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MEMORANDUM July 12, 1979 TO: Alma Lee Loy, Vice Chairman, Board of County Commissioners FROM: L. S. "Tommy" Thomas, Interaovernmental Coordinator SUBJECT: Hospital and Court House Renovation Finances Joe Collins, County Attorney, has recommended that we proceed to start on the necessary arrangements for financing the renovation of the old hospital building and the present Court House. Based on the time schedule for periods of construction, we should have about the same schedule now for completing the financial arrangements. Attached are two letters from Wfilliam R. Hough & Co. outlining the various ways which we can finance this construction. Also enclosed are amortization sheets which show the comparative interest costs between 20, 25, and 30 year bond issues. I would like to point out that the interest on the 30 year bond is almost two million dollars more than on the 20 year. Two factors are involved, one is that the shorter term bond carries a lesser interest rate as indicated by these charts. The other factor is, of course, the length of time the interest has to be paid. The balance of these letters I believe, is self-explanatory. At this time I would recommend using the "race track" funds -as collateral for repayment of this bond issue. I believe that by using them we will get a more favorable interest rate and, if in the future, the State of Florida attempts to use these funds for other purposes, it is my understanding khat they will have to assume the indebted- ness represented by the bonds. I would recommend as a first step for the Board of 'County Connnissioners to authorize whatever bond company they may choose to represent us. Also, authorization should be given to employ whatever bond council and other council that will be necessary. them. If there is any further questions at this time, I will certai• nly try to answer • P L. S. T. T. LSTT:1h enc. JUL 181979 BOOK 41. PA. G E 2