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the importance of the school district to the community, staff believes it is an appropriate use of funds because the City fully expects to be repaid back with interest over the next ten years. Councilmember McGovern confirmed with the City Manager that the $1.2 million could be going toward the Lions Wayside Park and helping to improve it for the Fire House Arts Theater. Many people in the community have asked the City to step up and help the school district. recognizing this is the reason many families moved to Pleasanton. She questioned if the school district has the choice in paying back within the 10 year payback if they receive funding through school impact fees in the 10 year period, or would they utilize the funds to do capital improvement projects. Ms. Wagner said at the current time, they do not; the agreement allows for amendments. Each time the school receives impact fees and they have outstanding advances, they are to pay the City first through a promissory note. However, the exception to this is that these monies are also obligated to pay lease payments on some portables, so this has been carved out and is approximately $260,000. Therefore, there should be no reason to think that the City will not be fully repaid soon after the 4` year. Mayor Hosterman opened the item for public comment. Kay Ayala presented copies of the cash flow sheets and said the question is whether to loan taxpayer money to another agency. She outlined the Districts four sources of revenue and said funding history is one of fluctuation, but the constant is COP's which were approved in addition to property taxes imposed by Measures A and B. She did not believe this was good financial planning, and if the money is lent, taxpayers should see some benefit from it in the future, she suggested that it not be approved tonight and asked to identify how much money could be saved by the City and School District combining their corporation yards. Mayor Hosterman closed public comment, and said she believed there was a value to aid and assist the school district which benefits the community and its school children. Councilmember Thorne said he has struggled with the issue as a citizen and councilmember, noted that the District has made its decision by an elected body on a balanced budget, with the exception of the debt service payment, and the controversy on how the district has managed the issue of whether the parcel tax is needed, and he believes one of the Council's first goals is to preserve the high quality of education. He encouraged people who do not believe the crisis has been managed properly to work with the District and its Board to affect improvements. Vice Mayor Cook- Kallio said she hears that people do not understand why the School District did not save funds for this, and a lot has to do with how they must budget as opposed to the way cities budget. She said the City staff has been proactive in putting away funds, started talking about the downturn about 18 months ago in the event it would happen, and schools need to spend the money that comes in with the exception of categorical funds, and many funds Ms. Ayala mentioned are dedicated to certain things. She said children are our future, people can argue about how money was spent by the District, but the fact that there is an 85% turnout during an election is a fact that education goes on in the City. She said many of her friends are buying in Pleasanton to live in town so their children can attend the schools in town. She felt it would be short- sighted of the Council to not help the District solve a problem which is made at the State level, acknowledged the many constituents who support the City's help, and the City should put pressure on the State to stop using education as a pot of money when they need it. Councilmember McGovern said she served on the School Board for almost 11 years and she was there when strategic planning began and they decided they wanted their schools to excel, and they City Council Minutes Page 4 of 20 April 21, 2009