ADMINISTRATIVE
COMMITTEE |
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9. |
SEMI-ANNUAL FINANCIAL REPORT
ON THE CAWD/PBCSD WASTEWATER RECLAMATION PROJECT |
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Meeting
Date: |
September 11, 2007 |
Budgeted: |
N/A |
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From: |
David A.
Berger, |
Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
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Cost Estimate: |
N/A |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on September 11, 2007 and recommended ______________. |
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CEQA Compliance: N/A |
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This report relates to the
original CAWD/PBCSD Wastewater Reclamation Project (Phase I) only and does not
contain any information related to the CAWD/PBCSD Recycled Water Expansion
Project (Phase II). 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
Par of 1992 Certificates |
$33,900,000 |
Investments as of December 31, 2006:
Description |
Institution |
Market Value |
Rate/Yield |
Term
|
Interest Fund |
U.S. Bank |
$279 |
4.66% |
Daily |
Certificate Payment Fund |
U.S. Bank |
$2,373 |
4.51% |
Daily |
Acquisition/Misc. Funds |
U.S. Bank |
$35 |
5.79% |
Daily |
Water Sales Revenue Acct. |
Bank of |
$187,157 |
2.91% |
Daily |
MPWMD transferred advances in the amount of $716,007 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:
No principal payment was due during this reporting period. The outstanding balance is currently $30,400,000.
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 3.33% and 3.85%.
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. Since there were not sufficient funds in the water sales revenue account during this reporting period, the Pebble Beach Company made all monthly interest payments.
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