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HomeMy WebLinkAbout02 AUGUST 1995 _ ____ �,_._. ____ ,� � ; E � � ' � N � C7 17 IQ � AGENDA INVESTMfiNT & FINANCE COMMITTEE 3 :30 P.M. - AUGUST 3, 1995 NORTH WING CONFERENCE ROOM * * * w ,t * • * * ,r ,r ,r * * r * * w * * + � * * * r r w * * * ,w ,t I. CALL TO ORDER II . MEMBERS PRESENT III . APPROVAL OF MINUTES - Minutes of July 6, 1995 Action: IV. ORAL COMMUNICATION Any person wishing to discuss any item not otherwise on the agenda may address the Committee at this point. V. OLD BUSINESS A. Status of Public and Private Partnerships Backciround Checks 1 . Sports Park 2 . Section Four 3 . U.S. Filter 4 . Housing Program Action: B. Status of Audit of Various Citv and RDA Proiects VI . NEW BUSINESS A. City and Redevelopment Aaencv Investment Schedule Rec: Review and Submit to Next City Council Agenda. Action: B. Finance Authority Bond Issuance on June 14, 1995 and Aucrust 1, 1995. Review of Investments. Agenda Investment & Finance Committee August 3, 1995 � * � � * � + � + + + + * � * * * � � � + + + + + + + * � f � * � C. Transfer of Custodian Account with Bank of America to Bank of New York. (Bank of America has Sold Their Corporate Custodian Business to Bank of New York Action: D. Reauest by Sunrise Development ot Place an Aqreement with Desert Sands Unified School District on the Next Council Aqenda ( for Purposes of Payment of School Impact Fees on Indian Ridqe Community Facility District) Rec: City Attorney Review Agreement and Forward to City Council for Ratification. VII . REPORTS AND REMARKS A. Committee Members Reports and Remarks B. Items to be Placed on Next Aqenda VTTT . ADJOURNMENT Next reqularly scheduled meeting September 7, 1995, 3 : 30 p.m. lr 2 .� ���� City of Palm Desert � Council Agenda Request Meeting of nugugt Za> �99s 1, To be considered uoder: Consent Calendar_ Resolutions Ordinanoes_ New Business_ � Old Business_ Informational Iums� Public Hearings_ Other 2. Item Title: (Please prwide the wrording that should appear as the item's tide oa tLe agenda). Investment S Finance Co�ittee Minutes fo 7 �1y 6_ 19QS Minutes were approved on Ausust 3, 1995 bv the Investment & Finanra rn,�,nirroo 3. Financial: (Complete if applicable) (a) AccounUProject# (b) Amottnt Requested (c) In the Current Budget7 (c) Appropriation Required7 Approved by Director of Finance: U`� 4. Submitted by: Lorena Armenta, Senior Office Assistant 5. Approvals: Depa�vnent Head � City Manager �--�---� • � � Minut e s . Finance Committee CONVENE On July 6, 1995, the Investment & Finance Committee was called to order at 3:38 p.m. xOLL CALL P. Gibson, C. Ortega, B. Veazie, W. Snyder, M. Rudolph(representing City Attorney), R. Diaz(Acting City Manager), L. Armenta APPROVAL OF MINUTES Upon �tion by Snyder, second by Vea�e, the Minutes of dune 1, 1995, were APPBOVSD es submitted. Motion carried unanimously. ORAL COMS�[JNICATIONS NONE OLD BUSINESS A. 3tatus of Public and Private Par�ership Back¢round Checks for Sporte Park, Sectioa 4, US PYlter and the Hous�n¢ Pro�rem No reports were givea oa aay item. The U.S. Filter and Housing Program ehould be removed from the list as Diaz requeated. NSW BUSINES3 A. Request for Auproval to Invest in Collateralized Deposits with the Best Bid Submitted on Inveatments Maturin¢ in the Month of Julv 1995 Upon motion by Snyder, second by Veazie, the Committee AUTHOxIZED the city treasurer to approve the best bid upon receipt of bida oa investments maturing in duly 1995. Motion carried unanimously. B. City and Bedevelopment ARency Inv��nt Schedule The Com►nittee reviewed the City and Redevelopment Ageney investment echedule. This will be placed on the next agenda for City Council's information. Minutes Finance Committee C. F�nance Authoritv Bond Iasuance on dune 14 1995 Review of Investments Ortega felt the finance suthority bond issuance did very well because in between the pre-pricing and escrow closing the rates did not increase. The net interest cost was ixnder six percent for the total bond deal and on the long bonds the majority did not exceed the six percent. Ortega further stated RDA has three outstanding assesament districts which are called the north sphere that need to be refinanced immediately in order to receive the lower interest rates. If the savings are three percent or greater, Redevelopment Agency will be asking the City Council to authorize Redevelopment Ag�ttcy to proceed with the refinancfng. All bond issues will be combined and done at the same time in order to save on costs. Upon Motion by Snyder, sec:ond by Veazie, the Flnance Committee approved the program as submitted by the Redevelopment Ageacy to proc�ed with the ref'inancing, and Lave present value savings ao less then three perceat. �otion c:arried unani�usly. Ortega stated Redevelopment Ageacy issued bond issues with a combination of assessment districts and house issues that need to be refinanced immediately because of the low interest rates. This needs to be taken to the Ageney Board to receine authorfzatioa to proceed with the refunding and receive present value savings. Upon Motion by Veazie, second by Snyder, the FYnance Committee appmved the program as aubmitted bp the Redevelopn�ant Ageacy to p�oceed w,ith the retYaandng, and have ao less then three percent at present value eavings. Motion carried unanimously. At the next meeting, Ortega will prepare a booklet for all members showing the final results of the finance authority bond issuance deals. 2 � Minutes Flnance Committee D. Beview and File Countv Investment Documents Received from CountS� Treasurer This report was distributed to the Committee to make them aware of the situation. According to a newspaper, the County of Rivereide has been put on watch indicating they are a greater risk for defaulting on their accounts, investments and bond issues. REPORTS AND BEMARKS A. Any Committee Members Eeport and Remarks Gibson repoMed the Investment Manager poeition has been re-advertised and the Personnel Department will conduct the interviews on September 1, 1995. B. Items to be Pl�ced on Neat A¢�enda Place on the next agenda, a portfolio of all the recent bond issues deals. NffiCT MEEfING DATE The neat Investment&Finance Comffittee will be August 3, 1995. ADdOiTRNMIIJT The Investment & Finance Committee adjourned at 4:08 p.m. Aespectfully sub[nitted, Q LORENA G. RMENTA RECORDING SECRETARY 3 ,- _. _ �� • 1 � FINAL PRICING SUMMARY �. � PALM DESERT FINANCING AUTHORITY � � $24,025,000 Tax Allocation Revenue Bonds ■ (Project Area No. 1 As Amended) ��� Series 1995 $4,090,000 Tax Allocation Revenue Bonds (Project Area No. 2) Series 1995 KINSELL, O'NEAL, NEWCOMB & DE DIOS, INC. � June 13, 1995 � ^ � TABLE OF CONTENTS � � I, Project Area No. 1, As Amended, Series 1995 � � Cover Pages Preliminary O�cial Statements 1 List of Participants 1 � � II. Project Area No. 2, As Amended, Series 1995 Cover Pages Preliminary Official Statements Z List of PaRicipants 2 � III. Preliminary Pricing Results 3 Compazable "AAA" Tax-Exempt Rated Issues 3 � IV. Final Debt Service Schedules 4 � Project Area No. 1, As Amended 4 Project Area No. 2, As Amended 4 � V. The Interest Rate Environment 5 Economic Summary 5 e i �� � �� M M � : ; M � ^ _ io�nn�a �p;{�' ItitiUIC Mumly's: Aaa Standard & Puor'r. .1AA � � (See"Ralings" hcrcin) �n dic upinio�i ofQond Cu�u�sel,w�der existing Irsir,die inrerest on d�c Donds is crempt frorn Nl:rsmml income iaces oJthe Smre of � C,Jlfnrnin m�d, nssmnu�g comVlinnce�vid�die tru cove�ian�s described liereii�, is uc(uded fi�on�gross inronre for Federa!i�imme t¢i purposes nnd is not n spec!(c prefere�ice item for purposu of J�e Federril altenmtine nrinimum rrsx. Sce, hmva�er, "CONCLUDWG N'FORb1AT/ON— 7'ru�-�umyr Smms of die Oa�ds"herebi regnrdii�g cennin od�cr rar co�u�idera(ions. � $24,025,OOU PALM DESERT FINANCING AUTHORITY TAX ALLOCATION Ii�VGNU� BONDS � (PROJ�Cl' AR�A NO. 1, AS AM�NDGD) ! S�RI�S 1995 jUated: Jw�e 1, 1995 Due: April 1,as shown on lhe inside front cover 6ereuf � The Palm Desert Financing Authority'I�x Allocation Revenue Bonds(Project Area No. 1,As Amended) Series 1995(the "Dnnds")will be issued as fully registered instruments without coupons,in the denomination of E5,000 or any mtegral multiple thereof.The principal or redemption price of each Bond will be payable upon the prosentation and surrender of such Bond,when duc or redeemed, as applicable, at the principal corporate trust office of Bank of America National Trust and Savings Association,Los Angeles,Califom�a as Irustee for the IIonds(the"'Itustee") Interest on the$onds will be payable on April 1 and October 1 of wch year (the "Interest Payment Dates"), commencing October 1, 1995, by check or draft, mailed on the 1 Inmrcst Payment Date to each Owner of the Bonds as of the Rewrd Date preceding such lnterest Payment Date, cxcept the � Trustce will,at thc writtcn reyuestpf any Owner of S1,000,000 or more in a�regate pnncipal amount of Bonds,makc payments ul'interest on wch Donds on the Interest Payment Da[e by wire transfer to the accoun[in the United States designated by such pwncr to the 77ustec in writing as described herein. See "THE BONDS — Description of the Bonds" herein. '1'he ISw�ds are subject to oplional, mandalocy sinWng fund, and extruunlinary redemptiun as described herein. The Donds will be issucd by the Palm Desert Pinancing Authority(the'Authority")under an Indenture of Tmst,dated as of lunc l, 1))5, by and between the Authority and[he Tms[ee(the"Indenture").The proceeds of the Bonds will be disbursed tu make a loan(thc"Loan")to the Palm Deser[Redevelopment Agency(the"Agency")pursuant to a Loan Agreement datcd as of Jwic 1,�1995 (the "Loan AgreemenP') by and among the Au[hority, the Agency and the Tmstee. Thc Bonds are speciai obligations of the Authority payable from and sewrod by Revenues (�s delined lierein),consisting primarily of amounts payablc by the Agency under the Loan Agreement.The Loan Agreement is sewrcd by and payable from fax Revenues,as defined herein.The Agency has outstanding,and may,pursuant to the terms of the Loan Agreement and lhe Indcnture, issue additional,obligations secured by Tax Revenues on a panty wi[h[he Loan (Ihe"Parity Debt"). Sce"SCCUR- i'fY POR TIIE DONDS" herein. Payment of principai of and interest on the Bonds when due will be insured by a municipal bond insurance policy to be issucd simult.mcously with lhe delivery of the Bonds by M[31/-1 � Thc Agcncy is to usc the procecds of the Loan[o finance certain redevelopment activitics of the Agcncy in conncclion�vilh the Agency's Project Arca No. l,As Amended(lhe"Project Area"),[o f'unJ a reserve account and to(inance wsts oF issumuc o( thc 13onds. . . Thc IIonds are not a debt of the City of Palm Desert or of the Sta[e of California or any of its poli[ical subdivisions, and ncithcr the Ciry of Palm Desert nor the State of California nor any of its political