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are typically used to pay for on-going maintenance and operation costs associated with the City's operations and/or maintenance and operating costs associated with capital facilities. For example, the Program will require additional monies to pay for increased operating and maintenance costs. Therefore, the benefit assessment could be viewed as a financing mechanism for these costs. However, it should be noted that the proposed Financing Plan contemplates using a portion of the annual transfer of surplus funds from the General Fund. Also, it should be noted that proceeds from the issuance of general obligation bonds and certificates of participation can not be used to fund operating and maintenance costs. Mello-Roos Special Tax Bonds. The Mello-Roos Community Facilities Act was enacted by the California Legislature in 1982 to provide all cities, counties or districts, an alternative method of financing essential public facilities and services. The Act allows cities to create separate public agencies, known as community facilities districts, within their boundaries for the purpose of financing certain public facilities and services. The Mello-Roos financing mechanism uses a special tax to repay the annual debt service and operating costs. The special tax may or may not be based upon benefit to the parcels of land in the district or it may be based on the cost of making the facilities or services available or on any other reasonable basis. The tax may not be ad valorem or related to the value of the property. The formation of a Mello-Roos District, the levying of a special tax, and the issuance of special tax bonds requires a super majority (67%) voter approval. THE PROGRAM The Program includes the Bernal Property Improvements identified in the Specific Plan and ratified by the voters in 2006 (Measure P). The following table presents a brief description of each of the projects within the Program, the estimated cost of the project and an estimate of the additional operating costs associated with the project. Table 1 Program Capital and Operating Costs Descri tion~'~ Estimated Ca ital Costs Estimated Additional O eratin Costs~2~ Bernal Communit Park Phase I $ 8.8 million $ 348,080 Phase II 7.3 million 220,888 Phase III and IV 10.8 million 326,608 O en S ace 30.0 million 540,904 Communi Center 16.0 million 121,410 Youth Center 16.0 million 121,410 Civic Arts Center 40.0 million 202,430 Total $128.9million $ 1,881,730 ~'~ See Appendix A for a complete description of the projects and the basis for estimates contained in Table 1 above. c2> Operating Costs are as of 2007/08FY. Each year thereafter it is assumed that the operating costs will increase by 3% per year. Therefore, assuming all the projects are on-line by the 2024FY, the total operating costs are projected to be $3,110,213.