RES 94042 - Laserfiche WebLink

With the adoption of the last rate adjustment, the City is continuing to phase replacement funding into the rates. Replacement funding is needed to guarantee that we have the money necessary to provide for the ongoing replacement of existing sewer lines, pump stations, etc. It will take about two more years of phasing replacement funding into the rates before we achieve the funding level recommended by the rate consultant. LOWER INCOME HOUSING IN-LIEU TRUST FUND Staff is recommending that interest income projections be increased by $60,000, from $120,000 to $180,000. Through December 1993, $292,000 has been received in fees. No adjustment is being made at this time to the annual projection of $722,000. A further review will be made in the third quarter. The projected ending Fund Balance at June 30, 1994 is now $6.6 million. However, this figure includes $1.7 million in funds that are restricted by the California Housing Finance Agency (CHFA) as security for the loan on Ridge View Commons. Thus, until this restriction is eased, only $4.9 million is available for use, some of which is expected to be needed in later years to subsidize Ridge View Commons. Additionally, staff is evaluating the concept of utilizing this Fund to purchase the Case Avenue site from the City's General Fund. The property is appraised at $2.2 million. If recommended and approved by Council, the proceeds from the land lease would then be pledged to the Lower Income Housing Fund. Over a thirty year period the lease would repay the Lower Income Housing Fund for the purchase price of the land, plus provide the Fund with a revenue stream from interest earnings. Staff believes this is a logical approach, conducting the transactions as if it were a mortgage, with the Lower Income Housing Fund loaning the money, the "mortgage" proceeds paying for the land acquisition, and the lease payments acting as the "mortgage" repayment to the Lower Income Housing Fund. As an alternative, the General Fund could receive the lease payments over thirty years instead of receiving the land sale proceeds upfront. However, the General Fund would then be acting as the "banker" for the project, instead of the Lower Income Housing Fund. This matter will come before the City Council when they review the Case Avenue Project, scheduled for late April or May. RECYCLING AND WASTE MANAGEMENT FUND The City is once again receiving Measure D (Countywide Recycling) funds. The estimate for 1993-94 is $293,000, and was not 'reflected in the originally adopted 1993-94 budget. Therefore, staff is recommending this change at Midyear. However, a portion of this revenue is subject to refund if Pleasanton does not have an approved curbside recycling program in operation by December 16, 1994. To ensure that Pleasanton's program qualifies, some changes to the existing program may be necessary. Staff is currently preparing a plan to implement a curbside collection of yardwaste for tomposting, and a SR 94:100 10