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_ the property at Seven Mile Creek. He asked if it would limit the number of customers the Town could serve or have other restrictions. Chairman Carey answered that a process needs to be worked out to answer this type of question. Mayor Cates stated that if there is going to be a partnership, each partner must financially participate to their portion of the partnership. To loan Hillsborough a million dollars that must be paid back is of no benefit to the partnership. Hillsborough could do better by borrowing the money elsewhere than on the basis the County anticipates. Cates emphasized that if this is the case, it strengthens the position of letting the Town of Hillsborough build its own reservoir. There is not one instance since 1934 that the Town of Hillsborough has violated the County's Land Use Plan. Commissioner Marshall questioned who would pay for the reservoir and Mayor Cates indicated that the users would pay. She questioned why one partner in the partnership would have their loan repaid but that the County should be expected to not be repaid from the users. Commissioner Willhoit noted he has not said that the County should not get into the water business. Chairman Carey emphasized that the County is not interested in conveying their land at Seven Mile Creek to the Town of Hillsborough. Verbal "tongue in cheek" retorts ensued on shutting the gate at Lake Orange and curtailing water service to county offices. Commissioner Halkiotis suggested that the recreational and environmental issues be reviewed. He.asked what long term recreational benefits might be considered for a small reservoir. He expressed concern about marine motor oil, gasoline, drunks, beer cans, and other pollutants. He is a firm believer that a protected reservoir would provide the best possible source of raw water for the Town of Hillsborough. Mayor Cates agreed with Halkiotis. Chairman Carey mentioned joint planning and noted that in order to move ahead with the planning for the reservoir, the County and the Town of Hillsborough need to agree on what types of development will be allowed in certain areas surrounding the reservoir. Mayor Cates responded that the Town has. no choice but to abide by the County's Land Use Plan. Commissioner Marshall explained how joint planning works between the Gounty and the municipalities. Mayor Cates expressed opposition to any control over the town's authority to annex. It was decided that the two Planning Boards would meet in an effort to open lines of communications and talk about joint planning. County Manager John Link suggested that thought be given to how the twenty-year service area will develop and when. This will help in the financial arrangements for the reservoir. The County needs to know exactly what the financial plans will be for the reservoir. Cates responded that a lot of assumptions have to be made but the worse situation is that the Town of Hillsborough builds the reservoir itself on the basis of five and one half million dollars by borrowing that amount of money. Presently, the town of Hillsborough has built into its rate structure one million dollars for the Durham pipe