The Board of County Commissioners of Brevard County, Florida, met in special session on March 18, 1999, at 10:05 a.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida. Present were: Chairman Truman Scarborough, Commissioners Randy O'Brien, Nancy Higgs, Sue Carlson and Helen Voltz, County Manager Tom Jenkins, and County Attorney Scott Knox.

ANNOUNCEMENT, RE: CHECK FOR HOUSING FINANCE AUTHORITY

Commissioner Voltz advised that the Housing Finance Authority received a check for $150,000 for down payment assistance for Fannie Mae mortgages.

FIRE RESCUE DISCUSSION ON WILDFIRES

Chief William Farmer stated the purpose of the meeting is to discuss the wildfires and lessons learned from the fires that occurred in Mims and Scottsmoor; the presentation will be in three parts, including a slide overview of the firestorm and general information about wild land firefighting, what Public Safety and Fire Rescue have been able to accomplish this year toward the corrective action plan, and Board assistance. He advised the usual cause of fires include lightning and human error; in Florida, every three to five years the State is impacted by a large fire; and the opportunity for Brevard County to experience another wildfire is not out of the realm of possibilities. He stated what occurred last year that prompted the firestorm was an unusual wet and warm winter; this was caused by the El Nino effect which allowed for year-round growth; the backside of the El Nino effect was a very dry, hot summer which is normally a wet season; and that increased the fire activity from May 25 to July 15, 1999. Chief Farmer stated presently Brevard County is in its dry season; and if it does not start to experience the April and May rains, there could be another firestorm sooner than the one last year. He noted the firestorm itself lasted from June 29 through July 14, 1999, which included cleanup time, federal reports, etc.; it consumed approximately 56,000 acres and took 2,000 firefighters to combat; and the cost to Brevard County was approximately $1.2 million.

Commissioner Voltz inquired how much will the County receive from FEMA; with Chief Farmer responding staff hopes all of it, but a solid estimate is 80 to 90%.

Chief Farmer described wild land/urban interface and intermix, clean boundaries between the woods and homes, limited access, and defendable and non-defendable space. He advised the Public Safety Department has identified urban interface areas in North Brevard, including Scottsmoor, Mims, sub-areas of Port St. John, Canaveral Groves, and some areas of North Merritt Island; the Central Brevard area includes West Cocoa, West Canaveral Groves, West Rockledge, and some areas of Viera; and the South Brevard area includes Grant/Micco, and parts of West Melbourne. He stated defendable space includes, at minimum, a 30-foot wide barrier around the home that is clear of vegetation, inflammable objects such as firewood,

FIRE RESCUE DISCUSSION ON WILDFIRES

dead grass collected from mowing the lawn, etc.; the amount of barrier may change, depending on where the house is located and the season; with the El Nino effect, the barrier would have to double or triple; and homeowners need to take it into consideration when planning their defendable spots. Chief Farmer stated defendable means that the home can defend itself against a fire; Public Safety Department recognizes it is unrealistic to expect the Board to adopt very strict building codes that would limit homes being built in target areas to being restrictive fire resistant homes; some States have done it, including California; perhaps Brevard County's best solution is education; and the Department has taken steps to provide material for education to the public. He advised the Corrective Action Plan includes Fire Operations Center (FOC)/Emergency Operations Center (EOC), increased attention to wild land firefighting, pre-designated areas for command and control functions, public information, Public Service Announcement (PSA) Program, implementation of wild land firefighter training for all new recruit personnel, improved wildland firefighter training for existing career and volunteer personnel, implementation of a course of instruction on Florida fire behavior, increased education in wild land fire tactics, and special equipment. Chief Farmer stated staff is requesting the Board authorize staff to: (1) begin working on a prescribed burning or fuel reduction ordinance; (2) finalize the Water Resource Plan and identify a funding source; (3) identify a funding source to purchase six new brush trucks, two new tankers, and three Bambi buckets; (4) create an annual wild land educational mailer to be mailed to all homes within target areas and identify a funding source; and (5) identify funding to upgrade Communications.

