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HomeMy WebLinkAbout2019-14-11 FA Regular Meeting Agenda POSTED AGENDA PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, APRIL 11, 2019 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. II. ROLL CALL Reports and documents relating to each of the following items listed on the agenda, including those received following posting/distribution, are on file in the Office of the City Clerk and are available for public inspection during normal business hours, Monday - Friday, 8:00 a.m. - 5:00 p.m., 73510 Fred Waring Drive, Palm Desert, CA 92260, (760) 346-0611. III. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR FOR ALL LEGISLATIVE BODIES CONVENING ON THIS DATE ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE (1) ROLL CALL VOTE, AS INDICATED ON THE FIRST AGENDA OF THE REGULAR MEETING OF THIS DATE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE CITY COUNCIL, SUCCESSOR AGENCY BOARD OF DIRECTORS, FINANCING AUTHORITY, HOUSING AUTHORITY BOARDS, OR AUDIENCE REQUEST SPECIFIC ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER THE SUBSEQUENT SECTION, CONSENT ITEMS HELD OVER, OF THE AGENDA. For clarification, Financing Authority Consent Calendar is combined into the CITY COUNCIL AGENDA, Section XII -CONSENT CALENDAR and considered jointly. It appears here only for record-keeping purposes. A. MINUTES of the Financing Authority Meeting of September 27, 2018 (Item T on City Council Agenda Section XII - Consent Calendar). Rec: Approve as presented. Action: IV. CONSENT ITEMS HELD OVER POSTED AGENDA PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR ADOPTION OF THE PALM DESERT "STATEMENT OF INVESTMENT POLICY, AS AMENDED" (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY). Rec: Waive further reading and adopt the Palm Desert Statement of Investment Policy, As Amended, with: 1) City Council Resolution No. 2019 - 15; 2) Successor Agency Resolution No. SA-RDA 076; 3) Financing Authority Resolution No. FA - 69; 4) Housing Authority Resolution No. HA - 91. Action: B. CONSIDERATION OF UNIVERSITY PARK COMMUNITY FACILITIES DISTRICT (CFD) BOND REFUNDING (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Rec: By Minute Motion, authorize: 1) City Manager and the Finance Officer (Director of Finance of the City of Palm Desert) to begin working with the financing team to prepare the necessary preliminary documentation for the issuance of the Refunding Bonds for University Park 2006A bonds—this will include entering into engagement letters and agreements with the financing team for their services; 2) staff to select an underwriter from the approved Underwriters Pool, based on the criteria established in the Request For Qualifications (RFQ) dated June 4, 2018, and prioritized by the refunding needs of the CFD. Action: VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None 2 POSTED AGENDA PALM DESERT FINANCING AUTHORITY MEETING APRIL 11, 2019 IX. PUBLIC HEARINGS None X. REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER B. AUTHORITY COUNSEL C. PRESIDENT AND MEMBERS OF THE AUTHORITY XI. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Financing Authority was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 4th day of April, 2019. Note: This agenda is subject to amendment up to 72 hours in advance of the meeting. R chelle . Klassen, Cit Clerk 1.‘c) 3 � � :,�__." _ ..,. PRELIMINARY MINUTES D R A F T PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, SEPTEMBER 27, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. President Jonathan convened the meeting at 3:05 p.m. II. ROLL CALL Present: Commissioner Jan C. Harnik Commissioner Kathleen Kelly Commissioner Gina Nestande Vice President Susan Marie Weber President Sabby Jonathan Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager Eddy Moore, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andy Martinez, Admin. Sgt., Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. CONSENT CALENDAR A. MINUTES of the Financing Authority Meeting of June 8, 2017. Upon motion by Kelly, second by Harnik, and 5-0 vote of the Authority Board (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. PRELIMINARY MINUTES D R A F T PALM DESERT FINANCING AUTHORITY MEETING SEPTEMBER 27, 2018 IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR APPROVAL OF RECOMMENDED FIRMS TO BE PLACED ON A PRE-APPROVED LIST OF UNDERWRITERS/PLACING AGENTS FOR POTENTIAL FUTURE DEBT ISSUANCE OR REFUNDINGS (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNClL, SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, AND PALM DESERT HOUSING AUTHORITY). Senior Management Analyst Veronica Tapia stated that after the 2017 refunding, staff realized the underwriter's list was grossly delinquent. In order to update the list, staff requested qualifications from various firms and received six. Each firm was deemed qualified and staff is requesting that they be included in the list. In the event a financing opportunity presents itself, staff will come back and ask a subcommittee to choose a firm most qualified to do the deal. This item went to the Audit, Investment & Finance Committee and they approved it. Councilmember/Director/Commissioner/Member Harnik moved to, by Minute Motion, approve the recommended firms to be included in a pre-approved list to provide underwriting and placement agent services for future debt issuance or refundings. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. PUBLIC HEARINGS None 2 PRELIMINARY MINUTES D R A F T PALM DESERT FINANCING AUTHORITY MEETING SEPTEMBER 27, 2018 X. REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER None B. AUTHORITY COUNSEL None C. PRESIDENT AND MEMBERS OF THE AUTHORITY None XI. ADJOURNMENT With Authority Board concurrence, President Jonathan adjourned the meeting at 8:37 p.m. SABBY JONATHAN, PRESIDENT ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT FINANCING AUTHORITY 3 'BY HOUSG AUTH 6--(3 ON ��-(W)/q VERIFIED SY: „12P Original on rile with City STAFF RE 1ork's affle CITY OF PALM FINANCE DEPA MEETING DATE: PREPARED BY: REQUEST: Recommendation April 11, 2019 CITY COUNCILA�CTION APPROVED VV DENTED RECEIVED OTHER o/�eRer./Vac. 2 /q-/s -12019 0740, Fi-(/ f//1-Q/ ING DATE O`f - /l-Aol6r ,ks7a►imibcoi, kk/l)6.Ai sfeuacye, gt /tee%„ ABSTAINr Alr,'IP VERIFIED BY• Ri9k1/ Original on File with City Clerk's Office Thomas Metz, Deputy City Treasurer ADOPT RESOLUTIONS, APPROVING THE PALM DESERT "STATEMENT OF INVESTMENT POLICY", AS AMENDED: 1) CITY COUNCIL RESOLUTION NO. 2019 - 15 ; 2) SUCCESSOR AGENCY RESOLUTION NO. SA -RDA - 076 ; 3) FINANCING AUTHORITY RESOLUTION NO. FA - 69 ; 4) HOUSING AUTHORITY RESOLUTION NO. HA - 91 . Waive further reading and adopt: 1. The Palm Desert "Statement of Investment Policy", as amended: 1) City Council Resolution No. 2019 - 15 ; 2) Successor Agency Resolution No. SA -RDA - 076 ; 3) Financing Authority Resolution No. FA - 69 ; and 4) Housing Authority Resolution No. HA - 91 Strategic Plan Objective Not applicable. Committee Recommendation aved ON aY /L4 g0l9 VERIFIED BY. Originai on RIP th City aeries Office SA R D.A. 6-0 At its March 26, 2019 meeting, the Audit, Investment & Finance Committee ("Finance Committee") voted unanimously to recommend that the City Council adopt the proposed changes to the Statement of Investment Policy as drafted. Background Analysis California Government Code section 53646(a)(2) authorizes the treasurer of a local agency to submit the agency's investment policy to the governing body for review and adoption. Proposed policy changes may be considered at that time. Staff is recommending a number of changes that include: ➢ Lowering the total portfolio concentration limit for California State and Local Agency debt from 100 percent to 25 percent. BY FiN AUTH 5"0 ON. () 1-XiQ VERIFIED BY: Original on file with City Clerk's Office City Attorney April 11, 2019 — Staff Report Amendments to Statement of Investment Policy Page 2 of 2 • Lowering the total portfolio concentration limit for negotiable certificates of deposit from 30 percent to 15 percent. ➢ Lowering the total portfolio concentration limit for medium -term notes from 30 percent to 25 percent. ➢ Eliminating banker's acceptance as an authorized investment. ➢ Eliminating the requirement that no more than 45 percent of the portfolio may be invested in commercial paper and medium -term notes. • Restoring the CA Govt Code language on not holding more than 10 percent of any issuer's commercial paper. ➢ Placing a 10 percent concentration limit on the medium -term notes of any issuer. • Updating the maximum balance per Local Agency Investment Fund ("LAIF") account to $65 million. ➢ Requiring the City Council to adopt bylaws for the Finance Committee. These changes are described in more detail in Exhibit "A". Deletions are represented by striker; additions are represented by grey shaving. These revisions will align the City's investment policy with California Government Code provisions, recent LAIF policy changes, California Debt and Investment Advisory Commission guidelines, and Government Finance Officers Association Best Practices. Fiscal Analysis The recommended concentration limit changes should enhance the City's ability to generate investment income while ensuring that it is done in a prudent manner. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Hargreaves (Jat Moore an Moore lector of Finance -Iiirector of Finance Lauri Aylaian City Manager ATTACHMENTS: Resolution No. 2019 - 15 Resolution No. SA -RDA - 076 Resolution No. FA - 69 Resolution No. HA - 91 Revised 2019 Statement of Investment Policy Exhibit "A" -- Proposed Changes to 2019 Investment Policy RESOLUTION NO. 2019 - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, APPROVING THE PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED WHEREAS, pursuant to California Government Code Section 53646, the Treasurer of the City of Palm Desert (hereafter referred to as the "city treasurer") has proposed a Statement of Investment Policy for consideration by the City Council of the City of Palm Desert, California (hereafter referred to as the "City Council"), which is attached hereto, and incorporated herein by reference; and WHEREAS, pursuant to Palm Desert Municipal Code Section 3.08.020, the City Council has delegated the authority to invest all public funds that the City holds, to the city treasurer. NOW, THEREFORE BE IT RESOLVED, by the City Council, as follows: Section 1. The City of Palm Desert Statement of Investment Policy is hereby approved and adopted. Section 2. The authority to invest and reinvest all public funds that the City of Palm Desert holds, and to sell or exchange the securities so purchased, in compliance with the terms of the approved Statement of Investment Policy, is hereby delegated to the city treasurer. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this 11th day of April, 2019, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP RESOLUTION NO. FA-69 A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY APPROVING THE PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED WHEREAS, pursuant to California Government Code Section 53646, the treasurer has proposed a Statement of Investment Policy for consideration by the Palm Desert Financing Authority (hereafter referred to as the "Financing Authority"), which is attached hereto, and incorporated herein by reference; and WHEREAS, pursuant to Palm Desert Municipal Code Section 3.08.020, the Agency Board has delegated the authority to invest all public funds that the Agency holds, to the treasurer. NOW, THEREFORE BE IT RESOLVED, by the Financing Authority, as follows: Section 1. The Palm Desert Statement of Investment Policy is hereby approved and adopted. Section 2. The authority to invest and reinvest all public funds that the Financing Authority holds, and to sell or exchange the securities so purchased, in compliance with the terms of the approved Statement of Investment Policy, is hereby delegated to the treasurer. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert Financing Authority, held on this 11th day of April, 2019, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, PRESIDENT ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT FINANCING AUTHORITY APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP RESOLUTION NO. HA- 91 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY APPROVING THE PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED WHEREAS, pursuant to California Government Code Section 53646, the treasurer has proposed a Statement of Investment Policy for consideration by the Palm Desert Housing Authority (hereafter referred to as the "Housing Authority'), which is attached hereto, and incorporated herein by reference; and WHEREAS, pursuant to Palm Desert Municipal Code Section 3.08.020, the Agency Board has delegated the authority to invest all public funds that the Agency holds, to the treasurer. NOW, THEREFORE BE IT RESOLVED, by the Housing Agency, as follows: Section 1. The Palm Desert Statement of Investment Policy is hereby approved and adopted. Section 2. The authority to invest and reinvest all public funds that the Housing Agency holds, and to sell or exchange the securities so purchased, in compliance with the terms of the approved Statement of Investment Policy, is hereby delegated to the treasurer. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert Housing Authority, held on this 11th day of April, 2019, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT HOUSING AUTHORITY APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP RESOLUTION NO. SA -RDA 076 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE PALM DESERT STATEMENT OF INVESTMENT POLICY, AS AMENDED WHEREAS, pursuant to California Government Code Section 53646, the treasurer has proposed a Statement of Investment Policy for consideration by the Successor Agency to the Palm Desert Redevelopment Agency (hereafter referred to as the "Successor Agency"), which is attached hereto, and incorporated herein by reference; and WHEREAS, pursuant to Palm Desert Municipal Code Section 3.08.020, the Agency Board has delegated the authority to invest all public funds that the Agency holds, to the treasurer. NOW, THEREFORE BE IT RESOLVED, by the Successor Agency, as follows: Section 1. The Palm Desert Statement of Investment Policy is hereby approved and adopted. Section 2. The authority to invest and reinvest all public funds that the Successor Agency holds, and to sell or exchange the securities so purchased, in compliance with the terms of the approved Statement of Investment Policy, is hereby delegated to the treasurer. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Successor Agency to the Palm Desert Redevelopment Agency, held on this 11th day of April, 2019, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP CITY OF PALM DESERT FISCAL CALENDAR YEAR 24)1-8 2019 PREPARED BY THE CITY TREASURER'S OFFICE Thomas J. Metz, J.D., M.B.A. Deputy City Treasurer REVIEWED AND APPROVED BY Janet M. Moore City Treasurer Administrative Policy No. FIN002 (Revision No. 20 21) Adopted by the City Council on June 8, 2^" Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 TABLE OF CONTENTS OVERVIEW PAGE 1.0 Policy 1 2.0 Scope 1 3.0 Prudence 1 4.0 Objectives 2 INVESTMENT AUTHORITY 5.0 Delegation of Authority 3 6.0 Investment Procedures 4 7.0 Ethics and Conflicts of Interest 4 INVESTMENTS 8.0 Authorized Financial Dealers and Institutions 4 9.0 Authorized and Suitable Investments 7 10.0 Prohibited Investments 12 11.0 Investment Pools/Mutual Funds 12 PORTFOLIO MANAGEMENT 12.0 Collateralization 13 13.0 Safekeeping and Custody 13 14.0 Diversification 14 15.0 Maximum Maturities 14 16.0 Basic Investment Strategy 14 17.0 Portfolio Rebalancing 14 18.0 Credit Downgrading 15 19.0 Bond Proceeds 15 20.0 Internal Controls 16 PERFORMANCE MEASUREMENT 21.0 Performance Standards 16 22.0 Portfolio Benchmark 16 23.0 Reporting 17 LEGAL REQUIREMENTS 24.0 Investment Policy Adoption 27 ' A: List of Authorized Financial Institutions 18 B: Gk�^ctitry 10 No. 2: "Statement of Investment Policy" 1.0 Policy Palm Desert Treasury Policies and Procedures Revision No. 20 Adopted: 6/8/17 It is the policy of the City of Palm Desert, the Successor Agency to the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to: (1) comply with applicable law governing the investment of public monies under the City Treasurer's control; (2) protect the principal monies entrusted to the City; and (3) maximize profit within the parameters of prudent ricc< management go ye a mar 2.0 Scope This —investment —policy ohdll ., Desert as accounted for in the: em rehenoive Annucl Financial Report, including, but not limited to, the following funds: 1. Genoral Fwnd- 2. Special Revenue Funds. 3. Debt Service Funds. /1. Capital Project Fund. E. Enterprise Funds. 6. Intorno' 1:ervicc Funds. 7. Trust and Agency Funds. ornia Public Employees Retirement Sy tem or funds of the Deferred Compensation Plan 1 funds °c .nag 3.0 Prudence ;he Trees s Office Pursuant to California Government Code Section 53600.3, the City Treasurer gi Officers") ` entffcers, as trustees of public monies, shall adhere to the "Prudent Investor Standard" when managing the City's investment portfolios. They shall invest "...with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." Investment officers who follow the provisions of this policy and who exercise due diligence shall be relieved of personal responsibility for a security's credit risk or Page 1 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 market price risk; provided that they report substantial deviations from expectations to the City Manager and to the Audit, Investment & Finance Committee ("Finance Committee") in a timely manner, and that they take appropriate action to control adverse developments. "Substantial deviations" shall be defined as either a decline of 10 percent or more in the market value of a security due to issuer default or a credit risk downgrade, or the sale of a security prior to maturity at 10 percent or more below its acquisition cost. 4.0 Objectives The City's investment objectives, in order of priority, shall be: 4.0.1 Safety. Safety of principal shall be the foremost objective. Investments shall be made with the aim of avoiding capital losses due to issuer default; broker default; or market value erosion. Principal shall be preserved by mitigating: Credit Risk, the risk of loss due to the failure of the issuer of the security, shall be mitigated by investing in only the highest quality securities; by diversifying investments; and by pre -qualifying securities brokers and public depositories; and Market Risk, the risk of loss due to a decline in bond prices because of rising market interest rates, shall be mitigated by structuring the portfolios so that issues mature concurrently with the City's anticipated cash requirements, thereby eliminating the need to sell securities prematurely on the open market. It is recognized, however, that in a diversified portfolio, occasional measured losses are inevitable, and must be considered within the context of overall investment return. 