07-01-09 La Porte Area Water Authority minutes

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7. CONTRACT REVENUE BONDS PAYABLE, DEBT SERVICE REQillREMENTS AND BONDS RESOLUTION REQUIREMENTS (Continued) Bonds payable activity for the year ended September 30, 2009, was as follows: Amounts Beginning Ending Due Within Bonds and Notes Payable Balance Additions Retirements Balance One Year Contract Revenue Refunding Bonds, Series 1999 $ 5,110,000 $ $ 505,000 $ 4,605,000 $ 525,000 As of September 30, 2009, the debt service requirements on contract revenue bonds outstanding for the next five fiscal years and thereafter through 2017 are as follows: Year Ending Total September 30, Principal Interest Requirements 2010 $ 525,000 $ 215,456 $ 740,456 2011 550,000 185,513 735,513 2012 580,000 156,162 736,162 2013 615,000 126,288 741,288 2014 640,000 95,712 735,712 2015-2017 1,695,000 104,144 1,799,144 Total $ 4,605,000 $ 883,275 $ 5,488,275 8. FUND NET ASSETS The Authority provides surface water to the City of La Porte, Texas (the "City") and the Cities of Shoreacres and Morgan's Point in order for these entities to comply with certain requirements imposed by the Harris County Subsidence District. The City retains the rights to approximately 86% of the water capacity of the Authority with the Cities of Shoreacres and Morgan's Point retaining the rights to the remaining 14%. The City and the Cities of Shoreacres and Morgan's Point have agreed to service the debt on the Authority's contract revenue bonds and to fund operations of the Authority in relation to their capacity rights and to purchase water based on actual consumption. As part of the debt service requirements, the participants are billed to build a reserve for future debt service requirements as set forth in the contract revenue bonds of the Authority. During the year, the Authority's billings were applied as follows: Water supplied and operating costs (user fees) Debt service billings/charges Capital recovery billings $ 962,843 758,532 101,772 Total billings $ 1,823,147 14