subdivisions is liablc therefor.The Loan is not a debt of the City of Palm Desert or of the State of Califomia or any of�ts political subdivisions (other than the Agency), anJ ucither the City of Palm Desert nor the State of California nor any of i[s pohtical subdivisions(other than thc Agcncy) is liablc thcrcfor. The interest on, premium, if any, and principal of the Bonds are payable from and secured by a pledge c�f certain amounts payable by the Agency to the Authority under the Loan Agreement. Neither the Bonds nor the Loan constitutcx an indc6tcdncss within thc meaning of any constiWtional or statutory debt limitation or restriction. Neither tlie members of lhc AuUiority nor uf tlic Agency nor any persons executing the Bonds or the Loan Agreement are liable personally thercon. In no cvcnt will thc obligations of the Agency under the Loan Agreement be payable out of any funds or properties other than'lax . - Rcvcnucs (as dclined herein) of[he Agency as se[ forth in the L.oan Agreemen[. Mnlurity Schedule 51,830,OOU Serial llnnds ( � N:nurily U;rte Principal [nlerest Man�dly Uxle Pdncipal hderesl l�p��� U Amom�t Rate Price Upol i) Amount Rale Price 1997 $160,000 4.40% 100% 2002 $205,000 5.05°Jo 100% , 199H 170,OOU 4.65 100 2003 235,OIX1 5.10 100 i 1)99 180,000 4.75 100 2(104 245,000 5.15 l0U � I 2000 185,000 4.85 l0U 2005 255,000 520 100 2001 195,000 4.95 100 $15,075,000 595% Special Term ISonds Due Aprii 1, 2024 — Price 1011% - $7,120,000 5.859a'l'crm Ilunds Uuc April 1, 2025 — Price 100% �he Oonds nrc offered wlien, ��s aid if issued and accepled 6y die Unrlenwi�er, .rubjec��o lhe npprovnl as to legnliry Gy Ridia�zls, II n�son di Ger.rhon,il l'rofessinnu/Co�porutio�i,LosAnge/es, Cnlifarnia,Boiid Co«nsel.Certnin(egn(mnt�ers wif[Ge pnsscd on ford�c Undrnrriicr G�� Mudgc�Rose Cuthric fl(umider& Perdai, Las Angeles, Califnntia, �nd for rhe Authoriry by Ridinrds, IYnlso�� & .� �:crshori. /t is nnricipnred Jmt d�c Oa�ds ivill be avai(nble for dclivery o�� or nbout ha�e 14, 1995. KINS�LL, O'N�AL, N�WCOMB & D� DIOS, INC. � 'I'hc datc uF this Ol'licial Statcmcnt is Junc 5, l)95. PALM DESERT FINANCING AUTHORITY � PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT AUTHORITY COMMISSION Buford Crites, President Walter H. Snyder, Vice-Presider:t Richard S. Kelly, Comrnissioner Jean M. Benson, Commissioner Robert A. Spiegel, Commissioner CITY COUNCIL/AGENCY MEMBERS Buford Crites, Mayor/CHairman Walter H. Snyder, Mayor Pro-TemNice Chairrriai Richard S. Keliy, Councilmember/Member Jean M. Benson, Councilmember/Member Robert A. Spiegel, Councilmember/Member � ' � AGENCY STAFF Carlos L. Ortega, Fxecutive Director Paul Gibson, Treasurer Sheila R. Gilligan, Secretary Dave Yrigoyen, Senior Administrative Assistant Teresa L. La Rocca, Housing Program Director Dennis M. Coleman, Analyst SPECIAL SERVICES Bond Counsel Richards, Watson & Gershon, A Professional Corporation Los Angeles, California Trustee Bank of America National Trust and Savings Association Los Angeles, Califomia Fiscal Consultant Rosenow Spevacek Group, lnc. Santa Ana, California i s �IiN� 1»l 1•. Standnrvl & 1'uur's: AAA � ^ (See "Rntings" hcrcin) I ln rhr u��in�un u�Uond Counsel, under eristi��g(a�v,dte i�iterest o��the Bonds is erempt fram perso�ml i�itame mscs o �ic turc ��l Gd�G,nu�i und. ass�uning co�npliunce witl�die tax eovenarits described Aerein.is rxduded front gross income for Federa(inco�nc � r,u�,uq,nsrs,uid is��or u specificVrefe�ence itcu�for pnq�oses of die Federu!ulternative mininwnt�ar. See, homerer, "CONCLUD- � l.\'G l.\'FOR.11:�TION— Tiu Alnrters"he�ei�� regardu�g ceRni�i other tax tonsidern(ions. � $4,0I0,000 ( PALM D�S�RT I�'INANCING AUTHORITY TAX ALLOCATION Ii�VENU� BONDS � (PROJECT AREA NO. 2) ( S�RI�S i')95 � I D•rlcd: Junc I, 1Y95 Uur. Angust 1, os shnwn bcloa' l The IIonds will be issued as fully registered bonds without coupons,in the denomination of$5,000 or any integral multiplc ,} thcrcoL The principal or rodemption price of each Bond will be payable upon the presentation and surrender of such Bond, whcn duc or redeemed,as applicable, at the principal corporate trus[office of Bank of America National Trust and Savings � Assuciation, Los Angeles, Cahfomia as trustee for thc Bonds (thc "Trustec"): Interest on the Bonds will be payable on Ccbruary 1 and August 1 of each year(the"In[erest Payment Dates"),commencmg August 1, 1995,by check or dratt,maiicd on the lntcrest Payment Date to each Owner of the Bonds as of the Record Date preceding such Intwest Paymcnt Datc, cxcept thc Trustee will, at tlie written request of any Owner of S1,000,000 or more in a�regatc principal amount of Bonds, make payments of interest on such Bonds on the Interest Payment Datc by wire transfer to the account in the Unitcd Statcs � designutcd by such Owner ro thc 'IYustce in writing as describcd herein. See "THE BONDS — Description oF thc Bondx" herem. � The llonds are subject to optiunal, mandatory sinking fund, and extraordinary redemption as described I�erein. The Bonds will be issued by the Palm Desert Financing Authority(the'?.uthority")under an Indenture of Trust,Jatcd as of June 1, 1995,by and be[ween the Authority and the Tlustee(the"Indenture").The proceeds of the Bonds will bc disbursed • ro make a loan(the"Load')to the Palm Desert Redevelopment Agency(the:4gency")pursuant to a Loan Agrccment dated � as of June 1, 1995 (the "Loan AgreemenP') by and among the Authonty, the Agency and the ltustee. The Bonds are special obligations of the Authority payable from and secured by Revenues as defined hercin consisting , primarily of amounts payable by the Agency under the I.oan Agreement.The Loan Agreement is secured by and payable[mm T.vc Revcnues,as defined herein.The Agency has outstanding,and may,pursuant to the terms of the Loan Agrcement and thc Indcnture,issue additional obligations secured by Tax Revenucs on a panty with the Loan(the"Parity Dcbt").Scc"S6CUR- 11'Y FOR THE BONDS" herein. � Payment of principal of and interest on the Bonds when due wi11 be insured by a municipal bond insurancc policy to bc t issued simuitaneously witli the delivery of the Bonds by � MC31�1 � Thc Agcncy is to usc the procecds of the Loan to finance certain redcvelupment activities of the Agcncy in cunncction � .vith thc Agency's Project Area No. 2, fund a reserve accoun[ and finance costs of issuance of thc IIonds. The I3onds are not a debt of the City of Palm Desert or of the State of California or any of its political subdivisions, and F ncitl�er the City of Palm Desert nor the State of California nor any of its political subdivisions is liable therefoc'fhc Loan is � not a debt of the City of Palm Desert or of the State of California or any of its political subdivisions(other than the Agency), and ncithcr[he City of Palm Desert nor the State of California nor any of its pohtical subdivisions(olher than the Agency) is liable therefor. The interest on, premium, if any, and principal of the Bonds are payable from and secured by a plcdgc o( � ccrtain amounts payable by the Agency to the Authonty under the Loan Agreement. Neither thc Bonds nor thc Loan constitutcs an indebtcdness within the meaning of any wnstitutional or statutory debt limitation or res[riction. Ncithcr thc � mcmbcrs of[hc Authority nor of[he Agency nor any persons executing the IIonds or the L.oan Agreement are liablc personally thcrcon. tn no cvcnt will tho obligations of the Agency under the Loan Agreement be payable out of any funds or propertics � othcr thau 7ax Rcvcnues (as defined herein) of the Agency as set forth in the Loan Agreement. Maturity Schedule I — $220,000 Serial Bonds I �inturily Dnle Pdncipel Inlertst A1aturi�y Uale P1'Incipel Inleresl � ; IAugust q Amount Rate Pdce (Augusl q Amount Itnle 1'rice 1999 $25,000 4.75% 100% 2003 $35,000 S.lU% 100% 200U 30,000 4.85 100 2004 35,000 5.15 100 � 2001 3Q000 4.95 100 2005 35,000 5.2U 100 2002 30,U00 5.05 100 $2,490,000 5.9590 Special Term Bunds llue August 1, 2U24— Price 100% 51,380,000 5.85%Term Bonds Due Ausust 1, 2025 — Price 100% � The Bonds are offered when,as and if issued and accepted by the Underwriter,subject to the approval as to(egnliry Gy RicLm•ds, Ilfusoi�&Cnshon,A('rofessional Corpora�ion, LosAngeles, Califomia,I3ond Counse[. Cenain legnl matters�vi!!be pas.ted on jor thc Undcnvrircr Gy h4udge Rose C,uthrie Alrxander&Ferdon, Los Angeles, Cnlifornia, and for die A�uhoriry by Richnrds, Wiu.son& � Gecr/mn. !t is an�icipated thar tlie Ilonds wi!!be available for delivery a� or about hute 14, /995. KINS�LL, O'N�AL, N�WCOMB & D� DIOS, INC. Thc datc of this Of(icial Statcmcnl is Junc 5, 1995. � _ PALM DESERT FINANCING AUTHORITY � � PALM DGSCRT REDEVELOPM�NT AG�NCY CITY OF PALM DESERT � AUTHORITI' COMMISSION � Buford Crites, Presideiu Waiter H. Snyder, Vfce-President Richard S. Kelly, Commissiaier Jean M. Benson, Comrnissioner Robert A. Spiegel, Commissioner CITY COUNCIL/AGENCY MEMBERS Buford Crites, Mayor/Chaimm� Walter H. Snyder, Mayor Pro-TemNice Chairman Richard S, Kelly, Councilmember/Member Jean M. Benson, Councilmember/Member Robert A. Spiegel, Councilmember/Member AGENCY STAFF Carlos L. Ortega, Fxecutive Direcror Paul Gibson, Treasurer Sheila R. Gilligan, Secretary Dave Yrigoyen, Senior Administrative Assistant Teresa L. La Rocca, Housing Program Director Dennis M. Coleman, Analyst SPECIAL SERVICES Bond Counsel Richards, Watson & Gershon, A Professional Corporation Los Angeles, California Trustee Bank of America National Trust and Savings Association Los Angeles, California Fiscal Consultant Rosenow Spevacek Group, Inc. Santa Ana, Califomia 4 ' � ^ _ � PALM DESERT FINANCING AUTHORITY Comparable "AAA" Rated Tax Exempt Issues � Dlaturit .Issner !s er Issner Is �er Issuer 1 suer Is uer S65,p00,000 524,415,000 I26,970,75�.25 S2,200,000 14,950,000 Palm Desert Palm Desert CA. Heallh Eacondido IT Pacondido 7T Reedley San Diego RDA RDA � Facilitiu Ser Powen Auth. Powers Auth. PubGc Redev. Agency- (Tax Exempt) (Tex Exempt) p Finence Aulh. Mount- Project Area Project Ard No. 1 No.2 Coupon Coupon Yield Coupon Yield Coupon Coupon Yield Coupon reld Coupon � Yield Yield Yetd 1996 4.5 435 4.40 1997 4.70 4.55 4.60 0.40 1998 4.80 4.75 4.75 4.9000 4.65 1999 4.90 4.90 4.90 S.ppp 4.75 4.75 2000 5 5.05 5 5.100 4.85 4.85 �001 5.125 5.15 5.15 5.200 4.95 4.95 2002 5.25 5.20 5.20 5.300 5.05 5.05 2003 530 5.500 5.25 5.40 5.450 5.10 5.10 2004 5.600 5.35 5.50 5.15 5.15 2005 5.700 5.45 5.60 5.20 5.20 2006 5.60 5.700 5.800 5.70 2007 5.75 5.70 5.800 6.000 5.80 5.85 2008 5.80 5.900 6.200 5.85 2009 5.875 5.80 5.950 6.350 5.90 6.050 2010 5.90 6.000 6.450 5.95 2011 6.500 6 2012 6.550 2013 6.550 2014 6.600 2015 5.75 6.600 6.05 6.210 6.150 2016 6.650 2017 6.650 2018 6 6.200 6.650 2019 5.875 6.050 2020 2021 2022 2023 2024 5.95 5.95 5.95 2a25 5.85 5.85 5.90 Total 51,512,646 5874,989.73 5133,716 383,75733 300,312.50 51,125 Diccount (Includes (Includea OID) (No OID) (Includes OID) (No OID) (No OID) OID) 1.70% 6.07896 1.6990 1.2590 1.2590 233% � :t Palm Desert Financinq Authority � Tax Allocation Bonds, � IProject Area No. 1) Series A Tax Bxem t DBBT SBR�ICB SC9BDBL8 i DATS PRINCIPAL COOPON INTBR6ST TOTAL P+I � 9�01�1996 - - 1,169,897.92 1,169,897.92 4�01�1998 170,000.00 9.6501 1,396,177.50 1,566,777.50 � 4I01�1999 180,000.00 4.750t 1,388,872.50 1,568,872.50 9�D1/1000 185,000.00 9.850t 1,380,322.50 1,965,321.50 4�D1I2001 195,000.00 9.9544 1,371,350.00 1,566,350.00 4�01�2002 205,000.00 S.OSOt 1,361,697.50 1,566,697.50 4�01�2003 235,000,00 S,100t 1,351,345.00 1,586,395.00 � 4�01�2004 295,000.00 5.1506 1,339,36D.00 1,589,360.00 4�01�2005 255,000.00 S.20Dt 1,326,742.