4.0.2 Liquidity. An adequate percentage of the portfolios shall be maintained in liquid, short-term securities that can be converted to cash, if necessary, to meet disbursement requirements. Since all cash requirements cannot be anticipated, the portfolios should consist largely of relatively low -duration securities with active secondary markets. The City chall cock to minimize liquidity risk by dividing ito investment portfolio into two separate portfolios: the Liquidity Portfolio and the Income Portfolio. The Liquidity Portfolio shall consist of short term investments that mature within one yoar. Ito purpose shall be to ensure that there io oufficient liquidity to fund 12 months of City expenditures. The Income Portfolio shall consist of long-term investments that mure Page 2 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 in one to five years. Ito purpose o i ll be -to manimize profit within the parameters of prudent risk management. nto ohel! be in short term moots including, but net limited to, commercial paper, repurchase agreements, negotiable certificates of dep ait, the State of California Local Agency Investment Fund /" "1 and California Innal government investment noels rurtcr� , crrrrrTcrn�rrvc�mTcrrc�v�vv�. The Liquidity Portfolio be subdivided into primary and secondary sub-pertfolioo. Tho primary c r: portfolio shall contain the equivalent of three months' of City expenditures which shall be invested either in LAIF cr in local agency investment pool. All assets shall mature in 90 days or l000. The secondary sub -portfolio ohall ^ nine months' of City expenditures whioh may be investor in thort term assets that are laddered in equal amounts, on a monthly b oic, &erting four months out. All asscto ohsll have 91-to-360 day mOvrities, Since not all possible cash demands can be anticipated, an amount equal to the City's annual expenditures shall be invested in securities that mature in less than one year. 4.0.3 Yield. Yield shall be considered only after the basic requirements of safety and liquidity have been met. Whenever possible and in a manner consistent with the objectives of safety and liquidity, a yield higher than the market rate of return shall be sought. 5.0 Delegation of Authority California Government Code Sections 53607 and 53608 authorize the legislative body of a local agency to invest, deposit, and provide for the safekeeping of the local agency's funds or to delegate those responsibilities to the treasurer of the local agency. City of Palm Desert Municipal Code Section 3.08.010 delegates the authority to invest, deposit, and provide for the safekeeping of City public monies to the City Treasurer. City of Palm Desert Municipal Code Section 2.16.010 authorizes the City Director of Finance to serve ex officio as City Treasurer. The City Treasurer shall be responsible for all investment transactions that are executed on behalf of the City. The City Treasurer and the Deputy City Treasurer their designee shall have exclusive authority to buy and sell securities on behalf of the City. The Deputy City Treasurer may execute investment Investment transactions may be executed, on behalf of the City only if the City Treasurer has previously authorized the transactions them. If the City Treasurer is unavailable, then the Page 3 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Assistant Finance Director must authorize the investment transactions them prior to execution. 6.0 Investment Procedures The City Treasurer shall establish written procedures for the operation of the City's investment program that are consistent with the provisions of this policy. The procedures shall include reference to: safekeeping, PSA repurchase agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and under the procedures that the City Treasurer establishes. 7.0 Ethics and Conflicts of Interest Investment officers shall not conduct any personal business activity that could conflict with the proper execution of the City's investment program or impair their ability to make impartial investment decisions. They shall disclose to the City Council any material financial interest in financial institutions that conduct business within the City's jurisdiction. They shall also disclose any personal investment positions that could be related to the performance of the City's investment portfolios. Investment officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of securities purchases and sales, and shall avoid transactions that might impair public confidence. Investment officers and their immediate relatives shall not accept or solicit any gifts, gratuities, honorariums, or favors from persons or entities who provide or who are seeking to provide financial services to the City. 8.0 Authorized Financial Dealers and Institutions The City Treasurcv thJll maintain an authorized--la-st (- -Pago 18) of all securities brokoro that tho Finance Committee and the City Council have authorized to transact securitioo buoinesc with the City. This list shall be After review by the Finance Committee, the City Council shall review and approve the :securities brokers that are authorized to do business with the City. Authorized securities brokers are listed in Appendix A of this policy Only primary government securities dealers ("primary dealers") that regularly report to the Federal Reserve Bank of New York shall be eligible for inclusion on the City's authorized list. Page 4 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 The only exception to the foregoing shall be that the Finance Committce and the City Council may, at thei-r its discretion, accept, review, and approve Requests for Information ("RFI") from secondary brokers that: (1) have been in existence for more than five years; (2) have a net capital position in excess of $100 million; (3) are licensed as brokers by the State of California; and (4) are headquartered or have a branch office in California. The total number of primary dealers and secondary brokers on the authorized list shall not exceed four at any time. The City shall accept and review new broker applications only when there is an immediate need to fill a vacancy on the authorized list. In all cases, the City shall only accept RFIs from and transact business with the institutional securities sales departments of primary dealers and secondary brokers. The City shall not transact business with an authorized securities firm until all of the documentation that both parties require has been executed and delivered. All brokers who wish to apply for inclusion on the authorized list must, at a minimum, provide the City Treasurer with a copy of the following documents, unless otherwise noted: 8.0.1 Completed "Primary Dealer Request for Information" (signed original only). 8.0.2 The firm's most recent Annual Report and Securities and Exchange Commission ("SEC") Form 10-K or 20-F. 8.0.2 The firm's National Association of Securities Dealers ("NASD") Form BD -- Uniform Application for Broker -Dealer Reaistration or, in the case of an investment department within a commercial bank, SEC Form MSD. 8.0.3 The firm's current NASD Form BD Status Report. 8.0.4 NASD Form U-4 -- Uniform Application for Securities Industry Registration or Transfer for each employee would who might be trading with the City. 8.0.5 Current NASD Form U-4 Status Report on each employee who might be trading with the City. 8.0.6 A resume from each of the firm's employees who might be trading with the City. 8.0.7 The firm's delivery and wiring instructions. 