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Future expenses to provide municipal services to TCAAP Type of Expenditures In general terms, the City TCAAP expenses can be separated out into a Capital category and into an Operating category. Capital Expenses are the one time, large expenditures such as trunk sewer and water lines or storm sewer mains and ponds. Some of these capital expenses are best completed in advance of the redevelopment projects and some are best completed concurrent with the redevelopment activities. Municipal bonds are often used to finance capital improvements and the bonds are typically repaid through assessments to benefitted property owners. I understand that financing the trunk utilities is a major concern for the City Council. Article III of the Joint Powers Agreement (JPA) reviews this and some of the other City financial issues. This Article III is attached for your reference. Regarding the trunk sewer and water utilities, in brief, the plan is to assess 100% of the costs out to the benefitted property owners. Originally, at the time of approving the JPA, it was anticipated that the trunk utilities would be installed in phases from south to north but it now looks like they will be installed all at once between 96 and the H/35W intersections. While we know the likely financing method to recap know the total cost of the trunk utilities, the per developable acre assessment amount, or the repayment schedule. It is not really a case of if we will get repaid, but it is a case of how and when we will get our money to pay off the bonds. On the topic of the trunk storm sewer mains and ponds, these utilities can be looked at as being both similar and yet different than the trunk sewer and water utilities. They are similar in that they can be 100% assessed out; and they are different in that some of the system (the pond especially) may be constructed in phases as development occurs. Also, Rice Creek Watershed regulations are a major determining factor in the final size, location and design of the storm water system. Right now it is very hard to tell where the surface water management requirements end and the water feature amenity begins. This utility is also more likely than the trunk sewer and water to be funded by methods other than assessments (i.e. by storm water fees collect as development happens). Concerning park development, the City should be able to acquire all of the desired land for parks through the park dedication/platting process, but we may not get enough funds for the park development and ponsibility to fund part of the park improvements. Funding options to finance the park improvements, other than using park dedication money or City reserves (PIR fund), are limited. With reference to the private developer requesting public improvement for their subdivisions, these localized capital improvements can be funded by the City and