§0 1,581,792.50 4I0112006 640,000.00 5.930t 1,313,462.50 1,953,482.50 1�01�2007 675,000.00 5.921} 1,275,532.50 1,950,532.50 � 4�01�2008 120,000.00 5.9234 1,235,525.00 1,9SS,52S.0� ��01�2009 760,000.00 5.9241 1,192,880.00 1,952,880.00 410112010 800,000.00 5.9241 1,147,855.00 1,941,855.00 4�D1�2011 850,000.00 5.912t 1,100,460.00 1,950,160.00 � 4�01�2012 900,000.00 5.921t 1,050,125.00 1,950,125.00 4�O1I2013 955,OD0.00 5.9234 996,835.0� 1,951,835.00 4�01�2019 1,010,000.00 5.922t 940,272.50 1,950,272.50 ;� 4�0112�15 1,010,000.00 5.9201 880,462.50 1,950,962.50 • 4�01�2016 1,135,000.00 5.925t 811,117.50 1,952,117.SD 4�01�2017 1,205,000.00 5.9211 749,610.00 1,951,870,00 410112018 1,275,000.00 5.920t 678,522.50 1,953,522.50 4�01�2D19 1,350,000.00 5.918t 603,040.00 1,953,090.00 i 4�01�2010 1,430,000.0� 5.916t 523,145.00 1,993,1�5,00 4IO1�Z011 1,515,000.00 5.918t 436,540.00 1,953,5�0.00 4�0111022 1,605,000.00 5.918t 346,882.50 1,953,882.SD 4�01�2023 1,700,000.00 5.919t 253,900.00 1,953,900.00 4I01�2025 1�800;000,00 5.850t 196;BOO.OD 1�816;600.00 TOTAL 29,025,000.00 - 29,236,655.42 53,261,655.42 YI86D STATISTICS Accrued Interest from 06�01/1995 to 06�14/1995.... SU,693.41 Bond Year pollars................................. 5495,613.83 Average Life...................................... 20.640 Years Average Coupon.................................... 5.8959630t Net Interes[ Cost (NIC�........................... 5.9S6S250t True Interest Cost ITICI ...............�.......... 5.9982641t Bond Yield for Arbitrage Purposes................. 6.04516451 All Inclusive Cost (AIC�.......................... 6.22393261 IRS PORM 8038 Net Interest Cost................................. 5.8857399t Neighted Average Maturity......................... 20.690 Years � inse , � ea , evcom a e �os= • - eries � , i- er. Investment Banking 7 19�1995 0:1� AN � � � � � I . � � Palm Desert Pinancing Authority Tax Allocation Bonds, � �Project Area No. 1) Series A, Tax Bxempt PRICING SDMMARY � MATORITY TYPB OF BOND COOPON YISLD ISSDANCB V110& PAR MATDRITY VALOB PRICB DOLLAR PRICB 1�01�1991 S8RIA1 COOPON 1.10Df 4.397t 160,000.00 100.000t 160,000.00 100.0001 160,000.00 1�01�1998 S6RIAL COUPON 1,650t 4.648t 110,000.00 100.0001 110,000.00 100.000! 170,000,00 /�01�1999 S6RIAL COOPON 4.750t 4.718t 180,000.00 100.000t 180,000.00 100.0001 180,000.00 � 9IOlI20U0 SBRIAL COOPON �.850t 4.BIBt 185,000.00 100.0004 185,000.00 100.000t 185,000.00 9�01�2D01 SBRIAL COOPON 4.9SOt 4.949t 195,000.00 100.000t 195,000.00 100.000t 195,000.00 4I01�2002 SBRIAL COOPON S.OSOt 5.019t PO5,000.00 100.000t 205,000.00 100.000t 205,000.00 9�01�2004 SB&IAL COOPON 5.150t S.i19t 245;000.00 100.000t 2lS,OD0.00 100.000! 215,000.00 � 9�01�2UD5 SBRIAL COUPON 5.200t 5.199t 255,D00.00 100.000t 255,000.00 100.000t 255,000.00 4�01�2029 TBRM 1 COUPON 5.950k 5.949! 15,075,000.00 100.000t 15,015,000.00 100.000t 15,075,000.00 4�01�2025 TBRM 2 COUPON 5.850t 5.819t 7,170,000.00 100.000t 1,120,000.00 100.000t 7,120,000.00 � TOTAL • - 21,025,OOU.UO - 24,025,000.00 - 24,025,000.00 BID INFORMATION Par Anount of Bonds............................... g29,025,000.00 Gross Production $24,025,000.00 Total Oaderrriter�s Discount (1.750t1............ (3D0,312.50) �,, Bid 23,721,687.50 Accrued Interest from 06101/1995 to 06I14/1995..,. 50,693.41 Total PurcGase Price 523,775,380.91 ' Bond Year,Dollars................................. �495 815.83 Average Life...................................... 0,6;0 Years Average Coupoa.................................... 5.8959630! � Net Interest Cost INICI....::::::::::::::::::::::: 5.9565250t True Interest Cost �TICI . 5.9982644t Premium CAB �Stated Yield'........................ � iase , 'Nea , evcom 6 DeDios = - eries 6 , 1- er. Investment Baakinq 7 19�1995 0:1� AM .� � � r � , r � � - � � Palm Desert Financing Aut6ority � Tax Allocation Bonds, IProject Area No. 2) Series 1995 A Tax 6xeapt D6BT SFRVIC§ SC86D016 � DATB PRINCIPAL CODPON INTBRBST TOTA1 F+I 4�01�1996 199,945.83 199,945.83 1/O1J1997 - - �39,936.00 239,935.00 � 4/01/1998 - - 239,935.00 239,935.00 4�U1/1999 25,OD0.00 9,75D1 239,935.00 269,935.00 9�01�2001 30;000.00 1.9SOt 237;292.50 261;291.SD 9I01�2002 30,000.00 5.050t 135,807.50 265,B07.S0 � 4�01�2003 35,DDD.00 5.1001 239,292.50 269,292.50 ��01�2004 35,000.00 5.150t 2J2,507.50 267,507.50 4�01�2005 3S,OOO.OD 5.200t 230,105.00 265,705.00 4�01�1006 115,000.00 5.9201 128,885.00 343,885.00 � 4�01�2007 110,000.00 5.917t 222,077.50 312,071.50 9�O1�Z00 135;000.00 5.911t 207;580.00 317;580.00 4�01�2010 145,D00.00 5.916� 199,592.SD 311,592.50 4/O1I2011 150,000.00 5.913t 191,O15.U0 3�1,015.00 � 4�01%2D13 110;000.00 5.9154 177;680,00 312;680.00 4I01�7014 180,000.00 5.911f 16Y,625.00 312,625.00 lI01�2015 190,000.00 5.9161 151,915.00 341,916.00 � 4�01�2016 200,000.00 5.918t 1l0,735.00 I10,135.00 ��01�2017 215,D00.00 5.920t 128,900.00 3�3,900.00 4�01�2018 225,000.00 5.9Z1t 116,172.SD 311,172.50 4�01/2019 240,000.00 5.921t 102,850.00 312,85U.00 9�01�2020 250,000.00 5.918t 88,640.00 338,640.00 � 4�01�2021 250,000.00 5.9181 73,845.00 323,815.00 4�01�2022 280,000.00 5.9141 59,050.00 339,050.00 4�OII2023 285,000.00 5.913t 42,490,OD 127,990.00 4�O1I202S 130;000:00 5.850t 27;605.00 137;605.00 � TOTAL 4,090,000.0� - 5,098,580,83 9,138,580.83 � YIBID STATISTICS Accrued Iaterest from 06�01�1995 to 06�14/1995.... 8,664.32 Bond Year pollars................................. $BS 598.33 � Average Life...................................... 20.9�9 Years Average Coupon.................................... 5.8979896t Net In[erest Cost (NIC1.......... 5.9571163t 4rue Intecest Cost ITICI•......................... 6.OD118074 � Bond Yield for Arbitra9e Purposes........::::::::: 6.04870051 All Inclusive Cost (AIC1................. 6.4231232t IRS FORN 6038 � Net Interest Cost................................. 5.8878676t Aeighted Average Ma[urity......................... 20.929 Years Rinse , ' ea , Newcoe E eDios - rea , eries - @ries r scrow Inves[ment Banking 7 19/1995 :16 AM � � � � � - _ � � � I Paln Desert Financing Aut6arity Taz Allocation Sonda, �Project Area No. 2) Series 1995 'A Tax 8xenpt PRICING �OMMARY MATURITY TYPS OF BOND COUPON YIBLD ISSOANCB VALOB PAR NATORITY VAL08 PRICB DOLLAR PRICB 4�01(200D SBRIAI COOPON 4,8SOt 4,8481 30;000,00 100.0UUt 30;000:00 100.000t 30,DU0,00 4�01�2001 SHRIAL COOPON 4.950t 9.919t 30,OD0.00 100.000t 30,000.00 100.000t 30,000.00 4�01�2002 SBRIAL COOPON S.OSOt 5.049t 30,000.00 100.000t 30,000.00 1D0.0001 30,000.00 4�O11Z003 SBRIAL COOPON 5.1001 5.099t 35,000,00 100.000t 35,OOO.UO 100.000t 35,000.00 � 9�01�2004 SBAIAL COOPON 5.150t 5.119t 35,000.00 100.000t 35,000.00 100.000t 35,OD0.00 9�01�2005 SBRIAL COOPON 5.200t 5.199t 35,000.00 100,0001 35,000.00 100.000t 35,000.00 9�01�2025 TBRM 2 COOPON 5.850t 5,8�94 1;380,000.00 100.000t 1;360,D00,00 100.000k 1,380,000.00 I TOTAL - - 4,090,000.00 • 4,090,000.00 - 4,090,000.00 � BID INFORMATION Par Aeount of Bonds............................... �,090,000.00 � 6ross Production 9,090,000.00 Total Underrriter's Discount (1.25011............ 151,125.001 Bid 4,038,875.00 � Accrued Interest from 06/01�1995 to 06�14�1995.... 8,664.32 Total Purchase Price $4,011,539.32 Bond Year pollare................................. $8S 598.33 � Average Life...................................... 20.9§9 Years Average Coupon.................................... 5.8919896t Net Iaterest Cost INICI........................... 5.9577163t � True Interest Cost ITICl.........................: 6.00118U7t Premium CAB 'Stated Yield'....................... - inse , 'Nea ewcom 6 e ios - - rea , enes • Gnes r scror Investment Banking 7 19/1995 :16 AM � � � � � � r � ECONOMIC SUMMARY The municipal market has continued to improve over the last several weeks as bond prices have moved � higher, pushing yields down and translating into lower borrowing cosu to municipal bond issuers. Higher bond prices are being fueled by the consensus that the Fecleral Reserve is planning to lower � interest rates in the coming weeks in response to market indicators showing that the economy is continuing to slow down. N � All this is good news for municipal issuers who are now experiencing increased buyer demand as a result � of decreases in the supply of new issues coming to market. 7'he demand is furthered by no-uaditional � buyers, previously investec! in mutual tunds, entering the municipal market as they once again view tax exempt bonds as an investment heclge against a slowing economy. � � The following graph shows increased price movement (downward interest rate yields) on the 30-year � Treasury Bond over the last month. � � � Z DG04 Govt C 1 5 ENTER ALl VALUES AND HIT <GO>. � + HISTORICAL YIELDMTCRANRG�E � �E 1 OF 2 � DATE RANGE � � _.Y.^.---•--r r.so —w�- f✓O1i93 "'� _'p. S/Ot/9S � �.�.-._ -...... •_ � �.�. . . ,._:. � .r:�:-..... . . .... ... . . . .... . ... ....... . .. . .... . . . . . 7.00 , i . . �.0' !�' ... . . ... . . ..... . ........ . �--^-�"'r--^-"!` 6.so � D ��.�� : . . .: .... .. .. .... R._ ' .... . . . . ..... ...... . . ... . . . . .... . . .... .. .... . •-••• • • . . . c.ao � � . : • j_._• � a ; : : : : : . .... . . . .... . . .... . . ...... . .. . ..... . . . . . ... .. o0 Pn � � . . . ... . ..... .. � • .... . . . .... .. . . .-.. . ... . . . . . ..� -.70 I + D . . ��.. ... . . .. . .�......... ...... . . � _ -1.00 i 91oaxMrq-etl riryhfs r�r�rwd. FraJfhrl�69-9R04f0 t�q Korq•E-3'dt-3000 London�l7l-Yi0-7S00 Nneyr YarK�ztP��NtB-2a00 � vrtroNon�GD9•�2'9-3U00 8tnqdporo�226-3U00 BV�Y�2-T7-i600 Ttltyo�3-3201-A900l1033-t3�6-�-21D1-J�ur-m95 f2 39+�12 / � � � i.+'�-� 5 . *. .. � a�': -��.� r F *'> 4 d L 'M Y �.. � �fiFt �:�Y a a �� � v -�"',X'^x'j. ��r�.7:'�°`} h '" � ,.. �;, ��F1. .kt d; �� -p r ;;.r . _ k � � � i. 