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THE CITY OF <br />~L£~S~4NTON® CITY COUNCIL AGENDA REPORT <br />March 20, 2007 <br />Economic Development Department <br />TITLE: APPROVAL TO REPLACE THE CASH RESERVE FUND WITH A SURETY <br />BOND AND DEPOSIT THE CASH IN THE CAPITAL IMPROVEMENT FUND <br />SUMMARY <br />Based on a determination by the Finance Department, the City would replace the cash <br />Reserve Fund with a surety bond in order to release $3.8 million to the City for deposit <br />in the Capital Improvement Fund for future capital improvements in North Pleasanton or <br />the Downtown areas of the City. <br />RECOMMENDATION <br />Staff recommends the City Council approve the purchase of a surety bond to replace <br />the cash Reserve Fund and deposit the released cash of $3.8 million in the Capital <br />Improvement Fund for future capital improvements in North Pleasanton or the <br />Downtown areas of the City. <br />FINANCIAL STATEMENT <br />The funds to be transferred to the Capital Improvement Fund are existing funds that <br />have not been identified to date as excess funds and allocated to any specific fund or <br />expenditure by the City Council. Therefore, it is proposed that the cash Reserve Fund <br />be replaced with a surety bond as security for the bonds and the cash be deposited in <br />the Capital Improvement Fund to fund future capital improvements in North Pleasanton <br />or the Downtown areas of the City. All costs related to the purchase of the surety bond <br />and the liquidation of the GIC, if any, will be borne by the cash reserve funds. It is <br />estimated that these costs will total approximately $170,000. <br />