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Page 2 of 2 <br /> July 10,2012 Council Report <br /> City Project 12-9,Phase 1 Freedom Park Flood Mitigation Improvements <br /> Exchange TIF Districts. Below is a breakdown of the costs and associated funding sources. <br /> Freedom Park NBE—West Side Total <br /> Engineering Estimate $252,700 $67,600 $320,300 <br /> In-house Engineering&Admin $28,100 $14,200 $42,300 <br /> Professional Services/Testing $25,000 $10,000 $35,000 <br /> Total: $305,800 $91,800 $397,600 <br /> As previously stated in the April 24, 2012 report when City Council authorized City Project 12-9, Phase 1 <br /> Freedom Park Flood Mitigation Improvements, costs are normally financed by the Stormwater Improvement <br /> Fund. Since the flood mitigation projects were not anticipated in the most recent utility rate study and there is not <br /> sufficient cash on hand in the Stormwater Improvement Fund,alternative funding sources will be required. <br /> One source of funding could be bond proceeds from a future bond issuance. The actual amount of the bond will <br /> be determined based on the actual bids awarded. The new debt issue will then be incorporated into the rate study <br /> for the Stormwater Operating Fund. Rates for the Stormwater utility will be adjusted accordingly. <br /> However, an alternative to financing the project with a bond issue is recommended. The Community <br /> Reinvestment Fund could provide an internal loan. The internal loan would then be incorporated into the rate <br /> study for the Stormwater Operating Fund,just the same as a bond issue. Rates for the Stormwater utility would <br /> be adjusted accordingly. However, savings would result by using this alternative since there would be no <br /> issuance costs associated with an internal loan. Interest rates would be comparable. $305,800 would be a pretty <br /> small bond issue. Opportunities to combine it with other new bonds, such as street reconstruction bonds, would <br /> be considered for efficiencies. The Community Reinvestment Fund has the capacity to provide an internal loan of <br /> $305,800 while being repaid with interest over time (ten years) without disrupting other long-term financial <br /> planning efforts. <br /> All costs associated with the Phase 1 Freedom Park Flood Mitigation Improvements will be paid for by the <br /> Stormwater Improvement Fund. <br /> All costs associated with environment testing of the soil, relocating of the organic stockpile, and NBE site <br /> restoration will be paid for by the New Brighton Exchange TIF Districts. <br /> Grant M. V yffel <br /> Director of Public orks <br /> Project Map <br />