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SUMMARY OF VINEYARD AVENUE CORRIDOR INFRASTRUCTURE LOANS Effective May 15, 2009 Loan Loan Amount Previous Current New Balance Payments Payments* Sewer $1,178,625 $0 $217,405 $961,220 Water $7,231,944 $178,316 $1,335,490 3.5,718,138 Total $8,410,569 $178,316 $1,552,895 S6,679,358 *Specific Plan Fees from Callahan, Ihreehand, Hatsushi, and Sarich It should also be noted that staff is currently reviewing water rates which may lead to the establishment of a fourth tier water rate that would be used as the revenue source noted above. The rate study is scheduled for completion in six to eight months. Transfers from the General Fund Since approving a general practice of General Fund transfers in FYI998, the General Fund's contribution has been divided into two components. The first component is an annual ongoing contribution intended to remain somewhat constant through build -out. The goal of this component is to eventually create a stable contribution of approximately $5 million annually until major facility needs have been met. The second General Fund component is a one -time contribution from the General Fund made up of one -time revenue sources dependent on general financial conditions and the status of the Operating Budget. As a result, the amount of this second component has varied over the years. As discussed in previous CIP's, as the new major capital projects are brought on-line, and the City approaches facility build -out, it is anticipated that General Fund contributions will be reduced to cover the cost of operating the new facilities and meeting City operating costs. As discussed previously, due to the completion of major CIP projects over the past few years, the status of current City Council CIP projects, implementation of the planned change in funding focus from capital improvements to facility programming and maintenance, and the overall state of the local, state and national economy, this CIP does not include General Fund transfers in either of the two funded years. The final two years, FY2011 -12 and 2012 -13, include $1.5 million and $2 million respectively for a total amount of $3.5 million. Of this amount, $825,000 is allocated to Streets and the remaining $2,675,000 is placed in the CIPR to be used for City Council priority projects. Ultimately, the ongoing availability of one -time or ongoing General Fund revenue is significantly dependent on the overall state of the economy, the actions of the State related to addressing its budget situation and the amount of one -time funding that becomes available to the General Fund. Staff will review this matter as part of the Mid Term 2010-11 budget and will recommend changes as appropriate to reflect either CIP funding needs, or an improvement or worsening of the economy. Notwithstanding the reduction of General Fund Contributions to the CIP, the CIP is meeting all debt service and maintenance requirements and is funding the most critical projects, with available funding. As a result, this reduction should not be viewed as diminishing or reducing the effectiveness of the CIP. On the contrary, it represents an adherence to the CIP's longstanding conservative approach of not I 7