John Koehler, District Manager for Orlando District Division of Forestry, stated the District encompasses Orange, Osceola, Seminole and Brevard Counties; the forecast this year will continue to be warm and dry; the Division of Forestry is increasing awareness to the citizens concerning fire safety through participation in fairs, parades and special events; and last week was Prescribed Burning Awareness Week. He noted the Division requested the St. Johns River Water Management District and U. S. Fish and Wildlife Service burn some of the urban interface areas; approximately 7,000 acres have been burned and will afford some level of protection; if a county can burn between 28% and 32% of the wild land area, there is some level of fire prevention methods obtained through the fire burning program; and it needs to be done annually. Mr. Koehler stated this year in Brevard County there have been approximately 55,000 acres prescribe burned by agencies and landowners which is about 20% of the forested areas; this year the Division of Forestry submitted a package to the Legislature for $37 million with 22 separate issues, including more personnel and additional helicopters Statewide; and the Governor's recommendation was $2.8 million and the Senate recommendation was approximately $21 million. He noted as he visited Palm Coast after the firestorm, he found that homes with 30-foot clearance around the structure survived the best; Flagler County was aggressive in doing its interface burning program last year which included approximately 600 acres; burning in and around houses is very labor intensive; and burning is a part of the solution, but the better solution lies with the property owners and homeowners keeping their vegetation cleared. Mr. Koehler stated the Governor's Task Force had 90 recommendations; and the Division has started implementing some of them.

FIRE RESCUE DISCUSSION ON WILDFIRES

Chief Farmer stated approximately 56,000 acres have been burned in Brevard County since September, 1998; the Board adopted a Resolution on February 9, 1999 in support of prescribed burning; and staff is requesting authorization from the Board to draft a prescribed burning or fuel reduction ordinance. He noted in the Mims and Scottsmoor fires there was a problem getting enough water; water resources throughout the County are limited; County staff surveyed the area and identified sites that could support different types of water resources; and the four kinds include a municipal-type water system, drafting hydrants and pads, vertical wells, and horizontal wells. Chief Farmer showed the recommended drafting/well locations in North, Central and South Brevard; and requested authorization to continue the plan for water resources and bring it back to the Board with a final cost estimate and secured sites. He stated the County needs to enhance and increase the brush fire truck fleet; in support of the water resources plan, two additional tankers are needed in the North Brevard and South Brevard; in the budget there is a request for two tankers at a cost of $396,000 collectively; and staff is requesting three Bambi buckets at a cost of $7,300 per bucket. Chief Farmer stated to avoid the inability for outside agencies coming in for mutual aid to communicate and to avoid the loss of communications they experienced during the Mims/Scottsmoor fire, the system needs to be upgraded; and there are three ways to do that-reprogram with new radio channels, including Florida mutual aid 800 Mhz channel and talk around channels, alternative signal source, including fiber optics and telephone-land lines, and auto start generators.

Lesley Lewis, Communication Manager for Sheriff's Office, stated the Sheriff's Office does not have any remote start generators at any of the satellite computer sites, except for the one in the County Jail; the site in Mims is a satellite receiver site and does not transmit; it could be a transmitter site in an emergency; however, the FCC does not allow the Sheriff's Office to do it at this time.

Chief Farmer stated the Housing and Community Development people have been working with some of the citizens in the Mims/Scottsmoor area and are assisting families to build homes on sites where their previous homes were lost. He provided a summary sheet to the Board that highlights staff's requested actions.

Commissioner Voltz inquired does the referendum cover any of these items; with Public Safety Director Jack Parker responding negatively. Mr. Parker advised the referendum was specifically for an additional fire medic on each engine, along with additional fire engines and to bring those engines up to ALS capability.

Motion by Commissioner Higgs, seconded by Commissioner Voltz, to authorize Fire/Rescue staff to draft a prescribed burning/fuel reduction ordinance. Motion carried and ordered unanimously.

FIRE RESCUE DISCUSSION ON WILDFIRES

Commissioner Higgs requested the County Attorney research the liability issues under the Harris Act if the County burns on private lands without permission. County Attorney Scott Knox responded his office has done that research and the County has liability.

County Manager Tom Jenkins stated it is possible that the Legislature will supersede the Harris Act.

Motion by Commissioner Higgs, seconded by Commissioner Carlson, to authorize County staff to finalize the Water Resource Plan and identify funding source. Motion carried and ordered unanimously.

Chairman Scarborough inquired does the County need to wait on the Float-o-pumps for the Water Resource Plan, or can it proceed with the pumps; with Chief Farmer responding the County has purchased eight Float-o-pumps and 42 additional pumps are being requested.

Commissioner Carlson inquired is there an educational program for people who may have ponds and can they purchase something on their own to assist them if there was a fire; with Chief Farmer responding a private citizen can purchase a Float-o-pump.

