|
ITEM: |
INFORMATIONAL
ITEMS/STAFF REPORTS |
|||||
|
|
||||||
|
27. |
SEMI-ANNUAL FINANCIAL REPORT
ON THE CAWD/PBCSD WASTWATER RECLAMATION PROJECT |
|||||
|
|
||||||
|
Meeting
Date: |
August 16, 2004 |
Budgeted: |
N/A |
|||
|
|
||||||
|
From: |
David A.
Berger, |
Program/ |
N/A |
|||
|
|
General
Manager |
Line Item No.: |
||||
|
|
|
|
||||
|
Prepared
By: |
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, 2004 through June 30, 2004.
|
Par of 1992 Certificates |
$33,900,000 |
Investments as of June 30, 2004:
|
Description |
Institution |
Market Value |
Rate/Yield |
Term
|
|
||
|
Interest Fund |
U.S. Bank |
$29,047 |
0.00% |
Daily |
|
||
|
Acquisition/Misc. Funds |
U.S. Bank |
$22,212 |
0.61% |
Daily |
|
||
|
O & M Reserve Fund |
Prudential Securities |
$289,925 |
4.17% |
Various |
|
||
|
Renewal & Replace Fund |
Prudential Securities |
$224,274 |
3.92% |
Various |
|
||
|
Other Funds: |
|
|
|
|
||||
|
Water Sales Revenue Acct. |
Bank of America |
$761,653 |
1.00% |
Daily |
||||
MPWMD transferred advances in the amount of $977,026 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) of the Operation and Maintenance Agreement.
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.
Principal and 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 0.90% and 1.15%.
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 interest payments when excess funds are available. The interest payments shown in the table below were made from the Revenue Account maintained by the MPWMD during this reporting period. The Pebble Beach Company made no interest payments during this reporting period. No principal payments were due during this reporting period.
|
Month |
Interest
Amt. |
|
|
January 2004 |
$28,148.90 |
|
|
February 2004 |
$24,818.98 |
|
|
March 2004 |
$27,030.05 |
|
|
April 2004 |
$28,681.69 |
|
|
May 2004 |
$30,155.73 |
|
|
June 2004 |
$28,992.48 |
|
|
|
|
|
U:\staff\word\boardpacket\2004\2004boardpacket\20040816\InfoItems_Reports\27\item27.doc