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previously approved interfund water and sewer CIP transfers to address a range of new expansion projects, the Financing Plan is unique due the amount of funding required and the uncertainty of future expansion/development revenue (i.e., Vineyard Corridor Specific Plan Fees) that will be available to repay the maintenance and improvement funds. Similar to previous water and sewer interfund transfers there will not be an interest rate attached to the loans. Further, while other interfund transfers assumed a specific repayment term, due to the uncertainty of the level of development activity in the Vineyard Corridor, this is not practical for these loans. As a result, repayment will occur consistent with Vineyard Corridor activity. At the time of Council's action, staff indicated it would track loan payments as part of the CIP. As can be assumed, at this time, there has not been any significant collection of revenue to repay these loans. However, the table below reflects the status to date. SUMMARY OF VINEYARD AVENUE CORRIDOR INFRASTRUCTURE LOANS Effective May 15, 2007 Loan Loan Amount Pa mens Balance Sewer $1,178,625 $0 $1,178,625 Water $7,231,944 $178,316* $7,053,628 Total $8,410,569 $178,316 $8,232,253 *Reimbursement from PG&E It should also be noted that staff is currently reviewing water rates which may lead to the establishment of a fourth tier water rate that would be used as the revenue source noted above. The rate study is scheduled for completion in six to eight months. Transfers from the General Fund Since beginning General Fund transfers in FY1998, the General Fund's contribution has been divided into two components. The first component is an annual ongoing contribution intended to remain somewhat constant through build-out. The goal of this component is to eventually create a stable contribution of approximately $5 million annually. However, as new major capital projects are brought on-line and the City approaches facility build-out, it is anticipated that this contribution will be reduced to cover the cost of operating the new facilities. As a result of this approach, this CIP maintains the $5 million transfer in all four years. The second General Fund component is a one-time contribution from the General Fund Capital Improvement Reserve projected to be $2 million in FY 2008 and $3 million in FY 2009. While the $2 million was approved by the City Council as part of the Mid-Term budget, the $3 million in FY 2009 is a result of staff efforts to minimize operating expenses as a means of acquiring funding to meet Council priorities included in the. Annual Work Plan. Because this component is made up of one-time revenue sources, that is dependent on general financial conditions and the status of the Operating Budget, it should not be viewed as an ongoing or stable source of revenue to the CIP. Because of this, historically, this funding has been directed to a single project requiring funding for completion. For this CIP, it is being placed in the CIPR to address Council priorities.