Chairman Scarborough passed the gavel to Vice Chairman Higgs.

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to authorize the purchase of 42 Float-O-Pumps at the best price available. Motion carried and ordered unanimously.

Mr. Jenkins advised the funds for the Float-o-pumps would come from the Contingency Fund; and if the County gets reimbursed from FEMA to the extent it believes it will, it can reimburse such Fund.

Commissioner O'Brien inquired are Bambi buckets presently available for borrowing from U. S. Fish and Wildlife Service; with Chief Farmer responding in the past, staff has been able to call for mutual aid request from Division of Forestry, but the County has also been told they are not available at this time. Commissioner Voltz stated the problem was that the fires were all over.

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to authorize the purchase of three Bambi (water) buckets at estimated cost of $21,900. Motion carried and ordered unanimously.

Mr. Jenkins advised it will be the same financial arrangement as the Float-o-pumps.

FIRE RESCUE DISCUSSION ON WILDFIRES

Commissioner Carlson inquired will it take any additional training for the pilots in Mosquito Control Department to fly the helicopters with the Bambi buckets; with Chief Farmer responding yes, and the Division of Forestry is willing to train the pilots.

Vice Chairman Higgs passed the gavel to Chairman Scarborough.

Commissioner Higgs stated communications have been a problem in several instances and inquired how much is it going to cost the County; with Chief Farmer responding the reprogramming is $7,000 and the fiber optics would be approximately $880,000.

Commissioner O'Brien stated the National Guard has communication trucks with radio antennas instead of microwaves; and they act as the repeater.

Public Safety Director Jack Parker advised staff will report back to the Board in 60 days with a plan for communications options.

Motion by Commissioner Higgs, seconded by Commissioner Voltz, to authorize the radio reprogramming system at estimated cost of $7,000. Motion carried and ordered unanimously.

Motion by Commissioner Carlson, seconded by Commissioner Voltz, to authorize staff to provide a communication initiatives plan to the Board in 60 days. Motion carried and ordered unanimously.

Commissioner Higgs inquired are the brush trucks and tankers coming under the budget; with Mr. Jenkins responding affirmatively.

Chairman Scarborough inquired has staff worked with Congressman Dave Weldon's office concerning obtaining military equipment; with Chief Farmer responding negatively. Chairman Scarborough suggested staff request Congressman Weldon's assistance.

Mr. Parker advised the television commercials are appropriate for educational purposes; however, a lot of people in interface areas do not have access to cable television; and County staff has a level of comfort if it can send people some type of safety brochure that tells them how to prepare in case of a fire storm.

Chairman Scarborough suggested a public awareness report can be put at the end of a Board meeting on the BCC Channel for educational purposes.

Commissioner Higgs inquired is Parks and Recreation Department going to do an annual brochure about their programs; with Parks and Recreation Director Chuck Nelson responding affirmatively.

FIRE RESCUE DISCUSSION ON WILDFIRES

Commissioner Higgs stated it would be less expensive to include firestorm awareness information in the annual brochure from Parks and Recreation Department.

Motion by Commissioner Voltz, seconded by Commissioner Higgs, to authorize the County Manager to use funds to include firestorm awareness information for educational purposes with the Parks and Recreation Department's brochure. Motion carried and ordered unanimously.

Commissioner Carlson inquired how much is the cost to purchase wild land firefighting shoes; with Mr. Parker responding they are approximately $100 a pair. He stated part of the problem with the boots used by the firefighters was that their feet were blistered and bruised; even after 10 and 11 hours, the firefighters were physically capable of battling the fire, yet they could not go on any longer due to the soreness of their feet; they could not battle the fires for the following three and four days; and it was a significant problem.

Mr. Jenkins stated he and Budget Director Kathy Wall can look at the Mid-year Budget Supplement to see if there is any excess cash forward to be used for the wild land firefighting shoes.

Chairman Scarborough stated he would prefer purchasing the wild land firefighting shoes by this summer.

Motion by Commissioner Higgs, seconded by Commissioner Carlson, to authorize the County Manager and Budget Director to review the Mid-year Budget Supplement for possible excess cash forward to purchase wild land firefighting shoes. Motion carried and ordered unanimously.

Mr. Jenkins stated the Parks and Recreation Department does not mail out the brochure, and they are printed and distributed in other locations.