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Securities Processing Services � Service Overview Product Offerings � � III. Specialized Services for Public Funds Service Overviews � Detailed Product Information ~ IV. Service Directory N � r THE BANK wOF � YORK � i _ _ - ; The Bank of New York Company � Founded in 1784, The Bank of New York Company, Inc. is the sixteenth largest bank holding ' company in the Uniud States with total assets in excess of$52 billion. The Company provides a complete range of banking and other fmancial services to corporauons and individuals worldwide ' through its six core business. We are proud to have delivemd uninter►vpted services to our clients and continuous dividends to our shareholders for more than 200 years. . The Banlc of New York,the Company's principal subsidiary,continues to demonstrate its financial strength and commitment to its stated business objectives as evidenced by our record growth and significant accomplishments. � Financial Highlights— 1994 and lst Quarte�1995 • NOI — Net Operaring Ineome rose 34% to$749 million in 1994. First quarter 1995 NOI showed an increase of 20% over the same period last year. • ROA— Return on Average Assets inereased from 1.20% in 1993 to 1.49% in 1994. First quarter 1995 set a record at 1.65Wo ROA. • ROE-- Return on Average Common Equity increased to 18.49% in 1994. First Quarter 1995 ROE grew to 19.98%. • EPS — Earnings per Common Share inereased from$2.72 in 1993 to$3.70 in 1994. First quazter 1995 EPS represented a 22%increase over First quarter 1994. Credit Ratings The Bank of New York Company, Inc. -- lst Quarter 1995 Standard &Poors Mood 's Commercial Paper A1 Pi Senior Unsecured Debt A A2 Subordinated Debt A- A3 Preferred Stock BBB+ A2 The Bank of New York -- lst Quarter 1995 Standard &Poors Mood 's Thomson BankWatch Short Term Deposits A1 PI Long Term Deposits A+ Al Senior Unsecured Debt A+ A1 ; Short Term Rating TWB-1 Section I - The Bank ojNew York � _ _ � � Six Core Businesses The Bank of New York offers assorted banking and financisl services to corpoiations, instiwcions and individuals through our s'vc core businesses. • Securttita and Other Procesaing Businesser provide custody and related services to institutional issucrs and investois including benks, inaurance companies, mutual funds,corpoia6ons,charities and govemment agencies. • Trust, Invesdrunt Mariagement and Privatt Bairaring Buainesses serve lrigh inwme domesdc and offshore institutions and high net-worth individuals and business owners. • Corporate Banking Busiivas provides credit-related services to domesdc and multina6onal corporadons s11d institutions. • Financial Market Services Busintsses �rovide services to mutual funds, financial instimtions,corporations and individual mvestors. • Credit Card Business serves the individual,cocporations and AFL,-CIO members. • Retail Banking Business serves individuals, professionals, small businesaes and municipalities. Each business line's contribution to revenuo is illustrated below. Additional information on each of the preceding businesses is provided on the following two pages. Core Businesses' Contribution to Revenue as ojl2/3l/94 Credit Cards 22.0% � Finandel Market Servioes 13.D96 Trust, Imi.Mgmt and Retail Banldrg 73.096 PrNate Benking s'� a , � :� i•:; � Securfties and Other p0.0% " , ;. , Processing Caporate Benldng 26.0% � � � � Section I - Tht Bank of New York A. _� _ � Six Core Businesses ■ The Bank of New York Company �� �oll�iro� � Services end Products 1994 Accom lis6meob Statladcal Intormation SecuriHes aod Other • Master Trust/Master • Cocporau tust acquisirions • Leader in ADR busicross Proceasing Custody added 2,200 new trust with 5496 of the public � • Instimtional Custody appointrnents sponsored market • Securities Lending • Cash Management • Established first Korean • #2 provider of Mutual . American Depositary depusitary receipt program Funds Custody � Receipts • Stock Transfer + • Workstation software • Over S 1.6 trillion in • Mutual Funds Custody ��ved 1994 Miaosofr esscts under custody � • Unit Investment Trust award for financial • Government Securities innovation . Over E200 billion daily Clearance funds transfer volume � • Funds Transfw . qmon 5 domcsdc • Trade Finance g� issuers of letters of credit � Credit Cards • Consumer Edge • Added 12 million new • Among top ten bank • Union Privilege cardholders issuers of credit cards � MasurCard • Affiniry Cards • Ouutandings grew 24% • Leader in the'7ow • MasterCard reWno annual fx" • VISA • Introduced The Bank of mazket ugment � New York MasurCard Business Card for small • Largest single affinity businesses card program in the " country � • Ova 57.7 billion in , managed outstanding � Corporate Banking • Special Industries • Acted as agent or co-agent • I�rgest lender and Banking in 187 broadly syndicaud acranger of bank loans to � • U.S.Commercial loan vansactions the Media and g��g Communications • International Senking • Reduced non-performing industries � x • Syndications and Loan �oans by more than 5200 g�a million or 44% • Damestic factored • Fac[oring volume reached S12 � • Commercial Finance • Op�ned reprosentative billion . ���g offices in Moscow and Shanghai • Ranked 4th among the top 20 arrangers of bank � loans to the Udliry Industry � � Section I - The Bonk of New York � _ _ � Six Core Businesses The Bank of New York Company � as of 12C31/94 Services aad PraduMs 1990 Accom lishments Sta�cal Wormatioe � Retatl Baniting • Deposit,Lending and • Ope�d 55 Personal • Largut suburban New Cash Management Invesanent Centers York City branch network servicu for individuals, throughout the brench � professionals and smell network . 379 Total branches: businesses,municipalities and middle market • Introduced Group New York - 274 companies Banking product with Branches in 11 counties � special banking services • Trade Finance for stnaN for employees of small New Jersry - 105 and mid-siu companies businesses and middle branches in 73 counties � market companies • Residential&Multi- • Over 1 million individual family Mortgages small business,municipal and middle market � • IndividualInvesunent customers Products � Trust,investment • FinancialPlanning • Launchedintegrated • Instimtionalasseu under Manrgement and � �vestment Management customer informauon management of$14 Private Banking management system billion • Ta�c-exempt Bond � Management . Introduced PortfolioLink, • Personal assets under • BNY Hamilton Funds 8 new line of credit linked management of S12 to wstody and investrnent billion • Trusi/Estate Settlement management accounts � Income Tax Preparation • Over Sl l billion in � • Introduced Small Cap custodized assets under • Real Estate Menagement Indez Fund administradon � • Domestic&Inurnational Private Bankin � Finaocial Market . Forcign Exchange • Conservative interest ram • Market maker in world's Servicea Trading hedging strategy reduced major trading currencies the impact of rising � Full-smices • Inmrest Rate and interost rates on net �keddealer and � Currency Risk margins Management products underwriter of general • Volume of forcign abligation tax-exempt • Municipal Securities exchange transactions ��ties,principally in � brokeddealer and executed on behalf of ��New York tri-state underwriter Securities end Other � Processing customers • ?A-hour:trading capebility � increased 4096 through our offices in New York,London, Tokyo,Frankfirct,Hong � Kong,Seoul and Taipei � � Seetios/ - The Bank of N�w York � _ � Securities Processing Services � The Bank of New York offers a more compleu range of securities processing and operating services than any other bank. Our long-term commitment to this business, N coupled with superior technological resources, enables us to fulfill virtually any client's needs. We have consistently invested in the technology necessary to impmve our processing efficiency and accommodau incremental volume. Today, � The Bank of New York settles, safekeeps and services over $1.6 trillion in assets for over 2,000 clients. � ❑ The Bank of New York is a market leader in the following securities processing services: • Master Trustee/Master Custodian � • Worldwide Custody • U.S. Government Clearance Agent • Mutual Funds Services Agent � • ADR Depositary ❑ The Bank of New York ranks among the industry leaders in the following value-added services: � � Domestic and Internadonal Securities Lending • Foreign Exchange ' • Funds Transfer � ❑ 1'he Bank of New York's relational database architecture and operations structure curnnfly supports the following volumes: • 400,000 issues held ' • 44,250 trades averaging$500 billion settled daily • $63 billion of income posted monthly • 190,000 positions at DTC ' • 61,000 pools at PTC • 29,000 positions cleared through FRB ' O Our WindowsTM-based Workstation won the "Finance" categozy of the Windows World Open competition in May 1994. This Workstation allows you ta ' • review and inquire about portfolio activity • monitor cash movement ' • perform "what-if' portfolio scenarios • download data into other applications for ad-hoc reports and data manipulation • communicate trade instructions for settlement 1 I ' Section/I - Securities Processing Services � _ _ � Product Offerings � The following is an overview of our securities processing services prior to the BankAmerica acquisition Please reference Section III for a detailed description of our specialized services for Public Funds. � • Worldwide Master Trust/Master Custody We are one of the top providers of Master TrusUMaster Custody services with 573 ciients and assets of $322 billion. Our services � include the clearing, settlement and administration of client asseu, multicurrency cash management, multicumency portfolio accounting, plan accounting, on-line inquiry and communication, tailored � reporting, benefit disbursements, performance measurement, portfolio analytics,performance cqdtsulting and investment consuldng. • Instrtutiona!Custody � We aze one of the largest institutional custodians in the U.S., with over $459 billion of assets in safekeeping for 391 clients. Our services include the clearing, settlement, reporting and administration of assets, � income collection,corporate action processing, proxy management and on-line inquiry/communication. • Mutua!Funds ; ' With a market share surpassing 159fo, The Bank of New York is one of the industry's largest providers of mutual fund services. Over the last five yeazs, we have more than doubled our total assets under custody 1 to $312 billion. We provide custody, fund accounting, cash management and fund administration services to fund sponsors of open and closed-end funds. We also provide dividend reinvestment 1 programs to closed-end funds. • Unit Investment Trust � I The Bank is positioned as the leading trustee in the industry with more ' than 4,300 trusts valued in excess of $24 billion. We work with a network of broker/dealers who act as sponsors for the trusts. Our I service includes portfolio administralion, custody and shareholder relations. ; I • Global Cuctody We are a leader in Global Custody services with $150 billion of i crossborder assets. Our worldwide settlemeat network encompasses ! I54 markets. Services include the clearing and safekeeping of assets, on-line inquiry and communications, muldcurrency reporting, income collecGon and