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Ms. Ayala asked if the $2.2 million dollar ending fund balance for street projects was money that was available? Ms. Rossi said that most of the $2.2 million dollar ending fund balance would be appropriated as part of the Capital Improvement Program. Mayor Pico indicated that if the City is looking for more money, the temporary recession reserve could be charged the $5.1 million dollars, with some of the differences between the VLF revenue and the State's failure to reimburse the City, particularly with the take away by the State for 2005 and 2006. The City has absorbed the loss of the revenue in the current year without charging the reserve fund. He noted that a $5.1 million dollar recession reserve was established without Council having any certainty as to the State's takeaways. He believed the loss to the City of Pleasanton would be about $2 million dollars a year for the next two years. Theoretically, it is possible to reduce the temporary recession reserve if funds are needed. He was not suggesting that this be done. Ms. Rossi said staff would not recommend reducing the temporary recession reserve for two reasons: (1) staff would like to think the City's contribution to the State solution will only last for two years; and (2) the economy seems to be recovering somewhat. Ms. Ayala concurred with Ms. Rossi's comments. Mayor Pico asked staff how much the General Fund was funding the Capital Improvement Program this year? Ms. Rossi said the funding for the current year is slightly over $7 million dollars. Last year it was $10 million dollars. Ms. McKeehan pointed out that the annual contribution to the Capital Improvement Program is generally $5 million dollars. In addition to setting aside $5 million dollars, Mayor Pico pointed out that the City is setting aside another $1.1 million dollars for the temporary recession reserve. Ms. McKeehan noted that in a few years when the City has figured out where it has settled in with the State and the money is available in the temporary recession reserve, it could be moved to the Capital Improvement Program. Ms. Ayala referred to the Capital Improvement Program Miscellaneous Projects and asked if the $300,000 was removed from the Additional Downtown Parking Fund and transferred to the Downtown Parking Improvements including improvements to the Alameda County Transportation Corridor? Ms. Rossi said that the two funds were being consolidated. Pleasanton City Council 17 06/01/04 Minutes