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OCT 16 19 . 79 Boor 4 1 F,{aF 74i <br />RALPH ENG WENT ON TO DISCUS -S THE VARIOUS ALTERNATIVES <br />ACCEPTABLE TO FMHA FOR A MEANS OF SUBSIDIZING THIS SYSTEM AS FOLLOWS: <br />(1) A BOND OR ESCROWED SECURITY DEPOSIT BY DEVELOPERS FOR RESERVE <br />CAPACITY; (2) AN IMPACT FEE AND/OR CONNECTION CHARGE FOR NEW CONNEC- <br />TIONS; (3) A UTILITY TAX ON THE WATER SYSTEM USERS; AND (4) A FRONT <br />FOOT ASSESSMENT CHARGE. MR. ENG THEN DISCUSSED THE INCOME THAT COULD <br />BE GENERATED BY EACH -OF THESE AND THE AFFECT ON THE USER RATE. HE <br />NOTED THAT THE FMHA WOULD ACCEPT THE UTILITY TAX AS A PLEDGE AND <br />WHEN THE SYSTEM BECAME SELF-SUFFICIENT, THEN THE UTILITY TAX WOULD <br />BE DELETED. <br />CHAIRMAN WODTKE COMMENTED THAT WITH THE FOUR OR FIVE UTILITY <br />COMPANIES WE ARE TALKING ABOUT (CUSTOMER SERVICE, VISTA PROPERTIES, <br />MID FLORIDA, ETC.,) WE HAVE 2,500 EXISTING CU-STOMERS. _HE ASKED HOW <br />MANY NEW CUSTOMERS WE COULD PICK UP, <br />MR. ENG ESTIMATED 478 AMONG HOMES THAT ARE ALREADY BUILT <br />IN THIS AREA, <br />CHAIRMAN WODTKE ASKED IF THERE IS TO BE A CHARGE FOR A <br />RESERVE FOR NEW CONSTRUCTION, WOULD YOU ALSO EXPECT THEM TO PAY A <br />$200.00 TIE-IN FEE, AND MR, ENG STATED THEY WOULD NOT; THAT THE <br />DEVELOPER WOULD BE RESPONSIBLE FOR INSTALLING HIS INTERIOR SYSTEM. <br />ENGINEER BEINDORF DISCUSSED A TIME LIMIT FOR RESERVE <br />CAPACITY AND COMMENTED THAT YOU COULD TIE UP ALL YOUR WATER AND <br />NOT HAVE ANY CUSTOMERS. HE CONTINUED THAT IF TROPICAL GARDENS, <br />FRANK ZORC AND OTHERS WERE TO BUILD QUICKLY ENOUGH AND ALMOST USE <br />ALL OF YOUR CAPACITY, THEN YOUR COST PER CUSTOMER WOULD GO DOWN <br />DRAMATICALLY. HE EXPLAINED THAT WE ARE JUST TRYING TO FILL IN THE <br />INTERIM PERIOD, I.E., A UTILITY TAX IS AN INTERIM MEASURE TO REDUCE <br />RATES UNTIL YOU BUILD UP YOUR CUSTOMER LOAD, <br />CHAIRMAN WODTKE ASKED IF A 2.5 MGD PLANT WILL HAVE THE <br />CAPACITY TO SERVE ALL THE AREA WE ARE CONSIDERING. HE NOTED WE <br />ALREADY HAVE 2.500 CUSTOMERS. <br />THE ENGINEERS FELT IT WILL BE CLOSE BUT INFORMED THE .BOARD <br />THAT THE 478 NEW CONNECTIONS ARE INCLUDED IN THE 2,500 FIGURE. THE <br />MAXIMUM AMOUNT OF CUSTOMERS WHO COULD BE SERVICED BY A 2.5 MGP PLANT <br />WOULD BE ABOUT 4,400. <br />= 18 <br />