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MAR 12 1980 BOOK 42 PAGE 911> MR. HOUGH NOTED THAT EVERY DAY THEY DONT SELL THE BONDS, THEY HAVE TO CHANGE THE RATES. COMMISSIONER WODTKE ASKED HOW FAR THE RATE WILL HAVE TO GO UP ON THE NOTES BEFORE WE GET IN A PROBLEM WITH OUR RACETRACK FUNDS NOT BEING SUFFICIENT SECURITY, AND MR. BLAND STATED IT WOULD BE $424,000 PER YEAR PLUS OR MINUS A SMALL AMOUNT - THE DEBT SERVICE PER YEAR ON THE BONDS. FINANCE OFFICER BARTON NOTED THAT THE RACETRACK FUNDS ARE $446,500 PER YEAR, OR JUST A LITTLE OVER ONE TIMES COVERAGE, AND AT PRESENT ALL COUNTIES GET THE SAME AMOUNT, COMMISSIONER WODTKE ASKED WHAT A 1% RATE INCREASE IN THE BOND MARKET WOULD DO TO THE DEBT SERVICE, APPROXIMATELY, AND MR. HOUGH STATED THAT IT WOULD BE ABOUT $30,000, ACTUALLY ABOUT $40,000 THE FIRST YEAR AND IT WOULD GRADUALLY DECLINE AS YOU PAID OFF THE COMMISSIONER WODTKE STATED THAT, IN OTHER WORDS, IF IT WENT UP 1%, THE RACETRACK FUNDS WOULD NOT BE SUFFICIENT, AND MR. BLAND NOTED THAT THE INTEREST EARNED ON THE RESERVE ACCOUNT IS PLEDGED ALSO. COMMISSIONER WODTKE NOTED THAT IF WE WENT TO THE BOND MARKET, IT WOULD HAVE TO DROP 2% BEFORE IT WOULD BE PROFITABLE TO DEFEASE. CHAIRMAN SIEBERT FELT THE BOARDS ATTORNEY WILL HAVE TO REVIEW THE DOCUMENTS, AND ATTORNEY COLLINS STATED THAT HE HAS LOOKED AT MOST OF THE DOCUMENTS AND DID NOT FEEL THE LEGAL WOULD HOLD US UP. CHAIRMAN SIEBERT COMMENTED THAT IT SEEMS THREE BOARD MEMBERS PREFER THE BONDS AT THIS POINT AND ASKED IF COMMISSIONERS LOY AND WODTKE WISHED TO COMMENT. COMMISSIONER LOY NOTED THAT EVERY TIME SHE SAYS THE INTEREST RATE CAN T GO UP, IT GOES UP SOME MORE. DISCUSSION CONTINUED IN REGARD TO INSURED BONDS VERSUS UNINSURED BONDS, AND INTERGOVERNMENTAL COORDINATOR THOMAS STATED 12