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HomeMy WebLinkAbout2024-03-26 FC Regular Meeting Agenda Packet FINANCE COMMITTEE CITY OF PALM DESERT MEETING AGENDA Tuesday, March 26, 2024 10:00 a.m. Administrative Conference Room, City Hall 73-510 Fred Waring Drive Palm Desert, CA 92260 Pursuant to Assembly Bill 2449, this meeting will be conducted as a hybrid meeting and there will be in-person access to this location. To participate via Zoom, use the following link: https://palmdesert.zoom.us/j/86292070396 or call (213) 338-8477, Zoom Meeting ID: 862 9207 0396 • Written public comment may also be submitted to cityclerk@palmdesert.gov. E-mails received by 4:00 p.m. the day prior to the meeting will be distributed to the Committee. Any correspondence received during or after the meeting will be distributed to the Committee as soon as practicable and retained for the official record. Emails will not be read aloud except as an ADA accommodation. • Pages 1.CALL TO ORDER 2.ROLL CALL 3.NONAGENDA PUBLIC COMMENTS This time has been set aside for the public to address the Finance Committee on issues that are not on the agenda for up to three minutes. Speakers may utilize one of the three options listed on the first page of the agenda. Because the Brown Act does not allow the Finance Committee to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 4.CONSENT CALENDAR All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by the Finance Committee for a separate discussion. RECOMMENDATION: To approve the consent calendar as presented. 4.a APPROVAL OF MINUTES 5 RECOMMENDATION: Approve the Minutes of January 22, 2024. 5.CONSENT ITEMS HELD OVER 6.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the three options listed on the first page of the agenda. 6.a FINANCE DIRECTOR'S REPORT FOR GENERAL FUND FINANCIAL REPORTS 9 RECOMMENDATION: Receive and file the General Fund Financial Reports for the months ending January 31, 2024 and February 29, 2024. 6.b PARKVIEW OFFICE COMPLEX FINANCIAL AND VACANCY REPORTS 15 RECOMMENDATION: Receive and file the Parkview Office Complex Financial Reports for the months ending January 31, 2024 and February 29, 2024. 1. Receive and file the Parkview Office Complex Vacancy Report for the month ending February 29, 2024. 2. 6.c DESERT WILLOW GOLF RESORT FINANCIAL REPORTS 27 RECOMMENDATION: Receive and file the Desert Willow Golf Resort Financial Reports for the months ending January 31, 2024, and February 29, 2024. 6.d CITY TREASURER'S INVESTMENT REPORTS 53 RECOMMENDATION: Receive and file the City Treasurer’s Investment Reports for the months ending January 31, 2024, and February 29, 2024. 7.INFORMATIONAL REPORTS & COMMENTS 7.a FINANCE COMMITTEE MEMBERS 7.b CITY STAFF 7.c ATTENDANCE REPORT 117 8.ADJOURNMENT The next Regular Meeting will be held on May 28, 2024 at 10:00 a.m. Page 2 of 118 9.PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Finance Committee was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. /S/ Michelle Nance Deputy Clerk I Page 3 of 118 Page 4 of 117 Finance Committee Meeting City of Palm Desert Page 1 FINANCE COMMITTEE CITY OF PALM DESERT, CALIFORNIA MINUTES Click HERE to review the meeting audio. Click HERE to access the meeting agenda packet. 1. CALL TO ORDER A Special Meeting of the Finance Committee was called to order by Chair Leo on Monday, January 22, 2024, at 3:00 p.m., in the Administrative Conference Room, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. ROLL CALL Present: Committee Members Carlos Garcia*, Jan Harnik, Gretchen Heuring, Faith Messenger, Karina Quintanilla, Jake Wuest and Chair Robert Leo. *Vice Chair Garcia participated via Zoom in accordance with Brown Act requirements. Absent: None. Liaisons: Derek White and Anthony Hernandez of Desert Willow Golf Resort. City Staff Present: Liberty Urban, Deputy Director of Finance; James Bounds, Finance Supervisor, and Michelle Nance, Recording Secretary. 