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Bee Branch Watershed Application, Tab B, Appendix A, (A) SRF Award and Application~\Wl'r,. ~ a ,~ -, ~ Field s of Opportunities CHESTER J. CULVER , GOVERNOR PATTY J UDGE , LT. GOV ERNOR October 4, 2010 Mike Van Milligen , City Manager City of Dubuque 50 West 13 th St. Dubuque , IA 52001 RE : Upper Bee Branch Creek Dubuque, Iowa Subj: SRF Green Reserve Application and Eligibility Dear Mr. Mill igen : STATE OF I O \NA DEPARTMENT OF NATURAL RESOUR CES PATR IC IA L . B O D D Y , INTE R IM DI RECTOR I like to express a thank you to you and your team for your interest in applying for the CWSRF green reserve funding for the Upper Bee Branch Creek project . Your team 's presentation has been most informative. I personally felt encouraged the city has opted for this environmentally friendly approach to solve the flooding and surcharging problems of Upper Bee Branch Cree k sewer . The purpose of this letter is to define the Iowa DNR's role in this project. The Department 's role is twofold . The Department and Iowa Finance Authority are the joint funding agencies for all Iowa 's SRF funded projects . There are other partnerships with some other agencies pertaining to non-point source projects of the SRF program . However, the determination of the Upper Bee Branch Creek project eligibility for SRF funding remains with the Department. Also, the second role of the Department includes evaluation and review of the project from an engineering perspective to meet applicable standards and accepted engineering methods. The Iowa Department of Agricultural and Land Stewardship (IDALS) has offered to consult with your city and its consultants . IDALS is a good resource; and has great experience and expertise in hydro-modification projects . I believe it is a good idea for IDALS to have a site visit and to be in consultation on site . However, unfortunately as a regulatory and a funding agency it would be inappropriate for us to be present in your planning and design meetings or consultations. The Department will have to decline a visit at this time. We can reschedu le for another visit soon and after IDALS has conducted their visit. We will consider our future visit as part of proposal presentation and not for planning and design purposes . In closing , I like to add the project outlined in the City 's briefing dated Sep 20 , 2010 is consistent with EPA's project guidance for the Green Reserve. However, we cannot determine the project 's eligibility at this time until a formal application has been made for IUP inclusion due on Dec 1, 2010. I encourage the City to keep the Department advised during the development of the project's IUP application. 502 EAST 9th STREET / DES MOINES, IOWA 50319-0034 PHONE 515-281 -5918 FAX 515-281-8895 www .iowadnr.gov INVESTING IN IOWA’S WATER July 2010 www.iowasrf.com Clean Water SRF Intended Use Plan Application USE FOR GREEN PROJECTS ONLY This packetincludes the materials and information you need to apply for inclusion on the Clean Water State Revolving Fund (SRF) Intended Use Plan. Please use the checklist below to ensure that your application is complete before submitting it. Instructions are included on the next page. To Be Completed by Applicant For DNR Use Applicant Name: Yes No 1. DNR Project Number (e.g. S2010-####): S  Yes No 2. DNR Project Manager Name: Yes No 3. Project Identification (from DNR Design Schedule A): Yes No 4. Three copies of certified Facility Plan If previously submitted: Certified date: Submitted date: Yes No 5(a). Iowa Construction Permit Application Schedule A Yes No 5(b). Schedules F and G if needed for the project: OR N/A If N/A, state reason Yes No N/A 6. Exhibit 5, SRF Environmental Review Checklist and Attachments Yes No 7. EPA pre-award compliance form completed with DUNS number and authorized signature Yes No 8. Property assurance form completed with authorized signature OR N/A If N/A, state reason Yes No N/A For DNR Use: Decision Date IUP application packet received: Application packet compete Yes No SRF Reviewer: Date: To Be Completed by Applicant For DNR Use 9. Project initiation meeting was held on: Yes No 10. Flows and loads concurrence by DNR on: OR N/A If N/A state reason Yes No N/A 11. Wasteload allocation of concurred flow was completed on: OR N/A If N/A state reason Yes No N/A For DNR Use: Decision The Applicant has followed DNR Construction Permitting Process (Steps 1 - 17) and submitted a Facility Plan at Step 18: Project is