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component was $1.8 million. However, as new major capital projects are brought on-line (including the Bernal Property project, which was not anticipated at the time the "policy" was developed), it is anticipated that this contribution will be reduced to cover the cost of operating the new facilities. The second component is a contribution of one-time revenues from the General Fund Capital Improvement Reserve. Because this component is made up of one-time revenue sources, it has not been viewed as an ongoing and stable source of revenue to the CIP. In the past, the amount of one time contributions to the CIP has varied significantly ranging from $0 to $4.9 million annually. As a reflection of the uncertainty of this revenue, staff has allocated it to specific one-time projects such as the Veterans Memorial Building Renovation or to reserves such as the Bernal Improvement Reserve or the Civic Center Improvement Reserve that at this time, are not critical in terms of funding construction ready projects. As indicated in the Mid-Term CIP, to reflect the uncertainty of private sector development and state funding impacts, staff is taking a more conservative approach to forecasting CIP revenues. As a result, this CIP does not include one-time General Fund Revenues. The Mid-Term CIP projected up to $2 million would potentially be available for 2005-06. Consistent with previous CIP's, this revenue could become available after the City completes its year-end financial report to determine the availability of any one-time revenues that could be transferred to the CIP. As a result, if it becomes available, it would be added as part of the Mid-Term budget for 2006-07. At this time, it is uncertain whether this funding will be available and future years will be dependent on the overall state of the economy, overall City operating costs and the ongoing impact of State finances. To facilitate this approach in 2005-06, approximately $1.3 million in the Street program beginning balance has been used to fully fund street maintenance projects. Because the beginning balance was not allocated to a specific project, its use does not directly impact any planned project(s). In addition to this adjustment, the amount of funding placed in the Civic Center Site Improvement Reserve and the Bernal Property Improvement Reserve projects have been reduced. As indicated, all reserve projects are subject to change and in fact, their projected growth is subject to a number of factors including funding projects of higher priority, adjustments in available revenues and meeting current project costs that may impact reserve balances. This adjustment will not affect the funding of any specific project planned for these reserves. Regardless of the amount of one-time funding (if any) that may become available in future years, as the City approaches build-out, the amount of available development fee revenue will decline and the operating costs of these facilities will result in increased overall operating costs which will further impact the General Fund's ability to maintain CIP contributions. As a result, continuing to address the demand for new facilities will be challenging without new revenue sources. Further the development of the Bernal Property will require considerable revenues that may not be available from the sources used historically. As a result, staff will work with the Council and the community to address creative and new ways to meet facility needs to assure they are adequately addressed. Ultimately, the ongoing availability of "one-time" 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 2006-07 budget and will recommend changes as appropriate. xiii