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of Hacienda Business Park. In addition, a new Stoneridge Mall co-owner brings the potential for expanding operations there with more retail space. However, Pleasanton will always be subjected to factors outside its control, such as the economy, State Budget impacts, and potential future restructuring of local revenues. Since 1991-92, the City has lost $76.5 million in revenue combined with increased costs for added responsibilities, as a result of statewide property tax shifts initiated by the State during the recession of the mid 1990s. Included in the above is the latest round of State Budget impacts that started in 2003-04 and extend at least through 2005-06. These include $1.1 million in Vehicle License Fees in 2003-04 ("VLF Gap Loan"); $1.9 million in additional property tax shifts in 2004-05 ("ERAF III"); and an additional $2 million of ERAF III funds in 2005-06. However, the State is scheduled to pay back the VLF Gap Loan in 2006-07, as required in Proposition 1A adopted by the voters in November 2004. In addition to the sluggish economic recovery, State budget deficit, and planning for General Plan buildout, increases in personnel costs add to the list of items that will impact the City's long term financial future. There are three factors that have driven personnel costs upwards over the last few years. These factors are: workers' compensation, medical premiums, and the City's required contribution rates to the State's Public Employees Retirement System (PERS). All three factors have grown at rates higher than inflation. As the City concerns itself with fiscal sustainability for the long term, personnel costs like all other costs will have to stay in line with revenue growth to make the equation work. But there is much to be optimistic about. While mixed, there are signs of an improving economy, and the City is positioned well to capitalize on it. The City has an opportunity in the 300 acre Bernal property to provide an incredible amenity for the community and future generations. Long desired plans to renovate the Veterans Memorial Building, convert the historic downtown fire station into an arts center, and continued revitalization of our downtown are all moving toward fruition. In addition, the much anticipated Callippe Preserve Golf Course and Open Space is scheduled to come on line later this calendar year. The City's long-term planning has continued for years to be a key factor in its financial strength. While the City has been doing long term fiscal modeling for years in many forms, for the first time, a General Fund five-year projection model is included in the Budget Plan (in Appendix E). One of the City Council's goals for the coming year is to develop a short and long-term analysis to ensure financial planning remains consistent with expenditure and revenue projections, and this 5-year projection model is one of the first steps in that process. In addition, efforts are under way as part of the General Plan update process, to develop a strong and proactive economic development attraction and retention program, a component which the City Council has recognized in its Shared Vision as vital to the City's continued fiscal health. b-7