cash management, foreiga exchange, tax reclamations, performance measurement, corporate accion processiag and proxy services. � Section I/ - Securities Processing Services � � ^ _ � Product Offerings (cont'd) � • Government Securities Clearance We are the largost clearing agent bank for U.S. Govemment Securiues, clearing over$430 billion daily. � • Worldwide Securities Lending T'he Bank opentes one of the lugest securities lending pmgrams by any agent bank in the world. We lend in 22 mazkets and our daily � loans outstanding average $23 billion. Our services include loan solicitation, negotiation of terms, transaction settlement, loan administration, credit analysis of borrowers, and on-line instructing � and reporting capabilities� • Corporate Trust The Bank is a leading intemational corporate hvst bank represendng � 23,000 issues with over $300 billion in outstanding debt. We support every known type of debt instrument. Our services include: Escrow and/or Collateral Agent, Owner Trustee, Registrar and/or Paying � Agent, Conversion, Warrant and Solicitation Agent, as well as Indenture and/or Defeasance Trusue. • American Depositary Receipts (ADRs) � The Bank is the world's leading depositary bank with 60�0 of new public-sponsored appointments over the last three years. We are the leader in issuance, clearing and pre-release facilities. We issue ADRs � for more than 850 non-U.S. companies in over 40 countries which include many of the most actively traded sponsored ADR prograzns. • Stock Transfer � The Bank is one of the top four providers of Transfer Agency Services, servicing over 7.5 million shareowner accounts. We are the only stock transfer agent to offer a full range of transfer services from private � label to remote processing as well as full service programs. Services include: Transfer Agent/Registrar, Dividend Disbursing Agent, Dividend Reinvestment Agent, Stock Option Adminisuation and � Corporate Reorganization. • BNY Brokerage,Inc. BNY Brokerage, Inc. offe� Instimtional Trade Execution, � Commission Recapture and Portfolio Liquidation services to The Bank of New York's Securities Processing customers. BNY Brokerage, Inc. competes successfully with the lazgest brokerage houses in the � business to perform large-block equity trade executions for several Fortune 500 and leading multinational companies. � � ' ' Section I/ - Stcurities Processing Services Specialized Services for Public Funds The Bank of New York has provided trust services since 1922. Our expectise includes servicing the rotirement and operating accounts of local and state municipalities (i.e., employees' funds and stau treasurer o�ces). We've been servicing public funds since 1972. The Bank of New York currently services 41 public funds with assets excoeding 5176 billion. Services The following custody products which are described in detail on the following pages are the typical services prov�ded to our corpocau fund clients: • � f ❑ Master Trust/Master Custody 3 O Global Custody ❑ Securities Lending ❑ Performance Measurement and Portfolio Analytics ❑ Brokerage Services 0 Cash Management Services Client Service � Public Funds aro serviced by a dedicated administrative group within our Master ,i, TrusUMaster Custody Division. We assign an Account Team comprised of a ; Relationship Manager, Team Leader, an Administrator, an Investment Manager , Liaison and an Accountant to setvice your fund. Other specialists are assigned to the �. Team as necessary. Each Account Team serves a limited number of accounts so you can depend on responsive,pe�onalized service. Product Snpport I The professionals within the Public Funds Group are experienced and trained to ! handle ERISA reporting, custom report pteparation, corporate actions, tax I reclamation, regulatory changes, etc. These professionals aze versed in legislation and administration of single and multi-plan funds. The staff reviews industry trends, regulatory changes, technological advances, and new investrnent opportunities to ensure that The Bank of New York continually provides innovative servicing for I public funds. � i I Stctinn[/I - Spscialiud Servites jor PrrMie Fands � _ � � Master Trust/Master Custod Services IProduct Services ❑ Portfolio Accounting ❑ Cash Management O Benefit Disburaements ❑ Full Administration ❑ Securities Cleatance and Safekeeping ❑ Corporate Action and Proxy Setvices ❑ Ongoing TraininglClient Seminars ❑ Portfolio Management ❑ Participant Recordlceeping Product Features Acrnunling �� O Fully accn�ed trade or settlement dau(AcwaVConhacWal) , O Cost of Sales(e.g.,average cosbLlFO/FIFO/specific lot[i.e.,tax la]) ❑ Multicumency accounting ;� O Amortized cost accounting ❑ Liability accounting 0 Plan (unit)accoundng Cash Managpne�tt ❑ Iargc selection of short-tetm funds (e.g.,money market,tri-party azrangements, multicurrency funds) O Automatic daily sweep of cash balances into short-term jnvestment funds ❑ Automatic investrnent of buy-fail balances O Payable date credit of income ❑ DDA/No DDA option ` Reporti�tg ❑ Daily transaction 8c posi6on roporting on-linc O Audited monthly,quarterly, and annual poRfolio accounting schedules ❑ Flezible schedules for audited reporting ! ❑ Brokerage commission reports �` � Pariicipant Recoi�iheeping ' ❑ Voice response system ❑ Daily valuation ❑ Multiple investrnent opdons , ❑ Complete employee communication programs Benefrt Disbursements ❑ Flezible payment frequencies (i.e., annuity or recurring payments, lump sum or non-periodic payments) ❑ Choice of payment type(i.e.,electronic or check) ❑ Remote inqmry system ❑ Up to ten deducdons,complete tax reporting ❑ Comprehensive paymenUparticipant activity reporting ❑ Stop paymcnts,mortality checks and validadons � ❑ Check stuffers � S�ction Ilf - Speeializsd Servrees for PubGe Funds i" 1" � ' � Global Custodv Services � Product Services O Securities Settlement/Safekeeping in 54 markets O Foreign Exchange . � ❑ Cash Management ❑ Income Collection ❑ Taz Reclamation � ❑ Corpornte Action Processing ❑ Proxy Services ❑ Multicurroncy Portfolio Accounting � Product Features ` Aceounting ❑ Fully accrued hade or settlement date(ActuaUContracwal) � ❑ Muldcumency accounting ❑ Amortiud cost accounting Audited schedules generated monthly,quarterly,annually,semi-annually � Fonign Excliange ❑ 24 hour availability for riade execution � ❑ Over 45 cumencies supported ❑ Daily newsletter on FX trends Custody Reporeing � O Multicumency daily transaction & position reporting on-line or via S.W.I.F.TJISTTC ❑ Cash balances and cash projecdons � Caah Managemtnt O Muldcucrency interest bearing accounts � ❑ Payable date cadit of income in all markets where permitted SetHei»ent ❑ Actual settlement in all markets in our network; contracwal settlement where � pern►issible (i.e., 22 markets) O Subcustodian network 17f-5 compliant ❑ Our position as the leading depositary bank provides us diroct access to � exchanges,regulators,andinvestrnent bankers � Service Recognition ❑ Global lavestor 1995 Survey ranked The Bank of New York for the second consecutive year among the wp five overall in its survey of global custodians � based on the responses from fund managers from atound the world. � � � Seetion I[I - Speeialiud Servicsr for Pr�Wie Fands i� - � � Global Custodv Services � O Gbbal Cestodian S�rveys for the past four consecutive years (since the survey's initial publication) have awarded Ttie Bank of New York "Honor Roll" staws in the core services caugodes. They inciude: � • Cash Administration • Nenvork Management • Client Reporting • Safekeeping • Client Serviee • Securities Lending � • Client Teehnology � Settlement • Experiencel • Subcustodian Network Organization/Control • Technology � • Foreign Exehange • Valuation Reporting i � G�obal cuscoay organizahoo In addition to your Account Team located in either New York or London, client support is aiso provided from our oftices in: � Bangkok Beirvf Bombay BumarAirts Cairo Caracas Fsankjurt Grand Cayman Nong Kong lsranbul � Madrid Manila Melbourne Mexico Ciy Milan Mosrnw Oaaka Paris Pusan Sao Paulo Seoul Shanghai Singapore Taipei Tokyo � � � • � �o � � � C^� _ .r,,,.. � � . .� � �.v�..� .omac.n�r� � � ' • � -�../��J� � ""° (} r - �` IJ� r�I` -,�ieaw�� W � v � � � Seetwn I[/ - Specialiud Services jor Pr�blie Fnnds � Worldwide Securities Lendin � Product Services O Lend Equity and Fixed Income Securities in 22 markets � ❑ Credit review of potential borrowers O L.oan negotiation o Loan administration/mark-to-mazket � ❑ Loaas fully collateralized with cash or govemment securities ❑ Investment of cash collaural ❑ Related securities processing and global custody � Product Features " ❑ Flexible,client-driven investment pazameters � ❑ Recordkeeping/reporting ❑ Structured indemnification policies ❑ Schedule D reporting � Countries � Our experience includes both equities and fixed-income securities in these countries: Argentina Australia Belgium Canada Denmork � Finland France Gernwny Hong Kong /reland )taly Japan Ma/aysia Mesico Netherlartds New Zea/and Norway Spain Sweden Swiherfand Unired States Venezuela � � Securities Lending Organization Worldwide Securities L.ending is a self-managed strategic business unit solely dedicated to securities lending activities. All trading activiry, securities processing, � audit/conVol and client service are managed by this group. This suvcture provides a single point of contact for all inquiries; sheamlined processmg; aad custom�zation of a program to meet your unique investment restrictions and information requirements. � � M M � Section II[ - Specialized Strvices jor Public Funds M - i .M � Performance Measurement/Portfolio Analvtics � Product Semces We supporc a fully inugrated service to clients azoand the world, reflecting � performance evaluations of U.S.and non-U.S.Investment Managers. These include: ❑ cates of retum for your portfolios ❑ univetse comparisons � ❑ performance attribution analyses ❑ assedallocation analysis ❑ customized performance and risk analysis reports � . . ❑ data interpretation „ ❑ report formats and design ❑ informal prosentations; formal presentadons upon roquest ❑ coordination of semi-annual program review � ❑ development and reporting of performance benchmarks ❑ access to third-party services and analytic models(e.g., SEI,VESTEK, Barra Associsus,Gifford Fong,Frank Russell Company.SSI,and other vendors) � 0 wmpliance reporting(e.g.,exception reports for the financial guidelines established for your Investrnent Managers) � Product Features Reports � BAS/C-- BASIC stores a variety of market value and cash flow data for any rype of portfolio. BASIC recalculaus raus of retum on demand, for any time period and for any level of detail or summary consolidation. It generates both time-weighted and � dollar-weighted rates of return. Perjormance Snapshot -- Snapshot is a highly focused customiud performance summary of the