3. NON-AGENDA PUBLIC COMMENT: None. 4. CONSENT CALENDAR: A. APPROVAL OF MINUTES MOTION BY COMMITTEE MEMBER HARNIK, SECOND BY COMMITTEE MEMBER WUEST, CARRIED 6-0-1(WITH COMMITTEE MEMBER HARNIK ABSTAINING), to approve the Finance Committee Regular Meeting minutes of November 28, 2023. Monday January 22, 2024 3:00 p.m. Special Meeting Page 5 of 117 Finance Committee Meeting Finance Committee Minutes January 22, 2024 City of Palm Desert Page 2 ALL ACTIONS ARE DRAFT, PENDING APPROVAL OF THE MINUTES 5. ACTION CALENDAR A. FINANCE DIRECTOR’S REPORTS Finance Deputy Director Urban presented the General Fund Financial Report for months ending November 30, 2023, and December 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER WUEST, SECOND BY COMMITTEE MEMBER GARCIA, CARRIED 7-0, to receive and file the General Fund Financial Report for months ending November 30, 2023, and December 31, 2023. B. PARKVIEW OFFICE COMPLEX FINANCIAL REPORTS Finance Deputy Director Urban presented the Parkview Office Complex Financial Report for months ending November 30, 2023, and December 31, 2023; and the Parkview Office Complex Vacancy Report for the month ending December 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER MESSENGER, SECOND BY COMMITTEE MEMBER GARCIA, CARRIED 7-0, to receive and file the Parkview Office Complex Financial Report for months ending November 30, 2023, and December 31, 2023; and the Parkview Office Complex Vacancy Report for the month ending December 31, 2023. C. DESERT WILLOW GOLF RESORT FINANCIAL REPORTS Desert Willow Golf Resort General Manager White presented the Desert Willow Golf Resort Financial Reports for months ending November 30, 2023, and December 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER HARNIK, SECOND BY COMMITTEE MEMBER WUEST, CARRIED 7-0, to receive and file the Desert Willow Financial Report for months ending November 30, 2023, and December 31, 2023. D. CITY TREASURER’S INVESTMENT REPORTS Finance Supervisor Bounds presented the City Treasurer’s Reports for months ending November 30, 2023, and December 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER HARNIK, SECOND BY COMMITTEE MEMBER QUINTANILLA, CARRIED 7-0, to receive and file the City Treasurer’s Investment Report for months ending November 30, 2023, and December 31, 2023. Page 6 of 117 Finance Committee Meeting Finance Committee Minutes January 22, 2024 City of Palm Desert Page 3 ALL ACTIONS ARE DRAFT, PENDING APPROVAL OF THE MINUTES E. INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 MOTION BY COMMITTEE MEMBER HARNIK, SECOND BY COMMITTEE MEMBER WUEST, CARRIED 7-0, to receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023 F. REPORT ON THE AWARD OF CONTRACT TO LANCE, SOLL & LUNGHARD, LLP (LSL, CPAS) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE FISCAL YEARS ENDING JUNE 30, 2024, THROUGH 2026 MOTION BY COMMITTEE MEMBER WUEST, SECOND BY COMMITTEE MEMBER MESSENGER, CARRIED 7-0, to recommend award of contract to Lance, Soll & Lunghard, LLP (LSL CPAs) to perform professional auditing services for the fiscal years ending June 30, 2024 through 2026 in the amount of $89,082 for the first year, $91,755 for the second year and $94,507 for the third year. 6. INFORMATIONAL REPORTS & COMMENTS A. FINANCE COMMITTEE MEMBERS Committee Member Harnik, with support of the Committee, requested page numbers be added to the agenda coversheet. B. CITY STAFF Recording Secretary Nance advised that future meetings will be held in the Administrative Conference Room. C. ATTENDANCE REPORT – Report was provided as supplemental material; no action taken on this item. 7. ADJOURNMENT - The Finance Committee adjourned at 3:36 p.m. Respectfully submitted, Michelle Nance, Deputy Clerk I Recording Secretary ATTEST: Liberty Urban, Deputy Director of Finance Staff Liaison APPROVED BY THE FINANCE COMMITTEE: __/__/2024 Page 7 of 117 Finance Committee Meeting Page 8 of 117 Finance Committee Meeting Page 1 of 1 FINANCE COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 26, 2024 PREPARED BY: Veronica Chavez, Director of Finance REQUEST: FINANCE DIRECTOR'S REPORT FOR GENERAL FUND FINANCIAL REPORTS RECOMMENDATION: Receive and file the General Fund Financial Reports for the months ending January 31, 2024 and February 29, 2024. BACKGROUND/ANALYSIS: City staff will provide an update on the General Fund Financial Reports for the months ending January 