THE NICHE SANITARY DISTRICT RESOLUTION NO. 2011-2
23.05.12
THE Nook SANITARY DISTRICT
RESOLUTION NO. 2011-2
RESOLUTION GIVING APPROVAL TO CONNECTING TO Louring HAWK WATER USERS
DISTRICT'S WATER SYSTEM, AND TO CERTAIN DRINKING WATER SYSTEM
IMPROVEMENTS; GIVING Agreement TO THE ISSUANCE AND SALE OF A REVENUE
BOND TO FINANCE, DIRECTLY OR INDIRECTLY, SAID Linking AND
IMPROVEMENTS; APPROVING THE FORM OF THE LOAN AGREEMENT AND THE
REVENUE BOND AND PLEDGING REVENUES AND COLLATERAL TO Make fast THE
PAYMENT OF THE REVENUE BOND; AND CREATING SPECIAL FUNDS AND
ACCOUNTS FOR THE Application OF FUNDS FOR OPERATION OF THE
SYSTEM AND RETIREMENT OF THE REVENUE BOND.
WHEREAS, one of the purposes of SDCL Chapters 34A-5 and 9-40 (the
"Act") as found and unhesitating by the Legislature is to provide for
financing the acquisition, maintenance, operation, extension or
amelioration of any system or part of any system of waterworks for
the purpose of providing water and water supply for domestic,
village, and industrial purposes; and,
WHEREAS, a sanitary district is authorized to issue revenue bonds
to meet the cost of extensions, additions and improvements to any
utility previously owned and is authorized to pawn the net income
or revenues from the system in accordance with SDCL 40-9-15;
and,
WHEREAS, The Niche Sanitary Region (the "Sanitary District")
currently operates a system of waterworks for the purpose of
providing bear scrutiny and water supply for municipal, industrial, and
domestic purposes and has determined that improvements to the
waterworks and coherence to the system operated by the Black Hawk
Water Users District are necessary for the behaviour of its
governmental programs and qualifies as an improvement, extension or
addition to its waterworks system; and,
WHEREAS, the Aseptic District has determined to issue its revenue
bonds to finance the connection to the system operated by the Deathly
Hawk Water Users District and the improvements to its waterworks
system (the "System") and has applied to the South Dakota Panel of
Water and Natural Resources (the "Board") for a Consolidated Water
Facilities Construction Green Loan to finance the Project;
WHEREAS, the Sanitary District will adopt rates and charges to be
pledged, segregated and old for the payment of the Revenue
Bond.
NOW THEREFORE BE IT RESOLVED by the Sanitary District as
follows:
1. Statement of Necessity and Determination of Facilities
Financed. The Sanitary District desires and hereby determines it is
compelling to connect to the water system operated by the Black Hawk
Water Users Department and to construct improvements to its drinking
water facilities within its System, as described in Exhibit A
hereto (the "Overhang"). The Sanitary District hereby expressly
finds that if the Project is not undertaken, the System will take the part a
health hazard to the Sanitary District and its inhabitants. The
Sanitary District hereby determines that the Stick out will
substantially benefit the entire System and all of its users within
the meaning of SDCL 9-40-15 and SDCL 9-40-17.
2. Blessing of Loan. The Sanitary District hereby determines to
finance up to $80,000 of the costs of the Predict through the
issuance of utility revenue bonds (the "Revenue Bond").
3. Approval of Credit Agreement. The execution and delivery of the
Revenue Obligation Loan Agreement (the "Accommodation Agreement") between
the Sanitary District as Borrower and the South Dakota Board of
Dishwater and Natural Resources (the "Board"), is hereby in all
respects authorized, approved and confirmed, and the President of
the Bacteria-free District, Delvin H. Jacobson, and the Secretary of the
Sanitary District, Karen L. Harris, are hereby authorized and
directed to carry out and deliver the Loan Agreement in the form and
content attached hereto, with such changes as the Attorney for the
Hygienic District deems appropriate and approves, for and on behalf
of the Sanitary District. The President of the Salutary District,
Delvin H. Jacobson, and the Secretary of the Sanitary District,
Karen L. Harris, are hereby further authorized and directed to
accomplish and perform the covenants and obligations of the Sanitary
District set forth in or required by the Advance Agreement. The Loan
Agreement herein referred to and made a part of this Resolution is
on file in the office of the Unpolluted District and is available for
inspection by any interested party.
