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HomeMy WebLinkAbout05 NOVEMBER 1995 i' , � W m s W > O Z R � � �. 1I' !''. r � � � 1 AGENDA INVESTMENT & FINANCE COMMITTEE 3:30 P.M. - NOVEMBER 2, 1995 NORTH WING CONFERENCE ROOM ����������*�*****************�����������***�*�*�*****�**�*���������*******�*�� I. CALL TO ORDER IL INTRODUCTION OF THE NEW INVESTMENT MANAGER JEAN RUTH IIL MEMBERS PRESENT IV. APPROVAL OF MINUTES: Rec: Approve the minutes of September 7, 1995 Action• V. ORAI. COMMUNICATIONS Any person wishing to discuss any item not otherwise on the agenda my address the Committee at this point. VI. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks 1. Sports Park 2. Section Four Rec: Status will be given on obtaining background checks and who should be reviewed. B. Status of Audit of Various City and Redevelopment Agencv Projects Rec: Review recommendations and proceed with audits. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE NOVEMBER 2, 1995 PAGE 2 VII. NEW BUSINESS A. Citv and Redevelopment A�ency Investment Schedule Rec: Review and submit to the next City Council agenda. Action: B. Request for Approval to Invest in Collateralized Deposits with the Best Bid Submitted on Investments Maturine in the Month of October and November 1995 Rec: Review investments maturing and reinvest in Collateralized Deposits. Action: C. Undate on Bills Pending the Govemor's Signature SB 654 and SB 866 Rec: For information and status. Action• D. State of California Local Agency Investment Fund Monthlv Report Rec: Informational item for the committee to review. No action required. Action• E. Investment Policv Rec: Hand Out Current Policy and Review to see if Changes aze Required. Action• F. Transfer of Pavee/Trustee Aereement from Citv National Bank to Bank of America for the 1982 RDA Bonds Rec: Attached is a tri-party agreement to transfer handling of the RDA bond issue and staff recommends approval. AGENDA - INVESTMENT & FINANCE COMMITTEE NOVEMBER 2, 1995 PAGE 3 VIIL REPORTS AND REMARKS A. Items to be placed on the Next Agenda IX. ADJOURNMENT Next regularly scheduled meeting is December 7, 1995, at 330 p.m. lga �—T--� City of Palm Desert � Council Agenda Request Meeting of January 11, 1996 i. To be considered uoder. Consent Calendar_ Rewlutions_ Ordinanas_ New Business_ Old Business_ Informational Items_, �lic Hearings� ��— 2. Item TiUe: (Please prwide t1�e word�nS t�st should appear as the ium's title on the agenda). rm, t s RECEIVE AND EILE: The Investment & Finance Committee Minutes dated November 2, 199 , approve - - an ep em er , approve - - 3. Financial: (Complete if applicable) , (a) AxounUProject# (b) Amount Roquated (c) 1n the Current Budget? (c) Appropriation Required? ppprm•ed by Director of Finance: 4. Submitted by: Lorena G. Armenta, Senior Office Assistant 5. Approvals: Depamnent Head City Manager __ . �-r-� • � � Minutes Finance Committee COIWFNE On September 7, 1995, the Investment fr Finance Committee was called to order at 337 p.m. by Mr. Gibson. ROIZ CAIZ Buford Crites, Dave Erwin, Paul Gibson, Mu�ray Maglof j; Walt ' Snyder, Bill Veazie, Ray I}iaz(Acting City ManagerJ, Lorena Armenta APPROVAL OF MINIITES Upon Motion by Mr. Mag/off, secondeal 6y Mr. Veazie, the Minutes of August 3, 1995, were API�ROVED as submitied. Motion carrred unanimousty. ORAL COMMIIrIICA7TONS None OLD BUSINESS A. tus of Pwblic and Private Partnenhip Backrround Cb� seck far Sfroru Park�d Section Four No reports we�-e given on any item. B. Status of Audit of Various Citv astd Rederxlonmr.nt Agency _ � Mr. Gibson stated Diehl Evans will be submitting next week the Desert Rose for review. NEi�BUSINESS A. City a»d Redeaelopment A,¢encv Invsisnaet Schedule Mr. Gibson reported on the Rerlevelopment Agency list under U.S Treasuries, All of Desert Rose has been sold in order to meet the time table of buying the uniu from the deve[oper. Also, Assessment District Bonds 83, 84, and 87 will be dosing on . September 16, 1995. Tbose funds will be maturin� and will also be usal for the new bond issue. Minutes F�nance Committee B. Re�for A�pmval to Invest in Collauralized Deposiu wiib tbe Bat Bid Subntiutd on Investments MatrainY in the Montb of September 1995 Mr. Gibson reported there are several collateralized deposits maturing on 5eptember 7, but will not be reinvested beca:ue tbis proceeds wi11 be used as cash requirement for the bond closing of the assessmenL district on September 26, 1995. There wiil be no collateralized deposits invested for the month of Sepbember. C. Finance Autbority Bond Issuance on September 26. 1995. Review Type of Ihvestments for tbe RefrrndisY Assessment � The commitbee recommended to place the refunding of the assessment district funds in the U.S. Treasuries. D. Tra�ufer of Tnrstu Accoxnt witb Bank of America to Trxst of California. Bank of Ame�ica bas sold tbeir Corposate Tnrstee Business w Fitst Tiust of Cal�ornia Mr. Gibson reponed Bank of America has sold their corporate hustee accounts to First Trust of California. Mr. Gibson asked the committee to review tbe transfer package; there is no urgency since the transfer will not take place till afterJanuary 1996. Mr. Gibson has two concerns which are: (IJ Where are the funds for sweep accounts when the money is sining idle,and not invested in U.S. Treasuries? (2) How are custodian accounts handled, and who are the agents? E. State of California Local Agency InvaCment Fund Montbly Report 77�is will be a monthly informational report for the committee to review. 2 Minutes Finance Committee REPORTS AND RF�uARK.c A. Amy Committee Members'Re�orts and Re�xarks Mr. Gibson reponed tbe next California Society Municipal Finance Of jicers'meeting will be held in October. Patricia Beale, the adrainistrator for tbe State vrill be addressing the organization. Mr. Veazie and Mr. Maglojj"are interested in anending. M'r. Gibson will provide the date and location of the meeting. ' Mr. Envin inquired about the status of Oscar Arntijo's letter dated January 1995. The letter was lengtby and recommended numerous changes. Mr. Erroin requested this be a priority and be completed as soon as possible. Mr. Diaz requested a copy of the letter. Mr. Erwin requasbed this item be placed on the ne�ct agenda witli a recommended policy and time lines for limitations. Mayor Cribes raqu�bed this be a priority, and copies of the letber be forwarded to ali the members to review for the next meeting. Mr. Onega distributed to all tbe members the details of the 1995 Tax Allocation Refunding Bonds (�'6,305,OOOf Recap for their revieav and information. B. Items m be Placed on Next Ag da None NEXT MEE77NG DATE Tbe next Investment fr Firrance Committee mill be October S 1995. ADJOU.RI�KFIVT The Investment fr Finance Committee adjourned at 4:12 p.m. Respectfully submitted, F_/l,rf/iLL��Q-' ?�/. .�`-YzI)ZLK.,�2 LORENA G. A ENTA RECORDING SECRETARY 3 interoffice M E M O R A N D U M TO: Ray Diaz, Acting City Manager FROM: Paul Gibson, Finance Director Subject Auditor's Letter Dated January 30, 1995 -Response as to what policies are in place now and what policies have not been done. DATE: September 26, 1995 Internal Control A�proaches that the City may wish to consider. A. Internal Auditing Procedures: At this time I would not recommend a new position due the limzted items needing review and timing of the new projects listed to be reviewed. At the 1996- 97 Budget process we can review this item again. B. At this time I am recommending that we use Diehl Evans and Oscaz Armijo to provide the compliance testing and additional audits necessary to verify projecdcontract compliance. Each project will be independently reviewed and recommended to the Finance committee and then finalized to the City Council. �ecific Suggestions regarding internal coutrol systems and procedures. 1. Cash and Investments: A. In hiring the new investxnent manager I agree that the duties need to be sepazated so that the check and balances will be in place. This will be accomplish by having either Agnes or myself receiving all trade confirmations and verifying to what has been approved. Reconciliation of all cash accounts is currently handle separately with Bazbaza Wright reconciling all cash accounts to the City's ledger's. Agnes post all journal entities to the ledgers. B. Wire transfers: .We currently have in writing with Bank of America who is authorized to make the transfers and who they call to confirm that the transfer is authorized. Bank of America has specific limits on wire transfers. All investment transactions aze authorized by FAX to custodian of our account- Bank of America for Trust accounts and Bank of New York for City's investment account. The faa{is then follow up with an original. All wire transfers aze done by delivery versus payment basis as expiained by auditors. As per the City's investment policy all funds over l OQ000 our back by collateralization as required by state law. The City utilizes a financial service that quar[erly rates all baoks and savings and loans, which the City only uses ones in the A rating category. Ray Diaz, Acting City Manager Page 2 September 26, 1995 Cash disbursements -All checks aze locked up in the computer room. City Council does not allow signature plates except for City Council facsimile stamps which is held in the City Clerk locked desk. Bank reconciliation is performed monthly on all cash balances. Current Projects needing either a Limited Procedures Review or a Certified Audit are: 2. Transactions with Non-Profit entities has been implemented by amending the agreements signed with the entities to include the items suggested by the auditors. 3.County of Riverside - Cost allocation plan for fire, police, street maintenance. I recommend that this be done in conjunction with all the cities that contract for these services. This could either be done through CVAG or Cove Commission. 4. County of Riverside -Housing Authority - A limited procedures review should be done on the Housing Authority. Specifically on the Low and moderate income subsidy projects. S.Portola Palm Mobile Home Park - Should have a certified audit done on the Associations books. 6.Civic Center Barrio - Desert Rose - Should require that they have a certified audit done on them. Each yeaz should be audited until project is sold out. 7. Franchise Agreements: 1. Colony Cable - Their books were audited at time of transfer to new owners(April 95) and the City will require a new audit on the 1995 calendaz year fees. 2. Waste Management - We have audited their books every other yeaz and aze due for an audit. 3.S.C.E. and So. Calif Gas have not been audited due to the complexity of their organizations. M.R.C. (Sales Tax Audit Consultants) have performed an audit on both of these entities and it took azound two years to complete the audit. I requested that they send a proposal for our consideration. 10/03/95 19:34 '$714 757 2707 DIEHL.EVANS & CO _ �002 D��-n..,Ev�vs &Colvrn� �,��^���� °�^ MICHAEIR,LIiLMh',LPA CFRf4'1E�PIIDLIC PCCOUN7MT5 CdAIG W'.:ppq�4,CP.� PHILIP H.YOLTKAMf CFA R PARi�:FA411P:N�WIMN.:r�L[YY\T4+CY CDR.LYlAMWS :.iQNwS M.PFRlLri4�.Ci:a 18qC1 VON KA[iMqN AVP.,SUITE ta^ r�+`�'1 s'ct�xwoea,can IRVItiE,CA:.IRJRNIA 92775-1542 PHIXJE(719)757-77tX? FAX{714) 157-2707 OcOober 3, 1995 TO: PAUL GIBSON, DIIiECTOR OF FINANCE PROM: NITIN PATEL �; CASH AND INVESTMENTS Listed below are some of the audit steps we completed as part of the audit of the City of Pafm Deserl:'s financial statements for the year ended June 30, 1995: 1. We confirmed all cash and investments with banks and/or broke[s as of June 30, 1995 and compared the amounts on reported on the confitmations to the amounts recorded an the generalledger. 2. We reviewed cash transfers betwean bank accounts Fve days before and five dxys after June 30, 2995. 3. We reviewed the bank reconciliatioc�s and compared the amounts on the bank reconciliations to the amounts recorded on the genera3ledger as of June 30, 1995. As part of the review of the bank reconciliations, we testcd outstanding checks and deposits in transit. 