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CHAPTER 7 IMPLEMENTATION <br />Funding and Financing <br />Sources and Mechanisms <br />A spectrum of potential funding sources <br />and mechanisms exist for implementing <br />the improvements identified in the Bay Fair <br />Specific Plan. In many cases, multiple funding <br />sources will need to be combined in order to <br />pay for specific projects, as shown in Table <br />7.7. This section describes these sources and <br />mechanisms and their potential uses in the <br />Plan Area. <br />Although the terms "funding' and "financing' <br />are often used interchangeably, there is <br />an important distinction between the two <br />terms. "Funding' typically refers to a revenue <br />source such as a tax, fee, or grant that is used <br />to pay for an improvement. Some funding <br />sources, such as impact fees, are one-time <br />payments, while others, such as assessments, <br />are ongoing payments. "Financing' involves <br />borrowing against future revenues by issuing <br />bonds or other debt instruments that are paid <br />back overtime through taxes or fee payments, <br />enabling agencies to pay for infrastructure <br />before the revenue to cover the full cost of the <br />infrastructure is available. <br />Funding for improvements in the Plan Area can <br />come from a mix of developer contributions <br />(both required and negotiated), city resources, <br />grants, and potential new district -based "value <br />capture" mechanisms. Major categories of <br />funding sources and examples are described <br />below. <br />Table 7.7 Funding Source Categories, Examples, and Timing of <br />Availability <br />CATEGORY <br />SOURCE <br />ESTIMATED PROJECT TIMING <br />General Fund <br />Ongoing, and often immediately available if <br />City Resources <br />Capital Improvement Program <br />prioritized by the community <br />Development Standards <br />CEQA Mitigations <br />Developer Contributions <br />Impact/ In -Lieu Fees <br />One-time, as development activity occurs <br />Negotiated Agreements <br />Fee Credits/ Reimbursement Agreements <br />Assessment District <br />District -Based Tools <br />Community Facilities District <br />Ongoing, and grows overtime. Some sources <br />allow for up -front revenue via bond financing <br />Enhanced Infrastructure Finance District <br />One-time, as sources are typically competitive <br />and timing of availability is uncertain until <br />Regional, State and Federal Grants <br />secured <br />Outside Sources <br />User/ service fees <br />User/service fees are usually paid for ongoing <br />operations and maintenance of existing <br />facilities and services <br />131 <br />