ITEM: INFORMATIONAL ITEMS/STAFF REPORTS

 

22. SEMI-ANNUAL FINANCIAL REPORT ON CAWD/PBCSD WASTEWATER RECLAMATION PROJECT

 

Meeting Date: August 18, 2003 Budgeted: N/A

Program/Line Item No.: N/A

Staff Contact: Rick Dickhaut Cost Estimate: N/A

 

General Counsel Approval: N/A

Committee Recommendation: N/A

CEQA Compliance: N/A

 

On December 10, 1992, the Monterey Peninsula Water Management District (MPWMD) sold $33,900,000 worth of variable rate certificates of participation to finance the wastewater reclamation project in Pebble Beach. The tables below summarize the investment information on funds held for future use, disbursements, and interest rate trends on the outstanding certificates for the period January 1, 2003 June 30, 2003.

 

 

Par of 1992 Certificates

 

$33,900,000

 

Investment as of June 30, 2003

 

Description

 

Institution

 

Market Value

 

Rate/Yield

 

Term

 

Acquisition/Misc. Funds

 

US Bank AIM Treasury

 

$56,252

 

0.89%

 

Daily

 

O & M Reserve Fund

 

Prudential Securities

 

$294,630

 

3.99%

 

Various

 

Renewal & Replace Fund

 

Prudential Securities

 

$224,304

 

 

3.12%

 

Various

 

Other Funds

 

 

 

 

 

 

 

 

 

Water Sales Revenue Acct.

 

Bank of America

 

$424,142

 

1.13%

 

Daily

 

MPWMD transferred advances in the amount of $437,354 from the Water Sales Revenue Account to the Carmel Area Wastewater District during this reporting period. Advance payments are provided in accordance with the terms and conditions of Section 5.5 (a) Payment of Operation and Maintenance.

 


As provided in the Water Purchase Agreement, the obligation of the District to make disbursements is a special obligation of the District, payable solely from net operating revenues of the project, monies in the Revenue Fund, and other funds described in the Trust Agreement. In no event, will disbursements be payable out of any funds or properties of the District other than such sources.

 

Interest on Certificates

 

The interest rate on the Series 1992 Certificates was set initially at 2.30 percent per annum until December 16, 1992. On that date and weekly thereafter, so long as the certificates are in the variable mode, the Remarketing Agent, Stone & Youngberg, determines the rate of interest. Interest rates for this reporting period have fluctuated between 0.85% and 1.40%.

 

On June 7, 2000, the Reclamation Management Committee noted that the Capital Interest Fund, used for payment of monthly interest on the outstanding certificates would soon be exhausted. The Committee discussed the use of water sales revenue to make future interest payments. On July 3, 2000, the Reclamation Technical Advisory Committee affirmed the use of water sales revenue for bond interest payments when excess funds are available. No interest payments were made from the Revenue Account maintained by the MPWMD during this reporting period. All interest payments were made by the Pebble Beach Company due to the lack of sufficient funds in the Revenue Account. No principal payments were due during this reporting period.

 

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