8.0.8 An executed corporate resolution that identifies employees who are authorized to trade, and who might be trading with the City. Page 5 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 8.0.9 The firm's current investment policy. In addition to the above documents, secondary brokers must also submit: 8.0.10 The firm's most recent SEC Form X-17 A-5 or, in the case of an investment department within a commercial bank, SEC Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices -- FFIEC 031. Investment officers shall investigate all broker applicants in order to determine if they: (1) are adequately capitalized; (2) are subject to pending legal action (either the firm or the trader); (3) make markets in securities that are appropriate for the City's needs; (4) are licensed as a broker by the State of California Department of Corporations; and (5) are a member of the National Association of Securities Dealers. Broker applicants shall be required to provide state or local government references from within California. Any broker that has made a political contribution within any consecutive four-year period following January 1, 1996 in an amount that exceeds the limits in Municipal Securities Rulemaking Board ("MSRB") Rule G-37, to any member of or candidate for the City Council, the RDA Successor Agency — Palm Desert Board, the Housing Authority Commission, or the Finance Committee shall be ineligible to transact business with the City. The Finance Committee and After rev stance thee, the City Council shall review consider the submitted documents, along with the Investment officers's recommendations, and decide if any new brokers should be added to the authorized list. If, in the City's opinion, a broker's RFI is missing, incomplete, late (submitted after the specified deadline), or contains false or misleading information, or if the broker has not submitted all of the documents that the City requires, then the City shall automatically reject that broker's RFI, and the broker shall not be eligible to submit another RFI to the City for three years. The City Treasurer shall provide all authorized brokers with a copy of the City's investment policy and any amendments as they occur. The City Treasurer shall maintain Qn +. z-❑st (see Page 18) of After reviewy,:the Finance Committee, the City ouncil shelf review and approve all commercial banks, savings associations, and federal associations (as defined by California Financial Code Section 5102), and trust companies that the Finance Committee and the City Council have are authorized as public depositories of City monies, in the form of checking, savings, and money market accounts, and certificates of deposit. This liot chall be provided to all rncmbcrs of the City Council and tho Finance Committee. Authorized financial institutions r listed In Apperidix.A df this policy. Page 6 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 The City shall only deposit public monies in financial institutions that have: 8.0.11 At least $5 billion in total assets. 8.0.12 A core capital -to -total assets ratio of at least five percent. 8.0.13 Favorable statistical ratings from a nationally recognized rating service, as determined by the City Treasurer. 8.0.14 A federal or a state charter. 8.0.15 A branch office within Riverside County. 8.0.16 A "satisfactory" overall rating in their most recent evaluation by the appropriate federal financial supervisory agency, in terms of meeting the credit needs of California communities, pursuant to federal law. Under no circumstances shall the City's deposits in a financial institution exceed the total shareholders' equity of that institution. 9.0 Authorized Investments The City Treasuror ehall 'e C Office to invest in the following financial instruments pursuant to California Government Code, section 53600, et seq., unclerthe terms and conditions stated belc Ce escro No. Type of Investment s authorized the C of Portfolio Authorized Other Restrictions 1. United States Treasury bills, 100% Maximum maturity: 5 Years notes, bonds, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. Page 7 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 No. Type of Investment 2. Federal Agency or United States government -sponsored enterprise ("GSE") obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by Federal Agencies or by GSE. 3. California State and Local Agency debt obligations that are general obligation bonds or revenue bonds that are issued by the state or local agency or by a department, board, agency, or authority of the state or a local agency. 47 Banker's Acceptances("BA") issued by commercial banks. 5. Commercial Paper ("CP") (Non -Pooled Fund) issued by general corporations organized and operating in the United States with assets exceeding $500 million. of Portfolio Authorized Other Restrictions 100% Maximum maturity: 5 years 100% No more than 30% of the portfolio may be invested in any one issuer (excluding the proceeds of tax-exempt bonds). Maximum maturity: 5 Years Rated "A" or higher by S&P or by Moody's. /10%, Rated "A 1" or higher by S&P or"P 1" by Moody's. Wamimum maturity: 180 days No more than 30% of the portfolio may be invested in any one BA issuer. 25% Maximum maturity: 270 days Rated "A-1" by S&P or"P-1" by Moody's. No more than 10% of the outstanding CP of any one issuer may be purchased. No more than 10% of the portfolio may be invested in the commercial paper and medium -term notes of anv Page 8 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 No. Type of Investment 6. Negotiable Certificates of Deposit ("NCD") issued by a nationally- or state -chartered bank, a savings association, a federal association, or by a state -licensed branch of a foreign bank. 7. Time Certificates of Deposit ("TCD") issued by qualified public depositories. of Portfolio Authorized 30% 15°fa Other Restrictions one issuer. No moro than 1E% of the portfolio may be invested in commercial p cr and medium -term notes Asset -backed commercial paper is ineligible for purchase. Maximum maturity: 5 years Long-term debt rated "AA-" higher by S&P or by Moody's. 15% Maximum maturity: 1 year TCDs exceeding the FDIC limit must be collateralized. TCDs must be centralized at one location for each bank or S&L. If TCD is uncollateralized, then no more than 90 percent of the FDIC limit may be invested per TCD. Issuing public depository must meet qualifying criteria on Pages 6 and 7 of this SOIP. Page 9 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 No. Type of Investment 8. Repurchase Agreement ("RP") sold by authorized brokers. 9. Medium -Term Notes issued by Corporations organized and operating in the United States, or by depository institutions operating in the United States and licensed by the United States or by any state. % of Portfolio Authorized Other Restrictions 20% Maximum maturity: 30 days 30% 25% Collateral must be United States Treasury, Federal, Agency, or GSE obligations. Zero coupon and stripped coupon instruments are not acceptable as collateral. Collateral must be valued at 102% of cost and adjusted weekly. City must have first lien and security interest in all collateral. City's custodian must hold collateral. An authorized broker must file a Public Securities Association (PSA) Master Repurchase Agreement with the City treasurer, and the City Attorney must review the agreement, prior to the transaction of RP business with that broker. Maturity maturity: 5 years Rated "A" or higher by S&P or by Moody's. No more than 10% of the portfolio may be invested in the commersisI pwor and medium -term notes of any Page 10 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 No. Type of Investment 10. Money Market Mutual Funds ("MMF") that are registered with the SEC under the Investment Act of 1940. 11. State of California Local Agency Investment Fund ("LAIF") that is managed by the State Treasurer's Office. % of Portfolio Authorized 20% (excluding bond proceeds) Up to xirrium rrently $50,000,000 per account) (except for bond trustee accounts which have no deposit limit) Other Restrictions one issuer. N-e-rnefo than 1E% of the commeroial papor and medium term notes. Either rated "AAA" by S&P, "Aaa" by Moody's, or "AAA-V- 1 +" by Fitch (2 of 3), or retains an investment advisor registered or exempt from registration with SEC, with at least 5 years of experience managing a MMF with $500 million or more in assets. MMF must have dollar - weighted average maturity of 90 days or less. MMF must buy securities that mature in 13 months or less. No commission may be charged. City Council and Redevelopment Agency approved participation in LAIF on 12/12/81 in Resolution No. 81-161. Page 11 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 No. Type of Investment 12. Structured Notes in the form of callable securities or "STRIPS" issued by the United States Treasury or by Federal Agencies or government - sponsored enterprises ("GSE") 13. Local Government Investment Pools "LGIP") a Authoriit ©►tS 10.0 Prohibited Investments of Portfolio Authorized Other Restrictions 20% Maximum maturity: 5 years 75% (excluding bond proceeds) Must meet above criteria for MMFs (except for the Riverside County Trccc& rc\"'a Pooled Investmen+Fund). As require by ( r the Cali -torn Code. Investment officers shall not invest public monies in financial instruments that are not authorized under this policy. Prohibited investments shall include, but shall not be limited to, equity securities, bond mutual funds, reverse repurchase agreements, and derivative contracts (forwards, futures, and options). The purchase of derivative securities shall be prohibited, unless specifically authorized in this policy. Investment officers shall not engage in securities lending, short selling, or other hedging strategies. LAIF and MMFs shall be exempt from the prohibitions on derivative contracts, derivative securities, reverse repurchase agreements, securities lending, short selling, and other hedging strategies. 