Do the bond project budgets include costs for inflation?
The City has included a 6.5% compounded inflation factor rate for five years on projects in the proposed bond program. Based on todays known and projected economic indicators and construction market/industry, the City believes that compounded rate is appropriate and is allowing sufficient budget estimating to get the identified scope of work executed. Furthermore, the City retained an outside engineering firm to review and validate the Citys assumptions and projections. Based on what we know today, the City feels that all identified projects can be completed over the five-year period with the funds allocated in the proposed bond program.
