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113 x: 9. <br />annually. It 5Mall be the policy of the Lee County Board <br />Le <br />of Commissioners that General Fund tax revenues will not be <br />used for water system expansions. <br />4) All the procedures in GS153-185 Article 9 must be <br />completed. <br />C. Service Districts <br />It shall be the policy of the Lee County Board of <br />Commissioners that the expansion of the Lee County Water System <br />may be made by the establishment of service districts as <br />provided by GS153-300 Article 16. The following conditions must <br />be met in order to complete extensions under this method. <br />1) The Board of Commissioners will hold a public hearing <br />to receive information and evidence concerning the <br />proposed service district. <br />2) The Board must find that the conditions of GS153A-302 <br />(a) and (b) have been met. <br />3) The Board will hold a second public hearing as <br />required by GS153A-302(c). <br />4) Upon an affirmative vote of the Board, the service <br />district will take effect at the beginning of the fiscal <br />year commencing after its passage. <br />D. Other methods of extension <br />It shall be the policy of the Lee County Board of <br />Commissioners that the expansion of the Lee County Water System <br />may be made by the following methods: <br />1) By grants or loans from any agency of the State or <br />Federal government on terms acceptable to the Board of <br />Commissioners and consistent with existing law. <br />2) By agreement with the City of Sanford to extend or <br />connect to the City waterline and consistent with existing <br />law. <br />Commissioner Cox advised that the Water Committee has <br />recommended adoption of this policy. He suggested a footnote be <br />put on the bottom of Section 2 explaining the "prevailing <br />reimbursement rate for the fiscal year" so it would be clear <br />that the rate is provided by the Commissioners each year. <br />Commissioner Cox moved for adoption of the Water Extension <br />Policy. Commissioner Dossenbach seconded the motion and upon a <br />vote the results were as follows: <br />Aye: Cox, Dossenbach, Matthews, Stafford and Wicker <br />5 <br />