Special Board of Aldermen Page 6
May 31, 2016
Alderman McCarthy
The bond plus the federal government reimbursements will cover the cost of the Broad Street Parkway project
plus whatever amount in paving; $1.7 million it sounds like.
Alderman Moriarty
It’s still not quite what | am looking for. In order to get reimbursed we have to spend the money first so if the
federal government’s share is greater than the amount we bonded then we don’t have an ability to spend just
bond funds in order to get reimbursed with the federal government money. The federal governments share
$40 million and our bond is $35 million, once we have spent our $35 million, we don’t have $5 million available.
Alderman McCarthy
We do because we’ve been reimbursed for some of the earlier expenses already. Look at it this way, we
bonded $30 million; we put $30 million in the bank, we spent $10 million, we sent the federal government a bill
for $10 million and they gave us back $10 million and at that point we still have $30 million in unencumbered
cash and we now have $50 million instead of $60 million in expenses anticipated. So at that point what we
need back from the federal government is less than half of the project. We essentially do spend our cash more
than once and get reimbursed for it more than once.
Alderman Moriarty
Right and that allows us to go through the project but now we are at the end of the project where we have
spent all of the $30 million twice already.
Alderman McCarthy
We haven’t spent our $30 million yet.
Alderman Moriarty
But we did not bond enough money to cover the federal share.
Alderman McCarthy
Yes, the project is substantially under the budget that the bond was based on.
Alderman Moriarty
So then we did bond enough money; the amount we bonded is greater than the total federal share, is that
true?
Alderman McCarthy
No, it doesn’t have to be because we were paid back enough of the federal share. The point we are at now is
that there is a few million in expenses left on the Broad Street Parkway but there is perhaps $10 million or $15
million left in the bond authorization because we only spent $20 million of our money in the process of building
it.
Mayor Donchess
So in the end we will spend more than we thought on the Broad Street Parkway but on the other hand we will
get a lot of paving; in the end we come out even. For whatever we spent more than anticipated on the Broad