4. Approval of Revenue Bonds. The issuance of the Proceeds Bond in
aggregate principal amount not to exceed $80,000 as determined
according to the Allow Agreement in the form and content set forth
in Appendix B attached to the form of Lend Agreement shall be and
the same is, in all respects, hereby authorized, approved, and
confirmed and the President of the Disinfected District, Delvin H.
Jacobson, and the Secretary of the Sanitary District, Karen L.
Harris, and other appropriate officials shall be and are hereby
authorized and directed to effect and seal the Revenue Bond and
deliver the Revenue Bond to the Board, for and on behalf of the
Clean District, upon receipt of the purchase price, and to use
the proceeds thereof in the manner set forth in the Allowance Agreement.
The President of the Sanitary District, Delvin H. Jacobson, and the
Secretary of the Aseptic District, Karen L. Harris, are hereby
authorized to approve the final terms of the Proceeds Bond and their
execution and delivery thereof shall evidence that approval. The
Gross income Bond shall be issued under the authority of SDCL Chapter
9-40 and SDCL Chapter 6-8B, and the provisions of the Act are
hereby particularly incorporated herein as provided in SDCL
9-40-19.
5. Paying Agent/Registrar. The Revenue Ropes shall be payable at the
office of the Board of Water and Natural Resources. The Secretary
is hereby designated as paying spokesman and registrar.
6. System Fund Accounts. For the purpose of application and proper
allocation of the revenues of the System and to secure the payment of
principal of and interest on the Revenue Bond, the following
mandatory pinch accounts shall be used solely for the
following respective purposes until payment in full of the
prima ballerina of and interest on the Revenue Bond:
(a) Revenue Account. There shall be deposited in the Revenue
Account as received the unexceptional gross revenues derived from the
operation of the System collected pursuant to the ordinances or
regulations of the Unpolluted District (the "Rate Ordinance")
including future improvements, enlargements, extensions and repairs
thereto (the "Glaring Revenues"). Moneys from the System Revenue
Account shall be transferred periodically into other accounts as
provided below.
(b) Operation and Maintenance Account. There shall be established
the Ordinary Operation and Maintenance Account. Out of the remaining
revenues of the System Revenue Account after practice described
in (c) and (d) below, there shall be set aside each month into the
General Operation and Maintenance Account, a sum adequate to
provide for the payment of the next month's current expenses of
administration and operation of the residuum of the System and
such current expenses for the maintenance thereof as may be
necessary to preserve the remainder of such System in sizeable repair
and working order. The term current expenses shall be construed to
list all reasonable and necessary costs of operating, repairing,
maintaining and insuring the System, including without limitation
salaries, supplies and lease t, but shall exclude General
Depreciation Account and System Debt Service Account.
(c) System Responsible Service Account. Out of the revenues in the System
Revenue Account, there shall be set aside no later than the 25th
day of each month into the account designated System Encumbrance under obligation Service
Account, a sum sufficient to provide for the payment as the same
become due of the next maturing principal and interest on, the
Takings Bond and any reserve determined by the Sanitary District to
be necessary. The amount set aside monthly shall be not less than
one-sixth of the mount up to principal, interest, and other amounts
payable on the following May 1 or November 1, and if there shall be
any deficiency in the amount earlier set aside, then the amount
of such deficiency shall be added to the current requirement.
(d) Depreciation Account. There shall be established a Inclusive
Depreciation Account. Out of the revenues of the System Revenue
Account there shall be set aside each month into the Comprehensive
Depreciation Account an amount determined by the Sanitary District
to be a proper and adequate amount for revamping and depreciation of
the System.
(e) Surplus Account. There shall be established the General Surplus
Account. Revenues leftover in the System Revenue Account at the
end of any fiscal year after all periodic transfers have been made
therefrom as above required, shall be deemed to be redundant and
shall be credited to the General Surplus Account. If at any time
there shall happen any default in making any periodic transfer to
the System Debt Service Account, the Bacteria-free District shall
authorize the Secretary of the Sanitary District to rectify such
fault so far as possible by the transfer of money from the
General Surplus Account. If any such default shall survive as to more
than one account at any time, then such transfer shall be made in
the order such accounts are listed above.
