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MR. ENG CONTINUED THAT THE REVISED CONSTRUCTION COST IS $4,764,000, <br />AND THE FOLLOWING PAGE SHOWS THE TOTAL COST OF THE SYSTEM IMPROVE- <br />MENT. HE NOTED THAT THEY HAD A 20% ESCALATION FACTOR, BUT FELT THEY <br />COULD LIVE WITH 15%. THE TOTAL ESTIMATE IS $6,600,000, AND THE ANNUAL <br />EXPENSE WHICH THE SYSTEM HAS TO GENERATE TO BE SELF SUFFICIENT IS <br />IN THE NEIGHBORHOOD OF•$677,495. MR. ENG REPORTED THAT WE HAD 2,500 <br />CONNECTIONS.AVAILABLE; THEY WENT BACK AND INVENTORIED, AND WITH <br />VISTA PROPERTIES AND CUSTOMER SERVICE, FOUND THERE ARE APPROXIMATELY <br />600 ADDITIONAL AVAILABLE AT THE PRESENT TIME. MR. ENG THEN DISCUSSED <br />THE RECORD OF WATER CONSUMPTION IN THE GIFFORD AREA AND IN THE MID <br />FLORIDA, WHICH WAS USED TO COME UP WITH AN AVERAGE OF 71000 GALLONS <br />PER MONTH PER RESIDENTIAL CONNECTION. HE NOTED THAT TABLE II TOOK <br />THE ACTUAL CONNECTIONS THAT ARE AVAILABLE AND PROPOSED A RATE SCHEDULE <br />WITH THE BASE RATE IDENTICAL TO THE NORTH COUNTY-GIFFORD RATE. HE <br />THEN DISCUSSED THE CHARGES FOR THE VARIOUS USERS. MR. ENG REVIEWED <br />TABLE III AND EXPLAINED HOW THEY COMPUTED THE MONTHLY REVENUE SCHEDULE <br />OF $46,000, NOTING THAT RESIDENTIAL GENERATES 80% OF THE TOTAL. <br />THE TOTAL ESTIMATED YEARLY REVENUE IS ABOUT $555,000 OR A DEFICIT <br />OF $122,000 ANNUALLY. MR. ENG CONTINUED THAT THE MOST PROMISING <br />ALTERNATIVE TO MAKE UP THIS DEFICIT, AS DISCUSSED WITH FMHA, WOULD <br />BE A UTILITY TAX, AND SUCH A TAX WOULD WORK OUT TO ABOUT $3.50 PER <br />MONTH PER CONNECTION. HE STATED THAT IF THE COUNTY IS WILLING TO <br />IMPOSE A UTILITY TAX AT THIS TIME, THEY CAN PROCEED WITH THE APPLICA- <br />TION CONFERENCE AND HAVE A LETTER OF CONDITION ISSUED BASED ON THESE <br />RATES AND A UTILITY TAX. MR. ENG CONTINUED THAT BEFORE THE BONDS <br />ARE VALIDATED, ABOUT 10 MONTHS FROM NOW, IF ADDITIONAL CONNECTIONS <br />BECOME AVAILABLE, THEY CAN BE UTILIZED TO AMORTIZE THE PROJECT AND <br />THIS CAN BE ADJUSTED BEFORE THE BOND CLOSING. IF ANOTHER 690 <br />CONNECTIONS CAN BE GENERATED BETWEEN NOW AND THEN, A UTILITY TAX <br />WILL NOT BE NECESSARY, BUT FMHA HAS TO HAVE SOMETHING CONCRETE IN <br />ORDER TO PROCEED. <br />COMMISSIONER SIEBERT FELT IF WE HAVE TO BE SURE ABOUT <br />CONNECTIONS, IT WILL HAVE TO BE MANDATORY HOOK-UP AND MR. ENG AGREED. <br />39 <br />DEC 51979 BOOK 42 FACE 217 <br />