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DEC ` 2 i'989 <br />BOOK 1 Ci �`l r - . <br />ADOPTION OF BOND RESOLUTIONS - GIFFORD WATER AND SEWER SYSTEM <br />PROJECT <br />The Board reviewed the following memo dated 12/12/89: <br />INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS' <br />MEETING, TUESDAY, DECEMBER 12, 1989 <br />The following Gifford Bond items are to be added to the <br />agenda in preparation for the upcoming bond closing: <br />(1) FmHA form Resolution for $450,000 for Bent Pine <br />purchase by Indian River County <br />(2) Resolution authorizing additional $450,000 of <br />borrowing from FmHA in connection with Bent <br />Pine acquisition by amending Bond Resolution No. <br />86-35 to authorize, in addition to the $9.2 million <br />of bonds, another series of bonds, i.e., 1986-A <br />bonds for the $450,000 <br />(3) Resolution awarding the bonds to FmHA and calling <br />the notes as of January 18, 1990 (with Escrow <br />Agreement between Indian River County and FmHA <br />attached as Exhibit "A"). <br />Attorney Vitunac distributed copies of the 3 bond resolutions <br />that are required to be passed previous to the closing on December <br />20th on refinancing of the $9.2 million Gifford loan and the <br />$450,000 supplemental bond. <br />OMB Director Joe Baird explained that when we originally made <br />the commitment with Bent Pine, we borrowed $450,000 at an <br />estimated 7-3/8% rate. Interest rates have gone down since then, <br />and we asked them to reduce the rate, which they did, and it will <br />be 7% now. On December 20th we also will be closing on the $9.2 <br />million Gifford bond issue and bond anticipation notes outstanding <br />at 6-3/8% which had a 3 -year term. We will be refinancing those <br />with FmHA at 5% over 40 years. We are retiring it a year ahead of <br />schedule in order to be eligible for the substantial discount <br />being offered by the FmHA, but the loan has to be closed on by <br />December 31, 1989 in order to be eligible. <br />48 <br />