There are 4 project options reflected in the attached financial analysis. The financial analysis reflects the cost of energy experienced in 2019 as the starting point ($.09/kwh) and anticipates a 4.1% annual increase (based upon the average annual increase over the past 20 years). These are reasonable assumptions.
Option 3 reflected in the attached financial analysis reflects the highest IRR for the City (236%). It has only 1 year of negative cash flow and the shortest payback period (2.5 years). In this option the City will pay for the City Hall roof replacement ($65,000) and the City Hall carport ($117,000) once these improvements are complete. TIF2 will have sufficient resources to pay for these two improvements. No other TIF2 projects have been identified and the TIF2 resources are to be used by the end of 2021.
Powder coating of the City Hall carport would add $9,376 to the cost of the carport. The base price reflects galvanized finish. There will be enough TIF2 resources to cover the additional cost. Council will need to decide if adding color is worth the additional cost. The powder coating will require touch up or re-painting likely beyond year 15. The carport structure will have a clear height of 10' on the west edge and 16' on the east edge to give you an idea of how much of the support structure will be visibl