ITEM: INFORMATIONAL ITEMS/STAFF REPORTS

 

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

 

Meeting Date: February 19, 2004 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 July 1, 2003 December 31, 2003.

 

Par of 1992 Certificates $33,900,000

 

Investments as of December 31, 2003:

 

Fund Description

Institution

Market Value

Rate/Yield

Term

 

 

 

 

 

Acquisition/Miscellaneous Funds

US Bank

$54,236.47

0.64%

Daily

Certificate Payment Fund

US Bank

$2,155.92

0.42%

Daily

Interest Payment Fund

US Bank

$31,173.33

0.00%

Daily

Operations & Maint.Reserve

Prudential

$299,086.55

3.88%

Various

Renewal & Replacement Reserve

Prudential

$224,699.63

4.31%

Various

Other Funds:

 

 

 

 

 

 

 

 

 

Water Sales Revenue Acct.

Bank of America

$629,278.61

1.00%

Daily

 

 

MPWMD transferred advances in the amount of $944,258 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 0.70 percent and 1.25 percent.

 

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. Interest payments totaling $113,438.37 were made from the Revenue Account maintained by the MPWMD during this reporting period. No principal payments were due during this reporting period.

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