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r � ROOK 70 PA;c 840 FEB 161988 Chairman Scurlock brought up the water and sewer bonds on Page 164 and the coverage figure of 3.15, which he felt is high. Director Fry did feel it is abnormally high, but believed if you look at previous years, it is basically an aberration and that when we come to the end of the 1988 fiscal year, it will be back under 1 again. He believed this one year with the way the revenues flowed and the expenses we had, it just seemed to get out of balance. Chairman Scurlock commented that we have had a very stable structure in utilities, and he did not anticipate a rate increase for another period of time. He asked if staff agreed. Director Fry concurred. He believed the increase in customers has helped tremendously. Chairman Scurlock asked about cash flow in Utilities, and OMB Director Baird advised that presently we have about 9 million of outstanding debt; when the Gifford project kicks in, we will have another 9 million so your ratio will drop in half. That is expected within the next two years; so, once again you would be back to normal. Chairman Scurlock pointed out that we also will be adding that asset and that cash flow to the system, and he believed the revenues will jump significantly. OMB Director Baird advised a lot of the impact fees were prepaid, and he believed there will only be an increase of 20% of the existing customer base. Chairman Scurlock felt that is a pretty good increase in one year and did not believe that takes Grand Harbor into account. Asst. Utilities Director Jeff Barton reported that they were one of the Targe payers in last year in the construction for part of what we are doing in this fiscal year; so, it is mixing the two fiscal years, and the money came in in one year, which pumps these numbers up. Commissioner Eggert wished to know what exactly was the answer to the Chairman's cash flow question. 22 AL