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HomeMy WebLinkAbout07 JANUARY 1997 AGENDA INVESTMENT & FINANCE COMMITTEE WEDNESDAY, JANUARY15, 1997 -- II:OOA.M. NORTH WING CONFERENCE ROOM ***************************************************�************************** I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of December 10, 1996, as submitted: Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by ig ving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Inveshnent & Finance Committee's discretion, these comments may be deferred until such time on the agenda, as the item is discussed. Remazks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background,Checks for Section 4 Rec: Report by Carlos Ortega. B. Palm Desert Water & Services District Transfer Rec: Report by Paul Gibson. Action: AGENDA- INVESTMENT & FINANCE COMMITTEE JANUARY 15, 1997 **�***�***********************�*********************************************** C. Alden Capital Markets Rec: Report by Carlos Ortega regazding options for refunding issues. Action: D. Request for Proposals - Banking Services Rec: Review invitation sent to prospective institutions. Action: VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investxnent activity during the month of December. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in January 1997 Rec: Review investrnents in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) Agencies discount notes. Action: C. State of California Local Agencv Investment Fund Monthly Re�ort Rec: Informational item for the Committee to review. No action required. D. Mon hly Financial Repart for City Council Rec: Report and submit to City Council. Action: AGENDA- INVESTMENT & FINANCE COMMITTEE JANUARY 15, 1997 *********************************************************�******************** E. Parkview Professional OfTce Buildings - 11/30/96 Financial Reports Rec: Review of financial statements. Action: F. City of Palm Desert Comprehensive Annual Financial Report(CAFRj & Palm Desert Redevelopment Agency Component Unit Financial Report (CUFRI for FYE 6/30/96 Rec: Slide presentation on financial reports by Paul Gibson. Action: G. Broker/Dealer Questionnaire Responses Rec: Update on responses received by Jean Ruth. Action: H. �y of Palm DeserUPalm Desert Redevelo�ment Agency Investment Policy Annual Review Rec: Review Investment Policy with revisions as noted. Action: VIL REPORTS AND REMARKS A. Renorts and Remarks by any Committee Member B. Items to be placed on the Next Agenda VIIL NEXT MEETING DATE Next regularly scheduled meeting is �c���'L�11�1Ii� ll�� Il��7/ �1C[ S1S1R�� �ti�soti�� IX. ADJOURNMENT �T^� City of Pa1m Desert � Council Agenda Request MQQtI]]g Qf FEBRUARY 13, 1997 . To be considered under: Consent Calendar_ Resolutions Ordinances New Business Old Busincss_ Infotmational Items_ Public Hearings_ Other_ 2. Item Title: (Please provide the wording that should appear as the item's title on the agenda). � � - RECEIVE & FITF• Mi utas f th T) h ifl� 1�qF. 7 r � F'iiiailcG �,... � � - Committee Meetin¢. ' � � � 3. FinanciaL• (Complete'ffapplicable) (a) Account/Project# (b) Amount Requested (c) In tlie Current Budget7 (c) Appropria6on Required7 Approved by Director of Finance: 4. Submitted by: PAUL S. GTBSON, DIRECTOR OF FINANCE/CITY TREASURER 5. Approvals: Depaztment Head City Manager Minutes Finance Committee D. Alden Caoital Markets 1) Committee requested further information of Mr. Ortega on this organization and its proposal at the November 12 meeting. Today he provided another handout. He reported on the Agency's research to acquire funding for present and future projects, with regard to the March 1996 refinancing process which did not materialize due to a fluctuating interest market affecting amount of present value savings realized below the amount set by the Committee at that time. Alden Capital Markets has reevaluated this issue, as well as someone who works for RDA, independent of the underwriters (Kinsell, O'Neal, Newcomb & DeDios, and Redwood Securities), who is looking over the proposal of Alden . We have recently dealt with Redwood Securities, and have worked with the Kinsell firm for the past 15 years; Alden is new on the scene. All three proposals are being analyzed to see if, in fact, there is the present value savings to proceed with the refinancing at this time. Current indications are that interest rates may hold through the months of December, possibly January; no guarantee they won't move up in February. Therefore, if decision made to go ahead, would probably need to complete in January; bring to Council in early January. Still in the analysis phase; looking for present value savings of at least $2.8M. (Based upon our own calculations, currently reflecting $2.3M.) 2) There are several outstanding bond issues with reserves. Reserve is a requirement of the rating agencies and insurance agencies for setting aside funds equivalent to about one year's debt service. This is to be used in case you cannot make the payment for a particular year (i.e. market values went down and the Agency did not receive the tax increment it had planned for, then we would use the reserve fund). Over the last few years, MBIA (insurer) has developed a new product for accessing the reserve funds, as opposed to issuing additional debt, MBIA will provide a surety for it and substitute the surety for the reserve, if you want to use it. 3 `' Minute� Finance Committee From the information provided here, it turns out that in Project Area No. 2 (big project going here), we have the ability to access No. 2's reserve funds. On the second page of the handout, you will see that in 1992 we issued $17M, which is in the bank and ready to be used when needed on the Desert Willow Project. In 1995, we also issued a $4.9M, from Project Area No. 2 (part of City including the Marriott), and the analysis shows we could access about $1.5M, net of the surety costs, legal fees and trustee's fees. The letter indicates if we would do this by December, which of course, cannot be done, as Bill Strausz, our legal counsel, says that this requires specific authorization by the Agency Board, and this Thursday is the only meeting before next year. If we want to do this, we would not proceed until January. 3) To the extent that we would need additional funding, here is how we could access $1.5M. Mr. Gibson asked if the $1.5M could be used just on Capital Improvement Costs, or if it could be used to pay Principal and Interest Debt? Mr. Ortega answered that the indenture basically says that the reserve fund can be used to make debt service payments. So we would use the reserve fund to make the debt service payments, then this would free the tax increment. This is exactly the substitute we're looking for, because we are looking to enter into a transaction with a private individual (i.e. Intrawest), we would need to use cash, as opposed to bond proceeds. Mr. Gibson also asked about the refunding potential, and if it would be going back to council with the three bids in January. Mr. Ortega answered that we would go back to council, if the present value savings are there at that time, would take to council to get authorization to do a refunding. This would be a refunding of a portion of the issue done in 1992 ($100M issue). The target is somewhere around $2.8M of present value savings, this is what we are recommending (almost 4%). Mr. Veazie commented that he agreed with the present value savings concept and saving taxpayers' dollars; however, he expressed his reservations about the concept of tapping into the funds set aside as "reserve", even though 4 Minutes Finance Committee he felt that MBIA was a fine company. He felt that the reserves were pledged to prior issues, and utilizing them for anything other than this purpose is an abrogation of an agreement with a bondholder of the prior issue. Mr. Veazie further questioned what other agencies have used this product. Mr. Ortega responded that, he, too, questioned this fact and was provided with information on the City of Hemet, who has recently utilized this product. Ms. Benson asked whether this was, in essence, "borrowing for Desert Willow", when she was under the impression that there were adequate funds for the project, additional borrowing would not be necessary. Mr. Ortega answered that there is enough money for Desert Willow; however, to the extent that we want to do projects in the downtown at the same time (i.e. Town Center Parking Structure), we would have a method of obtaining funds for the parking structure proposal if needed. Mr. Ortega further stated that by January, updated financial status will be provided. Mr. Gibson commented that another point to note was that the current bond issues are nontaxable. To use money for the South Course, this has to be either a taxable bond issue, or using tax increment. Typically, we have tried to keep the tax increment for making debt service payments (principal & interest). The more tax increment used for the South Course, the less you have as excess for debt service payments. Mr. Gibson stated that he agreed with Mr. Ortega's proposal as a good idea to free up some initial funds for the South Course. Ms. Benson stated that she was still concerned about spending for the South Course until all the money was available to do so. Mr. Kelly stated that we do have it, but that we're exploring alternatives should we want to do more projects simultaneously . Mr. Ortega added that this was simply a way of making available the funds in a way that they are still secure, yet avoiding issuance of taxable debt (that is'costly to us); by freeing up our cash which has no restrictions. We would 5 Minutes Flnance Committee free up some Project Area No. 1 money so that we could do additional projects. He further edded that Desert Willow is financed by two sources of funding: Project Area No. 2, and Project Area No. 1. Of course he reiterated that this is subject to our legal counsel perusing the surety and all the legal issues, and says it is okay to go ahead, and if the Committee deems it a viable action. Ms. Benson asked if the Town Center had submitted anything to the Agency. Mr. Ortega said that he had not yet received a proposal; however, he was planning ahead should this become an issue the Council wishes to approve, RDA is ready to act. NEW BUSINESS A. � and Redevelopment Agency Investment Schedule Ms. Ruth reported that this month's report includes a Table of Contents for each set of reports (City and RDA), due to state's regulations regarding such reports and what inclusions are necessary by the reporting agencies to their governing bodies. She noted on the Redevelopment Agency Schedule first page is the portfolio master summary report. On the upper right-hand side is the "Yield to Maturity° on the portfolio which has dropped a bit due to the last, large bond issue (almost $15M) into the Fidelity Account as the money is needed for escrow closings on Desert Rose. All of the Fidelity Accounts are really "sweep accounts" tied to bond issues so that when something matures in a bond issue, the trustee automatically puts it into the Fidelity Account. Thus the large balances, and the next month will show a small balance when money is taken out and invested. However, the "Effective Rate of Return" is at 6.04%, and this is a high amount reflecting the profit-taking done during the month. The City Schedule reflects a similar situation, but it did not have such dramatic transactions during the month. Staff realizes the enormity of these reports for the Committee and asked that should the members have any questions, Mr. Gibson and Ms. Ruth woufd be happy to address them. With a meeting date later in the month, staff 6 Minutes Finance Committee plans to be able to include the reports in the Agenda packet distribution. Receive and file report, provide to City Council. g, RwviPw Short Term Investments Maturing in December 1996 There are none in December 1996. As discussed at the 11/12/96 meeting, took profit from investments in late October, early November 1996, and there is a lot of interest coming in, with more than enough liquidity with the LAIF account. Ms. Ruth stated that January looks like it will have more profitability with some issues, and she will be taking advantage of the profit-taking if/when it occurs. C. s+a+p �f California Local Aaency Investment Fund Monthly Renort Ms. Ruth noted that one account reflects a zero balance, these � were bond proceeds which closed out October 1, 1996. However, there is one more interest payment which will come in January. After that payment is received, we will no longer receive this accounYs statement. Receive and file report, D. Monthly Financial Re�ort for Citv Council Mr. Gibson stated that since the November books have not yet been closed (this is normally done on the 10th of the month [today]), the Monthly Financial Report is not available at this time. He will provide it to City Council as soon as it is processed. E. Parkview Professional Office Buildings - 10137196 Financial Renorts Receive and file report; submit to City Council for their review and information. Mr. Gibson noted that a lease renewal had just been processed for Senator Kelly. He also noted for the .Committee that the net income total is $378,641.67 for the 10-month, period of time; 7 Minutes Finance Committee October's net income is $27,772.69. This rate of return can be attributed to the fact that there is no debt service payment. Ms. Benson asked whether this money was placed into a separate account, for maintenance and renovation. Mr. Gibson replied that as far as renovation of the building, this is considered enterprise fund; therefore, it has depreciation, just like private business would, and it has accumulated depreciation for the cost of renovating. Ms. Benson asked where the profits from the rental are. Mr. Gibson replied that there are separate (from the City's) bank accounts, checking and savings. To date a determination has not been made as to: 1) What are proceeds to be used for? Mr. Ortega and Mr. Gibson need to meet to discuss this issue. 2) The auditors gave Mr. Gibson a copy of Government Code Section which states ".....the RDA can only have a rental property for a reasonable period of time." Mr. Gibson has asked RDA's attorney to provide an interpretation of what a reasonable period of time is, before RDA has to relinquish it. They can give it to the City, and this would be a way of giving it up. Mr. Gibson estimated that by the next budget session, this determination would be made. Ms. Benson then asked if RDA gives it to the City, could the proceeds go into the City's General Fund? Mr. Gibson stated that some legal work would need to be done in order for this to take place, but staff is now researching the possibility. Ms. Ruth added that the bank balance in the RDA Investment Report does reflect these accounts for this entity. Mr. Gibson added that since there has not been a determination of usage of these funds, no investment activity for these proceeds has taken place until such time as Council action dictates. Mr. Kelly asked whether the landscape and maintenance for this area are allocated. Mr. Gibson answered that there is a separate landscape contract for this complex, and it gets charged directly to it; as does all other related expense. Ms. Benson stated that maybe if these proceeds are transferred back to the City, the funds could be used for the library, as this is a new source of income;and City will be looking for this. 8 Minut�s Finance Committee Mr. Gibson expressed that at the next Committee meeting, he is preparing a slide presentation to address the City's financial statements. One of the items is the Office Complex due to some specific accounting action which was taken when the complex was acquired from the previous owners; one of which was to write off some of City's investment on the building because of the difference between what they said it was appraised at versus its value at the time City loaned the money. F. R�e uest for Pronosals - Banking Services Ms. Ruth told the Committee that the City has not gone out for an RFP-Banking Services for about 15 years, and because there has been so much change in the banking industry, we felt it was very important to go out and see what betteddifferent products (i.e. Positive Pay), and/or institutions are available to us. It encompasses-- General Banking Services, Custodial Services and Trustee Services. General Banking Services means day-to-day bank accounts, wiring services, stop payments, this type of product, which Bank of America is currently handling for us. Custodial Services are the function of safekeeping our investments in the trust department of a bank, currently handled by Bank of New York. Trustee Services are handled through First Trust. These were all formerly handled by Bank of America, then parcels of their institution were sold off to the various organizations, hence the reason we have three different providers currently. Mr. Gibson stated that the way the RFP is drafted, conceivably, we could end up with three different entities again— Banking, Custodian and Trustee. We wanted to have this flexibility; and, for internal control, iYs almost better to have a separate custodian from the trustee and bank. But it also leaves the option for an institution who wishes to provide all three services, and if there is a monetary advantage for a complete package, this would be taken into consideration. Ms. Benson questioned whether the RFP mandates the successful bidder for General Banking mNst maintain a Palm Desert office. Mr. Gibson and Ms. Ruth ansvuered yes; and, in addition, noted that for Mr. Erwin's review, is language to the 9 • Minutes Fi�ance Committee effect that the successful institution must keep its branch in Palm Desert open; closing of the local branch would be a breach of the contract. Mr. Gibson learned at a recent League of California Cities Financial Management Seminar that several California cities have lost the branch in their town and the ability to make deposits within the city limits; they have to go to a neighboring city. The bank reasons it has a center at the grocery store; however, this limited access cannot provide the City with the services it requires. The other services (Custodian and Trustee) could be provided from outside the City limits. Ms. Ruth requested of the Committee to make careful review of the package, and provide a thorough critique to her so that it comes across in a manner fitting the City of Palm Desert. Mailing is scheduled for the first week of January. If Committee members have particular institutions they want to be included on the mailing list, please let her know. Currently the following have requested the package: Bank of America, Union Bank and Wells Fargo. Mr. Veazie questioned Ms. Ruth whether having all three functions done by one institution would be more beneficial to us. Mr. Gibson answered that there are some benefits of having all three handled by one institution (i.e. less paperwork). Ms. Ruth added that in the General Banking Services as currently handled by Bank of America at the local branch, their main office Government Services Department is designed specifically to take care of government; and if there is any problem anywhere in our dealing with Bank of America, all she has to do is call Govemment Services Department and iYs taken care of. So in this respect, if we had all three functions at one bank, we would have this same service. 10 ��� Minut e s � � . Finance Committee CONVENE On December 10, 1996, the Investment & Finance Committee was called to order at 9:07 a.m. by Mr. Gibson. ROLL CALL Dick Kelly, Jean Benson, Dave Ervvin, Carlos Ortega, Murray Magloff, Bill Veazie, Paul Gibson, Jean Ruth, Rachelle Klassen A s n : Ray Diaz APPROVAL OF MINUTES Upon motion by Mr. Erwin, seconded by Mr. Magloff, Minutes of the November 12, 1996 meeting were APPROVED as submitted. Motion carried unanimously. Ms. Benson abstained from the vote due to this meeting being her first attendance as Mayor Pro-Tempore. ORAL COMMUNICATIONS None OLD BUSINESS A. Status of Public and Private Partnershi�s Backaround Checks for Section 4 Mr. Ortega reported that he was leaving the Committee meeting early in order to meet with the Park West representatives regarding establishment of their California corporation. He will be providing further details at the next Committee meeting. B. Palm Desert Water 8 Services District l�date Mr. Gibson reported to the Committee that a meeting has been scheduled between City Staff and Coachella Valley Water District (CVWD) representatives December 17, 1996. At this meeting, staff anticipates receipt of letter from CVWD stating their acceptance of all assets and liabilities from the former Palm Desert Water & Services District, including transferring of land deeds, vehicle titles, etc. However, the transfer will not occur without CVWD's letter of acceptance. Mr. Gibson also stated that they would also be discussing any issues that Public Works may have-- their desire to take some of the easement where those water sheds are; CVWD is not planning to use those two sheds. Ms. Benson asked Minutes Finance Comm�ttee whether the one on San Pablo was affected. Mr. Gibson answered, he understood they would tear that one down. Mr. Kelly asked about the water tanks, one on San Pablo Avenue and one on Portola Avenue, whether we would be able to dispose of them. Mr. Gibson responded that this was his understanding; however, the City will probably incur charges for this. Mr. Gibson asked Mr. Kelly and Ms. Benson if there were any other issues they wanted addressed at the 12/17/96 meeting. Mr. Kelly asked about the location of a pump at the corner of Portola Avenue and Fred Waring Drive, if it could be eliminated or somehow relocated so that a right- turn lane could be constructed at this intersection. Mr. Gibson took note of these items and will address them at the 12/17/96 meeting. Mr. Gibson said he would like to have the intentions of CVWD in writing, as well. Ms. Benson asked whether CVWD would be keeping the office building and the house. Mr. Gibson said that to date, CVWD has expressed that they do not want those buildings; City has looked at potential for low-income purposes, and Terre LaRocca said that they we would not be able to use them for our needs in their present state, would need substantial investment to bring up to standard. Mr. Gibson said, however, that the house located across the street from the office will probably be sold, the former employee who lived there said he was interested in it. C. Builders Industry Association Developer Fees Reoort Request for report viewing made at November 12 meeting. Receive and file the report which was submitted to City ' Council at their November 14, 1996, regular meeting. City is in compliance with the projects it has budgeted for which � fees have been collected. Mr. Kelly noted that at the next Council meeting, there is an item asking for appropriation of $2M for the Soccer Field Complex, which falls under this category. 2 RFP for BanKing Services MAILING LIST 1/8/97 Bank of America Mark C. Hewlett,vice President Government Services Divtsfon Relationship Management 1434 365014th Street, 2ntl Floor RiVerside, CA 92501 (909) 781-1489 Bank of America (copY) Palm Desert Office 73-820 EI Paseo Ave. Palm Desert, CA 92260 1619) 340-1867 BNY WeStern TrUSt COmpany M2ri2 AIIiSOn, Manager 700 South Flower Street, Suite 200 LOS AngeleS, CA 90017 (2131630-6328 Chemlcal TrUst COmpany Of CalifOfnla Nancy J. Mancuso,Vice Presitlent 101 C211f0Y11i2 St�2@t, SUit@ 2725 San Francisco, CA 94111-5830 (415) 954-9542 Eldorado Bank 73301 Higtlw2Y 111 Palm Desert, CA 92260 (619) 34a1861 First Trust California Kurt R. Peterson, Sr.Vice Presitlent & Regional Manager One California Street, Suite 400 san Francisco, CA 94111 1415) 273-4565 FIr5tB211k NA Davitl Tschopp 73000 HighW2y 11'I P21m D@S2f't, CA 92260 (619) 341-7000 Palm DeSert NatiOnal Bank 73-745 EI P2S80 AV2. P21m D252t't, CA 92260 (619) 340-1145 State Street Bank and 7rust Company of California, NA J2r11112nn MII12ftll,Vice President 725 South Figueroa Street, Suite 3100 Los AngeleS, CA 90017 (213) 362-7313 U.S. Trust Company of California StU2r't M.Welss,vice President 515 SOuth Flower Street, Suite 2700 Los Angeles, CA 90071-2291 (213) 861•5084 Union Bank of California Donna Hotlgson,Vice PresitlenVManager Covernment Services 350 Californ(a Street, 11th Floor San FranciSCO, CA 94104 (8001833-4758 Union Bank of California lcop1� Palm Desert OfffCe 73-785 EI Paseo Ave. P81t71 D2S@ft, CA 92260 (619) 341-1570 Wells Fargo Bank Richard Babbe,Vice Presitlent 5000 BfrCh Street, Sulte 10000 Newport Beach, CA 92660 (714) 253-4300 Wells Fargo Bank ccopyl 74-105 EI P2S@0 Av@. Palm DeSert, CA 92260 City of Palm Desert Month-end Investment Report D2C2mb2P 31, 1996 TABLE OF CONTENTS INVESTMENT INFORMATION FOR ENTIRE PORTFOLIO Portfolio Master Summary � Investment Portfolio Detail - Investments 2 Investment Portfolio Detafl • Cash 5 Portfolto Master Investment Activity by TYpe 6 Investment ActivitY Summary 9 Distribution of Investments by rype �0 Interest Earnings Summary 11 Investment Portfolio ComplianCe Checkiist 34 INVESTMENT INFORMATION BY FUND/BONb Assessment District 83-1 12 1995 Refunding Bond 84-1•R 14 Assessment District 87-1 15 Itldiell Rfd9e 91-1 S2P18S A �� 111di211 Rldg@ 91-1 S@rfe5 B 19 Sierr2 NOV2 92-1 21 Big HOFI1 94-1 23 Sunterl"dce 94-2 25 Merano 943 2� 95 ReV211U2 83-1, 84•1-R, 87-1 29 City General Fund 31 City Loan to RDA 33 O1/OB/1997 City of Pelm Deeazt ^ � - 1 PORTFOLIO MASTEA BUHIAhAY CITY D&CBFIDBR 31� 1996 ���N' AVEPAQE '--YIBLD TO MATURITY'-- PBRCBPT OF AVEAAQE DAYB 10 360 365 INVE87MENT8 HOOR VALUS PORTFOLIO TffiiM MAT[7AITY BQlIIVALBNT BQUIVALENf _'____'___"__"______"____'__'__"'___"____'______'__"'___'"____'___'_'___"_______"____'____"___'___"'__'_________'_______'_ P19elSty Treaeuzy Pool.......................; 5�420,099.00 6.97 1 1 5.051 5.121 Local Agency Inveatment Punde................i 12,092,198.62 15.56 1 1 5.524 5.601 Cov�eroisl Paper - Diecount..................