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AUG 17 1983 Industrial Development Revenue Bond will reduce interest costs to the utility thereby theoretically allowing a lower rate in the long run. However, their concern is; if the County adopts an inducement resolution now, will the County later at the rate hearing be inclined to raise rates to make the previously approved financing feasible. On the other hand, IRS regulations do not allow for the inclusion of all pre -inducement expenditures within an IRDS; and Hutchinson Utility is ready to commence the project as soon as possible. Herein lies the difficulty. The more of the expenditures the utility can include the greater the savings to the company which theoretically leads to lower rates in the long run. Potential Solution; Indian River County could adopt an inducement resolution for the utility's Industrial Development Revenue Bond which specifically leaves the determination of financial feasibility and stability to be made at a later time; that being, when the bond resolution itself is adopted. This resolution will satisfy the Internal Revenue Service's requirements and will place the risk of the project not being financially feasible on the utility in the interim. The actual bond resolution can be timed to occur after the rate hearing. If a rate is approved that is insufficient to produce revenue to support the bonds, then the project would become unfeasible and the issue would not proceed. Mr. Samuel White of the Moorings Property Owners Association came forward and addressed the Board. He stated that they were not in favor of a rate increase, and, in fact, they had a petition before this Board last December objecting to the present rates. Attorney Brandenburg went over the "potential solution" offered in his memo, noting that Hutchinson Utilities needs the Inducement Resolution in place. He suggested that the Commission go ahead with an Inducement Resolution that does not tie the -County down in any way in regard to the rates. Then, when the rate hearing is held, the County will either grant a rate that will make the project feasible or not feasible; if it is not feasible, the project will just die. Commissioner Scurlock wished to know if proceeding with the Resolution would lock us into having a rate hearing at a specific time as he did not want to get into the situation of having the public hearing at a time when many property owners would not be able to attend. Attorney Brandenburg stated that language can be included in the Resolution stating that the bond issue will 56