East Main estimates up $1.3 million

The city’s board of directors heard an update concerning the Main Street project funding prior to their scheduled meeting Tuesday night and found estimates are up $1.3 million from May.

Current estimates for the project sit at $6,887,923.80.

The focus of the project is to upgrade the street design and streetscape of Main Street from downtown to Highway 412, a facet of the city’s downtown master plan. Directors approved working with Crafton Tull for preliminary engineering design services at their Oct. 16, 2018, meeting.

Directors heard a preliminary estimate from Crafton Tull engineers at a concept meeting May 15. Estimates presented before directors said the project could range anywhere from $5 million to $5.5 million, depending on how the city decided to move forward with things like relocating utilities and repairing or replacing stretches of road.

During that meeting, Community Development Director Don Clark told the board figures will most likely change, as Crafton Tull was only 30 percent through the design phase. More concrete

figures will begin revealing themselves 60 to 90 percent into the design phase, Clark said.

At Tuesday’s meeting, Clark said the budget is showing increases because of potential relocation costs and final design fees due Crafton Tull.

Christina Petriches, finance director and treasurer for the city of Siloam Springs, presented the board with three potential funding mechanisms to pursue for the project in hopes the board could offer some insight toward what step it might want to take next.

The first is a five-year bank loan with a 4 percent interest rate that would subsequently cost the city $860,000 in interest fees. However, the city would maintain its existing reserve balances. The second is to save funds for an estimated period of 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 fund the project with existing reserves. The project could start as planned with no increased costs due to interest or construction. However, the city’s reserves would decrease over the next three years, the estimated time frame of the project.

Director Bob Coleman, at large, expressed his concern in depleting reserves because of other city projects currently slated to begin or potential catastrophic events. Director Carol Smiley, at large, echoed concerns about having funds readily available for a catastrophic event.

Petriches said, should something of such a large scale happen, not only would there be reserves to initially draw from, but she’s confident federal funding will be available should an emergency be declared.

Directors Marla Sappington, ward 3; Lesa Rissler, ward 4; and Coleman were in favor of pursuing the second funding option.

Directors Reid Carrol, at large; Mindy Hunt, ward 1; Brad Burns, ward 2; and Smiley were in favor of pursuing the third funding option.

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. Permitting is also expected to begin. Come 2021, city staff expects to finalize construction bid documents and begin relocating utility and electric lines. Project bids will go out and construction could begin mid-year. Come 2022, city staff expects to finalize construction.

City staff said the project timeline is based on how funding is handled.