Special Board of Aldermen Page 5
May 31, 2016
Mr. Fredette
From bonds.
Alderman McCarthy
So we did let some of the bonds up front to get enough cash in the account to do that.
Mr. Fredette
Mr. Fredette’s response was inaudible.
Alderman Moriarty
Okay so | understand that so let me go a little bit further. Remind me again, so the amount is $80 million and
we are paying less than half so if we are paying less than half then we don’t have the ability to sort of spend
our money twice. Let’s say we have a $60 million project and they are paying half, we spend $30 million and
they reimburse $30 million and then we spend $30 million again. That equals $60 million but if it's an $80
million project and we are bonding $35 million we could spend $35 million but we don’t have any money left to
spend out of the bond fund because it’s already been spent. Is the federal government push greater than half
of the total amount of the project?
Alderman McCarthy
| think the part that is missing there is the total budget that was expended is less than what the estimates were
and therefore the amount that we are getting in reimbursements plus what we had for the bond authorization
comes to less than the total of the project plus what we wind up having to pay them.
Alderman Moriarty
Okay so that’s half the answer but is the total amount that the federal government paying less than how much
we bonded, total?
Alderman McCarthy
The net effect is going to be that we are essentially repurposing the bonds to pay for pavement because we
are going to pay for a part of the parkway that we didn’t expect to pay for and the feds are going to pay for
paving in return in the same amount.
Alderman Moriarty
Right, | get that but if at any point the federal government's share is more than half of the total cost then we
don’t have enough money in our bond account to spend it twice.
Alderman McCarthy
If the federal government's share is less than what we have bonded...
Alderman Moriarty
| will start over; did we bond an amount that is at least as much as the federal government share?
