money could be saved by <br />the City and School District combining their corporation yards. <br /> <br />Mayor Hosterman closed public comment, and said she believed there was a value to aid and <br />assist the school district which benefits the community and its school children. <br /> <br />Councilmember Thorne said he has struggled with the issue as a citizen and councilmember, noted <br />that the District has made its decision by an elected body on a balanced budget, with the exception <br />of the debt service payment, and the controversy on how the district has managed the issue of <br />whether the parcel tax is needed, and he believes one of the Council’s first goals is to preserve the <br />high quality of education. He encouraged people who do not believe the crisis has been managed <br />properly to work with the District and its Board to affect improvements. <br /> <br />Vice Mayor Cook-Kallio said she hears that people do not understand why the School District did <br />not save funds for this, and a lot has to do with how they must budget as opposed to the way cities <br />budget. She said the City staff has been proactive in putting away funds, started talking about the <br />downturn about 18 months ago in the event it would happen, and schools need to spend the money <br />that comes in with the exception of categorical funds, and many funds Ms. Ayala mentioned are <br />dedicated to certain things. She said children are our future, people can argue about how money <br />was spent by the District, but the fact that there is an 85% turnout during an election is a fact that <br />education goes on in the City. She said many of her friends are buying in Pleasanton to live in town <br />so their children can attend the schools in town. She felt it would be short-sighted of the Council to <br />not help the District solve a problem which is made at the State level, acknowledged the many <br />constituents who support the City’s help, and the City should put pressure on the State to stop <br />using education as a pot of money when they need it. <br /> <br />Councilmember McGovern said she served on the School Board for almost 11 years and she was <br />there when strategic planning began and they decided they wanted their schools to excel, and they <br /> <br />City Council Minutes Page 4 of 20 April 21, 2009 <br /> <br /> <br />