latest monthly, quarterly, historical p�riod and benchmark � compatisons. This teport lets you analyu data at the levels of portfolio, asset class, total plan or any combinaUon of selected accounts. � VESTEK -- VPSTEK is an on-line portfolio analytic system of powerFul report writers to perform "what if' scenarios regarding the imestments within your portfolio. � TUCS (Trust Uruverae Comparison Sarvicer) (quanerly) -- TUCS is a universe composed of more than 5,000 investrnent portfolios allowing an analysis of your portfolio vis-�-vis,an asset class within a portfolio, or the total plan. Through on-line � access to the TUCS data bases, we can construct cuswmiud univases to meet your particular specificarions such as targeting analyses to fands of a certain siu, managa type, or risk profile. � InttrSec I►+ternotionol Univerae (quarterly) -- InterSec is an intemational system measuring the performance of intemational fixed income and diversified equity portfolios. � WM(quarterly) --WM is a consulting firm focusing a�lntemational Investing which provides a large univecse of portfolio results focusing on non-U.S. investing. � The service also provides attribution of performance by cuaency,market and security. Stction/I/ - Speeializtd Snroices jor Publie F�eds � � _ � Brokerage Services � Product Services ❑ Treasury Repurchases � ❑ Coaunission Recapture Ptogcams O Portfolio Liquidations iProductFeatures Treasary Repurchases — Companies undertake treasury transactions in order to support their stock prices or to fund employee stock ownership, employee stock � purchases, profit sharing or stock option programs. Companies that need to perform open-market stock uansactions�thcluding almost all major corporations, can benefit from our low wmmissions, market expettise and personalized accouat supervision. rCommission Recapture-- Our program offers investment plan sponsors the ability to tum a fund's order flow into an investment asset and teduce plan expenses. BNY Brokerage will retum to each participating fund a portion of the commission earned � on orders we execute on the fund's behalf. These credits can be paid direcUy [o the fund or used to offset custody expenses. Quite simply, BNY Brokerage will return to the plan an agreed-upon portion of the per share commission for all transactions � executed through the Commission Recapture Program. By turning a portion of a fund's order flow asset into cash,plan sponsors can easily ieduce fund ezpenses. � Porlfolro Lrquidations — When plan sponsors change the asset allocation or investment strategy of a portfolio, they often move funds from one manager to another. As part of the transition, the departing manager may be asked to liquidate the existing portfolio and prcxiuce cash for the newly hired manager. BNY Brokerage � employs trading techniques that minimize the overall costs of the transition and help maximize the portfolio's value. � i 1 1 i � � Section III - SpecraGzed Services for Publie Fr�nds � � _. _ � Cash Management Services MProduct Services M ❑ Funds Transfer ❑ S.W.I.F.T. ❑ Automated Clearing House(ACfi) Services � ❑ ControAed Disbursements ❑ Account ReconcIIiation ❑ Wholesale Lockbox MProduct Features � � Funds Transfer ❑ Fully automated processing to formatted instructions O Repetitive and non-repedtive transfers ❑ Multicurrency transfers � 0 On-line status of funds transfer instructions S.W.I.F.T. � O Transaction services (e.g., funds transfer, letters of credit,etc.) ❑ Information services (e.g., account and transac6on information) � Automated Clearing House Services ❑ High-volume receivables and disbursements ❑ Accommodates assorted transaction formats and converts to ACH ❑ Weekend ACH processing to maY;,r�;�r.funds availability � ❑ Supports EDI (Electronic Data Interchange) for corporate vansactions (e.g., CCD, CCD+, CTP and CI'X) � Conbolled Disbursements O Centraliud funding and control of disbursements ❑ Eazly moming notification of checks � 0 On-line reject/re-entry capabilides O Detailed montlily statements for the concentration and disbursement accounts Account Reconciliation Plan (ARP) Services ❑ Tracks-high volume check issuance and items presented for payment ❑ On-line acccss to current status of individual checks O Full ARP services ❑ Partial ARP services Wholesale Lockbox ❑ Automated, stand-alone operation with a dedicated staff ❑ Interactive, on-line account control O Accelerated check clearing services ❑ Accommodates special processing and reporting needs ❑ Real-time access for uacking and inquiry � Section III - Specialized Services for Pub[ic Funds � � _ _ � WindowsTM-based Workstation � Product Services 0 Download, sort and manipulau portfolio and transaction data ❑ Execute, sort and save queries to securities activity information � O Transmit data between our mainframe and your internal systems ❑ Access and manipulate performance measurement data ❑ Transmit securities, cash and foreign insuuctions � ❑ Affirmlunaffirm DTC ID transactions ❑ Perform fmancial caiculadons ❑ Access User Reference Library � - ProductFeatures — Trade Entry Co�nmunication (non-DTC1Dlrades) � ❑ Store frequendy used trade input screens ❑ View, modify, and sort instructions prior to transmission ❑ Store and recall repetitive insauctions ❑ Transfer and ship instructions � ❑ Automated assignment of money market numbers ❑ Mortgage-backed securities calculator ❑ Automated validation routines � ❑ Multiple collateral repurchase ageements � DTC Aff:rmations (DTC ID trades) � ❑ Provides direct and third-party ID confirmations ❑ Allows vazious sorting critena(e.g., view only new confums) ❑ Affirm trades on-line, either individually or collectively � Inquirees ❑ User-defined ad-hoc inquiry and reporting ❑ Access real-time information for your account's current day's activity � ❑ Selec[from assorted standazd queries ❑ Save customized queries for later retrieval , ❑ Export queries to database o�other software packages � Reporting , O Download portfolio activity to your PC at any time during the day O Customiud report formats can be created and stored for you on the Workstation ❑ Prepare composite reports for groups of accounts ❑ Create ad-hoc reports with built-in report writer Performance Measurement ❑ Generate a report or model to view portfolio perfonnance results ❑ Calculate rates of return and market values for portfolios ❑ Create customized blended indices ❑ Store report formats to use again (e.g., spreadsheets and graphs) Financial Cakulalions ❑ Input maturiry dates on screen to produce security yield ❑ Calculate discount price/yield; interest at maturity price/yield; straig6t interest/yield; and price/yield notes and bonds Section 7!/ - Specialized Services for Public Funds .� ' Securities Processing Services Directory � � The Bank of New York offers a more complete�ange of securities processing and operating services than any other financial insdtution. pur success is based upon our unique value-added � services,uchnologically advanced operacing systems,fleaible infocmati�ddivery capabilities,a specialiud approach to each market we service,personaliud administrative support and a demonstrated commitment to the Bank's securities processing business. � We hope that this Welcome Kit has provitfed you with a good ovetview of our Worldwide Sxurities Processing services. If you would like addidonal information on these services,please � contact your Account Administrator or one of the following Bank of New York representatives: � Public Funds Coosnita�s& Paul McNamaza Jean Hacrispn � Senior Vice Prcsident Vice Ptesident (212)635-1795 (212)635-8763 � � � r � � r r r SLCt10R IV - SLrVlCC U%/Ct� � `' � � Annual Report 1994 ���� J � V1 1 \�1,�� 1OJ�1�l ` �/Iv�. 1 u. , 11 \�� j. - - � � FINANCIAL HIGHLIGHTS � � NetInterestIncome S 1.717 $ 1,497 $ 1,367 $ 1,350 $ 1,476 NoninterestIncome 1,289 1,319 1,183 1,094 976 Provision for Loan Losses I 62 284 443 776 495 Noninterest Erzpense 1,646 1,646 1,519 1,456 1,527 Net Income 749 559 393 I 34 31 I Net Income Availabla to . Common Shareholders 736 534 360 102 278 Renun on Average Assea I.49% I.20% 0.85% 0.29% 0.59% Return on Average Common Shareholders' Equiry 18.49 14.98 12.00 3.85 10.64 Common Dividend Payout Rario 27.88 27.99 33.89 125.49 57.91 Contents Per Common Share _- Primary Earnings ; 3.92 $ 2.87 $ 2.10 $ 0.64 $ I JS Letter to ��. Fully Dilu[ed Earnings 3J0 272 2.00 - I JS �Shareholders 2 Cash Dividends I.10 0.66 OJ6 0.84 1.06 The Company's � Market Value at Year End 29.00 28.50� 26.94 15.44 8.88 Core Businesses 6 � Average Securiues S 5,941 $ 6,352 $ 6,202 � $ 4,676 $ 4,623 gusiness Review 8 �,, Average Loans 32,029 30,427 30,345 32,719 38,139 ', Average Total Asseu 50,280 46,644 46,227 46,617 53,214 Financial Review (8 Average Deposits 34,041 32,837 33,237 35,669 37,905 � Average Long-Term Debt 1,530 1,729 1,386 991 872 Average Preferred Shareholders' Equity 157 334 409 395 395 Average Common Shareholders'Equiry 3,980 3,563 2,996 2,652 2,61 I . AtYear End Allowance for Loan Losses as a Percent of Loans 2.40% 3.17% 3.63% 3.57% 3.I I% Tier I Capital Ratio 8.45 8.87 7.59 5.79 5.03 : Total Capital Rario I 3.43 I 3.65 12.30 9.40 7.96 � Leverage Ratio 7.89 7.99 7.1 1 5.77 5.02 ', Common Eq�ity to Assets Ratio 8.55 8.29 730 6.14 536 Total Equity to Assets Ratio 8.79 8.94 8.24 7.04 6.16 li Common Shares Ouutanding(i�millions) I 86.935 187.228 182.131 160.746 159338 '. Employees 15,477 15,621 I 6,167 I 5,I 39 I 5,847 IThe per mmmon zhare amounts and common shares outstanding have been reSUted to r¢Ilett the 2-fowl tommon srock split � effectiveApril22,1994. I Millions . �gpp f30 600 ISX � I1 79 100 9 �00 6 l0 100 300 �P 3 5�.. 93 93 91 91 91 93 91 92 93 9� �I ■The Bank o( ■Toral , New York Company �58P-"500"Index �Tier I _ _ . __ __ CONSOLIDATED BALANCE SHEETS Assets Cash and Due from Ba�ks ; 2,903 $ 4,S I I Interest-Bearing Deposiu in Banks 992 269 Securities: Held-to-Manuiry(fair value of$2,707 in 1994 and$4,q49 in 1993) 2,930 4,356 Available-for-Sale(fair value of$1,721 in 1994 and$1,243 in 1993) 1,721 1,241 Total Securities �,65I 5,597 Trading Assets at Fair Value 940 1,325 0 Federal Funds Sold and Securities Purchased Under Resale Agreements 3,019 36 Loans(less allowance for loan losses of$792 in 1994 and$970 in 1993) 32,291 29,600 Premises and Equipment 914 945 � � Due from Customers on Accep[ances 810 888 Accrued Interest Receivable 290 222 OtherAssets 2,069 2,153 Total Asse[s ;48,879 $45,546 Liabilities and Shareholders' Equity Deposits: Noninterest-Bearing(principally domestic offices) ; 8,579 $ 8,690 Interest-Bearing Domesdc Offices 14,871 15,156 Foreign Offices 10,641 8,313 Total Deposits 34,091 32,159 Federal Funds Purchased and Securides Sold Under Repurchase Agreements 1,502 2,71 I Other Borrowed Funds 4,738 2,781 Acceptances Outscanding 812 901 Acct'ued Taxes and Other Expenses 1,049 763 Accrued Interest Payable 213 I I I Other Liabilities 404 458 Long-Term Debt 1,77� 1,590 Total LiabiliUes 44,583 41,474 Shazeholders'Equiry Ptefened Stock-no paz value,authorized 5,000,000 shares,ouutanding 184,000 shazes in 1994 and 3,648,100 shares in 1993 I I I 267 Class A Preferred Stock-paz value$2.00 per share,authorized 5,000,000 shares, outstanding 322,104 shares in 1994 at�d 1,085,415 shazes in 1993 8 2� Common Stock-parvalue$Z50 per share,authorized 350,000,000 shazes,issued� 190,213,322 shazes in 1994 and 187,400,962 shares in 1993 1,427 1,406 AddirionalCapital - 858 8'1� Retained Eanungs 2,048 1,536 Securides Valuanon Allowance (58) - 4,394 4,077 Less:Treasury Stock(2,566,071 shazes in 1994 and 173,198 shazes in 1993),at cost 78 5 i Loan to ESOP(712,695 shazes in 1994),at cost 20 - Tocal Shazeholders'Equity 4,296 4__072 Total Liabilities and Shareholders' Equity 548.g79 $45,546 �� See accompanying Notes to Consolidated Financial Sta�emenn. 