4. We reviewed the investment policy applicable for the Yiscal year and on a limi0ed basis we tested compliance with the City's adherence to the invesunent policy. Among the specific items we reviewed for the year ended June 30, 1995 were (1) The investment policy limiting imestments in certificates of deposits in any one insplution to $5,000,000 (2) the liquidity requirements of the investrnent portfofio and (3) the imestment policy limiting imestments in azry institucion ta 15� of the investment porttbiio (e�ept for investments in LAIF' and Government Issues). lt should be noted that we did not review the financial strengths of banks that the City invests with and our review of the City's compliance with the investment policy for the above items was as of June 30, 1995. QII-IER OFFIG�$AT: L'MS ROQSEVELT 6fREET 61J W ViV1EYA+JU'WAY.SL�fTE)]p CARLSM�.CA 93�2369 ESCONOR%?.G 9.W 5459P �619)7E9.2743 (619)1513141 Fh%(6l9)729.2234 PWi fhlV)7119890 S7ATE OF CALIFORNIA MATf FONG, Treas�ier OFFICE OF THE TREASURER SACRAMENTO : u LOCAL AGENCY INV&STMENT FLTND P.O. BOx 942809 Date: 08/31/95 SACRAMENTO, CA 94209-0001 Page: O1 AUGUST, 1995 STATEMENT ACCOUNT NUMBER: 65-33-015 PALM DESERT REDEVELOPMENT AGENCY ATTN: PAUL GIBSON, TREASURER 73-510 FRED WARING DRTVS PALM DESERT CA 92260 EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION DATF3 DATE TYPE NO CALLER AMOUNT BALANCE --------- ----------- ---- ------ ------ --------------- --------------- BEGINNING BALANCE - REG $20.000,000.00 NO ACTIVITY IN REGULAR ACCOUNT ENDING SALANCE - REG $20,000,000.00 � -n c: 'Ii _ -{ CJ� n. < rn � � -r� � _� N m 7 U1 r,s 2. r-� r a; — —O b ' � � � —r r• N � �" Rl � � ? N 4l. i STATE OF CALIFORNIA MATT FONG, Treas�ier OFFICE OF THE TREASURER SACRAMENTO LOCAL AGENCY INVESTMfiNT FUND P.O. BOX 942809 Date: 08/31/95 SACRAMENTO, CA 94209-0001 Page: 02 AUGUST, 1995 STATEMENT BOND PROCEEDS ACCOUNT NUMBER: 65-33-015 EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION DATE DATE TYPE NO CALLER AMOUNT BALANCE --------- ----------- ---- ------ ------ --------------- --------------- BEGINNING BALANCE - B/P $4,000,000.00 B/P ID: 8902071 MATURITY DATE: 09/06/95 BEG BAL: $4,000,000.00 END BAL: $4,000,000.00 --------------- ENDING HALANCE - B/P $4,000,000.00 --------------- ENDING BALANCfi - REG $20,000,000.00 GRAND TOTAL $24,000,000.00 --------------- --------------- SUMMARY TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITFIDRAWAL AMT ---------- ----------------- -------------------- REG 0 $0.00 $0.00 S/P 0 $0.00 $0.00 ---------- ----------------- -------------------- TOTAL 0 $0.00 $0.00 Newton Russell raised a point of order as to whether the amendment was germain. At that time the sponsors finally gave up and iadicated they wished to make AB 317 a two year bill to be considered in January. City officials should contact Senator Russell W thank him for his effotts to stop this bill and also contact their Senators to oppose AB 317 for its January reconsideration. The measure is expected to be revised from its current form; however, the grocers and the author have made it abundantly clear that local preemption is their ultimate goal. Keep up the pressure on your senators. Abandoned shopping cart control is not exclusively a state concem. [League Staff: David Jones] 13. Drinking Water. FlaoridsHon. [AB 733 (Speier)-Neutral] On Govemor's Desk-Information. j AB 733 was passed by the Legislature and sent to the Govemor. It would establish a process that ( would require all water systems with more than 10,000 connections to meet specified I fluoridation conteat standards. Water agencies would g�be required to meet the standard unless ' funds are provided by the state for the capital and ongoing operation/maintenance costs. It is not clear where such funds will come &om, but potential ideas include bonds, g�xants, or private funding. With the funding issue satisfactorily addressed so that thete is not cost to local governments, the League took a neutral position on A�]3�. (Referred to previously in I Bulletins#9-1995, and 15-1995.) [League Staff: Yvonne Hunter] � 14. �hang�d Status of Bilis Previou.�y R�orted. � (a) City Charter Amendments. � IS&�1�oPP)- Oppose] Author Backs Down&om Attempt to Seek Veto Override Senator Kopp abandoned his intentions for the 1995 session to seek a VETO OVERRIDE of his SB 61, a bill to reduce the number of sigoatures required to qualify a city charter amendment for a local ballot. The bill proposes the following: 1. Change the basis for calculating the number of signat�ues needed w qualify a proposed initiative amendment to a city charter. Under current law, 15 percent of the Igg1St� voters are required to qualify a charter amendment(10 percent of registered voters in San Francisco). SB 61 changes the standard to 15 percent (10 percent in San Francisco) of the voters in ihe ci�y inQ a vote for C3ovemor in ihe l�et gener� election. #35 11 9/20/95 �� „ �d-�m L i ,. .. _ _ 4 2. Reverse le 'slation assed, si ed ioto law and su rted b the E B� P S► ppo Y League in 1988 that established the current standard of 15 percent of the reeistered voters, '('hls change was part of a comprehensive election code clarification,update and consolidation. � SB 61 would have had the effect of cutting ja.]lalf the number of sigoatures nceded to qualify a proposed city charter amendment for a ballot measure. This is a substantial reduction in the number of signatures required to place a city charter amendment on the ballot. Our greatest concem is that the legislation has the practical effect of allowing access to the ballot for charter amendments to virtually any measure that has only the minimal amount of support or interest of the public at large. The author could renew his attempts to secure passage next year. (Referred to previously in Bulletins #28-1995, 30- 1995, and 32-1995.) [League Staff: Dwight Stenbakkea] (b) Pubtic Records Acw [SB 323 (Kopp)-Oppose] Made a Two-Year Bill This legislation was turned into a two-y�r measure quite some time ago by the author. Disagi�eements still exist between the League and the Senator over the provisions of the bill dealing with electronic access to public records. The bill can be heard again neact year in the early part of the legislative session (Refernd to previously in Bulletins #15-1995, 16-1995, and 17-1995.) [League Staff: Dwight Stenbakken] (c) Public Safety Officers: Procedural Bill of Righta. [SB 282 (Petris)- Oppose] Made a Two-Year Bill Prohibits any punitive action, or denial bf promo6on on grounds other than merit, from being undertaken for any act, omission, or other allegation of misconduct if the investigation of the allegation is not completed within one year of the public agency's discovery of the allegation of an act, omission, or other misconduct. Status: Assembly Appropriations Committee: Two-year bill. (Referred to previously in BWletins #12- 1995, 13-1995,and 14-1995.) [League Staff: Dwight Stenbakkea] (d) Local Agency Investments: Annual Imestment Policy [�¢4(Johnston) -Information] On the Govemor's Desk This bill would require a local agency treasurer to file an annual iavestment policy with the legislative body. The measure also requires the treasurer to file a qusrterly report on all securities, investments and moneys of the local agency; a statement of compliance with the investment policy; and a statement of the local agency's ability to meet the pool's expenditure requirements for the next six months. Some Snance officers have expressed concem that the report on � investments is meant to include t�vst funds, #35 12 9/20/95 retirement funds or deferred wmpensatioa funds. (Referred to previously in Bulietins #28-1995,30-1995,and 33-1995.) [Leagae Staff: Judi Smith] (e) Local Agency Investments: Invatmenb May Not Ezceed Terms of Notes [�.$fz¢(Craven) - Support] On Governor's Desk SB 866 provides that the county treasurer and each person or governing body investing public funds is a trustee and therefore a fiduciary subject to the pnuient investor standard. It further provides that the primary objectives when investing public funds is to safeguard principal,preserve liquidity and to retum an acceptable yield. SB 866 pmhibits the investment of the proceeds from tax and revenue anticipation notes and grant anticipation notes for a longer term than the funds are borrowed. These restrictions are intended to avoid the need to sell securities before they mature, at a potential loss, to obtain the needed cash to pay off maturing notes. The bill also restricts investment in repurchase and reverse repurchase agreements. The bill also provides for specific qualifications for wunty treacurcrs. (Referred to previously in Bulletins #30- 1995, 33-1995, and 34-1995.) [League Staff: Judi Smith] (� Prnperty Taa Allocation: Mono County. [SB 203 (Leslie)-Support] On Governor's Desk SB 203 would require the Mono County Auditor to retum"excess"ERAF balances to the county, cities and special districts within Mono County. In Mono County, all school districts in the county are "basic aid" districts wlrich means they receive sufficient revenues from the property tax to meet their revenue limit and thus receive no fiuther state funds for apportionments other than the constiturionally requircd $120 per AD. ERAF revenues can not be transferred to "basic aid"districts. $$ZQ�would provide that any money in excess of that amount would be rehuned to the other local agencies in proportion to the amount transfernd from them to ERAF for the 1995-96 fiscal year only. Similar legislation was enacted for Marin County in 1994. AB 825, a trailer bill to the 1995-96 state budget, provided that the excess funds could also be used to fund the state share of the local costs of special education. SB 203 would limit the use of ERAF revenues for special educaUon to $5 million in 1995-96. (Referred to previously in Bulietins#10-1995, and 11-1995.) [League Staff: Judi Smith] (g) State Mandated Local Programs. [�11(Ayala) - Support] On Governor's Desk SB 11 would reform the state-mandated program reimbursement process by requiring quicker reimbursement of local costs. The bill would also require the state to pay interest #35 13 9/20/95 .� � i on any mandated costs which are not reimbursed withia 12 months after the adoption of a � statewide cost estimau. In addition, it would provide city represemation on the Commission of State Mandates. (Referred to previously in Bulletins#27-1995,28-1995, t and 34-1995.) [League Staff: Judi Smith] (h) Police PmtecHon Services Assessmenta. [�H124Z(Thompson) -Information] . On Governor's Desk SB 1247 would allow the formation of a police services benefit A �cme�dis�ict upon petition of the property owners in portions or all of a city or county. The city wouid be required to place the issue on the ballot upon submission of a valid petition. The bill would require no city council action to astablish We d.istrict other than to cettify tl�at the petition was valid. The benefit assessment could not be imposed unless approved by a majority of the voters in the proposed district. Benefit assessmeat disroricts would be able to fimd a lrigher levei of service in areas of the city that either desired or could afford a highcr levei of service. This could lead to decreased public support for police semce in azeas of the city most in need of police services,but unable to provide the necessary funding for increased services through benefit assessments. Expendihues from police services benefit assessmenu appmved under Hus measure would have to be over and above the Proposition 172 maintenance of effort requirements. (Refeired to previously in Bulletins #15-1995, 21- 1995, and 25-1995.) [League Staff: Judi Smith] (i) Pmperty Tai Lien Date. [SB 327 (Campbell)-Oppose] On Govemor's Desk SB 327 would change the lien date for property tax purposes from March 1 to January 1. The annual statewide property ta�c loss is estimated from $15 million to $30 million. (Referred to previously in Bulletins#25-1995 and 30-1995.) [League Staff: Judi Smith) (j) Allocation of Use Ta:on Leased Veh[ctes. [SB 602 (Wright)-Information] On Govemor's Desk This bill would allocate the use tax paid on leased vehicles ia the same manner as the sales tax paid on purchased vehicles. (Referred to previously in Bulletins #30-1995, 32- 1995, and 34-1995.) [League Staff: Judi Smith] #35 14 9/20/95 , STATE OF CALIFORNIA MATT FONG,Treasurer OFFICE OF THE TREASURER SACRAMENTO Y LOCAL AGENCY INV8STM8NT FUND P.O. BOX 942809 Date: OS/31/95 SACRAMENTO, CA 94209-0001 Page: O1 AUGUST, 1995 STATEMENT ACCOUNT NCTMBER: 98-33-621 CITY OF PALM DESERT ATTN: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION DATE DATE TYPE NO CALLER AMOUNT BALANCE --------- ----------- ---- ------ ------ --------------- --------------- BEGINNING BALANCE - REG $13, 160,451.32 NO ACTIVITY IN REGULAR ACCOUNT --------------- ENDING BALANCE - REG $13, 160,451 .32 NO BOND PROCEfiDS --------------- GRAND TOTAL $13, 160,451 .32 --------------- --------------- SiJMMARY TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITI-IDRAWAL AMT ---------- ----------------- -------------------- REG 0 $0.00 $0.00 B/P 0 50.00 $0.00 ---------- ----------------- -------------------- TOTAL 0 $0.00 $0.00 � � � � _-, cn > < rn ; � � � � N m CJl Y � "� r � n � � � m -� m N i '• m rn � � � N � � CC : � I-�e.m.D" SUMMARY OF INVESTMENT DATA FOR THE POOLED MONEY INVESTMENT ACCOIINT A COMPARISON OF AUGUST 1995 WITH AUGUST 1994 (Dollars in Thousands) AIIGIIST 1995 AUGUST 1994 CHANGE AVERAGE DAILY PORTFOLIO TOTAL $25,261,428 $27, 179,798 $ - 1, 918,370 TOTAL EARNINGS ON ACCRUAL BASIS $ 126,448 $ 115� 163 $ + 11,285 EFFECTIVE YIELD 5.910 4 .989 + .921 AVERAGE LIFE OF PORTFOLIO ON THE LAST DAY OF THE MONTH (IN DAYS) 300 435 - 135 SECURITY TRANSACTIONS $24, 323 , 070 $26, 577, 367 $ - 2, 254,297 TIME DEPOSITS $ 194 , 695 $ 39, 095 $ + 155, 600 AVERAGE WORKDAY INVESTMENT ACTIVITY $ 1, 065,990 $ 1, 157, 237 $ - 91,24� NUMBER OF SECURITY TRANSACTIONS 564 587 - 23 NUMBER OF TIME DEPOSITS 21 7 + 14 AVERAGE PRESCRZBED DEMAND COMPENSATING BANK BALANCES $ 142 , 310 $ 209, 359 $ - 67,049 FOR SERVICES AVERAGE PRESCRIBED DEMAND BANK BALANCES FOR UNCOLLECTED FUNDS $ 155,891 $ 291� 684 $ - 135,793 LOCAL AGENCY INVESTMENT FOND* SUMMARY OF ACTIVITY AOGOST 1995 BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE $9�559� 054�549.55 $1,067,800,000.00 $1,251� 045� 118.16 $9,375,809,431.39 *Local Agency Investment Fund Invested Through Pooled Money Investment Account � STATE Of CAIiFORN1A MATT FONG, Troaaurer OFFICE OF THE TREASURER � SACRAMENTO September 8 , 1995 TO ALL LOCAL AGENCY INVESTMENT FU1VD PARTICIPANTS I am excited to share with you a new feature for the participants of LAIF which will take effect on October 1, 1995. 