ADMINISTRATIVE COMMITTEE
4.	SEMI-ANNUAL FINANCIAL REPORT ON THE CAWD/PBCSD WASTEWATER RECLAMATION PROJECT
Meeting Date:		January 19, 2016	Budgeted:	N/A
From:		David J. Stoldt,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Suresh Prasad	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on January 19, 2016 and recommended ______________.
CEQA Compliance: N/A

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 or District) 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, 2015 through December 31, 2015. During the first reporting period in 2006, the Wastewater Reclamation Project’s (Project) Operations and Maintenance Reserve and Renewal and Replacement Reserve accounts were transferred to the Carmel Area Wastewater District in accordance with the Project’s Amended Construction and Operations Agreement dated December 15, 2004. The Project’s Operations and Maintenance account (Bank of America) and Certificate of Participation accounts (U.S. Bank) remain under the control of the District and will continue to be reported on this report and future reports.

Par of 1992 Certificates

$33,900,000

Investments as of December 31, 2015:

Description	Institution	Market Value	Rate/Yield	Term
Interest Fund	U.S. Bank	$327	0.00%	Daily
Certificate Payment Fund	U.S. Bank	$791	0.00%	Daily
Acquisition/Rebate Funds	U.S. Bank	$19	0.00%	Daily
Water Sales Revenue Acct.	Bank of America	$795,189.47	0.037%	Daily

Operation and Maintenance Disbursements:

MPWMD transferred advances in the amount of $2,565,000 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:

A principal payment of $1,800,000 was made by the Pebble Beach Company during this reporting period. The outstanding balance on the Certificates is currently $15,800,000.

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 fluctuated between 0.03% and 0.06%.

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.

Effective July 1, 2013, the Reclamation Project water rates have been delinked from the California American Water Company potable rates. The rates are now set based on revenue requirement for the Project.

EXHIBIT

None

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