18 CONSOLIDATED STATEMENTS OF INCOME � Interest Income Loans ; 2,405 $ 2,025 S 2,102 Securiries Taxable 227 235 262 Exempt from Federal Income Taxes 56 69 86 283 304 348 Deposits in Banks 68 24 76 � Federal Funds Sold and Securities Purchased Under Resale Agreemenu I 61 97 85 Trading Assets 45 53 76 Total Interest Income 2,962 2,503 2,687 1 Interest Expense Deposiu 842 701 I,005 Federal Funds Purchased and Securides Sold Under Repurchase Agreemenu 106 102 I 36 Other Borrowed Fmmds 191 86 85 Long-Term Debt 106 117 94 Tohal Interest Expense 1,245 1,006 1,320 Net Interest Income 1,717 1,497 1,367 Provision for Loa�Losses 162 284 443 Net Interest Income After Provision for Loa[�Losses I,SSS 1,213 924 Noninterest Income Processing Fees Securiaes 359 309 275 Other 171 162 148 . 530 471 423 Trustandlnvestrnent Fees 126 134 121 Service Charges and Fees 465 454 437 SecuritiesGains IS 64 42 Other 153 196 160 Total Noninterest Income 1,289 1,319 I,183 Noninterest Expense . Salaries and Employee Benefiu 852 813 714 Net Occupancy 178 178 168 � Furniture and Equipment 88 95 97 Other � 528 560 540 Total Noninterest Expense 1,646 1,646 1,519 Income Before Income Taxes 1,198 886 588 Income Taees 449 327 195 Net Income S 749 $ 559 $ 393 Net Income Available to Common Shareholders ; 736 $ 534 $ 360 Per Common Share: , Primary Earnings ; 3.92 . $ - 2.87 S 2.10 Fully Diluted Earnings 3.70 2.72 2.00 Cash Dividends 1.10 0.86 0.76 Average Common Shares Outstanding 187.889 186.084 171.448 See accompanying Notes to Gonsolida�ed Financial S[a[emen[s. 19 _ _ _ _ _ _ _ _.. �:ONSOLIDATED STATEMENTS OF CFIANGES IN SHAREHOLDERS' EQUITY Preferred Stock � Balance,Januaryl S 294 $ 428 $ 395 Issuance in Public Offering(shares:1,334,000) — — 139 Redemption and Repurchase(shares:3,464,100 in 1994,752,120 in 1993, and 100,000 in 1992) Q 56) (76) (99) � . Conversion of Preferred Stock(shazes:763,311 in 1994,65,157 in 1993, and 75 in 1992) (I 9) (58) (� Balance,December 31 I 19 294 428 f Common Stock ' Balance,Januaryl 1,406 1,366 1,208 , Issuance in Public Offering(shares:18,400,000) — — I 38 Conversion of Preferred Srock(shares:1,412,076 in 1994,2,937,092 in 1993, and 369,580 in 1992) I I 22 2 Other Issuances(shazes: 1,400,284 in 1994,2,305,298 in 1993, and 2,227,102 in 1992) 10 18 18 Balance,December 31 1,427 1,406 1,366 Additional Capital Balance,January 1 841 784 561 Issuance in Public Offering _ — Zp� Conversion of Prefeaed Stock 8 24 3 Redempdon and Repurchases of Preferred Stock (4) (I) (I) Other 13 34 20 Balance,December 31 858 841 784 Rekained Earnings Balance,Januaryl 1,536 1,153 913 Net Income 749 559 393 Cash Dividends CommonSrock (205) Q50) Q22) PrefeaedStock (Iq) (2� (33) Redemprion of Preferred Srock (17) — — Change in Accumulated Foreign Currency Translation Adjustrnent (I) I 2 Balance,December 31 2,048 1,536 1,153 Securities Valuaiion Allowance � �— Balance,January 1 I — — Nec Unrealized Loss on Securiries Available-for-Sale (59) — — Balance,December 31 (58) Less Treasury Stock i Balance,January 1 S I 6 Issued(shares:1,331,734 in 1994,10,800 in 1993,and 424,346 in 1992) (39) — (6) Acquired(shazes:3,724,607 in 1994,156,330 in 1993,and 35,644 in 1992) I 12 4 � Balance,December 31 78 5 ! � Less Loan eo ESOP (712,695 shares in 1994) 20 — _ 1 Balance,December 31 20 — — + Total Shareholders' Equity, December 31 54.296 $4,072 $3,730 _ _ �� See accompanying Nores ao Consolidated Financial Su[emmas. 20 CONSOLIDATED STATEMENTS OF CASH FLOWS � Operating Activities Net Income S 749 $ 559 $ 393 Adjustments to Determine Net Cash Provided(Used)by Operating Activities: Provision for Losses on Loans and Other Real Esrate 169 338 520 Depreciadon and Amortizaaon 200 187 176 Deferred Income Tases 271 193 165 Securides Crains (IS) (64) (42) Change in Trading Assets 1,309 (591) (251) � Change in Accruals and Orher,Net (232) 88 (263) ` Net Cash Provided by Operaung Activides 2,451 710 698 L — Imesting Activities Change in Interest-Bearing D:posiu in Banks (71 I) 16 I55 Purchases of Securities Held-to-Manuity (367) (2,344) (1,436) Sales of Securides Held-ro-Manuiry _ 22 ;g� Marurities of Securities Held-to-Maturity 681 I,174 I,159 Purchase of Securities Available-for-Sale . (I,177) (2,I 04) (3,356) Sales of Securides Available-for-Sale 1,985 3,467 2,792 Maturiaes of Securities Available-for-Sale 8 31 37 Net Principal Collecced(Disbursed)on Loans[o Customers (3,039) (2,030) 1,049 Sales of Loans 323 494 634 Sales of Other Real Esrate 33 80 81 Change in Federal Funds Sold and Securiues Purchased Under Resale Agreements (2,983) 229 1,462 Purchases of Premises and Equipment (43) (4n (40) Acqrrisidons,Net of Cash Acquired (I 61) 58 688 Other,Net IS (32) 40 Net Cash Provided(Used)by Investing Activities � (5,430) (986) 3,626 Financing Activities Change in Deposiu I,814 (1,048) (I J81) Change in Federal Funds Purchased and Securides Sold UnderRepurchaseAgreements (1,209) 938 (1,92n Change in Other Borrowed Funds 990 (248) 1,897 Proceeds from the Issuance of Long-Term Deb[ 297 546 595 RepaymencsofLong-TermDebt (IIS) (655) (131) Redemption,Conversion,and Repurchases of Preferred Srock and Warrants (177) (90) (102) Issuance of Common Stock 42 53 380 Issuance ofPreferred Stock — — �;9 Treasury Stock Acquired (���) �q� (�� Cash Dividends Paid (219) (179) (I 53) Net Cash Provided(Used)by Financing Activities 1,31 1 (687) (1,084) Effect of Facchange Rate Changes on Cash 60 (32) (33) M1 Change in Cash and Due from Banks (1,608) (995) 3,207 �� Cash and Due from Banks at Begintilng of Year 4,51 I 5,506 2,299 UCash and Due from Banks at End of Yeaz y2,903 g4,51 I ;5,506 Supplemental Disclosure of Cash Flow Information Cash Paid During the Year for: Interest 51,143 51,047 $1,408 Income T�es I SS 181 74 Noncash Invesdng Acuviry(Primarily Foreclosure of Real Estate) 43 54 179 Reclassificadon of Assers co Securides Held for Sale 1,390 — — See accompanying Notes m Conzolidaaed Financial Statemencs. � 2� Palm Deurt Redevebp�--tt A`eeey � Date: 8/3/95 Invptmeet Portfolio De •Iovesdneob 7/31N5 Purchasa Book Face Market Stated Maturity Fund Total Description Date Value Value Value Rate Date Investad Invest-US . . ......... ....v:.:..;.. . ... � .>.,,.�.»;<; ��:».... �� � . .:......,,.:. .:,...................:............ US Treasury-Strip 100 Mil 0.00 0 0 Acct�C301-8019000 5,424,063.67 5390000 5479268.4 6.88% 3/31/97 Escrow FDS 148,225.25 205000 167,001.00 5.90% 2/16/97 ProjA'1 � 393,827.48 400000 397,378.00 4.30% 12/31/95 392,065.00 400000 396,124.00 4.00% 1/31/96 1,369,305.94 1497000 1,444,385.48 5.46% 2/15/96 393,752.46 400000 397,252.00 4.70% 2/15/96 394,757.48 400000 398,252.00 5.10% 3/31/96 296,818.11 300000 299,343.00 5.50% 4/30/96 396,762.48 400000 400,378.00 5.90% 5/31/96 Fed Natl Mtg Assn 11,080,997.75 11100000 11,111,100.00 6.10% 17/9/95 1,173,869.40 1254000 1,245,723.60 5.30% 8/75/95 1,429,462.44 1554000 7,521,459.24 5.70% 11/15/95 � 688,055.26 748060 732,336.68 5.70% 11/15/95 9,988.22 11000 10,613.24 5.80% 2/15/96 246,251.55 250000 248,380.00 4.30% 12/31/95 245,079.86 250000 247,577.50 4.00% i/31/96 246,173.43 250000 248,282.50 4.70% 2I75/96 246,134.38 250000 248,202.50 4.70% 2/29/96 246,879.88 250000 248,907.50 5.10% 3/31/98 247,562.80 250000 249,452.50 5.50% 4/30/96 243,796.88 250000 246,875.00 4.30% 5/15/96 248,523.43 250000 250,235.00 5.90% 5/37/96 248,562.50 250000 250,625.00 6.00% 6/30/96 248,798.88 250000 250,762.50 8.70% 7/37/96 249,023.43 250000 257,172.50 6.20% 8/31/98 249,882.80 250000 262,110.00 6.40% 9/30/96 . 241,057.80 250000 245,312.50 4.50% 11/15/96 249,651.55 250000 252,285.00 8.40% 11/30/98 248,128.13 250000 251,250.00 6.10% 12/31/96 248,368.75 250000 251,562.50 6.20% 1/31/97 248,837.50 250000 252,612.60 6.40% 5/15/97 248,095.30 250000 252,577.50 6.30% 6/30/97 Fed Natl Mtg Assn 4,376,437.02 4390000 4,394,390.00 6.10% 1119/95 304,780.23 359000 321,976.33 6.10% 6/16/97 special escrow .....,_,. . ... ...................................:..:::� s:.. . .,. .. ...... : - , . �:.: � ia:. :�.��;; :.�. ' �::�:::` :... � : ik'81?7�i�?tl8'r:�:;:".... ' � : � �. ,. � . :�. .. �., . . � .. :: �. .:..'.:.. . . . r:......i.: . ^� � :: ...,. � :. . . . .. ... . :, . . . . ........,.. ;:C81kdi7�:B�`5:"'?�'>>!: - ::.:. ..�... ......... . ....::....... Project Area p2 Proj #2 Acct8301•8023000's 24,178.70 26,000.00 25,625.28 5.40% 8/15/95 234,961.10 251,000.00 249,343.40 5.30% 8/15/95 11,804.26 13,000.00 12,542.92 5.80% 2/15/96 908.02 1,000.00 964.84 5.80% 2/15/96 12,712.28 14,000.00 13,507.76 5.80% 2/15/96 381,964.75 397,000.00 383,224.10 5.80% 2/15/96 40,359.15 45,000.00 42,799.05 5.90% 6/15196 885.47 1,000.00 940.00 5.70% 8/15/98 61,982.90 70,000.00 65,800.00 5.70% 8/15/96 88,161.19 77,000.00 72,380.00 5.70% 8/15I98 190,376.05 215,000.00 202,229.00 5.60% 6/15/96 243,562.50 250,000.00 248,876.00 4.30% 5I75/96 248,210.93 250,000.00 250,625.00 6.00% 6l30/96 248,367.18 250,000.00 250,782.50 8.10% 7/31/98 248,554.68 250,000.00 251,172,50 6.2096 6l31/96 299,250.00 300,000.00 302,532.00 6.40% 9130/96 0.00 tt�;l�°�7��Ikrt��,if. .:: , ,. z."t:29S.29�'F�i;:'.�.+��E#:iJSY�Liff., .'+u�'+'i7�.�4;i 3�'<>, > . ...;_< . 2,�9$'.'