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Page 4 Memo to Mayor and Ciry Councilmembers September 19, 2006 water consumers to, in part, offset the cost of water facilities improvements made in the Vineyard Corridor. As indicated on this spreadsheet, assuming cost containment and receipt of all projected revenues, with the exception of $655,000 from future water rates from lazge residential consumers, or other source, there is adequate revenue to cover the cost of future Vineyard infrastructure. However, in the event revenues aze less than anticipated and/or costs increase, funding from other sources may be necessary to complete the project. Spreadsheet #2 -Vineyard Avenue Corridor Specific Plan Water and Sewer Infrastructure Funding. The primary purpose of this spreadsheet is to provide a summary of financing for the $8,531,206 future water improvements mentioned in the August 15 staff report, to provide information on funding for the water improvements recommended to be completed at this time in the same report, and to outline the current and anticipated loans that will be necessazy to reimburse the City for the design and construction of these Specific Plan improvements. A summary of each section is as follows: Section 1 - Provides a summary of short term financing of all future water improvements. Based on the information provided in Spreadsheet #1, all funding except $1,300,000, will come from development within the Vineyard Corridor. However, due to the timing of the receipt of this revenue, it will be necessary for the City to loan $3,048,138 (New Loan #3) from its C[P Water Fund to cover the cost of these improvements. The actual loan amount is dependent on the amount of additional funding received prior to issuing bids for future projects. As a result, the more revenue received, the smaller the loan amount will need to be. Section 2 -This Section provides a summary of funding for the water improvements included in the August 15 staff report. As background, in July 2003, the Council approved the C]P project Vineyard Corridor Infrastructure Improvements: Water Tanl~ Supply Line and Pump Station (011023) in the amount of $3,885,000 for Vineyard Corridor water improvements. This project assumed that all funding except $645,000 would be in the form of a loan to the Vineyard Corridor. The $645,000 was viewed as City funding to offset water improvements that enhanced overall City water facilities. As a result, this Section includes the $645,000 plus the amount of funding remaining in this CIP project estimated at $2,855,000. It also includes $1,100,000 from available Vineyard Corridor Development Fees. This funding is consistent with the August IS staff report. As presented, wmpletion of this work will not require a new loan or an additional allocation of water fees and, as a result, no new loan was included as part of staffs recommendation. Note that this CIP project also indicated that an additional Water Fund contribution of $105,000 was a possibility based on a final fmancing plan. Staffwill revaluate this at the time it presents information regazding future Specific Plan water improvements. Section 3 -This Section details the existing and potential new loan for completion of water and sewer improvements. These can be summarized as follows: