The Pearl River Valley Water Supply District (PRVWSD) is a special purpose state agency which operates the Ross Barnett Reservoir adjoining Hinds, Rankin, and Madison counties. This report reviews the district’s compliance with a Hinds County Chancery Court judgment resulting from a lawsuit filed by Hinds County concerning PRVWSD’s accounting practices and use of county tax funds. PEER concludes that the district is in the process of establishing an allocation system to identify and allocate costs of providing services to lessees.
The PRVWSD board and management have not deposited available revenue into the Bond Redemption and Surplus Fund to pay outstanding bonds prior to maturity, as intended by the court order and trust indenture. Therefore, the district is prolonging dependence on its member counties and the City of Jackson for tax support which will expire when all bonds are retired according to schedule in 1999. After retirement of all bonds, the district must operate from self-generated income, primarily fees levied on users of the reservoir and shoreline area residents. PRVWSD disagreed with PEER’s interpretation relative to redemption of bonds prior to maturity.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.