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Table 6.1 <br /> Preliminary Cost Estimate for Recommended Improvements <br /> Elk River Wastewater Treatment Facility <br /> Item Cost <br /> Liquid Stream Improvements $8,095,000 <br /> Biosolids Handling Improvements $540,000 <br /> Total Construction Cost $8,635,000 <br /> Contingency(10%) $864,000 <br /> En ineerin /Admire(15%) $1,295,000 <br /> Total Project Cost $10,974,000 <br /> Annualized Payment(20 years @ 4%) $794,200 <br /> 6.2 Project Funding <br /> There are several alternatives that the City can consider for project funding and each is <br /> discussed below. <br /> 6.2.1. Bonding <br /> The City could sell general obligation, local improvement, or revenue bonds in <br /> order to raise funds for the capital costs to improve the treatment facility. The <br /> proceeds of the bonds would need to be repaid, either through property taxes, <br /> assessments, or user charges. <br /> 6.2.2. Assessment <br /> A portion of the capital costs of the project can be assessed to local property <br /> owners under Minnesota Statute 429. Using this method, a one-time assessment <br /> could be levied and repaid over a period of 10 to 20 years. This cost could help <br /> offset monthly increases in user fees and permit use of general obligation bonding. <br /> 6.2.3. State Revolving Fund Loan (PFA) <br /> The loan program was created under the State Revolving Fund (SRF) provisions in <br /> the Federal Clean Water Act to provide financial assistance for water pollution <br /> control projects. Minnesota's revolving loan program provides loans to <br /> municipalities for planning, design, and construction of wastewater treatment <br /> City of Elk River—T12.104758 Page 32 <br /> Wastewater Treatment Facility Plan Prepared by Bolton&Menk,Inc. <br />