Eastern Municipal Water District
California

Financing Authority Item
3943

Eastern Municipal Water District Financing Authority Fiscal Year 2019 Third Quarter Financial Report

Information

Department:FinanceSponsors:
Category:Financing Authority Item

Attachments

  1. Printout
  2. Exhibit A - Quarterly Report

Background

On April 15, 2015, the Eastern Municipal Water District (EMWD) Board of Directors approved Resolution Nos. 2015-032 and 2015-033 and a Joint Exercise of Powers Agreement (JPA) in order to form the Eastern Municipal Water District Financing Authority (Financing Authority).  The Financing Authority was formed in order to finance capital projects through the issuance of revenue bonds.  The revenue bonds are secured by Installment Payments made by EMWD pursuant to an Installment Purchase Agreement between the Financing Authority and EMWD, rather than between EMWD and the Financing Corporation as in prior financings. 

 

On June 18, 2015, the Financing Authority issued the 2015B series of bonds in the amount of $74,430,000.  Proceeds from this bond sale equaled $80,258,662. The ending balance as of March 31, 2019 is $44,339,930.

 

On May 18, 2017, the Financing Authority issued the 2017D Revenue bonds in the amount of $102,500,000.  Net proceeds from this bond sale equaled $119,017,600, of which $118,592,805 were transferred to a construction fund to finance various capital improvement projects and infrastructure, including a portion of the Temecula RWRF expansion. Two construction drawdowns were performed on December 18, 2017 and May 18, 2018, in the amounts of $26,649,000 and $6,040,000, respectively. On December 17, 2018, the construction funds were transferred from the States Local Agency Investment Fund (LAIF) to Chandler Asset Management to be actively managed. The fund balance as of March 31, 2019 is $88,657,484.

 

Under California law and the Joint Powers Agreement, the Eastern Municipal Water District Financing Authority is a public entity separate from the parties to the JPA, which include EMWD and Community Facilities District (CFD) No. 2001-01 (French Valley).  The debts, liabilities and obligations of the Authority are not the debts, liabilities or obligations of the CFD, Eastern Municipal Water District, or any representative of the CFD or Water District serving as the governing body of the Authority.

 

Formation of the Financing Authority entails additional administrative tasks: 1) preparing a special audit at least once in every two-year period, 2) preparing quarterly Treasurer reports to the Board, CFD, and EMWD, 3) conducting at least one public meeting a year, 4) updating the administrative code when appropriate, and 5) preparing annual State financial reports.  The attached Fiscal Year 2019 Third Quarter Report Financial Report (Exhibit A) satisfies the second and third requirements.

 

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

As noted herein

 

ENVIRONMENTAL IMPACT:

None

 

Recommendation

Receive and file

Meeting History

Jun 5, 2019 10:30 AM  Financing Authority Regular Meeting
draft Draft

Mr. Turner provided an oral update on this item

RESULT:APPROVED [UNANIMOUS]
MOVER:Philip E. Paule, Vice Chair
SECONDER:Randy A. Record, Authority Member
YES:Ronald W. Sullivan, Philip E. Paule, Stephen J. Corona, Randy A. Record, David J. Slawson