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and to initiate preliminary engineering designs for the dam so that the Board could be ready to start construction of the reservoir in a very short period of time. Mr. Brown said that overtures had been made by the Board to the County in order to achieve cooperation in the development of the Coddle Creek Reservoir. He hoped that the County and the Board could enter into a cooperative arrangement but if that were not possible, the Board is going to proceed on its own. The current water source for Concord has a yield of 16 mgd, the water treatment capacity is 12 m§d, and the average use is 5 mgd. Mr. Brown noted, however, that during the severe drought of the past summer some water supply problems became evident. Mr. Melvin Rape, representing the Kannapolis Sanitary District and a member of the Water and Sewer Study Commission~ reviewed the water sources and other related issues of the Kannapolis Sanitary District. The District uses the Cannon Mills water treatment plant~ which has a capacity of 15 mgd. Average daily usage is approximately 8.8 million gallons with a maximum usage of about 11-12 mgd. Of the average daily usage approximately 2.2 million gallons is used for residential purposes with the remainder being used in Cannon's manufacturing operation. The water sources used by the District are Kannapolis Lake on Buffalo Creek (safe yield of 6 mgd)~ a pump station on Coddle Creek (2.2 mgd), and a pump station on Second Creek in '- Rowan County (6 mgd). Cannon and the Kannapolis Sanitary District have an adequate supply at this time, but Cannon has done some preliminary investigating of other water sources. Much of the future of the Sanitary District and its water supply depends upon the outcome of the charter commission study process and the outcome of the referendum on incorporation to be held in November. After hearing the various presentations on the water suppiy issue, the Study Commission strongly endorsed the need for cooperative planning among the various water suppliers, the need for the development of new sources of watert the need for the County to bec, ome involved in the development of water sourcest and the need to provide interconnections among the various water supplies currently in use and proposed for use. E. Funding Options lnitially~ the attention of the Study Commission was focused on the funding provisions contained in the bond package and the various proposals for servicing and retiring the bonds as well as paying for the Countyts contribution (outside the bond revenues) to the proposed water system. As it became evident that many of these decisions were going to be made by the Board of Commissioners prior to their receiving the report of the Study Commlssion~ attention shifted to funding options for the remainder of the planned water and sewer facilities. The Study Commission received a synopsis of financial information that had been presented to them in one fashion or the other during its deliberations. This document is included in order to provide some background on the financial issues that the Study Commission considered. 17