1) Ail Bond dollars currently in the LAIF under"regular" accounts will be separated to a new account specificaily for bond dollars. 2) Each bond account will have its own account number and PIN ID number. 3) Bond identification numbers and maturity dates will remain the same for those who currently have bond money on deposit. 4) Interest earned on Bond dollars for the quarter ending September, 1995 will be deposited as usual to the current regular account. 5) Interest on Bond accounts for the quarter ending December, 1995 and thereafter will be directly deposited to the new Bond accounts. 6) Additionalty, agencies may add to an existing Bond proceed balance monies from the same Bond issue by notifying the LAIF in advance of the deposit. If you currently have Bond Proceeds deposited with LAIF you will fnd included a copy of your agency's information as represented on the LAIF system. We ask that you review and make any corrections necessary and return to LAIF as soon as possible. _ Beginning with your October 1995 statement, you will notice a change. Each agency's statement will indicate the beginning balance, all transactions or adjustments and ending balance for that specific agency. There will be no cross referencing between Regular and Bond Proceed accounts or references to "regular" balances on Bond Accounts. Since Bond Accounts do not have regular balances, and since that amount represents interest for that account, the word "regular" will be replaced with the word "interesY'. The Board and I believe this change will assist those of you who now calculate and distribute interest between your regular and bond deposits. Further, the amount of interest deposited to your bond account will not have to be immediately withdrawn should it exceed the cap of$20 million, since there is no cap requirement for bond deposits. We are here to assist you, and should you have any questions regarding these changes feel free to contact me or any member of the Advisory Board, or LAIF Staff members. Si r,ely, //�=�- . .�C�.c�� Patricia A. Beal Administrator Local Agency Investment Fund (916) 6533001 MEMO To: INVESTMENT COMMITTEE From: Paul S. Gibson, Director of Finance Subject: Information on LAIF Date: October 27, 1995 At our California Society of Municipal Finance Officers - Coachella Valley Chapter meeting on Friday, October 20, 1995, as chapter president for this year, I had extended an invitation to Pat Beal, LAIF Administrator to be our guest speaker. Her presentation regarding LAIF Investments was excellent and informative. The following is a synopsis of that presentation which was also covered in the handout that she shared with the attendees. In attendance from our Investment Committee were Murray Magloff, Jean Ruth and myself. Background: Local Agency Investment Fund (LAIF) created in 1977 by statute as an investment alternative for California's local governments and special districts during the Jesse Unruh Administration. Membershin: 1977 - 293 participants, $468 Million 1995 - 2,323 participants, $ 9.3 Billion Oversight bv: Local Agency Investment Advisory Boazd(5-Members), Chaired by the State Treasurer or his/her designated representative. - Two members are qualified by training and experience in the field of investment or finance. - Two members are either Treasurers, Finance or Fiscal Officers or Business Managers employed by any county, city or local district or municipal corporation, appointed by the State Treasurer for a term of two yeazs, or at the pleasure of the appointing authority. Investment Polick Covered under Government Code, Section 16430 and 14380.4, and formulated by investment staff and reviewed by two Investment Advisory Boazds to ensure that the goals of Safet�. Liquidity and Yield (SLY) and prudent management of the portfolio aze enforced. Audits Performed: Annuai Audits -performed by State Bureau of Audits Daily Audits of State Controllers Office by the Departrnent of Audits -- includes ensurance that pool size and portfolio size of investments are according to investment policy; that all brokers who do business with the Treasurer's Office go through the process of background and qualification checks. This in-house audit process involves three sepazate divisions. �t.M -!J INVESTMENT COMMITTEE Page 2 October 27, 1995 (Audits Performed, cont.) Investment Portfolio Audits - cunently in the process of RFPs for outside audit firm to ensure compliance to investment policies, restrictions, regulations, etc. Investment Restrictions: ♦ 302 days of maximum investment maturity ♦ *Not involved in derivatives per definition by U.S. General Accounting Office (GAO) ♦ $20 Million maximum investment limit per entity ♦ Not involved in"investment swapping" ♦ Not involved in inverse floaters, future options, structured notes ♦ Investments in bills aze restricted to U.S. Treasury Bills ♦ Losses aze only limited to "book losses" ♦ Credit analysis (includes analysis of every agent of investment) is done daily by a staff member who is dedicated to this function *Reverse Repurchase Investments: This inveshnent is included in the investment portfolio. It is not considered a derivative since they are matched to maturity dates. Only investments owned by the Treasurer's Office are reversed and are usually overnight repos. PSG:AGF:rdk PORTFOLIO HOLDINGS: DERIVATIVES STRUCTURED NOTES, AND ASSET-BACKED SECURITIE$ The Treasury Investment Division has received a number of inquiries concerning our various portfolio holdings . Questions involving structured notes, derivative products, and asset-backed securities are the most notable. We have found that the lack of acceptable definitions regarding these financial products has led to confusion and disagreement with our reported positions . In an effort to clarify the information provided in our monthly statements, we would like to share with you our understanding of these financial products, as defined by the U.S . General Accounting Office (GAO) . In a recent survey of sales practices for these financial products the GAO provided definitions and examples of what they considered 1) plain vanilla OTC derivatives, 2) more complex OTC derivatives, 3) structured notes, and 4) asset- backed securities . Following are the GAO definitions, as well as the State of California Treasurer' s holdings in each category as of October 1, 1995: 1 . Plain Vanilla OTC Derivative Products A dezivative product is a financial instzument whose market value is derived from a reference rate, index, or value of an underlying asset. OTC derivatives are privately negotiated contracts and are not traded on organized exchanges . U.S . $ 0 As of: 10/O1/95 2 . More Complex OTC Derivative Products Other more complex OTC derivatives have at least one of the following characteristics: a. Their prices tend to be di£ficult to obtain because they are often available from only a few dealers . b. The payments required by the derivative contract are calculated on the basis of more than one interest rate, currency, asset, or other factor. i c. The derivative contract has terms that are not determined until some future date. d. The contract involves a term that acts as a multiplier or increases the leverage of the rate (s) used to compute payments . e. The contract CAN entail potentially unlimited risk. U.S . $ � As of: 10/O1/95 3 . Structured Notes Structured notes are debt securities (other than asset- backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options . They are issued by corporations and by government- sponsored enterprises such as the Federal National Mortgage Association and the Federal Home Loan Bank System. U.S . $773. 425 million As of: 10/O1/95 4 . Asset-Backed Securities Asset-backed securities, the bulk of which are mortgage- backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMOs) or credit card receivables . U.S. $334 .514 million As of: 10/O1/95 Securities Accountability 1) Vanilla Derivatives H 2) Complex Derivatives H 3) Structured Notes a. Callable Agency $ 12 . 175 million b. 3 month LIBOR Agency Floater $ 220 . 000 million c. 3 month LIBOR Corporate Floater $ 515. 000 million d. 2 year CMT Corporate Floater $ 26.250 million 2 4) Asset-Backed a. Small Business Association Pools $ 69.096 million b. Agency CMOs $ 180. 619 million c. GNMA Pools $ 43 . 610 million d. FHLMC PC Pools $ 41 . 189 million Total Portfolio As of: 10/O1/95 $25, 823, 159, 805.10 Financial Products as a percent of portfolio: 4� 3 STATE TREASORER�S OFFICE INVESTMENT DIVISION PROCE$B FOR GI2ANTING APPROVED HRORER-DEALER BTATUB o Receive request from firm. o Review at the staff level. o Minimum criteria that must be met before staff even considers reviewing the request. o The firm must be registered with SEC as a broker-dealer. A copy of their SEC Form BD is often requested as a means of verifying this information. The firm must be an active participant when trading with this office (i.e. , orders will be placed directly with the firm, not with another broker-dealer for credit to the first firm) . o The firm must have been in business at least one year. A copy of their latest, audited financial report may be used to verify this condition. o Background information on the firm is requested particularly as it relates to the amounts and types of money market trading done by the firm. Annual reports, financial statements, letters and company brochures are the usual sources of this information. o Resumes for the employees of the firm with whom we would be dealing are required. o Possession of the minimum criteria does not automatically insure that a firm will be recommended by staff for inclusion on the approved list of broker-dealers. Due to our limited staff resources, it is not possible to have the Investment Division entertain offerings from every firm that meets our minimum qualifications. Additional factors are considered before recommending a firm to the Investment Committee. o Would the proposed new firm add value to our investment program? Does it provide or improve market coverage for a segment of our portfolio which we feel needs upgrading? Can the firm provide us with a different perspective of the national or regional economies than we get from our existing group of approved broker-dealers? o Are the key people in the firm people with whom we have dealt before and who have been effective in advancing the goals of our investment program in the past? o Is the firm a targeted business enterprise (i.e. , owned and controlled by a woman, minority or a service disabled veteran) ? o Is the firm California based or would there be a positive impact on the California economy by approving it for business? o Staff write-ups are prepared for Investment Committee review and approval for all firms for which the staff recommends approval. Review packages are not submitted to the Investment Committee for firms not recommended for approval by the staff. o Upon approval by the Investment Committee, the firms are notified. Various documents related to delivery of securities must be completed prior to executing any trades. 