� 2,669,163.20 3.18 83 12 5.417 5.692 Federal Agency Iaeues - Coupon...............; 11,171,503.26 14.37 1,120 906 6.039 6.122 Tieaeury 88Cuiltiae - Coupon.................= 27,576�693.26 35.68 704 653 5.966 6.046 City Loan to ADA.............................; 19,000,000.00 24.44 2,192 1,662 5.662 5.538 '"'_""'_"_""""_""_'__"""__"""'_"'_"'_"__"___"_"___'__'___ TOTAL IIN88�[iTe end AVBPAGBB.............; 77,729�657.16 100.009 950 693 5.7028 5.7826 CABH Yaeebook/Chxkicu� - No Yieltl Totale..........$ 6�766�022.24 1.903 1.929 (not included in yleld calculetione) Accrue�l Intereet ai Purcheee.................= 69,269.28 ___'_'_"'___""""_"""'"""'_.._""_""____"'_"_"""_""""""' TOTAL CABA and PURCHA88 INT�tE9T.............§ 6.813�291.52 TOTAL CABH and IRVSBTMENTs.................; 82�562r968.66 MONTH EFIDING FI9CAL TOTAL SARNIR08 DSC�IBEA 31 YSAR 10 DATE Currant Yeer S 396,997.23 y 2,607,272.20 AVBMOS DAILY BALANCE = 78�223�897.76 ; 83,179�606.59 &PFBCTIVE AATE OP RSlUAN 5.98i 5.764 The invectment portfolio of the Clty of Palm Dacert compliee with ite Inveetment Eaul 8. Oibeon PolScy mA the Celifornin Gwex'[imBnt Cofle eectione partaining to the inveetment Treaeurer oY local sgeztcy funde. Yending eny futuie ectiona by tt�e Clty Council ox any unfoseceen cetaotrop�y the City haa an aAequete caeE flw to meat ite expendltuze IBquli'emeRtO foL thB next s3X �nthe. The montlrend merket valuee p�g were o6tainad from Piret Truet and IDC Detafaed pricing aervice. O1/OB/1997 City oL Palm Deeert � - a INVfiBTMENT POATFOLIO DETAILB - INVE8ITffiiTe CITY DECePIDBA 31� 1996 ���' INV88TMENT AVSAAG& PUACHABE BTATBD __' yq}� _'_ MATURITY DAYS NUFIDSR I88USA HALANC6 DATE BOOR VALO& FACB VALVE MAAABT �'N.US N#PE 360 365 DATE TO MAT "____"""______"_'_'_'_'__________"_"_'_'"____'_""_"_'_"'_"___""_'___'_'__"__'__'___'_'_"_____"__'_'___'_____'____' PID&LITY TR6A8UAY POOL 12006 PSdelity Inetitutioml Caah 52.00 52.00 52.00 5.170 5.099 5.170 1 12005 Fidelity Inatitutlonal Caah 50.00 50.00 50.00 5.170 5.099 5.170 1 12006 R Fidelity Iaetitutional Caeh 246,853.00 T66,853.00 246,853.00 5.120 5.050 5.120 1 12007 Pitlelity Inetitutioml Caeh 19,636.00 19,636.00 19�636.00 5.120 5.050 5.120 1 12009 I Pldelity Inatitutional Caeh 33�992.00 33�992.00 33,992.00 5.140 5.070 5.160 1 12010 A FSdelity Inetitutional Caeh 126�977.00 126�977.00 126,977.00 5.1A0 5.070 5.160 1 12011 FSAelity Inetitutional Cash 18.00 18.00 18.00 5.160 5.070 5.1C0 1 12012 I Plflellty Inatitutloml Caeh 388,6fi6.00 388�666.00 388,666.00 5.120 5.050 5.120 1 12013 A Fidelity Inetitutionel Caeh 125,977.00 125,977.00 125,977.00 5.120 5.050 5.120 1 12015 FStlelity Inetltutioml Caeh 634.00 636.00 636.00 5.120 5.050 5.120 1 12016 I Fidelity Inetitutional Cae� 765,180.00 765,180.00 765,180.00 5.120 5.050 5.120 1 12018 A Fidelity Insiitutioml Caeh 721,613.00 721,613.00 721,613.00 5.120 5.050 5.120 1 12019 Fidelity Inetitutional Caeh 99.00 99.00 99.00 5.120 5.050 5.120 1 12020 I Fitlelity Inetltutionel Caeh 6,973.00 6,973.00 6�973.00 5.120 5.050 5.120 1 12021 FSdellty Inetitutioml Caeh 263.00 243.00 363.00 5.160 5.089 5.160 1 12022 R PSdelity Inetltutional Caeh 1,280,422.00 1,280,522.00 1,280,522.00 5.120 5.050 5.120 1 12023 PSdellty Inetitutional Caeh 21�585.00 21,585.00 21,585.00 5.120 5.050 5.120 1 1202d Pidelity Inetitutional Caeh 1�401.00 1,601.00 1,601.00 5.120 5.050 5.120 1 12025 R Fidelity Inetitutional Cneh 697,127.00 497,127.00 697,127.00 5.120 5.050 5.120 1 12027 R Fidelity Inetitutianal Caeh 65,667.00 65,667.00 65,667.00 5.160 5.070 5.160 1 12028 R FSdelSty Inetltutioml Caeh 167,059.00 167�059.00 167,059.00 5.120 5.050 5.120 1 12031 FSflellty Inetituiional Caeh 12,306.00 12,106.00 12,306.00 5.170 5.099 5.170 1 12032 Fidelity Inetltutiannl Caeh 32.00 32.00 32.00 5.160 5.070 5.140 1 12033 Fidelity Inetitutlonal Caeh 81.00 81.00 81.00 5.160 5.070 5.140 1 12034 PSAelSty Inetltutioml Caeh 194.00 196.00 196.00 5.160 5.070 5.1d0 1 12035 FSdellty Inetitutlonal Caeh �96.00 796.00 796.00 5.120 5.050 5.120 1 12036 F1Eality Inetltutioml Cash 362.00 342.00 342.00 5.120 5.050 5.120 1 12037 Pidelity Inetitutioml Cae� 19.00 19.00 19.00 5.120 5.050 5.120 1 12039 FiCelity Ineiltutlonal Caeh 120.00 120.00 120.00 5.120 5.050 5.120 1 12062 I FiCelity InetltutloMl Ceeh 706�355.00 706�355.00 706�345.00 5.120 5.050 5.120 1 12063 Fitlelity Inetltutional Cae� 50,804.00 50�804.00 50,804.00 5.120 5.050 5.120 1 12063 A Fidelity Inetitutionel Ceeh 168,136.00 168,126.00 16e,126.00 5.120 5.050 5.120 1 12064 Fldelity Inetltutloml Caeh 0.00 0.00 0.00 5.120 5.050 5.120 1 12065 FSflellty Inetitutlonal Caeh 181.00 181.00 181.00 5.120 5.050 5.120 1 12046 Fidelity Inotltutlonal Ceeh 30�823.00 30�823.00 30�823.00 5.160 5.089 5.160 1 '_"_""""'_" "'""""""" """"'""" "'____""_"' "__" _"___ '_"" BUHTbTALB and AV�iA088 6,125,786.74 5,420,099.00 5,420,099.00 5,620,099.00 5.051 5.121 1 MANA6SD POOL ACCWNTB 12060 Pacific Horizoa Treneury Pu 0.00 0.00 0.00 6.900 6.833 4.900 1 12061 Paciflc Hatizon Treaeuxy Fu 0.00 0.00 0.00 6.800 6.736 6.800 1 _"_"""______' _"'_______"' "_'_'__""" '______"""' ""'_ "_"_ '_"" SUHTOTALB enQ AVEPAGB9 16�832.90 0.00 0.00 0.00 0.000 0.000 0 li O1/OB/1997 � Clty Of PalID Deeert PM ' 3 SNV881T�Nf POATFOLIO DHTAILB - ItN89'aASNTB CITY D8C8MBSR 31� 1996 �'�� INV88TMENL AV&AAG& PUACHABE 8TAT6D "_ y'B1 _" MATURITY DAYB NUDIDBR I9SUSR BALANC& DATE BOOR VALUS PACB VALUB MAA1�T VALU% AAT& 360 365 DATE TO MAT IqCAL AGHNCY IINS3TDffi7T FUtID3 12000 Local Agency Inveetment Pun 12,�92,198.62 12,092,198.62 12�092,198.62 5.601 5.526 5.601 1 AVEAAGES 12,672�843.58 � COtM1ERCIAL PAPEA - DISCOUNT 20001 OotMm Funding Co�eccial P 10/22/96 2�669�163.20 2,500,000.00 2,672,500.00 5.350 5.617 5.693 O1/13/97 12 AVffiiA0S8 2�669�163.20 FBDSRAL AGBNCY I88UH8 - COVP�i 10003 I Federal 8oma Loan eenk 12/12/95 1,000,000.82 1,000,000.00 1,000,000.00 5.420 5.397 5.a72 OS/02/97 1 I6005 I PaCezal Home Loen Hank 12/12/95 1,021,002.59 1,000,000.00 1,000,625.00 6.285 5.608 5.686 07/28/00 1,304 16006 Pedaral H�e Lomm Be¢k 11/01/96 1,998,791.67 2,000�000.00 2,003,125.00 7.250 7.263 7.364 11/O1/O1 1,765 16007 Federal H�e Loan Bmmk 10/26/96 3,986,380.69 6,000,000.00 3,988,750.00 5.820 6.019 6.102 11/02/98 670 16001 I Federal National Mortgage A 12/12/95 1,001,959.84 1,000,000.00 1,000,000.00 5.650 5.386 5.661 10/20/97 292 16002 I Pederal Netional Mortgege A 12/12/95 1�066,991.73 1�000�000.00 1,056,375.00 8.650 5.877 5.958 07/12/99 922 14006 I Pederal National Mortgege A 12/12/95 1,098,376.12 1,000,000.00 1,082,812.50 9.050 5.620 5.699 04/10/00 1,195 _"_""""_"_' "'___"""" "____"""__ """_____'_' '_____ "__" ""__ BUHTOTALB end AVSNAG88 11,173,712.01 11,171,503.26 11,129,687.50 11,000,000.00 . 6.039 6.122 906 FEDSPAL AOffi7CY I88UE8 - DIBCOONT � AVSPAGBS 152,752.56 TREASURY SBCURITIEB - COUPOF 16001 Vnited etatee Txeaeury 10/27/96 1�999,788.01 2,000�000.00 2,003�125.00 6.750 6.720 6.818 02/28/97 58 16006 United States Treaeury 12/12/95 385,911.56 384,000.00 385�721.88 6.B15 5.235 5.308 02/28/97 58 16005 [lnited etatee Treaeury 12/12/95 292,226.50 291,000.00 291,272.81 6.000 5.266 5.319 OB/31/97 242 16006 A United Stetee Treaeury 12/12/95 688,035.70 686,000.00 483,395.00 5.875 5.261 5.316 08/15/98 591 16007 I United etatee Treaeury 12/12/95 1�025�867.27 1,000,000.00 1,OOB,750.00 6.375 5.338 5.613 O1/15/00 1,109 16008 R Unitetl States Treaeury 12/12/95 672,638.83 645,000.00 665,998.44 8.000 5.279 5.352 OB/15/99 956 16009 I UniteC Stetee Tieaeury 12/12/95 1�030�855.26 1�000�000.00 1�023�637.50 7.875 5.212 5.286 06/1S/98 669 16010 I United Statee Treaeuxy 12/12/95 1,029,051.06 1,000,000.00 1,020,000.00 7.125 5.272 5.365 SO/1S/98 652 16034 United Statee TLeaeury OS/31/96 1,998,687.81 2,000,000.00 2�001,250.00 6.000 5.967 6.050 05/31/98 515 16035 United Statae Txeaeury OS/31/96 1,976,672.27 2,000,000.00 1,981,250.00 5.125 6.061 6.125 03/31/98 454 16036 Uniled Statae Treasury O6/26/96 2,979,065.07 3,000,000.00 2,996�250.00 5.875 6.252 6.338 OB/15/98 591 16037 Unitetl Statee Treaaury O6/26/96 2,933�050.16 3,000,000.00 2,957,812.50 5.125 6.316 6.602 il/30/98 698 16038 United 3tatee Traaeury O6/26/96 1,986,862.67 2,000,000.00 1,990,0OO.OD 5.375 6.052 6.136 11/30/97 333 16039 United 8tatee Tleeeuxy O6/26/96 1,999,673.61 2�000,000.00 2,001�875.00 fi.000 5.950 6.033 08/31/97 262 16042 Unitad 8tatea Treeeury 09/13/96 1�9'/7�431.40 2�000�000.00 1�981�250.00 5.125 6.068 6.152 07/28/9B 623 16063 Unitetl etatee Treaeury 09/13/96 2,005,196.51 2,000,000.00 2,005,625.00 6.500 5.593 5.670 04/30/97 119 1606a I United etatee Treaeury 09/13/96 1,003,166.63 1,000,000.00 1,002,812.50 6.875 5.468 5.563 03/31/97 89 16065 UnSted 8tatae Treaeusy 09/OS/96 1�992,806.96 2,000�000.00 2,005�625.00 6.125 6.270 6.358 08/31/9B 607 BUBTOTALB and AV�tA088 28,037,307.99 27�576�693.26 27�605,650.63 27,605�000.00 5.966 6.046 053 ✓ O1/OB/1997 Clty of Palm Deeext � P!1 - 6 INVSeTMENT POATPOLIO DSfAILB - INVE9aA&iT8 CITY DSC&!ID&R 31, 1996 ACCRUAL INVH9TFffiNT AVSAA08 PUACHABE BTATSD '-' Y1M "- MATURITY DAY8 [NlIDER I88V8A BALANC& DATB HOOR VALUS PACS VALVB MAA1�T VffiVS PATB 360 365 DATB 1D MAT CITY LOAN TD RDA � 12001 Aedevelopment Agancy-Loan 07/O1/95 19�000�000.00 19�000�000.00 19�000�000.00 5.538 5.462 5.538 0�/OS/O1 1�662 AVIItAG&B 19�000,000.00 "______________'_"""""""'______"""'_"""""_'_"""""'_"""""___"_"_""""_' TOTAL INVS8IUffi7T8 end AVG. S 77,729,657.14 77,719�935.55 77,668,398.99 77�617�297.62 5.702i S.7B26 693 I Minutes Finance Committee REPORTS AND REMARKS A. Any Committee Members' Re�orts and Remarks Review Meeting Date - Paul Gibson With a new Mayor and Mayor Pro-Tempore (Dick Kelly and Jean Benson, respectively) serving, Committee needs to establish a mutually convenient meeting time for all the members. In the interest of time for closing the monthly books and preparing the reports for the Committee to have in advance of the meeting, it was hoped that a day in the third week of the month could be selected. After thorough discussion, Committee unanimously approved the next meeting, and all subsequent until further notice, for the third Wednesday of the month at 11:00 a.m. in the North Wing Conference Room. Therefore, the next Committee meeting will be held Wednesday, January 15, 1997, 11:00 a.m. At this meeting we will plan to serve a light lunch of sandwiches and salads. Welcome Jean Benson! Mr. Veazie and the rest of the Committee extended their welcome to Ms. Benson, this being her first Committee meeting since becoming Mayor Pro-Tempore at the November 14, 1996 City Council Meeting. McCallum Theater- Bill Veazie Mr. Veazie commented that he had seen a recent news article regarding the McCallum Theater and its projected deficits. He was surprised to learn there were only 1,100 seats in the facility, when he thought there were 3,000. He also wondered whether an audit report was available for perusal. Ms. Benson answered that the Washburn report would probably answer most of Mr. Veazie's questions. Staff provided Mr. Veazie with a copy of a report from Washburn Theatrical Management. NEXT MEETING DATE The next Investment & Finance Committee will be held Wednesday, January 15, 1997 at 11:00 a.m. ADJOURNMENT The Investment & Finance Committee adjourned at 10:13 a.m. on a motion by Mr. Magloff and seconded by Mr. Veazie. Re�peFtfully_su , � � � � � ' � � ;, .,. c RACH LLE D. KLASSEN, R CORDING SECRETARY 11 01/OB/1997 � City of Palm Deeert � PM - 5 INVE91bffiiT PORTPOLIO DBTAILB - CABH CITY D&CEPIDBR 31, 1996 ACCRUAL INV881R�ffiAT AVBAAGB PURCHABS BTATSD '-' Y'IIA --' I4ATURIIY DAYB NUPIDER I89U&A HALANCC ppTg HdOR VALVE FACB VALUE MARRSP VALVE RATB 360 365 DATB TO MAT PAe8HO0R/C�CRIH6 ACCOUNTB 13000 eenk of Amarica - Checking 168�377.36 0.000 0.000 0.000 13002 Hank of America - 8evinge 6,575,628.30 2.000 1.973 2.000 "_"""""' _""'__""'_ """ """ eVeTOTALB md AVSliAO88 575�498.'/7 4�746,022.24 1.903 1.929 Accsued Intareet at Purchaee 69,269.28 ""'"""""""""""'"""""""_""""""""""""""'_"'_"_""' TOPAL CABH ; 6,813,291.52 TdfAL CABH anE INVSBTt�NPB S 78,223,897.76 82�562�918.66 e.��e�as�v���..�..�...���..""""'�""'�"�"'.�"""�"""""""�"""'�'�"�""""'�'�"' s O1/OB/1997 City of Palm Deeart PM - 6 - yORTFOLIO MABTEA INV&8TAffiNT AGTNITY BY TYPB CITY D&CSlID&R 1� 1996 - D8C&EIDER 31� 1996 ACCRUAL 8TA'l� TAANBACTION PURC9A8S9 8ALB8/MATURITISB TYPH IPV58TI�Nf i1 288UER AATS DATB OA DSP08IT9 OA WITHDAAqALB HALAPCB __""___'__'__"'_____'_______'__"_"'_"""_"_'_"_'_"___"_'______"'___'____"'____'__"__'_____"____"_______'_'_'_'_____ FIDSLITY TASASURY POOL (MontRly Summary) � 12004 PSCelity Inetitutionel Ceeh 5.170 12005 Fitlellty Inetltutlonal Cee� 5.170 1.00 12006 A Fidelity Inetltutional Caeh 5.120 1�620.00 12007 PiEelity inotltutional Cae� 5.120 31.00 12009 I Fidelity Inetitutianal Caeh 5.1d0 139.00 12010 R £idellty Inetitutional Caeh 5.160 356.00 12011 PSdalSty InetStutional Cae� 5.160 12012 I Pldelity Inetltutional Caeh 5.120 1,545.00 12013 A Pldellty Inetltutional Caeh 5.120 501.00 12015 Fidality Inutitutionnl Cach 5.120 3.00 12016 I Fidelity Inetitutional Caeh 5.120 2,962.00 12018 R Pidelity Inetitutioml Caeh 5.120 600�872.00 , 12019 Fidelity inetitutional Caeh 5.120 12020 I Fldelity Inatitutioml Caeh 5.120 28.00 12021 Fidallty Inetitutional Caeh 5.160 1.00 12022 A Pidelity Inetitutionel Caeh 5.120 516,208.00 12023 Pitlelity inetitutional Caeh 5.120 86.00 12024 Fidelity Inetitutional Caeh 5.120 6.00 12025 R Fidelity Inetitutioml Caeh 5.120 610�311.00 12027 R Fidelity Inetitutional Ceah 5.140 269.00 12028 R FiAelity Inntitutlonal Cae� 5.120 664.00 12031 Fidelity Inetitutianal Caeh 5.170 49.00 12032 Pidelitp Inetitutianal Caeh S.1d0 12033 Pidallty Inetitutional Caeh 5.160 1.00 12034 Pidelity Inetitutioml Caeh 5.160 1.00 12D35 Fidelity Inetitutional Caeh 5.1]0 3.00 12036 Fidelity Inotitutional CAoh 5.120 1.00 12037 Fitlelity Inetitutional Caeh 5.120 12039 PSAelity Inetltutional Ces� 5.120 1.00 12042 I Pidelity Inatitutional Caeh 5.120 2,807.00 12003 Fidelity Inetitutloml Caeb 5.120 202.00 12063 R Fidelity Inetitutionel Caeh 5.120 668.00 12066 FSEelSty Inetitutiaml Caeh 5.120 12065 Pidellty Snetltutlanal Caeh 5.120 12066 Pidellty Inetitutional Caeh 5.160 122.00 eUBTOTALB md ffi7DIBG BALANC& 1,337,456.00 0.00 5,620�099.00 MANT(i8D POOL ACCOUNPS (Monthly 9u�niyj 12060 pecific 9orizon Treaeury Pund 6.900 656.00 12061 Peciflc 9oriaon Treasury PunQ 6.800 16,738.00 SUHTOTALB end SNDIHG BALANC6 0.00 17�396.00 0.00 � OS/08/1997 City of Palm Ueeert PM - 7 YORTPOLIO MABT&A INV&BTMBPT AGTIVITY BY TYPB CITY � DEC6FID&R 1� 1996 - DSC&t�ER 31� 1996 ACCRUAL STATBD TAANBACTION PUACBA8E9 BALSB/MhTOAITIEB TYP& IIN&ST[�ffiNT M I88USA AATS MTE OA DSP08IT8 OA WIT�AAWALB BALANCH "___'_'____________________'_"""""'_"'__'__'__'_"__'__'__'_'_'____'__________"__'__'__"'_'_"___"'____"_____'_________ 7ACAL AGSNCY INV&34MENT FUI109 (Montllly 8u�eiyJ 12000 Local Agency Inveetment Pund 5.601 1�000�000.00 12�092,198.62 PA88HOOR/CH6CRING ACCOUNTB (Monthlp Su�ry) 13000 Bank of America - Checking 0.000 306,660.92 13002 HanK of Amerlca - 9evinqe 2.000 6,925,000.00 3,175,000.00 SUBTOTALb anA ffiiDIHG BALANCE 7,271,660.92 3�175�000.00 0.00 CABH WIT9 TRU8T8H -FIPBT TRUST (Monihly 8��ary) 24001 Caeh with Truatee 0.000 24002 Caeh wiN Truatea 0.000 26�03 Cae� wlth TrvetAe 0.000 26006 Cm� With Truetea 0.000 26005 Caeh w1tt� Trvetea 0.000 26006 Cneh w1tG Truetee 0.000 26007 Caeh vlth Truetee 0.000 26008 Caeh wlth Txuetee 0.000 4d009 Caeh wSth Truetee 0.001 26010 Cash wlth Truetee 0.000 SllBTOTALe and IIiDIliG HALANCB 0.00 0.00 0.00 COIMffiiCIAL PAPBR - DIBCOU[iT Z�669�163.20 PSDBAAL AGSNCY I88VS8 - COUP�i 11,171,503.26 PSDBRAL AGIIICY S88U68 - DISCWPT 15006 A Fedaral Mortqage Diecount aote 4.330 12/13/1996 390,610.78 0.00 TRSABURY 88CURITI89 - COUPON 1&031 A Vnited 8tatee Tceaeury 6.375 12/17/1996 696�249.53 16032 A Unitetl Btatee Treeeury 6.375 12/17/1996 396,999.62 eUBTOTALe mA aNDINO BALANCS 0.00 893,269.15 27,576,693.26 � O1/08/1997 Clty of Pelm Deeert PM - 8 PORTFOLIO M1f8T8R INV881T161Pf ACENITY HY TYPE CITY DECePID&R 1, 1996 - DSCHMBBR 31, 1996 ACCAUN, BTATSO TAAN9ACTION PUACBASEB 8ALE8/MATUAITI88 TYPS IIN&ST!ffiNT N I88U8A AATS DAT& OA DEP08IT8 OA WIT�AAWALB eALANCB _""""""_"'____"_"_"__"""""""'_""""_""""""'_""'_""'_""""""""""""""""_"""""""_' CIRY LOAN 1U ADA 19�000�000.00 """"""""""'____'_""_""""'_"_'_"_"'_'_"__'________'__' '�'u9 8�609�096.92 5�480�Z53.93 77�729�657.�4 '�""""""'�""""'..��.....e.�.�...�...�..��""'.�..�.e��.""" ._._..... . _— � O1/08/1997 ~ PM - 9 City of Palm Deeert CITY INVSS'II�NT ACTIVITY BUMMARY ACCRUAL D8Cffi�IBSA 1995 through D&Cffi�IBER 19% . YIffi.D TO IMTUAITY MANT.O&D N[A1HBR OF NUDIDSR OP AVSPA6E MONT6 NUMHSA OP 70TAL 360 365 POOL 88CVRITI&6 8&CURITS88 AV6RAf� MY8 TO EtiD YBAli BECURITI88 INV88TSD S4UIV BQUIV AATB PUAC8A88D MATUABD/80LD T6PM MATUAITY ___'_"""_'__'_____"_'_'___"__"____'_______'___'____"'_"'___'____'___"'_____'___'_____'____'__________'___' December 95 68 71�636,895.18 5.688 5.768 5.602 18 4 905 752 January 96 66 84,686,612.25 5.662 5.720 5.162 2 6 766 618 PebruaLy 96 67 75,923,193.33 5.624 5.702 5.135 4 11 826 669 March 96 69 75,962,211.51 5.598 5.676 5.076 1 3 827 656 Apxil 96 78 75,277,800.04 5.553 5.630 5.171 1 2 B35 642 Mey 96 83 78,569,729.59 5.5'/S 5.668 5.175 7 3 853 663 June 96 87 86�019�131.72 5.665 5.766 5.177 5 1 858 670 July 96 87 86�789�752.15 5.688 5.767 5.138 1 1 870 658 Auguet 96 79 81�992�276.25 5.665 5.726 5.096 0 6 871 657 9eptember 96 83 80�806,935.19 5.709 5.789 5.160 5 3 916 683 October 96 03 79,561,918.06 5.689 5.768 4.122 2 2 92B 708 Nw�bar 96 80 78�701,280.76 5.718 5.798 5.122 1 5 959 726 December 96 77 77,729,fi57.16 5.702 5.782 5.121 0 3 950 693 ""___'__'"""""""""""_""""'_"""""""""_"""'_""""'_""'_"'_""""' AV8AAG88 � 77 S 79,361,016.86 5.658i 5.732! 5.172t 6 6 876 676 ."""""'�""""""'�'..."'�.�""""""�"""""""""""""""""".......e.aa�e �1 O1/08/1997 � ^ PM - 10 City of Palm Deeert CITY DI6TAIHUTION OF INV881T1GNT8 8Y TYPE ACCI2UAL D&Cffi�iBSA 1995 through,DSCffiUBBR 1996 MONTH "'_"'_"__'__'_""_""""""_"'_""""' TYP88 OP INV887Tffi1T8 """""_"""""_"'_"'_'_"_"_""""" SND YSAA HCD 8m LA1 LA2 LAS PA1 PA2 MTN BAC CPI CON PAC PAD TRC TRD PID1 MC1 _____"'_'_'_"_"__'_'____'__'""__"_"____"_""__'_____'______"'_""'__'_"____"_________'__'__"_"'__'___________"___"'_ December 95 16.1 5.9 0.0 5.7 7.3 0.8 33.3 3.5 0.9 26.5 January 96 13.6 4.9 0.0 20.1 6.2 0.6 28.2 3.0 0.8 22.5 Pebruery 96 13.2 6.0 0.0 26.3 6.9 0.7 18.9 3.0 0.9 25.0 March 96 13.2 7.6 0.0 25.1 6.9 0.7 18.9 2.0 0.5 25.0 Aprll 96 13.3 7.2 0.0 26.9 7.0 0.7 19.1 2.0 0.5 25.2 May 96 9.6 5.2 0.0 25.3 6.7 3.8 22.7 2.0 0.5 24.2 June 96 2.9 4.6 0.0 20.8 6.1 9.2 32.2 1.8 0.5 22.1 July 96 d.6 0.0 19.6 6.2 12.3 32.7 1.8 0.5 22.6 AuguBt 96 7.9 0.0 20.5 6.6 9.7 31.6 0.3 0.5 23.2 September 96 5.0 0.0 19.8 6.6 6.2 60.7 0.3 23.5 October 96 3.4 0.0 20.2 3.1 11.5 1.2 36.3 0.3 23.9 Pwemher 96 5.2 0.0 16.6 3.1 16.2 0.5 36.2 26.1 Decambar 96 7.0 15.6 3.2 16.4 35.5 24.4 """'_""'_"""'_""""'_""'_"""""""""""'""""""__"""""'_"""'"'_""""""'"'_"""_"' AVBRAGBB 6.38 5.78 0.0! 20.1t 0.76 8.2i 3.4$ 29.7i 1.5! 0.4i 26.Ot e..�..�...�..��..��..��.e��v.�:....:....m.e:...�.....�m....s.m:...:.s....:�.....:..s�...�...��.��..��..��..�:..�a:..=m HCO - Certificatee of Depoelt - Benk 8CD - CBitlflcatoe af Depoeit - 8 6 L LAS - PSdelity Treaeury Pool LA2 - Managed Pool Accounte LAS - Local Aqency Inveetment Pu¢de PA1 - PeeeCook/C�ecking Accounte PAZ - Caeh With Truetae -FSret Truat MLN - Medium TBsm NoteB HAC - Bankare Mcepiance9 CpI - Cwmpeicial Paper - Inteieat BeasSng COM - Co�em181 Pepar - DSecount FAC - Pedelel Agency IBeuBB - Coupon FAD - F8Q8I81 AgBnCy Ie6ue6 - DSBCount TRC - Tne89uLy BeCuilt188 - Coupon TAD - Treeeury 8acuritlee - Dlecount !ID1 - Tseaeuty 8ecurltlee - T-Hllle MC1 - city LDen to ADA �� O1/OB/1997 � PM - 11 Clty of Palm De6Brt CITY INTBREBT 6APNINGB 9UI�4AARY ACCAUAL DECBlID�t 31� 1996 MDNf6 BIiDIBO FI9CAL DSC6MB8R 31, 1996 YEAA 10 DATB CD/Coupon/Dlecount inveetmente: Intereet Collected � 189�750.13 S 1�206,969.51 PLUB Accrued Intereet at End of Period 2,629,020.87 2,629,020.87 L888 Accrued Intereet et HeginnSng of Perlad ( 2�316�380.23) ( 1�781�128.00j '_'_""""'__"' _'__'____"""_'_ Interaet Sarned during Period i 304,390.77 1,852,862.38 �.......��....�e.. �....�..as...�..�� ADJUeTED by Pzemiume an9 Diecounte -3,825.69 -20,088.26 ADJU8T8D hy Capital Gnine or Loeeoe 16,870.85 33,698.53 "_"""'__"'_" _'_____..___'_'_"' 6arninga during Perlad 317,435.93 1 1,866,272.65 ........""""" '......�......��.. Mortgage Hacketl eecuritiee: Inteceet Collxted S 0.00 ; 0.00 PLUS ACCLued Inteieet at Snd oE PexlOd 0.00 0.00 L888 Acciuetl Inteseet at eeglnning of Period ( 0.00) ( 0.00) ""____"""__" ______'__"_"__" Intereet 8erned during PerioA � � 0.00 � 0.00 """'�"""�"' ..e=....��"`�"" AA7UBTBD by Premlume and DSaCountB 0.00 0.00 AA7118T&D by Capitel deine or Loeeea 0.00 0.00 _""""'_'_""' __"'_"""""'_ 8arninge during Periotl 0.00 ; 0.00 Caeh/CRecking Accounte: Intaraet Collected S 0.00 S 563,287.87 PLUB Accruetl Intereat at Hnd of Per1oC 538�02S.S7 538�025.57 LB88 Accrued Intereet at Beginning of Period ( 658,666.27) ( 540,313.89) ________'_""__" "__________'_..'__ Intereat Satned duiing Peclod = 79,561.30 f 560,999.55 "................ .......�......�w� TOTAL Intereet 8erned during Period S 383,952.07 S 2,393,861.93 TOPAL Ajustmenta fr� Premiume and Diecounte S -3,825.69 S -Z0�088.26 TOTAL Capital oaine or Loaeea = 16�870.85 S 33�498.53 _____'___"_"'_'_ ____"_"_""_"_ TOTAL 8arninge dux�ing Periad S 396�997.23 ; 2�607�272.20 ...ea.�..m........ ...a�.a.a...:...�. ( � 01/08/1997 ^ Aeeeaement Dletxlct 03-1 PM - 2 INVS874�ffiNT POATFOLIO DPPAILB - ItN68'1TffiNTS CITY D6C&lIDER 31� 1996 ACCRUAL INV&STMENP AV�i11G6 PUACHA96 BTATSD --- Y'd7 "' MATUAITY DAY9 NUMBSR I88UBA . HALANCH DAT& BOOR VALUB PACS VALUB MAARET VALUB AATB 360 365 DATB TO MAT '_'_""""__'_""""'_""'_"_'_""""'__""_""""""""""_"_""""'_"""'_"__"""'_""'_""""""""_ PIDELITY 17iEA8URY POOL � 12027 R Fidellty Inetltutloml Ceeh 65�667.00 65�667.00 65�667.00 5.160 5.070 5.160 1 12036 Fidelity Inetltutioml Caeh 194.00 196.00 196.00 5.160 5.070 5.160 1 _'_'_'___________ _____________' _____"'__'___ __"_""""' "_"' "'_" "_"' SUBTOTALB and AVffiiAG88 65�599.71 64�861.00 65,861.00 65�861.00 5.070 5.140 1 ""'_"'__"__"'_""_"""_"""__""""""""__'_"__'_____'_________"___"_"'____""'_' TOTAL IINSB'ID1StiT8 and AVG. ; 65,861.00 65,861.00 65,599.71 65,861.00 5.0708 5.160i 1 �.�.see.e..�>e.eesav�mv.�..e......�."'e'."""""""""�""'�"""""�"".......�.....'.�""�" �/ O1/08/1997 ^ Aeeeeement Dletrict 83-1 ^ PM - ] INV&81M&7T PORTPOLIO DBTAILB - CA88 CITY D&C&MBER 31� 1996 ACCRUAL IIN887TffiliT AV8RA6ffi PVRCHA88 8TAT6D -'- YYM --- MATUAITY DAYB NUFIDER I88USA HALANCH DATS HOOR VALUH PACB VALUB MARRPP VALU& AAT& 360 365 DATS TO MAT ________'_""'_"_'_"""___"____'_'__'_'__'__'_'____'_'__"______'_"__"""""__"""""_'_"'_"'_"___'__"____________ CABH WITd TAOBT88 -FIPST TRUBT 24002 Caeh wiffi Truetee 0.77 0.000 0.000 0.000 AVBRAGES 0.77 """'_""_"_""_"_"_""""""_"""_""_"__""""'_""""_"'__'__'__'________"_"_"' TOTAL CA80 and INVE877�NT8 ; 65�600.68 65�861J7 � r3 OS/08/1997 ^ 1995 Aefunding Bonde 86-1-A PM - 2 I1iv88TMBNT PottTHOLIo b�'1`AILg - ItN86TM@NT9 CITY DHCSFIDER 31, 1996 ACCRUAL INVEBT!ffiPT AVBN116S PURCBABB eTATBD ___ y� __' MANRIIY DAYe NUAIDHR I88UBR HALANC@ DATB BOOA VALUS FACH VALUS MAAREP VALUE RATB 360 365 DATB TO MAT '_"_""'_"___"_"""_"_"_"""'_"""'_'___'_'_______________"__""_'_'_"'_'_"'__"'_""""'_"__'_"""'_"""" PIDELITY 1718A8VRY POOL 12025 R Fidelity Inetiiutional Caeh 697�127.00 497�127.00 697�127.00 5.120 5.050 5.120 1 12035 Fitlelity inetltutional Caeh 796.00 796.00 796.00 5.120 5.050 5.120 1 ____'_______'_'_' ""_"""_" ""'_"""__ """_"""' """ ""'_ ""_' eVBTOTAL& and AV8NA08B 100�864.94 697�923.00 697�923.00 697�923.00 5.050 5.120 1 TA8A8URY BECURITIEB - COUPIXi AVBRA6E8 206,895.61 "'_"""_"'__"_""""""""'"""_"""""_""_""""""_"__"_"""_"""""""" TOTAL INVBB'dfeNT9 nnd AVtl. S d97,923.00 497,923.00 305,760.56 697,923.00 5.0509 5.1204 1 a.......e............ma..m.sa....���.....��.....�......��....��........v�...m..��..��..��..��..��..��...e 1� O1/OB/1997 � M 87-1 PM - 2 INVE8TM6NT POATFOLIO DSfAILB - SiN88'd�ffi7T8 CITY DBCSlIDSA 31� 1996 ACCAUAL INVE9TI�NT AV6AAG8 PUACNA88 BTATSD "' Y1M "- MATUAITY DAY6 NUlIDSR IBBUSA BALANCH DAT& e00R VALUB PACB VALUB MAFRET VALUB P]fT8 360 365 DATB TO NAT __'___"""""_""_"'_""""""""""""_"""""""'_""_""""'_""__"""'_"'_""'_""_'_"'_"_""'_""' FIDBLITY TAEA9URY POOL 12028 R Fidallty Inetltutlonel Caeh 167�059.00 167�059.00 167�059.00 5.120 5.050 5.130 1 12036 FiCelity Inetltutlonel Ceeh 362.00 362.00 362.00 5.120 5.050 5.120 1 """"""""' """"""" ""'"""""' ""'_'_'_'__' ______ ______ _"_" SUBTOTALB and AVSPAGEB 166,757.45 167�601.00 167�401.00 167,601.00 5.050 5.120 1 MAlII+GSD POOL ACCOUNTS 12060 Pecific 8orizon Treaeury Pu 0.00 0.00 0.00 4.900 6.833 6.900 1 120G1 Peclfic Horizon Treeeury Pu o.00 0.00 0.00 6.800 6.736 6.800 1 """_""__"_' "_'____'____' '___"_"""" _"'_""'_"' """ ""__ '_"_' eUeTOTALe end AVSPA088 16�832.90 0.00 0.00 0.00 0.000 0.000 0 '_"'_"'_"""""""'_'__"'_______________'_"__"_""'_"_"__""__""""______""""""'_ TOTAL INVEeRMENTB and AVG. ; 167,d01.00 167�401.00 183�590.35 167,601.00 5.050t 5.120i 1 ":s�:a=a:�::�:�"�a��asae:a..am......'e.""""""""�.e"':...:.::.:az�:::....:m""'�"'m�.Qe���a /' � � O1/OB/1997 ^ AD 87-1 PM - 3 - INV&eR7�NT PORTFOLIO D8TA2L8 - CABA CITY DECBPIDSR 31� 1996 ACCRVAL INVE87PffiNT AV3RAGB PURCHAHS BTATBD --- Y'IIA --- lfATUAITY DAYB NUI�IDBR I88USR HALANCS DATS HOOA VALU& FACS VALUS MAN3CET VALUB PATB 360 36S DAT6 TO MAT _"__"'____'__'__""_""""_"'_'________'_______"__'__'__'""'_"'"_"'__"""'_"'__'_'_____"____'____'_____________"_'_ ra_aH WIT6 TRVSTSB -PIABT TAVBT � 26009 Caeh wlth Truetee 0.57 0.001 0.001 0.001 AVENA�88 0.57 ____________________________________________"___""__""'"_"'_'_"____________'__"____'__'_'_______ T(1PAL CABH antl INVSBTMENTB ; 183�590.92 x67�601.57 .:se.s.:.�:..s�ez�s:.se....:.:m...=.�....:e..e:n..e....��....��....�...��..��..��..��..�...�.��..�m..ena �� O1/08/1997 InEim ASCge 91-1 9eriee A � ^ PM - 2 INV88T[�FT PORTFOLIO DSTAILB - INV891TffiiT8 CITY DBCEFIDSR 31, 1996 ACCRUAL INV88TMeNT AVBAAci6 PUACPABs 6TAT8D "- Y�At -" MATUAITY DAYB M1EIDgR I99UEA BALANCB DATB HOOA VAL[IS FAC& VALUS MAPRH'P VALUB AATE 360 365 DATS TO MAT ""__"'__"'_"'_"_"_"_'______________'_"'__"'_'_""""_'______"_"_""'_""""____'_""'_""'_"""___"'__"____' FIDBLITY 7RffiA9URY POOL 12015 FiAellty SnetStutloMl Caeh 636.00 634.00 634.00 5.120 5.050 5.120 1 12016 I Pidellty Inetltutioml Caeh 745,180.00 745,180.00 765,180.00 5.120 5.050 5.120 1 12022 R Pidality InetStutloml Cash 1,280,522.00 1,280,522.00 1,280,522.00 5.120 5.050 5.120 1 ___________"'_" """"__'___ """'___"" _"______"_"' "'___ '_"" __"" BUHTOfALe and AVffiiA0E8 1�525�806.00 2�026�336.00 2�D26�336.00 2,026,336.00 5.050 5.120 1 TRBABURY 8&CUAITI&8 - COUPON AVBRA6E8 256,119.51 _____""""'_"___"'_'__"___"'____""""_"_______"_"'__"'_'_'_'""""_"_""'""__"_"' TOTAL INVESa�ffiNT8 anE AVG. S Z.026,336.00 2,026,336.00 1,781,965.51 2,026,336.00 5.050t 5.1208 1 ""'s�.......��v»e"""""""""""..«..ee""""""""'.e�..a."""""""""'...e"""' / � O1/OB/1997 Indian Ridge 91-1 8eriea A PD7 - 7 INVB8ITffi7T PORTPOLIO DETAILB - CASH CITY DfiCEFIDBA 31, 1996 ACCAUAL INV881TffiiT AVEMf� PUAC9AeS 8TA7BD "- Y1M -" MATUAITY MY8 NUFIDER 288UEA HALAliC& DATS HaOR VALOE FACS VALUB MAPR6f VALUS AATB 360 365 OATE TO MAT CASH 47IT9 TRU9TS8 -FIABT TRUBT 24004 Ceeh Wlth TiuBteB 1.37 0.000 0.000 0.000 AVffiiA0S8 1.37 "_"'_'_'___________'_'_'___"'___""_'_'_'_""'___'______'__"'""""_________'__"""_____________ TOTAL CABH anA INVE87TffiNTS f 1,781,966.88 2,026,337.37 �..�s..z..ma�..=ay."""'.�""""".......""""""""""�s...�."""e""'�.....m.se"""'m� � � � OS/OB/1997 � Indlan AiCge 91-1 eeriee e PM - 2 INVSBTAffiNP POATPOLIO DSlAILB - INV681MENT8 CITY DSC&t�BR 31, 1996 ACCRUAL INVE87TiBMl AV6PAl� PUACHABB BTATHD '_' yqy _'_ lATUAI77 DAYB NUPIDSR I88USR HNJfNC6 DATS HODR VALUB PACB VALUS MARRSP VALUS MT6 360 365 DATS TO Ml.T """""""""'_'_""'__'_"_""_"""'_"""_'_"'_"""_""""""""'__"""'__"""""""_'_"_""___"'_'__' PIDBLITY TASABUAY FOOL 12042 I Fidelity InetitutSoml Caeh 706,355.00 706,355.00 706,355.00 5.120 5.050 5.120 1 12043 Fidelity Inetitutional Ceeh 50�806.00 SO�B06.00 50�804.00 5.120 5.050 5.120 1 12043 R Fidelity IneCltUtlonel Ceeh 168,126.00 168,126.00 168,126.00 5.120 5.050 5.120 1 12046 Fidelity Inetltutionnl Caeh 0.00 0.00 0.00 5.120 5.050 5.120 1 ___"""'__""__ """_""___ """"""'_ __""__"_"' """ "__'_ "'"" SUB7Y7lAL9 antl AVSPA088 921�726.61 925�285.00 925�285.00 925,283.00 5.050 5.120 1 F6DSPAL AGSNCY I98U&8 - CVUPON 16003 I Federal Hame Lomm Bank 12/12/95 1,000�OOO.B2 1,000�000.00 1,000,000.00 5.020 5.397 5.47Y 01/02/97 1 16005 I Fedecal Home Loan Hmk 12/12/95 1,021,002.59 1�000�000.00 1�000,625.00 6.285 5.608 5.686 07/28/00 1�306 14001 I Pederal Hationel Mortgage A 12/12/95 1�001�959.86 1,000�000.00 1,000,000.00 5.650 5.386 5.661 30/20/97 292 14002 I Pederel Nationnl Mortgage A 12/12/95 1,066,991.73 1�000,000.00 1,054,375.00 8.450 5.877 5.958 07/12/99 922 16006 2 Federal Natlonal Mortgege A 12/12/95 1,098,376.12 1,000,000.00 1,082,812.50 9.050 5.620 5.699 06/10/00 1,195 "'_"""_______ "'_'_""____ _""_""""' __"'_'__""' "'_" "'_'_ _""' SUBTOTALB enE AVSNAG&8 5�188�838.72 5�186�331.10 5�137�812.50 5�000�000.00 5.582 5.660 756 TA6ABUAY 88CURITIHB - COUPQi 16004 Unitetl 8tatea Treaeury 12/12/95 385,911.56 385,000.00 385,721.BB 6.875 5.233 5•70B 02/28/97 58 16005 Vnitsd etatee Treaeury 12/12/95 292�Z26.50 Y91�000.00 291,27Z.B1 6.000 5.266 5.319 OB/31/97 262 16006 R UniteA 8tatee Tzeaeury 12/12/95 688,025.70 484,000.00 483,395.00 5.875 5.261 5.314 08/IS/98 591 16007 I UniteE 9tatee Treaeuxy 12/12/95 1,025,867.27 1,000,000.00 1,008,750.00 6.375 5.338 5.413 O1/15/00 1�109 16008 R United Statee Treaeury 12/12/95 d72,638.83 665,000.00 665,998.66 8.000 b.279 5.352 08/15/99 956 16009 I United etatee Treaeuxy 12/12/95 1�030�855.26 1�000�000.00 1�023�637.50 7.875 5.212 5.286 04/15/98 669 16010 I United etntee Treaeury 12/12/95 1,029,051.06 1,000�000.00 1,020,000.00 7.125 5.272 5.345 30/15/98 652 16044 I United 8tatae Treaouzy 09/13/96 1�003�166.63 1,000,000.00 1,002,812.50 6.875 5.d68 5.563 03/31/97 89 ""'___"""'__' ""'_"'___" __'_"'"____'_ ___"'_______' ___'_' ""__ __"'_ SUHTOfALB and AVERAGBS 5�731,083.20 5,727,700.81 5�681,388.13 5�605�000.00 5.301 5.375 561 '_____"___""_"____"___"""_'__'__"""""__""'_""'_"""_"'_"'_"'__'_"'_""""___' TOTAL INV887MENT8 and AVG. ; 11,839,316.91 11,746,685.63 11�861�668.53 11�530�285.00 5.605\ 5.6BM 603 ""'a�..a:es:::..:....a�.:........�......�:....'�."...ae:..""'....m.e."�'..�...."""�s."�"'�"' 1 I O1/08/1997 � InAien RSCge 91-1 8erlee B PM - 3 INV&8�1&iT PqKlFOLIO DHTAILS - CA89 CITY DSC&FIDSA 31� 1996 ACCAUAL INVSBTM¢PT AVSAACe PVACBA9S BTATSD --- Y'dA --' MATUHITY DAYe NUMBBR I88USA HALANCe DATS HOf)lC VALUS PACS VALUB MARRT VALVS AAT6 360 365 DATB TO MAT '__'____'___'_"""""'_"""""__'_'__________'_""_"_"'___'__"____"___"___""""""__'_"'_'__"__"__'____'_____" CASH WITH TAU8T88 -FIRBT TAUBT 26010 Ceeh wiffi Truetee 1.62 0.000 0.000 0.000 AVIDiAGBB 1.62 "_"""'_"_"""""""""'_"'__'____""""""'_"_"""""'"__'_'_"""_""_"""'__'___ TOTW. CA9H and INV881TffitiTe ; 11,841,649.95 11,839,318.33 � �t-CJ OS/OB/1997 � Bierre Nwe 92-1 ^ PM - 2 INVB6ITffiIPf POATFOLIO DETAILB - INV88RMffi7T8 CI1Y DfiCBt�IDBR 31� 1996 ACCAUAL ItNSBTFffiNT AVBMQ& PUACHA88 BTATSD --- Y7T7 --- MATUAITY DAY9 NUlIDBR I88USA 9ALANCB DATB BOOR VALU& FACB VALUB MARICBT VALUB AATB 360 365 DATS TO MAT PIDBLITY TASABUAY POOL 12004 Fidelity Inetltutional Caeh 52.00 52.00 52.00 5.170 5.099 5.170 1 12005 Fidelity Inetitutioml Caeh 50.00 50.00 50.00 5.170 5.099 5.170 1 12006 R FSAelity Inetitutloml Ceeh 246,853.00 246,853.00 266,853.00 5.120 5.050 5.120 1 12007 Fidelity inetitutioml Caeh 19,636.00 19,636.00 19,636.00 5.120 5.050 5.120 1 12045 PSEe11ty InetlEutioml Cea� . 181.00 181.00 181.00 5.120 5.050 5.120 1 """'_""""' """"""" __"_""""' '_"_'_""'_' """ "__" "'_" BUBTOTALe md AV�IA088 265,171.29 266,770.00 266,770.00 266,770.00 � S.OSO 5.120 1 _'_____"""""_"""'_""'_"""_""""""""""""""'_"'_""""_""""'__""'_" TOTAL INVE8�iT8 antl AV6. ; 266,770.00 266,770.00 265,171.29 266,770.00 5.050t 5.120t 1 '..�.""'�""'�"'�""e�"""""'.'�""..a.....a..e.""..'�'."""�"�"""""""'.�..a""" � � O1/08/1997 eierre Nove 92-1 PM - 3 INV881MENT POATPOLIO DBTAIL9 - CA99 CI1Y DBCP.DIDSR 31� 1996 ACCAUAL INVE9TMENT AVSAA08 PURCBA88 eTATBD "' Y1M "' MATURIIY DAYB NUDIDBA I88USA BALANCB DATE BOOR VALUB FACB VALU6 MANRET VALUS AATS 360 365 DATH To MAT CASH 41ITH TRUeT88 -FIReT 7RUeT 24008 Caeh with Truetee 2.86 0.000 0.000 0.000 AVEAA088 2.86 """""'_"""_"__""'_""""'__""_""""'_'_"'____'__"_________"___"__________"_""" TOTAL CABH antl INV&B'ft�PTB i 265�176.13 266,772.86 Z� OS/08/1997 Hig 6orn 96-1 PM - 2 INV991T16Nf POATPOLIO DSTAILB - INV88'II�ffiIT8 CITY D&C�iBBR 31� 1996 ACCRUAL IPVSS7TffiNT AV8PAG8 PUAC9AS& 8TAT8D "' Y7M "' MATUAITY DAYS NUFIDffit IBBUEA BALANCB DATB HWA VALUB FACH VALUB MAPAST VALUB MT6 360 365 DATB TO !AT _"'_'___""""_"""_""""""'_"""'_"""""_"'_"""""'_'_""_"""""""""""""'_'_"""'_"_"_""' PID&LITY TASA8URY POOL 12018 R P1de11ty Inotltutlonal Caeh 721�413.00 721�613.00 721�613.00 5.120 5.OS0 S.1S0 1 12019 FSdelity Inetltutloml Ceeh � 99.00 99.00 99.00 5.120 5.050 5.120 1 12020 I Fidelity InetStutioml Caeh 6�973.00 6�973.00 6,973.00 5.120 5.050 5.IZ0 1 12021 PSCelity Inetltutlonal Cash 263.00 2C3.00 263.00 5.160 5.089 5.160 1 "_"__""""_' "'_""'_"" """"""" _""""""' '_"" "__" """ SUBT07'ALS end AVERAG&8 360,759.29 728�728.00 728,728.00 728�728.00 5.050 5.120 1 P&DEAAL A�SNCY I88U&6 - DIBCOUNT AVSAAGSB 152�752.56 _.""""""""""""""""__'_"_"""""""'_"""""_""W_��..�..�..�.._..�......"""'_""' TOTAL INVS4S}ffi7T3 and AV6. ; 728�728.00 728,728.00 49J�511.85 728�728.00 5.0508 5.120i 1 ""'�"'�""""""'��"��""'.��""""""�"""�"""""""'�"""�"'�"'��..e:..nee�a:s=�e ti3 OS/08/1997 Big Horn 94-1 PM - 3 INVE84TffiVT PORlF'OLIO DETAILB - CA6H CITY DBCBMBER 31� 1996 ACCAUAL INVEBTAffit7T AVSFIIGB PURCHA9B BTATSD "- Y'II�t --- MAIVAITY DAYB 11UMBSA I88U8R BALANC6 DAT& HOOR VALUB PACS VALUB MARRbT VALUS AATS 360 365 DATS TO MAT "____"'__'____'____"__""'_'__________'__'_""_""'_'__"_"'___'_"_______'_'___'_"_______'________'_"___"_'__'__'__"'_ CA6H WIT9 TAUeTS& -FIRBT TRUBT 26007 Caeh wlth Truetee 1.30 0.000 0.000 0.000 AVEIiA0S8 1.10 ___'___"'__'___'_'__"_'__"'__'__"__"_""__""__""""""_'__"""""___"'_'__'_'_____""__ TdPAL CA69 md INV8874�1P19 ; 493�512.95 728�7Z9.10 ma..�..a�.��"""""""...."'�""""........................"""'�....."""�""'.�.ve�..��.. � � OS/OB/1997 Sunterraca 96-2 PM - 2 INVSeTMENT PORTPOLIO DHTAILB - INV&8'IDffi1T8 CI1Y DSCePIDBA 31� 1996 ACCAUAL INVEBTI�NT AV8AA8& PUACHABE 8TAT8D "' Y'dd "' MATUhTTY DAY$ NUGIDBR I93UEA HALANCS DA1B BOOA VALUE FAC& VALU& MARRBT VALU& AAT5 360 365 DAT& TO MAT "'_____________"""""'__'___"_"""___'_____________'_'_'_"'_'_'__'__'_"'__"__________"_""""""""'____""'__'_' FIDBLITY TASASURY POOL 12009 I Fidelity Inetitutional Caeh 33,992.00 33,992.00 33,992.00 5.160 5.070 5.160 1 12030 R Fidelity Inetitutlonal Caeh 126,977.00 126,977.00 126,977.00 5.140 5.070 5.160 1 12032 Fidellty Inetltutlonal Caeh 32.00 32.00 32.00 5.160 5.070 5.160 1 12033 FidelSty InetStutlonal Caeh 81.00 81.00 81.00 5.140 5.070 5.160 1 "'__""___"____ _'___'"'_""_ "_"'_'_""' '_""'_______ '__"' _""' ______ 9UeTOTAL& and AVffitA6E8 � 160,603.96 161�082.00 161,OB2.00 161,082.00 5.070 5.140 1 '_'_""""""'_""_"""""""""_""_'_____'_""_""_""'_""_""_""'_"__"""_"" TdPAL INV58TlI&7T8 end AVO. ; 161,082.00 161,082.00 160,603.94 161,082.00 5.070R 5.1604 1 .Qma.a...ea�..�.�a�.:..«..................��....ee...e��a.em.�a�.ez...........�..��..��..ea..�amea_�s.a ✓ Z� O1/08/1997 eunterrece 96-2 � PM - 3 INVEB'd�ffi7T POIYfF'OLIO DSTAILB - CABH CITY DBC&MBER 31, 1996 ACCRUAL INV881MEI7f AV&AAGB PURCBAS& 8TAT6D -" Y1M "- MATURITY DAYB NUDIDaR S88USR HALANCS DAT6 BOOR VALU& PACS VALUS MAAREf VALUE RAT6 360 364 DATS TO !AT CASH VlIT9 TAUST68 -FIRBT TIq18T 24006 Caeh with Truetee 1.77 0.000 0.000 0.000 AVBAAGHS 1.77 """"'_"__"""""""'_""_"""_""""""""""""_"""""""""""'_"_"_"""" TOTAL CA89 anE IPVSeTTffiNTS = 160,605.71 161�083.77 2� O1/08/1997 Merano 96-3 PM - 2 INVESTI�ffiNT PORTFOLIO D&TAILB - II1VS81MSNT8 CIT1f DBCEFIDER 31� 1996 ACCAUAL INV88TMENT AV&M(i8 PURCHABE BTAT&D '-' Y'dA --' MATURITY DAYB N@ID8R I88VSA HALANC6 DATB BOOR VALUS FACS VALUS MAAR6T VALUB AATB 360 365 OATS TO MAT '_"_"'_"'_'____"'_'_________________"_""""__""_________'__"__'___"_'___'_'___"___"_"""_'_""'_'_'______"_'_'___ FIDELITY TRSABUAY POOL 12011 Fidelity Inetitutional Cae� 18.00 18.00 18.00 5.140 5.070 5.160 1 12012 I Fidelity Inetitutloml Caah 388�666.00 388,666.00 388,664.00 5.120 5.050 5.120 1 12013 A Fidelity Inetltutlonal Caeh 125�97'/.00 125�977.00 125�977.00 5.120 5.050 5.120 1 12031 Fldelity Inetitutlonal Ceeh 12,106.00 12,106.00 12,106.00 5.170 5.099 5.170 1 12037 F1AelSty Inetltutlonal Caeh 19.00 19.00 19.00 5.120 5.050 5.120 1 '___'___'____'___ '___""'____' '_'_"""__" _'_"'_'_""_ "'_'_ "____ """ SUBTOTALB and AVEfiAGEB 524,756.58 526�784.00 526,786.00 526,786.00 5.051 5.121 1 _"""__'_"""""'_""""""__""'__"""""'_""'_"""""""""""_"_""_""'_" TOTAL INV&BRA�fB antl AVti. S 526,786.00 526,784.00 52d,756.58 526,786.00 5.OSli 5.1219 1 2 ? O1/08/1997 Masano 96-3 � - 3 INV88TTffi7T PORTPOLIO D&TAILB - CABH �=TY DBCFdIDBA 31� 1996 ��� INV887T�[iT AV&AAf� PURC6A88 BTATSD "' yy41 '__ MATqRITY DAYB NWIDBR I88USR BAL7�[iC8 DATB B00H VALUS PACB VALUB MARICeT VffiU& AATB 360 365 DAT& TO MAT """"""_""__""'_"_""'_"_"_"_"""'_""""__"_"""__"_'_"""'_"__""_"'_""_"""_"'_"_""___"'_'_ CA80 WITB TAU8TB8 -PIABT TAUBT 2E005 Cash with Truetae 2.72 0.000 0.000 0.000 AVSEtAG88 2.72 "_'_____"_""__'______'_'__"______'_""'__'____""'____"""""""""""'__'__-'______"_'_____ TOTAL CAeH md INV88TMENT8 ; 524�759.30 526�786.72 '�:':"�"'�v..�=...."'.aa..:..e""�n�..:..�"'.��.....�""'�....."e�'.�..»""'�"..:."�'.�:.... 2� O1/OB/1997 95 A8V BND: 83-1� 84-1-R� 87-1 � - 3 INVEeII�ffiiT POATPOLIo DSTAIL9 - CABH CITY D8C8I�IDSA 31� 1996 ��U� INV88TME[7f AV&MGS PURCHN88 6TATSD __' yy� "' MATURITY DAYe NUEIDER I88U8A HALANCE DATE EWOUIC VNN& FACE VALUE MAAAET VALUS AAT& 360 365 OA7B TO M71T "______"""""_""'__""""""_'__"""""'___""_'_"'___"'_"_"""""'_""'__""""_""'__""_"""'_""" CABH Y7IT9 TRUeT68 -PIRBT TAUBT 26003 Cmh wlth TiuBtea 2.90 0.000 0.000 0.000 AV�tA6S8 2.90 _"_'_______""'__"'__"'_________"__"__'_"__"""_'______""_____'_""____'___"'_'_'__'_"__" TUPAL CABH and INV887T�IPfB S 53,723.86 53,931.90 .e...n..��..a»..��.......a..��......:::e�..�.....:::a.......:..a:..................�..:..��e..::......� �D O1/08/1997 � Clty O�naral Pund ^ PF1 - 2 INV&8Tl18NT PORTFOLIO DEPAILB - INVEBSfffiIT8 CITY DSCfit�BR 31, 1996 ACCAUN� IIN687TffiNP AVBAAaS PVACHABE 8TAT8D "' Y1T7 --' NA111RITY DAYS PUFIDER I88U8R HALANC6 DAT6 HOOIC VALUE PACH VALUS MAAI�T VALUS AAT& 360 365 MTE TO MAT "'_""'_""_"'_"'_"""""'_'__"""'__"""_"""""""_'_"""'_""""""""""'___'__""""""""'____'_' 7ACAL AG&NCY IINEB'Affi7T PUND9 12000 Lxal AgenCy Inv88tIDBnt Fun 12�092�198.42 12�092,198.42 1Z�092�198.42 5.601 5.526 5.6D1 1 AV&PAG88 12�672,863.58 � COMffitCIAL PAPER - DSBCOUNT 20001 Gotham Funding Co�arcial P 10/22/96 2,669,163.20 2,500,000.00 2,672,500.00 5.350 5.617 S.C92 O1/13/97 12 AVSAA088 2�469�163.20 P&DEAAL A0ffi7CY I86U88 - C011P011 16006 pedaral Hwa Loan 8ank 11/OS/96 1,998,791.67 2,000,000.00 2,003,1Z5.00 7.250 7.263 7.36d 11/O1/O1 1,765 16007 Pedarel H�e Lom Hmk 10/26/96 3,986,380.69 4,000,000.00 3,988,750.00 S.B20 6.019 6.102 11/02/98 670 "_"""""____ """"""" """"""'_ "'_""""_' ""_' """ _"'_' SUeTOTALe end AVSAA088 5�986,873.29 5�985�172.16 5,991,875.00 6�000�000.00 6.434 6.536 1�036 7REASURY BBCUAITIS9 - COUPON 16001 United 9tatee Treaeury 10/27/96 1,999,788.01 2,000,000.00 2,003,125.00 6.750 6.726 6.818 02/28/97 58 16036 UniteA Stetee Treaeury OS/31/96 1,998,687.81 2,000,000.00 2,001�250.00 6.000 5.967 6.050 05/31/98 515 16035 United 9tatee Treeeury 05/31/96 1,976,672.27 2,000,000.00 1,981,250.00 5.125 6.061 fi.125 03/31/98 656 16036 flnited Stetae Treaeury O6/26/96 2,979,045.07 3,000,000.00 2,996,250.00 5.875 6.252 6.338 OB/15/98 591 16037 Unitetl Statee Treaeut�y O6/26/96 2�933�050.16 3�000�000.00 2,957,812.50 5.125 6.316 6.602 11/30/98 698 16038 United Btatea Tseasury 06/26/96 1�986�84Z.67 2�000�000.00 1�990�000.00 5.375 6.052 6.136 I1/30/97 333 16039 United 8tatae Tiaaeury 06/26/96 1,999�473.61 2�000�000.00 2�001�875.00 6.000 5.950 6.033 OB/31/97 262 16042 United 8tatee Treaeury 09/13/96 1,977,431.60 2,000,000.00 1,981,250.00 5.125 6.068 6.152 02/28/98 623 16043 Un1L8G SteteB TTeacury 09/17/96 2�005�196.51 2�000�000.00 2�005�625.00 6•500 5.593 5.670 06/30/97 119 16045 United 6tatee Treeeury 09/05/96 1,992,806.96 2,000,000.00 2,005,625.00 6.125 6.270 6.358 08/31/98 607 "'_""""'_'"' "_____"""" __"'_______'_ ""'__'__'___ ""__ _""' """ BUHTOTALB and AVSPAGEB 21,865,209.68 21,868,992.d5 21,924,062.50 27,000,000.00 6.137 6.242 425 _'__"'_""'__""'_______"_'_""""_'______'_""_"_""____""'_""""____'_'_""'___""' TOTAL INVS87Tffi7T8 and AVG. = 62,395�526.23 62,680,635.92 62,972,089.75 4II,592,198.42 5.962k 6.065t 366 aae�a...s"'�"""e....mas.."'.�""""."""""'�""'�""""""""""'�'�"'�"""""""' �/ ( Ol/08/1997 CSty oaneral Fund PA1 - 7 INV88T!ffiiT POAT£OLIO D8T11IL8 - CABH CITY DECElIDBR 31, 1996 ACCRUAL INV881't�@NT AV�i11GB PUACHA88 8TAT6D '-- Y7M "' MATURITY DAYB NUMBBA IBSU&A HALANC6 DATB HOOR VALUB PACB VALUB MARREP VALUB AATB 360 365 DAT6 TO MAT "_'_""""""""_"'____'_"""__""_""""___"___"'__"__""_""'________"__""___"""______""""'__""_____ PA88HOOR/CHBQCING ACCOUNTB 13000 Bank of Amerlce - Checking 168,371.36 0.000 0.000 0.000 13002 Benk of A�rSca - eavings 6,575,6Y8.30 2.000 1.973 2.000 ______"""'_ _"""""___ '__"' ""_' BUeTOTAL9 and AVHIiA0B8 575�682.19 d�766�005.66 1.903 1.929 Accrued Intereet at Purchaee 69�269.28 """"""'_"_"____.._-_________"'__'_""__"_'_'______""'__"""'_'___'__'_ TaTAL CASH ; 6.813.276.96 s.aee."m""""""'�"..��..�.��""'.�""""""""""""""""'......""""""�....."'�' TOTAL CABH and I6V68T!ffiNTS S 63,567,571.96 47,208,801.17 ""'��"�"'��..��a�m....""�""��""�'......m"'.'�""'��'.......�a'.""�"'...:...a:..����a.u:x � � O1/OB/1997 CITY LOAN TO RDA PM - 2 INVB8TM6IiT POATP�IO DBTAILB - INV&8II181iT8 CITY D8C8lIDSR 31, 1996 nCCHUAL INV88T[�IIT AVHFAG@ PURC9A9S BTATBD ___ y.ad _'_ MATORITY DAYB NUMBHR I98U8R BALANCB DATB e00R VALUS PACH VALUS MAN1�T VALUB AATB 360 365 �AT6 TO MAT "_""""'_'_""'_"'_"""""'__"__'__""'_""""'_""_"""'_""____""""'___"""'_"'_"____""'_"_"'_'_"_' CITY LOAli TO ADA 12001 Aedevalopmant Agency-Loan 07/O1/95 19�000�000.00 19�000�000.00 19�000�000.00 4.538 5.662 5.538 07/O1/01 1,662 AVffitA6S8 19�000�000.00 "_"_"___'______'_____'__'___'___""""""'_'_"_____"__________'_'_"""'_____"__'_________" TOTAL INV887TffiiT8 anC AV6. ; 19,000,000.00 19,000,000.00 19�000�000.00 19,000,000.00 6.462t 5.538t 1�642 ....................e...."'."'.`�'..............."""""............."'............................ { � � � � � � � � � � � � a � a a � � � � � � � � � � � Z Z Z Z s �G Ww Ww WNµI Ww Ww WW WNy� Ww W ; ; ; � > � > � > � > .3 Y > > > Y ) Y Y > Y Y > } } > > > 3 � � } � } � } � � � } � T � T � r � r � } � Y � � � Y � } y Q J Q J a J a J Q J Q J a �I Q J a J Q J Q J Q J Q � Q J � ; � ; S ; � ; S NS ; S ; S � 8 � 8 � S � 8 ; 8 ; 8 � S w o ; �� .� �€ V �� E� �� � � c� a � � E E �.4 � �� � � E a �gu E � $ � S g � .�� � � � �E� � � � y �°�` �o� � ��j a�.s � � _� E� � � � � Y_�`g��gQ�p � .��i$ "'� '� ��,�`o �i,C� �;�2i� .� �� g a� 3$�� ,� � ��' � ��.� � Qa � w �� $��8 - � � N E E E Y g� �E � � S �� E 6 � E s E � � 8 E S � ��� �` -� '" ���� S � 8 R�� g � � � � ��� �� � � � � ��� Z �$� �� ?� �y m W LL (� 2 — Z � � � � � � � � � �� � � � � � � � � � � � � � � � � � � � g � � �:;E��C= � � � � � � � � � � LL � �.'.- r � a . � � �a�. U` � � 41 y � � � a,pO a � � � LL � �� � ; 0 � m � � � � � � � � � -- --- -_ _ �- � � � n � s ':a s a � ; � � : � Wq ."O T TI Q �1 'O ! � � j� Do�i 3 �4 � 43 � n � � m 3 ��� �i- < � cc c m � 3 .� � � i < o n w� � � 1D y � 9; -p' a � .j 01 � p � mOO�� y � � '� p ; � �" � s � > > m « � � $ . � a� a n � y � c � � � .'' �� .. ,' ± � w � o : O 'On a ib p .2 %� V b � i. � � O p o _' �R n ,�F"� O L q � y � I ¢ — ! ' j � � Y 9 0 I 9 �� � Y � $ � 1 �� '� N M M W fN fq �q N � � � s���� § . yl .K m� O�D (O NWpq(y �N IJ A Q � � � �z ti � O(Jl� fT � O �D A Oi � N V(� Np� 41 . . n �•.���� � X� � O N QI 8dl�A pp � N W f0 f0 A fA O y � i ,��,, j J010 000 NOQ� 41 W AfJ O � g i ,v $ �109a $ $ $ �� , oN $ $ $ � , � N (p �^ ; M q. � � l0 N �N N N N � 8 �� R f� �' p� 8W(q �q Otp�y (D f O (O O W � f O N O � �� � n N(��(� V 0p00p f�J Opf�J (�.� m pOtpOOp � . .�. : i X� ' NNA OSOT O � O N 000 � n � q�� � M � � N A � N L L O V yV N o •� N 1p0 W (q(q{p fJ Ol V Op Op Ap pN Op A S � N Wp Wq Op Op Op N O N � � � � O�D W N OOOm OJD 11i00000 8 'd' � `" $ 'b' � ae s r '€ a a� A z� i �� � $ �,-.._ 3 m O m� D Palm Desert Redevelopment Agency MOf1th-2fid 111v85ttT12tlt R2p01"t �ecember a�, 1996 TABLE OF CONTENTS INVESTMENT INFORMATION FOR ENTIRE PORTFOLIO P01'tf0110 MeSt2P SutY11118ry 1 II1veStm211t POPtf0110 D2t211 - If1V@StfT1211tS 2 Investment Portfolio Detail - Cash 5 Portfolio Master Investment Activity by Type 6 Investment Activity Summary 9 Distributfon of Investments by Type 10 Interest Earnings Summary 11 Investment Portfolio Complfance Checkl(st 32 INVESTMENT INFORMATION BY FUND/BOND $100 MiIli011 BOnd 12 S17.5 Million Bond 14 S24 Million Bontl 16 S4 MfUf011 BOr1d 18 Low-Mod Set Aside Refunding 20 1996 D2S2I't ROS@ S21'12S A 22 1996 Desert Rose Series B 23 1996 D2SeYt ROSe ESCI'OW 24 Blythe County Court Administration Center 25 D@Se1't R058 27 Palm Desert Office Complex 29 Self Help 30 Retlevelopment Agency General 31 O1/OB/1997 � PD Redevelopment Agency P7�1 - 1 PORTFOLIO MA8T8R BUDIIMAY 1mA DSCBMBER 31� 1996 ACCRUAL AVBAAI� -'-YIBLD 10 MATUAITY--- PERCBNT OP AVBAAGE DAYB TO 360 365 INV88'IIM1ffiiT8 HOOR VALUB PORTFOLSO TSHM MhTUAITY EQVIVALBNT HQUIVALSNT ________________"_"'__""___"__'_'_"""_'____"_'____'__'___'_""'__"_"'"___'_'____"'_'______"_____"'__"_'_'____"'___' Pldellty Tieaeury Pool...........•...........; 31�884�332.00 34.16 1 1 5.055 5.125 Local Agency Invaetment Funde................5 9,036,136.85 9.68 1 1 5.524 5.601 Co�ercial Paper - Uiecount..................; 1�869�067.64 2.00 109 19 5.455 5.530 Pederal Agency Ieeuee - Couport...............{ 6�411,539.61 6.73 1,028 711 6.080 6.165 Federal Agency Ieeuee - Dlecount.............E 10,6A9,353.86 11.61 96 29 5.295 5.368 Treaeury Securitiee - Coupon.................5 35,200,970.43 37.71 562 271 5.734 5.813 Treaenry 8ecuritiee - T-Hill.................; 288,684.12 0.31 213 72 5.389 5.666 ""'_'_"""_""""""____"_"""""_'___"'_""_"'______"_'_'_"'_ TOTu INVE81TIIt[iTa and AvsAAcspB.............5 93,360,066.51 500.00# 267 160 5.661i 5.517i CASH Paeebook/Checking - No Yield lbtale..........; 466�096.12 0.163 0.165 (not incluAed in yleld calculatlone) Accrued Interaet at Purchaee.................5 220,038.00 """""_____""""_""_______""_'___"_'_____"""_'"'______"""' TOTAL CABH md PURC8A58 IMLBREST.............; 684�134.12 TOTAL CASH and INVESTltE1PP8.................5 94.024.198.63 �....��....:sa��:...a....�a.:.as���...s..�.....a.=.......��..°=aa-s�:�...:e:.= MONT9 &NDI100 FIBCAL TOT7y g,j�ppl�7pg D8C811BEA 31 YEAA 10 DAT& Current Year S 552,697.03 ; 2,827,800.]8 AVSPAGS DAILY BALANCH S 99,427,766.86 3 95�304�324.23 HFFECTIV% AATE OF RSlURP 6.548 5.89i The inveatment portfolio of the P.D. Aetlavalopmani Agency compliee with ite Peul e. aibeon Inveetment Policy and the Californla Oovernmant Code eectlom partnining to the Treasurer SnveeUnent of local egency funde. Pending eny futura ectiane by the aoverning Hoard of the Agency or any unforeeeen cataetrophy, the Redevelo�ent Agency hae adequate ceeh flw to maet ite expenditure raquStemente for the next eix montha. DATP Market veluee are fxom Piret Truet 6 IDC Datafeed prieing service. O1/OB/1997 � PD Aedavalopment Agency PM - 2 IIN88TMEI7L PORTPOLIO UHTAILB - INVSBTMENTB ADA DBCBMBER 31, 1996 ACCRUAL INVSSTT�BIiT AVSRA(3H PURCBA88 BTATED --' Y1M '-' MATOAITY UAY9 NUMBHR I88UER HALANCa DATE HaoR VALUB PAC& VALU& MARIQ�.T VALUB AATE 360 365 DATB TO MAT FIDBLITY TR6A8URY POOL 11002 I Pidelity Inetitutionnl Caeh 1�629�000.00 1,629,000.00 1,629,000.00 5.120 5.050 5.120 1 11003 R Pidellty Inetltutionnl Caeh 83�288.00 83�288.00 83�288.00 5.120 5.050 5.120 1 13006 8 PSdellty Inetitutionp; Caq� 1�013�932.00 1�013�932.00 1�013�932.00 5.120 5.050 5.120 1 13005 I Fidelity Inatitutional Cneh 159,179.00 159,179.00 159,179.00 5.120 5.050 5.120 1 11006 R PSdellty Inetitutional Cae� 16,304.00 16,30A.00 16,304.00 5.120 5.050 5.120 1 11008 R Pidallty Inetitutioml Cash 1,157,843.00 1,157,863.00 1,157,863.00 5.140 5.070 5.160 1 11009 I Pidality Inetitutioml Cae� 3,527,568.00 3,527,568.00 3,527,568.00 5.120 5.050 5.120 1 11010 I Pidellty Inetitutioml Caeh 765,266.00 765,266.00 765,266.00 5.120 5.050 5.120 1 11011 R FSEelity Inetitutioml Caeh 3,134,627.00 3,136,627.00 3,136,627.00 5.360 5.OB9 5.360 1 11012 B FStlelity Inetltutloml Ceah 2,053,185.00 2,053,185.00 2,053,185.00 5.120 5.050 5.120 1 11018 Fidelity Inetitutlonal Caeh 896.00 896.00 896.00 5.120 S.O50 5.120 1 11019 Fidelity Inetitutloml Cash 61�334.00 41�336.00 41�336.00 5.120 5.050 5.120 1 11020 Fidelity Inetitutionel Caeh 1.00 1.00 1.00 5.160 5.089 5.160 � 1 11021 Fldelity Inatltutioml Caeh 63,878.00 63,878.00 63,878.00 5.120 5.050 5.120 1 11022 Fidelity Inetitutional Caeh 332.00 332.00 332.00 5.120 5.050 5.120 1 11023 FSAellty Inetltutlonal Caeh 0.00 0.00 0.00 5.140 5.070 5.140 1 11025 Pidelity Inetitutioml Cae� 28,025.00 28,025.00 28,025.00 5.120 5.050 5.120 1 11026 Fidelity Inetitutionel Caeh 0.00 0.00 0.00 5.140 5.070 5.160 1 11027 8 Fidellty InetitutiOnal Cae11 223�999.00 223�999.00 223�999.00 5.120 5.050 5.120 1 13028 Pldelity Inetitutioml Caeh 101.00 101.00 �101.00 5.160 5.070 5.140 1 13029 Pldality Inetitutional Caeh 659.00 659.00 659.00 5.120 5.050 5.120 1 11030 R Pidelity Inetitutlonal Caeh 366,293.00 366,293.00 36C,293.00 5.120 5.050 5.120 1 . 