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SOUTH COUNTY WATER SYSTEM - INTERIM-FINANOING <br />STAN LEVINGOOD FROM ARCH W. ROBERTS & CO. CAME BEFORE <br />THE BOARD AND REVIEWED THEIR PROPOSAL TO PROVIDE FINANCING FOR <br />THE SOUTH COUNTY WATER SYSTEM. HE FELT VERY COMFORTABLE THAT THE <br />PROPOSAL WAS APPROXIMATELY $200,000 LESS EXPENSIVE TO THE COUNTY <br />THAN THE FMHA INTERIM DRAWS. MR. LEVINGOOD REPORTED THE PURCHASE <br />AGREEMENT DEFINES THE PRICE AT WHICH THEY WERE OFFERING TO PURCHASE <br />$5,825,000 WORTH OF NOTES FROM THE COUNTY AT AN INTEREST RATE <br />SPECIFIED AT 9.20. HE CONTINUED THAT THIS PURCHASE PROPOSAL <br />BASICALLY SAYS THAT IF THE BOARD APPROVES IT, IT WOULD AUTHORIZE THE <br />UNDERWRITERS TO IMMEDIATELY GO OUT AND PURCHASE U.S. TREASURY <br />OBLIGATIONS THAT WOULD MEET THE FOLLOWING CASH REQUIREMENTS: <br />1. WOULD PAY ALL ISSUANCE EXPENSES OF THE NOTE FINANCING; <br />2. WOULD PAY OFF THE TAX ANTICIPATION NOTE COMING DUE JUNE 15TH; <br />3. WOULD PAY INTEREST ON THE NOTES UNTIL THEY MATURE - OCTOBER 1, 1982; <br />4. PAY ALL THE CONSTRUCTION DRAWS AS PROVIDED BY THE COUNTY'S <br />ENGINEERS, SVERDRUP & PARCEL; AND <br />5. ON OCTOBER 1, 1982, IT WOULD PROVIDE SOME CASH LEFT OVER - <br />APPROXIMATELY $200,000. <br />ATTORNEY COLLINS ADVISED'THE BOARD THAT HE REVIEWED THE <br />PURCHASE AGREEMENT ALONG WITH THE COUNTY STAFF. <br />LENGTHY DISCUSSION ENSUED REGARDING THE POSSIBILITY OF <br />MAKING THE INVESTMENTS AT A HIGHER YIELD, AND THE RISKS THAT ARE <br />INVOLVED. <br />INTERGOVERNMENTAL COORDINATOR THOMAS RECOMMENDED THE BOARD <br />ACCEPT THE PURCHASE PROPOSAL AND OMIT PARAGRAPH 8 -AND SCHEDULE Y, <br />CONCERNING INVESTMENTS, UNTIL AFTER LUNCH. <br />DISCUSSION FOLLOWED -ABOUT THE UNDERWRITER EXPENSE AND <br />BROKERAGE FEE, AND FINANCE DIRECTOR BARTON AND MR. LEVINGOOD <br />NEGOTIATED THE to FEE FOR PURCHASING THE SECURITIES TO -.85 OF 1%, <br />INSTEAD OF 1%. <br />MAY 61981_ <br />45 �oo� 46 FAr,E346 <br />