�9�<..:. � Bank ot Ameriea-Savings � 0.00 0.00 I I .. � i�� � � ���� �n � �; 1 ' � i� ( _ ;�; � F���� ' �� ;, �, Sl..1NZISE ';''�i l , COMPANY July 20, 1995 Mr. Paul Gibson Director of Finance v`�i � �= CTTY OF PALM DESERT � � � 73-510 Fred Waring Drive '—' � • Palm Desert, CA 92260 "' `^ �' �., � � T r" r Re: Indian Ridge Public Improvements =D �� -_ � � �: --f m Dear Paul: �' =- R; �.. � a � -� The plans, bids and contracts for work under the City of Palm Desert Communities Facilities District No. 91-1 (Indian Ridge Public Improvements)have been completed and approved. As a result of the final plans and bids the preliminary amounts given to you in my letters of May 9, 1995 and 7une 5, 1995 have changed. The finai disbursement schedule is enclosed. We are prepared to commence the work within ten days. The construction schedule is estimated at ten weeks. Have you put the Escrow Agreement with the Desert Sand Unified School District on the agenda for City Council approval? The District has the original signature pages, a copy of which is enciosed. As I previously mentioned, we are now anxious to set in motion plans for the second issue. Sincerely, 7ack M. Conlon President JMC:cd Enclosure cc: Carlos Ortega Doug Shipman Dick Folkers Phil Dwornik Dave Erwin Rudy Barela Barney Allison Allan Levin 42-600 Cook Street, Suite 200, Palm Desert, Cdifomia 92260, Te/ephone (619) 568-28Z8 Builder o/Amrrica e FineN Counby Club Communities II�TDIAN RIDGE COUNTRY CLL� 7/20/95 - MELLO ROOS BOND FINANCING JUNE 1992 BONDS SUMMARY OF DISBURSEMENTS ToW Disbursed Balance to Improvement thtv 5/8/95 be Disbursed' Futtd PERMITS SPECIFIC TO UNTTS S 3,134,276 S 2,097,282 $ 5,231,558 PERMITS NOT SPECIFIC TO UI�iITS 882,270 882,270 STREETS, CURBS AND GiITTERS 748,716 1,104,372 1,853,088 SIGNAL 58,725 58,725 WATER 14,870 14,870 PARKWAYS AND MEDIANS 570,119 50,000 620,119 INTEREST RESERVE 665,382 665,382 TOTAL S 6,074,358 S 3,251,654 S 9,326,012 �� ' PERMITS SPECIFIC TO iJNITS: Fees other than School Fces S 747,282 School Fees Deposit 800,000 CVWD Well �i3 Deposit 550,000 TOTAL S 2,097,282 STREETS, CURBS AND GUTTERS: Eldorado Drive S 249,966 Avenue 42 363,628 Oasis Club Drive 286,018 Engineering, Plans & Staldng 48,850 Street Striping, Barricades & Signage 34,605 Incidental and Miscellaneous 121,305 TOTAL $ 1,104,372 PARKWAYS AND MEDIANS: Eldorado Drive S 50,000 GRAND TOTAL S 3,251,654 � II�iDIAN RIDGE COUNTRY CLUB 7/20�5 MELLO-ROOS BOND FINANCING ST'REETS, CURBS 8c GLTI'TER INCIDENTAL AND MISCELLANEOUS CONSTRUCTION COSTS 1. Water for Grading and Water Meters (5) $ 9,000 2. National Mortgage and Land Supervision & Inspecdon 14,000 3. Dust Control Stabilizafion after construction completion 8,%2 4. Soil Testing/Compaction 7,753 5. Conduits and Street Crossing 21,814 6. Permits for strcets (396) 28,026 7. Adjust Manholes and Water Valves on 42nd Avenue 1,500 8. Security Patrol during fence removal 3,900 9. Add Spandrel/cross gutter at Indian Ridge Drive Entry 4,550 on 42nd Avenue - not shown on bid plans 10. Other Miscellaneous Purchaaes/Condngency 22.000 TOTAL S 12I.305 - ESCROW AGREEMENT TEiiS AGREEM�T i9 mads and entBrad into this date by and betwaen Co]�1t7tiITY FACSLiTiEs DiST�tiCT No. 91-i oF THE CITY OF PALM DESERT ("CFD 91-1") , a Community faCllities distr3Ct lormed pursuant to the provisions oP the Mal10-Roos Co�unit� Facilities act o! 198Z, Chapter 2.5, Dtvision 2, Title 5 of the CaliLornia Government Code and DESERT SANDS UNIFIED SCHOOL DISTRICT ("Dasart Sands") , s public school district orgz�nizad and existing undar the laws ot the etat• ot Californin. Raa�i�j'f�� ]1. Ths partiQs hereto ent�red into a Joint Community Faeilitias Financing Agreement (tha "Financinq Aqreement")as of Juna 16, 199Z, a copy of which is attaeh�d h�reta as Exhibit i and incorporated harain by raf�renca. B. Tha Financinq Aqr�ement providee that CFD 91-1 will disburse e�rtain funds received lram th� sale of bonds to Desert Saads upon requ•st and in auch amount as Dasort 3ands would be entitlad had th� paymant been in SAt�8�8Ct�Oh o! school impact faes that would otharwiea be due at suck� time, in axchange Po= a waiver by Degert saads o! the sehool dsvelopmant feea provided by Ca2ifornia Government Code section 53080. C. CFD 91-1 desires to prepay a eartain portion o1 ths anticipated Paes du� Dosert Sands pursuant to the Financinq Aqreeaetft. NOW, THEREFORE, in COTfsideratfon oi the mutual covsnants hereinaftar contained, Cha partias agree as followe: 1 �r-a�-io» �i•�xr� rnu�� ��w✓- �_. ....__ ._ . i. CFD 91-1 shall deposit into an escrow aocount o! Dasert sands' choicn the amount of S800, 000 as a prepayment of echool teas; 2. From time to tima, ae Pees baeoma dua pursuant to the tarma o! the Finencing Aqreement, Desart Sands shall draw against tha escrow account the sums then due. Within thirty days of each such drav, Desert Sands shall notily CFD si-1 of the withdraval of faes; 3. Desert sand6 aqrees that the feea charqad purauar�t to this agreem�nt will not exceed 51.72 per squara loot; 4. CFD 91-i shall ba responsible Eor payinq all Leas and related expensea iacurred by D�aert Sanda in astablishinq and administering th� a:crow account. These nxpenses may ba withdravn from tria aacrow account at the discretfon of Desart Sands; S. The interest earned on th4 monay hald in the escrov aecount and all intares� earned on that interest shall belonq to Dasart Sands and shall be subjact to withdrawal by D�sert Sands at any time and from cim� to tim� without notice to CFD 91-i; 6. CFD 91-1 shall not have the rfqht to withdraw any part of the principal in the escrow aecount except upon written notica to the sscrow aq�nt accompanied by writtan authorisation trom Dasart Sands; �. tlpon withdrawal of all sume held in the nocrow aocount, Des�rt Sands shall roquast paym�nt oY remaining fees pursuant to Lhe tarms o! the Financfnq Aqreament, and CFD 91-1 ahall pay such faes pursuant to th� terma o! the Financinq Agreamnnt; a fJ('c[�iJir \.� �G �� . �.�.. . �wr� . `.r. . � . .__ . . . 8. Thie aqrewnent cohtains the eatire agreement betwesn the parti�s with respect to the matters provided for harein, and may be amended only by subsequent written agreement signed on behalf cf both partiea; 9. Should any legal action bs instituted to eniorce the tarms o! this aqreement, ths prevailing party ahall be entitled ta an awerd oP raasonable attorneys lees; 10. All exhibits attached hersto are incorporated hsreia by retereace; and li. This agreement may ba �x�cuted i� counterparts, oach o! vhich shall be daemad an oriqinal, but all of which togethnr shall constituta ons instrument. IN WITNESS WAEREOF, the partiss hava executtd this Aqreement as oi the date firat set farth abovn. C01�4iJNITY F7IGILITIES DISTBICT NO. 91-1 CF THE CITY OF PALli DESEAT By: Msyor o! • C y couna 1 of the City o! Palm Dessrt Acting Ex OPficio aa the Legislativ� Body of Co�u- nity Facilities Di6trict No. 91-1 0! the City oi Palm D�ssrt ATTEST: 3 ei a G 11 Qan, C ty C erk City o! Palm nesert 3 Gr-cV1177� Dl•'+on� rM1.d�� __.....� . "" . ..__ . DESERT Sl►NDS IINZP'IED SQi00L DI8TRI C'I' Sy: Jim Kos yker Presidant of the Soard of Trustaes rnow..u�•sso a TOTRL P.05 I Cily of Palm Desert Prellminary Schedule of Investments As of July 31, 1985 Aeeount Purohass Invesfinent Facs Merkat' Stated Maturity Imsstrnent Deseriptlon: Number Dats Vaiue Valus Value Rate Date reasunas USTreesury-Strip QA7509000 6/14/94 999,798.86 1,062,000.00 1,055,054.52 8N5/95 US Troasury-Note QA7509000 10/27/94 3,983,750.00 4,000,000.00 4,036,240.00 6.50°� 11/30/96 US Treasury-Note DA7509000 1027/94 1,99B,875.00 2,000,000.00 2,028,440.00 fi.75% 2128/97 USTreasury-Note QA7509000 10l27/94 1,782,562.50 1,800,000.00 1,801,692.00 5.875% 5/31/96 USTreasury-Note OA7509000 10Y27/94 1,787,062.50 1,800,000.00 1,808,442,00 6.25% B131/86 USTreasury-Strip OA7509000 10/27/94 1,000,566.42 1,097,000.00 1,059,438.72 2/15/96 USTreasury-Strip OA7509000 10/27/94 1,003,937.62 1,132,000.00 1,066,083.64 8/15/96 USTreasury-Strip QA7509000 1027/94 1,003,182.98 1,078,000.00 1,056,202.84 11/15/95 SubTotai - � :ioeautbs .. 13,557,735.68� Bank;ofAmerica= avir� SUb�TOt�I • SWIIsgS 0628�&65232 1,414'�;488.79.' 2.00°.6 State�:-L.A.LF. Sub:'fotei - l.A.ls�. 9&33-621 13, 60,A51.32 5.956% Ilateralized Ce es nf De Glendak Federal � 887-036488-8 3!9/95 1,000,000.00 6.40% 9!7/95 Glendale Federal 867-036267� 3/9/95 1,000,000.00 6.40% 9!7/95 Glendale Faderal 887-036488-8 5/18/95 1,500,000.00 5.60% 921/95 Great Westem 389-608937� 727/95 1,500,000.00 5.65% 10/27/95 Great Westem 389-fi07877-5 7/27/95 1,500,000.00 5.65% 70/27/95 Great Wastem 389-80787&3 7/27/95 1,000,000.00 5.65% 10/27/95 Great Westem 389�0845&3 7/27/95 1,000,000.00 5.65% 10/27/95 Homa Savinga 589-003102-3 7/27/95 7,500,000.00 5.47% 1027/95 Home Savings 589-00311&9 7/27/95 1,500,000.00 5.47% 10/27/95 Home Savings 589-003110-8 7/27/95 1,000,000.00 � 5.47% 10/27/95 Home Savings 589-00312E2 727/95 1,000,000.00 5.47°� 1027/95 Sub�.7atel � Cert'dicates of.DepOait � 13; ���;U00,00�:�: Funds Loarred to.R�A � � 11,334',OW.QD���.: Rate=to LAIF 5.956% Band�Issu0.a: . �� . � � Indian Ridge CFD 91-7 301�021500 USTreasury-Strip 301-6021577 11/19/93 462,250.00 500,000.00 489,700.00 5.30% 11/75/95 US Treasury-Strip 307-6021577 11119/93 795,013.50 850,000.00 844,390.00 5.60% 8/15/95 ResolutionFDG-Strip 307-6021580 11/19/93 539,165.48 733,000.00 651,790.93 6.10% 7/75/97 Bank of America-Fidelity Treasury 301�027575 275,531.54 275,53i.54 275,531.54 5.90% 301-6021580 341,44020 341,440.20 341,440.20 5.90% 301-6021577 2,635,728.35 2,635,728.35 2,635,728.35 5.90% Sub Total -Jndwn�.�idge� . . . ... . � �5;0491 9A.��.. . . Sierta Nova 92-1 301-6028400 Bank of Ameriea-Fidelity Treasury 307-6028478 9,768.28 9,768.28 9,76828 5.90% 301-8028480 238.884.66 238,884.66 238,884.66 5.90°� 3011>028482 0.01 0.01 0.01 301�028481 25.64 25.64 25.64 5.90% Sub Tatai • Siarta Nova- 248.878.59. Page 7 of 2 City of Palm Desert Preliminary Sdiedule of Investments As of Juy 1995 Continued Aeeou�k Purohass Investment Faw MarkeN Sfabd Maturily InvestneM DascAptlon: Numbsr Dab Value Value Value RaEs Dats 8a�l�.lsauea::GoMinued AD 87-1 B of A-Pacific Horizon Treasury Fund 117178400 317.32 317.32 317.32 717178407 348,646.21 348,846.21 348,646.21 . ��.87-7 - SubTotel 348..,963.53....: Bip Hom 941" 301-8200000 USTreasury-Strip 301-8200080 222,059.23 275,000.00 236,417.50 620% 2/t5/98 USTreasury-Strip 301-8200080 311,122.00 350,000.00 329,210.00 5.60% 8/75/96 Bank of America-Fitlelity Treasury 301-6200077 46,041.20 48,041.20 46,041.20 5.90°h 301-8200075 7.28 728 7.28 5.90% 301-8200078 1,011.67 1,071.67 1,011.67 5.90°.5 301-8200080 100,084.76 100,084.76 100,084.76 5.90°� 301-8200751 222,317.98 222,317.98 222,317.98 5.90% 5ub�.Tpta1 • Big Hom � ��902;844:12 SuMenace 94-2 301�064800 Bank of America-Fidelity Treasury 307-6064875 149,487.32 149,481.32 149,481.32 5.90% � 301-6064877 139,035.39 139,035.39 139,035.39 5.90% 301-6064880 188,245.53 188,245.53 188,245.53 5.90°� SUbTotal -�Sunterrace �. � � � � .478�,76224 Merano 94-3 301-6065600 Benk of Americe-Fidelity Treasury � 301�0756�6 26,409.67 26,409.67 26,409.67 5.90°h 301-6075677 996,319.05 996,318.05 998,319.05 5.90% 301-6075680 127,854.71 127.854.71 127.854.77 5.90% 307-6075881 32,356.11 32,356.11 32,356.11 5.90% SubTotal -;Merano ... . . .. 1;182;439�:54'... i 'Monthly reports are typically received up to one full month after curtent month end. Information eontained in this report ia most reeent reeeived. "Bank experieneing diificulry with statement Por thia account. I esrt^iry that theae inves6nenb compty vWth all S4te laws psrtalning W the Investrn Local Ageney funds. � V��C' Paul S.Gibson, reasurer ce:OB/02/95 Paul S.Gibson B.Wright Investment File � . sehedjul.xls Page 2 of 2