11031 Fidelity Inetitutional Caeh 20,913.00 20,913.00 20,913.00 5.120 5.050 5.120 1 11032 Fidelity Inetitutional Caeh 1.00 1.00 1.00 5.120 5.050 5.120 1 11034 8 Pidellty InetituLional Caeh 2,149.00 2,149.00 2,149.00 4.690 4.626 6.690 1 13035 Fldelity Inatitutional Cneh 8.00 8.00 8.00 6.900 6.833 4.900 1 11036 Pidelity InetSiutional Caeh 3�962.00 3�962.00 3�962.00 6.690 � 6.626 6.690 1 11037 FiCelity Inetltutloml Caeh 0.00 0.00 0.00 5.160 5.089 5.1fi0 . 1 13038 P19elSty Snetitutionai Caeh 226,000.00 226,000.00 226,000.00 5.130 5.060 5.130 1 11039 R Fldellty Inetitutional Caeh 36,202.00 36,202.00 36,202.00 5.130 5.060 5.130 1 11040 Pldelity Institutionnl Caeh 441.00 441.00 641.00 5.180 5.109 5.180 1 13061 I Fidelity Inetitutinnal Canh 1,667,660.00 1,467,660.00 1,467,640.00 5.130 5.060 5.130 1 11062 Fidelity Inetitutional Cash 14�083.00 16�083.00 16,083.00 5.130 5.060 5.130 1 11043 FSdelity Inetitutloml Caeh 180.00 180.00 180.00 5.160 5.089 5.160 1 11066 PSdellty Inetltutloml Caeh 2,561.00 2,561.00 2,561.00 5.160 5.089 5.160 1 11045 Pidelity Inetitutioml Caeh 12�461�534.00 12�661�536.00 12,641,534.00 5.120 5.050 5.120 1 � 11046 Pidelity Inetitutioml Caeh 3,700.00 3,700.00 3,700.00 5.120 5.050 5.120 1 11067 Pidelity Inatitutional Caeh 92,902.00 92,902.00 92,902.00 5.120 5.050 5.120 1 13048 Pidellty Inetitutional Caeh 63,006.00 G3,006.00 63,006.00 5.120 5.050 5.120 1 11069 PSdelity Inetitutional Caeh 679,768.00 C79,768.00 679�768.00 5.120 5.050 5.120 1 11050 Fidality Inetitutional cae� 12,802.00 12,802.00 12,802.00 5.120 5.050 5.120 1 11051 Fldelity InetStutSanal Cach 29,901.00 29,901.00 29�901.00 5.120 5.050 5.120 1 11052 Fidelity InetitutSonal Caeh 2�784�929.00 2�784�929.00 2�786�929.00 5.120 5.050 5.120 1 """"_____'_" ____"_"_"" _"""""'_' """'_""_' """ '"____ "'_'_ 9UBTOTAL3 and AVIItAGEe 32,390,097.16 31,886,332.00 31�884�332.00 31�886�332.00 5.055 5.125 1 Z O1/08/1997 � PD ReCevelOpmant AganCy PM - 3 TNVLS'frffiNT� HOR1'FOLTO bh`i'ATL6 - TNVE97Mg[i1'9 RDA D&CBPIDSA 31� 1996 ACCAUN. INVESTMENT AVSRAG& PUACHA9E BTATSD '-- Y1T1 -" MATURITY DAYS [iUDIDB[t ISBUSR BALANCE DATS HOOR VALUE FACS VALUB MARRET VALUB RATB 360 365 DATS TO MAT _"""""'_'_'__"'_""_"'_"""""""""'_""""_'_"""'_""'_""""""""""'"__"""_"_"""""""'_"" LOCAL AGSNCY INV58T1M1S[iT FUNDS 21000 Lxal Agency Inveetment Pun 9,036�136.85 9,036�136.85 9,036�136.85 5.601 5.526 5.601 1 21001 Lmal Agency Inveetment Fun 0.00 0.00 0.00 5.587 5.510 5.587 1 __'_____"_'_____ ____'________' ______'___'_'_ __"_'"""'_' "'_" """ ""'_ BUHT(7PAL8 and AVSFtA0H8 10�939�362.66 9�036�136.85 9�036�136.85 9�036,136.85 5.526 5.601 1 COMAffiiCIAL PAPER ' DISCOONT 24001 2 American Hrand Co�marcial P 10/03/96 1,676,953.75 1,500,000.00 1,477,500.00 5.370 5.656 5.530 01/14/97 13 26002 I General &lectric Credit Cor 10/03/96 392,093.89 400,000.00 393,860.00 5.350 5.458 5.534 02/13/97 63 ""'_'_"_"'_" "_""__'_"' """"""" _""__""__' "'__' """ '_____ BUBTOTALB and AV8FAG88 2,634,848.93 1,869,Od7.64 1,871,340.00 1,900,000.00 5.455 5.530 19 FSDEAAL A6&fiCY ISSU88 - COUPON 15008 A FeGeral Perm CreC1t 09/13/96 498,629.48 500,000.00 502,031.25 6.125 6.312 6.600 07/09/98 556 15005 S Pederal Home Loan Hank O6/16/95 2�119�626.12 2�115�000.00 2�122�270.31 6.105 5.855 5.937 12/01/97 334 15009 R Petleial Home Loen HMk 10/03/96 798�198.96 800�000.00 801�250.00 6.625 6.480 6.570 OB/20/O1 1�692 15010 R Fetleral Home Loan Mortgage 10/22/96 995�285.05 1,000,000.00 993,637.50 5.800 6.123 6.208 03/19/99 807 '__'_""_'______ ______________ ______________ ______________ ______ ______ ______ SUBTOTALS antl AVENAGE9 4�430�759.09 6�411�539.61 4�418�989.06 6,615,000.00 6.080 6.165 711 PBDEPAL AGBNCY I88U88 - DIBCOUNT 16006 I Petleral Parm Credit 09/17/96 982�750.00 1,000,000.00 998�399.96 5.400 5.495 5.571 01/10/97 9 16007 I Pedesel H�e Loan Benk 10/03/96 389,792.00 C00,000.00 396,880.00 5.280 5.618 5.496 03/26/97 86 16011 8 PeQeral 6�e Lom Benk 11/14/96 3,967,768.89 4,000,000.00 3,994�600.02 5.180 5.222 5.295 O1/09/97 8 16009 I Fedeial Home Loen Mortqage 30/03/96 388�660.22 600�000.00 393�719.97 5.270 5.406 S.C81 04/15/97 306 16010 I Federal National Mortgage A SO/23/96 4,920,602.75 5,000,000.00 4,968,499.76 5.210 5.290 5.368 02/10/97 40 _________________ _______'___'__ ______________ ___'_'_"'___' '_"" """ ______ eUHTGfAL3 eRd AVERAGES 10,669,353.86 10,649,353.86 10,749,899.71 30�800�000.00 5.295 5.368 29 RR6AeURY SSCURITIHB - COUPON 17007 I Unitee 3tatae Trancury 07/O1/96 999,958.31 1,000,000.00 1�000�312.50 6.000 5.921 6.003 11/30/97 333 17010 A Unitee 8tatee Treaeury 07/01/94 699,050.11 692,000.00 703,677.50 6.750 6.165 6.251 OS/31/99 880 17012 I Unitea 8tatee Treaeury 07/O1/95 1,302,904.97 1�300�000.00 1�306�468.75 6.375 S.B07 5.887 O6/30/97 180 17013 A Unitee 8tatee Treaeuxy 07/O1/95 108,090.87 104,000.00 108,615.00 7.750 6.098 6.182 11/30/99 1,063 17015 E Unitee 8tatee Treaeury 07/OS/95 231,530.86 231,000.00 231,072.19 6.000 5.665 5.726 11/30/97 333 17030 R Unitae 8tatea Treaeury 03/02/95 269,597.13 250,000.00 250,859.38 6.375 6.636 6.728 O6/30/97 180 17065 % Unitea Statea Treeeux�y 07/O1/95 5�394�767.17 5,390,000.00 5,605,159.38 6.875 6.390 6.678 03/31/97 89 17065 A Unitee Statee Treaeury OS/17/96 992,767.07 1,000,000.00 1�002�187.50 6.250 6.359 6.667 Od/30/O1 1�580 17066 R Unitee 8tatee Treaeury OS/17/96 397�106.83 400�000.00 600�875.00 6.250 6.359 6.447 04/30/O1 1�580 17068 2 Unitee 9tatee Treaeuxy OS/20/96 4,997,768.60 5,000,000.00 5,000,000.00 5.625 5.636 5.716 O6/30/97 180 3 O1/OB/1997 PD Redevalopment Agency PM - d INV88TMEIPf POATFOLIO �BTAILB - ItNE87MENT8 RDA DECBMB&R 31, 1996 ACCAUAL IIN881TffiNT AV&PAGB PVRCHA98 BTATSD -" Y1T] '-- MATUAITY DAYS NUFIDER ISSUfiR HALANCE DATS BOOR VALUB FACS VALUS MARRHT VALUE PATB 360 365 DATB TO MAT '__"__'_"__"_____'_'_'__'___'_'__'_'_____"_'_"'___"__"'_"___""_______"___'________'_"___'___'___'__"___'___"_'__'___ TABA3UAY eECURITIEB - COUPON 17069 Unitee 8tatee Tieaeury 05/24/96 2,003,168.11 2,000,000.00 2,006,375.00 6.125 5.905 5.987 03/31/98 d56 17070 UnStec 8tatee Traasury OS/26/96 2,006,829.18 2,000,000.00 2,005�000.00 6.625 5.510 5.586 03/31/97 89 17071 Unitae 8tatee Treaeury 05/24/96 1�000�532.98 1�000�000.00 1�000�625.00 5.875 5.691 5.770 07/31/97 211 17072 Unitea 9tatas Treaeury OS/26/96 999,397.77 1,000,000.00 999�375.00 5.750 5.749 5.828 09/30/97 272 17073 Unitea Statee Treaeury OS/26/96 1�001�571.80 1�000�000.00 1�001�250.00 7.500 5.422 5.497 O1/31/97 30 17076 Unitee 9tatee TLeaauLy 05/30/96 801,280.76 800,000.00 801�250.00 6.125 5.640 5.718 05/31/97 150 17077 Uniteo Stetae Treaeury OS/30/96 989,999.74 1,000,000.00 990,000.00 5.000 5.900 5.982 OS/31/98 395 17078 R Unitee Statee Treaeury 10/03/96 999,698.83 1,000,000.00 997,812.50 5.625 5.580 5.658 10/31/97 303 17079 8 Unitee Stetee Treaeury 11/16/96 5,011,621.10 5,000,000.00 6,996,875.00 5.750 5.366 5.420 09/30/97 272 17080 8 Unitae Statea Treaeury 11/16/96 5,015,388.26 5,000,000.00 5,007,812.50 6.125 5.278 5.351 05/31/97 150 """"_'_'_'_" '__""_"'____ _'_'__"___"' """'_""" _""' ""__ """ SUeTOTALB and AV8A71088 37�650�854.53 35�200�970.03 35,211�602.20 35,167,000.00 5.734 5.813 271 TR871BURY BBCOAITI89 - T-HILL 18020 Unitee States Treaeury OB/13/96 218,520.71 226,000.00 223,074.86 5.180 5.310 5.384 O1/30/97 29 18021 Unitee Btatee Tzeaeury OB/13/96 70,163.41 76,000.00 71,866.60 5.610 5.637 5.715 07/26/97 206 "'"""""""_ '_"_"_'_""' ___"_'_""" ""_""'_"' """ """ ""_' 90HTOfALB and AVERAOSB 288,686.12 288�686.12 294�921.46 298�000.00 5.389 5.666 72 _'_'_"'_""'_""_""'_"""'__'_""""""""'_"""'__"_""""'_"""""_"""_'_"'_ TOfAL INVSBII�ffiVTe and AVO. E 93,360�064.51 93�467�221.28 98�963�960.35 93�500�668.85 5.6615 5.5176 140 "�"""�""""""'�"'."e""�"...��.�""`�'..a.e::....:z.aseasee..a..:"�""""'��"'a..a:a�me 1 O1/OB/1997 ^ PD Aetlevelopment Agency PM - 5 INVE8'A16NT PORTPOLIO DBTAILS - CA9H ADA DECEPIDBit 31� 1996 ACCAUAL 2NVEeTMENT AVSRAGB PURCBAHB STATSD '-' Y1M "' MATOAIIY DAYB NUMB%R I88USR HALANCS DAT& HOOR VALUH PACS VALUB MMRET VALUS RATS 360 365 DA7B TO MAT _____""'___"___________'__'____"_'_____"__"""_'_____"""'_"_"""_'_""""__"'_"'_"""'_"""'_"_'__""""_'_' PA88HOOR/CH[iCRIBO 25000 Be¢k of Amarica-Checking 615,170.96 O.D00 0.000 0.000 25001 Bank of Amarica-8avinge 20�Od8.31 2.000 1.973 2.000 25003 PIAST INT�YSTAT6 eANR 0.00 3.290 3.265 3.290 25005 PIAST INT8R9TAT8 HANR 9�067.12 6.025 3.970 6.025 25006 FIA9T INT8fi8TAT8 HANR -6.00 0.000 0.000 0.000 25002 B of A - SelL Help Checking 19�818.05 0.000 0.000 0.000 "'_""""" """'_""" "_"' '_"" &UBTOTALB and AVSPAG68 663,806.69 664,096.12 0.163 0.165 Accrued Intaraet at Purchaee 220,038.00 """"""""""""""""""""""""""""""""""""""""""""' TUPAL CABH = 686,134.12 TOTAL CASH and SNVBSTAffiNTB ; 99,627,766.86 94�026�198.63 ....e..�:..s.a.:�:az�:::.a::�:�.......�......:�.:::....a.s..........:...:......�a..e�..�.....�o....... 5 OS/08/1997 ^ PD Aedevelopment Agency ` PM - 6 POATPOLIO MA8T6R INV&6Tt�NT ACTIVITY HY TYPB ADA DBCFPIDER 1� 1996 - D&CEPIDSR 31� 1996 ACCRUAL BTATED TAANBACTION PURC9A8S9 8AL88/IMTURITI88 TYPB INV&STl�Nf p I88USR PATB DATB OR D8P09IT9 OR WIT�RAWALe BALANCE FIDELITY TRSABUAY POOL (Monthly' 9u�Z}') 13002 I FSEellty Inetltutloml Cee� 5.120 34�876.00 11003 R FSAelity Inetitutional Cae� 5.120 11006 8 Fidelity Inetitutional Caeh 5.120 184�015.00 11005 I PSdellty Inetitutionel Cne� 5.120 633.00 11006 R F1Qellty Inetltutlonal Caen 5.120 4,079.00 11008 A Fidelity Inetitutional Caeh 5.160 178,191.00 11009 I Fidelity Inetltutlonal Caeh 5.120 160�283.00 11010 I FStlelity Inetltutionel Cneh 5.120 3,327,737.00 11011 A Pitlelity Inetitutional cae� 5.160 1,106,021.00 11012 E Pidelity Snetitutianal Caeh 5.120 S,SSO�d36.00 11018 FSdellty InetStutlonal Caeh 5.120 680,330.00 11019 PSdality Inetitutionel Caeh 5.120 135.00 11020 PSdelity InetltutSonel Caeh 5.160 11021 P19e11ty Inetltutlonal Caeh 5.120 176.00 13022 PSdality Inetitutlonal Caeh 5.120 2.00 13023 Fidelity Inatitutioml Caeh 5.160 11025 Pldelity Inetltutional Caeh 4.120 111.00 13026 FSdellty Inetitutioml CaeR 5.160 11027 & Fidelity Inetitutionel Caeh 5.120 72,096.00 11028 FSdelity Inetitutional Caeh 5.140 1.00 11029 Fitlelity Inetitutional Caeh 5.120 2.00 11030 R Pldellty Inetitutionel Caeh 5.120 315,162.00 13031 Pldellty Inetltutlonal Caeh 5.120 83.00 11032 Fidelity Institutioml Caeh 5.120 13034 8 Fidelity Institutional Ceeh 4.690 11035 Fidelity Inetltutional Caeh 4.900 11036 Plaelity Inetltutional Caeh 6.690 11037 Pitlelity Inetitutional Cae� 5.160 13038 Pidality InetStutSonal Caeh 5.130 11039 A PSAe11ty Inetltutional Caeh 5.130 11060 Fidelity Tnetitutional Caeh 5.180 1.00 11061 I Pldellty Inetitutlonal Caeh 5.130 11042 Fidelity Inetltutional Caeh 5.130 11043 Pidelity Inetit�tloml Caeh 5.160 11066 FSdelity Inetitutioml Caeh 5.160 11045 Fidelity Inatitutional Caeh 5.120 11066 Fidelity Inetitutioml Caeh 5.120 11047 Fidelity Inetitutioml Caeh 5.120 11048 Fidelity Inetitutional Caeh 5.120 11069 Fidelity Inetitutlanal Caeh 5.120 11050 PSdellty SnetSiutlanal Caeh 5.120 I3051 Pldelity Inetltutlonal Caeh 5.120 l� O1/08/1997 PD Aetlevelapment Agency ' PM - 7 PORTFOLIO MABTSR INVS87T181Pf ACENITY HY TYPfi RbA DECSMBfiR 1� 1996 - DBCEt�EIY 31, 1996 ACCRUAL 9TAT8D TAANBACTIOIP PUACHA9B8 8ALE8/MATI7AITI89 TYPB INV88Tt�ffiNP Y I69USR AATB DATB OA D8P082T8 OA WITEIDAAWALB HAiJfNCE _'_""_"'_"__"'__""'_'__'_'_"________"_"_____'___'____""__"______"'_"______"__'_____"_'__'___'____'__"""_______ 11052 FStlelity Inetitutionel Cae� 5.120 SUBTOTALB entl BNDIPG BALANC6 3,645�861.00 3,968�685.00 31�884�332.00 IACAL A(iHNCY INV887MffiiT FUND8 (MontrtlY eu�ery) 21000 Local Agency Inveatment Fund 5.601 1�000�000.00 2�500�000.00 21001 Local Agency Inveetment Funtl 5.587 8usam�xL9 ana 8[mxec aALANCg 1,000,000.00 2,500,000.00 9,036,176.85 PAeSB00R/C�CRING (lfonthly 9u�ryJ 25000 Hank of Amarlca-C�ecking 0.000 25001 Hank of America-Savinga 2.000 25003 FIRBT INT8R8TAT8 HANR 3.290 25005 FIRST INIBR8TAT8 HANA 4.025 25006 FIRST INTPR9TAT8 HANR 0.000 25002 H of A - 8elf 9elp Checking 0.000 762.37 SUHTOTAL9 md BNDINO HALANCB 762.37 0.00 0.00 G89 WITH TAUSTSB -PIABT TAUBT (Monthly 8unmary) 26000 Ceeh with Truatea 0.000 26001 Caeh with Truetee 0.000 26002 Caeh wiffi Trvetea 0.000 26003 Cash with Truetee 0.000 26006 Caeh wlth Truetee 0.000 26005 Caeh with Truetee 0.000 26006 Caeh with Truetee 0.000 26007 Caeh with Truatee 0.000 � BUBTOTALB and 8[iDIN6 BALANCB 0.00 0.00 0.00 COIMIBRCIAL PAPBA - DISCOUNT 24000 I Dupont Co�erclal Paper 5.203 12/17/1996 1,683,760.00 1,869,Od7.66 FEDEHAS. A68NCY I88UE8 - COUPON 4�611�539.61 7 O1/08/1997 PD Aedavelopment Agency � PM - 8 POATFOLIO MABTBR INV88TAffiNT ACfIVITY HY TYPB ADA DEC8PID8R 1� 1996 - DECEPIDER 31� 1996 ACCRUAL BTATSD TAANBACTIOli P17ACHA8S8 BALSB/MATIfAITIHB TYPF INVSSTDffiNT f I88VEA AATB DATE OA DSP08IT8 OA WITHDAAWALB HALAMCB F8D8RAL AGENCY I88U88 - DISCOUNT 10,669,353.86 TR&ABURY BECUAITIEB - CUUPON 17062 R Unitea Statae Treeeury 6.375 12/17/1996 168�726.83 17063 R Unitee 8tatee Treaeury 6.375 12/17/1996 595�499.42 17064a A Unitee 8tatee Treeeury 6.375 12/17/1996 248,360.68 17066� A Unitee etatae Treeeury 6.375 12/17/1996 3,725,630.27 SUBTOTALB and ffi7DING HALANCB 0.00 0,737,995.20 35,200,970.63 TREASURY SSCURITIEB - T-HILL 288,686.12 "________________"'_'_"""""_"'_'_"""__"__""'__"'_""'_" SOTALB 6�466�623.37 12�690�220.20 93�340�064.51 a�:.:..��:.::..::.a..��.a.s_�:.:���a.�..::.ze..�s.e....�.�s..�e...�...za O O1/OB/1997 PM - 9 PD Aedevaloponent Agency NM INVEBTI�NT ACTIVITY BUMMAAY ACCRrmT. DSC&ABBR 1995 through D&CEMHEA 1996 YSSLD 10 MATURITY MANAf�D NUt�&R OP NUlIDBA OF AV8PA68 MONT9 NU[�SA OF 10'fAL 360 365 POOL BECURITI88 BBCUAITIBB AV8AA0& DAYS TO 8[iD Y6AA BSCURITISB INVBBTID E4UN BQUIV AAT& PURC9A8&D MATUABD/80LD T&PM MATUAITY "'"'___'_"'__"'____'____""____________'__'_""'_"___'__"_"__"""""__"____"'___"__'______'___'_""" Decamber 95 87 96,669,896.71 5.762 5.862 5.615 0 2 404 228 Januaxy 96 85 95�928�939.76 5.655 5.733 5.146 0 2 605 211 February 96 80 93�156,182.09 5.581 5.658 5.096 0 11 389 204 Merch 96 79 92,861,108.88 5.526 5.603 5.095 0 3 380 190 Aprll 96 83 90,208,295.31 5.520 5.597 5.159 0 6 389 183 May 96 94 100,720,776.03 5.649 5.728 5.158 16 7 525 336 J�ne 96 97 89,105,637.01 5.665 5.7dd 5.066 1 3 590 356 July 96 99 91�052,066.60 5.650 5.729 5.081 0 3 573 325 Auguet 96 97 93�122�526.58 5.632 5.711 5.079 2 7 569 298 8eptember 96 96 88,629,260.09 5.659 5.738 5.077 2 5 579 298 October 96 101 305,026,728.69 5.565 5.642 5.123 30 5 689 266 Nwamber 96 97 101�591�889.11 5.685 5.561 5.124 3 9 330 219 Dec�bez 96 92 93,360,066.51 5.641 5.517 5.125 0 6 267 Sd0 """_"'_""'__'___'_________________"'__'_"""___""""""""_"""""""""""""_ AVSRAG68 91 { 94�705�C89.80 5.6009 5•677$ 5.1508 3 5 451 250 1 O1/OB/1997 ^ PM - 10 PD Aedevelopment Agency ADA DI9TRIBVLION OF INVE9'II�ffi]T9 HY TYPS ACCRUAL DHCffiAHBR 1995 through DECE[�8R 1996 MpNqg """""_"__' ""__""_'_"""_ TYP88 OF INV&ST[�ffiNTS ""'_'_'___"_"""_"_"""_____"_"'_""_ 8[iD YBAR 8CD SW LA1 LA2 LAS PA1 PA2 PA3 FSN BAC CPI COM PAC FM TAC TAD AID1 '_"'_'___"___""_""""_'_""___"_____'_"__"""'_______'_'_"'__'__'_"'__'_"____""__""__"___'____""'_"_'_'______ Dec�Eer 95 17.1 0.0 26.7 2.2 15.3 38.1 2.7 January 96 19.5 22.5 2.2 15.6 37.7 2.7 Fabruery 96 33.5 20.2 2.3 5.3 37.9 0.9 March 96 43.1 17.4 2.3 37.3 0.9 April 96 61.0 18.0 2.6 37.8 0.9 May 96 10.1 23.7 2.1 58.6 0.8 6.9 Juna 96 11.6 13.7 2•6 0.6 65.5 0.9 5.5 July 96 16.5 13.1 2.3 0.5 63.2 0.9 5.4 Auguet 96 21.7 13.5 2.3 0.5 61.3 0.5 0.3 September 96 18.6 12.8 3.0 1.1 63.9 0.5 0.3 October 96 26.1 10.5 3.2 4.2 6.7 68.5 O.0 0.3 Nw�ber 96 31.9 10.4 3.3 4.3 10.5 39.3 0.3 December 96 34.2 9.7 2.0 4.7 11.6 37.7 0.3 ___________""__"_""'_""'_'_'______'"_'__"""'__'______'_'_'_""'_"______""_"'__"_'___""_"'__'___"" AV&PAGGS 26.78 O.Ok 16.2i 0.7t 2.81 5.2t 68.28 0.9t 1.3i ..................e...:.�.......................e...e...............�Fv.�ses.....�m..arz�:�..��..e�...�a=a:..�...:�e� BCD - Certlficatee oE Depocit - eank eCD - Certiflcatee of Depoeit - S G L LAS - Pidelity Treaeury Pool LA2 - Henegad Pool Accovnte LAS - Lxal Agency Inveetment Punde PA1 - Paeebook/Checking PA2 - Caeh with Truetee -Firat Truet . PA3 - Checking/8elf gelp Hweing Loene MTN - Medlum Term Notee HAC - Bankara Acceptancee CPI - Co�arclal Papac - Intezeet Heering COM - Comuercial Paper - Diacount FAC - Pedeiel Agency Ieeuee - Coupon PA17 - Fedesnl Agency Ieeuee - Diecount TRC - TieaBury 8ecurlt188 - Coupon TAD - Tree9ury 8ecurltiee - DSBCount AID1 - Treaeury eecuritles - T-H111 rb O1/OB/1997 � ^ PM - 11 PD Redevelo�ent Agency 1417� INIBREST EAANINO6 eUMMARY ��� DSC8MB8R 31, 1996 MDNTH &NDIHO FIBCAL DECeI�IDBA 31, 1996 YSAR TO DATS CD/Coupon/Dlecount Inveetmante: Intereet CollxteA S B1,d21.61 S 1�835�338.60 PLUS Accrued Intereet at 8nd of Period 961,683.76 941,683.76 L888 ACCiued Inteieet at Heglnning o£ Peiiod ( 741�488.01) ( 897�765.30) __""'_"'_'_"" "_"""'_""'_' Inisreet Eerned during Periotl y 281,617.36 1,879,257.26 ....n:a.:e>....... ..�...��e..ma...a. , ADJUBTED by Yremiume and DSecounte -7,465.00 -25�617.82 ADJUSTBD by Capltal Gaine or Loeeee 85,293.86 125,866.09 """_____'"'_'_' ____.._.."_"""" 8arninge during Perlotl 359,665.82 .5 1,979,685.53 Mortgege Bncked 8ecuritlee: Intereet Collected ; 0.00 i 0.00 PLUS Accruetl Intezeet at Snd of Pailod 0.00 0.00 LE88 Accrued Iniezeet at Beglnning af Yaziod ( 0.00) ( 0.00) _"_________'_"" _____'"_""_""_ Sntereet Earned Eusing PerSad ; 0.00 D.00 ADJUBTSD by Premiume anC Diecounte 0.00 0.00 ADJUST&D by Capitel Oaine or Loeeee 0.00 0.00 _""""'_"'_'_' _'_"_""__""" 8arninge Curing Per1oQ 0.00 ; o.00 .::ase:..........a ..e�....�.mQ�::e.. Cash/Checking Aecounte: Intereet Collected S 15.33 5 589,969.36 PLUB Accrued inTsreet at 8nd of Period 528,903.07 528,903.07 L888 Accrued Intereat at Heginning of Parlod ( 335,867.19J ( 270,537.78) "'__'___""""' """_""'__""_ Intareet 8arned durSng Period { 193�051.21 ; 868,316.65 TOTAL Interest Earned during Period { 676,668.57 f 2,727,571.91 TOTAL Ajuetmente fr� Premlume anfl Diecounte ; -7,665.40 f -25,617.82 TOPAL Cepltel Daine or Loeeee ; 85�293.86 f 125�866.09 """"""""" ""'_"""""" TOTAL 8erninge during Period S 552,497.03 S 2,827,800.18 .��me:es...::...�� e:a.......��..�... � � OS/08/1997 PDA 5100 Million Hond ^ PM - 2 INVESTMEIiT PORTPOLIO DSfAILe - INVE9a4ENT9 RDA OECEt�BR 31, 1996 ACCAUAL INVE3TDffiNT PURCFIA88 BTATSD "' Y1M "' MATURITY DAYS NUMBHR I88USR DATE BOOR VALVS PACS VALUB MARIQ.T VALUB AAT& 360 365 DATE TO MAT _______'__'__"_____________"'_"""'_"___'_________""___'_'__"""'_"__"__"_"_______'__________"""'__'__""___'_'____ FIDBLITY TAE1f8UAY POOL 11010 I Fidallty Inatitutional Cneh 765,266.00 765�266.00 765�266.00 5.120 5.050 5.120 1 11011 A Pidelity Inetitutional Cae� 3,136,627.00 3,136,627.00 3,134,627.00 5.160 5.089 5.160 1 13012 8 Fidelity Inaiitutional Caeh 2�053�185.00 2�053�185.00 2�053�385.00 5.120 5.050 5.120 1 13018 Fidelity Inatitutional Caeh 896.00 89fi.00 896.00 5.120 5.050 5.120 1 11037 Fidelity Inetitutlonal Caeh 0.00 0.00 0.00 5.160 5.089 5.160 1 _"'_"""_" """'_"_"_ ____'__"""' '_"'_ ____" """ SUBTOT7S8 and AVEI7AG89 5,953,976.00 5,953;974.00 5�953�974.00 5.071 5.141 1 P&D&AAL AOffiiCY ISSU&8 - COUPON 15030 A Pederal Home Loan Mortgage SO/22/96 995,285.05 1,000,000.00 993,437.50 5.800 6.123 6.208 03/19/99 807 TREABURY BHCURITIHB - COUPON 17030 R Unitea Stetea Treaaucy 03/02/95 269,597.13 250,000.00 250,859.38 6.375 6.636 6.728 O6/30/97 180 17065 & Unitee etatee Treaeuxy 07/01/95 5,396,767.17 5,390,000.00 5,605,159.38 6.875 6.390 6.478 03/31/97 89 17065 R Vnitsa 8tntae Treasury 05/17/96 992�767.07 1�000,000.00 1,002�187.50 6.250 6.359 6.467 06/30/O1 1,580 17068 I Unitee 8tetee Treaeury 05/20/96 6,997�7{8.60 5,000,000.00 5,000,000.00 5.625 5.636 5.714 O6/30/97 180 """"'___'_ ___'__'_""_' _""""""' __"" _""' ___"' SUBTOPALe and AV6RAGE8 11�636�859.97 11�658�206.26 11,660,000.00 6.068 6.153 257 """"""""""'__'_____"""""_""__'________'_"""_"'_""'_______ TOTAL INV&eaa+NTB and AVG. = SB,S86�119.02 18,605�617.76 18�593�974.00 5.752t 5.832t 205 ..m.�.e.as.e..am.e....a�....��....ee.m.e..=a..am..��..�e....e....e�..�..�..s.:.:..� I �-- OS/08/1997 ADA E100 MSllion Bonfl � PM - 3 INVB87MEHT POATFOLIO DSTAIL9 - CA6H ADA DBCEDIDBA 31� 1996 ACCRUAL IIN88TI�NP PURCHABS BTATSD '-' Y'IId "' MATIIRIIY DAY9 � NIIAIDER I88UEA DATB HOOR VALUB PACS VALUE MARRET VALUB PAT& 360 365 DATS TO MAT CA99 NITH TAUST68 -FIRST TAUBT 26000 Caeh with Truetee 1.80 0.000 0.000 0.000 ACciued Intereet ei PurC�aee 8,174.52 � '_"____'__""'_"'__"_"""""'_""""""____"__"""_""_"""_"" TOfAL CASH S 8�176.32 TOTAL CA99 and INV88'14�BNT8 ; 18,592,295.3d �.....��.....�v...esa.....sea......e....��..��.........:=.�eaa�..�..��..��...:a:.�s� � � OS/08/1997 � ADA j17.5 Millioa Hond ^ EM - 2 INVS9ITffi1Pf P�iTPOLIO DBTAILB - INV881M6NT8 ADA DECBlIDER 31, 1996 ACCAUAL IPV&81TffiNT PUAC6A66 BTAT&D "' Y'II1 -" IMIVAITY UAYB M1t�IIt IBBUBR DATB HWR VALUS PACB VALUB MAAxBT VALUS AATB 360 365 DATE To MAT ___________________________'_'_____""_'_"___""'_"'_'_""___________________'_'_'__'__'_"""__'________________'__""'_" FIDBLITY TREMURY POOL 13008 R Fidality InstStutloAaJ. CAeh 1�157�843.00 1�157�843.00 1�157�863.00 5.160 5.070 5.160 1 11009 I FiAelity Inetltutional Caeh - 3,527,568.00 3,527,568.00 3,521,568.00 5.120 5.050 5.120 1 11021 Fidelity Inetitutlonel Caeh 63,878.00 A3,878.00 43,878.00 5.120 5.050 5.120 1 11022 Pidelity Iaetltutioml Caeh 332.00� 332.00 332.00 5.120 5.050 5.120 1 11023 Pidallty Inetltutloml Cech 0.00 0.00 0.00 5.160 5.070 5.160 1 """"_"'_' "'_""""" _"""""'_' """ _"_" '"""' 8U8TOTALB and AVffiU088 4,729�621.00 4,729,621.00 6�729�631.00 5.055 5.125 1 TASABURY 88CURITIHB - COUPIXi 17066 R Unitee Statee Treasury OS/17/96 397,106.83 400,000.00 600,B75.00 6.230 6.359 6.467 06/30/OS 1,580 """__"'_'_'_"""""_'__""""""""""""_""'__"""_""'_""' TOTAL INV881T�iTe and AV6. ; 5�176,727.83 5�130�696.00 5�129�621.00 5.1569 5.227t 123 �""""'...�......�......s"""'�""�""""'....:......"�""""�""....::: � _4 OS/08/1997 RDA :17.5 Million Boad PM - 3 INVE87MENT PdRTFOLIO DBTAILB - G8H A17A DSCElIDEA 31� 1996 ACCAUAL INV88TAIIiNf PUACHA88 BTATED -'- YD1 --' MATfIRITY DAYB NUlIDER I88USA DATB BOOA VALU& FACE VALUB MAA1�T VALUB AAT6 360 365 DAT& TO MAT ""'_""""_"""""""""""""""""_"'_""'_""""""""""""""""'__"""""'_"""""""""""_ reaH WITH TAUSTBH -FIA9T TAUeT 26005 Cae� with Truetee 3.36 0.000 0.000 0.000 Accived Intexeat at Purcheee 1�154.89 . ""'_""_'_""""_""""""""_'_'___'__'____"""""'_'_""'_"""' TOTAL CABH = 1,158.23 ..........................:....:...�.....'........�'..��..��..................w....-. TOTAL CABH antl I[iVS81TffiPT9 S 5,127,886.06 ::_.�s_�:.an....�mz::s..a..e..za.az:e�.s..a..e..:e..sn:.n�..��..��..�.��..e�....��sa / ;� OS/08/1997 ^ ADA ;26 Million Bond PM - 2 IEN881TffiNT PORTFOLIO DEPASLS - IPVE9T[�ffiNT8 ADA DSCEhIDBR 31� 1996 ACCAUAL INVEBTMENT PURCHASS STATSD '-- Y9A "- MATIJRITY DAYB NUPIDHR I98U8A DATE BOOR VALUS PAC& VAlUB MAAIQ�.T VALU6 AATB 360 365 DAT& TO MAT ___""_"___"'_"'_'_'____'_"____'__"'_'_"'"""'_____'__'______'_"__"__"___"'____"__'______'___"'_"'___'__________"' FIDSLITY TREABURY PODL 13002 I Fidelity Inetitutional Caeh 1�629�000.00 1�649�000.00 1�629�000.00 5.120 5.050 5.120 I 11003 A Fidelity Inetitutional Caeh 83�288.00 83�288.00 83�288.00 5.120 5.050 5.120 1 11004 S Fidelity Inetltutlonal Caoh 1�013�932.00 1�013�932.00 1�013�932.00 5.120 S.OSo 5.120 1 11019 Fidelity Inetitutioml Caeh 61,336.00 61�334.00 61�336.00 5.120 5.050 5.120 1 13020 Pidellty Inetltutional Caeh 1.00 1.00 1.00 5.160 5.089 5.160 1 13029 Pidelity Inetitutional Caeh 659.00 659.00 fi59.00 5.120 5.050 5.120 1 9UHR'Olffi9 and AVSAAG88 2�768�216.00 2�768�214.00 2,768,214.00 5.050 5.120 1 P8D8RAL AOENCY I88U88 - DIBCOUNf 16006 I Federal Parm CrediS 09/17/96 982�750.00 1,000,000.00 998�399.96 5.000 5.095 S.S71 O1/10/97 9 16011 B Federal Home Loen Hank 11/16/96 3�967�768.89 C,000,000.00 3,996,600.02 5.180 5.Y22 5.295 O1/09/97 8 16010 I Federal Nationel lbrtgage A SO/23/96 6,920,602.75 5,000,000.00 6,968�699.76 5.230 5.296 5.368 02/30/97 ao ""_"""_'_ """""_"' "_"_'____'_' """ '_"_' __'__' eUeTOTALB and AVERA6S8 9�870�921.66 9,961,299.76 10�000,000.00 5.285 5.359 24 TREA9URY BSCURTTIHB - NUPQi 17007 I Unites etatee Tseaeuxy 07/OS/96 999,958.31 1,000,000.00 1,000,312.50 6.000 5.921 6.003 11/30/97 333 17030 R Unitee Statee Treasury 07/O1/96 699,050.11 692,000.00 703�677.50 6.750 6.165 6.251 OS/31/99 880 17076 Unitea Statee Treaeury OS/30/96 801,280.76 800,000.00 801,250.00 6.125 5.640 5.718 OS/31/97 150 17079 & Unitae Statee Treaeury 11/16/96 5,011,621.10 5,000,000.00 6,996,875.00 5.750 5.346 5.620 09/30/97 272 17080 E Unitee Statee Treaeury 11/14/96 5�015�388.26 5�000�000.00 5�007�812.50 6.125 5.278 5.351 OS/31/97 150 ____"""_"_ '_"'_"""" """"""_' '_"" __"" _"_" BUBTOTALB and AVERAG88 12�527r298.52 12�509,927.50 12,692,000.00 5.629 5.506 254 _"""'_"""'_______"""""'___'_'_""""""________""'__'_"_""'__ TOTAL IPV88�iT8 anA AW. ; 25,166,636.16 25,239,641.26 25�260�216.00 5.3319 5.605t 136 .........e.a.s:s:x:a.asasaysaesa:s=............:a.x..aeeas:s...........n..:cssa::m.. 'P O1/OB/1997 ADA ;26 Mi111on Hond PM - 3 INVE31M8NT POATPOLIO DBTAILB - CA9H ADA D&CSPID�t 31� 1996 ACCAUAL INVBBTt�NT PUACHAB& 8TAT8D "' Y7Tt "' MATUAI7Y DAYB NUlIDBR Ie6USR DATE HOOR VALVS PACE VALUB MAAS�T VALUH AATB 360 365 DATB TO MAT _"__'_""""_"_'_'____'_"'_______________""____'____"__"___'__"'____'_'__"___'_'_________'_'_'___'__"______'___'______ CA9H WITH TRU8T88 -FIRBT TAUBT 26002 Caeh with Trvetae 3.72 0.000 0.000 0.000 Accruetl Intereet at Puicheee 175,279.60 TOTAL CASH { 175�283.32 TOTAL CABH and INVSSTt�NYB S Z5,361,717.68 ���:.......""""""""""""""'�""""""..�..�...��_.e�""'.�""""' I �� OS/OB/1997 ^ RDA S4 Million Hond ^ Pb1 - 2 INVSBTl16ML POATPOLIO DSTAILB - IqV88'II18NT8 AI)A DSCEPIDBR 31� 1996 ACCAUAL INV88THENT PURCBABB BTATSD ___ y�p.� '_' MATUAITY MY8 NVPIDSR I88Uffit DATE BOOR VALUS FACB VALUS MARIQ�.T VALUS AATS 360 365 DATB TO MAT _____'____"'__"'_"____'_'__""_"_'_____'__"_"'_"_'_"""'_"'__"""__'___'_'___'__'_"'_'_""""___'____________"'_"__ FIDBLITY TASAfiUAY POOL 11005 I Fidelity Inetitutianal Caeh 159�179.00 159�179.00 159�179.00 5.120 5.050 5.120 1 11006 A Fidality Inetitutional Caeh 16,306.00 16,306.00 16,304.00 5.120 5.050 5.120 1 11025 PSEe11ty Inetltutloml Caeh 28�025.00 28�Ox5.00 28�025.00 5.120 5.050 5.120 1 11026 Pidelity Inetitutional Cae� 0.00 0.00 0.00 5.160 5.070 5.160 1 11027 & P19elity Inatitutional Caeh 223,999.00 223,999.00 223,999.00 5.120 5.050 5.120 1 13028 Fidelity Inetitutional Caeh 101.00 101.00 301.00 5.160 5.070 5.140 1 '""""'""" """"_""' ""'""""'"' _"_" """ _"_'" SUBIC7TALS and AVHRAGas 627,608.00 627,608.00 627,608.00 5.050 5.120 1 FEDSAAL A08NCY I89UE8 - GOUPOti 15005 & Pederel H�e Loan Bank O6/16/95 2�119.426.12 2�115�000.00 2�123�270.31 6.105 5.855 5.937 12/O1/97 334 TASA3URY 98CURITIEB - COUPOIi 17012 I Unitee Btatee Treaeury 07/O1/95 1�302�906.97 1,300�000.00 1�306�468.75 6.375 5.807 5.887 O6/30/97 180 17013 A Unitee 9tatee Treasury 07/O1/95 108,090.87 106,000.00 108,615.00 7.750 6.098 6.18Z 11/30/99 1,063 17015 H .Unitee Statee Treaeury 07/�1/95 231�530.86 331,000.00 231�072.19 6.000 5.665 5.726 11/30/97 333 ____'___""" """"""__ ____"_""'_' "_'__ """ _'__" 9UeTOTALB and AV8f1A089 1�642�526.70 1�644�155.94 1�635�000.00 5.803 5.884 260 ____""""'_"""""""""_"'_'_"""""'_'_"""""_"_"_"'_""_'_ TOTAL INV&eTt�ffiIiTs aM AVc. S 6,189,560.82 4,194,036.25 6�177�608.00 5.753i 5.8324 271 ....��.....�a....�n.:.....�..........����..�.....aa..a�..��..��..�m..::e�e�..��.... � / 7 01/08/1997 ^ gpA ;6 Milllon HonE ' �� PM - 3 IIN88'1ff8NT PORTFOLIO DBTAILS - CASH I�A DEC8DID8A 31� 1996 ACCAUAL INV8914�ffiPT PUAC9A88 8TAT6D '-' Y1M -'- MAIVRITY DAY9 NUlIDBR I88U8A DATS B003C VALU6 FACB VALUB M11AIC8T VALUB AATE 360 365 DATB TO MAT __'__"_'__'__'_'_"___'_'___"_'_________"___'_____"_'__'___"_____'__""""__""____"_____'_______'_'_'___'___'_'______"' GSH V7ITH TAVeTBE -PIRBT TAUBT 26003 Caeh with Truetee 3.07 � 0.000 0.000 0.000 "__"""""""_""""""'__"""""""""'_"'___________'_'_"_""_"" TOTAL CABH md INV&BTMBNTB j 4.189�563.89 .:..:a......:z:.ma:a:a:a:vs=asa::cax:neamascsase:axsames.as..w.wwwnwn�.e�..se.vaa�z � � O1/OB/1997 Low Motl Set-aeitle Refunding PM - 2 INV88TPffiNT PORTFOLIO DBTAILB - INVB87T�NT8 ADA DECEMBER 31� 1996 ACCRUAL INV&82TffiNT PUACHASS BTATBD "' Y'dA _" MATUAITY DAYB NUDIDBA I88UBA DATS BOOR VALUB PACB VALUB MRAAEl VALUB RATS 360 365 DATB TO MAT FIDBLITY TREASURY POOL 11030 R Pidelity Inetitutional Caeh 366,293.00 366,293.00 366,293.00 5.120 5.050 5.120 1 13031 Fidelity Inetitutlonal Caeh 20�913.00 20�913.00 20�913.00 5.120 5.050 5.120 1 11032 Fldelity institutional Cae� 1.00 1.00 1.00 5.120 5.050 5.120 1 11060 PSdellty Inatitutioml Caeh 641.00 441.00 641.00 5.180 5.109 5.180 1 """_"""' ""'_""_"' """"""" _'_"' _""' '_"" SVHTVPAL9 and AVffiiTGH9 385,648.00 385,6C8.00 385,668.00 5.050 5.120 1 ""_'_"""""'_"""'__"""'_""""_""""""""_"_"___'_'____"_ 7C7fAL INVBST!ffi7T8 and AVG. S 385,668.00 385,648.00 385,6d8.00 5.0508 5.1208 1 .�.....�......�............e�....ma....�a....�...�...a�.a��.�as.va��.aa..a�..s�.... Z U OS/OB/1997 Lw Mod 9et-aeide Refmding PM - 3 INVEBTl1BH'P PO]YfPOLIO DBTAILB - G89 ADA D8C8FID8[t 31� 1996 ACCRUAL INVESTMENT PllRCF7A98 BTATBD '-- Y'IIi -'- MATOAITY DAYS NUPIDBR S88UBR DATS BOOR VALUB PACB VALUS MARAET VALUS RATS 360 365 DATS TO MAT _""_____________'____'___'__'_____'_"""""___"""______"'_"'_'__"____"""'_'_'_""_'_____"___'___'_'_'____'_""___ CA80 WITH TAV8TE8 -PIABT TAVBT 26004 Caeh with Truetee 1.65 0.000 0.000 0.000 ____""_"""""""""""'_""'_"__""_'_""'_"""'_"""_""""""' TOTAL CASH end INVSSTMRNTS S 385�6C9.65 ..��....��............�:.:...:m:e�::.:..:::s...:s...��..�...�...��.�::ae:.:�a�::�=. 21 O1/OB/1997 1996 Deeext Aoee Serlee A � PM - 2 INV881T16NT PORITOLIO D&TAIL6 - INV681S78[iT9 AOA DBCEPIDER 31, 1996 ACCRUAL INV88S7�ffi1Pf PUAC9A8H 9TAT&D "' y'M "' MhTOAITY DAYB NUlIDER I88USA DATB BOOA VALUE FACS VALVE MAA1�T VALUS AAT& 360 365 DATB TO MAT '__"""______'_"__'__"""'___""""""__"""""'_"""_""""_'_""""'_"_'_____'_____"_"'__"___'_________""__ FID&lITY TABABUAY POOL S1D46 Fidelity Inetltutionel Caeh 3,700.00 3,700.00 3,700.00 5.120 5.050 5.120 1 11047 Fitlelity Inetitutionel Ceah 92,902.00 , 92,902.00 92,902.00 5.120 5.050 5.120 1 11048 Fidelity Inetliutloml Ceeh 43�006.00 63�006.00 63�006.00 5.120 5.050 5.120 1 ""______"__ _'_'__"'__"" _"""__""_ __"" ""'_ """ SU81VlAL8 end AVSIiAG88 139�608.00 139�608.00 139�608.00 5.050 5.120 1 TAEhBURY BBCUAITIH3 - COUpON 17078 R Unitee etatee Tteeeury 10/03/96 999,698.83 1,000,000.00 997,812.50 5.625 5.580 5.658 10/31/97 303 ""_""""""""""""_'_"'__'______________'_"'_"_"""""""_"" TOTAL INV&8�NT8 and AV¢. = 1,139,306.83 1,137,620.50 1,139,608.00 5.5156 5.592i 266 aa..a�:a.�a.aasa..:.as.a.e.m:::.:a:�:�:a=.ea�.:=.as...a..�a..��..��..�a..�a..am�a�= Z 2- O1/OB/1997 ^ 1996 Deeert Aoee Serlee e ^ PM - 2 ItNF81TiB1iT PORTPOLIO DSfAILB - INVEeA18tiTe ADA DSCElIDBR 31� 1996 ACCAUAL INVS8ITffiNT PllRCEiA9E BTATBD __' yqp� _'_ MAIVAITY OAYB NWIDBA IBBU&R DATB HOOA VALUB PACS VALUS MAAREl VALUE PATB 360 365 DATB TO MAT _____"_"_____'_____'___"_""'__"____'___________'______'_'_____""""_"__"__"__""""_"'_"'_'__'_""_"'_"_""_" PIDELITY 1718ASURY POOL 11049 Pldelity Inetitutlonel Ceeh 679,768.00 479,748.00 479,748.00 5.120 5.050 5.120 1 11050 pidelity Inatitutioml Caeh 12,802.00 12,802.00 12,802.00 5.120 5.050 5.120 1 11051 PSdalSty Inetltutional Cas� 29�901.00 29�901.00 29�901.00 5.120 5.050 5.120 1 11052 PSdality Inetitutional Caeh 2,786,929.00 2,786,929.00 2,786,929.00 5.120 5.050 5.120 1 "_'_'_'__"" __'_""""" ""__'"_""' """ ""'_ '__"' eUBTOTALB and AVffitAG88 3�307�380.00 3�307�380.00 3��07�380.00 5.050 5.120 1 COIMS[iCIAL PAPBR - DSBCOUliT 26001 I AmasScan Hzand Co�ercial P 10/03/96 1�476�953.75 1�500�000.00 1�677�500.00 5.370 5.45{ 5.530 O1/14/97 13 26002 I Genazal 8lectrlc Credit Cor 10/03/96 392,093.89 600,000.00 393,860.00 5.350 5.658 5.534 02/13/97 63 '__"""""' """"'_"" "_"_'_""_' '_"" """ ""__ BUBTOTALS end AVBRAGB9 1,869,047.66 1,871,360.00 1,900�000.00 5.655 5.530 19 PEDSPAL Aq8NCY IB8UB8 - COVPON 15009 A Federal H�e Lom Bertk 30/03/96 798,198.96 800,000.00 801,250.00 6.425 6.68� 6.570 08/20/O1 1,692 FEDSNAL AOSIPCY ISSU88 - DISCWNT 16007 I Pedaral Hwe Loan Bank 30/03/96 389,792.00 400,000.00 396,880.00 5.280 5.618 5.496 03/26/97 B6 16009 I Federal Home Loen Mortgage 10/03/96 388,640.22 400,000.00 393,719.97 5.270 5.606 5.681 06/15/97 304 "'__""'_"' "_""'_'_"' '_"_""""' "'_'_ """ "__" 9UHTOTALB anfl AVERAa88 778�432.22 788�599.97 800�000.00 5.612 3.487 96 __""'_""_"""""""'_"""""""___"""__"__""""'_""_'_""' TdPAL INVEBaffiiT8 nnd AVO. 5 6,753,058.82 fi,768�569.97 6�807�380.00 5.373i 5.4C78 217 """'��""��""""�""��""`v"""""`.'.""�a..ee.vaa.e:a�a=�`z��:::as... Z �j O1/OB/1997 1996 Deaert Roee 8ecxow Acet. PM - 2 INVB9TM6NT POATFOLIO DBTAIL9 - IpVE9'aAENT9 RDA DSC8MB8R 31� 1996 ACCRVAL INVS&T7ffi1Pl PVACHA88 BTATED --- Y1M --- MATURIIY DAYB NUEIDER I88USR DATB BOOR VALUE PAC& VALVS MAA1�T VALUB PATE 360 365 DATE TO MAT ""__""'_"_""_"_"""""_"""""'_'_"""""""'_""__""""_"_""""""""""_""_"""""""_""'_' FIDBLITY TAS7�8URY POOL 11065 Fidelity Inetitutional Caeh 12�441�534.00 12�661�536.00 12,461,534.00 4.120 5.050 5.120 1 '_"""_""'_""_""""""""""_'_""""'_""""""_______"_'"_" TOTAL INV&8AffiiT9 antl AVG. ; 12,441,536.00 12,661,536.00 12�441�534.00 5.050t 5.120! 1 ...�:ve...ev""'.`.""�e".'�.�"'�""".�""�"e"""'s�..e�..ea.vesa.:.ees�m Z'� 01/oe/1997 alythe county court Admin ctr Pnf - 2 INVBBTMENT POATFOLIO DETAILB - INVEBRASNTB ADA DSCSI�IDBR 31� 1996 ACCRUAL INV88TME[7T PURCBAHB BTATSD _" y�AI "' M7\TUAITY MY8 NUDIDBR I88USR DATS HOOR VALVH PAC6 VALUS MPPRET VALUE AATB 360 365 DATB TO MAT '_________"___"_""'_"__'__"'__'__"'____'_______"_'____'_'_'__"__'_'___'____'__'______'_'____'_'____"___'__'_____"_"'_' FIDSLITY TAEASUAY POOL 11038 PSflelity Inetltutioml Caeh 226,000.00 226,000.00 226,000.00 5.130 5.060 5.130 1 11039 R PStlellty Inetitutioml CaeR 36,202.00 36,202.00 36,202.00 5.130 5.060 5.130 1 11041 S Fitlelity Inetitutioml Ceeh 1,447,660.00 1,467,660.00 1,667,640.00 5.130 5.060 5.130 1 13042 Fitlelity Iaetltutloml Cae� 14,083.00 14,083.00 14,083.00 5.130 5.060 5.130 1 11044 Fitlellty Inetitutional Cash 2,561.00 2,561.00 2,561.00 5.160 5.089 5.160 1 ""__""_"' "___""'_"_ '_"""'__"' '_"" "__'_ ""'_ eUBTOTALB and AVffiiAG88 1�724�466.00 1�726�066.00 1,724�C66.00 5.060 5.130 1 P&DSPAL AOffiiCY I89U88 - COUP� 15008 R Fefleial Perm Cradit 09/13/96 698�629.68 500�000.00 502�031.25 6.125 6.312 6.600 07/09/98 556 TA6A8UAY 86CUAITISB - T-BILL 18020 Unitea Btetae Treaeury OB/13/96 218�520.71 226�000.00 223�076.86 5.180 5.310 5.380 O1/30/97 29 18021 Onitee Btatee Treeeuxy 08/13/96 70,163.61 76,000.00 71,866.60 5.610 5.637 5.715 07/24/97 204 _""_"""" """_""_" ""'_"""_' '__"' _""' ______ BUBTOTAL6 and AVSRAGBe 288�686.12 296�921.66 298,000.00 5.389 5.666 72 """""""""""""""'__'_____'__"'_'""_"'__"'___"_"_'_""_""_ TOTAL IINBBR9.+NT8 and AV6. ; 2�511�779.60 3,521�618.71 2,522,466.00 5.346i 5.621t 119 """""�""'�""""""'�""""""""'��..."""""""""""""""' 2y/ O1/OB/1997 Blytha County Court Admin Ctr ' PM - 3 INV88'Rffi7T POA'PFOLIO DBTAILB - CABH ADA DHCElIDSR 31� 1996 ACCRUAL lqVEBTME1Pl PURCFIp86 eTAT&0 '-' YSM '"' MATURITY DAYB NUPIDSR I88U8R DATE BOOR VALUB FACB VALUS MAARET VALUB AATB 360 365 DAT& TO MAT _______""""__"_"'_'_"'_"_""""'_"'_____'____""_""'_"_"_"_""'_""""""""_"__"__"""'_"""__"___" CA89 NITH TAU3TS8 -PIRST TRUST 26007 Caeh with Truetea 2.06 0.000 0.000 0.000 Accrve9 Intereet at Purcheee 5,64C.64 _""'_"""'__""_"_""""__"""""""_""'___"__"""""""'__" RriPN. C118H S 5�446.48 ..:.m�........:..a�.....�...:.�.se....:.....::..:.s..�..�..��..��..e:.....��:�s... TOTAL CASH anE INV88ThffilPPB 3 2,517,226.08 .�:.ne............e.....v...e..e.............<..............�...�...��..�..��..��a Z. OS/08/1997 ADA Deeert Roee eond Iesue �� PM - 2 INV691TIGNP PORT[+OLIO 0%TAILB - I[N83RM6NT8 ADA D%CBEID&R 31, 1996 ACCRl1Ai. INVBBTMENT pURCHA88 STATBD -" Y1T1 "' MATUAI7Y DAYB NUPIDSti I88UBR DATE HOOR VALUB PACB VALUB MARREP VALUB PATS 360 365 DATS TO MAT """"'__'____'_"__'____'_"_______'__'_'___"__""__"____'___"__"____'____"_'__"_"""'_""""""""""'_'_'______ FIDBLITY TR8A8URY POOL 11034 8 Fidelity Inetitutianal Caeh 2�169.00 2�169.00 2,149.00 6.690 4.626 6.690 1 11035 Fidelity Inetitutional Caeh 8.00 8.00 8.00 6.900 6.833 6.900 1 11036 Fidelity Inetitutioml Caeh 3�9{2.00 3�962.00 3�942.00 4.690 4.626 4.690 1 11043 PSdelity Inetitutlonal Caeh 180.00 180.00 180.00 5.160 5.089 5.160 1 '__"""""' """"""" """'_""_' """ "'_" """ 8U8TO�LALB and AVSRAa&8 6�279.00 6�279.00 6,279.00 6.639 6.704 1 __""'_"""__"_"__""_""_"_""_"'__'_""""""""'_""'_"""_' TOTAL INVSB�ffi�T8 and AVG. = 6,279.00 6,279.00 6,279.00 6.639H 6.7049 1 ....�m...".""'.».......e""`e"""""""'.�".�"""�"�"""�..e�....a. 2.�} OS/OB/1997 ADA Daeert Aoae Bond Iaeue PM - 3 INVE9RTffiiT PORlPOLIO DBTAILe - CASH �A DBCEDIDHti 31� 1996 ACCAUAL INV88TI�NT PURCBA88 BTATED __' y'dd "' MATORITY DAY9 ��gR =ggpgg DATB BOOR VALUB FACE VALU& MAP1�T VALUB PAT5 360 365 DATB 7V MAT ___"_______'____"'___"____"____"__'_"__'"____'__'_"_'_'____"___'_____'____"'__"__"'_"'___"____"______"'__'__"'_'__' PA88BOWC/CFBCRIHO 25003 FIRBT IMI'S�bTATB BANR 0.00 3.290 3.265 3.290 25005 FIAST INT6fl8TATE eANR 9�067.12 . 6.025 3.970 6.025 25006 FIABT IPT6R8TAT8 SANR -6.00 0.000 0.000 0.000 ___"_""'__' "'___ "'___' BUBTOTALB MG AV6FA088 9�043.17 3.972 4.027 _""_""""'__"_""_'__""""__""""'__"_""'___"'_'____'_"_"___"_' TOTAL CASH and I11V&BTMEHfB ; 15.322.17 .osam�..ovaoao.ozv000sa�ww..�a....��......��......��..e'.`��..�a..em..�m.a Z )f O1/OB/1997 Palm Deeert Offlce Camplex PM - 3 INVSSSTffi7T PORfPOLIO DBTAIL9 - CABH RDA DSCSlIDBit 31� 1996 ACCAUAL INV86TME[iT PURCBA88 BTAT&D "_ y.y� '__ MATUAITY DAYB NUPID&R S9SU6R DATE BOOR VALUB FACE VALUE MAARBT VALUS AATE 360 365 DATE TO MAT """_'______'________'______"___"_"'_"_"'_'__"_'_'______"_'___"___'____'____'___'_'_""_"'__""___'___'__.____'_'_"" PA86HOOR/C�CRIPG 25000 Henk of Americe-Checking 615,170.96 0.000 0.000 0.000 25001 emk of Americe-9avinge 20�068.31 2.000 1.973 2.000 ""_""""' _'_'_' ""'_ BUBTOTALB and AVSFIAG88 635,219.27 0.091 0.092 """"_'__"_'__"__'_"_'_'_'""""'_'_____""__'__"""___'____'_____"""_ TOTAL CABH qpd INIBg'fM6lPf3 � 635�219.21 ..��....��....��..........:.:a=...e�.....�....a...�:...a..s�..��.e�...:.:.:......�� ��� O1/08/1997 9elf Help Checking P!1 - 3 INV88'uAENT POATFbLIO DBTAIL9 - G8A RDA DBCEPIDBA 31� 1996 ACCAVAL INV8814�NP PVACBABE BTATBD ___ y� _" MATUAITY DAY9 NUEIDER I88U&A DATB BOOR VALUE FACB VALUE MAARSl VALUS RATS 360 365 DATB TO MAT ______'_________________"""""__""_""_"""'_"_"'_"""""""_"""'_'__"""""_"""""""""'_"_""""' PA9SBOOA/C�CRIB� 25002 H of A - 9elf Help Checking 19,818.05 0.000 0.000 0.000 _________""""""_"""_"_'_______"'_'_"_"""_'_'____"_""""""'___' TOTAL CABH antl INV&eTMEPT9 f 19�818.05 e:..:am.:.e:.:..........�.....e.e:m.em��::<=e:.a:..:...........�...���=��.a�..��.... �� O1/OB/1997 ~ Aedavelopmant Agency - Genesal PM - 2 INV&BTt�NT POATPOLIO DBTAILB - INVE87fffiiT9 ADA DSCEt�BR 31, 1996 ACCRIIAL INV88TI�MP PUACHA88 BTATBD -" Y7M -'- MATUHITY DAYS NUhIDSR I8808R DAT& HOOR VALU6 PACB VALUS MAARbT VALUB AATE 360 365 DAT& TO MAT ______________________'___"""_'_'_'_'___'__'_"""______"""""_'_'______'__"__'_____"_'__'_______"_'"_____'_____"_"_' LOCAL AGSNCY INVSB'AffiiT FUNDB 21000 Local A9ancy Tnvaetment Pun 9,036�136.85 9,036,136.85 9,036�136.85 5.601 5.SZ0 5.601 1 21001 Lmal Agancy Inveatmant Pun 0.00 0.00 0.00 S.SB7 5.510 5.587 1 _"___"______ ""_'_'__'___ "'______'_"_ '_"__ ___"_ "'___ 3UBT(7fTS,8 Md AVSRAG&8 9�036�136.85 9�03fi�136.85 9�036,136.85 5.524 5.601 1 . TR&1SUAY 6&CURITI86 - COUPO[i 17069 Unitae Statae Treaeury 05/26/96 2,003,168.11 2,000,000.00 2,006,375.00 6.125 5.905 5.987 03/31/98 456 17070 Unitae 8tatee Treaeury 05/26/96 2,004�829.18 2,000,000.00 2�005,000.00 6.625 5.510 5.586 03/31/97 89 17071 Unitea 8tatee Tseaeury 05/36/96 1,000,532.98 1,000,000.00 1,000,625.00 5.875 5.691 5.770 07/31/97 211 17072 Unitee 8tates Treaeuxy 05/24/96 999,397.77 1,000,000.00 999,375.00 5.750 5.749 5.828 09/30/97 272 17073 Unitee 8tatee Treeeusy 05/2d/96 1,001�571.80 1�000�000.00 1�001�250.00 7.500 5.422 5.699 OS/31/97 30 17077 Unites Statea Treaeury 05/30/96 989,999.14 1,000,000.00 990,000.00 5.000 5.900 5.982 01/31/98 395 _""_'_""'_ ___""_"_"' ""'_______" ""__ ____" ______ eUeTUfAL9 and AVBFU�EB 7,999,479.58 8,000,625.00 8�000�000.00 5.698 5.777 269 TOTAL INVE97M8NT6 and AVR. = 17,035�616.63 17�036�761.85 17�036�136.85 5.6068 5.686i 117 .:...�....��..m:s::�....�.....��..:�:s:...ee...�...�..zas:a�����.��..aaa��s..��.... � � � � � Q s � � � � � � �� � � � � � � � � _ � � � � � � � N W {N� n! yy� M y N tl1 Ny� Nyl� M w PS t/1 W N tq N tp Ny� fq (yq! fq � W Ny� Ny1 N W � � > y Y } Y y Y Y > > Y .� Y } Y Y Y Y } Y } Y T > T s � U ' � � � Y � Y � � � } i } i Y � r � Y � � � ; � Y � Y � Y f~I_I Q J Q � Q � Q J Q � Q J Q J Q -� Q J < � < J < J < J < J � ; 8 � S yS � g ; 8 � 8 ; S ; S ; 8 � 8 hS ; S � S ; S U � @w �° n � �r o� os ��e �-o rd � � g �„' �� � e � � - �n € E r m 4 � � � � g € .�$ .�%`—,� � �� a « � � ����aea �� � � �.s � '� E L � � � `-� - � � � � � ��� � � �L y� y EII � o � � ��� � �r W � ���gm � � � �� � � � �� �� j E E E "�'�. �Eg�� � �8 N �� E � E E E � g g �g p� �p� � � � g � g �� g N Sq�e� ��II� � � �� � �� Z .�C �@ � O�$� � q� a £ � � .� — q � � � � � � � � � � � � � � A �� N � �� �` � � � � � � � � � , N ,��,��{{cpp �q � g � LL F � r ,�yp g�g � � � � 'O �pp �U�g ~ � � � Q U � � � �y� C � "�' �E LL $` y � Q 1q �y � ya[ LL _ � 7 7 � V Z � � � � 2 Cq � d d �$ $ C g � � � � � s � ._— .— _ _- -- - — _ _ _� I � ,. � m :I � a � m a < Y o I• • � � , j 0 . _ , , , __ �� $ a Q eaF .. � o ueVlaiow ' � '. _ 6 y i '�, ��. ,. s�e�sau � I. ���. � eaRswt � �' � I � � , a' , . ° � .. eaR E ol t , I I 6 � r m . m m I o N 4' � SleaFi0ll 3 d � � � F ` C mq ✓ � �� � �ir '��.� 6 � � �� � �� :w�aw r a t 'a8 � E , Q ! Q � ZL a19 p'-� � � �. '. �. � �� nx E„ � , a �. SVluow n+1 � ,.. Y � m II , Q . ,, . � 9 0l f . ., '� . � � SE,oli _ ' � � o � � ' , � �. :w�ow � �, ��. . . �� . � , z a�� o . °' ,.. - . 5 � uluow 6 � ,.:. t ueV15z>l . �. ��T� . d� ° o 0 0 ° Sv . m . .. �o n a n ry � .. � .. � a D�d1oYe o . . O I A W I i � : ¢ t- O e m z � � t W � � � ��m � .. .. . . .. . �. O a `v . m 'a —`��_� ' ,. � b . �W E � �� swiIIIW — --- U H � � � � � 0 0 0 0 0 � W C� o 0 0 0. v�i. W > '9 �. m. i. WZ w e n n v p �. _ . _. . —': _ ..�--.-_ -. . . __- - � R� �I _... . .... .. . � 00000in �noo o�r � � 000000gmoom � rn i .. O � O O � tn O 1�'l O O � V N . � t9('1 M3 fA O i9 10 fH tH C'1 (7 (D ' O I� <O O (V O N I Ij W Q O � ^ N umD � �� II � � � �M � (9�� �� . t v � U W O O O V) V � t0 ("l OO N N r N �.. �� . m . � OOOeDtO �DOJ V tT s . � O N O (O I� O1 10 O O V C t0 � N I O - tA(O Yi` V (O N 1� W N (g tO N I F . M cn oin � m io . o io oi� ao � r ��.. s a � omv� g N �N � - j �, d �. uf «n U � �W`W�rW�W b�9 � ', � d Q� � � @ � , �p SO O N V tD 10 aD O N V N OO W t0 Nm NO MOIN LL �. a m o �+io �on �ooivoa �oor rn w�owM �o min m wm m rn � c �� c� � mMo � ty o . � �ro M v�i V�o�i � eD vi� n � m > � c+� o �n � Mm a M www� n � g �o � u =� ° . � vi H3 W � � �o . �. � fA tA O '�. � o $„ � �� a . m I Z � @ r N LL b C C � I 0. � O O � � N O.d � d V ❑ C � u¢o . �. �i p v a 6 p Z'a rv >. >, a p '�p' E � N � �- C C � yVj N N Q (.� 1/1 N � � Ol m(J � m J N N — p � V�- � � QQ r � m O1 - . � qT� � NJJO � Jr' � ¢a ��DS . `S' U � La N '� e _ m `m s � m e � I � E O d U LLQ O N W W d N Q N N E ry F G, H U LL O J U LL LL H H F R] C) � U y." , u 6 I I o` u r , I _ _�_'__'-� e_ e m '�.�. e " e III e r r h � II! �..____" __. _—.... _- _ _... ,'�. City of Palm Desert R,D,A. Agenda Request Meeting of FEBRUARY 13, 1997 1, To be considered under: N�,g�ineu_ pIdinances_ gesolutions_ p�her_ Consent Calendar_ Informational Items_ Public HearinBs_ Old Businws,_. 2. Item Tifle: (Pleasa Pm���WOL�g��O�d appeaz as the item's tifle on the agenda). BECEIVE & FIL11/30/96view Professional Office Buildin s Financial Statements or month ending g: Finaricial: (Complete if aPPlicable) �y) Amount Ra(uene� (a) Account/Project# ��� Appropriation Re�lwTed? (�) In the Cuaent BudgetT P.pproved bY DirectorofFinance: PAUL S. GIBSON DIRECTOR OF FINANCE/CITY TREASURER q, Submitted by: Ex�tive Directol g Approvals: Depaztmentxead —_ _ --__-__�—_—___—'---------- --_----- OSCAR G. A IJO O!'` A Certified Public Accountant tJA 74-133 EL PASEO, SUITE 8 • PALM DESERT, CALIFORNIA 92260 • (619)773-4078 � FAX(619)773-4079 7anuary 13, 1997 Palm DeseR Office Complex Paim Desert, California I have compiled the accompanying balance sheet of Palm Desert Office Complex, as of November 30, 1996, and the related income statement and statement of cash flows for the eleven months then ended, in accordance with statements on standazds for accounting and review services issued by the American Insdtute of Certified Public Accountants. A compilation is limitefl to presenting in the form of finaacial statements information that is the representation of managemeat. I have not audited or reviewed the accompanying financial statement� and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of ihe disclosures required by generaily accepted accounting principles. If the omitted disciosures were included ia the finaacial statement�, they might influence the user's conclusions about the organization's financial position,results of operations and cash flows. Accordingly, these financial statements aze not designed for those who aze not informed about such mattecs. Sincerely, � Oscaz G. Armijo Certified Public Accountant MEMBER MFAIBER Callfornia Sottety oj Ame.ican/rutlturo oj ' Gerttfted Pubttc Accourttana � CertifieJ Pubfic Acmuntants , Palm Desert Office Complex Salance Sheet November 30, 1996 Assets Current Assets Cash in Bank-Reserve Account $ 27, 072.42 Cash in Bank 398,839. 08 Cash in Bank -Security Deposit 20, 048.31 Total Current Assets $ 445, 959.81 Fixed Assets Building 444 2, 585, 000. 00 Accumulated Depreciation (66, 282. 00) Building 555 1, 085, 000.00 Accumulatad Depreciation (27,819. 60) Building Improvements-Bldq 444 82,420. 02 Accumulated Depreciation (2,289.45) Total Fixed Assets 3 , 656,028.97 Total Assets $ 4, 101,988.78 See Accountants� Compilation Report Palm Desert Office Complex Balance Sheet November 30, 1996 Liabilities and Equity Current Liabilities Security Deposit Payable $ 19, 900. 00 Deferred Revenue 700. 00 Total Current Liabilities $ 20, 600. 00 Long Term Liabilities Equity Equity 3 , 670, 000. 00 Retained Earnings 19, 968.83 Current Income (Loss) 391,419.95 Total Equity 4, 081, 388.78 Total Liabilities & Equity $ 4, 101,988.78 See Accountants' Compilation Report Palm Desert Office Complex Income Statement For the Period Ended November 30, 1996 1 Month Ended 11 Months Ended Nov. 30, 1996 Pct Nov. 30, 1996 Pct Revenue Rent Receipts $ 55, 089.45 99. 34 $ 755,450. 39 99. 67 Other Income 0.00 0. 00 263 .49 0.03 Interest Income-Security 18.06 0. 03 361.33 0.05 Interes� Income-General 346.78 0. 63 1,882 .76 0.25 Total Revenue 55,454.29 100. 00 757,957.97 100.00 Operating Expenses Commissions 2, 434. 08 4.39 2,434 . 08 0.32 Insurance 0. 00 0.00 6, 052 . 08 0.80 Office Expense 0. 00 0. 00 354. 38 0. 05 Office Maintenance 0.00 0. 00 1,099. 00 0.14 Repairs & Maintenance-Di 76.89 0.14 5,303 .54 0.70 Repairs & Maintenance-Bu 24, 123 .03 43.50 46,201.52 6. 10 Repairs & Maintenance-Ja 2,875. 00 5. 18 34,549 .55 4.56 Landscaping 500. 00 0.90 10,316.29 1.36 Professional Services 0. 00 0.00 79, 387.22 10.47 Repairs and Maintenance 76. 00 0. 14 1,845. 92 0.24 Property Taxes 0. 00 0.00 39,568 . 11 5.22 Telephone 0.00 0. 00 2,460.28 0.32 Security 0. 00 0.00 990. 00 0. 13 Utilities 4, 291.32 7.74 47,426.80 6.26 Total Expenses 34,376.32 61.99 277,988.77 36.67 Operating Income 21,077. 97 38 . 01 479, 969 .20 63.32 Depreciation Expense 8,299.69 14 .97 88 , 549 . 25 11. 68 Total Other Income (8 ,299.69) ( 14.97) (88 , 549. 25) ( 11. 68) Net Income (Loss) $ 12 ,778.28 23.04 $ 391,419.95 51.64 See Accountants' Compilation Report Palm Desert Office Complex Statement of Cash Flows For the Period Ended November 30, 1996 Increase (Decrease) in Cash or Cash Equivalents 1 Month Ended 11 Months Ended Nov. 30, 1996 Nov. 30, 1996 Cash Flow from Operating Activities Net Income (Loss) S 12,778.28 $ 391,419.95 Adjustments to Reconcile Cash Flow Depreciation 8,299. 69 88,549 .25 Decrease (Increase) in Current Assets Receivable From Escrow 0. 00 34,862 . 05 Increase (Decrease) in Current Liabilities Escrow Reserve 0. 00 (154, 130.55) Security Deposit Payable (3,812 .50) 19,900. 00 Deferred Revenue ( 700. 00) (1,400. 00) Total Adjustments 3 ,787. 19 (12,219.25) Cash Provided (Used) by Operations 16, 665.47 379,200.70 Cash Flow From Investing Activities Sales (Purchases) of Assets Accumulated Depreciation 0.00 (82,420.02) Cash Provided (Used) by Investing 0. 00 (82,420. 02) Cash Flow From Financing Activities Cash (Used) or provided by: Retained Earninqs 0. 00 ( 4,951. 42) Cash Provided (Used) by Financing 0.00 ( 4 ,951.42) Net Increase (Decrease) in Cash 16,565.47 291,829.26 Cash at Beginning of Period 429,394. 34 154, 130.55 Cash at End of Period $ 445,959.81 $ 445, 959.81 See Accountants' Compilation Report PALM DESERT OFFICE COMPLEX FINANCIAL STATEMENTS NOVEMBER 30, 1996 • cr; -" �_ -- — �� - � � -- c� � �, m -a .--_ o -. �, r � - - �__ a �� -� r- y—. ' o r-i r-i F_� � a C] ~ -+ 1/13/97 Palm Desert Office Complex Company: : PDB 12:53 Regular Trial Balance Paqe: 1 1 Month Ended 11 Months Ended Account � Type Description Nov. 30, 1996 Nov. 30, 1996 --------- ---- ------------------------------ --------------- --------------- 102 A Cash in Bank-Reserve Account 2,719.47 27,072.42 110 A Cash in Bank 17, 640.44 398,839.08 112 A Cash in Bank -Security Deposit -3,794.44 20,048.31 151 A Building 444 0.00 2,585, 000. 00 152 A Accumulated Dapreciation -5,523 .50 -66,282.00 153 A Building 555 0. 00 1, 085, 000. 00 154 A Accumulated Depreciation -2, 318.30 -27,819. 60 157 A Building Improvements-Bldg 444 0.00 82,420.02 158 A Accumulated Depreciation -457.89 -2,289.45 203 L Security Deposit Payable 3,812.50 -19,900.00 211 L Deferred Revenue 700.00 -700.00 280 L Equity 0.00 -3, 670, 000. 00 281 L Retained Earninqs 0.00 -19,968.83 301 R Rent Receipts -55, 089.45 -755,450.39 302 R Other Income 0.00 -263 .49 303 R Interest Income-Security Dpsts -18.06 -361.33 304 R Interest Income-General Chckng -346.78 -1,882.76 630 E Commissions 2,434.08 2,434.08 650 E Depreciation 0.00 7,841.80 680 E Insurance 0.00 6,052.08 710 E Office Expense 0.00 354 .38 711 E Office Maintenance 0.00 1,099.00 712 E Repairs & Maintenance-Disposal 76.89 5,303:54 713 E Repairs & Maintenance-Building 24, 123.03 46,201.52 714 E Repairs & Maintenance-Janitor 2,875. 