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relating to water in the South County area. At that time, <br />there were various franchises experiencing difficulties. <br />The initial concept behind the South County water system was <br />to provide longevity of service, fire protection, and to <br />improve the drinking water; the Board authorized that a <br />municipal service taxing district be established. About $9.2 <br />million was associated with water projects and with the <br />funding source coming from the Government, the County filed <br />a pre -application to determine at what level their loan <br />would be from FmHA. The County received a 14% grant, which <br />amounted to $796,900; in combination with the $5.8 million, <br />it established the funding nucleus for the construction that <br />is now underway. In 1979, there were 2,886 residential <br />connections, and a particular rate was determined as being <br />the one necessary to pay back FmHA under the then existing <br />bond resolution. Since 1979, and the actual approval of <br />South County Water System by FmHA, many things have changed. <br />In providing a water system for a metropolitan area and fire <br />protection, they looked at the long term, net effect of the <br />water resource. The Vista water system had wells east of <br />U.S. #1 and the growing concern at the time was if pumping <br />continued at a large quantity, there was a potential for <br />salt water intrusion. Once salt water intrusion enters a <br />wellfield, there are only one or two procedures for <br />improving it. <br />So, from the very outset in planning, it was <br />recommended that the Vista Properties water plant remain in <br />line until the water quality began to degrade. �Mr. Robbins <br />continued that the entire Vista Properties area was to be <br />incorporated and be furnished water from the South County <br />water plant. When the pre -application was filed with FmHA, <br />the revenues were pledged to secure the loan from FmHA, and <br />FmHA stated that the County would have to demonstrate how <br />they were going to pay the loan. <br />51 PACE �1 <br />SEP 29 1982 ax <br />9 <br />