7/21/95 DDS STATE OF CALIFORNIA POOLED MONEY INVESTMENT ACCOUNT APPROVED COMMERCIAL PAPER ISSUERS OCTOBER 1995 Abbott Laboratories Heller Financial, Inc. AlliedSignal, Inc. Hertz Corporation American Brands, Inc. Hewlett-Packard Company American Express Credit Corp. Home Savings Of America, FSB American Home Products Corp. Honeywell Inc. American Telephone & Telegraph Corp. Household Finance Corp. Armstrong World Industries Inc. IBM Corporation Associates Corp. ofNorth America IBM Credit Corporation Atlantic Richfield Company (ARCO) ITT Corporation Avco Financial Services, Inc. Illinois Power Company BanCal Tri-State Corp. Ingersoll-Rand Company BankAmerica Corporation J.C. Penney Funding Corp. Bankers Trust New York Corp. J.P. Morgan& Company, Inc. Barclays U.S. Funding Corp. John Deere Capital Corporation Baxter International Corp. Lehman Brothers Holdings Inc. Bear Stearns & Co., Inc. Mellon Financial Company Beneficial Corp. Merrill Lynch & Company, Inc. Bristol-Myers Squibb Co. Minnesota Mining &Man£ Co. (31vn CIT Group Holdings Inc. Monsanto Company CPC Intemational Inc. Morgan Stanley & Company Campbell Soup Co. Pacific Gas&Electric Co. Caterpillar Inc. PepsiCo, Inc. Chase Manhattan Corp. Pfizer, Inc. Chemical Banking Corp. Philip Morris Companies, Inc. Chevron Oil Finance Co. Quaker Oats Company Chrysler Financial Corp. Rohm &Haas Finance Co. Citicorp Salomon Inc. Commercial Credit Co. Scott Paper Company Commonwealth Edison Co. Sears Roebuck Acceptance Corp. ConAgra, Inc. � Smith Barney Inc. Countrywide Funding Corp. Southem California Edison Co. Dean Witter, Discover& Co. Textron Financial Corporation Dow Chemical Company Textron Inc. Eastman Kodak Company Transamerica Finance Corporation Enron Corporation Travelers Inc. (Primerica) First Chicago Corporation USL Capital Corp. First Interstate Bancorp Union Commercial Funding Corp. Ford Motor Credit Company Union Oil Company Of California General Electric Capital Corp. Upjohn Company General Electric Company Wells Fargo & Company General Motors Acceptance Corp. Weyerhaeuser Company Great Western Bank, FSB Xerox Corporation Halliburton Company �xtovs.a« STATE OF CALIFORNIA POOLED MONEY INVESTMENT ACCOUNT APPROVED CORPORATE BOND ISSUERS OCTOBER 1995 AT&T Capital Corporation Associates Corp. ofNorth America Atlantic Richfield Company (ARCO) BankAmerica Corporation Bankers Trust New York Cotporation Baxter Intemational Inc. Chase Manhattan Corporation Chemical Banking Corporation Chevron Corporation Cincinnati Bell Inc. Citicotp Dupont (E.I.)De Nemours& Company E�ocon Corporation Ford Motor Credit Company General Motors Acceptance Corporation Great Western Bank, FSB Home Savings Of America, FSB IBM Corporation IBM Credit Corporation Indiana Bell Telephone Company Indianapolis Power& Light Company J.P. Morgan And Company, Inc. Madison Gas & Electric Company Merck & Company, Inc. Minnesota Mining And Manf Company(31� Pacific Bell Pacific Gas And Electric Company Procter And Gamble Company Ralston Purina Company Shell Oil Company . Southern Califomia Edison Company Times Mirror Company Transamerica Finance Corporation Union Pacific Corporation Wells Fargo & Company Wisconsin Electric Power Company Wisconsin Power&Light Company Wisconsin Public Service Corporation World Savings Md Loan � cbexl095.doc TRI-PARTY AGREEMENT INSTRUMENT OF RESIGNATION, APPOiNTMENT AND ACCEPTANCE, dated as of October _, 1995 by and among the Palm Desert Redevelopment Agency, (the "Issuer"), a public body, corporate and politic, City National Bank ("Fiscal Agent"), a national banking association duly organized and existing undet the laws of the United States of America having an office at 400 North Roxbury Drive, 7th Floor, Beverly Hills, Califomia 90210, and Bank of America National Trust and Savings Association ("Bank"), a national banking association duly organized and existing under the laws of the United States of America, having a corporate trust office at 333 South Beaudry Avenue, 25th Floor, Los Angeles, California 90017 WHEREAS, the Issuer directed the execution and delivery of $30,000,000 original principal amount of its Project Area No. 1, As Amended, Tax Allocation Bonds, Issue of 1982 (the "Bonds"), under Palm Desert Redevelopment Agency Resolution Nos. 154, as amended, 155, 156 and 159 (the "Resolutions"). WHEREAS, the Resolutions provide that the Fiscal Agent may at any time resign by writing filed with the Issuer; WHEREAS, the Fiscal Agent has given the Issuer a written notice of its resignation as Fiscal Agent under the Resolutions, a true copy of which is attached hereto as Exhibit "A'; WHEREAS, the Resolutions further provide that, if the fiscal agent shall resign, the Issuer shall forthwittt appoint a substitute fiscal agent; WHEREAS, the Issuer by its execution hereof accepts the resignation of Fiscal Agent as fiscal agent, and appoints Bank as substitute fiscal agent; WHEREAS, the Resolutions provide that any resignation by the Fiscal Agent shall become effective upon acceptance of appointment by the substitute fiscal agent; WHEREAS, Bank is qualified, eligible and willing to accept such appointment as substitute fiscal agent; and NOW, THEREFORE, for and in consideration of these premises and of other good and valuable consideration, the receipt and sufficiency of which aze hereby acknowledged, it is hereby covenanted, declazed and decreed by the parties hereto as follows: 1. The resignation of Fiscal Agent as fiscal agent and its dischazge from the trust created by the Resolutions shall be effective as of the later of the date stated in the notice given Issuer and the date hereof upon the execution and delivery of this Instrument by all the parties hereto. � � c� - __.� -" , � c� `_`� r�� �n _1_ � , � � �= � �:_ -� � :, � 'J r,,. :�� ,�n ,`-�; cn � a � � " J-4-em F 2. The Issuer, in the exercise of the authority vested in it by the Resolutions, hereby appoints Bank as substitute fiscal agent, with all rights, powers, trusts, dutzes and obligations of Fiscal Agent under the Resolutions, such appointment to be effective as of the date hereof upon the execution and delivery of this Instrument by all the parties hereto. 3. Bank hereby represents and warrants that it is qualified and eligible under the provisions of the Resolutzons to be appointed substitute Fiscal Agent, and hereby accepts its appointment as substitute Fiscal Agent, effective as of the date hereof upon the execution and delivery of this Instrument by all pazties hereto, and hereby assumes the rights, powers, trusts, duties and obligations of the Fiscal Agent under the Resolutions, subject to all terms and provisions therein contained. Without limiting the generaliry of the foregoing, Fiscal Agent agrees to give notice of its resignation and the appoinUnent of substitute Fiscal Agent to holders of Bonds, included in such notice shall be directions on where holders can submit bonds and coupons for payment. 4. Fiscal Agent hereby grants, gives, bargains, sells, remises, releases, conveys, confirms, assigns, transfers and sets over to Bank and its successors and assigns, all rights, title and interest of Fiscal Agent in and to the trust estate and all rights, powers and trusts under the Resolutions; and Fiscal Agent does hereby pay over, assign and deliver to Bank any and all money, if any, and property, if any, held by Fiscal Agent; and the Issuer, for the purpose of more fully and certainly vesting in and confirming to Bank as such substitute fiscal agent said estate, properties, rights, powers and at the request of Bank, joins in the execution hereof. 5. Notwithstanding the resignation of Fiscal Agent under the Resolutions, Issuer shall remain obligated under the Resolutions to compensate, reimburse and indemnify Fiscal Agent in connection with its duties under the Resolutions. 6. The parties hereto agree that this Instrument does not constitute an assumption by Bank of any liability of Fiscal Agent azising out of any breach by Fiscal Agent of its duties or obligations under the Resolutions (a "Prior Liability"). If, and to the extent that, Bank is not indemnified by Fiscal agent, the Issuer agrees to hold Bank harmless against any Prior Liabilities. 7. The parties hereby agree, upon reasonable request, to execute, acknowledge and deliver such further instruments of transfer and further asswances and to do such other things as may reasonably be required for more fully and certainly vesting and confirming in Bank all the property, rights, powers, duties, trusts, immunities and obligations of Fiscal Agent under the Resolutions, and confirming and completing the resignation of Fiscal Agent. 8. In consideration of Bank's agreement to serve as substitute Fiscal Agent, Fiscal Agent hereby agrees to indemnify Bank to the extent set forth on Exhibit "B" attached hereto and incorporated herein. -2- 9. 1'his Instrument may be executed in any number of counterparts, each of which shall be an original but such counterparts shall together constitute but one and the same instrument. 10. This Instrtunent shall be governed by and construed in accordance with the laws of the State of Califomia. 11. Each of the parties hereby represents and warrants for itself that as of the date hereof: (a) it has the power and authority to execute and deliver this Instrument and to perform its obligations hereunder, and all such action has been duly and validly authorized by all necessary proceedings; (b) this Instrument has been duly authorized, executed and delivered by it, and constitutes a legal, valid and binding agreement; (c) in the case of Fiscal Agent and Bank, it is a bank duly organized and validly existing under the laws of the jurisdiction set forth in the first pazagraph hereof, with the full rights and power to act as a fiscal agent in such jurisdiction, and all information provided by it hereunder with respect to its ability to act as a fiscal agent is true, complete and correct; (d) in the case of Issuer, it has obtained all required approval of any party whose approval may be required therefor to execute and cany out the terms of this Instrument; and (e) in the case of Bank, it knows of no reason why it is not and will not be able to carry out its duties as substitute Fiscal Agent. 12. All notices, demands, and other communications required or permitted hereunder to be effective shall be made in writing or by telex or telecopy and, unless otherwise expressly provided herein, shall be deemed to have been duly given and received when delivered by hand, or, if mailed, three (3) business days after deposit in the mail, with postage prepaid for registered or certified mail, return receipt requested, or, in the case of telex or telecopy notice, when sent, if answerback or co�rmation received, and addressed to the pazty at its address set forth below, or at such other address as the party shall have furnished the other party in accordance with this Section. BANK: Bank of America NT&SA Corporate Trust #8510 333 South Beaudry Avenue, 25th Floor Los Angeles, California 90017 Attention: Robert Schneider -3- FISCAL AGENT: City National Bank 400 North Roxury Drive, 7th Floor Beverly Hills, CA 90210 Attention: Bertha Zink 13. The parties intend that the terms of this Instrument, including the attached exhibits, shall be the final expression of their agreement with respect to the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties further intend that this Instrument shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative or other legal proceeding involving this Instrument. The Instrument may not be amended except upon the written wnsent of all parties. 14. This Instrument shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns. Except for those enumerated above, this • Instrument does not create, and shall not be construed as creating, any rights or claims enforceable by any person or entity not a party to this Instrument. 15. The respective representations, warranties, conditions and covenants of each par[y (a) shall not be deemed waived or otherwise affected by any investigation made by or on behalf of the other party, and (b) shall survive the execution of this Instrument and the consummation of the transactions contemplated hereby. 