Title
a. Approve Budget Amendment No. 3 authorizing the Auditor-Controller to amend the Monterey County Water Resources Agency's FY 2014-15 Budget by transferring funds to cover the second annual SVWP Bond Debt Service payment in the total amount of $2,137,863; and
b. Authorize the Auditor-Controller to amend the FY 2014-15 WRA Adopted Budget, Dept. 9300, Unit 8267, Fund 133 (SVWP Revenue Fund), Appropriation Unit WRA027, Account 6811, to increase appropriations by $32,000 financed by available unassigned fund balance (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
a. Approve Budget Amendment No. 3 authorizing the Auditor-Controller to amend the Monterey County Water Resources Agency's FY 2014-15 Budget by transferring funds to cover the second annual SVWP Bond Debt Service payment in the total amount of $2,137,863.
b. Authorize the Auditor-Controller to amend the FY 2014-15 WRA Adopted Budget, Dept. 9300, Unit 8267, Fund 133 (SVWP Revenue Fund), Appropriation Unit WRA027, Account 6811, to increase appropriations by $32,000 financed by available unassigned fund balance (4/5th vote required).
SUMMARY/DISCUSSION:
When the Monterey County Financing Authority Series A Revenue Bonds ("Salinas Valley Water Project") were issued in 2008, the financing structure required that a reserve fund be set aside from issuance proceeds equivalent to the highest annual debt service required during the 30 year term of those bonds. That amount, $2,189,250 is held by the custodian/trustee MUFG Union Bank, N. A. (formerly "Union Bank of California, N. A.") in the principal amount of $2,189,250. Bond indentures prescribe that those funds be held for payment of the final debt service in 2037-38.
On August 7, 2008, a bidding auction for investment of those proceeds was orchestrated by BLX (formerly "Bond Logistics, Inc."), a subsidiary of Orrick, Herrington, and Sutcliffe LLP who s...
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