11.0 Investment Pools/Mutual Funds A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions: 11.0.1 A description of eligible investment securities, and a written statement of investment policy and objectives. Page 12 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 11.0.2 A description of interest calculations and how it is distributed, and how gains and losses are treated. 11.0.3 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. 11.0.4 11.0.5 11.0.6 A description of who may invest in the program, how often, what size deposit and withdrawal are allowed. A schedule for receiving statements and portfolio listings. A verification on whether or not reserves or retain earnings are utilized by the pool/fund. 11.0.7 A fee schedule, and when and how it is assessed. 11.0.8 The eligibility of the pool/fund for bond proceeds, and whether it will accept such proceeds. 12.0 Collateralization Investment officers shall ensure that all demand deposits and all non-negotiable certificates of deposit that exceed the Federal Deposit Insurance Corporation ("FDIC") limit shall be fully collateralized with securities authorized under state law and under this SOIP. Collateral may be waived for the amount of the FDIC limit. Any amount on deposit that exceeds the FDIC limit plus accrued interest, however, shall be collateralized with United States Treasury or federal agency securities at a constant margin ratio of 110 percent or with mortgage -backed collateral at a constant margin ratio of 150 percent. Collateralized investments and demand deposits may require substitution of collateral. The City Treasurer must approve all requests from financial institutions for substitution of collateral that involve interchanging classes of securities. An independent third party with which the City has a current custodial agreement shall always hold the collateral. The independent third party shall provide the City Treasurer with a safekeeping receipt that he shall retain. 13.0 Safekeeping and Custody Investment officers shall conduct all security transactions on a delivery -versus - payment ("DVP") or on a receipt -versus -payment ("RVP") basis. A third -party bank trust department ("Custodian") that acts as an agent for the City, under the terms of a custody agreement executed between both parties, shall hold the Page 13 Palm Desert Treasury Policies and Procedures No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Revision No. 20 securities. The custodial bank shall be one of the 20 largest commercial banks in the world, as measured by total assets. The City's Custodian shQIl represented on- the -authorized- list -(see--Pago 1-3} I Iisted ri l en t :A of this policy. The only exception to the foregoing shall be securities purchases made with: 13.0.1 Local government investment pools. 13.0.2 Money market mutual funds. 13.0.3 Federal Reserve Banks ("Treasury Direct Program") since the purchased securities are not deliverable. No securities broker or investment advisor shall have access to City monies, accounts, or investments. Any transfer of monies to or through a securities broker must have the City Treasurer's prior written approval. If the City Treasurer is unavailable, then the Assistant Finance Director must authorize the transfer, in writing. The City shall require Broker Trade Confirmations for all trades. Investment Officers shall review these confirmations immediately upon receipt, for conformity with the terms of the City's Trade Sheets. 14.0 Diversification Investment officers shall diversify the City's investment portfolios by security type and by issuer, except for bond reserve monies; bond escrow monies; and any other monies that the City Council or the Finance Committee designates. 15.0 Maximum Maturities Investment officers shall not invest in securities with maturities exceeding five years. The Aft tew by t lie Finance Committee, and the City Council; however, may approve longer maturities for the investment of bond reserve, bond escrow, and other funds if the maturities of such investments are expected to coincide with the expected use of the funds. 16.0 Basic Investment Strategy The City portfolio shall be invested using a passive strategy of "buying and holding" fixed -income securities. Whenever possible, a bond ladder shall be constructed with laddered maturities that support anticipated cash flow dates. Securities may be sold prior to maturity only to: 1) address an actual or potential deterioration in credit quality; 2) rebalance the portfolio; or 3) meet unanticipated financial obligations. Page 14 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Active strategies, such as market timing, sector rotation, or indexing to a benchmark shall be prohibited. 17.0 Portfolio Rebalancing If portfolio percentage constraints are violated due to a temporary imbalance in the portfolio, then investment officers shall hold the affected securities to maturity in order to avoid capital losses. If no capital losses would be realized upon sale, however, then Investment officers shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City investment portfolio; a small, temporary imbalance will not significantly impair that strategy. 18.0 Credit Downgrading This policy sets forth minimum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits. If a security is downgraded below the minimum credit risk criteria specified in this policy, then investment officers shall evaluate the downgrade on a case -by -case basis in order to determine the security should be held or sold. The City Treasurer shall inform the.Cffy [n a`d the Finance Committee at its next monthly meeting of the credit downgrade and of the investment officers's decision to hold or sell the downgraded security. Investment officers shall review the credit standing of all securities in the City's investment portfolios annually, at a minimum. 19.0 Bond Proceeds The City Treasurer shall segregate the gross proceeds of tax-exempt bonds from the City general pool and shall keep them in a separate pool. They shall be invested pursuant to the instructions in the respective bond indentures of trust. If i-n-vestrilvnto rhall be made only with tho Finance Committee's prior approval. All securities shall be held in third -party safekeeping with the bond trustee ("Trustee") and all DVP and RVP rules shall apply. The City's Trustee shall be Page 15 Palm Desert Treasury Policies and Procedures No. 2: "Statement of Investment Policy" Adopted: 6/8/17 rep wentl. czr en che-authorizeditst-(see Page ' 8) policy. Revision No. 20 Investment Offic rL chmII ti.�c competitive offerings, whenever practical, for all investmont transactionc that in` oleo ti--t� ri os. pp7recceedsssof tax-exV m0 bonds. The City shall obtain a mica -imam of thgee-competit offers. Any exception-s to ohall be reported to the Finance Committee at its ncxt monthly meeting. The City is required under the "U.S. Tax Reform Act of 1986" to perform annual arbitrage calculations and to rebate excess earnings to the United States Treasury from the investment of the gross proceeds of tax-exempt bonds that were sold after the effective date of that law. The City Treasurer may contract with qualified outside financial consultants to provide the necessary technical expertise that is required to comply with this law. 20.0 Internal Controls The City Treasurer shall ensure that all investment transactions comply with the City's policy, and shall establish internal controls that are designed to prevent losses due to fraud, negligence, and third -party misrepresentation. Internal controls deemed most important shall include: avoidance of collusion; separation of duties and administrative controls; separating transaction authority from accounting and record keeping; custodial safekeeping; clear delegation of authority; management approval and review of investment transactions; specific limitations regarding securities losses and remedial action; written confirmation of telephone transactions; documentation of investment transactions and strategies; and monitoring of results. The City Treasurer shall establish a process of independent review by an external audit firm of the City's investment program every three years. The external auditor shall review the program's management in terms of compliance with the internal controls that are specified in the City's Treasury Policies and Procedures Manual. A Finance Committee consisting of City officials and community representatives shall be responsible for reviewing the City investment reports, transactions, policies and procedures, and strategies on at least a monthly quarterly basis er less frequently if tho Finance Committee ` eterminc th0 Iocs-frequent schedule wry, ld iet diminish ito effectiveness. The Mayor, the Mayor Pro ort Redevelopment Agency the City Attorney the City Treasur�o�a Palm D,�=�-------- -�- - ., ordinance ohnll oit on this committee. The City Council shall establish bylawusfor the Finance orr�fxr e,; tte Page 16 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 21.0 Performance Standards The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs. 22.0 Portfolio Benchmark The City shall adopt the average monthly effective yield of the LAIF Pooled Money Investment Account as a performance benchmark for the City investment portfolio. 