5. 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 0.25 percent and 0.70 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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