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Resolution to appropriate funds in the Stormwater Utility Fund in the amount of two million six hundred ten thousand dollars ($2,610,000) for capital improvements to dredge the Coral Gables Waterway and three million five hundred thousand dollars ($3,500,000) to appropriate in the Capital Improvement Fund for the Coral Gables Museum.
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The first loan is for the principal amount of $2,635,000 to finance the cost to dredge the Coral Gables Waterway (C3 Canal). This loan will be amortized over a period of ten (10) years at a fixed annual interest rate of 3.98% with an annual principal and semi-annual interest payment of $325,456. The total estimated cost to dredge the Coral Gables Waterway is $4,810,000. This project will be funded with an approved State grant of $2,200,000 and the net loan proceeds of $2,610,000 (after closing cost of $25,000) from the Sunshine State Governmental Financing Commission.
The second loan is for the principal amount of $3,525,000 to finance a portion of the $5.9 million construction cost for the Coral Gables Museum. This loan will be amortized over a period of ten (10) years at a fixed annual interest rate of 3.98% with an annual principal and semi-annual interest payment of $436,074. This is a bridge loan to fund the cost of construction in advance of the receipt of donations and other funds.
The total outstanding debt of the City for 2009-2010 will be $64,827,472 including these two new loans in the principal amount of $6,160,000. The total annual principal and interest debt service of $6,947,811 represents 5% of the total operating and debt service budget.