23.0 Reporting The City Treasurer shall provide the City Council with an investment report within 30 days after Finance Committee review of the report. Pursuant to Governmental Accounting Standards Board ("GASB") Statement Number 40, as amended March 2003, the monthly investment report shall: 23.0.1 Organized individual securities by investment type (e.g., U.S. Treasuries, corporate bonds, commercial paper, etc.). Dissimilar investments (e.g., U.S. Treasury bills and Treasury strips) should not be aggregated. 23.0.2 List credit risk ratings for each security, mutual fund, or investment pool from at least two nationally recognized statistical rating organizations ("NRSRO"). If the security, mutual fund, or investment pool has not rating, then it shall be shown as "unrated". 23.0.3 Disclose the amount of individual securities and corresponding issuers if they exceed five percent of net plan assets, except for securities guaranteed by the U.S. Government, money market mutual funds, and external investment pools. 23.0.4 Use the specific identification method to reflect interest -rate risk by investment type and amount. This report shall include a complete portfolio inventory with details on issue, par value, book value, coupon/rate, original settlement date of purchase, final maturity date, CUSIP number, average weighted yield, average days to maturity, and market value (including source of market valuation). The report will include a statement on compliance or noncompliance with the City's SOIP and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months. Page 17 Palm Desert Treasury Policies and Procedures No. 2: "Statement of Investment Policy" Adopted: 6/8/17 24.0 Investment Policy Adoption Revision No. 20 The City Treasurer shall submit a Statement of Investment Policy w to the Finance Committee; for review, and then to the City Council, the Successor Agency to the Palm Desert Redevelopment Agency Board, the Housing Authority Board, the Financing Authority Commission, and the Recreational Facilities Corporation Board of Directors annually for their review and adoption. Page 18 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Appendix A: List of Authorized Financial Institutions The City Treasurer's Office is authorized to transact investment and depository business with the following financial institutions. Investment and depository transactions with firms other than those appearing on this list are prohibited. UNITED STATES GOVERNMENT 1. Federal Reserve Bank PRIMARY DEALERS 1. J.P. Morgan Securities LLC 2. Wells Fargo Securities LLC SECONDARY BROKERS 1. Piper Jaffray & Company 2. Stifel, Nicolaus & Company PUBLIC DEPOSITORIES 1. Citibank, N.A. 2. JP Morgan Chase & Co. 3. Rabobank, N.A. 4. MUFG Union Bank, N.A. 5. Wells Fargo Bank, N.A. CUSTODIAN 1. MUFG Union Bank Global Custody Services TRUSTEE 1. U.S. Bank Global Corporate Trust Services Page 19 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Appendix R• Glossary T�7�J AGENCIES. Federal agency and instrumentality securities. ASKED. The price at which securities are offered. BANKERS' ACCEPTANCE ("BA"). A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting inotitutio - . rantec paymcnt of the bill. BID. The price offered by a buyer of securities (when one sells securities, one asks for a bid). See "Offer". BROKER. A broker brings buyers and sellers together so that he can carn a commission. CERTIFICATE OF DEPOSIT (" CC"). A time deposit with a occcific maturity, as evidenced by a certificate. Large denomination CP° arc typically negotiable. COLLATERAL. Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COPTE-HE IVEANNUA1 FINANCIAL REPORT ("CAFR"\ T offficiel annual report for the City of Palm Desort. It includes five combined statements for each individual fund and account group, that arc prepared in conformity with GAAP. It also includes supporting scheduled that are nececary to demonerc compliance with finance related legal and contratlaal previsions, extensive introductory material, and a detailed ctOiotical section. COUPON. (a) The ann6\al rOc of interim that 2. L9Re0 iooucr promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond, that evidences interest due an a payment date. DEALER. A dealer, as opposed to a broker, as .: a:. a principal in all trs:ncactions, buying and selling for his own account. DEBENTURE. A bond secured only by the general credit of the issuer. DDELlVER-Y--vERSUS PAYMEN` There are two methodsofaelivery of sec ies (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. Page 20 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 DERIVATIVE-S.-(21) Financial inotrumento that are linked to er derived from the � e leveraging factor; or (2) financial contrav c "teed upon a notional amount whose value is derived from an underlying index or security (o.g., interest rates, foreign exchange maturity, when q oted at lowor than face value. A security that sells below original e# r�-p-ice shortly after sale is also is considered to be at a discount DISCOUNT SECURITIES. Non interest bearing money markot inotrumonto that are issued-a-discou -and that are redeemed at maturity for full face value (e.g., U.E. Treasury Bills). DIVERSIFICATION. Dividing investment funds among a variety of securitioc that offer independent returns. FEDERAL CREDIT AGENCIES. Agencies of the Federal Government that were eotabliohod to aipply credit to various classes of inotitutions and individuals (o.g., E&Ls, small busin000 firm, students farmers farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION ("FDIC"). A federal agency that insures bank deposits. FEDERAL FUNDS RATE. The rate of interest at which Fcd funds arc traded. Thio rate is ouirrentli pegged by the Federal Reserve through open market operations FEDERAL HOME 1 OAN BANKS ("FH`D"). Government sponsored wholesale banks {currently 12 regional banks) which lend funds and provide correspondont banking services to member commercial banks, thrift inotitNtions, credit unions, and insurance companies. Tho miacron of tho FH Bo io to 'iguef„ the hey sing related assets of its members, who must purchase stook in their Dierict Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA"\ Fn AA r like MA GN, , was chartered under the Federal NLOional Mortgage A-sociation Act in 1938. FNMA is a-fede er-the-auspices of Dc; crtm Urban D'D). It is the largcat c..ngle provider of residential mortgage funds in the United States. Fannie Mach the corporation is called, io a private stockholder owned corporation. The corporation's purchases include a variety of aillic tle mortgages and second Inane, in tc on to fixeec rate -mortgages. FN-AA's securities are also highly liquid and arc widely accepted. FNMA oc' mes and guarantee^ the all security holders will receive timely payment of principal and interest. FEDERALPEN MARKET COMMITTEE ("FOMC" ). The FOMC consists of seven members of T ral-R o 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent Page 21 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 member, while the other Presidents serve on a rotating baoio. The Committee government securities in the opon market, ao s mcans of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM. The control bank of the United States created by 12 regional ban-ksanel-abo5-7 co ere-ial b nks that are--memberssystem GovERNmGAIT NATIONAL MORTGAGE ASSOCIATIONor "Ginnie Mae"). Securities that influence the volume of bank credit that io guaranteed by GNMA and issued by mortgage bankers, commeroial banks, savings and loan associations, and other inotitutions. A security holder is protected by thc full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The torm "pass througho" io often used to describe Ginnie Maes. LIQUIDITY. A liqd � uiasss one that can be co erted easily and rapidlyto nt inh without a oubotantial loss of valuo. In the money market o sec, grit„ is said to be liquid if the spread between bid and asked pricer it narrow, and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT FUND ("LAIF"). Monies from local governmc\ntal cnitc may be remitted rnia £ate Treasurer for depooit in this speerial-fun421-for-th-e-purpGse-ef-i-n-vestment,t MARKET —VA —LUG. Th purchased or sold. MASTER REPURCHASE AGREEMENT. A written contract covering all future establishes eaoh party's righto in thc trancactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY. The date upon which thc principal or stated value of an investment becomes due and payable. MONEY—MARKET. The market in which short term dobt inotrumonts (e.g., bills, commercial F?c;, bankers's acceptances) are issued and traded. OFFER. The price asked by a seller of securities (when onc buys securities, onc asks for an offer). See "Asked"and `Bid". OPEN MARKET OPERATION . Purchases and sales of government and certain other securities in the opon market by thc New York Federal Reservo Bank, ac directed by the FOMC in order to influence the volume of money and croit in the economy. Page 22 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Opon market operations arc the Federal Reserve's mot important and most flexible monetary policy tool. PORTFOLIO. A collection of securities that an investor holds. PRIMARY DEALER, A group of government securities dealcrc that submit daily reports r�Trttrrcrrry vc rrmrcrrr.Jc�'.