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JUL 111984 aooK 57 Fell 617 Attorney Brandenburg explained that there are two bond issues that are involved here, and it becomes very complicated as to how the funds must flow to satisfy all the legal requirements. The County has a combined master water and sewer system and has outstanding obligations with Farmers Home Administration in respect to that system, including outstanding notes on the open market. The gross revenues of the County utility have been pledged to those notes, which includes the impact fee. In conjunction, we are doing this assessment, which is part of the gross revenues. Those two combined issues will yield up to $2.8 million for the purpose of funding this project. The contracts have been awarded for the project and they are in the area of $2.4 million and $2.5 million. It is antici- pated that there will be some changes; but they are fairly confident that the total price will not exceed $2.8 million. Our arrangement with FHA is that we cannot draw down on the $871,000 of their funds until we exhaust other available funds from the project, i.e., the funds associated with the assessment of this project. As of the date the Board adopts the equalization resolution, the County establishes a lien on all the properties involved in this assessment. That lien would have the same status as a municipal tax lien and can be extinguished in several ways. The bond issue can just run its full course and over the course of that period installment payments are made on the bonds and eventually paid off. Another alternative is that they can pay the lien off all in one shot within 30 days of the County selling the bonds, or they can pro -rate the bonds with respect to the property. Attorney Brandenburg explained that the money needed to pay off the bonds is paid by the developers at the time they need the taps released to develop their properties. The arrangement with the bank is that the County must amortize M M