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I• �"� <br /> - 4. City General Fund Balance Designated for Capital ProJects <br /> In 1998 the City elected to issue $11.7 million in bonds to reimburse itself for the cost of <br /> constructing City Hall. These bonds are secured by lease payments made by the general <br /> fund. Since that time the proceeds of this bond issue along with interest eamings less the • <br /> interest and principal payments required to service the outstanding debt (the City is <br /> currently using the amount reimbursed to it from the proceeds of the bonds, plus interest <br /> eamings, to pay debt service on the bonds) have been maintained in the Cit�s general <br /> fund and have been designated for capital projects. A portion of these funds could also be <br /> loaned to the Agency for the foregoing projects. These funds are in addition to the general <br /> fund's unappropriated fund balance. Using conservative assumptions regarding tax <br /> increment growth and future interest rates financial analysis by staff indicates tha4 <br /> approximately $6 million of these fund balances �uld be loaned to the Agency with little or <br /> no adverse financial consequences to the general fund. <br /> 5. New General Fund Bond Issue <br /> The City also has the option of issuing bonds that could be repaid using utility users' tax <br /> revenues and then loaning the proceeds of the bond issue to the Agency to fund these <br /> projects. Aithough the City would intemally detertnine the size of the bond issue based <br /> upon the availability of utility users' tax revenues any bonds issued by the general fund will <br /> be obligations of the general fund. <br /> Conclusion <br /> - The Retail-Cinema Project will provide a tremendous benefit not only to downtown but to <br /> the entire City. It is an integral part of the overall improvement of our downtown, which will <br /> become a'public space' for people to gather for community building events, entertainment, <br /> shopping, dining, doing business and working - and wili be a great place to live. It is time <br /> to proceed. . <br /> � <br /> i H e <br /> C air of the Ci ema Sub-Committee. <br /> fher Sub-Committee Members: Mayor Dick Claire <br /> and Councilmember Diane Howard <br /> Attachments <br /> 1. Addendum to the EIR and related resolution <br /> 2. Summary Report, Reuse Valuation and related resolution <br /> 3. Amended and Restated Disposition and Development Agreement and lwo related resolution <br /> 4. Chronology of the project <br /> 6 <br />