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<br /> <br />they had legally restricted by issuance of the bonds. He said the only restricted <br />cash that has ever shown up on this cash flow statement had to do with the <br />legally required bond reserve or the legally required Interest and Sinking Fund. <br />There was nothing in that restricted cash number that applied to Hearne Street <br />or any other obligation that the board had taken because the board had never <br />voted to restrict the cash even though they entered into an agreement to do those <br />things. He advised that he made a little wording change and instead of calling <br />it restricted cash, he called it exactly what that restricted cash is made up of, and <br />that is Debt Reserve and Debt I&S Cash. <br /> <br />Mr. Anderson said that, Director Don Wall had informally requested financial <br />information having to do with the debt capacity of the PEDC in terms of issuing <br />bonded indebtedness, and the financial information reported to the Board was <br />specifically that. Mr. Anderson explained that his previous report was different <br />from the amount that the Board might be able to borrow at the bank because <br />there are very specific types of restrictions in bonded debt that you do not <br />necessarily have when you go to the bank to borrow money. In summation, he <br />said that was his charge and it was an informal one and that was the only <br />information he presented to the board because he was not asked to present any <br />other. <br /> <br />Mr. Anderson advised that another issue that he and Mr. Vest discussed was <br />excess funds kept in the reserve account. Mr. Anderson explained that the debt <br />reserve account was pre-funded in 1998 when the debt was issued and that, over <br />time, an excess of funds has accumulated in addition to the amount required to <br />be reserved, one year's debt payment, due to interest accumulation. It does not <br />amount to that much money, not enough that he has had to be in a rush to move <br />it over to the operating account, but any case, it would not affect the ability of <br />the corporation to issue bonded debt. He explained that how much money you <br />have in the bank is not a factor in issuing bonded debt. Mr. Anderson said what <br />affects the Board's ability to issue bonded debt is cash flow income and, <br />specifically, sales tax income. Mr. Anderson advised that the reserve has <br />$40,000.00 more than it should have and the Interest and Sinking Fund has <br />about $100,000.00 more than it should. The excess built up by leaving the <br /> <br /> <br />