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Show Oversight in bonding could work to taxpayers' benefit, says fire district frustrali'ii.," said Bun ana; il li e district's recent bonding faux pas. In the future the fire district will use the certified public accounting firm of Touche Ross to make sure of its financial dealings. "We did not consult them (Touche Ross) on the bonding because we felt that was what we were paying the bonding agent for." government. However, Buchanan said the district was unaware that it was responsible for this year's payments from the general fund. She said that Zion's Bank did not make the fire commission aware of the plan. As a result, the fire district will make tax anticipation loans from Zion to cover this year's bond payments. The interest on the loans will be about five percent, Buchanan said. "It would have been virtually impossible" for the fire district to repay the bonded indebtedness through the general fund this year, said Buchanan. The district is restricted to raising its budget by ntfrd UbaO tsix HpetcCotcennuallyA, according to state law. But Buchanan maintains that under Utah State Tax Commission guidelines, the budget increased by only two percent. The February bond payment was made from interest gained by the remaining portion of the funds garnered through bonding. The August payment will come from a tax anticipation loan, Buchanan said. Bond payments for the remaining nine years will come from an increase in the fire district's mill levy. Referring to the bond payment schedule, Buchanan said, "A lt t this wasn't pointed out . . . Bonding is totally new to us." She added, however, that the confusion surrounding sur-rounding the bond payments may, in the long run, benefit taxpayers. Interest on unspent bond monies will offset the five percent interest on the loan for the August payment, Buchanan said. Zinn's Bank, as a fqsuU of the; mix,-up, piay be willing to restructure the bonding, which would be to the district's advantage. Buchanan said interest rates ?nn bonds has decreased since last summer. Restructuring of the bond would benefit taxpayers, she said. "It isn't a disaster, it's just a by Christopher Smart An apparent mix-up in the Park City Fire District's bond repayment schedule will leave a shortfall in district coffers but default is not expected by officials. According to Fire District Commissioner Com-missioner Jeane Buchanan, miscoin-munication miscoin-munication between Zion's Bank, which was acting as the bonding , agency, and the fire district will mean tax anticipation loans will be required on principal and interest for this year's scheduled payments on $1.2 million. On June 26, 1984, residents of the Park City Fire District voted to issue f the bonds. The $1.2 million financed by the bond issue is to be paid back . over a 10-y9Wl,priod1IJhe,JmoBey I will finance a new fire station at Kimball's Junction. A new second floor for the Park Avenue Station and a new fire house at Summit Park are near completion. They were also funded by the bond. But according to the terms of the bond contract, the fire district is responsible for 1985 payments from its general fund rather than from levies channelled through county |