00 34,549.55 715 E Landscaping 500.00 10,316.29 723 E Professional Services 0.00 79,387.22 730 E Repairs and Maintenance 76.00 1,845.92 756 E Property Taxes 0.00 39,568. 11 760 E Telephone 0.00 2,460.28 765 E Sacurity 0.00 990.00 775 E Utilities 4,291.32 47,426.80 812 E Depreciation Expense 8,299. 69 80,707.45 --------------- --------------- Account Balances 0. 00 0. 00 Current Profit 12,778.28 Y-T-D Profit 391,419.95 1/13/97 Palm Desert Office Complex Company: PDE 12:53 General Ledger - Period Ending 11/30/96 Page: ] Date Mt Ref � Account Description Current Year-To-Date -------- -- ------ --------- -------------------- ------------- ------------- Beqinning Balance 102 Cash in Bank-Reserve Account 24,352.95* il/30/96 11 JE4 102 Rent Reserves 2,719.47 Ending Balances = 2,719.47* 27,072.42*- Beginninq Balance 110 Cash in Bank 381,198. 64* 11/30/96 11 JE2 110 Cash 54,389.45 11/30/96 11 JE3 110 Cash-General 346.75 il/30/96 11 JE4 110 Cash -2,719.47 il/30/96 11 CD11 110 Cash Disbursements -34,376.32 Ending Balances = 1�, 640.44* 398, 839. 08*� Beginning Balance 112 Cash in Bank -Security Daposit 23,842.75* 11/30/96 il JE2 112 Security Deposit- -3,812 .50 Cash 11/30/96 il JE3 112 Cash-Security 18. 06 Deposits Ending Balances = -3,794.44* 20,048.31*� Beginning Balance 151 Buildinq 444 2,585,000. 00* Endinq Balances = 0. 00* 2,585,000. 00*� Beginning Balance 152 Accumulated Depreciation -50,�58.50* 11/30/96 11 JE1 152 Accumulated -5,523 .50 Depreciation Ending Balances = -5, 523.50* -66,282.00*� Beginning Balance 153 Building 555 1, 085,000. 00* Ending Balances = 0. 00* 1, os5,000. 00*+ Beginninq Balance 154 Accumulated Depreciation -25,501.30* il/30/96 11 JE1 154 Accumulated -2, 318.30 Depreciation Ending Balances = -2, 318.30* -27,819. 60** Beginning Balance 157 Buildinq Improvements-Bldg 444 82,420.02* Ending Balances = 0. 00* 82,420.02** Beginninq Balance 158 Accumulatad Depreciation -i,s31.56* 11/30/96 11 JE1 158 Accumulated -457.89 Depreciation . Ending Balances = -457.89* -2 ,289.45** Beginning Balance 203 Security Deposit Payable -23,712 .50* il/30/96 11 JE2 203 Security Deposit 3,812.50 Payable Ending Balances = 3 , 512.50* -19,900. 00** Beginning Balance 211 Deferred Revenue -1,400.00* 11/30/96 11 JE2 211 Deferred Revenue 700.00 1/13/97 Palm Desert Office Complex Company: PDI 12:53 General Ledger - Period Ending 11/30/96 Page: . Date Mt Ref � Account Description Current Year-To-Date -------- -- ------ --------- -------------------- ------------- ------------- Endinq Balances = 700.00* -700. 00*� Beginning Balance 280 Equity -3, 670, 000.00* Endiag Balances = 0.00* -3 , 670,000. 00* Beginning Balance 281 Retained Earnings -19,968.83* Endinq Balances = 0.00* -19,968.83* Beginning Balance 301 Rent Receipts -700,360.94* 11/30/96 11 JE2 301 Rent Revenue -55, 089.45 Ending Balances = -55, 089.45* -755,450.39* Beginning Balance 302 Other Zncome -263 .49* Endinq Balances = 0.00* -263.49* Beginninq Balance 303 Interest Income-Security Dpsts -343 .27* 11/30/96 li JE3 303 Interast Income- -18.06 Security Deposit �nding Balances = -18. 06* -361.33*� Beginninq Balance 304 Interest Income-General Chckng -1,535.98* 11/30/96 11 JE3 304 Interest Income- -346.78 General Ending Balances = -346.78* -1,882.76* Beginninq Balance 630 Commissions 0.00* 11/1/96 11 1172 630 CB Cnmmercial 2,434. 08 Ending Balances = 2,434.08* 2,434. 08*� Beginninq Balance 650 Depreciation 7,841.80* Endinq Halances = 0. 00* 7,841.80*+ Beginning Balance 680 Insurance 6,052.08* Ending Balances = 0. 00* 6,052.08*f Beginning Balance 710 Office Expense 354.38* Ending Balances = 0.00* 354.38** Beginning Balance 711 Office Maintenance 1, 099.00* Ending Balances = 0. 00* 1, 099.00** Beginning Balance 712 Repairs & Maintenance-Disposal 5,226. 65* 11/20/96 11 1184 712 Waste Manaqement of 76.89 the Desert Ending Balances = 76.89* 5,303.54** Beginning Balance 713 Repairs & Maintenance-Building 22,078.49* 11/1/96 il 1173 713 Wall Construction 20,302.20 11/1/96 11 1174 �13 Wall Construction 2,255. 80 1/13/97 Palm Desart Office Complex Company: PDE 12:53 General Ledqer - Period Ending 11/30/96 Page: 3 Date Mt Ref # Account Description Current Year-To-Date -------- -- ------ --------- -------------------- ------------- ------------- il/1/96 il 1175 713 Wall Construction 600. 00 11/1/96 li 1176 713 Paragon Desiqns 126.98 li/20/96 il 1180 713 Bradley Electrical 133.76 Inc. ll/20/96 il 1185 713 Desert Building 140. 00 Services 11/20/96 il 1186 713 The Lock Shop Inc. 344 . 16 11/20/96 11 1187 713 AZ-Tech 220.13 Endinq Balances = 24, 123. 03* 46,201.52*+ Beginninq Balance 714 Repairs & Maintenance-Janitor 31,674.55* 11/20/96 il 1178 714 Desert Buildinq 2,875.00 Services Ending Balances = 2,875.00* 34,549.55*t Seginninq Balance 715 Landscapinq 9,816.29* li/20/96 li 1181 715 Sir Michaels 500.00 Landscapinq Ending Balances = 500. 00* 10,316.29** Beginninq Balance 723 Professional Services 79,387.22* Ending Balances = 0.00* 79,387.22*} Beginning Balance 730 Repairs and Maintenance 1,769.92* 11/20/96 11 1179 730 Dewey Pest Control 76.00 Ending Balances = 76. 00* 1,845.92** Beqinning Balance 756 Property Taxes 39,568. 11* Ending Balances = 0.00* 39,568.11** Beginninq Balance 760 Telephone 2,460.28* Ending Balances = 0.00* 2,460.28** Beginning Balance 765 Security 990. 00* Endinq Balances = 0.00* 990. 00** Beqinninq Balance 775 Utilities 43,135.48* 11/20/96 11 1177 775 Southern CA Sdison 3,290. 16 11/20/96 11 1182 775 CV Water District 96. 01 11/20/96 il 1183 775 Southern CA Sdison 905.15 Endinq Balances = 4,291. 32* 47,426.8o** Beginning Balance 812 Depreciation Expense 72,407. 76* li/30/96 11 JE1 812 Accumulated 8,299. 69 Depreciation Ending Balances = 8,299. 69* 80,707.45** 1/13/97 Palm Desert Office Complex Company: PDB 12:53 General Ledger - Period Ending il/30/96 Page: 4 Date Mt Ref # Account Description Current Year-To-Date -------- -- ------ --------- -------------------- ------------- ------------- General Ledger is in balance 0. 00*� 32 Transactions Current Profit 12,778.28 Y-T-D Profit 391,419.95 ., ..--- _ - �. i//i�59 Palm Desert Office Complac Hank ReconciliaHon for Account 14961-01948 For Month Ending November 1996 Beginaing Balance 9QS,SSIS9 Add: Caeh Heceipfs 54,389.45 Interest 346.78 � Less: Ca�h Dlsbnrsemeab 34,37632 Service CLarge - Ending Balance 4Z5,91150 Balance Per Bank ' �131.409.31 Depo�ib in Tran�it _ Le�r. Onbtanding Checks 5,497.81 Ending Balance 475,91150 Onbtanding Check List Check Nnmber Payee Amoant 1099 Get Alermed Securily 55.00 1174 Well Construction 2,255.80 1178 Desert Building Service 2,875.00 1179 Dewey Pest Control 76.00 1182 CV Water District %.Ol 1185 1)esert Building Services 140.00 TotelOutstending 5,497.81 Prepared by Oscar G.Armijo, CPA 1/10/97 Page 1 . ��i�,��_ Palm Deeert Office Complex Bank ReconciliaHon for Acconnt 14963-01947 For Month Ending November 1996 Beginntng Balance zi.842.75 Add: Caeh Receipts - Intenet 18.06 Less: Gsh Dbbntsementn 3,81250 Seivice Chatge - Ending Balance 20,048.31 Balance Per Bank 20.048.31 Depwits in Taansit - Leee: Ontetaadit�g Checke - Ending Balance 211,09831 . Prepared by Oscar G. Armijo, CPA 1/10/97 Page 1 STATE OF CALIFORNIA MATT FONG, Treasuier OFFICEOFTHETREASURER GITY �F I'ALM 1FS�RI SACRAMENTO f INf,N�E DLPART1.1EtIT -�, '97 JflN 2 P�l 2 50 LOCAL AGENCY INVESTMENT FUND P.O. BOX 942809 Date: 11/30/96 SACRAMENTO, CA 94209-0001 Page: O1 NOVSMBER, 1996 STATEMENT ACCOUNT NUMBER: 98-33-621 CITY OF PALM DBS�RT 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 $16,092,198.42 11/O1/96 10/30/96 RW 716 ATT -$2,000,000.00 $14,092,198.42 11/08/96 11/OS/96 RW 71'l JER -$500,000 .00 $13,592, 198.42 11/26/96 11/26/96 RW 718 JEIt -$500,000 .00 $13,092, 198.42 --------------- ENDING BALANCE - REG $13,092, 198.42 --------------- GRAND TOTAL $13,092, 198.42 SUMMARY TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT ---------- ----------------- --------------------- REG 3 $0.00 -$3,000,000.00 CC: BARBARA WRIGHT JEAN RUTH INVESTMENT & FINANCE COMMITTEE S7ATE OF CAUFORNIA MATi FONG, Treesurer OFFICE OF THE TREASURER - SACRAMENTO E'.ITY IF �ALM IE:;FRT -A FINAN�E QE"ART��IEN7 LOCAL AGENCY INVESTMENT E'�I�flN 8 A�1 11 33 P.O. BOX 942809 Date: 11/30/96 SACRAMENTO, CA 94209-0001 Page: O1 NOVEMBER, 1996 STATEMENT ACCOUNT NUMBER: 65-33-015 PALM DESERT REDEVELOPMENT AGENCY ATTN: PAUL GIBSON, TREASURER 73-510 FRfiD WARING DRIVE PALM DESERT CA 92260 EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION DATE DATE TYPE NO CALLER AMOUNT BALANCE --------- ----------- ---- ------ ------ --------------- --------------- BEGINNING BALANCE - REG $9,536,136. 85 11/26/96 11/26/96 RW 713 JER -$500,000 .00 $9,036, 136. 85 --------------- ENDING BALANCE - REG $9,036,136.85 --------------- GRAND TOTAL $9,036, 136 .85 --------------- --------------- SUMMARY TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT ---------- ----------------- -------------------- REG 1 $0.00 -$500,000.00 RECEIVED CC BARBARA WRIGHT INVESTMENT & FINANCE COMMITTEE ,1AN 0 7 1997 PALM DESERT REDEVELOPMENTAGENCY PG LED MONEY INVESTMENT ACC•..JNT SUMMAR�' OFINVESTMENTDATA g�TY IF I'ALM BE�ERT fINANGE DEI"ARTIdEtIT A COMPARISON OF NOVEMBER 1996 WITH NOVEMBER 1995 (DollarsinT6ousands) '97 JRN 2 Pf� 2 50 `N10VEMSER 1996 ' NOVEMBER1995 �° GHANGE < AverageDailyPortfolio $27,088,172 $25,110,356 +$1,977,816 Accrued Eamings $124,662 $119,483 +$5,179 Effective Yield 5.599 5.805 -.206 Average Life--Month End(in days) 231 252 -21 Total Security Transactions �o�� $18,487,457 $15,631,542 +$Z,g55,915 Nutnber 426 380 +46 , Total Time Deposit Transactions Amount $149,500 $99,000 +$50,500 Number 22 16 +6 AverageWorkdayInvestmentActivity $1,035,387 $827,923 +$207,464 Prescribed Demand Account Balances For Services $123,758 $145,489 -$21,731 For Uncollected Funds $150,566 $162,304 -$11,438 LOCAL AGENCY INVESTMENT FUND* SUMMARY OF ACTIVITY NOVEMBER 1996 BEGINNING BALA,NCE DEPOSITS WITHDRAWALS MONTH END BALANCE $10,026,226,968.96 $825,569,000.00 $986,561,922.78 $9,865,234,046.18 'Local Agency Inveshnent Fund Invested Through Pooled Money Investrnent Account eirr eF rAi_!a a� :;i:rtT FINANCE GEPART�,�['N7 State of California JAN 2 p� 2 � Pooled Money Investment Account Market Valuation 11/30/96 Description Carrying Cost Plus Estimated Accrued Interest Purch. Market Value Accrued Interest United States Treasu : Bills $ 2,044,382,442.34 $ 2,118,832,000.00 NA Stri s $ 265,357,780.00 $ 313,381,800.00 NA Notes $ 5,063,732,201.79 $ 5,041,685,360.00 $ 65,775,774.86 Federal A enc : Bonds $ 841,854,710.56 $ 840,220,107.90 $ 12,653,236.25 Floaters $ 419,954,031.02 $ 420,314,650.00 $ 3,094,907.90 MBS $ 161,481,762.84 $ 160,364,644.07 $ 953,799.40 NA $ 12,159,860.60 $ 12,180,722.25 $ 275,966.71 GNMA $ 3,757,629.76 $ 4,243,533.12 $ 35,967.01 SBA $ 156,640,699.12 $ 158,249,821.22 $ 1,575,572.01 FHLMC PC $ 32,357,016.68 $ 34,868,319.45 $ 519,679.94 Discount Notes $ 497,127,631.96 $ 503,603,450.00 NA Bankers Acce tances $ 293,007,075.&4 $ 293,040,764.90 NA Cor orate: Bonds $ 1,460,701,5�16.11 $ 1,463,532,152.30 $ 24,744,346.62 Floaters $ 504,490,229.77 $ 504,861,655.00 $ 5,397,953.70 CDs $ 5,944,071,641.29 $ 5,984,187,439.57 $ 13,792,530.56 Bank Notes $ 535,000,000.00 $ 542,617,989.28 $ 4,733,750.00 Re urchase A reements $ 90,000,000.00 $ 90,000,000.00 NA Time De osits $ 350,795,000.00 $ 350,795,000.00 NA AB 55 & GF Loans $ 2,029,977,644.00 $ 2,029,977,644.00 NA Commercial Pa er $ 6,810,154,202.46 $ 6,812,476,631.65 NA Reverse Re urchase $ 245,500,000.00 $ 245,500,000.00 $ 966,65625 TOTAL $ 27,271,503,106.14 $ 27,433,933,684.69 $ 132,586,828.70 Estimated Market Value Including Accrued Interest $ 27,566,520,513.39 NOTE: Repurchase Agreements,Time Deposits,AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). 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F-� W v� A " _ __E!: W F FT" CITY OF PALM DF.SERT, CALIFORMA FINANCIAL STATEMENIS WITH REPORT ON AiJDIT BY IlNDEPENDflV'T CERTIF'IED PUBLIC ACCOUNTANIS JUNE 30, 1996 � � � CITY OF PALM DESERT TABLE OF CONTENTS June 30, 1996 Page Number Independent Audiwrs' Report 1 General Purpose Financial Statemenu: Combined Balance Sheet - All Fund Types and Account Groups 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 4 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types 6 - 7 Statement of Revenues, Expenses a� Changes in Retained Earnings - Enurprise Find g Statement of Cash Flows - Enurprise Fund 9 Nous to Financial Stauments 10 - 49 ,,i � Supplementa( Information: ^ Statement of Revenues - Budget and Actual - Ge�ral Fund 50 Staument of Expenditures - Budget and Actual - Ge�ral Fund 51 I '� Combining Balance Sheet - All Special Revemu Funds 52 - 57 Combining Statement of Revenues, Expenditures and Changes in Fund Bala�es - All Special Revenue Funds 58 - 63 Combining Bala�e Sheet - All Debt Service Fuads 64 - 67 Combining Staument of Revernus, Expenditures and Changes in Fund Balances - All Debt Service Funds 68 - 71 Combining Balance Sheet - All Capitat Projxt Funds 72 - 76 Combining Statement of Revenues, Ezpenditures and Changes in Fund Balances - All Capital Project Funds 7? - 81 Comburing Statement of Changes in Assets and Liabilities - Ail Agency Funds 82 L�i.��Z�, C�vaas � Com�i.any CERfIF1ED PUBLIC ACCOUNTANTS (�sca¢ �. o�¢mi�o CERTIFIED PUBLIC ACCOUNTANT '���pN KAPMAN, SUITE Z00 8 J0111t VC11lY18 74733 EL PASEO. SUITE 8 CALIFORNIA 927157542 PALM DESEFiT,CALIFORNIA 92260 If1�'N75�.�7p0 (619)773�4078 � INDEPENDENT AUDITORS' REPORT I City Council City of Pelm Desert I Palm Desen, California � � We have audi[ed the general purpose financial statements of the City of Palm DeseR, Califomia as of and for { the year ended June 30, 1996, as listed in the table of contents. These financial statements aze the responsibility of the Ciry's management. Our nsponsibiliry is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standazds. Those standazds require � that we plan and perform the audit to obtain reasonable assurance about whether the general pu�pose financial I sratements aze free of material misstatement. An audit i�ludes examining, on a test basis, evidence supporting j the amounts and disclosures in the financial statements. An audit also includes assessing the accounting I ptinciples used and significant estimazes made by management, as vuell as evaluating the overall general purpose financial statemrnt presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements refernd to above present fairly, in all material mspects, the financial position of the City of Palm Desert as of Ju� 30, 1996, and the results of iu operuioav and the cash flows of ics proprietary fund rype for the year then ended in conformity with generally accepted accounting principles. As discussed in Nou 16 to the financial statements, the Ciry has implemeneed Governmenc Accounting Standards Board Statement No. 22, "Accounting for Tazpayer-Assessed '['ax Revenues in Governmentai Funds". C Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental infomiation listed in the table of conterns is presented for purposes of additional ' analysis and is not a required part of the general purpose financial statements of the City of Palm Desert. The infor►nation has been subjected to the auditing procedures applicd in the audit of the grneral purpose financial statements and, in our opinion, is fairly stated in all mazerial respects in relation to the genecal purpou financial statemenu taken as a whole. , ��� � � ����� � 4���� Sep[ember 24. 1 96 (ezcept for the information in Nou 18A, as to wluch the date is October 3, 1996). -1- I Proprieury Fiduciary � Totals Fund Typ� Fund Type Account Groups (Memorandum Only) Cxneral General Fixed Long—Term Enterprise Agercy Aaaets Debt 1996 1995 E 298.890 S 1.260,982 E — S — S 71,699,176 f 76,108,008 — 2,897.015 — — 88.3J8,356 83.510238 — — — — ]4,334,656 15,800,658 — — — — 5.446.443 3.147.831 _ — — — 42.290,575 33.172.870 _ — — — 10,950.000 — — — — — 19,000.000 19.000,000 — — — — 275,296 639.361 — — — — 500,298 57.795 3.fi80159 — 101.257.398 — 104,937.657 87.992.536 — — — 57,487,476 57.081,476 633892/5 — — — 166.900285 166,900285 137.911209 S 3,979,149 S 4.157.997 S 101.257.398 E 224,387.761 E 582.160,520 S 520.'l59.'ISl E — S 176.260 S — S — S 6,781.194 S 2.955,605 — — — — 154,175 807,700 — — — — 5.446.443 3.147.871 25,600 1.084,722 — — 10,572.190 11.745.629 1.499 — — — 42292,074 33.769253 — 2.89'7.015 — — 2.897,015 2.410.327 — — — 224,387.761 221.387,761 201.300.454 27.099 4.157.997 — 224.J87.761 292.530,852 256,136.799 3.670.000 — — — 3,670.000 — i — — 101.257.398 — 101257,398 87,992,536 ��', 282.050 — — — 282.050 — � _ _ — — 75.1'14.4')I 81.103.689 _ — — — 108.645.7C6 95.526.727 3.952.050 — ]01.257398 — 289,629.668 264.622,952 S 3.979.149 E 4.157.997 E 101.257.398 S 224.387,761 S 582,160.520 E 520.759.751 _;_ �� �' CITY OF PALM AESERT V COMBINED STATEMENT OF REVENUES,EXPEND[TURES AND CHANGES IN FUND BALANCES—ALL GOVERNMENTAL FUND"CYPES For the year ended lune 30, 1996 , (With comparative totals for the year ended June 30, 1995) Special REVENUES: Genecal Revenue Taxes S 17.569,058 S 4.244•624 Special assessments collected � — 438•549 Licenses and permits 809,693 — Intergovernmental revenues 3,17"7.260 4,049.664 Charges �'or services 539.398 — Fines and forfeitures 55,470 28.028 Use of money and proporty 1.583.596 946.180 Recovery of inves[ment loss — — Sale of inventory — 1,031,764 Other revenues 112,064 2,991 TOTAI.REVENUES 23,846.539 10,741,800 EXPENDITURES: Current: Genoral governmeatal—departmeatal 6,679.393 — Generalgoveramental—eoadepartmental 409.020 6,405,023 Public safety 6,861.919 798.918 Pubiic works 4,527.291 382,075 Parks, recreation and culture 1.190.679 — Bad debt expense — — Loss on investment(Note 1S) — — Cost ofinventory sold — 803.000 Decline in value of inventory held for resale — 3,347,000 Capital outlay — 7.214,939 Educational RevenueAugmentation Fuad — — Payment toother agencies — — Debt service: Bond discount — — Hond issue costs — — Interest and 6scal chatges — 178,731 Prinoipal retirement � — — Repayment of advances — — TOTAL EXPENDITURES 19.668.302 19.132.686 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 4,178,237 (8.390,886� OTHER FINANCING SOURCES(USESk Operating transfers in 678,676 12.225,376 Operating transfers out (49.745) (1,769,870) Advance from other fuads — — Proceeds from bonds (Note 6) — 15.100,000 Payment to refund escrow agent — (6.755,1001 TOTAL OTHER FINANCING SOURCES(USES) 628.928 18.800.406 EXCESS OF REVENUES AND OTHER FINANCING � SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 4,807,165 10,409.520 FUND BALANCES—BEGINNING OF YEAR(NOTE 16) 20,806,384 16,227,924 RESIDUAL EQUI7'Y TRANSFER OUT(NOTE 17) — — FUND BALANCES—END OF YEAR S 25.613.549 S 26.637.444 See independent auditors' report and notes to fiaancial statements. —4— i ; Debt Capital Totals (Memorandum Only) Ser�_ Project 1996 1995 g Z3,q3g.g75 5 — S 45.253.057 S 43,903,819 3,611.437 — 4,049,986 � 3.605.307 � — 212,394 1.022,087 1,006,064 . — 6,700.010 13.926,934 8.626,030 _ — 539,398 534,354 _ — 83.498 78,272 2,668.744 4,821,145 10,019,665 6,016.484 _ — — 547,176 _ — 1,031,764 — 689.868 135.646 940,569 703,839 30,409.424 11.869,195 76,866,958 65,021.345 — 1.800,600 8,479,993 8.621.141 374,722 — 7.191.765 4.77'7,722 _ — 7,660,837 8,498,700 _ — 4,909.366 2,513,937 ' _ — 1,190.679 1,334,452 2.229.000 — 2.229.000 — 3.627.780 — 3,627.780 — _ — 803,000 — _ — 3,347,000 — — 21.229.700 28.444,639 27,655,049 _ — — 781,872 6,386,052 — 6,386,052 6,502.102 397.788 — 397,788 578,945 461,209 — 461.209 969,097 12,377,481 — 12.556,212 10,963,015 2.785.000 — 2,785.000 2.808,980 _ — — 334.000 28.639,032 23.030.300 90,470.320 76,339,012 1.770,392 (11,161.105) (13.603.362) (11,317,667) 16.812,763 2.906,850 32.623,665 18.314,503 (27,984,502) (2.819.545) (32.623,665) (18.314,503) _ _ — 8,000,000 16,681.312 9.548,688 41,330,000 38,392,000 (9.511,7341 — (16.266,834) — (4,002.161) 9.635.993 _, 25.063.166 46,392.000 (2,231,769) (1,525.112) 11.459.804 35,074,333 63,389.245 76,206,863 176,630,416 141.556,083 (3,670,000) — (3.670.000) — S 57.487.476 S 74.681.751 S 184.420.220 S 176.630.416 —5— - � �+ CITY OF PALM DESERT �✓ COMBINED STATEMENT OF REVfiNUES,EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL GENERAI.AND SPECIAL REVENUE FUND TYPES For the year ended Iune 30, 1996 General Fund Variance Favorable Budget pctual (Unfavorable) REVENUES: Taxes S 16,556,800 S 17.569.058 S 1,012.258 Special assessments collected — — — Licenses and permits 485,900 809,693 323.793 Intergovernmental revenues 1,690.310 3,177,260 1,486,950 Charges for services 385,500 539.398 153,898 Fines and forfeitures 36,000 55.470 19.470 Use of money and property 1.057,500 1.583.596 526,096 Sale ofinventory — — — Other revenues 5,000 112.064 107,064 TOTAL REVENUES 20.217,010 23,846.539 3,629,529 EXPENDITURES: Current: General governmental—departmental 7,681,192 6,679.393 1,001.799 Geaeral goveramental—aondepartmental 439,103 409,020 30.083 Public safety 8,348,200 6,861.919 1,486.281 Public works 7.542,219 4.527.291 3,014,928 Parks, recreation and culture 1,397,686 1.190,679 207,007 Cost of inventory sold — — — Decline in value ofinventory held for resale — — — Capital outlay — — — Debt service: Interest and fiscal charges — — — Principal retirement — — — TOTAL EXPENDITURES 25,408,400 19,668.302 5,740,098 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5.191,390) 4.178,237 9,369,627 OTHER FINANCING SOURCES(USESk Operating transfers in 520,000 678,676 158.676 Operating transfers out — (49,748) (49,748) Proceeds from bonds — — — Payment to refund escrow agent — — — TOTAI. OTHER FINANCING SOURCES(USES) 520,000 628,928 108,928 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (4,671,390) 4,807,165 9,478,555 FUNDBALANCES—BEGINNINGOFYEAR 20,806,384 20.806.384 — FUND BALANCES—END OF YEAR . S 16,134,994 S 25,613,549 S 9.478.555 See independent auditors' report and notes to financial statements. _6_ � _ Special Revenue Funds Totals — Variance Variance Favorable . Favorable Budget _ Actual (Unfavorable) Budget_ Actual (Unfavorable) S 3.013.000 5 4,244,624 S 1,231,624 S 19,569,800 S 21,813,682 S 2.243.882 aas.s2� ass.sa9 (io.2�s� aaa,az� ass.sa9 �io,z�s� _ — — 485,900 809,693 323,793 2.523.559 4,049,664 1,525.805 4,214,169 7,226,924 3,012.755 _ — — 385.500 539,398 153.898 10,000 28.028 18,028 46,000 83.498 37,498 358.000 946,180 588,180 1,415,500 2,529,776 1.114.276 — 1.031,764 1.031,764 — 1.031,764 1.031,764 300.000 2.991 (297.009) 305,000 115.055 (189,945) 6,653.686 10,741.800 4,088.114 26,870,696 34.588.339 7.717,643 _ — — 7,681,192 6,679,393 1,001,799 6,064,052 6,408.023 (343,971) 6,503.155 6,817,043 (313,888) 1.792,600 798.918 993,682 10,140.800 7.660,837 2.479,963 451,896 382.075 69.821 7,994,115 4,909,366 3,084,749 _ _ — 1.397,686 1.190,679 207.007 — so3.000 (803,000� — sos.000 �sos,000� — 3,347,000 (3.347.000) — 3,347,000 (3,347,000) I 8,294,031 7,214,939 11.079.09 2 18,294,031 7.214,939 11.079.09 2 454,000 178.731 275,269 454,000 178,731 275.269 280,000 — 280,000 280,000 — 280,000 27,336,579 19.132.686 8,203,893 52,744,979 38,800,988 13.943,991 (20,682,893) (8.390.886) 12.292.007 (25,874,283) 4.212,649 21,661,634 5.080,000 12,225,376 7.145.376 5,600,000 12,904,052 7.304,052 (820,000) (1,769,870) (949,870) (820,000) (1,819.618) (999,618) — 15,100.000 15,100,000 — 15,100.000 15.100.000 — (6,755,100) (6,755.100) — (6,755.100) (6,755.100) 4,260,000 18.800,406 14.540.406 4,780,000 19,429.334 14.649,334 (16,422.893) 10,409.520 26.832.413 (21,094,283) 15.216,685 36.310,968 16.227.924 16.227.924 — 37,034.308 37.034.308 — E (194.969) S 26,637,444 S 26,832.413 S 15,940.025 S 52.250.993 S 36.310.968 _�_ � „`, CITY OF PALM DESERT �+ � STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUND I , For the year ended June 30, 1996 OPERATING REVENUES: Rental income 5 490J72 OPERATING EXPENSES: Administrative 45.528 Insurance Z.32Z Repairs and mainunance 36,816 Telephone 1,706 Trash disposal 3.521 Property taxes 46,163 Utilities 18.493 Depreciation 54,893 TOTAL OPERATING EXPENSES 209,442 OPERATING INCOME 281.330 NONOPERATING REVENUES(EXPENSES): Iuterest income 720 NET INCOME 282,050 RETAINED EARNINGS AT BEGINNING OF YEAR — RETAINED EARNINGS AT END OF YEAR S 282.050 See independent auditors' repott and notes m financial stauments. —8— r _ _ GENERAL PURPOSE FINANQAL STATEMEN'ls ' �r � CITY OF PALM I�ESERT COMBINED BALANCE SHEET—ALL FUNDTYPES AND ACCOUNT GROUPS June 30, 1996 (With comparative totals for June 30, 1995) Governmental Fund Types Special Debt Capiul ASSETS AND OTHEA DEBTTS Genenl Revenue Servia Prqect ASSE'CS Cash and investmen[s(Notes II and 2) S 19182.508 f 11.252.603 S 19.940.876 5 19.663.61 S Cash with fiscal agent(Notts 2 and 7) — 1.110,763 41.290.366 43,040212 Receivables(Note 3) 3,104.030 3.6'72.730 142.368 7.415.528 Due from other funda(Note 4) 12.084 — 5,433.959 — Assessments reaivable(Note 14) — — 42.290,5'75 — Invenmry held br resak(Notea ILand 6D) — 10.950.000 — — Advarces toother funds(Notes 4 and 6B) 5,581.000 654,000 — 12,765.000 Depoaits 298 — — 275.000 Prepaid expemes 493.867 — fi,090 341 Fixed assets(Pmprietary fund is ne[of of ucumulated depraiationof f50.893)(Note 5) — — — — � OTHER DEBITS: � Amoun[available in deb[serv're fuod�(Nae 9) — — — — Amount tobe provided for paymentaf long—term debt — — — — 'fOTAI.ASSEI'S AND O'IHER DEBICS S 28.474,187 S 27.640.096 S 109.104236 S 83.159.696 LIABILCCIES,EQUITY AND OTHER CREDTI'S LIABILITIES: Accounta psyable E 2.721.327 f 990,168 S 56.718 E 2.836,721 Accrued liabilitiu 139,311 — — 11.864 Due toother funds(Note 4) — 12,484 32.599 5.401.360 Depails pry�ble(Nole 8) . — — 9,236,868 225.000 Deferred revenue(Note 14) — — Q,290,575 — De(crred�ompensationpayable(Note'� — — — — Geneul bng—term debt(Note 6) — — — — 2'OTAL LIABIISC[ES 2.860.638 1,002,652 51.616.760 8.177.915 EQUITY AND O'IHER CREDITS: Contributed capital(Nae 1'n — — — — Invmtment in gemnl fiad as�eU — — — — Retained eirnin`s: Unreserved — — — — Fund balances: Reaerved(Note 12) 10,435.568 20242,636 16.115.742 28.980,528 Unreserved—detignated(Note12) 15.177.981 6.394.808 41.371J34 45,701223 TOTAL EQUIIY AND OTHER CREDITS 25.613.519 26.63'7.