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BOOK <br />H. Land Acquisition Advisory Committee Recommendation for Bond <br />Issue <br />The Board reviewed memo from County Attorney Charles Vitunac <br />dated August 11, 1992: <br />TO: Board of County Commissioners <br />RA� <br />FROM: Charles P. Vitunac, County Attorney <br />DATE: August 11, 1992 _ <br />RE: LAND ACQUISITION ADVISORY COMMITTEE <br />RECOMMENDATION FOR BOND ISSUE <br />At the request of the LAAC Committee I have prepared the attached <br />bond resolution which calls for a referendum to be held November 3, <br />1992, on the question whether Indian River County should be <br />authorized to issue $26,000,000 in general obligation bonds to acquire <br />environmentally significant lands. <br />The resolution has been reviewed by Chuck Sieck, our bond counsel, <br />and it was his suggestion that the language as approved by the LAAC <br />Committee be modified slightly as follows: <br />1) The words limiting the term of the bonds to "approximately 15 <br />years" were changed to "not 'to exceed 20 years" because the <br />extra years might be important in structuring the bond to <br />keep below 1/2 mill annual debt service. <br />2) The language concerning the 1/2 mill maximum tax levy to <br />support the bonds had to be changed to say 1/2 mill "at <br />issuance" to cover the unlikely but possible situation where <br />the County's taxable values would decrease to such an extent <br />that the millage rate would have to exceed 1/2 mill to cover <br />the bond debt. Without this provision Mr. Sieck felt that the <br />bonds would not be general obligation bonds and thus would <br />be difficult to sell. In the most likely event, when the bonds <br />are structured in the year of issuance so that the first debt <br />service payment would be 1/2 mill or less, the millage rate <br />necessary to service the bonds in the future would decrease <br />each year as the tax value of the County rises. <br />The attached resolution is in proper form for adoption by the Board <br />and if adopted would call for a bond referendum to be held November <br />3, 1992. <br />Commissioner Bird announced that his real estate office <br />represents a land owner whose land is being considered as a <br />possible purchase if the Land Acquisition issue is passed; <br />therefore,he declared a conflict of interest and left the Chamber. <br />14 <br />