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County saved $75,000. He noted that the market was not a great <br />place to be Monday, but it was felt that Indian River County had <br />a strong and secure bond, and it turned out that it did. <br />Chairman Scurlock felt they did an excellent job and got a <br />good interest rate. <br />Chairman Scurlock recalled that FmHA had given us every <br />indication that their definition of "guaranteed revenue" was <br />going to be a favorable one for us and that we would be getting a <br />comfort letter that said that the surcharges on the North Beach <br />Water Company would not be considered as guaranteed revenue. <br />Unfortunately, the attorneys in Atlanta decided that FmHA would <br />not take that position. FmHA has offered us a discount in the <br />past, which we decided against because it wasn't to our <br />advantage. The $9.2 million loan for the Gifford sewer project <br />is not actually a loan until the project is completed, so in that <br />case, there is nothing to discount. The concept of going with <br />the bond anticipation notes for a 3 -year term that can be <br />extended to 5 is to put us in a flexible position so that we can <br />take advantage of a discount at some point in the future. We <br />need more flexibility so that we can be more creative in <br />financing and refinancing the County's utilities. <br />Commissioner Eggert asked if the interest rate would have <br />been 5% if FmHA had come through, but Commissioner Scurlock <br />pointed out that FmHA doesn't give 5% interest rates any longer. <br />The $9.2 million revenue bond issue for the Gifford sewer project <br />is being backed by FmHA at 5%. <br />OMB Director Joe Baird noted that the last bond issue with <br />FmHA on Bent Pines was at 7.375%. <br />Mr. Diamond wished to thank everyone on the finance team who <br />were involved in this bond issue for their outstanding efforts in <br />the County's behalf, especially Director Baird, Attorney Vitunac <br />and Administrator Collins, and Chairman Scurlock noted how very <br />difficult it is to put something like this together in such a <br />short time. <br />NOV 2 9 1988 <br />3 <br />BOOK <br />lb FAC[ 249 <br />