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9 E P 81982 890x 51 pn, 920 Mr. Robbins explained that at that time the rate for the South County was 8 and 2. The rate that was established for the Gifford system (and at that time FmHA required that you treat the systems individually) was $7.10 and $1.50, and the rate that was adopted under the uniform rate structure ordinance was the $7.10 and $1.50. The application that was submitted to FmHA in February of this year, prior to the adoption of the Master Bond Resolution, reevaluated the number of connections (5,152) at 6,040 gallons per month, and showed the existing $7.10 and $1.50 rate as being capable of meeting the covenants of the then bond resolution. What has taken place since the adoption of the Master Bond Resolution is that we now are getting an indication that the mandate for reduction of water use that the Water Management District placed on all utilities last year had a much greater effect than anticipated, i.e., a 30% reduction rather than 150. So, basically what has happened - the connection totals appear to be fairly good, but the water use is down and the additional coverage requirements f of the Master Bond Resolution have put us in somewhat of a precarious position. Chairman Scurlock noted that the bottom line is that from the beginning the recommendation both from the engineers and from FmHA was not a rate of $7.10 and $1.50. Mr. Robbins confirmed that was correct - it was 8 from the original inception of their preliminary engineering report. Commissioner Wodtke emphasized that those original figures were based.on 9,000 gallons as an average use, and the lower usage of water has had a tremendous effect which will require more dollars. 11r. -Robbins explained in detail how the consumption figures were arrived at in 1979 and how the decrease in water consumption has caused the rates to be insufficient. 10