considered ready to be placed on the Fundable List Yes No If No, the Project is not ready for FP review and must be placed on the Contingency List Project Manager: _________________ Date: ___________ 2 GabeLee,PE UpperBeeBranchCreekRestoration Project 11/30/10 12/1/10 NA,StormwaterProject Stormwater Project NA,Env.reviewalreadycompletedfor project,FONSIissued(attached) 9/21/2010 Stormwater Project Stormwater Project CityofDubuque,Iowa INVESTING IN IOWA’S WATER July 2010 www.iowasrf.com Clean Water SRF Intended Use Plan Application USE FOR GREEN PROJECTS ONLY Checklist Instructions Item No. 1. All wastewater projects for construction are assigned unique project numbers for tracking by DNR. Projects numbers are given by Ronda Hensley when a project manager is assigned to a project and a file is created. Her telephone number is 515-281- 8982. Item No. 2. A project manager is assigned to each SRF project after an initial contact to the Department as described in Steps 2 and 3 of the wastewater construction permitting process manual. Item No. 3. A brief description of the project is required in Design Schedule A, General Information. The project description must fall under the project scope established at the project initiation meeting. An accurate description is necessary because multiple construction contracts may have the same project number. Item No. 4. At Step 18 (after completing Steps 1 through 17 of the wastewater construction permitting procedures), submit three copies of the Facility Plan (FP) certified by an Iowa licensed professional engineer along with the applicable design schedules and Intended Use Plan (IUP) application. Three copies of the FP are not required with an IUP application submittal if the FP has been submitted previously to the wastewater engineering section. However, an IUP application without the FP included must reference the actual certification and submittal dates. Item No. 5 (a). Design Schedule A must be certified by both the applicant and the design engineer. This form is required for all wastewater projects. Design Schedule A should indicate that CWSRF loan funds will be requested. Item No. 5 (b). Design Schedules A, F and G are required for a site survey request, Paragraph 567 IAC 60.4(1)“c”. Item No. 6. The environmental review checklist is provided as Exhibit 5. This checklist and information must be included as an attachment to the IUP application. Item No. 7. The EPA Pre-Award Compliance form must be completed, signed, and submitted to DNR with the IUP application. A DUNS number for the applicant is required. If the applicant does not have a DUNS number, go to http://fedgov.dnb.com/webform to request one. This form must be approved by the U.S. Environmental Protection Agency before a CWSRF loan can be signed. Item No. 8. Purchase of land typically is not eligible for the Clean Water SRF. Please check with your project manager to confirm. However, if land is being purchased for the project, the applicant must comply with federal property acquisition requirements and submit this form. Item No. 9. The project initiation meeting is Step 9 of the wastewater construction permitting procedures. If CWSRF funding program requirements were not anticipated and discussed at the project initiation meeting, a second project initiation meeting is required. A second project initiation also may be needed if a project has been inactive or the project scope is revised. The proposed project must be in conformance with the long range planning of the area. The project initiation meeting may include representatives from the Iowa Finance Authority and the DNR Field Office, NPDES permits section and Environmental Review (ER) services. Project coordination and a determination of readiness for FP review is intended to improve staff efficiency and should not be confused with the readiness criteria of other funding agencies (e.g., IFA, INVESTING IN IOWA’S WATER July 2010 www.iowasrf.com IDED, USDA, EPA, etc.). If the information requested in Items No. 1 through No. 6 has been addressed, but Steps 1-17 of the wastewater construction permitting procedures have not been followed, the project will remain on the IUP contingency list until it can be added to the fundable list. Item No. 10. DNR concurrence with the proposed design flows and loadings is Step 12 of the wastewater construction permitting procedures. Our agreement with the proposed design criteria will be forwarded to the applicant in writing by the project manager. Item No. 11. The