Motion by Commissioner Higgs, seconded by Commissioner Voltz, to reconsider motion to authorize the County Manager to use funds to include firestorm awareness information for educational purposes with the Parks and Recreation Department's brochure. Motion carried and ordered unanimously.

Chairman Scarborough suggested having an insert in the newspapers to avoid mailing costs. Mr. Jenkins stated the County could limit it to the interface areas as it is expensive to print and insert.

FIRE RESCUE DISCUSSION ON WILDFIRES

Emergency Management Director Bob Lay stated there is approximately $20,000 as part of the hazard mitigation funds for the wildfires which can be used Countywide. Chairman Scarborough stated the information needs to go out to everyone as it is the County's responsibility.

Commissioner Higgs stated the County can send such information to the unincorporated and interface areas; and the city firefighters can also send it out.

Mr. Jenkins noted the question is what is the most effective way to reach the people, through the newspaper or mailing information to the house; with Commissioner Voltz responding mailing it. Chairman Scarborough stated the County can do targeted mailing.

*County Attorney Scott Knox's absence was noted at this time, and Assistant County Attorney Shannon Wilson was present.

Motion by Commissioner Voltz, seconded by Commissioner Higgs, to authorize Fire/Rescue staff to create an annual wild land educational mailer for direct mailing in interface areas. Motion carried and ordered unanimously.

Commissioner O'Brien stated the public is clear in its message to the Board with the referendum and wants to feel protected; and it is up to the Board to see that it gets done.

Commissioner Carlson stated there needs to be better communication through the newspaper and radio to tell the public what Fire Rescue is doing and how it is being coordinated; and perhaps staff can provide a status report for the general public.

Commissioner Voltz inquired is Commissioner Carlson referring to the control burns; with Commissioner Carlson responding the wildfires, as it was chaotic for a while.

Mr. Jenkins stated staff has identified areas to improve public information, including expanding the use of the Emergency Operations Center (EOC) and its personnel; the fire personnel were stretched; other resources need to be used to support them in some of those areas; and the policy group will be meeting at the EOC.

Discussion ensued concerning control burns, private lands, public safety, overgrown property, Miami Corporation property, fire preparation, and private property rights.

FIRE RESCUE DISCUSSION ON WILDFIRES

Commissioner Higgs stated she is very pleased with the control burns that have been done on the South Beaches; and there has been a high level of support from the public.

Mr. Jenkins stated staff will develop some options in the control burn ordinance for review by the Board.

Chairman Scarborough advised Brevard County is not the only County doing this, and he hopes staff is touching base with other counties.

Commissioner Voltz stated perhaps it needs to be addressed Statewide; with Chairman Scarborough responding the State is addressing it.

Commissioner Higgs stated Brevard County has received great cooperation in its prescribed burns from State agencies, Department of Forestry (DOF), and others.

Motion by Commissioner Higgs, seconded by Commissioner Voltz, to authorize staff to advise the Legislative Delegation of the Board's support of Department of Forestry (DOF) in its position to make it possible to get onto private lands for prescribed burning. Motion carried and ordered unanimously.

The meeting recessed at 11:50 a.m. and reconvened at 12:15 p.m.

OVERVIEW OF COUNTY'S CURRENT FINANCING

Financial Advisor Tom Holley provided an overview of the County's overall debt posture and debt financing, the County's outstanding long-term debt, short-term financing, debt capacity, how Brevard County compares to other counties, and opportunities to save money. He stated the Board appointed a Finance Committee comprised of Commissioner Carlson, Tom Jenkins, Kathy Wall, Stockton Whitten, Steve Burdett, Katherine Harasz, and Bond Counsel; such Committee meets as necessary and operates by consensus; and if no consensus is reached, it does not go to the Board. He noted the Committee reviews different issues, including new money for construction and refunding; the operating department brings a recommendation to Mr. Jenkins and Ms. Wall; and then it comes to the Finance Committee which reviews the financing needs, how it is going to be financed, and whether it will be short-term or long term. Mr. Holley advised if there is consensus by the Finance Committee, such Committee makes a written recommendation to the Board; there is preliminary authorization by the Board to make sure it is a viable project prior to staff going out to the market place; and if the Board authorizes staff to proceed, the legal documents are prepared and the market analysis is performed. He

