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and then increase 3.4% following year as a result of the rate increases. Sewer Fund revenue projections are up slightly due to CPI increases and expenses will increase as the result of DSRSD regional pass through fees. Golf Course Fund revenues and expenses are expected to decrease in FY 2015-16 and then increase again in FY 2016-17, and the fund remains on track to continue its annual transfer of$312,000 to the General Fund to repay its outstanding loan. Ms. Olson stated that staff will return on June 16, 2015 for adoption of the budget as well as the allocation of $12.5 million from the Retiree Medical Reserve and $1.7 million from the FY 2014-15 year end surplus to prefund the city's outstanding CaIPERS and OPEB liabilities. Councilmember Pentin asked and Mr. Fialho confirmed that staff will have an opportunity to ask additional questions at the next meeting. Councilmember Narum said she supports the proposed use of reserves to pay down the unfunded liability. Assistant City Manager Bocian presented the Four Year Capital Improvement Program for Fiscal Years 2015-16 through 2018-19. He noted that the first 2 years of the program are fully funded while the final 2 are for planning purposes and an action by the Council to approve the program will appropriate these funds to the specific projects identified in the OP. The upcoming CIP recommends a total of 72 projects for funding, with an estimated financial resource of about$106 million over the 4 year period versus $71 million in expenditures. The CIP budget begins with an opening balance of$33 million from the 2014-15 Mid-Year Budget, with this amount being spread across a number of funds that are earmarked for specific projects. Vice Mayor Brown asked if any portion of the Water CIP's starting fund balance of $11 million is earmarked for recycled water. Mr. Bocian said "no,"with exception of the project design. Mr. Fialho added that once the money for the project is received from the state it will be officially appropriated to the CIP. Mr. Bocian reviewed the anticipated financial resources, which total almost $83 million for the first 2 years of the program. Major sources include $9 million from the General Fund, versus $1.3 million per year in prior years, as well as a significant increase in grants related to bridge and roadway repairs. Ongoing Streets revenues reflect both Measure B and Measure BB funds. He briefly discussed projected development fee revenues, noting that only those fees for fully entitled projects are included in the CIP. He also noted a slight decrease in development fee revenues over what was projected at mid-term because a fair amount of development projected for FY 2015- 16 actually came in this fiscal year. He briefly reviewed an overall breakdown of projected expenditures by category. He highlighted some of the more notable projects and explained that staff looks closely at the City Council priorities in making a determination on which projects to fund. Some of the major projects included in this CIP include the Bernal Community Park Master Plan, the off-leash dog park, tree plantings at the Marilyn Murphy Kane Trail, enhancements to downtown Wi-Fi, Lion's Wayside Delucchi Park, advanced water metering and an increase in the Old Stanley Road Resurfacing Project. The$500,000 increase in the latter will come largely from outside sources such as PG&E undergrounding funds. Other notable projects include increased sound wall repairs throughout the city, creation of a Recycled Water Reserve, initiation of the Pioneer Cemetery improvements, annual streets resurfacing projects including Bernal Avenue from Foothill Road to Valley Avenue, a downtown parking feasibility study, intersection improvements at Hopyard and Owens, Black Avenue Traffic Calming Phase 2, traffic signals at Amador High School and the addition of 2 tennis courts at Pleasanton Tennis and Community Park. He noted that Bernal Community Park Phase 2 is not included in this CIP but assured the Council that the project is fully funded. Mr. Bocian reviewed several of the various CIP reserves. He discussed CIPR, which is a general capital reserve funded primarily through General Fund and public facilities fee revenues that the Council can use to approve projects throughout the year. The CIPR opens with a reserve fund balance of approximately $1.6 million and is projected to increase by $14 million over the next 4 years. As these monies come in over the next several years, staff and the Council will be able to discuss how to program it to help address any of the projects not included in this CIP. He discussed the Civic Center Project Reserve, which has a fund balance of$1.9 million. He explained that task force level work is about to begin on the project and staff does not anticipate any additional funding City Council Minutes Page 12 of 15 June 2, 2015