ITEM: INFORMATIONAL
ITEMS/STAFF REPORTS
27. SEMI-ANNUAL FINANCIAL REPORT ON
CAWD/PBCSD WASTEWATER RECLAMATION PROJECT
Meeting Date: February 27, 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 by MPWMD and the Carmel
Area Wastewater District (CAWD) in this semi-annual reporting period, and
interest rate trends on the outstanding certificates.
|
Par of 1992 Certificates |
$33,900,000 |
Investment of
Proceeds
|
Description |
Institution |
Market Value |
Rate/Yield |
Term |
|
Acquisition
Fund |
US
Bank AIM Treasury |
$55,995 |
1.08% |
Daily |
|
O
& M Reserve Fund |
Prudential
Securities |
$285,930 |
3.72% |
Daily |
|
Renewal
& Replace Fund |
Prudential
Securities |
$213,743 |
4.73% |
Daily |
|
Other Funds |
|
|
|
|
|
Water
Sales Revenue Acct. |
Bank
of America |
$427,888 |
1.30% |
Daily |
|
Prior Disbursements |
$30,533,977.51 |
|
Disbursements since last report |
$0.00 |
|
Total Disbursements |
$30,533,977.51 |
The
Monterey Peninsula Water Management District has transferred advances in the
amount of $898,292.39 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 Water Payments 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 Water Payments
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 rate of interest is
determined by the Remarketing Agent, Stone & Youngberg. Interest rates for this reporting period have
fluctuated between 0.95% and 1.90%.
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.
The Pebble Beach Company also made the first principal payment in the
amount of $400,000 in July 2002.
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