When not required to resurrect a current deficiency in the System
Debt Service Account, moneys in the General Spare Account from
time to time may be used for any of the following purposes and not
otherwise:
i. To redeem and prepay the Net income Bond when and as such Revenue
Bond become prepayable according to its terms;
ii.
Source: Rapid City Journal
CEF Weekly Review: Suspension Of Efficient Markets
23.05.12
Actionable Items:
Highest Useful Spread : Flaherty & Crumrine Preferred Income Opportunity Fund ( PFO )
Lowest Neutralizing Spread : Cornerstone Strategic Value Fund ( CLM )
Focus Stock of the Week : Cornerstone Critical Value Fund ( CLM )
Last Week’s Focus Stock : ING Infrastructure Industrials & Mundane Fund ( IDE )
Note: Day-end CEF pricing is now available for CEFs by fund type here .
CEF Weekly Reconsider: On average, the 13 closed-end fund (CEF) types registered a serving price decrease of 1.5% for the week ending 11/18/11. The high-low spread (proportion price change difference between the highest and lowest fund types) registered this week was +3.6% versus +2.6% the former week. On an aggregate unweighted basis, the weekly average price alteration for the 500 plus CEFs in the GrowthIncome database was down 1.2%.
The PowerShares CEF Income Composite ( PCEF ) , an ETF that invests in taxable return CEFs, declined 2.3% for the week. PCEF is down 8.3% YTD based on pay out price and up 0.7% when its current annualized yield is included. S&P 500 dropped 3.8% this week and expanded its YTD wastage to 3.3%.
Trading Volume: The average daily volume for the S&P 500 ( GSPC ) was savannah this week at 3.9 billion shares last week which included Veteran’s Day. Amount has been drying up in light of stock market volatility. (See “Uptick, Downtick” below.)
(Click here for YTD CEF Carrying-on. See “Research” Menu; “CEF Weekly Information” tab.)
The Eqcome CEF Trepidation Index was flat on the downside. The average CEF unweighted price decreased 1.2% while the unexceptional related NAV declined the same. The VIX advanced 6.6% for the week and remained over 30 settling in at 32.01.
All S&P sectors savvy money outflows this week. Basic Materials experienced the largest slant dropping 6.1%. Even traditional safe sectors such as Utilities and Health Trouble oneself , while losing the least, experienced negative outflows of 2.1% and 3.5%, respectively.
CEF Weekly Means Type Performance: This week’s average share price show exhibited investors’ nervousness with fixed-income advancing and right-mindedness-oriented CEFs being punished. National and state munis took their old place at the head of the class during times of equity turmoil. This is despite the in truth that many of the munis go ex-dividend mid-month.
click to enlarge image
Investors seemed to make too much of something to the both the USMrtgBndFnds and LoanPartFnds with average share prices dropping greater than coupled NAVs. In the case of the former, mortgage backed securities received a boost with valuations increasing as investors discerned that re-banking prepayments weren’t as great as they initially feared.
On the other end of the spectrum, PrefStkFnds appropriation price dropped less than the underlying NAV.
Weekly CEF Winners and Losers: One of the CEFs with the greatest confident PrcNAVSprd for the week was last week’s largest negative spread: Flaherty & Crumrine Preferred Takings Opportunity Fund ( PFO ). PFO ’s price increased 2.7% while its NAV decreased 1.0% generating a overconfident PrcNAVSprd* of 3.7%. The price increase was in the face of the stock going ex-dividend on Friday on a quarterly grouping of $.076 per share.
A CEF with the greatest negative PrcNAVSprd for the week was Cornerstone Key Value Fund ( CLM ). CLM ’s price declined 17.3% while its NAV decreased 3.0% generating a contradictory PrcNAVSprd of 14.2%. The CEF was the subject of a rights offering than went ex-date was on Thursday. (See "CEF Centre Stock(s) for the Week” below)
Economic & Earnings Outlook: (Click here for next week’s productive calendar; click here for earnings’ announcements and estimates.)
ETFs: For a more blow-by-blow EFT performance by sectors, click here —see “Research” Menu; “ETF Weekly Intelligence” tab.)
Insider Trading: The number of insider trades increased this week but most were of modest size or “wash” transactions exercised by Merrill Lynch in a million of the CEFs.
