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r <br />APR i 6 1991 <br />ROOK83 F'v E 14 7 <br />This 5 -year agreement is the only currently approved option <br />available for financing of the impact fees for the Life for Youth <br />Ranch. <br />Mr. Stevens is therefore requesting a longer term than 5 years and a <br />;lower interest rate than 12 percent. <br />RECOMMENDATION: <br />The Department can only recommend the currently approved financing <br />plan which Life for Youth Ranch has executed on March 28, 1991. <br />Mr. Pinto explained that there is another facet to this <br />particular situation. This site has had a private water system <br />that was servicing individual buildings, and under the ordinance <br />actually they should have been franchised with the operation. In <br />view of this, he believed the Board has leeway, as has been done <br />for mobile home parks, to approve 10 -year financing. <br />Commissioner Scurlock related discussions by the Commission in <br />regard to longer payment programs offering reasonable interest <br />rates and stated he does support longer, more flexible payment <br />periods for everybody, not just the church. After research, he <br />felt our current interest rate of 12% should be reconsidered. <br />Discussion followed as to tying this to the prime rate but <br />Director Pinto argued that we do not want it fluctuating that much. <br />Commissioner Wheeler recalled the Commission had always taken <br />the position that we did not want to be in the finance business and <br />had encouraged folks to go the bank for lower interest rates. <br />Discussion continued regarding ways and means of financing <br />utilities and the County's policies regarding same. <br />Commissioner Wheeler asked for clarification on the interest <br />rate recommended for this applicant and Mr. Pinto recommended the <br />Life for Youth Ranch financing be for ten years at nine and three <br />quarters percent, which is the same as that offered to mobile home <br />parks. <br />MOTION WAS MADE by Commissioner Wheeler, SECONDED by <br />Commissioner Bowman, to approve amending the <br />financing plan which Life for Youth Ranch executed <br />on March 28, 1991 to reflect 9-3/4% interest for a <br />term of 10 years. <br />Discussion continued. Chairman Bird asked who is eligible and <br />who is not for that type financing and Mr. Pinto answered it <br />applies to any utility that is franchised which we are taking over <br />or connecting to the County utility. It was just recently offered <br />to the mobile home parks that are being connected. He further <br />explained that the individual customers in our assessments are <br />paying twelve percent but that is adjustable by the Board. <br />II <br />68 <br />