� arrrrc� crccr� of mar i no, and monthly finanoial otatcmcnts to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary d tilers include Securities and Exchange Commission (SEC) registered securities broker dealers banks and n fuel unregua+ec! firmo. PRUDENT�VESTOR RU E, An inves + standard A fiduciary,ar ch ac G tr'otee may in„est in , sec urity if it io ane that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital. QUALIFIED-PBNCgEPOSITORI€S.A-financial inotitution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes collatcra having a value of not less than ito manimum liaLility; and (3) has been approved by the Public Dopooit Pr RATE OF RETURN. The yield obtain.le on a security based on its purchase price or its currant market price. REPURCHASE AGREEMENT ("RP" OR "REPO"). A holder of securities sells them to a ster h a„-agreem epurchase the sec ia\o ct c fixed price an a fixed date. The security "buyor", in effect, lends the "seller" money for the period of the agreement, and the terms of the agreement arc structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: when the Fca is crud to be doing RP, it is lending money (increasing bank reserves). SAFEKEEPING. A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET. A market made for the purchase and sale of outstanding issues following the initial distribution. SSE-GIIQ €Sd AAIII EXCHANGE COMMISS An agency created by Congress + vrr--i-�rrv�vns cr�vr��virmrr oro in occurities transactions. SEC RULE 15c3-1. See "Uniform Net Capital Rule". Page 23 Palm Desert Treasury Policies and Procedures Revision No. 20 No. 2: "Statement of Investment Policy" Adopted: 6/8/17 STTRUCTU ED NOTE-S.Notso iooved by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have-i bedded --options call features, step up coupons, floating rate coupons, derivative based roturno) in their debt structure. The market performance of structured notco ;o effe ted-ham to g-interest-ratese volatility „f imbedded optiono; and ohifto in the yield curve. TREASURY BILLS. A non interest bearing discount security that iv cd by the U.S. Treasury to finance the national debt. moo. T bills are issued to maturo in three months, six months, or one ycar. TREASURY BONDS. Long term, coupon bearing U.E. Tr asury securitioo that are issuer! as direct obligations of tho U.E. Government, and having initial maturities of MOM than 10 years. TREASURY NOTES. M - upon_b easuythe fare issued ac diroct obligations of tho U.E. Government, and having initial matNritics of two to 10 years. UNIFORM NET CAPITAL RLI. E. EEC requirement that member firma, L\o woll o non member broker dealers in securities, meint&I a msnimum ratio of indebtedness to liquid capital of 15-te-one. Also called net capital rule and net capita ratio. Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securities (one reason that new public issues are spread among members of underwriting syndicatoo). Liquid capital includes r6101 en -el -assets asily converted into cash. YIELD The rate of annual income return on an investment, expressed ao a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIGLC' TO -MATURITY -is the current income yield minus any premium above par or pluc any discount from par in purchase price, with the adjustment oproad over the period from the date of purchase to the date of maturity of the bond. Page 24 EXHIBIT "A" PROPOSED CHANGES TO 2019 PALM DESERT INVESTMENT POLICY 7 f 4-, c - / tE-io- ® / & w = § 2 % / \ \ 0 k , c » E u k — _ — 2 > 0.1 8r 3 EIL /k �/ •D� f7 ° - C u .0 - a) c d CU Co k 2 \ \ (0 u. / g 3 t 2 u = S c u $ E co c co % t 0 - 0 2 3 \ c '� 2 C E E co Q) 3 o = E o 2 k S c/ • 0 % C 2 0 E§ oC6 o f CU 0 CO 0_ u m g CO \ 4- - 3 \ R 4-' c 7 ƒ 3 [ Q \ o u c m / 0 g E — d m u ) / / 3 f ' > vo e 4 U C / f \ / / e e / \ / / « cu z ° _ 0 § z Table of Contents (1) "Investment officers" substituted for specific job titles. (1) Two -portfolio strategy deleted since City no longer uses it. § kCr S (1) "Designee" substituted for specific job title. Delegation of Authority E cA 2 t _a E 2fk k 2 / = § / ± \ ƒ \ -cr) k k 0 C c �� el ro O 7 E1 \ 2 § $ -D t = cn E c co u § - 2 £ i� el co E 0. 4-, k £ E / CU co .c :I-. s 76 E "< •cu c \ x C c CI) -0 § C- CU c 7 0- 2 2 « e ri Authorized Financial Dealers and Institutions a g o o¥ / o 0 z _ Q w co -40 a) v O o cu o 0. a.L.) c E c .N o c c o o . - 111 . , O (.1 c0 >. O N :F., 4-, .OL H '. = c 4 f�0 O 00 co E o. a) a) `-' E N t) O X o O E aJ 4- .N • X a) -0 a) in co > EL' 00 c E ° 3 c a) +, 0_o 0 CO E co _at a) �� E c c — � U O > >' N a••'. U 'L 0 .E `-, 0 J O u fO C C aa -00 au) c O F- c 'a t O �0 +_ U N Illa, 3 0 ON 00 ro L c Q Q W c = Q- co — O m > CO_13r 1n vi Z .'^ FO- O W NO N ILI N aW 00 a-J a co 0 N o_ Ltri a) H Authorized and Suitable Investments c L O 0 O ate) = N Z N California State and Local Agency Obligations l0 7 0- 0 0- CO a) 00 0 0 1 a) 0 c N v a) > c 10 a) L 0 c a) a) v 0 e-1 Banker's Acceptances •0 a) 00 f0 0 O t0 .a) ai 0 a) OA '0 c0 c 4- 0 c co a) E 'E) a) 0.0 CO 0A c f0 a) 10 - O 0 f0 U L D- O n C7 Q U i O -a E a) E O 00 u c v 0 a) E N o a) Q f6 E c v c C 0 0 (L0 -D v c C v c E O 0 O Ln cI N Commercial Paper aJ 0 U > 0 U 3 .O a) c an CO 0 0 a CO t 0 a) a) (7 a) O c E a) E a) E (1) Total portfolio concentration limit reduced from 30% to 15%. Negotiable Certificates of Deposit N L cu E E = O N 15 '- E E o N -a N •~ co a) o c a)L o Q- o E f0 U O a) O-> cn 4- E v 0 7 c E O "a > N v U a, E El) -c +L+ a) 0 C.)0 +' c -0 o v o a } _o y c E co E on E — t0 c= > = L c - O j N O >- f0 Vf +, R c a) a) cc O Q a U to -0 -CO �, O O U Ov 0 U a., 0 `4-L° >13 -a o c O c } t o 0 - v o < E a) U 0 U H ate- \ + o a0+ p) H c c co 0 Medium -Term Notes .-1 00 CO CO Q1 1 0 M EXHIBIT "A" PROPOSED CHANGES TO 2019 PALM DESERT INVESTMENT POLICY 4- 0 0 U U CO a a U d4 c c0 CO _0 co a E t 0 E LE 1 to -a ccoLL = co • cu Q a C + � -a v C -a a a CO 4- i N L1 O U O • VI a a a o L ,U i O }L+ o 4-' • a1 +' = L -0 < a a a +' o o a c a c.)- °3 o = o > u E Uo o l.0 CO Q o_ ill- —, U .--I a --I N a H State Local Agency Investment Fund Local Government Investment Pools e1 N 1 (1) Appendix "A" replaces specific page reference. Safekeeping and Custody c a co ui a E 0 • XI L O -, c0 _o v a L. >, . _0 > CD 00 L CO >- c L Cl.) U "O 0 co U O a O T o_o +' C CT3 +' Cr- C o v o 4-c a ✓ >...>...>, E o 4 -0 v cco +, 0c c 0 aj o a`1 c ai > 4 c E > 3 aiiia E o a c cu O a > N a ' Q �o =.— t c aci a O oO -0cco C 3 3 a) L i=' C Q CO > aa) CO t •+—+ a CO U a4-' N >> w 00 EE > O a s ++ C a. E o. O a .7, O O a) v ' o a1 CIJ MI E 0) `° - a) C U a O c0 a s • C x c1 a 3 C a -a a N :'-' •U c f° c0 _` E , c LE 4- C a1 o Q E N O +, w to C X U ++ U aL-, c co • = E CO c° ▪ c c 'o v t• F CO CO+w 0 > 0_ C co CO c0 U E CU O < LT_ ci ' U v % -1 !NI e1 N Maximum Maturities Credit Downgrading Bond Proceeds Internal Controls Investment Policy Adoption O O O O O O M 111 00 01 O c-1 c-I e--I r-I N N l0 d- Ln co N e1 e1 e--1 ei e1 % -1 presented to City Council for approval. (1) Deleted. See previous discussion under Table of Contents. Appendix B: Glossary M a co cu 0 U J 0 0- O I- I- z Nw w2 <zN Q >w m V Z d- W w a. O cn aw O i3 CC M a_1 4 O. CD 0 N U 0 a O z N W 2 r W m (-) Z `� m 2~ 0) x 111 oC W O N a w O cc 2 a J a rn 0 N EXHIBIT "A" PROPOSED CHANGES TO 2019 PALM DESERT INVESTMENT POLICY OD a) 0) as l.L. BY FIN ATMS ON . ) ((-,( /% VERIFIED BY: Original on file with City MEETING DATE: SUBMITTED BY: REQUEST: CITY COUNCILAC�ION APPROVED �/ DENIED RECEIVED OTHER CITY OF PALM DESERT.' P VI DESERT FINANCIN ems, vv��11 AYES: STAFF REPOFPES: A ABSENT: h /M ABSTAIN: /1 Recommendation April 11, 2019 VERIFIED BY: Veronica Tapia, Senior Manag91gRf l twit4 City (Y/-/l- /6l IL ly as P e 4 &r i rk's Office CONSIDERATION OF UNIVERSITY PARK COMMUNITY FACILITIES DISTRICT (CFD) BOND REFUNDING That the City Council and Financing Authority, by Minute Motion: 1) Authorize City Manager and the Finance Officer (Director of Finance of the City of Palm Desert) to begin working with the financing team to prepare the necessary preliminary documentation for the issuance of the Refunding Bonds for University Park 2006A Bonds. This will include entering into engagement letters and agreements with the financing team for their services; and 2) Authorize staff to select an underwriter from the approved Underwriters Pool based on the criteria established in the Request for Qualifications dated June 4, 2018 and prioritized by the refunding needs of the CFD. Strategic Plan Approval of the University Park Refunding Bond Plan supports the Land Use, Housing and Open Space Priority 2 by providing a funding mechanism to assist in financing further development of University Park. Executive Summary A review of University Park Community Facilities District ("CFD") Bonds