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THIS PROPOSAL WOULD LEAVE THE FOLLOWING DEBT: OLD DEBT $457,000,00 DELINQUENCY 143,.000.00 NEW LOAN 42,200.00 TOTAL DEBT $642,200.00 CHAIRMAN WODTKE EXPLAINED THAT ON THE ABOVE BASIS, FHA PRO- POSED A RATE OF $9.75 AS THE AVERAGE RATE FOR 475 CUSTOMERS BASED ON THE OLD DEBT. THE RATE ON THE NEW TOTAL DEBT WOULD AVERAGE $11,30, CHAIRMAN WODTKE THEN PROPOSED THAT THE COUNTY PURCHASE U.D.U. AND PRESENTED THE FOLLOWING FIGURES: PURCHASE PRICE OF U,D,U $ . 75.,000.00 FMHA GRANT TO COUNTY 427,500,00 FMHA LOAN TO COUNTY 402,500.00 EDA GRANT 365,000,00 TOTAL $1,270,000,00 .SUMMARY: TRANSMISSION LINES & STORAGE TANKS $ 670,000,04 IMPROVEMENTS & EXTENSIONS 525,000,00 PURCHASE PRICE 75,000,00 TOTAL $1,270,000,00 CHAIRMAN WODTKE PROPOSED THAT THE $75,000.40 PURCHASE PRICE FOR U.D.U. BE PAID OUT OF FEDERAL REVENUE SHARING AND THE ONLY INDEBT- EDNESS PLACED AGAINST THE SYSTEM WOULD BE THE $402,500.00 LOAN FROM FHA. HE STATED.THAT THE COUNTY ENGINEERS, USING THE SAME CRITERIA AS THE FHA, FIGURE THAT THIS WOULD RESULT IN AN AVERAGE RATE OF $8,85, HE FURTHER NOTED THAT SHOULD THE COUNTY PURCHASE THE U.D.U, FRANCHISE, THE FRANCHISE BOUNDARIES WOULD NO LONGER EXIST. CHAIRMAN WODTKE POINTED OUT THAT THE DEBT REQUIREMENT IS A FIXED COST, BUT AS CUSTOMERS ARE ADDED TO THE SERVICE IT WOULD LOWER THE RATE STRUCTURE, CHAIRMAN WODTKE NOTED THAT FHA's PROPOSAL ADDRESSED ONLY WATER AND THAT ONLY IN THE U.D.U. FRANCHISE AREA WHERE THERE ARE AL- READY LINES AND USERS, THE COUNTY'S PROPOSAL,HOWEVER, WOULD COVER BOTH WATER AND SEWER TO BE EXPANDED OVER THE ENTIRE AREA AS THE DEMAND ARISES. THE CHAIRMAN NOTED THAT IF THE COUNTY'S PROPOSAL IS AGREED TO BY ALL CONCERNED, IT WILL BE ABSOLUTELY NECESSARY TO ESTABLISH A COMMITTEE TO REPRESENT THE GI.FFORD AREA AND HAVE THE SUPPORT OF THE ENTIRE COMMUNITY TO HELP US MAKE DECISIONS ON WHERE TO EXPAND. 2 • R� 30 P,1cr 416 SEP 2 1977