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VII. SYSTEM IMPLEMENTATION FUNDING <br />A. The County will provide initial financing for the costs of acquisition, installation, and <br />implementation of the System ("Implementation Costs"). <br />B. As part of the initial financing of the Implementation Costs, the County will apply <br />state grant funds received under the Help America Vote Act and required County <br />matching funds as a setoff against the Implementation Costs. <br />C. The Municipalities will provide the funds to reimburse the County for the System <br />Equipment identified as the responsibility of the Municipalities in Appendix A. <br />VIII. COST ALLOCATION/PAYMENT <br />A. Cost Allocation-Implementation Costs <br />1.Each of the Municipalities will reimburse the County for the cost of the <br />number of ballot counters, ballot boxes, and ballot marking devices required <br />by that Municipality in accordance with the pricing in Appendix A. A list of <br />the number of ballot counters, ballot boxes, and ballot marking <br />devices for each of the Municipalities and the percentage of the total cost for <br />ballot counters and ballot marking devices to be paid by each of the <br />Municipalities is listed in Appendix C. The total number and each <br />Municipality's percentage of ballot counters and ballot marking devices may <br />be adjusted throughout the term of this Agreement including any extensions. <br />2.For those Municipalities that have elected to pay for the ballot counters, <br />ballot boxes, and ballot marking devices over time, the total amount to be <br />paid will include their proportionate share of any financing costs incurred by <br />the County for the purchase, installation and implementation of the System <br />Equipment, which financing costs will be shared among those Municipalities <br />that have elected to pay over a period from two to five years. The County <br />will charge each Municipality that chooses to finance the purchase of its <br />System Equipment 2%per annum. <br />B. Cost Allocation-Post-Implementation/Operating Services <br />1.There will be no charge to the Municipalities for ballot layout for all <br />elections, ballot printing for State and county elections or for memory device <br />programming. <br />9