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more property will be taken out of the floodplain than previously determined, property <br /> values on the dry side of the project will increase, and the savings of flood insurance <br /> premiums would all add to the benefit but have not been included. The construction cost <br /> estimate has been updated and prepared with more detail to better estimate what will be <br /> included in the project. Although more detail has been used to prepare the estimate, a <br /> 10% contingency is still included. The project cost used for the analysis is shown as <br /> Alternative 4 in Section VII, Table 3 of this report. Table 5 summarized the damages <br /> associated with the current condition. Table summarizes the damages before and after <br /> construction of the project. These numbers were used to determine present value cost for <br /> a 50-year design life project to determine the benefit/cost ratio. <br /> XIII. SPONSOR FINANCIAL ANALYSIS <br /> A detailed financial analysis was prepared by the City of Sterling to determine their <br /> ability to repay the CWCB loan. The analysis is located in Appendix 7. According to the <br /> City, a 3% sales tax is collected. 20% of 1% (or 6.67%of the total) of this tax is <br /> designated for drainage and flood control and placed in the Capital Improvements Fund. <br /> The drainage and flood control funds are used for storm sewer improvement, flood <br /> control project, and general maintenance of the existing storm drainage and flood control <br /> facilities. The construction loan will be paid using the revenue obtained from the <br /> drainage and flood control designated sales tax and taken from the Capital Improvement <br /> Fund. <br /> A table, shown in Appendix 7, has been provided that shows the projected revenue, debt, <br /> expenses, and reserve funds to be used to pay the CWCB construction loan over the 20 <br /> year period beginning in 2004. According to the table, the Capital Improvement Fund <br /> balance will grow over the 20-year period after taking out loan payments and other <br /> expenses. The starting fund balance is over $1,000,000. Thus, the City will be able to <br /> repay the construction loan. <br /> XIV. DESIGN AND CONSTRUCTION SCHEDULE <br /> Table 8. Design and Construction Schedule <br /> ACTIVITY SCHEDULE <br /> Master Plan Concept Finished <br /> Preliminary Design 9/15/01 to 1/1/02 <br /> Final Design 12/15/01 to 4/30/02 <br /> Special Services During Design 9/15/01 to <br /> Construction Administration 5/1/02 to 8/15/03 <br /> Land Acquisition 12/1/01 to 2/1/02 <br /> Construction 6/1/02 to 8/1/03 <br /> 41 <br />