has identified potential savings from a refunding of the debt. The properties securing the debt were recently sold and the new owners desire to explore any opportunities for cost savings on the existing debt. Background The City on behalf of the University Park Community Facilities District (CFD) issued two series of debt in 2006 and 2007 with a combined par amount of $70 million. The repayment of that debt is a burden that is carried by the property owners within the CFD boundaries. In early 2016, the City authorized a bond call of all of the outstanding 2007 series and part of the outstanding 2006 series using unspent bond proceeds. After the bond call, STAFF REPORT UNIVERSITY PARK CFD BOND REFUNDING APRIL 11, 2019 PAGE 2 there was $31,130,000 remaining of the 2006 series, of which $28,260,000 currently remains outstanding. At the time of issuance, it was anticipated that the properties would be developed with a mix of residential, commercial, office, and open space. Due to timing, market conditions and subsequent market downturn, only about 37% of the properties in the CFD have been developed to date. The remaining 63% is now owned by the University Park Investor LLC ("UPI"). UPI has completed the entitlement process with the Planning Department and submitted their grading plan with the intent to begin grading in late 2019. While actively engaged in the development process, UPI has also requested that staff assist with refunding the outstanding debt if sufficient savings can be recognized. As the municipal advisor for the outstanding bonds, Del Rio Advisors, LLC was engaged by the City to determine if any cost savings could be recognized through debt refunding. Del Rio Advisors determined that there is savings available as of their March 29, 2019 analysis. In general, a net present value savings of 3.00% or greater are considered significant. Based on current rates and the credit worthiness of the issue, Del Rio Advisors determined that the CFD has the potential to realize approximately $273,227 in savings to annual debt service payments. Of that annual savings, UPI stands to recognize about $172,133 in annual savings on debt service, which in turn would save any future owners of the properties within the CFD boundaries. In total, refunding the outstanding debt may generate savings of approximately $4.65 million over the life of the bond. That equates to about $3.2 million net present value savings (or 11.45% NPV savings). Additionally, recent analyses provided by multiple underwriters in the Underwriting Pool indicate even greater savings may exist depending on the timing of the refunding. Based on the analysis of Del Rio Advisors, UPI has asked that we expeditiously move forward with the refunding of the CFD debt. Staff agrees that a refunding is warranted and in order to move forward, will need to assimilate the refunding financing team. The current bonds have a call date of September, 2019, so time is of the essence. In addition to the municipal advisor, there are many other participants involved in the issuance of refunding bonds. An Underwriter will need to be selected from the established Pool based on the criteria previously established. The underwriter is responsible for marketing the bonds to potential investors, buying the Refunding Bonds from the City at closing, and then sell the Refunding Bonds to the investors. Other participants include Bond Counsel, who will provide advice from a bond law perspective, prepare the key legal documents for the transaction and, upon closing, deliver its opinions regarding the legal validity of the Refunding Bonds. Disclosure Counsel will assist the City with the preparation of an official statement, the document which provide disclosure to investors regarding the terms, the source of repayment, and certain investment risks pertaining to the Refunding Bonds. Some of the key information in the official statement will be based on the Engineer's Report provided by G `rda'\ cronica Tapia Word Fdcs�Sraff Reports\SR CI'D Refunding Plan 4-11-19 rev 4-1-19 doc STAFF REPORT UNIVERSITY PARK CFD BOND REFUNDING APRIL 11, 2019 PAGE 3 the Assessment District Engineer. These are the legal and financial representations that the buyers of the bonds rely upon to make their investments. The costs of issuance for the Refunding Bonds (including the underwriter's discount, compensation to the Municipal Advisor, Bond Counsel, Disclosure Counsel, District Engineer and other costs (i.e. staff costs, printing costs for the official statement) are estimated to be under 1.98% of the total principal amount of the Refunding Bonds, or approximately $560,000. If the City Council approves this request, the City Manager and the Finance Officer (Director of Finance) will identify the team and begin working with the financing team to prepare the necessary preliminary documentation for the issuance of the refunding bonds. This will include entering into engagement letters and agreements for the financing team for their services. The estimated value of each of the team members identified will be well within the City Manager's authority, with the exception of Bond Counsel and the Municipal advisor (estimated at $65,000 and $62,500 respectively). Due to their involvement in the original issue, the value associated with their knowledge of the product provides a cost efficiency for their continued participation in this issue. All of these costs will be paid through the refunding and are considered in the analysis. Fiscal Analysis As shown in the Plan of Refunding and Savings Analysis, the estimated debt service savings from the refunding, based on bond market conditions as of end of March 2019, are as follows: Expected Total Outstanding Debt Service Principal to be Savings from Refunded Refunding $28,260,000 $4,644,864 Average Annual Savings Net Present Value Savings as Percentage of Prior Issue $273,227 11.45% In general, a net present value savings of 3.00% or greater are considered significant and supports a refunding. The savings will benefit the current and future property owners within the University Park CFD. LEGAL REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Hargreaves City Attorney tCZC - ` an t Moore 'rector of Finance Lauri Aylaian City Manager CONTENTS: Plan of Refunding and Savings (4 \rda Veronica Tapia• Word Files\Staff Reports\SR CM Refunding Plan 4-11-19 rev 4-1-19 doc City of Palm Desert Refunding Special Tax Bonds, Series 2019 (University Park, Series 2006A) Sources and Uses of Funds (Public Offering) Sources of Funds Par Amount of Bonds Plus: Accrued Interest Less: (OID) Plus: OIP Uses of Funds Net Proceeds at Closing Outstanding Reserve Fund Debt Service Due 9/1/19 Other Source of Funds Total Other Sources of Funds Total Sources of Funds 25,705,000.00 1,862,010.75 27,567,010.75 2,508,452.50 1,735,062.50 4,243,515.00 31,810,525.75 Cost to Payoff Prior Issue 29,015,062.50 Beginning Escrow Cash Balance Reserve Fund (1) 2,233,950.00 Underwriter's Discount (2) 257,050.00 Cost of Issuance (3) 304,463.25 Other Use of Funds Total Uses of Funds 31,810,525.75 Rounding Adjustment Reserve Fund Calculation Maximum Annual Debt Service (MADS) 10.00% of the Net Proceeds of the Bonds 1.25 Times Average Annual Debt Service Assumptions (1) Maximum Annual Debt Service (MADS) (2) 1.00% ($10.00/bond) of the Par Amount of Bonds (3) Estimated Amount, Budget TBD Run Date Run Time March 30, 2019 5:24 AM Dollar Amount 2,233,950.00 2,753,319.78 2,774,662.54 s6u!neg anIen luasam laN (06'ZS6'S£Z'E) ££1806'940'Z L ££'906'£SL'L£ ££'806'£SL'L£ 00'S£8'££ L'44 L1C�A(� <pW�Wm�<o........W�W<oWroWroW�Wm� .i„ w �"� N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O Oa M 000000000000000000000000000000000000. m 7 d W W W W W W W W W W W W W W N N N N N N N N N N N N N N N N N N N N O'' (p 01 0) 1 01 A ? 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J V J V V V V V V J V (O ID A N N (T N N 0 N N A A W A W N V 0 O A (0 V O OD V + O O 0 (O + V , D 01 0 (NT1 0) N (011 0 CO (OT (01 0 0 CO 00) 01 UV1 OO) C) 7 O O O O sob in O O O O O in O O O O O c O O O O O O O O O O O O O O O O V a d N N W N 01 0) W O + W (p O 01 A A O N OW O 4, 00 0 N A - A A N A N A W A W A A W (T W O N O N (O N O N++ N+ W O O+ 01 m W V 0 W A O W J W W W (0 O O 0 V A O 00 ONO W N+ (0 N V V O V 0 W (0 O 00 (0 (O V1 A0)(0 V 01 O N 0O W 0 O (T d (O O+ V O (O O W 01 (O (0 O 01 + V W 0 O V O O O 0 (0 O 00 (N N W(0 j 00 00 V N O W O O N < N 0 O O W O N O O O O A (O + o A no O W N 00 OO O A O N N V d O O A W O V+ 0+ V (O W V N V ONO W W O O+ N (,co O O W++0o' CA V O O V (T + W A 0 V N 00 O 0 N (O N N 00 V N+ N+ O O V A V O (O + A NMO City of Palm Desert Refunding Special Tax Bonds, Series 2019 (University Park, Series 2006A) Estimated Costs of Issuance Bond Counsel 65,000.00 Bond Counsel Expenses 2,500.00 Disclosure Counsel 30,000.00 Municipal Advisor 62,500.00 Municipal Advisor Expenses 1,500.00 City Administration 80,000.00 Special Tax Consultant 15,000.00 Appraisal 20,000.00 Fiscal Agent/Trustee/Escrow Agent 10,000.00 Verification Report 4,000.00 Miscellaneous / Printing / Regulatory 10,000.00 Rounding Adjustment 3,963.25 Total 304,463.25