Minutes of the Texas Water Resources Finance Authority August 21, 2002

Chairman Jack Hunt called to order the meeting of the Texas Water Resources Finance Authority at 9:47 a.m. in Room 118 of the Stephen F. Austin Bldg., Austin, Texas. The following Board members were present, constituting a quorum:

Jack Hunt, Chairman Bill Meadows, Vice Chairman Wales H. Madden, Jr., Secretary/Treasurer Thomas Weir Labatt III, Member D.V. Guerra, Jr., Member E.G. Rod Pittman, Member

Persons attending were among those present at the Texas Water Development Board meeting of the same date.

The Authority then considered items on the formal agenda in the following order.

1. CONSIDER APPROVAL OF THE Minutes of the JULY 16, 2002 MEETING.

Mr. Madden moved to approve the minutes as submitted; Mr. Guerra seconded the motion; it passed unanimously 6-0.

2. CONSIDER ELECTING OFFICERS TO SERVE UNTIL THE FEBRUARY, 2003 MEETING.

Mr. Madden moved to elect officers as follows: E.G. Rod Pittman as Chairman, Bill Meadows as Vice Chairman, and D.V. Guerra Jr. as Secretary/Treasurer. Mr. Meadows seconded the motion; it passed unanimously 6-0.

3. CONSIDER AUTHORIZING AN EXTENSION OF THE CURRENT UNDERWRITING TEAM’S SERVICES UNTIL AUGUST 31, 2003.

Ms. Nancy Marstiller, Director of Debt Management, recommended extension until August 31, 2003, of the same underwriting team approved at the Texas Water Development Board meeting of the same date.

Mr. Hunt moved to approve the staff recommendation; Mr. Guerra seconded the motion; it passed unanimously 6-0.

4. CONSIDER AUTHORIZING THE TRANSFER OF $8,170,000 AS A FUTURE PAYMENT FROM THE Texas Water Resources Finance Authority TO THE Texas Water Development Board.

Mr. Gerald Slater, Director, Portfolio, Reporting and Systems Management, explained that staff evaluated future prepayment and default exposure in addition to coverage requirements, and determined that sufficient funds will be available after taking those risks into consideration to transfer $8.17 million in response to the Texas Water Development Board’s request for future payments. He recommended approval of the transfer.

Mr. Guerra moved to approve the staff recommendation. Mr. Hunt seconded the motion; it passed unanimously 6-0.

The meeting adjourned at 9:53 a.m.

APPROVED and ordered of record this the 19th day of February 2003.

Texas Water Resources Finance Authority

_______________________________________ E.G. Rod Pittman, Chairman

ATTEST:

___________________________________ D.V. Guerra, Jr., Secretary/Treasurer