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Dan Chastain, manager of assessment projects, gave a brief overview of Phase VI of the Water Expansion Plan which will serve a portion of Vero Lake Estates and Dixie Heights, together with some adjoining properties (portions of Dixie Gardens). The total project will serve 1580 lots owned by 1209 parcel identification numbers. The total project cost is estimated at $2,903,410.11, less a non -assessed transmission main cost of $387,664.26, for a total assessment cost on the project of $2,515,745.85, equating to a cost per square foot of .159061 cents. The project will be paid through the assessments of the benefiting property owners and, in the interim, with financing through the use of impact fee funds. MOTION WAS MADE by Commissioner Adams, SECONDED by Commissioner Eggert, that the Board adopt Resolution 95-17 providing for Phase VI of the Water Main Extension Growth Plan; Under discussion, Commissioner Bird again raised the issue of the interest rate charged residents who pay assessments on a _deferred basis. He felt the interest rate at 2% above prime is a little high to charge people who are obviously already having a difficult financial problem and wondered if the County might be able to lower the rate somewhat. He suggested perhaps using a different formula but understood that administrative, collection and other costs must be recovered. OMB Director Joseph Baird responded by advising that the interest rate at 2% above prime was a policy decision which was based on the County's cost of money. Director Baird also wanted the Board to be aware that the County does not charge for recording the liens or other incidental expenses related to these items. He felt it is reasonable to charge 10.5%, which is 2% above prime. He also reminded the Board that the residents are being charged a fixed rate, rather than a variable rate, which is also a benefit. Commissioner Adams iterated that the Board does not want to get into competition with banks and stated that she felt each project should be tied to something measurable which gives the County some basis to compare costs. Commissioner Bird inquired as to what kind of cost the County would pay today to borrow funds. Director Baird responded there would be an issuance cost of about another $100,000, plus underwriter fees, discounts and fees for bond counsel. His estimate was that the cost would be about 8%, plus $100,000, depending on the size of the project. JANUARY 24, 1995 56 BOOK 94 PAGE X87