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INTERGOVERNMENTAL COORDINATOR THOMAS EXPLAINED THAT THIS <br />TOPIC WILL COME UP AGAIN ON ITEM 7 TODAY, AND THAT THE ENGINEERS <br />FEE AND THE LAND ACQUISITION HAD NOT BEEN INCLUDED IN THE ORIGINAL <br />VALUE OF THE PROJECT. HE CONTINUED THAT BECAUSE OF THE CHANGE IN THE <br />ENGINEERING AND THE REQUIREMENTS FOR THE DEPARTMENT OF ENVIRONMENTAL <br />REGULATION, THEY HAVE ACCUMULATED ABOUT $40,000 IN ADDITIONAL <br />ENGINEERING FEES. MR. THOMAS STATED THAT THEY DO NOT HAVE ANYTHING <br />IN THE CURRENT BUDGET TO TAKE CARE OF THESE ITEMS AND THEY WERE <br />RELUCTANT TO TAKE IIT OUT OF CONTINGENCY. HE ADDED THAT HE DOES HAVE <br />A REPORT ON THE PRELIMINARY WORK ON THE METHODS OF FINANCING ON A <br />PERMANENT BASIS, AS WELL AS ON ALL BOND ISSUES. MR. THOMAS FELT <br />THAT $300,000 WOULD BE SUFFICIENT TO CARRY THEM UNTIL THEY NEED THE <br />PERMANENT FINANCING, AND REQUESTED AUTHORITY TO ISSUE TAX ANTICIPATION <br />NOTES. HE NOTED THE TWO REASONS FOR USING TAX ANTICIPATION NOTES ARE <br />THAT THEY CAN BE DONE LOCALLY, AND IF BOND ANTICIPATION NOTES ARE <br />USED, THEY MUST BE VALIDATED, WHICH IS EXPENSIVE AND TIME CONSUMING. <br />DISCUSSION FOLLOWED ALONG THOSE LINES. <br />MR. THOMAS EXPLAINED THAT THE TERM "ARBITRAGE" IS BEING <br />ABLE TO BORROW MONEY AND IMMEDIATELY REINVESTING IT AT A HIGHER <br />RATE, AND NORMALLY ONLY LOCAL GOVERNMENTS CAN DO THIS. <br />CHAIRMAN LYONS COMMENTED THAT THE COUNTY WANTS TO BE SURE <br />THEY HAVE PLENTY OF CASH ON HAND. <br />MR, THOMAS STATED THERE WAS NO QUESTION THAT THIS PROCEDURE <br />WOULD BE ACCEPTABLE TO THE INTERNAL REVENUE SERVICE. <br />COMMISSIONER WODTKE EXPRESSED CONCERN OVER THE PROCEDURE <br />AND PREFERED THE COUNTY DRAW DOWN IN INCREMENTS OF $50,000 AS NEEDED, <br />BUT MR. THOMAS DID NOT AGREE WITH THAT METHOD. <br />MOTION WAS MADE BY COMMISSIONER SCURLOCK, SECONDED BY COM- <br />MISSIONER BIRD, THAT THE BOARD AUTHORIZE INTERGOVERNMENTAL COORDINATOR <br />THOMAS TO PROCEED WITH THE ISSUANCE OF TAX ANTICIPATION NOTES IN THE <br />AMOUNT OF $300,000 IN INCREMENTS OF $50,000 OR $100,000. <br />THE CHAIRMAN CALLED FOR THE QUESTION. IT WAS VOTED ON <br />AND CARRIED WITH A VOTE OF 4 TO 1, WITH COMMISSIONER FLETCHER VOTING <br />IN OPPOSITION. <br />MR. THOMAS ADVISED THAT HE WOULD DISCUSS THE RATE OF <br />INTEREST WITH THE BOARD AT A LATER DATE. <br />DEC 31980 5 <br />