Metro's holding board meetings today
I check Metro's "Meetings and Notices" page frequently (just like the Sports Authority) and it has been empty. Well, today a whole slew of board meetings are listed, with some interesting topics. For example, during the 1 p.m. regular board meeting, look at this eye-opener scheduled to be discussed:
6. Rescind current METRO Policy of "pay as you go" and adopt new Board "Debt Policy"
Wow! That one items tells us so much about Metro's current (and future) condition. But there's more:
8. Authority to negotiate a line of credit with JP Morgan Chase for $59 Million with a one-year duration (to provide liquidity to meet current obligation pending receipt of FY2005 Section 5307 Formula grant already appropriated by Congress).
[snip]
10. Authority to establish a Commercial Paper Program
Now, I'm just a mom trying to raise her kids, but I can Google, and when I Google "commerical paper program" I see references to short-term notes, used to raise funds.
And do you think that line of credit with JP Morgan Chase is to cover for money Metro expects to receive in the future? It sounds like it.
Also, a public hearing on a state performance audit of Metro will be held on June 30, 2005 at 12 noon. That sounds intriguing.
UPDATE: A friend of blogHOUSTON emails the Wikipedia entry for "commercial paper":
Commercial paper is a short-term unsecured debt trading as a security issued by large banks and corporations. It is generally used not to finance major projects but rather is used for purchases of inventory or to manage short term cash flow. It is commonly bought by Money market funds (the issuing amounts are often too high for individual investors), and is generally regarded as a very safe investment. As a relatively low risk option returns are not large.
Because commercial paper maturities don't exceed nine months and proceeds typically are used only for current transactions, the notes are exempt from registration as securities with the United States Securities and Exchange Commission.
UPDATE 2: I am wondering if this is the Section 5307 funding Metro is waiting on (referred to in the agenda above).
Posted by Anne Linehan @ 06/16/05 08:55 AM | Print |
Previous Entry | Home | Next Entry
ADVERTISING
DISCLAIMER
All content © 2004-09, blogHOUSTON and the respective authors.
blogHOUSTON.net is powered by Nucleus.
Site design and Nucleus customization are by Kevin Whited.