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HUTCHINSON UTILITIES' REQUEST FOR AN INDUSTRIAL DEVELOPMENT <br />REVENUE BOND & CONCURRENT REQUEST FOR A RATE ADJUSTMENT <br />Attorney Brandenburg reviewed the following memo, <br />emphasizing the property owners' concern over any possible <br />rate increase and their desire to have sufficient time to <br />analyze the request made by Hutchinson Utilities. <br />TO: Members of the DATE: August 9, 1983 FILE: <br />Board of County Commissioners <br />SUBJECT-. Hutchinson Utilities' <br />Request for an <br />Industrial Development <br />Revenue Bond and Concurrent <br />Request for a Rate Adjustment <br />FROM: Gary M. Brandenburg REFERENCES: <br />County Attorney <br />Please be advised that this office has received an application <br />accompanied by the appropriate fee from Hutchinson Utilities <br />requesting Indian River County to issue an Industrial Development <br />Revenue Bond in the amount of $1,020,000 to disassemble an existing <br />wastewater treatment plant at the Moorings and construct a new <br />facility (see attached Tetter from Louis P. Aiello dated August 9, <br />1983). When the application was submitted, the proprietors. <br />stressed the need to proceed as expeditiously as possible with the <br />financing. I have received the application and distributed it to <br />Administration to review the financial stability of the applicant. <br />I have also sent a copy of the application to our bond counsel and <br />have introduced the applicant's attorney to our counsel for the <br />purpose of negotiating a fee. All bond counsel expenses are paid <br />by the applicant; therefore, it is only fair that they should be <br />the parties primarily responsible for negotiating such a fee. <br />Concurrently with the application for an Industrial Development <br />Revenue Bond, the utility filed an application with the Indian <br />River County Utility Department for a rate hearing. The applicants <br />assert that a new rate structure.is now necessary and their <br />proposed structure is allegedly designed to produce sufficient <br />revenue to pay back the bond issue and provide a reasonable rate of <br />return on their investment. This matter will have to be scheduled <br />for a full public hearing under the Indian River County Utility Act <br />in the future. <br />Meanwhile, the various homeowner's associations at the Moorings <br />having learned of the request for a rate review met with the <br />Chairman of the Board, Mike Wright, Terry Pinto and myself. The <br />homeowners are very concerned about the rate hearing and any <br />possible resulting rate increase. Their main concern at this <br />juncture is the timing of the hearing; they want enough time to <br />analyze the request, hire experts if they consider it wise, and <br />make a full presentation at the hearing. They recognize that an <br />55 <br />A 11G 1'7 1983 PAc <br />