OVERVIEW OF COUNTY'S CURRENT FINANCING

stated the documents are brought to the Board for a second review of the project; it then approves the financing for the project and delegates award of the bond sale; the bonds are then sold; and staff reports back to the Board on the results of the sale. He advised as part of the new procedures put in place, the County's preference at this point is to do a competitive or public option of those bonds; the last negotiated sale was done in 1994 when gas tax bonds were sold; everything else subsequent to this has been on a competitive sale basis; and presently the County is selling bonds on a competitive sale basis and will continue to do so until staff is directed otherwise. Mr. Holley stated with refunding bonds, his staff monitors the markets and brings a recommendation to the Finance Committee; the Board has established savings parameters; the Committee reviews the savings; and if the Board votes for the preliminary approval process and the market changes, the refunding savings is lost and the County does not do the transaction. He noted staff may come back one year later if the market has come back; it has happened in the past; and the process takes some time to go through, but it provides safeguards and checks and balances.

Mr. Jenkins advised the bond underwriters do ongoing research and investigation looking for ways to do refinancing; and they bring ideas to the Finance Committee, which are referred to the Board.

Mr. Holley stated the conduit issues include the Housing Finance Authority and Health Facilities Authority; in a multi-family project or refinancing of low income housing, authorities will review them and take the first action; they have their own internal consultants they will work with; typically they do not have a staff; and once they have approved the project on a preliminary step, they come to the Finance Committee. He advised the Board is required to review and approve the bond issue, according to the tax laws; the scope of review by the tax laws is very narrow; the County has taken the opportunity to broaden that; and there is no restriction on what it reviews. He stated these are always negotiated sales; the Finance Committee is leery of some of these types of bonds and does not want the County involved in them as there may be implications; the Committee will turn things down or put conditions on them, such as selling the bonds only to financial institutions or sophisticated investors; and the Committee tries to protect the Board. Mr. Holley stated the Finance Committee put together policies and procedures; once the hearing is held, the bonds go back to the authorities; and the Board does not see it again. He stated the County has been very successful in selling its bonds; its credit and rating is good; Brevard County is seen as a stable and strong County that is well managed and has good systems in place; and the Finance Committee works well. He noted the County has a strong fund balance position; it helps when people look at the ratings and what kind of resources, reserves, and spending patterns the County has; and its reputation perceives its financial posture and it is more credible. Mr. Holley outlined the County's outstanding debt; stated it does not include things such as the Merritt Island, TiCo, and conduit bonds where the County is not on the hook and there are other ways of getting the money; they looks at things

OVERVIEW OF COUNTY'S CURRENT FINANCING

that impact the General Fund and deal with property taxes; the ad valorem tax bonds include the Environmentally-Endangered Lands and Save Our Rivers Programs; and enterprise fund debt which includes utility system bonds. He stated gas taxes do not impact the General Fund; the General Fund portion of the County's budget is relatively small; some items are out of the Board's control, such as the Sheriff's budget; and unfortunately, the Board does not have flexibility. He explained General Fund debt, and legal and fiscal capacities; stated if the County is spending $1.00 on debt service out of its General Fund, it needs $1.00 increased sales or ad valorem taxes, or it needs to cut services funded by the General Fund by $1.00; and General Fund debt is the one the Board wants to be most aware of.

Commissioner Higgs inquired where are the libraries listed; with Mr. Holley responding the libraries were funded by sales tax issues.

Chairman Scarborough inquired about the debt per capita historically; with Budget Director Kathy Wall responding she does it as part of the budget and has only had it in the past four years.

Commissioner Higgs inquired did the Board indicate it wanted a 3% savings; with Mr. Holley responding at a minimum 3% and the County typically uses 4% or 5% as its number.

Mr. Holley stated the sales tax bonds show who bought them, when they were sold, what ratings the County had, the interest rate coupons, the purpose of the bonds, were they refunded before, refunding status, and debt service reserve fund status; in 2011, the 1997 Series are all paid off; and the 1991 Series extends to 2018. He noted the bar chart page shows when the County has refunding opportunities; it only calls bonds at certain times under the tax laws; federal government is limited to the number of times it does refundings; and the schedule shows the refunding dates.

