HomeMy WebLinkAbout02 AUGUST 1995 _ ____ �,_._. ____
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AGENDA
INVESTMfiNT & FINANCE COMMITTEE
3 :30 P.M. - AUGUST 3, 1995
NORTH WING CONFERENCE ROOM
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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
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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.
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���� 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
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� � Minut e s
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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.
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� 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,
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LORENA G. RMENTA
RECORDING SECRETARY
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� FINAL PRICING SUMMARY
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� 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
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� TABLE OF CONTENTS
�
� I, Project Area No. 1, As Amended, Series 1995 �
� Cover Pages Preliminary O�cial Statements 1
List of Participants 1
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� II. Project Area No. 2, As Amended, Series 1995
Cover Pages Preliminary Official Statements Z
List of PaRicipants 2
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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
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V. The Interest Rate Environment 5
Economic Summary 5
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�p;{�' ItitiUIC Mumly's: Aaa
Standard & Puor'r. .1AA
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�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
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� 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
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Standnrvl & 1'uur's: AAA
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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.
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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
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� 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%
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Palm Desert Financinq Authority
� Tax Allocation Bonds,
� IProject Area No. 1)
Series A Tax Bxem t
DBBT SBR�ICB SC9BDBL8
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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
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� 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
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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
�
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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
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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.
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Z DG04 Govt C 1 5
ENTER ALl VALUES AND HIT <GO>.
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� Table of Contents
� . _
� I. The Bank of New York
Bank Overview and Finaecial Highlights
� Core Businesses
� II. 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
�
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�
� 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
�
�
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SLCt10R IV - SLrVlCC U%/Ct�
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Annual Report 1994
����
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1 \�1,��
1OJ�1�l `
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�
� 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:.:..;..
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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
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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
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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;
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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