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COMMISSIpNER'S REGULAR MEETING <br />Friday, August 18, 1978 <br />4. COMM NICATIONS (Continued) <br />Mr. rownell: On the chart we have listed the Project Notes starting in 1974 <br />when the balance owed was $10,150,000, showing payments made and the source <br />of finds. Today the balance of $2,195,000 was all paid. (A copy of the chart <br />is b ing attached to the original minutes of this meeting) <br />Mr. One thing further, Mr. Brownell. You might explain about the <br />exce s in the amount of $251,000. <br />Mr. Brownell: The Community Development personnel have a letter of credit, <br />and between the Community Development personnel and HUD there is this constant <br />relationship, because the Government, while they used to send out money and <br />checks to us, we could put the money in the bank and collect interest on it, <br />but the Government no longer does it that way. They just send you a letter <br />of c edit now, and tell you that you won't receive any money until you need <br />to s end it for something, at which time they will supply you with the money. <br />You ake it "down" as we call it, from the Letter of Credit. The purpose <br />behi d this is very interesting. Years ago the Government had two million in <br />Souti Bend, and two million here and there, and everywhere, and they had to <br />borr w this money and pay interest on it, and we had the money sitting in a <br />bank account not being spent. <br />Mr. Nimtz: Mr. Ellison, do you wish to add anything further to this? <br />Mr. Ellison: Yes, just that we had argued with the people from the Housing & <br />Urban Development over how much money we needed to reserve. We had estimated <br />six hundred forty two thousand. Our estimate would have been more accurate <br />and would have saved some paperwork, but we are not losing any money in the <br />process. <br />Mr. rownell: Well, it turns out you were forty thousand above what we needed, <br />and hey were two hundred fifty thousand. Does that answer your question? <br />Mr. �imtz: Yes, I believe so. <br />5. OLD BUSINESS <br />Thero was no old business to bring before the Commission. <br />6. NEW BUSINESS <br />a. Qommission approval <br />eneral construction <br />unsex review <br />uested for award of the following bid contracts for <br />lumbing, and heating, Contract Set #002, in accordance <br />the South Advisory Board, with award subject to legal <br />outh Bend Common Council approval, as applicable: <br />Contract Set #002 <br />Charles Brown Maintenance Co., Inc. <br />(General construction contract) <br />-5- <br />$6,017.00 <br />