31, 2024 and February 29, 2024. ATTACHMENTS: 1. General Fund Financial Report for the month ending January 31, 2024 2. General Fund Financial Report for the month ending February 29, 2024. Page 9 of 117 Finance Committee Meeting Page 10 of 117 Finance Committee Meeting Monthly Financial Report January 2024 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending January 31, 2024. Financial analysis for this report is provided for the General Fund REVENUES TO DATE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUND SUMMARY Page 11 of 117 Finance Committee Meeting Monthly Financial Report January 2024 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov YEAR OVER YEAR COMPARISON Page 12 of 117 Finance Committee Meeting Monthly Financial Report February 2024 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending February 29, 2024. Financial analysis for this report is provided for the General Fund REVENUES TO DATE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUND SUMMARY Page 13 of 117 Finance Committee Meeting Monthly Financial Report February 2024 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov YEAR OVER YEAR COMPARISON Page 14 of 117 Finance Committee Meeting Page 1 of 1 FINANCE COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 26, 2024 PREPARED BY: Arlene Arellano, Accountant REQUEST: PARKVIEW OFFICE COMPLEX FINANCIAL AND VACANCY REPORTS RECOMMENDATION: 1. Receive and file the Parkview Office Complex Financial Reports for the months ending January 31, 2024 and February 29, 2024. 2. Receive and file the Parkview Office Complex Vacancy Report for the month ending February 29, 2024. BACKGROUND/ANALYSIS: City staff will provide an update on the Parkview Office Complex Financial and Vacancy Reports for the months ending January 31, 2024, and February 29, 2024. ATTACHMENTS: 1. Parkview Office Complex Financial Report for the month ending January 31, 2024 2. Parkview Office Complex Financial Report for the month ending February 29, 2024 3. Parkview Office Complex Vacancy Report for the month ending February 29, 2024 Page 15 of 117 Finance Committee Meeting Page 16 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended January 31,2024 January-24 January-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building 2,521$ (29,854)$ (32,375)$ -1284.31%-1184.31%17,646$ (9,716)$ (27,362)$ -155%-55% 73-720 Fred Waring Dr. - One (1) Story Building 3,188$ 15,342$ 12,154$ 381.31%481.31%22,313$ 150,703$ 128,390$ 575%675% Combined Summary of Net Income 5,708$ (14,513)$ (20,221)$ -354.23%-254.23%39,958$ 140,987$ 101,029$ 252.84%352.84% Summary of Net Income $(35,000) $(30,000) $(25,000) $(20,000) $(15,000) $(10,000) $(5,000) $- $5,000 $10,000 $15,000 $20,000 Budget Actual January Net Income 73-720 Fred Waring Dr. - One (1) Story Building 73-710 Fred Waring Dr. - Two (2) Story Building $(20,000) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Budget Actual YTD Net Income Page 17 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended January 31,2024 January-24 January-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues* Rental 38,750$ 18,208$ (20,542)$ -53%47%271,250$ 143,125$ (128,125)$ -47%53% Total Revenues 38,750$ 18,208$ (20,542)$ -53%47%271,250$ 143,125$ (128,125)$ -47%53% Expenses** Tenant Improvements 6,717$ -$ (6,717)$ -100%0%47,017$ -$ (47,017)$ -100%0% Repairs & Maintenance- Building 1,550$ 6,902$ 5,352$ 345%445%10,850$ 13,670$ 2,820$ 26%126% Repairs & Maintenance- Streets 1,033$ 188$ (845)$ -82%18%7,233$ 940$ (6,293)$ -87%13% Repairs & Maintenance- Other Equip 1,033$ -$ (1,033)$ -100%0%7,233$ -$ (7,233)$ -100%0% Utilities-Gas/Electric 7,059$ 5,433$ (1,625)$ -23%77%49,411$ 43,528$ (5,883)$ -12%88% 444 CAM Janitorial Services 13,740$ 29,645$ 15,905$ 116%216%96,180$ 71,571$ (24,609)$ -26%74% 444 CAM Landscaping Services 2,642$ 4,000$ 1,358$ 51%151%18,492$ 14,000$ (4,492)$ -24%76% 444 CAM Alarm 315$ 432$ 117$ 37%137%2,205$ 1,296$ (909)$ -41%59% 444CAM Pest Control 171$ 165$ (6)$ -3%0%1,194$ 413$ (781)$ -65%35% 444 CAM Utilities-Waste Disposal 820$ 483$ (337)$ -41%59%5,740$ 3,379$ (2,361)$ -41%59% 444 CAM Utilities-Water 400$ 193$ (207)$ -52%48%2,800$ 1,127$ (1,673)$ -60%40% 444 CAM Utilities-Telephone 750$ 621$ (129)$ -17%83%5,250$ 2,917$ (2,333)$ -44%56% Total Expenses 36,229$ 48,063$ 11,834$ 33%133%253,604$ 152,841$ (100,763)$ -40%60% Operating Income 2,521$ (29,854)$ (32,375)$ -1284%-1184%17,646$ (9,716)$ (27,362)$ -155%-55% Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0% Net Income 2,521$ (29,854)$ (32,375)$ -1284%-1184%17,646$ (9,716)$ (27,362)$ -155.06%281.62% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building Page 18 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended January 31,2024 January-24 January-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues* Rental 23,750$ 36,984$ 13,234$ 56%156%166,250$ 221,565$ 55,315$ 33%133% Total Revenues 23,750$ 36,984$ 13,234$ 56%156%166,250$ 221,565$ 55,315$ 33%133% Expenses** Tenant Improvements 4,117$ -$ (4,117)$ -100%0%28,817$ -$ (28,817)$ -100%0% Repairs & Maintenance- Building 950$ 497$ (453)$ -48%52%6,650$ 3,340$ (3,310)$ -50%50% Repairs & Maintenance- Streets 633$ -$ (633)$ -100%0%4,433$ -$ (4,433)$ -100%0% Repairs & Maintenance- Other Equip 633$ -$ (633)$ -100%0%4,433$ -$ (4,433)$ -100%0% Utilities-Gas/Electric 5,894$ 1,429$ (4,465)$ -76%24%41,256$ 17,968$ (23,287)$ -56%44% 555 CAM Janitorial Services 6,000$ 17,954$ 11,954$ 199%299%42,000$ 41,893$ (107)$ 0%100% 555 CAM Landscaping Services 300$ 600$ 300$ 100%200%2,100$ 2,100$ -$ 0%100% 555 CAM Alarm 315$ 507$ 192$ 61%161%2,205$ 1,869$ (336)$ -15%85% 555 CAM Pest Control 171$ 176$ 6$ 3%0%1,194$ 528$ (666)$ -56%44% 555 CAM Utilities-Waste Disposal 400$ 351$ (49)$ -12%88%2,800$ 2,456$ (344)$ -12%88% 555 CAM Utilities-Water 400$ 73$ (327)$ -82%18%2,800$ 428$ (2,372)$ -85%15% 555 CAM Utilities-Telephone 750$ 56$ (694)$ -93%7%5,250$ 280$ (4,970)$ -95%5% Total Expenses 20,563$ 21,642$ 1,080$ 5%105%143,938$ 70,862$ (73,075)$ -51%49% Operating Income 3,188$ 15,342$ 12,154$ 381%481%22,313$ 150,703$ 128,390$ 575%675% Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0% Net Income 3,188$ 15,342$ 12,154$ 381%126%22,313$ 150,703$ 128,390$ 575%675% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building Page 19 of 117 Finance Committee Meeting Page 20 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended February 29,2024 February-24 February-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget 73-710 Fred Waring Dr. - Two (2) Story Building 2,521$ 6,235$ 3,714$ 147.33%247.33%20,167$ (3,481)$ (23,648)$ -117%-17% 73-720 Fred Waring Dr. - One (1) Story Building 3,188$ 31,510$ 28,323$ 888.56%988.56%25,500$ 182,213$ 156,713$ 615%715% Combined Summary of Net Income 5,708$ 37,745$ 32,037$ 561.23%661.23%45,667$ 178,732$ 133,065$ 291.38%391.38% Summary of Net Income $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Budget Actual February Net Income 73-720 Fred Waring Dr. - One (1) Story Building 73-710 Fred Waring Dr. - Two (2) Story Building $(50,000) $- $50,000 $100,000 $150,000 $200,000 Budget Actual YTD Net Income Page 21 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended February 29,2024 February-24 February-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues* Rental 38,750$ 23,130$ (15,620)$ -40%60%310,000$ 166,255$ (143,745)$ -46%54% Total Revenues 38,750$ 23,130$ (15,620)$ -40%60%310,000$ 166,255$ (143,745)$ -46%54% Expenses** Tenant Improvements 6,717$ -$ (6,717)$ -100%0%53,733$ -$ (53,733)$ -100%0% Repairs & Maintenance- Building 1,550$ 8,177$ 6,627$ 428%528%12,400$ 21,847$ 9,447$ 76%176% Repairs & Maintenance- Streets 1,033$ 188$ (845)$ -82%18%8,267$ 1,128$ (7,139)$ -86%14% Repairs & Maintenance- Other Equip 1,033$ -$ (1,033)$ -100%0%8,267$ -$ (8,267)$ -100%0% Utilities-Gas/Electric 7,059$ 6,530$ (529)$ -7%93%56,469$ 50,058$ (6,411)$ -11%89% 444 CAM Janitorial Services 13,740$ 150$ (13,590)$ -99%1%109,920$ 71,721$ (38,199)$ -35%65% 444 CAM Landscaping Services 2,642$ -$ (2,642)$ -100%0%21,133$ 14,000$ (7,133)$ -34%66% 444 CAM Alarm 315$ -$ (315)$ -100%0%2,520$ 1,296$ (1,224)$ -49%51% 444CAM Pest Control 171$ 83$ (88)$ -52%0%1,364$ 495$ (869)$ -64%36% 444 CAM Utilities-Waste Disposal 820$ 483$ (337)$ -41%59%6,560$ 3,862$ (2,698)$ -41%59% 444 CAM Utilities-Water 400$ 184$ (216)$ -54%46%3,200$ 1,310$ (1,890)$ -59%41% 444 CAM Utilities-Telephone 750$ 1,101$ 351$ 47%147%6,000$ 4,018$ (1,982)$ -33%67% Total Expenses 36,229$ 16,895$ (19,334)$ -53%47%289,833$ 169,736$ (120,098)$ -41%59% Operating Income 2,521$ 6,235$ 3,714$ 147%247%20,167$ (3,481)$ (23,648)$ -117%-17% Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0% Net Income 2,521$ 6,235$ 3,714$ 147%247%20,167$ (3,481)$ (23,648)$ -117.26%679.32% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-710 Fred Waring Drive- Two (2) Story Building Page 22 of 117 Finance Committee Meeting Parkview Office Complex Statement of Activities Month Ended February 29,2024 February-24 February-24 $% %YTD YTD $% % Budget Actual Variance Variance Budget Budget Actual Variance Variance Budget Revenues* Rental 23,750$ 36,984$ 13,234$ 56%156%190,000$ 258,549$ 68,549$ 36%136% Total Revenues 23,750$ 36,984$ 13,234$ 56%156%190,000$ 258,549$ 68,549$ 36%136% Expenses** Tenant Improvements 4,117$ -$ (4,117)$ -100%0%32,933$ -$ (32,933)$ -100%0% Repairs & Maintenance- Building 950$ 2,230$ 1,280$ 135%235%7,600$ 5,570$ (2,030)$ -27%73% Repairs & Maintenance- Streets 633$ -$ (633)$ -100%0%5,067$ -$ (5,067)$ -100%0% Repairs & Maintenance- Other Equip 633$ -$ (633)$ -100%0%5,067$ -$ (5,067)$ -100%0% Utilities-Gas/Electric 5,894$ 2,241$ (3,653)$ -62%38%47,149$ 20,209$ (26,940)$ -57%43% 555 CAM Janitorial Services 6,000$ 226$ (5,774)$ -96%4%48,000$ 42,119$ (5,881)$ -12%88% 555 CAM Landscaping Services 300$ -$ (300)$ -100%0%2,400$ 2,100$ (300)$ -13%88% 555 CAM Alarm 315$ 154$ (161)$ -51%49%2,520$ 2,023$ (497)$ -20%80% 555 CAM Pest Control 171$ 88$ (83)$ -48%0%1,364$ 616$ (748)$ -55%45% 555 CAM Utilities-Waste Disposal 400$ 351$ (49)$ -12%88%3,200$ 2,807$ (393)$ -12%88% 555 CAM Utilities-Water 400$ 72$ (328)$ -82%18%3,200$ 499$ (2,701)$ -84%16% 555 CAM Utilities-Telephone 750$ 112$ (638)$ -85%15%6,000$ 392$ (5,608)$ -93%7% Total Expenses 20,563$ 5,474$ (15,089)$ -73%27%164,500$ 76,336$ (88,164)$ -54%46% Operating Income 3,188$ 31,510$ 28,323$ 889%989%25,500$ 182,213$ 156,713$ 615%715% Equipment Replacement Reserve -$ -$ -$ 0%0%-$ -$ -$ 0%0% Net Income 3,188$ 31,510$ 28,323$ 889%111%25,500$ 182,213$ 156,713$ 615%715% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budet savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for the Sheriff Substation or Henderson Building. 73-720 Fred Waring Drive- One (1) Story Building Page 23 of 117 Finance Committee Meeting Page 24 of 117 Finance Committee Meeting City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite February 29,2024 Rentable Square Feet:51,464 Square Feet Occupied:34,027 % Occupied:66% % Vacant:34% Suite No.Tenant Square Ft. 10-101 Medium Conference Room - 10-104 Large Conference Room - 10-110 Advantec 1,250 10-113 Lift to Rise 720 10-117 Lift to Rise 1,227 10-120 State of California 1,000 10-123 Lift to Rise 758 10-126 ACT for Multiple Sclerosis 928 10-129 Congressman Ken Calvert 41st District 875 10-132 Anser Advisory 1,345 10-135 Desert Recreation District 2,560 10-138 Golden Construction 488 10-141 Small Conference Room - 10-201 State of California 890 10-212 State of California 1,117 10-220 Lift to Rise 1,240 Total Occupied Suites 14,398 sq/ft 45% Suite No.Tenant Square Ft. 10-107 Vacant 1,750 10-205 Vacant 5,730 10-209 Vacant 3,040 10-215 Vacant 5,833 10-219 Vacant 1,084 Total Vacant Suites 17,437 sq/ft 55% 20-100 State of California 15,233 20-102 State of California 4,396 Total Occupied Suites 19,629 sq/ft 100% Combined Vacancy Rate Summary Occupied Suites 73-710 Fred Waring Drive- Two (2) Story Building Occupied Suites Vacant Suites 73-720 Fred Waring Drive- One (1) Story Building Page 25 of 117 Finance Committee Meeting Page 26 of 117 Finance Committee Meeting Page 1 of 1 FINANCE COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 26, 2024 PREPARED BY: Anthony Hernandez, Desert Willow Controller REQUEST: DESERT WILLOW GOLF RESORT FINANCIAL REPORTS RECOMMENDATION: Receive and file the Desert Willow Golf Resort Financial Reports for the months ending January 31, 2024, and February 29, 2024. BACKGROUND/ANALYSIS: Kemper staff will provide an update on the Desert Willow Golf Resort Financial Reports for the