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ATTORNEY BOGOSIAN CONTINUED THAT THERE HAS BEEN NO REQUEST FOR <br />AN INCREASE IN RATES SINCE THE FRANCHISE WAS ORIGINALLY GRANTED IN 1960, <br />HE STATED THAT THIS UTILITY -IS NOW UNDER CITATION BY THE STATE OF FLORIDA <br />DEPARTMENT OF POLLUTION CONTROL. HE CONTINUED THAT A FINANCIAL STATEMENT <br />PREPARED BY MR. EDELSTEIN HAS BEEN SUBMITTED TO THE BOARD AND ALSO AN <br />ESTIMATE OF THE COST OF IMPROVING THE SYSTEM TO MEET STATE STANDARDS, <br />WHICH COMES TO ABOUT $145,000 FOR REPLACING BOTH THE WATER AND THE SEWER <br />PLANT. THE AUDIT REPORT SETS OUT $100,000 FOR THESE IMPROVEMENTS, BUT <br />MR. BOGOSIAN STATED THIS FIGURE NOW MORE REALISTICALLY IS ESTIMATED AT <br />$5145,000 AND TO ACCOMPLISH ALL THE IMPROVEMENTS THE STATE REQUIRES,.THE <br />ADDITIONAL ENGINEERING AND SITE WORK WILL BRING THE FIGURE UP AROUND <br />$170,000. <br />ATTORNEY BOGOSIAN STATED THAT HE REALIZED PERCENTAGEWISE THE <br />INCREASES THEY ARE REQUESTING ARE TREMENDOUS INCREASES, BUT THE STATE <br />DID NOT COME TO THEM IN STAGES AND THEY MUST HAVE THE MONEY IN ORDER TO <br />MAKE THE REQUIRED IMPROVEMENTS. HE FELT IF YOU WERE TO ESTIMATE A FAIR <br />RATE OF RETURN, THE RATES REQUESTED ARE NOT OUT OF LINE AND BELIEVED <br />THEY CAN BE JUSTIFIED WITHOUT EVEN HAVING TO TAKE INTO CONSIDERATION THE <br />REQUIRED IMPROVEMENT'S. <br />ATTORNEY COLLINS SAID ASSUMING A RATE INCREASE IS GRANTED, <br />WHAT ASSURANCE DOES THE BOARD HAVE THAT THE IMPROVEMENTS WILL BE MADE? <br />ATTORNEY BOGOSIAN SUGGESTED THAT COULD BE MADE ONE OF THE <br />CONDITIONS OF THE RATE INCREASE, <br />ATTORNEY COLLINS ASKED WHAT ABOUT A BOND—TYPE SITUATION? <br />MELVIN TAKEN POINTED OUT THAT EVEN IF THE INCREASE WERE GRANTED, <br />THEY WILL HAVE TO BORROW THE MONEY TO MAKE THE IMPROVEMENTS AND HE COULD <br />NOT SEE POSTING A BOND TO DO THE IMPROVEMENTS WHEN THEY HAVE TO BORROW THE <br />MONEY TO ACCOMPLISH THIS. ALSO THE BANK UNDOUBTEDLY WOULDN'T LOAN THE <br />MONEY WHILE THE COMPANY CONTINUED TO OPERATE UNDER THE EXISTING RATESe <br />CHAIRMAN SIEBERT THEN QUESTIONED SINCE A UTILITY COMPANY WAS <br />j NECESSARY FOR THE DEVELOPMENT OF THE LAND, IS THAT UTILITY COMPANY <br />ENTITLED TO A PROFIT AND NOTED THAT THE TANENS WERE THE ORGINAL DEVELOPERS <br />OF IXORA PARK, <br />go <br />5 , 20 <br />. hR. <br />