�H 57,{87,476 74,661,751 TOTAL L[ABILITIES.EQUI'1'Y ANDO7}IERCREDCCS E 28.474,187 -f 27.640.096 f ]09.104236 E 83.159.696 See independent auditors' report and notes to financial statements. —Z— CITY OF PALM DESERT STATEMENT OF CASH FLOWS ENTERPRISE FUND For the year ended June 30. 1996 CASH FLOWS FROM OPERATINGACTIVITIES: Operating income S 281,330 Adjustments to reconcile operatiag income to net cash provided by operating activities: Depreciation 54,893 Changes in operating assets and liabilities: Increase in deposit 27.099 Total adjustments 81,992 NET CASH PROVIDED BY OPERATINGACTIVTl'IES 363,322 CASH FLOWS USED BY CAPITAL AND RELATED FINANCING ACTIVTTIES: Acquisition ofcapital assets (65,152) ti CASA FLOWS FROM INVESTING ACTIVITIES: � Interest income 720 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR — � CASH AND CASH EQUIVALENTS AT END OF YEAR S 298,890 Noncash items included contribution of capital assets in the amount of 53,670,000. See independent auditors' report and notes to financial stauments. -9- �► _ _. NOrI'ES TO FINANQAL STATEMENTS T ^ CITY OF PALM DESERT NOTES 'P0 FINANCIAL STATEMENTS June 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A: Description of the RepoRing Entiry: The financial statements of the Ciry of Palm Desert includes the Financial activities of the City, the Palm Desert Redevelopment Agency and the Palm Desert Financing Authoriry. The City of Palm Desert was incorporated on Nwember 26, 1973 as a General Law City. The City operates under a Council-Manager form of government and provides the following services: public safery (police and fire), }righweys and streets, sanitation, public unpnovements, community development (planning, building and zoning) and general administrative services. The Palm Desert Redevelopment Agency (the Agency) was established October 24, 1974, pursuant to California Health and Safery Code Section 33000 entided "Community Redevelopment Law". The purpose of the Agency is to prepaze and e�cute plans for the improvement, rehabilitation and redevelopment of blighted areas within the limits of the City. The Palm Desert Financing Authority (the Authority) was formed on January 26, 1989. The purpose of the Authority is to issue debt and loan the proceeds to the Agency and the City. The criteria used in determining the scope of the reporting endty are based on the prrnisions of Governmental Accounting Standards Boazd Statement 14. The City of Palm Desert is the primary government unit. Component units are those entities wirich are financially accountable to the primary gwernment, either because the City appoinu a voting majority of the component uniYs board, or because rhe component unit will pmvide a financial benefit or unpose a financial burden on the City. The City has accounted for the Agency and Authority as "blended" component uniu. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City's operations. Accordingly, the balances and uansactions of these component units are reported within the funds of the City. Accounts for the Agency are reported in separate funds in the Special Revenue, Debt Service and Capital Pmject Fund Types. The Authority transactions are reported in separate Debt Service funds. See independent auditors' report. -ia -- �� � CITY OF PALM DESERT `�d NOrI'ES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGI�iIFICANT ACCOUNTING POLICIES (CONTINUED): B. Fund Accounting: The accounts of the Ciry are otganized on the basis of funds and account gmups, each of which is considered a sepazate accounting entity. The operations of each fund are accounted for with a sepazate set of self-balancing accounts that comprise iu assets, liabilities, fund equiry, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are co be spent a� the means by which spending activides are controlled. 1'he City maintains the following fund rypes. Governmental Fund Types: General Fund - The General Fund is the general openting fiuui of the City. It is used to account for all financial resources except those required to be accounted for in another fund. S�eciai Revenue Funds - Special Revenue Funds are used to account forthe proceeds oF specific revenue resources (other than major capital pmjects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for ffie accumulation of resources for, and the payment of, general long-term obligation principal, interest and related costs. C�a ital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Proprietary Fund Type: Enterorise Fund - The Enterprise Fund is used to maintain accountability of assets, liabilities, revenues and expenses related to a commercial building owned by the Agency. Fiduciary Fnnd Type: A�+encv Funds - Agency Funds are used to account for assets held by the City in an agency capacity for individuals, private oiganizations, other governments and/or other funds. Agency Funds are custodial in nature (assecs equal liabilities) and do not imroive measurement of results of operations. See independent auditois' report. -11- I ^ CITY OF PALM DESERT N�I'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGIJIFICANT ACCOUNTING POLICIES (CONTINUED): A. Fund Accounting (Continued): Account Groups: Account groups are used to establish control and accountability for the City's general fixed assets and gemeral long-term debt. The following are the Ciry's .qccount Groups. General Fixed Asset Account Groun - Fixed assets of the City other than those accounted for in the Proprietary Fund Type aze accounted for in the General Fixed Asset Account Gmup. General I.one-Term Debt Account Group - Long-term liabilities, including the ; long-term portion of vested compensated absences expected to be financed by ' governa►ental funds, are accounted for in the General Long Term Debt Account Group. } C. Basis of Accounting: Governmentai fund types are accounted for using the modified accrual basis of j accounting. Generally, revenues are recognized when they become "susceptible to ' accrual", that is, measurable and available to finance expendinues of the current � period. Revenues wluch are susceptible to accrual inciude pmperty taxes and special assessments that are levied for and due for the fiscal yeaz and collected within 60 days after year-end. Licenses, permits, fi�s, forfeiu, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not ge�rally measurable until actually received. In ; accordance with Gwetnment Accounting Standatds Board (GASB) Statement No. 22, revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the " accounting period in which they became both measurable and available to finance ^. expendittues of the fiscal period as discussed below. Grant funds and reimbursements 3 of expenses under conu�actual agceements are ieported in governmental fund types and 1 are cecorded as a receivable when earned rather than when susceptible to accnial. ; Ge�rally, this occurs when authorized expenditures are made under the grant program `, or contractual agreement. Expenditures are recognized when the fund liability is i incurred, if ineasurable, except for uncnatured interest on general long-tcrm debt, which � is recognized when due. i i II See independent auditors' report. �II I , -12- � v�.r CITY OF PALM DESERTr+ NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): C. Basis of Accounting (Continued): The accrual basis of accounting is follo�ed by the proprietary fund. Revenues are recognized when they are eamed and expenses are recognized when the liability is incurred. In accordance with GASB Statement No. 20, for Proprietary Fund accounting, the City applies all applicable GASB pronouncements as well as the following pmnouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB Pronouncements: Financial Accounting Standazds Board Statements and Interpretauons, Accounting Principles Boazd Opinions, and Accounting Research Bulletins of the Commit�e on Accounting Procedures. Agency fund types are accounted for on the modified accrual basis of accounting. Agency type funds are purely custodial in nature (assets equal liabilities) and thus do not imolve measurement of results of operadons. D. Measurement Focus: All go�rnmental funds and the expendable ttust fund are accounted for on a spending or "financial flow" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets, with the exception that the noncurrent portion of long-term ieceivables due to governmental funds are reported on their balance sheets, offset by fund balance reserve accounts. Statements of revenue, expenditures and changes in fund bala�es for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net cucrent assets. The proprjetazy fund is accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with the activity are included on the balance sheets. Their reported fund equity pcesents total net assets. Proprietary fund operating statements present increascs (reveirues) a� decreases (expenses) in total net assets. See independent auditors' report. -13- T— ^ CITY OF PALM DESERT ^ NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGNIFICANT AICCOUNTING POLICIES (CONTINUED): i E. Fixed Assets: I General fixed assets are not capitalized in the fund used to acquire or construct them. Instead, capital acquisition and construction costs are reported as expenditures in governmental fund types, and the related assets are reported in the Generai Fixed Assets Account Group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no 6istorical records exist. Donated fized assets are valued at their estimated fair muket value on the date received. Genenl fixed assets acquired by capital lease are recorded as expenditures and other financing sources in the acquiring governmental fund. These obligations are then reflected in the general fixed asscts and long-term debt account groups. Public domain ("infrastructure") general fued assets consisting of roads, bridges, curbs and gutters, streets and sidewdlks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. Assets in the Genenl Fixed Assets Account Group are not depreciated. Fixed assets purchased by proprietary fund type is capitalized at historical cost, while contributed assets are recorded at fair market value on the date donated. Depreciation is charged to operadons using a straight-line method, based on the average useful life of the asset. The estimated useful life of the building is 40 yeazs. F. Budget and Budgetary Accounting: The City uses the follawing procedures in establishing the budgetary data reported in the financial statements: 1. Before the beginning of the fiscal year the City Manager submits to the City Council a proposed budget for the year commencing the following July 1. 2. Public heazings are conducted to obtain taxpayer comments. 3. The budget is subsequently adopted through passage of a resolution. 4. Original appropriations are mod�ed by supplementary appropriations and transfers among budget categories. The City Council approves all significant changes. Annual appropriation amounts lapse at year end. See independent auditors' report. -14- CITY OF PALM DESERT � `.r � NO�l'ES 'P� FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIG1vIFICANT ACCOUNTING POLICIES (CONTINUED): F. Budget and Budgetary Accounting (Continued): 5. Encumbrances and continuing appropriations are rebudgeted as of July 1 by Council action. 6. Formal budgetary integration is employed as a management control device during the year for the Ge�ral, Special Revenue and Capital Project Funds. Formal budgetary integration is not emplcryed for Debt Service Funds because effecrive budgetary control is alternatively achieved through debt indenture provisions. 7. Budgets for General and Special Revenue Funds are adopted on a basis consistent with ge�raily accepted accounting principles. Budgetary data for Capital Project Funds is not presented herein, as such data is long-term in nature. G. Appropriations Limit: Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiauve), the City is restricted as to ffie amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the ta�cpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal yeaz ended June 30, 1996, proceeds of t�es did not exceed appropriations. H. Encumbrances: Encumbrance accounting, under which punchase o�ers, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriadon, is employed as an extension of formal budgetary integiation in the Governmental Fund Types. Encumbrances outstanding at yeaz-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. See independent auditors' report. -15- ^ CITY OF PALM DESERT NOTES TO FINANCIAL STATEMENTS (CONTINUED) � June 30, 1996 � 1. SUMMARY OF SIGI�IIFICANT ACCOUNTTNG POLICIES (CONTINUED): I. Invesunents: Investments are stated at cost, except that imestments cecorded in the Deferred Compensation Plan reported at market value. If market values decline below cost, no loss is recorded if such declines are considered tempordry. The City's policy is to hold investments until maturity, or until market value exceeds costs. However, if the liquidity needs of the City were to require that imestments be sold at a loss subsequent to year end, the decline in value would be recorded as a loss at year end. The City considers all highly liquid investments with a maturity of thtee months or less when purchased and all funds held in its commingled pool that are available to it and have the ge�ral chatacteristics of demand deposit accounts to be cash equivalents for purposes of the statement of cash flows. J. Employee Compensated Absences: It is the governmenYs policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). Vacation pay and sick leave which is expected to be liquidated with expendable available resources is reported as an expenditure and liabiliry of ihe goveramental fund that will pay it. Compensated absences in the amount of $915,761 which are not expected to be liquidated with expendable available financial resources are reported in the General L.ong Term Debt Account Group. K. Comparative Data: Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to iead. L. Inventory Held for Resale: T'he Agency punchased housing units wiUrin the Agency's pmject azea. The cost of agency pmperties held for resale are capitalized in the Redevelopment Agency Special Revenue Fund as im�entory, at the lower of acquisition cost or �t realizable value. At June 30, 1996, the cost of the irnentory was $14,608,321, with an allowance for decline in value of irnentory held for iesale in the amount of $3,118,321, for a net atnount of $10,950,000. See independent auditocs' ieport. -16- I �. CITY OF PALM DESERT �r rlprl'ES TO FINANCIAL STATEMENTS (CONTINUED) June 3Q 1996 1. SUMMARY OF SIGAiIFIGAIVT ACCOUNTING POLICIES (CONTINUED): M. Total Columns on Combined Statements: Totai columns on the Combined Statements are captioned "Totals Memorendum Only" w indicate that they are presented only to facilitate financial analysis. Data in these columns is not comparable to a consolidation. Interfund eluninations have not been made in the aggregarion of this data. N. Property Tax Calendar: Property taxes are assessed and collected each fiscal yeaz according to the following property tax calendar: Lien date March 1 I.evy date July 1 to Ju� 30 Due date November 1 - lst installment, March 1 - 2nd installment Delinquent date December 10 - lst installment, April 10 - 2nd installment Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases appraved by the voters. The properry taxes go into a pool, and are then allocated to the cities based on complex formulas prescribed by state statutes. 2. CASH AND INVESTMENTS: The Ciry of Palm Desert maintains a cash and imestment pool that is available for use for all funds. Each fund rype's posidon in the pool is reported on the combined balance sheet as cash and imesunents. The City has�adopted an imestment policy which authorizes it to invest in the following investments: A. United States Treasury Bills, Bonds and Notes B. Obligations issued by United Staus Gwernment Agencies such as, but not limited to, the Gavernment Nationai Mortgage Association (GNMA), the Federal Farm Credit Bank (FFCB), the F�ederal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), the Student Loan Marketing Association (SLMA) and the 'Ibnnessee Valley Authority (TVA). See independent auditors' report. -17- � CITY OF PALM DESERT NOrI'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 2. CASH AND INVESTMENTS (CONTINUED): C. Bankers acceptances D. Commecoial paper E. Medium term notes F. Local Agency Imestment Fund G. "Shares of beneficial interest" issued by di�rsified management companies which invest only in d'uect obligations in United States Treasury Bills, Notes and Bonds, and repurchase agreements with a weighttd average of 60 days or less. Classification of Deposits and Imestments by Credit Risk: Gwernmental Accounting Standards Board Statement 3 requires that deposits and imestments be classified into thiee categories of credit risk. Theses categories are as follows: DEPOSITS: Category 1 - Deposits which are insured by ffie FDIC. Category 2 - Deposits which are collateralized. The Califoraia Gwernment Code requires California banks and savings and loan associations to secure a Ciry's deposits by pledging government securities with a value of 110� of the deposits. California law also allows financial insritutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral cequirement for deposits which are fully insured up to $100,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as a third-party trustee. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agenu of Depository are considered to be heid for, and in the name of, the local govemmental agency. Category 3 - Deposits which are uninc�r�d or uncollateralized. See independent auditors' report. _lg_ '' CITY OF PALM DESERT � � NOrI'ES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 2. CASH AND INVESTMENTS (CONTINUED): Classification of Deposits and Investments by Credit Risk (Continued): INVESTMENTS: Category 1 - Imestments which are insured by the Securities Investors Pmtection Corporation (SIPC), or imestments which are held in defuutive (i.e. physicai) form by the Ciry or the City's agent in the City's name, or investments acquired through the federal reserve book-entry system where the financial institution or broker/dealer associated with the putchases is separate from the custodiat safekeeping agent on the same imestments and where the imestments are cecorded on the books and records of the financiai institution or broker/dealer in the name of the City. Category 2 - Imestments which are un�n��*Pd, whem the investments are acqu'ued through a financial institution's imesiment or uading deparm�►ent, but are held in the same financial institution's trust department and are recorded in the City's name in the trust deparomenYs systems and records. Category 3 - Investments which are uninsured, 1) where the imestments are acquired through a financial institution's irnestment department but are held for custodial purposes in the same financial institution's safekeeping department, or 2) where the investments are acquired through a financial institution's trust department, and held for custodial safekeeping by the same trust depamnent, or 3) where the imestments are acquired through, and held for safekeeping by, the same broker/dealer or 4) where imestments are not held in the City's name in the systems and records of the financial institution or bmker/dealer. See independent auditots' report. -19- CITY OF PALM DESERT N0�1'ES 'PD FINANCIAL STATEMENTS � (CONTINUED) June 30, 1996 2. CASH AND INVESTMENTS (CONTINUED): Deposits and imestments were categoriud as follows at June 30, 1996 Catecory Bank Cazrying Deposits: 1 2 3 Balances Amount Demand accounts $ 100.000 $2,855,736 $ - $ 2,955,736 $ 1,033,446 Certificates of deposit 100.000 2.400.000 - 2.500.000 2.500.000 $ 200.000 5 2 5 7 6 $ - $ 5.455.736 3.533.446 Not Requited Category to be Contractual/ Investments: 1 2 3 Cate oy�riud Market Value U.S. Treasury Nous $ 29,616,455 $ - S - S - 29,616,455 $ 29,685,512 U.S. Treasury Notes - secured strips 1,003,938 - - - 1,003,938 1,125,140 FHLMC 2,466,842 - - - 2,466,842 2,466,842 FNMA 4,931,800 - - - 4,931,800 4,931,800 Held by fiscal agent U.S. Govemment Securities 71,530,876 - - - 71,530,876 71,627,792 Mutual Funds - - - 13,910,468 13,910,468 13,910,468 Deferred compensation - - - 2,897,015 2,897,015 2,897,015 California Local ABen�Y Invesanent Fund 30.145.392 30.145392 30.145392 $ 109.549.911 - S - S 46.952.875 156.502.786 �156.789.961 Petty cash 1.600 'DD�fAL CARRYING AMOUNT(BOOK BALANCES) $160.037.832 Cash and irnescments aze reported in the accompanying combined balance sheet as follows: Cash and irnestrnents $ 71,699,476 Cash with fiscal agents 88338356 $160.037.832 See independent auditocs' report. -20. 7 � CITY OF PALM DESERT�, N�1'ES TO FINANCIAL STATEMENTS (CONTINUED) � June 30, 1996 2. CASH AND INVESTMENTS (CONTINUED): Investments Not Subject to Categorization: Invesunents in the California Local Agency Imestrnent Fund (LAIF) are not categorized, as GASB 3 dces not require categorization of investment pools managed by another grnemment. Also, investments of the Deferred Compensation Plan are not categorized, because the underlying assets of these fi�s consist primarily of guaranteed investment contracts (GICs) issued by insurance companies annuity contracts or open-ended mutual ', funds. All such imestments are not required to be categorized under incerpretive � guidelines issued by the GASB. Locai Agency Imestment Fund (LAIF): The LAIF is a special fund of the California State Treasury through which local governmenu may pool investments. Fach city may imest up to $20,000,000 each in the Fund for the city and redevelopment agency and may also imest without limitation in �' special bond proceeds accounts. At June 30, 1996, the total market value of LAIF was $26,851,615,144. The City's pmportionate share of that value is $30,224,659. ; Investments in LAIF are highly liquid, as deposits can be converted to cash within i twenty-four hours without loss of interest. Included in LAIF's investment portfolio are ' certain derivative securities or similaz products such as structured notes totalling � $1,100,720,000 and asset-backed securities totalling $313,945,000. LAIF's, and the City's, exposure to credit, market or legal risk is not available. 3. RECEIVABLES: a Receivables consisted of the following at June 30, 1996: - Special Debt Capital General Revenue Service Pmject Fund Funds Fun Funds Totals i Accounts $ 6H6,379 $ 711,041 $ - $ 102,021 $ 1,499,441 . Interest 486,334 1,569 24,617 829,360 1,341,880 Other Gwemment Agencies 1,866,317 1,391,755 117,751 6,484,147 9,859,970 . ��s 65.000 1.568365 - 1.633.365 104 030 72 730 14 368 7 415 52 14 334 6 6 See independent auditocs' report. 21 — CITY OF PALM DESERT ' NOTES 'PD FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 � f 4. INTERFUND RECEIVABLE5 AND PAYABLES: Interfund receivables and payables at June 30, 1996 were as follows: Due From Due To Fund Other Funds Other Funds General Fund $ 12,484 $ - Special Revenue Funds: Communiry Development 11,828 Landscape and Lighting District #8 - 656 Debt Service Funds: Assessment District 83-1 1,066 - ! Assessment District 84-1 - Refunding 7,484 - Assessment District 87-1 2,722 - CFD Indian Ridge (1992) 21,327 - Redevelopment 5,401,360 - CFD Indian Ridge- 1995 - 21,327 j Financing Authority - City - 11,272 � Capital Projects Fund: � Redevelopment Agency - 5.401360 ;{ $ 5.446.443 $ 5.446.443 i , Advances To Advances Fmm Other Funds Other Funds General $ 5,581,000 $ - � Special Revenue Fund: New constiuction tax 654,000 - Capital Ptoject Funds: Capital Pmject Reserve 8,000,000 - Park and Recreation Facilities 4,765,000 - e General L.ong Term Debt � Account Group (see Note 6B) - 19.000.000 ' $ 19.000.000 $ 19.000.000 j See independent auditois' report. ` I iI -22- f r,�,,. CITY OF PALM DESERI� � NQrI'ES 'P� FINANCIAL STATEMENI'S (CONTINUED) June 30, 1996 5. FIXED ASSE1'S: A summary of changes in Fixed Assets at June 30, 1996 is as follows: General Fixed Assets Balance at Balance at June 30. 1995 Additions Deletions June 30. 