months ending January 31, 2024, and February 29, 2024. ATTACHMENTS: 1. Desert Willow Golf Resort Financial Report for the month ending January 31, 2024 2. Desert Willow Golf Resort Financial Report for the month ending February 29, 2024. Page 27 of 117 Finance Committee Meeting Page 28 of 117 Finance Committee Meeting Page 29 of 117 Finance Committee Meeting Page 30 of 117 Finance Committee Meeting Page 31 of 117 Finance Committee Meeting Page 32 of 117 Finance Committee Meeting Page 33 of 117 Finance Committee Meeting Page 34 of 117 Finance Committee Meeting Page 35 of 117 Finance Committee Meeting Page 36 of 117 Finance Committee Meeting Page 37 of 117 Finance Committee Meeting Page 38 of 117 Finance Committee Meeting Page 39 of 117 Finance Committee Meeting Page 40 of 117 Finance Committee Meeting Page 41 of 117 Finance Committee Meeting Page 42 of 117 Finance Committee Meeting Page 43 of 117 Finance Committee Meeting Page 44 of 117 Finance Committee Meeting Page 45 of 117 Finance Committee Meeting Page 46 of 117 Finance Committee Meeting Page 47 of 117 Finance Committee Meeting Page 48 of 117 Finance Committee Meeting Page 49 of 117 Finance Committee Meeting Page 50 of 117 Finance Committee Meeting Page 51 of 117 Finance Committee Meeting Page 52 of 117 Finance Committee Meeting Page 1 of 1 FINANCE COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 26, 2024 PREPARED BY: James Bounds, Finance Supervisor REQUEST: CITY TREASURER’S INVESTMENT REPORTS RECOMMENDATION: Receive and file the City Treasurer’s Investment Reports for the months ending January 31, 2024, and February 29, 2024. BACKGROUND/ANALYSIS: City staff will provide an update on the City Treasurer’s Investment Reports for the months ending January 31, 2024, and February 29, 2024. ATTACHMENTS: 1. City Treasurer’s Investment Reports for the month ending January 31, 2024 2. City Treasurer’s Investment Reports for the month ending February 29, 2024 Page 53 of 117 Finance Committee Meeting Page 54 of 117 Finance Committee Meeting Monthly Investment Summary Report January 2024 _________________________________________________________________________________ CITY OF PALM DESERT Y I E L D P E R F O R M A N C E The City’s current benchmark, 5-year T-Bills, aligns with the current 0-5 years investment strategy. The City’s performance of 4.82% is doing better than the 5-year T-Bill benchmark which was at 3.91%. A C T I V I T Y Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy, and all bond indentures. Key Highlights: • 5.5 million withdrawn from CAMP to meet policy requirements. • 5 million in Corporates matured and reinvested in US Treasury • Asset Class Money Market Funds have been added. These funds include the sweep account for the main checking account and funds pending reinvestment. O V E R V I E W This report summarizes the City’s investment activities and Staff analysis for the month ending January 31, 2024. I N V E S T M E N T S U M M A R Y $ Millions Beginning Ending Book Value Purchase s &Redemptions &Book Value % of Asset Class 1/1/2024 De posits Withdrawals 1/31/2024 Portfolio Agencies 15.97$ -$ -$ 15.97$ 6.5% Corporates 24.99 - (5.00) 19.99 8.1% US Treasury 16.99 7.49 - 24.48 9.9% CAMP Pool 176.04 0.81 (5.50) 171.34 69.4% LAIF Pool 0.91 0.01 - 0.92 0.4% County Pool 2.75 - - 2.75 1.1% Money Market Funds 8.57 13.92 (10.88) 11.61 4.7% Investme nts T otal 246.21$ 22.23$ (21.38)$ 247.06$ 100% Custodian ^65.54 0.57 - 66.11 Trustee ^2.95 - - 2.95 Cash 1.86 33.06 (29.80) 5.11 Cash & Cash w/Fiscal Agents T otal 70.35$ 33.63$ (29.80)$ 74.18$ T otal 316.56$ 55.86$ (51.18)$ 321.24$ ^ = Restricted funds b ased upon b ond indenture term s. 4.53 4.59 4.82 4.82 4.9 4.82 3.3 3.59 3.67 3.843 3.929 4.012 4.23 4.6 4.82 4.31 3.84 3.91 5.52 5.55 5.56 5.58 5.55 5.54 3 3.5 4 4.5 5 5.5 6 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan Yield Performance -Total Porfolio In Percentages City Yield LAIF Yield 5Y T-Bill CAMP Page 55 of 117 Finance Committee Meeting Monthly Investment Summary Report January 2024 _________________________________________________________________________________ CITY OF PALM DESERT C U R R E N T A S S E T A L L O C