Has anyone had experience with forward supply contracts for revenue funds?
We are receiving a proposal from an agency and have not had experience with
such a contract.

A little background on the contract procedure:

The program involves the use of a forward supply contract for the sale of
treasuries (or other permitted investments) to the trustee.  The District
would receive an up front payment representing the present value of all of
the interest earnings over the life of the deal.  On a monthly basis, the
trustee buys the investment obligations from the forward supply contract
provider.  The trustee holds the investment obligations to their maturity,
which will be prior to the date funds are needed.

Any feedback would be greatly appreciated.  I would like a response by
January 18th.  I will compile the reponses and share with the group. Thanks
again.

Mary Jo Fischer
Manager of Finance/Administration
Calleguas Municipal Water District
[EMAIL PROTECTED]
(805) 579-7116

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