Minutes - 19761028 - Laserfiche WebLink

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C ~/ rural area to receive, and there are several avenues that would seem to make it possible tv reduce the total financial cost." Shirley Marshall stated that her question was "the people feel the County offering to built this, they think that this will mean that there is a raise in their taxes. Tsn't it true that all water and sewer ameni- ties have to be paid for by rates and it would be the users who would pay off the general obligation bonds?" Mrs. Garrett replied, "not necessarily. This would not be a revenue bond. Like Lake Orange, it would be a general obligation bond __ and there is nv user charge. That's why 2 was saying that the benefit to sell it at a bulk rate would let institutions that do not pay taxes and other people share in that cost to .some extent and still having the general obligation bonds. Also, you could use either Farmers' Home Administration loans or other means, but it seems to me that it would probably cut the cost. We have talked about that with 5oi1 Con- servation Service and with Willie Glover of the Farmers' Home, but the possiblities were not very attractive." Ms. Marshall stated that she knew the sewer bonds had to be kept. separate. Sam Gattis stated, "these are not water bonds, these are general obligation bonds and do not have to be paid from any particular revenue source, just general obligations of the County." Commissioner Gustaveson inquired, "to follow up on Shirley's point, it would involve a tax increase. Yau could not do that large a bond issue without an increase." Chairman Garrett stated that this was one of the matters brought up the other night, "that there are certain other benefits from having a reservoir that would benefit all the residents of the County, whether it is say available to picnic, hiking trail, all of these will have to be planned very carefully." Jonathan Howes remarked, "2 think it's important to mention, Flo, that the Authority, because of the restrictions in terms of using rates to retire bonds can't use monies raised through the bonding process for recreational development and that is far from the basic. purpose of a water supply. The County, it seems to me clearly can. I think as all of us thought of that reservoir there, we 'have hoped that it would be a source for the south Orange community, more than just a water resource. It clearly does offer a recreation potential but, as you say, it must be handled carefully and soundly so that it doesn't represent an enormous impact on the community that is there and it does not jeopardize the basic and fundamental purpose which has to be a water supply. The other thing i,t seems to me that is important here is the responsibility for protection of the watershed is going to lie now and forevermore with the County y' and that is a crucial question that needs to be faced. County ownership might be a way of assuring greater integration between functions that the County performs as owners, and functions that the County would perform as regulators of the land use." Commissioner Gustaveson stated, "the real question now and the Commissioners have spent a good deal of time talking about proposed Seven Mile Creek and less on Cane Creek, because we really wanted to wait til we got to the Authority. One of the questions we really wanted to ask tonight is to get a total view of the Authority about their re- actions to the idea. Is there any negative reaction to the idea or test the general thesis with general comments." Mr. Morris stated that all members of the Authority were present except one and before the hour was over, Mr. Gustaveson weuld hear from all members of the Authority. Jonathan Howes stated, "the first and foremost concern of the Authority has to be water supply. The only reason for doing this pro- . jest is to augment the water supply of the towns of Chapel Hill and Carrboro and its environs, Therefore, I would say, as an Authority member, that 1 would insist that any agreement entered into between the County and the Authority would have to be one that would insure that the primary use of Cane Creek would be for water supply purposes. Now that says something about usage that might occur around the lake. For example, it says that you couldn't guarantee a certain lake level