16. (a) Any controversy or claim between Fiscal Agent and Bank and any claim based on or azising from any alleged tort by either of them, shall at the request of either such party be determined by arbitration, which shall be held in Los Angeles, California. The azbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA") and, to the extent not inconsistent therewith and notwithstanding any choice of law provision in this Instrument, in accordance with the United States Arbitration Act (Tifle 9, U.S. Code). The azbitrator shall give effect to statutes of limitation in determining any claim. Any controversy concerning whether an issue is azbitrable shall be determined by the azbitrator. Judgment upon the azbitration awazd may be entered in any court having jurisdiction. The institution and maintenance oF an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to azbitrarion if any other party contests such action for judicial relie£ This Section 15(al shall not limit the right of any party to this Instrument to exercise self-help remedies such as setoff or to obtain provisional or ancillary remedies from a court of competent jurisdiction before, after, or during the pendency of any azbitration or other proceeding. The exercise of a remedy does not waive the right of either party to resort to azbitration. -4- (b) Where the azbitrator determines that there is a prevailing party in the azbitration, the azbitrator shall assess against the non-prevailing party all expenses of the azbitration as well as all other reasonable out-of-pocket expenses of the prevailing party (including reasonable attorney costs). IN WITNESS WHEREOF, the parties hereto have caused this Instrument of Resignation, Appointment and Acceptance to be duly executed all as of the day and yeat first above written. Palm Desert Redevelopment Agency, as issuer By: Its: Bank of America National Trust and Savings Association, as substitute fiscal agent By: Its: Assistant Vice President City National Bank, as resigning Fiscal Agent sy: -5- N:\iRUST J\WPSI�SCFQJF.mERWOTICENDIO]96t002 EXHIBIT "B" October _, 1995 Bank of America National Trust and Savings Association Corporate Trust Division, #8510 333 South Beaudry Avenue, 25th Floor Los Angeles, CA 90017 Attention: RobeR Schneider Deaz Mr. Schneider: We aze Fiscal Agent under the Palm Desert Redevelopment Agency Resolution Nos. 154, as amended, I55 156 and 159 ("Resolutions") pursuant to which the Palm Desert Redevelopment Agency (the "Issuer") issued $30,000,000 principal amount of Project Area No. 1, As Amended, Tax Allocation bonds, Issue of 1982. We have previously requested that you, Bank of America National Trust and Savings Association ('Bank"), become substitute Fiscal Agent under the Resolutions and you have indicated your willingness to become substitute Fiscal Agent provided certain conditions aze met. Therefore, we offer the following indemnities to Bank if you agree to the conditions of this letter and the Tri-Party Agreement to which it is an e�chibit, and aze appointed substitute Fiscal Agent; I. OUR INDEMNITIES A. Unfil the satisfaction and dischazge of the Indenture, we agree to indemnify Bank and defend and save you hazmless from and against any and all costs, claims, liabilities, expenses, losses or damages whatsoever (including all your reasonable fees, expenses and disbursements of your counsel) that you may incur as a result of your accepting appointment and acting as substitute Fiscal Agent under the Resolutions and azising out of our actions or omissions that constitute wilful misconduct, bad faith or negligence, if any, during the term of our fiscal agent capacity, as determined on the basis of the provisions contained in the Resolutions. B. However, we expressly do not agree to indemnify Bank: 1. for fees, chazges or liabilities incurred by you as a result of your own wilful misconduct, bad faith or negligence, as determined on the basis of the provisions contained in the Resolutions; or -1- 2. for your failure to execute properly your duties as substitute Fiscal Agent, as determined on the basis of the provisions contained in the Resolutions; or 3. for any compromise or settlement of any claim or litigation pending or threatened against you as substitute Fiscal Agent made without our express prior written consent. II. YOUR AGREEMENT A. If Bank accepts this offer of indemnity and becomes substitute Fiscal Agent, you agree to defend and indemnify us and save us hazmless from and against any and all costs, claims, liabilities, losses or damages whatsoever (including all reasonable fees, expenses and disbursements, and the reasonable fees, expenses and disbursements of counsel and agents) that we may incur and that azise out of your wilful misconduct, bad faith or negligence, as determined on the basis of the provisions contained in the Resolutions, during the term of your fiscal agent capacity. B. Bank expressly does not agree to indemnify resigning Fiscal Agent: 1. for fees, chazges or liabilities incurred by us as a result of our wilful misconduct, bad faith or negligence, as determined on the basis of provisions contained in the Resolutions; 2. for our failure to execute properly our duties as fiscal agent during our fiscal agent capacity, as determined on the basis of the provisions contained in the Resolutions; or 3. for any compromise or settlement of any claim or litigation pending or threatened against us as fiscal agent made without your express prior written consent. III. LIMITATIONS TO PARTIES This indemnification agreement is solely for the benefit of the undersigned parties, and except as stated below, no other person or entity shall Have any 2 right, benefit or �._.orest under or as a result of this agre. .�ent. If Bank shall hereafter resign, cease to be eligible or qualified to serve as substitute Fiscal Agent or be removed as substitute Fiscal Agent under the Resolutions, this letter shall not inure to the benefit of any successor of Bank validly appointed under the Resolutions without our prior written consent, except that this indemnification agreement shall inure to the benefit of First Trust California upon completion of their purchase of Bank's Corporate Trust Department. IV. PROCEDURE Promptly after receipt by an indemnified party of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party hereunder, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party for contribution or otherwise than under the indemnity agreement contained herein or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indetnnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be a conflict between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it which aze different from or additional to those available to the indemnifying party, the indemnified pazty shall have the right to select sepazate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Agreement for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (a) the indemnified party shall have employed such counsel in connection with the assumption of legal defenses in accordance with the proviso to the next preceding sentence, or (b) the indemnifying party shall not have employed counsel reasonable satisfactory to the indemnified party to tepresent the indemnified party within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party. 3 V. GOVERNING LAW This agreement will be construed and governed by the laws of the State of California. Very truly yours, CITY NATIONAL BANK By: Title: Senior Vice President AGREED TO AND ACCEPTED BY: Bank of America National Trust and Savings Association By: Title: Assistant Vice President �_ r�musr_��wes��sc�wemeawonceswoia�ve�aox � � y N O O O � N O O O O O O O CD OD - � t0 I� M I� 07 t� O O O O O O O M M C � � � � � � O O O O O O O � � � � � I� � M tn N N y f0 f0 (O st t0 117 Qn� � n � r� r� �r �► Z O m ' e � o C9 � 000000000000 � 0 0 0 0 0 0 0 0 0 0 0 0 0 �. O C ? � N � M (�p N � O O C C O O O � '. 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O C M N O m OD f0 �A P7 � 01 f� �() N f0 V �q � — N N N .— � � � � � CO C � � � 0 � � d 7 W L LL C1 w a .. � •Z � v o co v co co v o w v co 0 0 0o y O � � � f0 in � N O N N � � 1n O f6 � (h GD OD OD f0 OD 1� O N I� � R (�7 N U C. h �O � I� O ch O � � aD O� � c'� O� � W 'V u) a0 � O O � � � O u7 t� O N � C � C a0 I� I� •- 4) aD h � O OD � l[) OD .-- A �� V ln fD OD � O N V (O I� O N � V C o � d � � � � � N N N N N C7 f�J C7 O IL Z � � M •C o fy � ? `w � � a d ` m E � 0 �, p N � � m a � c. a � naoo> o � NMvu� <or� aoJ m � d e � rn rn rn rn o 0 0 0 0 0 0 0 o F � ¢ � a � rn rn rn rn o 0 0 0 0 0 0 0 o a � � � � � N N N N N N N N N � � a Frr�m : MUNISOFT � PHOhE No. : 503 753 795� ._ Or_t.�5 1995 9:15RM P02 � :: � ti � . I; • �. � F.•` �". gl � � r, vi � � � � a e „ � s � � � � � k '� � � � � a: � � � � � o � � � � ; ; . U i � � � � � 4: �: � `� n � � � ri � �; N � `I ei � � � �O 60 �O a , Y '. .. p � �O �b l� Vi Mf P, Y �1 H I� � �i � M OO 00 ��p+ � OMD �D �-�+ �p V1 e} "'� � Q z ', �j 00 [� n 1� •00 �:. � � Vl h Vl V� 1/� F� � e U � � � � o � tr � g � �m N� � M t� � h 00 p.l. 1�i � � V1 �/1 N ` }�. 5 � �hy f �j M j( C �.i �p� ` � � � � � � .. ... r. Y pp� �o� ' � U � O� � .+ .w .. � �i PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM DATE: NOVEMBER 2, 1995 TO: RAMON DIAZ, ACTING CITY MANAGER FROM: CARLOS L. ORTEGA, EXECUTIVE DIRECTOR SUBJECT: COMMENTS ON THE AUDITOR'S LETTER You have asked for comments in regards to the draft letter written by the joint venture audit team of Oscar Armijo and Diehl, Evans & Company. There are three current RDA projects addressed in the letter; County of Riverside - Housing Authority, Portola Palms Mobilehome Park, and Civic Center Barrio - Desert Rose. In addition there are some future development projects that the auditors address. We strongly believe that the very first audit that is performed is on the Housing Authority of Riverside County. In the past three years the Agency has spent approximately $10,500,000 in subsidizing seven apartment complexes which comprise 725 units of housing. The current projections for the subsidies is projected at $3,700,000 to $4,000,000. The Agency is planning to do a program audit upon completion of the financial audit. The Agency has been in contact with Oscar Armijo to provide us with a proposal to get this engagement started. The next project that needs to be audited is the Desert Rose Project. The part of the project that we need to have audited is that portion where Civic Center Barrio uses money form the Deficit Operations Maintenance Account (DOMP) for start up and operations. To date they have received approximately $225,000 for start up costs. The last priority for an audit is the Portola Palms Mobilehome Park. They are currently paying five percent interest on the combined note that the Agency owns. There are approximately 40 lots that need to be sold, twenty of them vacant. We receive monthly statements form the management company that keeps the Mobilehome park's records. We are not prepared to recommend the priority of audits of the future projects as of yet. The appropriate time would be after all of the proper milestones are about to be met, and funds are anticipated to be released. If you have any questions please contact me. ��G�� Carlos L. Ortega Executive Director CLO:DMC:mh � � � � � CITY OF PALM DESERT AND PALM DESERT REDEVELOPMENT AGENCY ' STATEMENT O£ INVESTMENT POLICY REVISION DATE: October 6, 1994 v..r .f : � TAHLE OF COPiTENTS �.� 1 . Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Investment Policy Investment Objectivea Scope of investment Policy II . Investment Authority and Responsibilities. . . . . . . . . . . . . . . .2 Authorized investment Officers Internal Control Evaluation of Investment Officer Actions IIZ . Capital Preservation and Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Overview Portfolio Diversification Practices Iv. Eliqible Financial Institutions. . . . . . . . . . . . . . . . . . . . . . . . . .3 Credit-Worthines§ Standards and Portfolio Diversification Selection of Eligible Financial Institutions and Reporting Requirements individual Placement of Investments V. Authorized Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 State of California Limitations City of Palm Desert Lfmitations , VI . Investment Maturity. . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . .7 VII . Cash Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B VIII . Evaluation of Investment Performance. . . . . . . . . . . . . . . . . . . . .8 IX. investment Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 , � X. Investment Pollcy Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 , ' I . OVERVIEW INVESTMENT POLFCY It is the policy of the City of Palm Desert and the Palm Desert Redevelopment , Avencv to invest public funds to achieve a reasonable rate of return while minimizinq the potential for capital losses arising from market changes or issuer default, to meet the daily cash flow needs of the City and Redevelopment Agency, and to comply with all laws of the State, of California reqardinq the investment of public funds. INVESTMENT OBJECTIVES ' The City and Agency primary investment objectivea, in priority order, are: A. Safetv of Princioal Safety of principal is the City/Aqency foremost objective of the investment proqram. Investments shall be undertaken in a manner that seeks to ensure that capital losse6 resultinq from institution default, broker-dealer default, or the erosion of market value are avoided. B. Liauiditv Liquidity is the second most important objective of the investmeat program. The investment portfolio shall remain sufficiently liquid to enable the City Agency to meet all operating requirements. At all times, at least 508 of the total portfolio shall be invested for periods of three years or less; at least 30� of the total portfolio shall be invested for two years or less; at least 208 of the total portfolio shall be invested for 1 year or less; except bond reserve funds, bond escrow funds, and any funds approve by the Finance Committee or City Council to be appropriate for a longer period. C. Yield • The City/Agency portfolio shall be invested with the objective of attaining a market rate of return at all times, as long as it does not diminish the objectives of Safety and Liquidity. The market rate of return is defined as the average return on the one-year U. S. Treasury Bill . whenever possible and in a manner consistent with the objectives of safety of principal and liquidity, a yield hiqher than the market rate of return shall be sought. SCOPE OF INVESTMENT POLICY included in the scope of the City/Agency investment policies are the following major guidelines and