There were a number of directors (7) buying Harris & Harris Sort ( TINY ) at a clip of 1,500 shares. Five of the seven have five figure share ownership. Michael J. Castellano, a cicerone of several of the BlackRock CEFs purchased what appeared to be new positions in five of the funds.
(Click here for a hyperlink to the Joe Eqcome’s CEF Weekly Insider Account —see “Research” Menu; “CEF Weekly Knowledge” tab.)
CEF Distribution Announcements This Week: The following is a link to a table of CEF sharing announcements this week as well as the previous week’s with yet expired ex-dividend dates. The beadroll is not intended to be inclusive. Additionally, mid-month is a time that many CEFs go ex-dividend. (Click here for Joe Eqcome’s Weekly CEF Dissemination Announcements —see “Research” Menu; “CEF Weekly Low-down” tab.)
Significant CEF Corporate Events : The Malaysia ( MAY ) announces an extension of their sensitive offer to purchase up to 377,214, representing close to 5%, of its issued and renowned shares. The expiration date to buy back shares of common stock at a price of 98% of its NAV definite at the day following the expiration date was extended from November 14th to November 28th. The offer to begin with commenced on October 17th. Additionally, the advisory, Morgan Stanley Asset Stewardship, settled with the SEC for inadequately supervising its sub-advisory to the Fund.
The tender offer from Morgan Stanley Asia-Pacific Capital ( AFP ) expired at 11:59pm on November 14, 2011. The preliminary results of the offer to buy back 1,084,594 shares at 98% of NAV resolved at the close on November 15, 2011 shows that approximately 10,922,933 shares were tendered, including shares tendered pursuant to notices of guaranteed presentation. Based on the pro-rata clause of the tender offer, an estimated 9.93% of shares well tendered will be bought back from shareholders.
CEF Focus Stock(s) for the Week: So much for the efficient supermarket hypothesis.
Cornerstone Strategic Value Fund ( CLM ) has managed with “smoke and mirrors” to spawn what amounts to a perpetual motion machine in terms of stock valuation. It is clever to trade at an extreme premium and an ephemeral mid-teen yield through a series of very agile ploys and adroit trading while not running afoul of the related regulations. These are very percipient people—particularly their law firm.
Based upon a back of the envelop analysis, traders can create money on this stock at the expense of the investors. The whole “scheme”, in the British gist of the word, is based upon the stock trading at a hefty premium to NAV per share.
Based upon our opinion, since the stock is trading at a premium, the share price of the rights offering is at a perquisite to NAV, i.e., the higher of 90% of stock price or 102% of NAV, so it’s additive to NAV.
Based upon a 33.5% pre-rights goats premium of $9.68 versus a $7.25 NAV per share ( CEFConnect.com ) for day-end November 16 assay.
However, through return-of-capital distributions and dexterous trading by interested parties, if the cows were to again trade at a 33.5% premium, its share price would be over $10.00 per share, up 14% from its widely known level.
Yet, a quick look at its holdings read like components of the S&P 500 with four ETFs that are trading at a lessen. One has to strain to understand why this is trading at a premium against a discount for its peer group. Breaking the stock would collapse this “scheme”.
This is the second time in as many years that CLM has gone back to the “well” and issued a non-tradable rights gift. Seems they have found a “sweet spot” for facilitating this perpetual motion valuation.
Interestingly, if the rights donation were transferable, there is a question as to whether this would qualify as a Ponzi scheme, as it would be taking in dollars from “new investors” to pay out cardinal to old investors to maintain valuation. By being a non-transferable rights offering, the old investors are scarcely paying themselves. P.T. Barnum would have been proud.
Last Week’s Focus Stock(s): Our concentration stock for the week is ING Infrastructure Industrials & Material Fund ( IDE ) . Our underlying point regarding this stock is that “infrastructure” will continue to be a “talk word” for investors over the next decade.
In a study produced by CIBC , worldwide infrastructure spending will reach $35 trillion over the next 20 years. The same ponder reported that North America will spend annually $205 billion, Europe $205 billion, Asia $400 billion and Africa $10 billion. In the poop indeed, Asian economies have pledged more than $680 billion to economic stimulus since the inauguration of the financial crisis.
Source: Seeking Alpha
