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Mayor Pico pointed out that there are approximately 500 acres that will be either under <br />conservation easements, golf course, public park facilities or ridgelands park. <br /> <br />Mr. Rasmussen said that was correct. <br /> <br />Dave Iremonger presented the financing plans for the project. <br /> <br /> Ms. Ayala inquired about the $2 million advance for the Vineyard Corridor infrastructure <br />and asked if that was to be reimbursed by the developers or was that the City's share of the <br />costs? <br /> <br /> Ms. McKeehan indicated $2 million is part of the City's costs. In addition, there is an <br />agreement with the School District to guarantee $2 million for the District's debt service <br />payments. The proposed bond issue for the golf course allows the City to provide a portion of <br />the $4 million for the Vineyard project. That will be paid back over an extended period of time. <br />It is another way of leveraging the cash on hand. <br /> <br />Ms. Ayala wanted to make certain the $2 million is always in a separate fund. <br /> <br /> Mr. lremonger explained that separate funds are established for the golf course, the <br />Vineyard Corridor and senior center refinancing. <br /> <br /> Ms. Ayala asked if that was because the General Fund did not have enough money to <br />fund the $2 million? <br /> <br /> Ms. McKeehan said it was a matter of managing cash flow. Staff did not want to commit <br />that much cash because it limits other possibilities. It would be easy to add $2 million to the golf <br />course project in terms of bond financing and give Council cash with which to do other things. <br />That has been done in the City in a variety of different forms. <br /> <br /> Mr. Iremonger explained that one aspect is to pledge the assets of the Operations Service <br />Center, which have a much higher value than the actual cost of the golf course. <br /> <br /> Ms. Michelotti asked if the refinancing would have a much better interest rate. That <br />would be beneficial and save the City money. <br /> <br /> Mr. Iremonger said that is the purpose. The interest rates on the early maturities have <br />really come down and that bond issue goes to 2011 at an interest rate of 6%. So we will see 4% <br />on the longer bonds at today's interest rates. <br /> <br /> Ms. Ayala asked if the bonds would be issued at the first of the year? She asked if he <br />said today's rate is 4%. <br /> <br /> Mr. Iremonger said the bonds would be issued in early 2003. Along the whole spectrum <br />of the years that the bond issue would be outstanding, there are different interest rates. The <br /> <br />Pleasanton City Council 6 09/17/02 <br />Minutes <br /> <br /> <br />