Commissioner Higgs inquired is the capital improvement debt always subject to refunding; with Mr. Holley responding no, it is level debt service with one bond issue and it all matures at one time. Mr. Holley stated the long-term debt talks about the purpose of every one of the bond issues, including why it was done, when it was done, and provides details for the bonds; the booklet is for informational purposes and a resource; and if the Board has questions, it can refer back to it. He stated commercial paper is a short-term debt instrument; it matures in less than 270 days; under source of funds for repayment, almost all of them are Municipal Service Benefit Units (MSBU's) and very small; and it is the least expensive way to raise money. He noted it is a variable rate instrument; the current rate on commercial paper is less than 4%; the County tacks on a point on the assessment bill and uses the excess to pay down the debt early; and there is no ongoing interest cost. He stated it works well for MSBU's; and this program has been in place and has worked very successfully for approximately five years now.

OVERVIEW OF COUNTY'S CURRENT FINANCING

Commissioner Higgs inquired is the County still paying on Port St. John East Waterline MSBU; with Mr. Jenkins responding negatively.

Mr. Holley advised the Board has adopted as a policy that before commercial paper is issued, a source of repayment has to be identified, including an amortization schedule; there is outstanding $6,995,000 of commercial paper; and as a percentage of the County's overall debt, which is approximately $200 million, it is a very small percentage.

Commissioner Voltz inquired what is normal; with Mr. Holley responding the County wants to keep it less than 25%.

Mr. Holley stated commercial paper allows the County to tie investments into something; and it is a very short-term investment.

Commissioner Higgs noted the County is still using the Florida Association of Counties; with Mr. Holley responding affirmatively.

Chairman Scarborough stated if there is a long-range trend of higher interest rates, such as in the early 80's, the County would want to move out of the commercial paper and into the bonds to lock in interest rates. Mr. Holley advised staff reviews it quarterly; to date it has left it where it is; the cost of it is short and less than 10 years; and equipment financing is under three years. He stated commercial paper is also used for architectural and engineering work, such as building a new courthouse.

Chairman Scarborough stated if government runs surpluses like the federal and State, some people argue it would be wise to buy down long-term debt; and inquired is that a wise comment, or is it best to give rebates of one time with taxes. Mr. Holley responded if someone had invested at a higher rate than they are paying, they could invest it and keep the difference. Chairman Scarborough stated government with a surplus could invest the money; with Mr. Holley responding it does all the time. Commissioner Higgs noted one investment would include expanding the courthouse; with Mr. Holley responding that is correct.

Discussion ensued concerning debt per capita, sales tax bonds, State revenue sharing, Countywide assessment, solid waste, limited ad valorem tax, utility system, local gas tax, tourist development tax bonds, reserve funds, General Fund debt, comparisons between counties, levels of services, and quality of life issues.

Chairman Scarborough stated Brevard County is rated as having one of the best library systems in the State; it is improper to say debt without including the quality of the County's parks, libraries, roads, etc.; he does not know how to put into the equation the total community wealth per capita, and then have a ratio between the two; only looking at the debt is only seeing half the picture; and it is the equity.

OVERVIEW OF COUNTY'S CURRENT FINANCING

Mr. Jenkins stated included could be fixed assets per capita compared to debt per capita.

Commissioner Carlson inquired does the County balance debt with investment and what it has on hand in terms of cash and various ratios; with Mr. Holley responding negatively. Mr. Holley stated the income statement is much more important than the balance; and if the County were in a corporate setting, it would be very different. He noted if a city or county does not have libraries, it cannot attract businesses. Commissioner Voltz stated she read that the more libraries there are, the lower the crime rate is.

Mr. Holley stated the information shows that Brevard County does very well; and it does not have a lot of debt outstanding per capita compared to other coastal counties.

Commissioner Carlson inquired if the debt per capita is based on the entire life of the County's long-term debt; with Mr. Holley responding negatively. Mr. Holley stated the par amount outstanding today of bonds is $274 million which excludes the utility bonds.

Commissioner Higgs stated the debt is costing people less than $2.00 a year; and the average fixed rate is less than the commercial paper rate. Mr. Holley stated the County's average cost of debt is approximately at 5% or less.

Commissioner Voltz stated there is a petition being circulated to limit the County's bonding capabilities; she does not support it; and inquired what would it do. Mr. Holley responded it is a quality of life issue and a matter of saving up and paying as you go. Commissioner Voltz stated the County would have to do one project at a time; with Mr. Holley responding it depends on how much money it is saving. Mr. Holley stated a number of years ago, the Board decided it was going to have a higher assessment than necessary for Solid Waste to pay the current operating expenses; a lot of the Solid Waste is pay as you go; there are a lot of things that can be done pay as you go; and he likes to see both because sometimes rates are high and the County wants to have cash resources. He noted it gives a timing window and the Board does not have to borrow money when rates are high; when rates are low and things are cheap it is a good time to buy; and it is like any other economic analysis.

