SILOAM SPRINGS -- Cost estimates of the proposed Main Street project rose $1.3 million since May, the city's board of directors learned recently.
Current estimates put the project at $6,887,924.
The goal is to upgrade the design and landscape of Main Street from downtown to U.S. 412, a facet of the city's downtown plan.
Directors selected Crafton Tull last year for preliminary engineering design services. Crafton Tull engineers said May 15 the project could range from $5 million to $5.5 million, depending on decisions made by the city.
Don Clark, Community Development director, told the board in May estimates will likely change as Crafton Tull was only 30 percent through the design phase. Clark said at a meeting last week the estimate increased because of potential utility moving costs and final design fees due Crafton Tull.
Christina Petriches, finance director and treasurer, presented the board with three options on how to pay for the project.
The first is a five-year bank loan with a 4% interest rate, subsequently costing the city $860,000 in interest. The city would maintain its money in reserve.
The second option is to save money for about seven years. While there would be no interest costs borne by the city, construction costs are estimated to increase by 10 percent during that period of time.
Finally, the city could pay for the project with some of the $20 million the city has in reserve, Petriches said.
Director Bob Coleman said he was concerned with depleting reserve because of other city projects slated to begin or potential catastrophic events. Director Carol Smiley echoed the concern about having money readily available for a catastrophic event.
Petriches said there will be reserve to draw from at the beginning of the three-year project, and she's confident federal money will be available should an emergency be declared.
The project's tentative timeline begins later this year into early next year, when design drawings are expected to provide solid cost estimates by summer 2020 for 2021 budgeting.
City staff expect to finalize construction bid documents in 2021 and begin moving utility and electric lines. Project bids will go out and construction could begin midyear.
City staff said the project timeline is based on how funding is handled.
NW News on 07/26/2019