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which becomes due December, 1990, leaving approximately $139,000 <br />to improve the County's immediate cash position. Next, and <br />probably most important, we have, in effect, installed a new <br />underlying Bond Resolution which in many ways is much more <br />flexible and much less restrictive and will allow the County to <br />grow and expand their system. Mr. Diamond explained that it is <br />common practice to require more restrictions on issues for new <br />systems which have no credit standing in the marketplace. <br />Commissioner Scurlock wished to have on record just where <br />the credit is due for all this because he did not believe the <br />Commission is fully aware what a critical situation we faced in <br />the last 3 to 4 months. He explained that what FmHA said to us <br />was that they originally gave us a commitment to loan 9.2 million <br />for the Gifford sewer project, and this Commission went out and <br />sold that to the Gifford Community by saying that we would be <br />able to stabilize rates if we could expand into the community, <br />pave roads, etc. FmHA then said we now had demonstrated an <br />ability to go to the commercial market. So, our financial <br />people, along with Utilities Director Pinto, went to FmHA and <br />negotiated that if we could demonstrate to them that by going to <br />the commercial market there would be a significant rate increase <br />that would negatively impact our lower income community, then we <br />still would be eligible for the program. Because of this whole <br />group, Joe Baird and others doing a lot of work, we finally got a <br />letter stating that we have demonstrated that we are still <br />eligible. <br />Commissioner Scurlock stressed that they all tried to do <br />this very quietly so that it did not get in the Press and upset <br />anyone because if this team was not successful, we would have <br />been looking at going to the commercial market and he believed we <br />would have been looking at a significant rate increase. Although <br />no one is here from the public to hear all this, he wished to <br />congratulate our staff and have it on the record that Joe Baird, <br />3 <br />APR 2 7 1989 <br />POOK <br />F7 6 FADE 720 <br />