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Show Burn Plant Board Hears Discussion Of Variable Rates By GARY R. BLODGETT Clipper News Editor FARMINGTON - After meeting behind closed doors in executive session for more than an hour, Davis County Solid Waste Management Manage-ment Board heard a brief report regarding a proposed "variable interest" program for bonding. WARREN T. Gregory, vice president of the public finance division for Smith Barney and Company, told the board that variable-rate financing is an "excellent means of financing the proposed garbage burn plant for Davis County." He explained that variable interest over the past several years has been between a low of four percent and a high of eight percent annually annual-ly on large bonding projects such as for the burn plant. "BUT SINCE this is a new program and we are not certain of the future, there is a stipulation stipula-tion in the agreement that allows the seller (Davis County) to convert the bonds later to a fixed interest rate," he told the board. He said the variable interest rate is presently just under 6 percent, but the annual payment is based on the weekly fluxuation of the interest on the bonds. "IT USUALLY is much less than a fixed rate of 10.5 or 11 percent annually, based on the present interest rate," he said. But there are still several "kinks" to be worked out in the negotiations and preparation for the bond sale set for Thursday, Nov. 29, according to Board Chairman Robert Palm-quist, Palm-quist, mayor of North Salt Lake. THE BOARD is expected to meet tonight at 6 p.m. and "continue as late as necessary to review and approve the bonding documents." Final action is expected to come next Wednesday Wednes-day (Nov. 28). Mr. Gregory told the board that it would have to give 45 days notice to have the bonds transferred from variable to fixed interest rate ".wiiiwiw .m mm ummt mji ji i niwgimii i iwemmliwm iiininin and the transfer of bonds can be made only once during the 22-year lifespan of the bonds. MAYOR Palmquist explained that the Board had to meet in executive session because of litigation a law suit being filed against the special services district and board of directors and possible acquition of property in the area of the North Area Refuse Disposal (NARD) landfill. A spokesperson for the citizens' group said the law suit is being filed in an attempt to stop the special services district from having a garbage-to-energy burn plant constructed about 1,500 feet north of State Highway 193 immediately immedi-ately east of Hill Air Force Base. RESIDENTS of the area allege that the proposed prop-osed plant would destroy the esthetics of the neighborhood and create an eyesore present and future residential living. One resident said the proposed plant and its tall emission stacks would be in a direct line between his home and the runway of Hill Air Force Base. He said he not only enjoyed watching planes take off and land (he's a veteran veter-an military and civilian pilot), but was concerned con-cerned about the emission released from the plant. ANOTHER resident said the plant would be built "on a direct line as I look out my front door." Both said their homes would be within 1,200 feet of the proposed facility. " Opening the meeting before the executive session was called Kaysville Mayor Gerald Purdy said he visited a steam-generating garbage gar-bage burn plant near Langley AFB, Hampton, Va. "I WAS quite impressed with the plant and its steam-generating capabilities," said Mayor Purdy. "The plant was near residential homes, but residents of the area said they were not offended by the plant and its operation." Mayor Palmquist said he would like to have opponents of the burn plant see a smiliar facility facil-ity in operation, "and then they would see that a burn plant is the best way to go." |