Commissioner Higgs inquired if the Board wanted to do some capital improvements, including libraries and parks, would both of those qualify under the excess capacity the County has in sales tax; with Mr. Holley responding affirmatively.

Mr. Holley explained a chart outlining legal capacity; stated the County has additional legal capacity of $228 million it could bond; the legal capacity is the County's ability, as a matter of law under its outstanding bond indentures and Statutes in place, to issue debt; and it is a very different number from its fiscal capacity. He stated if the County sold bonds from the General Fund Indebtedness out of the guaranteed title for the sales tax, that is a $1.00 for $1.00 taking away from the General Fund; and the County would have to replace it by either raising ad valorem taxes or cutting positions.

OVERVIEW OF COUNTY'S CURRENT FINANCING

Mr. Holley advised the Environmentally-Endangered Lands (EELS) and Beach and Riverfront bonds are voted millages; the other indebtedness is looked at differently, including the utility tax, local option gas tax, and tourist development tax; the County uses the ad valorem taxes off the Library District to pay for libraries, but it sold sales tax revenue bonds; and both are General Fund revenues. He stated one of them is done for credit purposes and the County pledges sales taxes, though it pays for them out of ad valorem taxes out of the Library District; the County could not bond that without a referendum; it had four of five different things it funded all at one time which is the most efficient way of doing it; and it is very economical to group things together and sell them that way. Mr. Holley stated the County would not have the loss of a $1.00 for $1.00 as it is getting it from another source; $50 million in sales tax bonds may have multiple sources of repayment; the bond holders do not care and look at sales tax; the County does it for credit purposes; and how it pays for it is an internal County matter.

Mr. Jenkins stated the County has to withhold some capacity in case of an emergency. Commissioner Voltz inquired does the Board have a set policy; with Mr. Jenkins responding it does not have one. Mr. Jenkins advised staff will be coming back to the Board concerning whether or not the County needs to continue holding on to the property for Solid Waste purposes; Solid Waste Director Richard Rabon has dramatically increased the capacity at the West Cocoa landfill; it would help the Solid Waste financial picture; and the County may not have to borrow at all or not as much. Commissioner Higgs stated the County could lower rates and give it back to the citizens as it is not into a major capital program presently. Mr. Jenkins stated Mr. Rabon has a five-year plan that he cannot complete currently without borrowing money; and one of the ways to reduce the borrowing is to sell the real estate and put the money back into Solid Waste. Commissioner Higgs stated the County could make the argument that in the case of Solid Waste, it is appropriate to pay over time for those improvements and turn that money through the solid waste assessment fee; and if it wanted to do something under other funds, then there would be cash coming in.

Mr. Holley explained the refunding bonds that the County has done and the amount it has saved for each issue; stated over the last seven years it has saved a gross of $44 million which is a present value of approximately $15 million; the Board has approved refunding of the golf course bonds and staff is going to the market with them; and it should generate a present value savings of approximately $417,000. He stated that money is being spent on improvements to the clubhouse at The Habitat and for debt service savings; and the Marlins bonds are approximately $400,000 in savings on refunding those bonds. He outlined all the outstanding bonds of the County that are refundable, including the dollar amounts and percentages; advised staff updates it periodically and reviews it on an ongoing basis; as time moves along, more opportunities exist; and as the debt gets paid down, there is a shorter duration of things to pay off.

OVERVIEW OF COUNTY'S CURRENT FINANCING

Commissioner Voltz noted when the Board refinances bonds for a low interest rate, it does not change the out date; with Mr. Holley responding it has not extended the final maturity on bonds being refinanced to his knowledge.

Commissioner Higgs inquired is staff reviewing a potential savings if the County were to construct a government services building in Palm Bay; with Commissioner Voltz responding affirmatively. Mr. Jenkins stated someone raised the point that the facility will be serving all of South Brevard; he does not know if that is the best location to serve all South Brevard; it would be very good for Palm Bay, but may not be good for the whole area; and the County may want to move it more to the east.

Upon motion and vote, the meeting adjourned at 1:30 p.m.

ATTEST:

TRUMAN SCARBOROUGH, CHAIRMAN
BOARD OF COUNTY COMMISSIONERS
BREVARD COUNTY, FLORIDA

SANDY CRAWFORD, CLERK
(S E A L)