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<br />7. CONTRACT REVENUE BONDS PAYABLE, DEBT SERVICE REQUIREMENTS
<br />AND BONDS RESOLUTION REQUIREMENTS
<br />
<br />On October 6, 1999, the La Porte Area Water Authority issued $8.08 million in Contract
<br />Revenue Refunding Bonds, Series 1999, with an average interest rate of 5.159% to refund $8.08
<br />million in outstanding Water Supply Contract Revenue Bonds, Series I and il, 1998 with an
<br />average interest rate of 6.94%. The Authority completed the current refunding to reduce its total
<br />debt service payments over the next 18 years by $1.476 million and to obtain an economic gain
<br />(difference between the present values of the old and new debt service payments) of $1.048
<br />million. The bonds are payable from the net revenues of the Authority. The bonds are in $5,000
<br />denominations. Interest on all bonds is payable on March 15 and September 15 of each year to
<br />maturity. The Authority is in compliance with all significant requirements and restrictions
<br />contained in the bond resolution.
<br />
<br />Bonds payable at September 30,2007, are comprised of the following issue:
<br />
<br /> Interest
<br /> Amount Interest Maturity Payment Callable
<br /> Outstanding Rate Date Date Date
<br />$ 5,595,000 4.75% - 5.75% March 15, 2017 March 15/ March 15,2010*
<br /> September 15
<br />
<br />*
<br />
<br />Or any date thereafter at par value plus accrued interest in accordance with redemption provisions
<br />of the bond resolution.
<br />
<br />Bonds payable activity for the year ended September 30,2007, was as follows:
<br />
<br /> Amounts
<br /> Beginning Ending Due Within
<br />Bonds and Notes Payable Balance Additions Retirements Balance One Year
<br />Contract Revenue Refunding
<br />Bonds, Series 1999 $ 6,055,000 $ $ 460,000 $ 5,595,000 $ 485,000
<br />
<br />As of September 30,2007, the debt service requirements on contract revenue bonds outstanding
<br />for the next five fiscal years and thereafter through 2017 are as follows:
<br />Year Ending Total
<br />September 30, Principal Interest Requirements
<br />2008 $ 485,000 $ 273,531 $ 758,531
<br />2009 505,000 245,069 750,069
<br />2010 525,000 215,456 740,456
<br />2011 550,000 185,513 735,513
<br />2012 580,000 156,162 736,162
<br />2013-2017 2,950,000 326,144 3,276,144
<br />Total $ 5,595,000 $ 1,401,875 $ 6,996,875
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