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DETAILS: <br />This move will require the City to begin making bond payments in 2015 rather than <br />waiting until 2017 (i.e. utilizing capitalized interest in 2015 and 2016). It is proposed, <br />the City will make interest only payments in 2015 and 2016. In 2015, staff would <br />propose utilizing the City's Facility Fund for bond payments (about $60,000). The <br />Facilities Fund has a balance sufficient to support this payment and the construction of <br />the anticipated "parking ramp garage" project. In 2016, staff would propose utilizing <br />the City's levy for bond payments (about $115,000). <br />The $200,000 savings realized is a result of (1) the elimination of capitalized interest <br />(which would have also increased the principal); and (2) from reducing compounding <br />interest payments. Making this adjustment will require the City to increase the general <br />levy in 2016 for Fire Station #2 bond payments rather than waiting until 2017 to <br />increase the levy. <br />What has been done to reduce project costs? <br />Staff worked with BKV Group to see what could be cut from the design of this building to reduce <br />project costs. About $150,000 in cuts were identified and included in the final design and <br />project budget (reconfigure meeting space, eliminate patio area, cut 2' from apparatus bay, and <br />change of landscaping materials). <br />