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Mayor Hosterman asked when the golf course would be open. Mr. Wilson expected that the golf course would be seeded by June 2005 and playable by late fall. Mr. Brozosky questioned the $5 million dollar loan from the Water Fund and asked where the funds are being derived from today as the City has already fronted the funds that the developers will reimburse to the City. Mr. Wilson said the City has not paid off the entire construction contract and all of the funds have not been expended. Because construction has not been completed, staff has put aside a pot of money that it has been expending as construction is occurring. Staff is requesting authorization to temporarily borrow funds from the Water Fund, if necessary, to bridge a possible lag as to the City's receipt of the developer reimbursements. In response to an inquiry by Mr. Brozosky, Mr. Wilson noted that when development of the homes occur, the funds will be reimbursed to the City in development fees, which will reimburse the City in terms of its project costs. Mr. Fialho said the money that staff has expended or plans to expend will come directly from the Water Fund, which is a separate fund that was established for Capital Improvement Projects. Staff is drawing a nexus between the Water Fund and this project because it will utilize a lot of water over time. Dave Iremonger, Financial Services Manager, said to date, the City has expended approximately $33 million dollars of the total project cost of $40 million dollars. He noted that approximately $2 million dollars in funding remains. There are approximately 14 lot sales in escrow and staff believes the money will be reimbursed to the City in a timely manner. Ms. McGovern was uncomfortable in providing a $5 million dollar loan and not being able to track it as it is used. If Council approved the $5 million dollar loan, she asked if Council would be provided updates. Mr. Iremonger pointed out that two lot sales have closed escrow and as these lots close escrow, there is $208,000 per home per lot that is reimbursed to the City. Out of the 14 lot sales that are in escrow, staff anticipates that seven may close escrow in April and another seven in June. He said staff could provide an accounting of these reimbursement funds to Council. Ms. McGovern saw these as two separate funds. She was trying to gain an understanding of how far and how deep the City was tapping into the Water Fund on a monthly basis. She wanted to understand exactly what the City is expending and what types of funds are left. Mr. Fialho said the golf course is a $40 million dollar project in total and the true cost to the City is $35 million dollars, as $5 million dollars will be reimbursed by the sale of the golf course lots. As staff previously mentioned, $2 million dollars remains. Staff is not certain about the status of the sale of the lots which will create the $5 million dollar funding contribution to the project, and it is for this reason staff is requesting a loan. The Pleasanton City Council 16 03/15/05 Minutes