waste load allocation (WLA) for preparation of the FP must be based on current rules (including all applicable TMDLs) and the DNR concurred design flows and loadings per Steps 11 and 12. A WLA might not be necessary for projects involving only sewers, pumping stations or sludge handling. Most WLAs prior to 2006 are outdated. All WLA requests after the project initiation meeting should be routed through the project manager. The WLA is calculated by the Water Resources Section (Step 14). July 2010 Page 5 of 10 Section 2: Project Schedule Anticipated facility plan approval date: Anticipated preliminary plans and specifications submittal date: Anticipated final plans and specifications submittal date: Anticipated construction notice to proceed date: Anticipated loan agreement execution date: Section 3: Project Information (Attach additional pages if necessary.) Green Project Category (check all that apply) Water efficiency Energy efficiency Green infrastructure Other environmentally innovative project Describe the reasons or the needs for the proposed project: (i.e. specific water quality problem or system improvement) Describe the scope of the proposed project: (i.e., specific solution to the water quality problem, or proposed system improvement). Explain how the project is eligible for the green project category or categories checked above. Outline the expected project results, e.g. for water efficiency projects, indicate percent of water loss reduced; for energy efficiency projects, percent savings or reductions in kWh, KW, or therms; for other projects, describe environmental and water quality benefits. Some green projects may require a business case. Which other funding programs are you considering to assist in completion of this project? Check all that apply: Community Development Block Grant (CDBG) Rural Development Grant and/or Loan Reserve Funds Other: January1,2011 April1,2011 June1,2011 September1,2011 September1,2011 RECAT&FEMAHMGP(eligibilityisinquestionforboth) The daylighting of the Bee Branch Creek will improve water quality by exposing the now buried creek to air, sunlight, vegetation, and soil, all of which will help transform, bind up, or otherwise neutralize pollutants. Exposing the creek to sunlight air, and soil allows growth of aquatic and riparian vegetation that will improve water quality by taking up organic and inorganic pollutants. It will result in a 20% improvement in dissolved oxygen; a 13% reduction is suspended sediment, a small reduction in phosphorus, nitrogen, and lead; and a 15% reduction in bacteria. Finally, daylighting the creek will increase the biodiversity within the creek and the restored floodplain. Attachment 2, Green Project Preserve: Guidance for Determining Project Eligibility, states that the “EPA used an inclusive approach to determine what is and is not a `green' water project.” And Public Law 111-88 indicates that State's must make available grant funding for “projects to address green infrastructure . . . or other environmentally innovative activities.” The proposed design of the Upper Bee Branch Creek Project creek is consistent with the EPA's definition of a “green” project and certainly qualifies as an innovative project. Attachment 2 also outlines “categorically eligible projects.” And Section 1.2-7 of Part A - CWSRF, establishes that creek day lighting is a Categorical (Green Infrastructure) Project. July 2010 Page 6 of 10 Section 4: Project Cost Cost Category Total Estimated Project Costs Costs to be Covered from Other Funds Allowable Loan Costs Administrative Expenses Legal Expenses Land and Easements Relocation Expenses Engineering Planning Fees Engineering Design Fees Engineering Construction Fees Construction Equipment Interest During Construction Miscellaneous PROJECT SUBTOTAL Supporting materials may be requested to document funding requests and system needs. SRF staff will evaluate eligibility for green project reserve and determine the percentage of principal forgiveness that will apply to the final SRF loan amount. A loan initiation fee of 1% will be charged on the non-forgivable loan portion. Please include the following items with your application: Three official copies of the Facility Plan.Some green projects may require less planning than a traditional wastewater project; please check with DNR staff. The scope of the FP should be established at the project initiation meeting. Iowa Construction Permit Application Schedules A, F and G, if applicable. Design Schedule A is required for all projects. Materials included in Exhibit 5: SRF Environmental Review Checklist, if applicable. An environmental review is not required for projects classified as “nonpoint source.” $8,145,000 $8,145,000 $918,000 $918,000 $450,000 $450,000 $22,390,000 $8,991,000 $13,399,000 $31,903,000 $17,136,000 $14,767,000 S f ec Ion 5 EPA P A re-war de r ompllance FORM Approved OMB No . 