practices which are to be used in achieving the City/ Agency primary investment objectives: - Investment Authority and Responsibilities Rev: 10/94 1 �r •. SCOPE OF INVESTMENT POLICY - Continued - Capital Preservation and Risk - Eliqible Financial Institutions - Authorized Investments - Investment Maturity - Caeh Management - Evaluation of Investment Performance - Investment Reporting - Investment Policy Review These policies apply to all. finaneial assets of the City/Agency. IZ . INVESTMENT AUTHORITY AND RESPONSIBILITIES AUTHORIZED INVESTMENT OFFICERS The City Council and Redevelopment Agency Board have appointed the City Finance Director as City Treasurer responsible for undertaking investment transactions on behalf of the City/Agency. Unless specifically desiqnated by the City Council and Aqency Board the only officials authorized to undertake investment transactions on behalf of the City/Agency are the Director of Finance/Treasurer, and Deputy Treasurers appointed by Treasurer. INVESTMENT/FINANCE COMMITTEE The City utilizes a Finance Committee, composed of the Mayor, Mayor Pro-Tempore City Manager, Redevelopment Agency Executive Director, Finance Director, City Attorney and a citizen appointed by the City Council, to insure stability and constant information flow as it relates to investment and other finance activities . INTERNAL CONTROL The Finance Director, is responsible for ensuring compliance with t. City/Agency investment policies as well as establishing internal controls designed to prevent losses due to fraud, employee error, misrepresentation by third pasties, or unanticipated changes in financial markets. A written policy on the specific internal controls will be review by the Finance Committee. EVALUATION OF INVESTMENT OFFICER ACTIONS . The actions of City/Agency investment officers in the performance of their duties as managers of public funds shall be evaluated usinq the followinq "prudent person" standard applied in the context of managing the overall portfolio: Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelliqence exercise in the management of their own affair5, not for speculation, but foi investment, considering the probable safety of their capital as well as the probable income to be derived. City/Agency investment officers actinq in accordance with written policies and the "prudent person" standard and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price Rev: 10/94 2 r; — — EVALUATION OF INVESTMENT OFFICER ACTIONS - CONTINUED � chanqes, provided that substantial deviations from expectations are reported by the Treasurer to City Manager and the Finance Committee within three days of discovery. Mutually aqreeable remedial action will be taken by the Treasurer and reported to the next Finance Committee meetinq. III CAPITAL PRESERVATIQN AND RISR OVERVIEW Some level of risk is inherent in any. investment transaction. Losses may be incurred due to insurer default, market price chnnges, or closinq investments in non-marketable certificates of deposit prior to maturity due to unanticipated cash flow needs. Diversification of the City/Agency portfolio by institution, investment vehicle, and maturity term is the primary tool available to the City/Agency to minimize investment risk and capital losses. PORTFOLZO DIVERSIFICATION PRACTICES The following sections summarize the City/Aqency major portfolio diversification practices and quidelines in determining: - Eligible Financial Institutions - Allowable Investment Vehicles - Investment Maturities It should be noted that all portfolio limitations for financial institutions, investment vehicles and schednled maturities included in these policies are to be based on the portfolio at the time of placement. The actual composittOn of the City/Agency investments may vary over time from policy limitations due to overall portfolio changes that occur subsequent to the time of placement. IV. ELIGIBLE FINANCIAL INSTITUTIONS CREDIT WORTHINESS STANDARDS AND PORTFOLIO DIVERSIFICATION The following general criteria relating to credit-worthiness and portfolio diversification will be used for selecting financial institutions for the placement of the City/Agency investments: - The financial capacity and credit worthiness of the financial institution shall be considered prior to the placement of investments. Banks and Savings and Loans must have a rating of at least A-i from the Financial Directory (or equivalent rating from another generally recognized authority on ratings) , and have an Equity to Total Assets ratio of at least� 67 01G ,—t3--�� �s A. - No more than 158 of the City/Agency portfolio (exclusive of investments in qovernment aqency iseues and the State Treasurer's Local Agency investment Fund) shall be placed with any financial institution. Rev: 10/94 3 �,_ . � � ''�`: ;; �REDIT WORTHINESS STANDARDS AND PORTFOLIO DIVERSIFICATSON - CONTINUED - Collateralized certificates of deposit placed by the City/Aq� .� shall not constitute more than 15$ of the total assets of t "y institution. SELECTION OF ELIGISLE FTNANCIAL INSTITUTIONS AND REPORTING REOUIR�MENTS All financial institutions includinq broker/dealers which desire to become qualified bidders for the City/Agency investmeat transactions must supply the City/Agency with the following: - Audited financial statements for the last three years and subsequent quarterly financial statements. - Completed broker/dealer or bank/savings and loan cZuestionnaire includinq certification that the financial institution has reviewed , the City/Agency Statement of Investment Policy and applicable California Government Code sections, that it will exercise due diligence in monitorinq the activities of its officers and employees engaged in transactions with the City/Agency are trained in the precautions appropriate for public sector investments. The City Treasurer shall review the information submitted and shall forward the results of its evaluation with a recommendation to the Finance Committee of the City/Agency for concurrence and d�signation of the institution as eligible for the placement of the City/Agency investments. A current audited financial report prepared by an independent certified pu. accountant shall be annually submitted to the City/Aqency within 6 months aft._ the end of the institution's fiscal year. . INDIVIDUAL PLACEMENT OF INVESTMENTS Individual placement of investments with eligible financial institutions ahall be based on the following practices and procedures: - With the exception of the State Treasurer's Local Aqency Investment Fund and broker/dealers, investments shall only be placed with financial institutions maintaining a branch within the State of California. - investments with broker/dealers shall only be placed with those maintaining branch offices within the State of California and that are designated Primary Dealers by the Federal Reserve Bank of New York. - As discussed in more detail in Section V, unless collateralized by eligible securities as provided in Sections 53651 and 53652 of the Government Code, the maximum amount of certificates of deposit to be placed with any single bank or savinqs and loan institution is aioo, 000. Rev: 10/94 q Y � - Investments in repurchase or reverse repurchase agreements shall not be allowed. - All marketable securities purchased shall be held by the City/Aqency third-party custodian. Securities purchased from a broker dealer shall be held in third party safekeepinq by the Trust Department of City/Aqency bank, and in the City/Agency name and control. No outside broker, dealer or advisor may have access to City/Agency funds, accounts or investments, and any trat►sfer or funds to Or through an outside broker must be authorized by the Treasurer. - Except for placements with the State Treasurer's Local Aqency investment Fund, investments shall be awarded based on competitive bids. Documentation relating to investment quotes shall be maintained by the City/Agency for 3 yenrs. - Within the context of the City/Agency's policies regarding competitive bidding and portfolio limitations, investments shall be � distributed as evenly as possible between financial institutions. V. AUTHORIZED INVESTMENTS STATE OF CALIFORNIA LIMITATIONS As provided in Sections 16429 . 1, 53601, 53601. 1 and 53649 of the Government Code, the State of California Limits the investment vehicles available to local agencies as summarized in the following paraqraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment' s maturity, no investments with maturities exceeding five years shall be made unless the City Council or 'Agency Board has previously granted authority to do so. , Adoption of the Statement of Investment Policy by the City Council and Agency Board does not constitute authority to acquire investments with maturities exceeding five years. State Treasurer' s Local Aaencv Investment Fund - As authorized in Government Code Section 16429 . 1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of S20 million in the investment program administered by the California .State Treasurer. Money invested with LAIF is pooled with State money in order to earn the maximum rate of return poasible in the manner consistent with sound investment practices . Government Aaenev Issues - As authorized in Government Code Sections 53601(a) through (e) , this category includes a wide variety of government securitiea which include the following: ' - Local qovernment bonds or other indebtedness - State bonds or other indebtedness Rev: 10/94 5 �_ � � � � �� j �..; - U.S. Treasury notes or other indebtednesa secured by the full fai,� and credit of the federal qovernment - Other federal aqency aecurities including but not limited to issues by the Government National Mortgage Association, and the Federal Home Loan Mortqage Corporation Bankere' Acceotances - As authorized in Government Code Section 53601(f) , 40! of the City/Agency portfolio may be invested in bankers'. acceptances that are eligible for purchase by the Federal Reserve system, althouqh no more than 30! of the portfolio may be invested in bankers' acceptances with any one commercial bank. Additionally, the maturity period cannot exceed 270 days; however, bankers' acceptances are seldom marketed with maturities in excess of 180 days . BA must be issued by a top ten bank in terms of total assets. Commercial Paoer - As authorized in Government Code Section 53601(q) , 158 of the City/Agency portfolio may be invested in commercial paper of the hiqhest rating (A-1 or P-1) as rated by Moody's or Standard and Poor's, with maturities not to exceed 180 days. This percentage may be increased to 308 if the dollar weighted average maturity does not exceed 31 days. The;e are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. No more than 5$ of the total portfolio or 5500,000 whichever is lower, may be invested in any one institution or company. Neaotiable Certificates of De�osit - Not an allowable investment. Renurchase and Reverse Reourchase Aareements - Not allowed. Corporate Notes and Diversified Manaaement Comoanies - As authorized in Government Code Sections 53601( j ) and (k) , local aqencies may invest in corporate notes for a maximum period of five years in an amount not to exceed 308 of the agency's portfolio. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States. Financial Futures and Financial Ootion Contracts - Not allowed. Certificated of Deoosit - As authorized in Government Code Section required to be collateralized from 105� to 1508 depending on the specific security pledged as collateral . The collateral pool is administered by the State, and is composed of a wide variety of government securities, includiag those indicated above, as well as promissory notes secured by first mortgages on improved residential property located in the State and letters of credit issued by Federal Home Loan Bank of San Francisco. There are no portfolio limits on the amount or maturity for this investment vehicle. Rev: 10/94 6 �- . CITY OF PALM DESERT AND PALM -DESERT REDEVELOPMENT AGENCY LIMITATIONS All investment vehicles allowed by Sections 16429. 1, 53601, 53601. 