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The Fire Department is pleased to report that the final project cost including both approved costs and unexpected costs are $8,935,971 The final cost reflects a lower total project cost of $77,937 from the Council approved project budget. These cost not only reflect an overall approved project savings but include the makeup of the $236,504 of unexpected costs. As the final project cost of $8,935,971 is more than the bond amount of $8,000,000 additional funding sources have been identified and outlined in the financial impacts section below. FINANCIAL IMPACTS As noted above, the City issued $8 million in bonds to fmance the construction of the new Fire Station. Through interest earnings on the bond proceeds and energy rebates, total financing sources amounted to $8,202,332; leaving a funding gap of $733,639. Over the past year, there have been a number of discussions surrounding the eventual sale of the Fire Station #3 (Dale Street) property and using those monies to partially alleviate the funding gap. If, for example, the sale price of the property is established at $300,000, the funding gap would decline to $433,639. The City Council would then need to identify a funding source for the remaining gap. Staff suggests the Council consider using the Building Replacement Fund to bridge the final gap. This Fund was specifically established to pay for general building repairs and renovations including the Fire Station(s). It has a current balance of $808,000. STAFF RECOMMENDATION Staff recommends the Council accept the final Fire Station cost projections noted above and identify the funding sources necessary to complete the financing package. REQUESTED COUNCIL ACTION Motion to approve the final Fire Station construction costs and authorize the use of the proceeds from the sale of Fire Station #2 property and the Building Replacement Fund to complete the financing package. Prepared by: Timothy O'Neill, Fire Chief Page 2 of 2