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FmHA invited the $2.7 million application because within that $2.7 million would be the $426,000 cost overrun. Mr. Thomas stated that he was concerned that the timing was upset by changing it from a 1.1 coverage to a 1.2 coverage, and making the rates non -conforming to the debt requirement. He merely wanted to call to the Board's attention and, that the Board be aware that some form of interim financing may be required. Mr. Thomas noted he was concerned about the matter, as this was unlike obtaining interim financing to construct something that was not already in operation. If the County does have to go to some interim financing, an adjustment would be required of the rates and sales as the County was already in the business and currently taking in $7.10 on the FmHA part of the loan. Mr. Thomas stated he was merely talking about a rate study and thought the County should have a thorough one. Not only does it affect the ability to meet the current debt structure, but if it is not done properly, when it comes time to issue the bonds for the South Beach, it may have an effect on the salability of those bonds. Lengthy discussion followed regarding a master meter rate and impact fees. Mr. Robbins stated that FmHA recommended having the loan closing for $5.8 million on September 30, 1982 at 10:30 A.M. He added that the Board may want to consider only borrowing from them the $426,000 necessary for completion of the South County water system. Mr. Robbins commented that he would.talk to Mr. Thomas and Mr. Livingood in this regard. Sian Livingood, of Arch W. Roberts Co., stated that in order to close on the $5.8 million loan, it would be necessary for FmHA to waive certain provisions in the Letter of Conditions, in which the County was not in compliance. He believed that FmHA would be willing to work with the BQDK 51 PAE t" AUG 18 1982 84