1 AND 53649 of the Government Code may be used by the City/Aqency with the exception of repurchase and reverae repurchase aqreements, neqotiable certificatea of deposits, financial futuree, and financial options contracts. Exclusion of these vehicles is consistent _with _ the C1ty�Agency overall objective of achieving reasonable yields on public funds while• minimizing risk and capital losses. Although the potential exists for greateF intereet yields with theee vehicles, it is believed that the potential level of risk exceeda their benefits. In addition at no time will the City/Agency portfolio contain more than S5 million of certificates of deposit purchased from the same bank or savings and loan. IV. INVESTMENT MATURITY in addition to the risks associated with the credit-worthiness of the financial institution and the security of the investment vehicle, the maturity period of investments is also a significant consideration in the manaqement of the City/ Agency portfolio. In order to minimize the impact of market risk, it ia intended that all investments will be held until maturity. In implementinq this policy, the following guidelines will be used: - Projected cash flow requirements are the primary factor to be uaed in determining investment maturity tesms. After cash flow needs have been met, yield considerations will be the next factor used in determining maturity terms, with the expectation that longer maturity periods will generally yield greater returns on investments. - Investments may be sold prior to maturity for cash flow or appreciation purposes . However, no investment shall be made based solely on yields resulting from capital gains. � . � Investments longer than one year may be made if consistent with the City/Agency cash flow needs and related intent of holding until maturity. However, unless• Government Code Section 53601 specifies a limitation on an investment's. maturity, no investment with maturities exceeding five years shall be made unless the City Council a' Redevelopment Agency Board has previously qranted authority to do a VIZ . CASH MANAGEMENT • To achieve a reasonable return on public funds, the followinq cash management practices will be used: - To maintain maximum investment of all City/Agency funds not required to meet immediate cash flow needs. - To pool resources available for investment form all City-administered funds, with interest earnings allocated to each of the funds based on individual fund cash and investment balances. Rev: 10/94 7 h . � �• �*�.. � G -' - To maximize the City/Aqency cash flow through the immediate de�.. of all cash receipts, use of direct deposita when available, a� appropriate timing of payments to vendors. � - To maximize the cash flow information available through the use of only one operatinq bank account. VIII. EVALUATION OF INVESTMENT PERFORMANCE As indicated previously, it, is the City/Agency policy to achieve a reasonable rate of return on public funds while minimizinq risks and preserving capital. In evaluating the performance of the City/Agency portfolio in complyinq with this policy, it is expected that yields on City/Aqency investments will regularly meet or exceed the averaqe return on the one-year U..S. Treasury Bill. IX. INNESTMENT REPORTING The City Treasurer shall submit an annual Statement of Investment PoliCy to the Finance Committee and then to the City Council and Redevelopment Agency Board for their approval (if Committee feels their is a change needed) . This statement shall be filed with Finance Committee by January 31 of each year. in addition to the submittal of an annual Statement of Investment Policy, the city Treasurer shall provide the City Council and Aqency Soard with a Monthly Investment Report providing the type of investment, name of financial institution from which each investment from which each investment was purchased, purchase date, maturity date, purchase price, market value if the investment term exceeds one year from the effective date of the Cash Invest�r �t Report, the portfolio's compliance with the requirements of the Statement - , investment Policy, and the reports compliance Governmental Accountinq Standar� Board Statement Number 3. The Monthly Cash and investment Report shall include all investments held in the City/Agency portfolio as of the end of the month and shall be issued within 60 days after the end of the monthly reporting period. X. INVESTMENT POLICY REV•IEW The City/Agency independent Certified Public Accountant ahall annually review and make recommendations regardinq the City/Agency investment policies to the extent considered necessary as required by generally accepted auditing standards as the relate to the annual financial audit which includes cash and investments . Rev: 10/94 8 ,�� _ _ -`�;� � xhi it Analysis SB 564 Impact on City Investments Section 3 - Requires Treasurer to annually render to legislative body for consideration at a public meeting a statement of investment policy. Requires Treasurer to render a quarterly report to CEO and legislative body within 30 days following end of the qaarcer. Quarterly report shall include type of investment, issuer, date of maturity,paz and dollaz amount invested on all serurities investments and monies held l�y the local agency and shall include a descriation of any funds investments or �pr erams that aze under manaeement of contract artles mcludme lendine • • ro . Funds and investmenu held by contracted parties shall be reported at market value and the source of the valuation shall be reported. Report shaU state compliance with investment policy or manner in which the portfolio is not in compliance. The report shall also include a statement denoting the ability to meet the agency's expenditure requirements for the next six months or provide an explanation as to why sufficient money shall, or may, not be available. The legislative body may elect to require monthly reporting instead of quarterly. i � Section 4 - Aclmowledges SB 564 is a state mandate. </ 1 � A07933NM.CNY 9 � .�� � � ,�� :: �,� Exhibit 2 Analysis SB 866 � Impact on City Investments Section 4 - Limits investment authority to authority granted by Government Code sections 53601, 53607 and 53635 Section 10 - Creates a County treasury investment committee. Meetings of the committee shall be open to the public and subject to the Brown Act. Dces not specify that municipalities participating in the County pool shall have a membership on the committee. Requires an annual investment policy specifying list of specific securities eligible for investment, term of investment and selection of broker dealers, cost allocation method, criteria for withdrawal of monies invested and requires an annuai compliance audit. Section 11 - Declazes persons investing monies pursuant to Govemment Code chapter 53600 aze trustees and therefore fiduciaries subject to the prudent investor standazd. Section 12 - States primary investment objective shall be to safeguard principal, secondary shall be liquidity and third shall be tq aChieve a retum. � Section 13 - Declares deposit and investment of public monies is a matter of statewide concern. Section 14 - Specifies authorized investments and limits maximum maturity ro less than five years unless specific authority from the goveming board has been granted for investments beyond five years less than 3 months before the investment. Limits securities eligibie for reverse repo to 20% of portfolio, the securiry must have been held for 30 days and the term cannot exceed 92 days unless the agreement matches a written codicil guaranteeing a minimum earning spread. Reverse reQo definition includes other comparable a�reements Section 15 - Prohibits investments in any security that could result in a zero interest accrual if held to maturity. A01932MM.CNL1 Q 10 Pdm DoeA Redevdep�nt A{oq 11/2186 lavnrmat P�rHsY�DebW-6va�m�ab 10!!1/95 PurcMse Book Fece Market St�ted M�turity Funtl Totel Umcription Date Valua Value Velue Rate Dets Investad Invest-US fpWlltlw' US Tre�aury-Strip 100 Mil Acai301-6019000 5,424,083.61 5390000 5,470.850.00 8.88% 3/31/97 EserowFDS 148,226.26 205000 189,888.60 6.90% TI75197 Pro�+11 393,827.48 400000 398,752.00 4.30% 12131/96 392,086.00 400000 397,878.00 4.00% 1/31/88 1,359,305.94 1497000 1,d88.580.88 6.73% 2/16/86 383,752.48 400000 398,378.00 4.60% 2116/88 394,757.48 400000 398,000.00 6.10% 3I31/98 298.818.11 300000 299,826.00 6.60% 4/30/98 398,782.48 400000 400,252.00 6.90% 6I31/98 PedNetlMt Asan 11,080,897.16 11100000 11,108,880.00 8.10% 11/e/95 1,429.482.44 1664000 1.543,780.00 6.20% 11/16/95 888,055.28 748000 743,086.84 6.20% 11/16/95 9,988.22 11000 70,778.48 6.60% 2/16/98 301-8018080 248,251.65 260000 249,220.00 4.30% 12/31/95 245,079.68 260000 248,672.60 4.00% 1/31/98 248,173.43 250000 248,986.00 4.80% 2/15/96 248,134.38 250000 248,986.00 4.80% 2129/96 � ' 246,879.88 260000 249,376.00 6.10% 3/31/98 247,682.80 260000 249,687.60 5.50% 4/30/98 243,798.88 260000 247,677.60 4.30% 6/16/98 248,523.43 250000 250,157.50 6.90% 6/31/98 .248.682.60 250000 260,390.00 8.0096 BI30I98 248,786.88 250000 260,702.50 8.10% 7I31/98 - 249,023.43 260000 260,93).60 8.20% 8/31/98 249.882.80 260000 257,720.00 8.60% 8/30/88 241,057.80 260000 248,172.50 4.40% 11/75/98 � 249,851.55 260000 267,876.00 6.60% 17I30I98 248,128.13 260000 251,095.00 8.10% 12I31I96 248,368.76 260000 261,327.60 8.20% 1/31/97 ' 248,837.50 260000 2b2,500.00 6.40% 6/15/97 248,096.30 260000 262,187.60 6.30% 8/30/97 Fad Netl Mcg Asen 4,376,437.02 4390000 4,392.834.00 8.10% 1 il9/96 304,780.23 359000 328,832.58 6.10% 5I75/97 New Project A 1 Bonds'•• Acct/301-8076000 6/1/96 536,118.75 640000 637,487.40 6.84% 11/30/96 600,372.50 600000 501.250.00 5.91% 8/30/98 � 6.597,109.38 6500000 5,587.955.00 8.05% 11/30/98 999,843.75 1000000 1,000,830.00 8.17% 11130/87 706,380.82 892000 706,840.00 8.35% 6/31/99 14,233.492.68 14342000 14,220,853.62 8.20% 1/31I98 � S tat �:U naatiss ..� 64,1 ,2 �w30 ':..2 .OQ i�'�. 4 i. 8 t �, 5�.�:ap u reeruAe� � ProI��Aree 72 Ao i2 - AcctR301-8023000's � 11,804.28 13,000.00 12,736.84 5.50% 2/15/98 908.02 1,000.00 979.68 6.60% 2/16/88 12,772.28 14,000.00 13,716.62 6.60% 2/16/98 361,984.76 387,000.00 389,080.00 5.40% 2/15/98 . 40,369A6 46,000.00 43,488.86 6.80% 6/16/98 BB5.47 1,000.00 954.08 6.60% 8/16/98 81,982.90 70,000.00 88.784.20 6.60% 8/16/98 68,181.19 77,000.00 73,482.82 6.60% BI75l98 180,378.05 216,000.00 206,198.00 6.40% B/15/98 243,582.60 260,000.00 247,677.60 4.30% 6/16/96 248,210.83 260,000.00 260,390.00 8.00% 8/30/98 248,387.18 260,000.00 260,702.60 8.70% 7/31/98 � 248,564.88 260,000.00 260.937.60 8.20% B131198 299,250.00 300,000.00 302,084.00 6.60% e/30/98 Page 1 P�Im Deaert Rcdevelopmmt AQeocy i l!2/95 levotmmt Portfolio Debi4-Invntmenb 10/31N3 - New Project Ama#2179951"' Acet i301-6 07 6 1 00 � 1,311,781.25 7300000 1,311,778.00 6.10% 6/30/97 110,207.50 104000 110,045.62 6.40% 11/30/99 232,407.88 231000 231,145.53 8.17% 11/30/97 2,128,896.88 2115000 2,117,749.50 6.29% 12/1/97 0.00 SubtIXtAl US T�besuries � '�.. 5,89 Ai � 5 � 18z 3. .;5, 7 , &d,. 2 ` 6.$18.472�8fi Benk of Americe-Savin s 0.00 0.00 State LAIF 24,000,000.00 24,000,000.00 24,000,000.00 5.83% 20.,000,000.00 �eseei Aose Buntl Baue��. US Treasuries Note W/int Housing ACCT9117507400's i 296,696.25 298000 298,837.38 8.13% 7/31/98 Fitlelity Treasury Fund 3,803,471.12 3,603,471.12 3,603,471.12 5.60% SudiOtel:�:DesettRaSb '." �� 3r��r1�7�.�7 r OJ�474.#'� ''i3r$4�r3F1B��1 :�: ^.1��(!�i(53�3T TN9t�FitlslM1y�n6tituionqV-U5.'Treasuries flATED AAA 7.8 Mil Low/Mod Ho 4,838.25 4.838.25 4,838.25 , 100 MilBondlssue i 6,900,339.53 6,900,339.53 8,900,339.53 5.70% 1995 ProjlJ i Bonds••• 807,175.37 807,175.37 807,175.37 5J0% 1995 Proj N2 Bontls"• 182,895.73 182,895.73 114,423.58 5.70% 17 MilBondlssue � 2,890,836.13 2,890,638.13 2,890,636.13 5.60% SubtotalSweepAcct � '.'.i0,?05,885♦O7 1Q.785,88b,01 :14,7T4r472.93 ..:f0.785,885;qT���. i I 0.00 Loan Funds to RDA �� 0.00 0.00 0.00 TOTAL POOLED CASH ' 98,617,867.331 99,233,359.13i 99,108,676J2 I ! 98,617,667.33 •' Monthly reports typically are receivetl up to one full month after current month end informetion conteinetl in t�is report is Ne most recent received. � •• The mos<recently recievad repon for this issue is detetl July 31, 1995. We hava discussed the problem with 8ank of America. They will be sending wrrent stetements as soon as Oossible. � I I ce ' that these inve tments comply with all State laws pertaining to the investment of Local Agency funds. Paul S.Gibson,Treasurer Paga 2 pdm OueR Rcdeveb0e�t A�aecy 11/2/96 Invntmat Pe'Helb DehW-Ievalmab 9/i093 PutMese Baok F�ce Merket Stetatl MM�Mty FuM Total . Dasmptlon Data Velue Value Value Neta Deta Invene0 Invert-US . Y .. .. ,_,.�.,..: �°��::. ........:s:;::.:>:`:< US Treasury-Strip 100 Mil Acctf301•8019000 6,424,083.81 6390000 6476848.8 8.88% 3/31/97 6aow FDS 148,226.36 205000 188,888.60 6.90% 2/16I97 Ro�i1 393,827.48 400000 398,378.00 4.30% ti/31/86 392.086.00 400000 397,378.00 4.00% 1/31/98 1,369,306.94 1487000 1,459,798.65 5.73% 2I16198 393,762.48 400000 398.252.00 4.80% 2/15I96 394,757.48 400000 388,752.00 6.10% 3/31/98 298,818.11 300000 299,825.00 5.60% 4/30I98 396,782.48 400000 400,600.00 5.90% 6/31/96 Fed Netl Mtg Asan 1t,080,997.16 11700000 11,107,770.00 8.10% 1119195 1,429,482.44 1664000 1,538,760.fi0 6.40% 11/16/96 888,066.28 748000 738,897.20 6.40% i tl16196 � 9,988.22 11000 10,728.86 6.80% 2/16I98 301-8019080 248,261.55 260000 248,986.00 4.30% 12/31/96 245,078.88 260000 248,360.00 4.00% 7137I98 248,173.43 250000 248,907.60 4.80% 2/16/98 248,134.38 260000 248,827•50 4.60% 2l28I96 246,878.88 260000 249,220.00 6.10% 3/31l98 247,582.80 260000 249,887.50 6.60% 4/30/96 243,798.88 250000 247,500.00 4.30% 6/16I96 248,623.43 260000 250,312.50 5.90% 6/31/98 248,682.50 260000 260,62fi.00 8.00% BI30/98 248,798.88 :50000 250,937.60 6.10% 7131/96 249,023.43 250000 261.172.50 8.20% 8/31I98 249,882.80 260000 252,032.60 8.40% 9/30/98 241,067.80 260000 248,016.00 4.40% 11/16196 � T49,661.65 260000 262,187.60 6.40% 11130198 248,128.13 250000 251,260.00 8.10% 12/31/96 248,368.76 260000 261,840.00 6.20% 1/31/97 248,837.60 260000 262,867.50 6.40% 6/16/97 248,096.30 250000 252,422.60 8.30% 8/30/97 Fed Netl Mtp Assn 4,378,437.02 4390000 4.393.073.00 B.10% 1118196 304,780.23 359000 326,228.87 6.10% 6116/97 New Project X 1 Bonds'•• AcctR301-8076000 6It195 538,118.75 540000 537,487.60 5.84% 11I30I95 500,312.60 600000 601,260.00 6.91% B/30/98 5,597,109.38 6600000 5,597,955.00 8.05% 11/30/98 999.843.75 1000000 1,000,630.00 6.17% 11/30l97 706,380.82 892000 705,840.00 8.35% 5/31/99 14.233,492.86 14342000 14,220,953.62 8.20% 1/31/98 ......i�. LtlSildiES:':isi :�:�:;:`i . X'.l :. :.. . '. .: ': . :. . .: � . ; . i89:�. . .'