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Dave Iremonger reported that term of the bonds is 28 years, through the year <br />2031. <br /> <br /> Mr. Brozosky asked if there was a way to calculate what the $4 million dollars <br />would cost the City in interest payments? <br /> <br /> Mr. Iremonger believed the cost to the City would be $300,000 to $400,000 per <br />year in debt service. He pointed out that City originally intended to sell the bond issue <br />with a self-imposed restriction of $1.6 million dollars per year. The City was successful <br />in keeping the self-imposed restriction of $1.6 million dollars because the interest rates <br />declined, and because the COP financing qualified for a surety bond, it eliminated the <br />need for the $2 million reserve fund. <br /> <br /> Mr. Brozosky asked if it was anticipated in the budget that the $4 million dollars <br />would be used as operating expenses for the Callippe Preserve Golf Course? <br /> <br /> Mr. Iremonger noted that the current budget for the Golf Course and Open Space <br />project is $34 million dollars. Staff is requesting the budget to be increased to $38 <br />million dollars for the total project. <br /> <br /> Mr. Brozosky asked if changes needed to be made to the fee structure to make up <br />for the difference? <br /> <br /> As previously stated, Mr. Iremonger mentioned that the revenue that is generated <br />from the Golf Course would cover the $1.6 million dollars in debt service on the bonds. <br />Instead of reducing the General Fund contribution, the $4 million dollars would be used <br />for the project. <br /> <br /> Ms. Ayala asked for the original General Fund amount that went towards the Golf <br />Course. <br /> <br /> Mr. Iremonger reported that $10 million dollars was the original amount from the <br />General Fund that went towards the Golf Course. <br /> <br />Ms. Ayala asked how much money had been replaced so far? <br /> <br /> With the additional $4 million dollars that was realized from the bond sale, Mr. <br />Iremonger noted that the City had the opportunity to possibly reduce the General Fund <br />contribution. Staffis now suggesting keeping the entire $10 million General Fund <br />contribution. <br /> <br /> At the completion of this project, Ms. Ayala asked if staff anticipates that the <br />budget would go beyond $38 million dollars? <br /> <br />Pleasanton City Council 9 02/03/04 <br />Minutes <br /> <br /> <br />