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DEC 2 31992ur 7 <br />overrun for the South County project; Phase 2 deals with <br />construction of mains to transport water to the developments <br />served by Treasure Coast and Ixora Utilities as required by <br />the DER mandate; and Phase 3, which has not been totally <br />defined, concerns expansion of the South County water <br />facility, possibly in the form of greater capacity, <br />additional wells, etc., or substantial extension of <br />distribution mains in the South County area. ' <br />Commissioner Wodtke asked if the cost overrun is <br />actually an overrun or whether it is due to increasing the <br />capacity of the plant. <br />Mr. Livingood agreed that was a misnomer. He believed <br />the bids exceeded the funds available by $426,000; in order <br />to proceed and enter into the contracts at that time, the <br />County pledged other legally available funds, and FmHA <br />subsequently agreed to include the reimbursement of those <br />funds. <br />Mr. Livingood then explained that the bond issue must <br />be able to do the following: <br />(1) pay the costs of phases 1, 2 and 3,' <br />(2) pay the interest on the notes through May 1, 1984, and <br />(3) pay the issue expenses and the underwriting discount of <br />issuing the notes. <br />This total exceeds the 2.7; so, they are counting on <br />interest income on some of the proceeds of the financing to <br />generate the additional dollars needed. This is covered in <br />their proposal. Mr. Livingood commented that Finance <br />Director Barton has come up with a proposal to generate <br />these funds through interest income, which is totally <br />comparable with his firm's proposal so they have decided to <br />delete theirs. <br />Administrator Wright clarified that we are going to get <br />roughly $900,000 on closing back into the General Fund, and <br />the 1.7 million or so that is left over will be spread out <br />5 <br />