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Interest rates on the bond issues were based on conservative estimates of rates available during this period (i.e., 6.5%). Today's rates for a comparable bond issue would be 5.0% For purposes of determining the appropriate interest rates to use in the analysis, it was assumed based on the City's current Moody's rating of "Aa", that the General Obligation Bonds, the Certificates of Participation, and the Mello-Roos Special Tax Bonds would be rated "Aa". The debt (principal and interest) would be repaid over athirty-year period for each phase of bonds issued. The following section of the report presents a description of the financing options available to the City to finance the Program. Existing Revenues As indicated above, the first financing alternative available to the City is to look to existing revenues and identify those revenues to be dedicated to financing capital improvement projects on a "pay-as-you-go" basis (i.e., pay cash for the project). The City is encouraged to do this before contemplating increasing taxes and issuing debt. Staff has done this and has identified the following existing revenues for funding the Program: A $9.3 million reserve in the City's CIP for the Bernal Property Improvements. An annual transfer of $2.5 million from the General Fund to the Program. The financing model Appendix B (Tables 2 through 4), does not show the transfer decreasing over time as Program projects come on line and the City incurs additional operating costs because the model includes the annual increase in operating costs. However, once the Financing Plan is implemented, projects begin to come online and operating costs are being incurred and absorbed by the General Fund, the annual General Fund transfer to the Capital Improvement Program will decrease accordingly. These existing revenues and reserves total approximately $52.7 million over the seventeen years of the Financing Plan. The Program costs including construction, acquisition and operation costs totals approximately $158.9 million over the seventeen years of the Financing Plan. Therefore, the City will need to supplement its existing revenues with new fees or an increase in existing fees and/or a debt financing program if the desire is to fund 100% of the Program at this time. Appendix B, Table 2 presents the Financing Plan assuming the funding for the Program is only the City's existing revenue stream. Based on this funding level over the seventeen year period of the Financing Plan, the following Program projects (or portions of) will be completed: Bernal Community Park Phases I, II, III and IV A portion of the Open Space area (approximately $6.5 million of the estimated $30.0 million project). The following is a discussion of the alternatives available to the City to fund the gap between exiting revenues and the cost of the entire Program.