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In projecting development related fees, staff has taken a conservative approach so that the CIP includes revenue projections only from projects that have been approved by the City Council and have received Growth Management approval. However, if development does not occur as projected, staff will make the necessary adjustments as part of the Mid-Term CIP without affecting current year funding. The number of residential units and commercial square footage included as revenue generating projects is as follows: RESIDENTIAL DEVELOPMENTS AND COMMERCIAL SQUARE FOOTAGE USED FOR REVENUE PROJECTIONS RESIDENTIAL COMMERCIAL Calendar Year Number of Units Calendar Year Square Footage 2007 118 2007 252,527 2008 71 2008 89,827 2009 39 2009 167,400 2010 32 2010 0 TOTAL 260 TOTAL 509,754 Because the City does not control the timeline for these developments, the unit projections are staff's best estimate based on recent development activity and discussions with the developers. Should projects scheduled for calendar year 2007 not occur, the unit totals and corresponding revenue will be reduced. Should new projects develop, the unit totals and corresponding revenue may be adjusted and/or increased. If this should happen, as indicated above, an adjustment will be made in the Mid-Term CIP without affecting projects funded in 2007-08. In general, development projections must be viewed as tentative since even approved projects may be affected by the economy and the health of the housing and construction industry that is generally beyond the City's control. Because additional development related revenue could become available to the CIP if new development is approved, it is difficult to estimate the total amount of development revenue that could be available in this CIP. However, as the City approaches build-out, development related revenue as a percentage of total available CIP revenues should continue to decrease. Nevertheless, development related revenue continues to play an important role in this CIP. The trend in development fees is outlined in the graph below.