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• <br />Honorable Chairman and <br />Board of County Commissioners <br />9/16/91 <br />Page 28 <br />amount of 10 percent of the total construction cost is added as an allowance <br />for contingency. Engineering costs for the various categories listed in <br />Table 7 are estimated to total $798,000. Total program costs are thus <br />estimated as $5.858,000. <br />PROJECT FUNDING AND FINANCIAL REQUIREMENTS <br />FUNDING OF CAPITAL COSTS <br />Two sources have been identified for initial financing of the project. One <br />source is the 1991 Bonds, for which this report has been prepared. The other <br />financing source for the capital costs of the project is a grant offer from <br />the FDER. Table 8 indicates the relative amounts of each estimated for this <br />project. <br />The current estimated grant amount is $1.2 million, although this amount <br />remains uncertain at this time. The remaining local share of cost requiring <br />financing will be verified after the State has determined the actual amount <br />of the grant. <br />As shown in Table 8, the preliminary estimated local share of capital cost is <br />$4.66 million. Should this entire amount be debt financed by the 1991 Bonds, <br />it is estimated to require approximately $5.6 million face amount of bonds, <br />including allowances for debt issuance costs, capitalized interest, and debt <br />service reserve requirements. Assuming a 25 -year level term debt issue at an <br />average coupon rate of 6.75 percent, annual principal and interest costs are <br />estimated to be approximately $480,000. This annual amount does not include <br />any reduction for interest earnings on the debt service reserve fund. Again, <br />this analysis assumes the entire local share of capital costs to be debt <br />M. VRB2/5 <br />