20A - Laserfiche WebLink

development in the area, the risk is most likely related to the $688,000 projected to come from existing development. 2) Repayment assumes $655,000 from a potential water rate adjustment to oversize the utility system as indicated in Attachment 2. The need for over-sizing the water facilities is a direct result of existing residential water customers consuming copious amounts of water. There are several ways for the Council to replenish these monies back to the Water Fund. While staff is currently analyzing options for reflecting this increased use, three options are available as follows, Option 1: implement a fourth tier water rate in the City's current water rate schedule residential water consumers who use a significant amount of water. A fourth tier water rate would include the extra cost of expanding the water system to accommodate these users and could have the beneficial effect of encouraging water conservation; Option 2: increase the residential water connection fee to reflect the increase in the City's water system assets; or Option 3: increase the replacemenbimprovement accrual portion of the water rates to pay for these improvements to the City's water system. At this time, staff anticipates pursuing Option 1, which is subject to Council approval. However, all options will be presented as part of the Water Rate Study to be presented tb Council later this year. 3) The repayment of $2,429,569 of the $3,991,944 Loan #3 will come from reimbursements due to the City. As indicated in Attachment 1/Sheet One, Vineyard Financing, staff assumes receipt of a total of $4,758,494 from reimbursements due the City. Of this amount, a major portion is anticipated from Signature Properties as part of the Vineyard Avenue roadway improvements. Because the Signature Properties reimbursement is under discussion, receipt of all of these funds is not assured. Staff anticipates reimbursement will occur over time consistent with the pace of development and resolution of the reimbursements detailed above. However, should there be significant changes to revenue sources, staff will provide alternative sources for reimbursement. While the Council has previously expressed concern about the estimated cost of constructing improvements, the awarding of the contracts included in staff report item 25(B) complete the City's major utility infrastructure requirements and as a result, no additional significant costs are anticipated. Staff will finalize the loans, loan terms, and source of repayment as part of the FY2007 Capital Improvement Program. FINANCIAL IMPACT The financial impact of the Updated Financing Plan is detailed above and in Attachments 1 and 2. Staff anticipates the next steps in this funding process will be: Incorporating the three loans detailed above into the FY2007-08 Capital Improvement Program Page 5