A T I O N As noted above Money Market Funds have been added to the Investment Allocations. Additionally, the Local Government Allocation has been brought within the Max Allocation. M A N A G E D P O R T F O L I O M A T U R I T I E S The managed portfolio is continuing to be diversified with 41.37% of investments scheduled to mature in 2-5 years. This is bring the City more in line with our 0-5 year investing strategy. Agencies, 6.46% Corporates, 8.09% US Treasury, 9.91% Local Govt, 70.84% Money Market Funds, 4.70% 0%25%50%75%100% Agencies Corporates US Treasury Local Govt Money Market Funds Investment Allocation Actual to Max Allocation Max Allocation Allocation 0.00% 10.00% 20.00% 30.00% 0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y 29.34% 21.09% 8.20% 15.11%13.36%12.90% Investment Maturity Page 56 of 117 Finance Committee Meeting Monthly Investment Summary Report January 2024 _________________________________________________________________________________ CITY OF PALM DESERT M O N T H L Y M A R K E T V A L U E C H A N G E S For January there was an overall increase of 4.583% compared to the prior month. Market Values December January $ Change Federal Agency 17,386,214.86 15,629,622.00 (1,756,592.86) * Corporate Note 24,601,929.00 19,678,474.00 (4,923,455.00) * US Treasury 15,591,367.00 24,910,023.56 9,318,656.56 * Total 57,579,510.86 60,218,119.56 2,638,608.70 4.583% * The high dollar changes between investment types are related to PFM better diversifying our portfolio, in line with our current portfolio, to take better advantage of high available yields. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________ Veronica Chavez, Finance Director Veronica Chavez (Mar 11, 2024 11:29 PDT)Mar 11, 2024 Page 57 of 117 Finance Committee Meeting Page 58 of 117 Finance Committee Meeting Page 59 of 117 Finance Committee Meeting Page 60 of 117 Finance Committee Meeting Page 61 of 117 Finance Committee Meeting Page 62 of 117 Finance Committee Meeting Page 63 of 117 Finance Committee Meeting Page 64 of 117 Finance Committee Meeting Page 65 of 117 Finance Committee Meeting Page 66 of 117 Finance Committee Meeting Page 67 of 117 Finance Committee Meeting Page 68 of 117 Finance Committee Meeting Page 69 of 117 Finance Committee Meeting Page 70 of 117 Finance Committee Meeting Page 71 of 117 Finance Committee Meeting Page 72 of 117 Finance Committee Meeting Page 73 of 117 Finance Committee Meeting Page 74 of 117 Finance Committee Meeting Parameters:Query: Fund Summary County of Riverside Treasurer-Tax CollectorFund Summary Report Bank: oneof Account Number: oneof 052460, 052470 Counterparty: equalto Run Date:05-Feb-2024 12:33:23 PM User:Susan From : To : As at : 01-Jan-2024 31-Jan-2024 05-Feb-2024 Balance Calculation Based On:Value Date Total Balance ForwardAccount NameAccount Number Total Receipts Total Payments City Of Palm Desert052460 $2,745,508.13 $0.00 $0.00 $2,745,508.13 Printed on 2/5/2024 Page 1 of 1End of Report Page 75 of 117 Finance Committee Meeting RDA Successor Agency Monthly Investment Summary Report January 2024 _________________________________________________________________________________ CITY OF PALM DESERT A C T I V I T Y 2nd half tax payment received, Debt service transferred to trustee. Replated payments will go out 02/01 and 04/01. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director O V E R V I E W This report summarizes the RDA Successor Agency investment activities for the month ending January 31, 2024. I N V E S T M E N T S U M M A R Y Be ginning Ending Book Value Purchase s &Re de mptions &Book Value Asse t Class 1/1/2024 De posits Withdrawals 1/31/2024 CAMP Pool 6,140.97 28.79 - 6,169.76 LAIF Pool 769.22 7.73 - 776.95 County Pool 349.70 - - 349.70 Inv estme nts T otal 7,259.89$ 36.52$ -$ 7,296.41$ Trustee ^15,780,923.66 14,485,878.62 (7,436,391.08) 22,830,411.20 Cas h 2,859,202.62 10,731,461.00 (7,050,371.02) 6,540,292.60 Cash & Cash w/Fiscal Age ntys T otal 18,640,126.28$ 25,217,339.62$ (14,486,762.10)$ 29,370,703.80$ T otal 18,647,386.17$ 25,217,376.14$ (14,486,762.10)$ 29,378,000.21$ ^ = Restricted funds b ased upon b ond indenture term s. Veronica Chavez (Mar 11, 2024 11:29 PDT)Mar 11, 2024 Page 76 of 117 Finance Committee Meeting Page 77 of 117 Finance Committee Meeting Page 78 of 117 Finance Committee Meeting Page 79 of 117 Finance Committee Meeting Page 80 of 117 Finance Committee Meeting Palm Desert Housing Authority Monthly Investment Summary Report January 2024 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director O V E R V I E W This report summarizes the Palm Desert Housing Authority investment activities for the month ending January 31, 2024. I N V E S T M E N T S U M M A R Y $ Millions Be ginning Ending Book Value Purchase s &Re de mptions &Book Value Asse t Class 1/1/2024 De posits Withdrawals 1/31/2024 CAMP Pool 55.35 0.26 - 55.61 LAIF Pool 1.01 0.01 - 1.02 Inv e stme nts T otal 56.36$ 0.27$ -$ 56.63$ Cas h 1.48 0.77 (0.73) 1.52 T otal 57.84$ 1.04$ (0.73)$ 58.15$ ^ = Restricted funds b ased upon b ond indenture term s. Veronica Chavez (Mar 11, 2024 11:29 PDT)Mar 11, 2024 Page 81 of 117 Finance Committee Meeting Page 82 of 117 Finance Committee Meeting Page 83 of 117 Finance Committee Meeting Page 84 of 117 Finance Committee Meeting 01-2024 Investment summary Final Audit Report 2024-03-11 Created:2024-03-11 By:James Bounds (jbounds@palmdesert.gov) Status:Signed Transaction ID:CBJCHBCAABAAmiFfAzggFYVQtZFnn3B76VuLd9SV_cGs "01-2024 Investment summary" History Document created by James Bounds (jbounds@palmdesert.gov) 2024-03-11 - 6:23:00 PM GMT- IP address: 64.60.5.80 Document emailed to Veronica Chavez (vchavez@palmdesert.gov) for signature 2024-03-11 - 6:24:02 PM GMT Email viewed by Veronica Chavez (vchavez@palmdesert.gov) 2024-03-11 - 6:28:45 PM GMT- IP address: 152.39.237.199 Document e-signed by Veronica Chavez (vchavez@palmdesert.gov) Signature Date: 2024-03-11 - 6:29:36 PM GMT - Time Source: server- IP address: 64.60.5.80 Agreement completed. 2024-03-11 - 6:29:36 PM GMT Page 85 of 117 Finance Committee Meeting Page 86 of 117 Finance Committee Meeting Page 87 of 117 Finance Committee Meeting Page 88 of 117 Finance Committee Meeting Page 89 of 117 Finance Committee Meeting Page 90 of 117 Finance Committee Meeting Page 91 of 117 Finance Committee Meeting Page 92 of 117 Finance Committee Meeting Page 93 of 117 Finance Committee Meeting Page 94 of 117 Finance Committee Meeting Page 95 of 117 Finance Committee Meeting Page 96 of 117 Finance Committee Meeting Page 97 of 117 Finance Committee Meeting Page 98 of 117 Finance Committee Meeting Page 99 of 117 Finance Committee Meeting Page 100 of 117 Finance Committee Meeting Page 101 of 117 Finance Committee Meeting Page 102 of 117 Finance Committee Meeting Page 103 of 117 Finance Committee Meeting Page 104 of 117 Finance Committee Meeting Page 105 of 117 Finance Committee Meeting Page 106 of 117 Finance Committee Meeting Page 107 of 117 Finance Committee Meeting Page 108 of 117 Finance Committee Meeting Page 109 of 117 Finance Committee Meeting Page 110 of 117 Finance Committee Meeting Page 111 of 117 Finance Committee Meeting Page 112 of 117 Finance Committee Meeting Page 113 of 117 Finance Committee Meeting Page 114 of 117 Finance Committee Meeting Page 115 of 117 Finance Committee Meeting Page 116 of 117 Finance Committee Meeting CITY OF PALM DESERT ATTENDANCE REPORT Advisory Body: Prepared By: Year 2023 2023 2023 2023 2023 2023 2024 Month Jan Mar May Jul Sep Nov Jan Date 24-Jan 28-Mar 31-May N/A 26-Sep 28-Nov 22-Jan Alexander, Karen A P A - N/A N/A N/A 3 3 Garcia, Carlos P P P - P P P 0 0 Heuring, Gretchen N/A N/A N/A - P P P 0 0 Leo, Robert P P P - P P P 0 0 Messenger, Faith E P P - P P P 2 0 Wuest, Jake P P P - E P P 0 0 Harnik, Jan*N/A N/A N/A - N/A N/A P 0 0 Kelly, Kathleen*P P P - P P N/A 0 0 Quintanilla, Karina*P P A - P P P 1 1 Palm Desert Municipal Code 2.34.010: P Present A Absent E Excused -No meeting Bimonthly: Two unexcused absences from regular meetings in any twelve-month period shall constitute an automatic resignation of members holding office on boards that meet bimonthly. Total Absences Total Unexcused Absences Finance Committee Michelle Nance * Mayor and Mayor Pro Tem rotating positions are voting members of this Committee Page 117 of 117 Finance Committee Meeting