2030-0020 Expires: 12-31-2011 United States Environmental Protection Agency Washington, DC 20460 Preaward Compliance Review Report for All Applicants Requesting EPA Financial Assistance Note: Read Instructions on next Qage before comQleting form. I. ApplicantlRecipient (Name, Address, State, Zip Code) I DUNS No. City of Dubuque, Iowa; 50 West 13th Street, Dubuque, Iowa, 52001 (IA) 093105302 II. Is the applicant currently receiving EPA assistance? Yes III. List all civil rights lawsuits and administrative complaints pending against the applicant/recipient that allege discrimination based on race, color, national origin, sex, age, or disability. (Do not include employment complaints not covered by 40 C.F.R. Parts 5 and 7. See instructions.) McDonough vs. City of Dubuque, Iowa Civil Rights Commission file: 04-09-57044; Webb vs . City of Dubuque Iowa , Iowa Civil Rights Commission file : 12-08-56484 IV. List all civil rights lawsuits and administrative complaints decided against the applicant/recipient within the last year that allege discrimination based on race, color, national origin, sex, age, or disability and enclose a copy of all decisions . Please describe all corrective action taken. (Do not include employment complaints not covered by 40 C.F.R. Parts 5 and 7. See instructions.) None V. List all civil rights compliance reviews of the applicant/recipient conducted by any agency within the last two years and enclose a copy of the review and any decisions, orders, or agreements based on the review. Please describe any corrective action taken (40 C.F.R.§ 7.80(c)(3)) None . VI. Is the applicant requesting EPA assistance for new construction? Ifno, proceed to VII; if yes, answer (a) and/or (b) below. Yes a. Ifthe grant is for new construction, will all new facilities or alterations to existing facilities be designed and constructed to be readily accessible to and usable by persons with disabilities? If yes, proceed to VII; if no, proceed to VI(b). Yes b. If the grant is for new construction and the new facilities or alterations to existing facilities will not be readily accessible to and usable by persons with disabilities, explain how a regulatory exception (40 C.F.R. § 7.70) applies . VII. * Does the applicant/recipient provide initial and continuing notice that it does not discriminate on the basis of race, color, national origin, sex, age, or disability in its programs or activities? (40 C.F.R. § 5.140 and § 7.95) a. Do the methods of notice accommodate those with impaired vision or hearing? Yes b. Is the notice posted in a prominent place in the applicant's offices or facilities , or, for education programs and activities , in appropriate periodicals and other written communications? Yes c. Does the notice identify a designated civil rights coordinator? Yes VIII.* Does the applicant/recipient maintain demographic data on the race, color, national origin, sex, age , or handicap of the population it serves? (40 C.F.R. § 7.85(a)) Yes IX.* Does the applicant/recipient have a policy/procedure for providing access to services for persons with limited English proficiencY?Yes x.* If the applicant/recipient is an education program or activity, or has 15 or more employees, has it designated an employee to coordinate its compliance with 40 C.F.R. Parts 5 and 7? Provide the name, title, position, mailing address, e-mail address, fax number, and telephone number of the designated coordinator. Yes, See attachments XI.* If the applicant/recipient is an education program or activity , or has 15 or more employees, has it adopted grievance procedures that assure the prompt and fair resolution of complaints that allege a violation of 40 C.F.R. Parts 5 and 7? Provide a legal citation or Internet address for, or a copy of, the procedures. Yes, See attachments For the ApplicantlRecipient I certify that the statements I have made on this form and all attachments thereto are true, accurate, and complete. I acknowledge that any knowingly false or misleading statement may be punishable by fme or imprisonment or both under applicable law. I assure that I will fully comply with all applicable civil rights statutes and EPA regulations. ~~i ~~aAu~~:J f.