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MR. BLAND STATED THAT IT SHOULD BE THE SAME EXCEPT THAT <br />FOR A NUMBER OF YEARS THERE HAS BEEN SOME DISCUSSION THAT RACETRACK <br />FUNDS MIGHT BE ELIMINATED, ALTHOUGH OF COURSE, THE STATE WOULD <br />HAVE TO CONTINUE TO SUPPORT THE BONDS, ALSO WITH THE RATE GOING <br />UP, THE BONDS ARE GOING TO HAVE TO ABSORB PRACTICALLY ALL THE <br />RACETRACK FUNDS; SO ONE OF THE FACTORS IS.COVERAGE. <br />MR. HOUGH EXPLAINED THAT THE RATING AGENCIES AND INVESTORS <br />REGARD THE RACETRACK TAXES, EVEN THOUGH. THEY ARE HISTORICALLY <br />STABLE, AS BEING A GAMBLING TAX, AND THEY ARE NOT GIVEN THE SAME <br />DIGNITY AND STABILITY AS STATE REVENUE SHARING. A GAMBLING TAX <br />SEEMS SPECULATIVE TO A RATING AGENCY, AND THIS WOULD HOLD TRUE <br />FOR ANY COUNTY - ALL WOULD HAVE THE SAME RATING. <br />COMMISSIONER LOY NOTED THAT, IN OTHER WORDS, IF WE BACK <br />THE BONDS WITH THAT TYPE OF REVENUE, WE CAN T EXPECT ANYTHING BUT A <br />BAA RATING, AND MR. HOUGH AGREED. <br />MR. BLAND INFORMED THE BOARD THAT IF YOU INSURE THE BONDS, <br />YOU GET AN AUTOMATIC AAA RATING BECAUSE IF THE COUNTY EVER DEFAULTS <br />ON THE BONDS, THE INSURANCE COMPANY IS RESPONSIBLE FOR MAKING GOOD <br />ON THE PRINCIPAL AND INTEREST DUE. HE STATED THAT THEY HAVE LEARNED <br />THAT THE COST OF INSURANCE ON THESE PARTICULAR BONDS WOULD BE ABOUT <br />$110,000, BUT -POINTED OUT THAT YOU WOULD AUTOMATICALLY RECOVER YOUR <br />COST OF THE INSURANCE, PLUS SOME SAVINGS, DUE TO THE FACT THAT THE <br />INTEREST RATES ON THE ONE TYPE OF BOND ARE MUCH LESS THAN ON THE <br />OTHER TYPE OF BOND. <br />MR. HOUGH SUGGESTED THAT THEY GIVE THE BOARD THE NUMBERS FOR <br />TODAY WITH BOND NOTES AND BONDS SO THEY CAN BE DEALING WITH ACTUAL FIG- <br />URES. HE STATED THAT THE TIC (TRUE INTEREST COST) ON A NOTE ISSUE FOR INDIAN <br />RIVER COUNTY WOULD BE 11.207% BASED UPON A FIRM BID WHICH THEY CAN <br />GIVE THE BOARD FOR THEIR ACCEPTANCE THIS MORNING. THE TIC FOR THE <br />BONDS, ALSO BASED ON A FIRM BID, WOULD BE 9.241%, AND IT INCLUDES <br />THE COST OF THE INSURANCE WHICH IS TREATED AS ADDITIONAL INTEREST <br />COST. MR. HOUGH INFORMED THE BOARD THAT THE MARKET HAS CHANGED <br />SUBSTANTIALLY ON NOTES DURING THE LAST WEEK. <br />3 <br />HE CONTINUED THAT <br />im 42 PAGE (W <br />