12-07-1993 Meeting - Laserfiche WebLink

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~I Now that we have reviewed the balance sheet and profit and loss statement items, I would like to go behind the numbers and discuss the actual mechanics of the Authority. The Authority is comprised of four major functions with each owning its respective share of the assets and assuming its share of the liabilities. The four functions and their share of the working capital is: Function Operations Debt Service Phase I Bond Funds Phase II Bond Funds (Purification Plant) (Transmission Lines) Total Working Capital Working Capital at 9/30/93 $ 1,097,629 123,755 131,370 496,775 $ 1,849,529 Operations is the primary function. The day to day operations are accounted for in this fund, as well as amounts that have to be established for legal compliance with the bond resolutions. The amounts that have been established and collected for the Reserve and Contingency amounts for the two issues total $877,069. When this amount is subtracted from the total of $1,097,629, it leaves a true operating working capital balance of $220,560, which represents an increase of $107,622 over the September 30, 1992 balance. The Debt Service function has a working capital balance of $123,755. From a cash standpoint, the function actually has $509,856; however, we have subtracted accrued interest payable at September 30, 1993 and the amount of principal retirements that will be made in fiscal year 1993 to calculate its working capital balance. This function will continue to collect funds each month in order to make principal and interest payments of $814,408 during the year. The balance in the Purification Project function, representing Phase I funds, is $131,370 at year end. I have provided an internally prepared document that shows the inception to date activity for this project and have attached it to this memorandum. The balance in the Transmission Project function, representing Phase II funds, is $496,775 at year end. I have also provided a report for this project. In summary, the Authority is in compliance with all financial legal requirements and has sufficient operating funds to successfully go about their day to day operations.