08-16-1988 Meeting - Laserfiche WebLink

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Page Two Minutes August 16, 1988 Claude Graves questioned the deposits into the Bond Fund, the dates and the amounts. David Swartz discussed this matter with the Board. Interest payments will start June 1, 1989. The payments have to be made beginning this date with deposits being made on a six (6) month basis instead of monthly. By June 1, 1989 the Water Authority will have earned some interest and will also have proceeds from the second issuance of bonds. That is what will be used to make the June 1, 1989 payment even though participants have not begun to purchase water at that time. David Swartz stated the timeline he understood was that this needed to be back to the Texas Water Development Board within the next two (2) weeks. After it is signed it will be sent to the Attorney General"s office after the Texas Water Development Board reviews. David Swartz commented the Attorney General"s stated they were very busy right now and would not review until it was signed. Discussion was held on cash flow. It was suggested that possibly a special called meeting be held and Pete Fisher would do a complete print out. Claude Graves stated that at some point he would also like to see an analysis of a pay out based on sale of water, John Joerns and David Fetzer of Maroney & Beissner arrived for the Board meeting at 6:45 P.M. David Fetzer discussed the history of purchasing capacity in Southeast Water Purification Plant. He discussed the bond issue and the method of receiving the funds. He discussed the various dates that payments were due and the amounts needed for these payments. He discussed the possibility of requiring contracting parties to meet interest payments prior to receiving water. Board requested a cash flow projection prior to approving the resolution. David Fetzer stated he could have by Monday, August 22, 1988 The Board tabled this item and will call special meeting to be held at the Public Works Service Center on Monday, August 22, 1988 at 6:00 P.M.