~\i~~~/(1VJ B. Title of Authorized Official C. Date City Manager 12/1/2010 I v V~ V .~ l: For the U.S. Environmental Protection Agency I have reviewed the information prOVIded y the applicant/recipient and hereby certify that the applicant/recipient has submitted all pre award compliance information required by 40 C.F.R. Parts 5 and 7; that based on the information submitted, this application satisfies the pre award provisions of 40 C.F.R. Parts 5 and 7; and that the applicant has given assurance that it will fully comply with all applicable civil rights statutes and EPA regulations. A. Signature of Authorized EPA Official B. Title of Authorized EPA Official C. Date See * * note on next page. EPA Form 4700-4 (Rev. 3/2008). Previous editions are obsolete. July 2010 Page 7 of 10 July 2010 Page 8 of 10 July 2010 Page 9 of 10 Section 6: Acquisition of Property by SRF Applicants Note: Purchase of land typically is not eligible for the Clean Water SRF. Please check with your project manager to confirm. U.S. ENVIRONMENTAL PROTECTION AGENCY ASSURANCE WITH RESPECT TO REAL PROPERTY ACQUISITION OF TITLE III OF THE UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970 AS AMENDED The  (Applicant) hereby assures that it has authority under applicable State and local law to comply with Section 213 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91-646, 84 Stat. 1894 (42 U.S.C. 4601) as amended by the Surface Transportation and Uniform Relocation Assistance Act of 1987, Title IV of Public Law 100-17, 101 Stat. 246-256 (42 U.S.C. 4601 note) and 49 CFR 1.48(cc); and certifies, assures and agrees that, notwithstanding any other provision set forth in the application. 1. For projects resulting in the displacement of any person: a. It will adequately inform the public of the relocation payments and services which will be available as set forth in Subparts A, C, D and E of 49 CFR 24. b. It will provide fair and reasonable relocation payments to displaced persons as required by Subparts D and E of 49 CFR 24. c. It will provide a relocation assistance program for displaced persons offering services described in Subpart C of 49 CFR 24. d. Comparable replacement dwellings will be available pursuant to Subpart F of 49 CFR 24, or provided if necessary, a reasonable period in advance of the time any person is displaced. e. In acquiring real property, it will provide at least 90 days written notice to each lawful occupant of real property acquired, stating the date such occupant is required to move from a dwelling or to move his business or farm operation. 2. For projects resulting in the acquisition of real property: a. It will fully comply with the requirements of Subpart B of 49 CFR 24. b. It will adequately inform the public of the acquisition policies, requirements and payments which apply to the project. c. It will make every effort to acquire real property expeditiously through negotiation. CityofDubuque(IA) State Revolving Fund Loan Application Applicant: City of Dubuque Tax ID Number: NPDES Number (if applicable): NA PWSID Number (if applicable): Contact person/Title: Address: City County State IA Zip Code: Telephone Number: Fax Number: E-mail address: Amount of Loan Request: $ 7,850,000 Clean Water SRF or Drinking Water SRF (circle one) Description of project: Lower Bee Branch Creek Restoration Project Have you obtained all permits and authorizations required for this project? (DNR technical staff can inform you of the permits and authorizations needed for your project.) Yes No N/A Date Obtained Date Expected Operating Permit Construction Permit 8/12/10 Others: 6/23/10 Is the system under any regulatory compliance order?  Yes  No Have construction bids been awarded?  Yes  No If no, what is the projected bid award date? What is the expected construction start date? What is the expected project completion date? Clean Water SRF (Sanitary Sewer) Clean Water SRF (Storm Sewer)  Treatment  Storage/Detention  Infiltration/inflow correction  Treatment  Sewer system rehabilitation  New collectors to existing communities  Interceptor/Trunk Line  New interceptors  Collector  Correction of Combined Sewer Overflow  Other  Non Point Source Project Drinking Water SRF  Treatment  Storage  Transmission & Distribution  purchase or consolidation of systems  Source (wells)  land acquisition 42-6004596 52001 Dubuque Dubuque Kenneth J. TeKippe, Finance Director 50 West 13th Street 563.589.4133 