.'.'.::.. ..,. .�. .a:<'r4:,>.;:'i:: ,' F �. �Project Ares�Y�,��� Roj f2 AcctI301-8023000's 11,804.28 13,000.00 12,678.96 5.80% 2I16I9B 908.02 1.000.00 975.16 6.60% 2I75/98 12,712.28 14,000.00 13,862.10 5.80% 21161ee 361,984.76 397,000.00 387,194.10 6.60% 2176I98 40,369.16 46,000.00 43,283.00 6.70% 6/15/98 886.47 1.000.00 961.25 6.30% B116196 81,982.90 70,000.00 88,587.50 6.30% Bft6196 88,181.19 77,000.00 73,248.25 6.30% 8I75/86 190.378.05 215,000.00 204,668.50 5.30% 8/15I98 243.582.60 250,000.00 247,110.00 4.30% 5116/96 248,210.93 260,000.00 250,825.00 8.00% BI30198 248,387.18 260,000.00 260,937.50 B.70% 7/31/98 � 248,664.68 260,000.00 261,172.60 8.20% 8I31�98 '299,250.00 300,000.00 302,343.00 8.40% 9/30/98 Pepe 1 pdw pe�ert RdevebPmsl A{eec� 11/2/95 �OYO�l��hl'�O��ih�-��Y01�PH 9/i01f3 Purchase Book � Pe�� Mvket Suted MetuHty Fund Taal DescriDtfon D�ta Vdue Vdue VUua Rata D�te Invested Invart-US New Project Area I2119961"' Acct 730b807810 1,311,781.25 1300000 1,311,778.00 8.10% 8/30/97 110,207.60 104000 110,045.62 8.40% 11/30/99 232,407.88 231000 231,146.63 8.17% 11/30/97 2,128,898.88 2116000 2,717,748.60 8.29% 12I7l97 0.00 .. .. �.. ... ...o•:T'rn.�':':k:e.'.DY�;:> " :: O,r'. !�'y':y �:Sii: Benk of Americ�-Sevin s 0.00 a�� Stete LAIF 24.000.000.00 24.000.000.00 24,000,000.00 6.83% 24,000,000.00 �:�1�;�{Kll�i:' Il�<?:"::i�::::3::�22 :;..:::.:.. . ,.:;. '................�....?.......:...:.: US Treesuries Note Wlnt Housin ACCT1117507400'n , 298,896.25 298000 299,026.12 8.13% 7/31/88 Fitleltt TreeauryFunA 6,546,812.08 6,546,81Y.08 6,646,812.OB 6.60% ��y�p��� , ..ir,.::::i.::�n�: � .,G ' : :.k.g � :w.g..s� v:::�.�. �:o�gi..3f:4:.:k::;n`!:: ... . . ..,,.. , ;. ..,.<::::::!q., .: . . . > : ;. t �., . . . :c. �.'.VMRI.%::lAIRR:::il::i:... .ir.:.:.. . . . :.:.A'V.� , • .. L V p. : J..4u. '):s. '(;ppq�£j�jij6�y;lf:qt',""' ';i�$;: reeauriea RATED AAA 7.8 MilLaw/Mod Ho 6,788,034.42 6,788,034.42 8,788,034.42 100 Mil Bond Isaue 8.313,M2.73 8,313,442.73 8,313,442.73 6.70% 1995 Praj J 1 Bonds••• 807,176.37 807,775.37 807,175.37 6J0% 7995 Praj 12 BonEs"' 182,895.73 182,896.73 114,423.68 6.70% 17 Mil Bontl Issue 3,838,233.63 3,838,233.63 3,838,233.63 5.80% .t.. Acci:: %i>,�n� a`. %� 8'c:¢i'>Q.w�.�,�;F:�:.i;'�;: 0.00 Loan Funda ro RDA 0.00 �•� 0.00 TO7AL POOLED CASH 109,503,905.06 110,084,593.86 109,979,834.05 109,503,805.08 •• Monthly reoorts tyv�celly are received up to ona tull month efter current month end informeNon conteined in thia ropvn ia the most wcant wceived. ••The most recently raeieved report for this issue�ia Aated July 31, 1995. We heve diacussed tM problem wkh B�nk of AmeAce. They will be sending eurrent sbtementa as aoon aa Doslible. I certif at thaaa invest enta comply with all Steta lews perteinin to the investmerrt of Loeel Apancy fuMs. Peul 5.Gibson,Treasurer Pegs 2 City ot Palm Desert Schedule oi Investments Aa of OcWber 37,1995 CUSIP Purchase Inva�tmant Peu MarkeC Shtad Maturity InvesLnant Deseription: Number Date Value Valw Value Rata Date US Treesuiies:-BNY�WfG:pOBOBBO . ' US Treesury-Nota 912827D41 10/27/94 3,883,750.00 4,000,000.00 4,028,760.00 8.50% 11l30/% USTraesury-Note 912827E57 10/27/94 1,996,875.00 2,000,000.00 2,023,740.00 6.75% 2/28/97 USTreasury-Note 912827P97 10127/94 1,782,5fi2.50 7,601,682.00 1,B01,fi92.00 5.875% S131196 USTreasury-Note 912827Q96 10Y17/94 1,787,062.50 7,808,754.00 7,807,038.00 625% el31/96 USTreasury-Stnp 9728338T6 10/27/94 1,000,566.42 1,097,OOO.W 1,074,544.47 2H5/98 USTreasury-Stnp 9128338U3 10/27/94 1,003,937.62 1,132,000.00 1,079,101.64 8/75196 USTreasury-Stnp 912833F81 70/27/94 1,003,182.98 1,078,000.00 1,070,949.88 11/15/95 Sub?otal - US Treasuries � �� 12i557;H37.02��� ,12;878,&I6:00� �,�42;gg5;825.93�� BBnk W Am8ric6�-5evings SutrTotal-�Savirpa ...:.-082&8-85222. � 242.838.53'r 2.00% Stele-�L.A:I.F. � SubTotal - L.AI:F. 9&33821' . .�� �7.066;197:88� 5.77% �� Collateralizetl Certificetes.M Deposit: Great Westem 389-608937-6 10l26/95 7,500,000.00 5.50% 1/25/% Great Weslem 389E07877-5 10/2N95 1,500,000.00 S.SD% 1/25/98 Great Westem 389-607878-3 10/2&95 7,000,000.00 5.50% t125/96 Great Westem 38&808458-3 10/26/95 1,000,000.00 5.50% 1/25/98 Home Savings 594-000593-6 10/26195 1,500,000.00 5.52% 12/26I95 Home Savings 594-000592-8 10/28/95, 1,500,000.00 i 5.52% 12/26/95 Home Savings 594-000594-4 10/28/95 1,0�0,000.00 5.52% 12/26/95 Home Savings 594-000591-0 10/26/95 1,000,000.00 � 5.52% 12126/95 Glendale Fedarel 887-038985� 8/21/85 1,500,000.00 5.48% 71l20/85 Sub Total - Certifcatas of DeposH 11,500,0�0.00� FundS Loened to RDA 11,334,000.00 Rate=to LA�F 5.832% 'CAS. .;�+; Bona Issues: � Indian Ridge CFD 97-1 301�021500 USTreasury-Strip 3011'i027577 i 11/19/93 462,250.00 500,000.001 496,700.00 5.20% 11H5/95 Resolution FDG Stnp 301�027580 ' 11/19/93i 539,165.48 ! )33,000.00 ; 667,759.73 6.20% 7H5/97 Bank of America-Fidelity Treasury � ' 301-6021575 � ' 647,10875 647,708.75 647,10875 5.70% 301-6021580 � 531,939.5Y 531,839.52 537,939.52 5.70% 3 0 7-6021 577 � 2,527,766.45 2,527,766.45 2,527,766.45 5.70% Sub Total - Indien Ridge 4,708,230.20 4,939;814.72 4;885,274.45 Siertallova92-1 �301-80284W Bank of Amenta-Fidelity Treasury i 301b028478 42.21 4221 42.21 5.70% 301-6028480 '� 242.279.74 242.21974 242.219]4 5.70% 301-8028481 24.20 24.20 24.20 5.70% �301-8028482 20.80 20.90 20.90 5.60%. I Sub Totai - Sierta Nove 242;307.OS 242,307,05 � 242,3D7.05� Page 1 City of Pelm Desert Preliminary Schedule ot Investmanls As of October 1995 Confinued Aetount Purchase Investment Fau MarkaN Shted Maturily InvastmentDaseNption: Number Date Value. Valw Value Rab Data eontl�dsauea:Cominuetl� , AO 87•1 � B of A-Psafic Monzon Treasury FunG 117178400 75.06 75.06 75.06 117178401 15,056.41 75,056.41 15,056.41 AD87•1 -SubTatel � 15731.N �.'�. 15.Y3'1.47: � � 15131A1 Big��Hom�941"� � .�301�8200000�� USTreasury-Strip 307-8200080 222,059.23 275,000.00 238,315.00 5.30% ?!15/98 USTreasury-Strip 301-8200080 371,122.00 350,000.00 333,185.00 6.30% B/15/98 Bank W America-Fideliry Treasury ! 301-8200077 46,600.10 46,600.10 . 46,600.10 5.60% 301-8200075 326,438.75 326,438.75 326,038.75 5.70% 301-8200080 101,01922 107,019.22 101,019.22 570% j Sub TWeI - Bg Hom .���7,007,339.30 �.: .1,099,058.07` t;045;538�:07 Sunterrece 94-2 . . .901-8084800. . Bank of Amenca-Fideliry Treasury 301-6084875 80,003.70 80,003.70 80,003.70 5.70% 301-6060877 38,865.75 38,865.75 38,865.75 5.70% 301-6D64880 190,873.85 190,873.65 190,873.65 5.70% i Sub Total - Suntertace 309,743.70 308,�43.10� 309�,743.10 � Merano 94-3 301-6085600 i, ' Bank of Amenca•Fidelity Treasury I 1301-6075676 26,778.79 26,778.79 26,778.79 5.70% 1301-6075677 697,921.72 697,92172 697,921.72 570% �301-6015680 129,639.67 129,839.87 129,639.67 5.70% �1301-6075882 149.64 149.64 149.64 570% SubTolal - Mereno �� 854,489.82��. � ,854,489.82. . 854;489.92 I Palm Deaert Financing AWMrity-95 Revenue BoiWs Issue Date:September 28,.7995 I 'Morrthly reports are typicalty recaived up to one full monih after current month end. - Infortnetion con�ained in thi5 repOrl is m05t recent received. "Benk expenencin9 tliffiCulry with Stetement kr Mis account.Dete reflectetl is es of 8/31/95. I certity that theae investmenis eompy vWth all Shta laws pertaining to the investm Lxal Ageney funds. �(� Paul 5.Giheon,7reasurer Cc:11/Ot/95 Paul S.Gibson B.Wnght Investment File schetloct.xls Page 2 CHy of Palm Desert Schedule of Investments As of September 30, 1995 Aecount Purehue Invesfinent Faea Market' Stated Maturity Investrnent Description: Number DaN Value - Value Valus Raq pats � US Treasurias-�9NY�WT'C tY060890��� US Tieasury-NOM CUS:972827D41 OA7508000 10/27/94 3,983,750.00 4,000,000.00 4,028,760.00 6.50% 11/30/86 US Treasury-Note CUS:912827E57 QA7509000 10/27/94 1,996,875.00 2,000,000.00 2,023,740.00 6.75% 2128197 USTreasury-NoteCUS:912827P97 C1A7509000 1027/94 1,782,562.50 1,8D1,892.00 1,801,692.00 5.875% 5r31f96 USTreasury-NoteCUS:912827Q96 QA7509000 10/27/94 i,787,062.50 1,808,754.00 1,807,038.00 6.25% 8/31/96 USTreasury-StripCUS:9128336T6 QA�509000 10/27/94 1,000,588.42 1,097,000.00 1,074,544.41 Z75/96 USTreasury-StripCUS:912833BU3 OA7509000 10/27/94 t,003,937.62 1,732,000.00 1,079,101.64 � BN5/96 USTreasury-StripCUS:912833FB1 OA7509000 10/27/94 1,003,182.98 7,WB,000.00 1,070,949.88 11/15/95 SubTotal - USTreasuries � � � � '�12,557,937.02�� � � 12�976,846.00�. �12,885,825.93 Bank of America-Savings SubTotal - Sauings � �0626-6�85222 � � 371,542�.58�� 2.00% Stete-LA.I.F. Sub Total - L.A.I.F. � 9833b21 � � 9.760;457.32'�: 5.832% Collate2lized Cerdficates of Deposik Great Westam 389-608937-6 727/95 1,500,000.00 5.65% 1026/95 Great Westem 389-607877-5 7/27/95 1,500,000.00 5.65°.6 10l26/95 Great Westem 389�0787&3 7/27/95 1,000,000.00 5.65% 10/26/95 Great Westem 389-608458-3 7/27/95 1,000,000.00 5.65% 10f26/95 Home Savings 594-000593t 7/27/95 1,500,000.00 5.47% 10l26/95 Home Savings 594-000592-8 7/27/95 1,500,000.00 5.47% 10/26/95 Home Savings 594-000594-4 7/27/95 1,000,000.00 5.47% 7026/95 Home Savings 1594-000591-0 7/27195 1,000,000.00 5.47°� 10/26/95 Glendale Federal 1887-036965-6 9/27/95 1,500,000.00 5.48°h 1120/95 i Sub Total - Certifiwtes of Deposk 11,500,000.00 Funds Loanetl to RDA � 11,334,000.00' Rate=to LAIF 5.832% �....�A4E9016Dr.C'ASH= :.�.4�.sl��;� - - Bond Issues: , � Indian Ridge CPD 91-1 1307-6021500 IUSTreasury-SMp 1301-6021577 11/19/93 462,250.00 500,000.00 496,700.00 5.20% 11/15/95 Resolution FDG•Strip 301fi021580 i 11/19193 539,185.48 733,000.00 661,759.73 6.20% 7/15/87 Bank of Amenca-Fitlelity Treasury '� 301-6021575 647,108.75 647,108.75 647,108.75 5.70°� 301-6021580 531,939.52 531,939.52 531,939.52 5.70% 301�8021577 ' 2,527,766.45 2,527,766.45 2,527,766.45 5.70% Sub 7otal - Indian Ridge 4,708,230.20 4,939,81a.72 �4,885,27a.45 i �Sierca Nova 92-1 3 7-8028400 Bank of America-Fidelity Treasury I 301-6028478 42.21 42.21 42.21 5.70% 1301-6028480 242,219.74 242,219.74 242,219.74 5.70% � 307-6028487 2420 24.20 2420 5.70% ' 301-6028462 ' 20.90 20.90 20.90 5.60% I I Sub Total - Sierra Nova 242,307.05 242,307.05�- 242,307.05 i i � Pege 1 of 2 . _ _ cny a Penn oeeert ° � Proliminary Scheduk of Investments � � As of Aueust 1995 Continued ' AccouM Purehass InwatmeM "� Face � Markel' Stated Maturlty � Investrnent Deaeriptlon: Numb�r Dab Value Valw Valw Rats Dab OI1d�89U98:�C.O11fi/11Md �� �. � 87-t B MA-Pacific Horaon Treasury Fund� 177178400 75.06 75.06 75.06 I 117178401 15,058.41 15,056.41 75,056.41 � � 87-1 - SubTotal - � - 15,131.47� 15,137�:47 15,131:47 Big Mom 94-7" 301-8200000 � US Treasury-Strip 301-8200080 222,059.23 275,000.00 238,315.00 5.30% 2115/98 USTreasury-Strip 301-6200080 311,122.00 350,000.00 333,165.00 6.30% 6/75/96 Bank of America-Fidelity Treasury 301-8200077 46,800.10 48,600.10 46,600.10 5.60% 301-8200075 326,438.75 326,438.75 326,438.75 5.70% 301-8200080 101,Ot922 101,018.22 101,01922 5.70% Sub Total - Big Hom � - �1,007,239:30 � �A�,099,058:07 � � 1,045,538.07 Suntertace 94-2 307-6064800 Bank of America-Fideliry Treasury � 301-6064875 80,003.70 80,003.70 80,003.70 5.70% 301-6064877 38,865.75 38,865.75 38,865.75 5.70% 301-6064880 190,873.65 190,873.65 190,873.65 5.70% I SubTotal • Suntertace � � � 309.743A0 � �309,743:10 -� � 309,743.10 Mewno 943 1301-6065600 IBank of America•Ftlellty Treasury � � � �.301-6075676 i 26.778J9 26.778.79 26,77879 570% i .301-6075677 I i 697,921.72 697.92172 697.921.72 5.70% � ��301�075680 � 129,639.67 129,639.67 129,639.67 5.70%i �301-6075682 ' 149.64 149.64 149.64 5J0% Sub Total - Merano 854,489.82 854,489.82 854,489.82. 'Patm Desert Financing Authority-95 Revenue Bonds I lssue Date:September 26,7995 RANDT(aT�.v x� .�� .,. •Monthly reports are typically received up to one tull month aRer current month end. Information contained in this report is most recent received. I"Bank experiencing difficulty with statement for this account.Data reflected is as of 8I31I95. II certi at these investrnenls comply wilh all Sfate laws perfaining to the Invesfm Lodl Agancy funtls. �' ��� �- Paul 5.Gfbson,Treasuror � lec: 10/24I95 Paul S.Gibson iB.Wright Investment File �schedsep.xls Pege 2 of 2