Morgan stands to make a considerable profit from the sale of bonds. If California-American successfully takes over the district, J.P. Morgan Securities has a motive behind its criticism. of too close a relationship, it should be made clear that J.P. This definition appears frequently and is found in the following Acronym Finder categories. In regard to the article that accuses the Santa Margarita Water District and Santa Margarita Co. SMWD stands for Santa Margarita Water District (California). General manager, Santa Margarita Water District The real story, which The Times failed to report, is that if California-American is successful in this takeover, district residents will pay more for their water (according to an independent analysis by Ernst & Young), while losing local control of their district. Rancho Santa Margarita’s property tax rates associated with water and sewer construction costs are lower than they normally would be, but only because Santa Margarita Co., like Chevron in Coto de Caza, has elected to pay the district substantially more than it has to, in order to reduce assessments homeowners must pay. We have only one rate, and that is the rate all our customers pay, including Santa Margarita Co. enjoys a lower rate than others in our district is absurd. But since we were requiring the company to pay so much in one year, we set the interest for the second year’s worth of payments at a level that covered our costs plus 1%.įinally, the statement that Santa Margarita Co. For one of these years, the penalty was exactly what would be paid by homeowners. A change in district policy, again required by our bond underwriters, forced the company to pay two years of assessments in one year. did not receive preferential penalty interest treatment. Homeowners did not pay more as a result of this allocation. This allocation was done across the board on a pro rata basis, which resulted in homeowners avoiding higher assessments. When the district refinanced its bond debt last summer, our bond underwriters required us to allocate interest earned from our construction fund accounts to reduce assessments. No “credits” have been issued and no debt has been “swept” aside. The district showed no favoritism toward Santa Margarita Co. The basic thrust of the article is wholly incorrect. Morgan (Securities Inc.), which stands to make several million dollars in bond underwriting fees if the proposed takeover of the district by California-American Water Co. presented a grossly distorted view of events conjured up by J. (Times staff writer) Chris Woodyard’s April 11 article on Santa Margarita Water District’s association with Santa Margarita Co.
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