ktekippe@cityofdubuqe.org 563.589.0890 X X X X X X X 8/30/10 9/10/11 2 PROFESSIONAL CONSULTANTS (provide if known) Project Engineer: Strand & Associates Name of Contact Person: Mike Bridwell, PE Mailing Address: 910 West Wingra Drive City, State, and Zip Code: Madison, WI 53715 Telephone Number: 608.251.4843 E-mail address: mike.bridwell@strand.com Bond Counsel: Ahlers & Cooney, LLP Bond Counsel: William Noth Mailing Address: 100 Court Ave. City, State, and Zip Code: Des Moines, IA 50309-2256 Telephone Number: 515-246-0332 E-mail address: wnoth@ahlerslaw.com Financial Advisor (if any): Name of Contact Person: Mailing Address: City, State, and Zip Code: Telephone Number: E-mail address: SOURCE OF FUNDS/COST BREAKDOWN FOR PROJECT Source of Funds Amount requested from SRF (this application) $ 7,772,500 Federal grant or loan- Specify $ Applicant’s share (GO Bonds) $ 4,744,600 Other- Specify (I-JOBS II Grant) $ 3,965,500 Total Source of Funds $ 16,482,600 Project Cost Breakdown Administrative & Legal expenses $ Land and easements $ 2,618,100 Relocation expenses $ Planning & Design expenses $ 1,040,000 Engineering construction fees $ 369,900 Construction $ 8,760,400 Equipment $ Interest during construction $ Miscellaneous $ Contingency $ 844,200 Other- Specify (Bridge Construction) $ 2,850,000 Total Project Cost $ 16,482,600 Minus Funds from other sources($ 8,710,100 ) SRF Loan Request $ 7,772,500 1% origination fee (.01 x SRF amount) $ 77,725 Total SRF Loan (Rounded to Nearest $1,000) $ 7,850,000 3 Type of debt requested (check one): G.O. Revenue Combination If GO – Has bond counsel calculated GO debt capacity for this project?  Yes  No If Yes – enter debt capacity information Constitutional Debt Limit $174,325,144 Outstanding constitutional debt $ 99,701,067 Constitutional Debt Capacity $ 74,624,077 Remaining % of capacity left 42.81 % If No – STOP – application cannot be completed without this analysis – contact bond counsel ASAP to calculate debt capacity If Revenue: Do you have any outstanding debt payable from the system revenues?  Yes  No If Yes, please list: Existing System Debt: Current Balance Interest Rate Year Issued Maturity Date Annual Payment (Principal + Interest) Revenue Bonds (SRF) 1,268,8203.252009202886,774 Revenue Bonds (SRF) 688,3713.252008202746,454 Revenue Bonds (SRF) 419,1703.252009202828,667 Revenue Bonds (SRF) 1,689,5713.2520092028126,215 GO Bonds 1,510,0004.2720032023153,908 GO Bonds 1,405,0004.2820052024132,973 GO Bonds 2,480,0004.1720062025219,788 GO Bonds 3,645,0004.5720082028303,590 GO Bonds 1,155,0003.292009202978,693 Other Debt (Payable from System Revenues) Has bond counsel reviewed parity debt provisions for outstanding debt?  Yes  No Have ordinances related to rates been adopted for financing this project?  Yes  No If no – is the city planning on adopting ordinances?  Yes  No If yes – When will these ordinances be adopted? If no – Why are new ordinances not being adopted? How much of the SRF loan being requested, if any, will be used to refinance existing debt? $ 0.00 Does your system or city have a current bond rating?  Yes  No  I don’t know If yes, what is it? Aa1 Which rating agency rated your city? Moody’s S&P Fitch X X X X X X 4 Summary Statement of Revenue and Expenditures for System REVENUES 2 years ago Last Year Current Year Next Year 2 yrs from now Residential 1,143,603 1,160,9201,515,7161,647,078 2,047,671 Non-Residential 1,005,914 1,064,6951,390,0841,510,558 1,877,947 Deferred Charges Other- Misc. Rev. & Fees 121,057 109,287122,017132,999 164,918 TOTAL REVENUES: $ 2,270,574 $ 2,334,902 $ 3,027,817 $ 3,290,635 $ 4,090,536 EXPENDITURES: Operation and Maintenance 466,213 470,332(75,281)(77,539) (79,866) Depreciation and Amortization Other- Net transfer to Construction 293,449 (32,172)3,665,633931,643 747,959 TOTAL EXPENDITURES: $ 759,661 $ 438,160 $ 3,590,352 $ 854,104 $ 668,093 NET OPERATING INCOME: $ 1,510,912 $ 1,896,742 $ (562,535) $ 2,436,531 $ 3,422,443 OTHER INCOME: Interest & Inv. Earnings 76,067 46,50720,00025,000 30,000 Other: Explain TOTAL OPERATING AND OTHER INCOME: $ 1,586,980 $ 1,943,248 $ (542,535) $ 2,461,531 $ 3,452,443 INCOME DEDUCTIONS: Interest on debt 359,408 471,919645,962827,843 845,823 Debt Retired 443,000 490,0001,581,6491,606,455 1,626,354 Other- Explain NET INCOME: $ 784,572 $ 981,330 $ (2,770,146) $ 27,233 $ 980,266 RETAINED EARNINGS: Beginning of Year: $ 2,751,259 $ 3,535,831 $ 4,517,160 $ 1,747,014 $ 1,774,247 Ending of Year: $ 3,535,831 $ 4,517,160 $ 1,747,014 $ 1,774,247 $ 2,754,513