Projects Fund during calendar year 2022. No budgetary entries other than encumbrances should be recorded. 1. The city receives $6,820,000 from the bond issuance. The face amount of the bonds is $6,600,000. 2. The city signs a contract with the lowest bidder, Mary Michel Construction, to build the road at a cost of $7,920,000. 4. The city pays the amount owed to the contractor less the retainage. 5. The city meets the spending provisions of the expenditure-driven construction grant and receives payment from the state. 6. The city inspector approves the construction project and the contractor is paid the retainage