1996 Land $ 52,679,569 $ 3,843,818 $ 777 $ 56,522,610 Building 15,387,106 8,469,183 - 23,856,289 Improvements 12,006,46'7 584,081 - 12,590,548 Equipment 3,087,742 332,988 277,122 3,143,608 Construction in progress 4.831.652 5.159.212 4.846.521 5.144343 Total � 87.992.536 $ 18.389.282 $ 5_�12�0 $ 10�2g� Enterprise Fund Balance at Balance at � June 30. 1995 Additions Deletions June 30. 1996 Building $ - $ 3,670,000 $ - $ 3,670,000 Improvements - 65152 - 65.152 Total - 3,735,152 - 3,735,152 I.ess accumulated depreciation - (54.8931 - (54.893) - $ - $ 3.680.259 $ - $ 3.680.259 See independent auditois' report. ; i I -23- ^ CITY OF PALM DESERT NOR'ES TO FINANCIAL STATEMENTS j (CONTINUED) I June 30, 1996 (. GENERAL LONG TERM DEST: The changes in the General I,ong Term Debt for the year ended June 30, 1996 were as follows: Balance at Balance at Julv 1. 1995 Additions Pavments June 30. 1996 Compensated absences $ 548,454 $ 67,307 $ - $ 915,761 Advances from other funds 19,000,000 - - 19,000,000 Tax Allocation Bonds 147,630,000 6,305,000 8,120,000 145,815,000 1994 MultiFamily Housing Revenue Bonds - 15,100,000 - 15,100,000 Special Assessment Bonds 33.822.000 19.925.000 10.190.000 43.557.000 Total $ 201300.454 S 41.397.307 $ 18310.000 S 224.357.761 A. Compensated Absences Payable: There is no fixed payment schedule to pay the governmental fund rypes' ouutanding liability for compensated absences eazned at June 30, 1996 of $915,761. B. Advances From Other Funds: ' The Redevelopment Agency has received advances from the City which have been recorded as an "Other Financing Souizes" in the Agency's Capital Project Funds. Since payment by the Agency back to the City will be made from tax increment revern►es in future years, the debt from the Agency to the Ciry has been classified in the Long-Term Debt Account Group. Below is a summary of the aciiviry for the advances from the City to the Redevelopment Agency: Balance Balance Date of Rates of Amount July 1, June 30, Issue Interest Authorized 1995 Additions Retirements 1996 12/05/S6 Vazies $6,000,000 $ 6,000,000 $ - $ - $ 6,000,000 09/23/94 Varies 5,000,000 5,000,000 - - 5,000,000 03/23/95 Vazies 8,000,000 8.000.000 - - 8.000.000 Principal Balance 19,000,000 - - 19,000,000 Acccued Interest 1.085.340 1.085.340 - $19.000.000 1 085 340 1 0 5 340 $19.000.000 See independent auditors' report. -24 CITY OF PALM DESERT � `�r' `�/ NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG-TERM DEBT (CONTINUED): C. Tax Allocation Bonds: Tax Allocation bonds are special obligations of the Agency and the Financing Authority, (a component unit of the Agency) and are secured by an irrevocable pledge of tax revenues and other funds as provided under the Bond Resolution. The Bonds, and any interest thereon are not a debt of the City, the State of California or any of its political subdivisions and neither the City, the State of California nor any of iu political subdivisions is liable on the Bonds, nor in any event shall the Bonds, and interest thereon be payable out of any funds or properties other than those provided under the Bond Resolution. 1995 Series Tax Allocation Re�nue Bonds (Pmiect Area No Il In June 1995, the Pdlm Desert Financing Authority issued $24,025,000 of Tax Allocation Bonds, (Pmject Aiea No. 1) Series 1995. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to finance certain redevelopment activities of the Agency in Project Atea No. 1. Inrerest rates on the bonds vary from 4.0% W 5.2� per annum payable semiannually on April 1 and October i with ptincipal maturing annually. The future debt service requirements on the 1995 Series Tax Allocation Revenue Bonds (Project Area No. 1) are as follows: Year Ending June 30. Principal Interest Total 1997 $ 160,000 $ 1,403,818 $ 1,563,818 1998 170,000 1,396,778 1,566,778 2999 180,000 1,388,873 1,568,873 2000 185,000 1,3 80,323 1,565,323 2001 195,000 1,371,350 1,566,350 Thereafter 23.135.000 21.125.665 44.260.665 $ 24.025.000 $ 28.066.807 $ 52.091.807 See independent auditors' report. -25- CITY OF PALM DESERT — NOTES 'PO FINANCIAL STATEMENTS ' (CONTINUED) I ' June 30, 1996 , 6. GENERAL LONG TERM DESf (CONTINUED): C. Tax Allocadon Bonds (Continued): 1995 Series Tax Allocation Revenue Bonds lProject Atea No. 21 In June 1995, the Palm Desert Financing Authority issued $4,090,000 of Tax Allocation Bonds, (Project Acea No. 2) Series 1995. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to finance certain redevelopment activities of the Agency in Project Atea No, 2. Interest rates on the bonds vary from 4.75% to 5.2% per annum payable semi-annually on February 1 and August i with principal maturing annually on August 1. The future debt service requirements on the 1995 Series Tax Allocation Revenue Bonds (Project Aiea No. 2) are as follows: Year Ending Ju� 30 Principal Interest Total 1997 $ - $ 239,935 $ 239,935 1998 - 239,935 239,935 1999 - 239,935 239,935 2000 25,000 239,342 264,342 2001 30,000 238,020 268,020 Thereafter 4.035.000 3.771.435 7.806.435 $ 4.090.000 $ 4.968.602 $ 9.058.602 ; See independent auditors' report. _2� � rr CITY OF PALM DESER'I�►` NOTES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG-TERM DEBT (CONTINUED): C. Tax Allocation Bonds (Continued): 1992 Series A Tax Allocation Revenue Bonds fProiect Aiea No 1 as Amendedl In April 1992, the Palm Desert Financing Authority issued $100,000,000 in Palm Desert Financing Authority 'I�x Allocaaon Revenue Bonds (Project Acea No. 1 as Amended) 1992 Series A. The Authority loaned $42,764,702 of the $100,000,000 to the Agency to advance refund the 1985 Tax Allocadon Bonds, 1985 Tax Allocation Refunding Bonds and the 1989 T� Allocation Bonds. The Authority also loaned $40,844,733 to the Redevelopment Agency to fund additional projects in the project area. The remaining bonds are compriscd of$15,965,000 of "CurcEnt Interest Bonds", $39,350,000 of Duuh Auction Floating Securities and $39,350,000 of Inverse Floating Securities. Principal maturities on the Ctirrent Interest Bonds occur annually on April 1. Interest on the Current Interest Bonds varies from 4.00% to 6.625% and is payable semiannually on April 1 and October 1. Dutch Auction Floating Securities and Imerse Floating Securities mature each April 1 through 2022. Interest on the Dutch Auction Floating Securities and Imerse Floating Securities is due generally every 35 days from that date. The future estimated debt service requiremenu on the 1992 Series A Tax Allocation Revenue Bonds (Pmject Area No. 1 as Amended) are as follows: Yeaz Endiag June 30. Princinal Interest Total 1997 $ 1,580,000 $ 5,777,751 $ 7,357,751 1998 1,670,000 6,170,479 7,840,479 1999 1,760,000 5;595,557 7,355,557 2000 1,860,000 5,974,935 7,834,935 2001 1,975,000 5,385,743 7,360,743 Thereafter 85.820.000 71.670.610 157.490.610 $ 94.665.000 $100.575.075 $195.240.075 See independent auditors' report. _27_ — CITY OF PALM DESERT N�I'ES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG TERM DEBT (CONTINUED): I C. Tax Allocation Bonds (Continued): i 1992 Series A Tax Allocation Revenue Bonds (Pmject Acea 21 i In August 1992, the Palm Desert Financing Authority issued $17,505,000 of Tax Allocation Bonds, (Project Atea No. 2) 1992 Series A. The Authority loaned the bond j proceeds to the Agency to finance certain redevelopment acdvities of the Agency in Project Atea No. 2. Interest rates on the bonds vary from 2.7% to 6.125% per annum payable semiannually on Febtuary 1 and August 1 with principal maturing annually on August 1 from 1993 to 2002. The future debt service requirements on the 1992 Series A 'I'ax Allocation Revenue Bonds (Project Area No. 2) are as follows: Yeaz Ending June 30. Princival Interest Total 1997 $ 280>000 $ 992,462 $ 1,272,462 � 1998 290,000 979,988 1,269,988 1999 300,000 966,337 1,266,337 2000 315,000 951,338 1,266,338 2001 335,000 934,753 1,269,753 Thereafter 15.210.000 12.406.538 27.616.538 $ 16.730.000 $ 17.231.416 $ 33.961.416 See independent auditors' report. ' -28- CITY OF PALM DESERT � � � N�fES TO FINANCIAL STATEMENTS (CONTINUED) 7une 30, 1996 6. GENERAL LONG-TERM DF.BT (CONTINUED): C. Tax Allocation Bonds (Continued): 1995 Series A - Tax Allocadon Revenue Refunding Bonds In August 1995, the Pdlm Desert Financing Authority issued $6,305,000 in Tax Allocation Revenue Refunding Bonds 1995 Series A. The proceeds from the tax allocation bonds were loaned to the Agency to provide funds to refund in advance $6,430,000 of the 1988 Tax Allocation Bonds. The advance refunding resulted in an economic gain of $907,760 (difference between the present value of the annual debt service payments between the old debt and new debt) and a decrease in aggregatc debt service payments of $1,441,052. Interest rates on the Bonds vary from 3.80� to 5.55% with interest payable semi-annually on March 1 and September 1 with pri�ipal man,n� annually on September 1. Debt service requirements to maturity are as follows: Yeaz Ending June 30. Principal Inurest__ Total 1997 $ 350,000 $ 300,208 $ 650,208 1998 385,000 285,858 670,858 1999 400,000 269,758 669,758 2000 420,000 252,223 672,223 2001 435,000 233,300 668,300 Thereafter 4.315.000 977.971 5.292.971 $ 6.305.000 � 2319.318 $ 8.624318 See independent auditors' report. 29 CITY OF PALM DESERT ~ N�1'FS TO FINANCIAL STATEMENTS (CONTINUED) � June 30, 1996 i I 6. GENERAL LONG-TERM DEBT (CONTINUED): ' C. Tax Allocation Bonds (Continued): Below is a summary of the changes in Tax Allocauon Bonds/Housing Revenue Bonds: � Balance at Batance at Julv 1. 1995 Additions Pavmena June 30. 1996 1995 Tdx Allocadon Bonds (Pmject Area No.l) S 24,025.00o a - a - a 24,025.000 1995 Tax Allacadon ' Bonds (Project Area ' No.2) 4,090,000 - - 4,090,000 1992 Tax Allocadon Bonds (Pmjec[Aroa No.l as Amended) 96,090,000 • 1,425,000 94,665,000 1992 Tu Allocation Bonds (Project Area No.2) 16,995,000 - 265,000 16,730,000 1988 Tax Allocadon BoMs 6,430,000 - 6,430,000 - 1995 Refunding Tax Allocadon Bonds 6305.000 6305.000 S 147.630.000 3 6.305.000 S 8.120.000 E 145.815.000 D. 1994 Multifamily Housing Revemie Bonds: In August ,1994, the Palm Desert Redeuelopment Age�y issued $15,100,000 in Vaziable Rate Demand 1994 Multifamily Housing Revenue Bonds (Bonds). The Agency issued the bonds to finance a loan to Civic Center Barrio Housing Corporation (Corporation), a California Non-Pnofit Public Benefit Corporation. Putsvant to a financing agreement between the Agency and the Corporation dated August 1, 1994, the Agency loaned funds to provide permanent fmancing for 161 newly constructed residences and related improvemenu in the City of Palm Desert to be owned by the Corporation and sold or leased, with an option to pu�hase, to low and moderate income persons and families. At the time of the issuance of the Bonds, it was anticipated that approximately one-half of the residences wvuld be sold within 24 months from the issuance of the bonds and that the proceeds of the sales would be used to redeem the Bonds. It was also anticipated that all homes wuuld be sold within 6 years and that all the Bonds wvuld be redeemed. See independent auditots' ceport. ' -sa _. r "r` CITY OF PALM DESERT �+' N�fES 'P� FINANCIAL STRTEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG TERM DEBT (CONTINUED): D. 1994 Multifamily Housing Revenue Bonds (Continued): The Bonds are secured by a letter of credit which expu+es six yeazs from the date of the issuance of the Bonds with up to two one-year eztensions exercisable by the borrower at the credit bank's sole and absolute discredon. The Bonds are issued in denominations of$100,000 or any integral multiple thereof for Bonds bearing interest at the variabie rate and in denominations of $5,000 or any integral multiple thereof for Bonds on wluch the interest is converted to a fixed rate. The Bonds mature on August 1, 2000 and are subject to prior redemption. Interest on the variable rate Bonds is payable on the second 'hiesday of each month commencing September 13, 1994 and February 1 and August 1 of each year on the Bonds which convert to a fixed rate. In April 1996, the Agency acquired ffie assets (the 161 homes) and assumed liabiliry for the $15,100,000 1994 Multifamily Housing Revenue Bonds as the project was not being administered properly. E. Special Assessment Bonds Payable: The City has Special Assessment Bonds Payable issued under the 1911 and 1915 Special Improvement Acu and the 1982 MellaRoos Community Facilities Act (1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been collected from the properry owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not tecorded as liabilities in the accompanying financial statemenu. The City also 6as no liability to the 1915 Act bondholders or the bondholders of bonds issued under the 1982 Me1lo-Roos Community Facilities Act until assessments are collected on the tax rolls. However, tbe City may take certain actions to assume secondary liabiliry for all or part of 1915 Act Bonds and the 1982 bonds until such time as foteclosure proceeding are consummated. Assessments collected on the 1915 Act Bonds and the 1982 Bonds will be recorded as liabilities in Debt Service Fuads pursuant to the Govemmental ticcounting Standards Board Statement relating to Accounting and Financial Reporting for Special Assessments. Speciai assessment bonds payable, as described below, are recorded in the General Long-Term Debt Account Group, as the City is obligated as a secondary source of funds for repayment in the event of default by the assessed properry owners. See independent auditors' report. -31- � CITY OF PALM DESERT N�I'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 I 6. GENERAL LONG TERM DEBT (CONTINUED): i E. Special Assessment Bonds Payable (Continued): i ! Assessment District No. 92 - 1 � ' The bonds were issued in an original amount of $2,298,980 in December, 1992 to ! finance the acquisition of water, sewer and street improvements associated with the Sierranova residential development. The bonds are secured by unpaid assessments on certain parcels within Assesstment District No. 92 - 1 which was created by the City specifically to finance the Project. Under the 1915 Act, annual instailmenu of the i unpaid assessments su�cient to meet scheduled debt service on the bonds are to be included on the regular county tax bills for ihe assessed pazcels against which there are � unpaid assessments. Interest rates on the bonds vary from 4.70% to 7.60% with � interest payable semiannually on Mazch 2 and September 2 of each year with principal � maturing annually on September 2. Debt service requirements to maturity are as � � follows: Yeaz Ending �� June 30. Principal Interest Total ' 1997 $ 75,000 $ 155,506 $ 230,506 �, 1998 80,000 150,950 230,950 i 1999 85,000 145,915 230,915 2000 90,000 140,400 230,400 2001 95,000 134,385 229,385 Thereafter 1.760.000 913.686 2.673.686 i $ 2.185.000 $ 1.640.842 $ 3.825.842 � Communitv Facilities District No. 91-1 (1992 Bondsl � � The Bonds were issued in an original amount of $11,870,000 in July, 1992 pursuant to the Mello-Roos Communiry Facilities Act of 1982, as amended, to finance the acquisition, construction and installation of certain public improvemenu in the District. T'he debt service payments are payable from the proceeds of an annual special tax to be levied on and collected from properry vrithin the District. The special tax is to be levied according to annual rate approved by the City Council of the City of Palm I Desert. Interest rates on the bonds vary from 5.00°lo to 7.60� with interest payable April 1 and October 1 of each yeaz with principal maturing annually on October 1. Debt service requirements to maturity are as follows: See independent suditors' report. i -32- / „�, CITY OF PALM DESERT �, NOri'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG TERM DEBT (CONTINUED): E. Special Assessment Bonds Payable (Continued): Communitv Facilities District No. 91-1 (Continuedl Year Ending June 30. Princioal Interest Total 1997 $ 235,000 $ 835,361 $ 1,070,361 1998 250,000 821,105 1,071,105 1999 265,000 805,323 1,070,323 2000 280,000 787,942 1,067,942 2001 295,000 768,886 1,063,886 Thereafter 10.115.000 7.810.275 17.925.275 $ 11.440.000 $ 11.828.892 $ 23.268.892 Assessment District No. 94-1 The bonds were issued in an original amount of$6,945,000 in August 1994 to finance the design, acquisition and construction of ceRain public itnprovements for the benefit of Assessment District No. 94-1 (Bighorn). The bonds aze secured by unpaid assessments on parcels with the Assessment District 94-1 which wes created by the City specifically to finance the project. Under the 1915 Act, annual assessments of the unpaid assessments sufficient to meet the schedule debt service on the bonds are to be included on the regulaz county tax bills for the assessed parcels for which there are uvpaid 'assessments. Interest raus on the bonds vary from 5.20% to 7.625°k with inrerest payable semiannually on March 2 and September 2 of each yeaz with principal maturing annually on September 2. Debt service requiremenu to maruriry are as follows: Yeaz Ending June 30. Princ' a� I Interest _ Total 1997 $ 125,000 $ 478,876 $ 603,876 1998 125,000 472,064 597,064 1999 135,000 464,485 599,485 2000 140,000 456,199 596,199 2001 150,000 447,297 597,297 Thereafter 6.000.000 5.211.782 11.211.782 $ 6.675.000 $ 7.530.703 $ 14.205.703 See independent auditors' report. -33- CITY OF PALM DESERT N�fES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG-TERM DEBT (CONTTNUED): E. Special Assessment Bonds Payable (Continued): Assessment District No. 94-2 The bonds were issued in an original amount of $1,832,000 in December 1994 to finance the acquisition of certain public improvements with Assessment District No. 94-2 (Sunterrace) (the District). The bonds are secured by unpaid assessments on parcels with the District. Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the scheduled debt service requirements are to be included on the regulu county tax bills for the assessed parcels for which there are unpaid assessments. Interest rates on the bonds vary from 5.75� to 8.20� with interest payable semiannually on March 2 and September 2 of each yeaz with principal � maturing annually on September 2. Debt service requirements to maturity are as � follows: � Yeaz Ending IJune 30. Principal Interest Total � 1997 $ 47,000 $ 141,754 $ 188,754 : 1998 50,000 138,840 188,840 1999 55,000 135,421 190,421 2000 60,000 131,640 191,640 2001 65,000 127,555 192,555 Thereafter 1.555.000 1.046.512 2.601.512 $ 1.832.000 $ 1.721.722 $ 3.553.722 Assessment District 94-3 The bonds were issued in an original amount of $1,500,000 in May 1995 to finance the acquisition and consuucuon of certain public improvements within Assessment District No. 94-3 (Merano) (the District). The bonds are secured by uupaid assessments on parcels within the District. U�er the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the scheduled debt service requirements are to be included on the regulaz county tax bills for the assessed parcels for which there are unpaid assessments. Interest rates on the bonds vazy from 4.70% to 6.80% with interest payable semiannually on March 2 and September 2 with principal maturing annually on September 2. Debt service requiremenu to maturity are as follows: See independent auditors' report. -34- r � CITY OF PALM DESERT ,�, NOR'ES "I�D FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG-TERM DEBT (CONTINUED): E. Special Assessment Bonds Payable (Continued): Assessment District 94-3 (Continuedl Year Ending June 30. Princ� a� Interest Total 1997 $ 25,000 $ 97,626 $ 122,626 1998 30,000 97,032 127,032 1999 30,000 94,632 124,632 2000 30,000 92,945 122,945 2001 35,000 91,050 126,050 Thereafter 1.350.000 1.103.020 2.453.020 � 1.500.000 $ 1.576305 $ 3.076305 1995 Revenue Bonds In September 1995, the Palm Desert Financing Authority issued $7,540,000 1995 Revenue Bonds. The proceeds from the revenue bonds were loaned to the Assessment Districts to provide funds to refund in advance $900,000 Assessment District No. 83-i Bonds, $5,575,000 in Assessment District 84-1 Refunding Bonds and $3,200,000 in Assessment District No. 87-1 Bo�s. These bonds were issued under the 1915 tict to provide funds for capital impr�ements in the respective assessment districts. The advance refunding resulted in an economic gain of $612,476 (difFerence betvveen the present value of the annual debt service paymenis between old debt and new debt) and a decrease in aggiegate debt service payment of $4,353,724. Interest rates on the Bonds is paid at a rate of b.0% with inurest payable semi-annually on March 2 and September 2 with principal maturing annually on September 1. Debt Service requirements w maturity aze as follows: Year Ending June 30 Princioal Interest Total 1997 $ 605,000 $ 434,250 $ 1,039,250 1998 610,000 397,800 1,007,800 1999 650,000 360,000 1,010,000 2000 680,000 320,100 1,000,100 2001 730,000 277,800 1,007,800 Thereafter 4.265.000 781.350 5.046350 $ 7.540.000 $ 2.571300 $ 10.111.300 � See independent auditors' ieport. -35- — CITY OF PALM DESERT � NUTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG TERM DEEf (CONTINUED): E. Special Assessment Bonds Payable (Continued): 1995 Revenue Bonds Co tinued As of June 30, 1996, the principal amount to be repaid by each assessment disuict to pay-off the loans from the Financing Authoriry aze as follows: Assessment District 83-1 $ 695,000 Assessment District 84-1 Refunding 4,580,000 Assessment District 87-1 1,775,000 Communit� Facilities District No. 91-1 - (1995 Bondsl The Bonds were issued in an original amount of $12,835,000 in December, 1995 pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, W finance the acquisition, construction and installadon of certain public improvements in the District. The Debt service payments are payable from the proceeds of an annual special tax to be levied on and collected from property within the District. The special tax is to be levied according to an annual rate approved by the Ciry Council of the City of Palm Desert. Interest rates on the bonds vary from 5.00°b to 6.95% with interest payable April 1 and October 1 of each year with principal maturing annually on October 1. Debt service requirements to maturiry are as follows: Yeaz Ending June 30 Principal Interest Total 1997 $ - $ 835,111 $ 835,111 1998 - 835,111 835,111 1999 255,000 828,736 1,083,736 2000 270,000 815,274 1,085,274 2001 280,000 800,486 1,080,486 Thereafter 11.580.000 9.833.995 21.413.995 $ 12385.000 $ 13.948.713 $ 26333.713 I See independent auditors' report. -36- � CITY OF PALIvi DESERT �, � NOrI'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 6. GENERAL LONG TERM DEBT (CONTINUED): E. Special Assessment Bonds Payable (Continued): Below is a summary of the changes in the Assessment Bonds Payable: B�e a� Balance at ]ulv 1. 1995 Addiaons Pavmens 7une 30. 1996 Asussment District 83-1 S 900.000 S - 3 900,000 S _ Assessment District 84-1 Refi+nding 5,575,000 - 5,575,000 - Assessmeat District 87-1 3,200,000 - 3,200,000 - Assessment District 92-1 2,255,000 - 70,000 2,185,000 Community Faciliues District 91-1 (1992 Bonds) 11,660,000 - 220,000 11,440,000 Assessment District 94-1 6,900,000 - 225,000 6,675,000 Assessment District 94-2 1,832,000 - - 1,832,000 Assessment Disaic[94-3 1,500,000 - - 1,500,000 1995 Revenue Bonds - 7.540.000 - 7,540.000 Community Facilities District 91-1 (1995 Bonds) 12385.000 12385.000 S 33.822.000 � 19.925.000 t0 190 000 S 43.557.000 7. DEFERRED COMPENSATION PLAN: The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until funue years. The deferred compensadon is not available to employees until termination, retirement, death or unforeseeable emergency. All amounu of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the emplayce or other beneficiary) solely the pmperty and rights of the City (without being iestricted to ihe provisions of benefits under the plan), subject only to the claims of che City's ge�ral creditocs. Participants' rights under the plan are equal to those of general creditots of the City in an amount equal to the fair market value of the deferred account for each participant. The City has the duty of due care that wvuld be required of an ordinary prudent investor. The Ciry believes that it is unlikely that it will use the assets to satisfy the clauns of general creditocs in the fuNre. See independent auditors' report. -37- CITY OF PALM DESERT NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 7. DEFERRED COMPENSATION PLAN (CONTINUED): The following is a summary of the increases and decreases of the fund for the year ended June 30, 1996. Fund Assets (at Mazket Value), Beginning of Year $ 2,410,327 Contributions 246,765 I Additions - Income Changes in Mazket Value 292,486 Withdrawals and expenses (52.563) Fund Assets (at Mazket Value), End of Year $ 2.897.015 8. DEPOSI'IS PAYABLE: Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are, e�rcept where otherwise pmvided by specific agreement, allocated to the Agency. All taxes on the "frozen" assesscd valuadon of the property are allocated to the City and other taxing agencies. The Agency has entered into various pass- thmugh agreements with other tax agencies to allocate their tax increment cesulting from � the increase in assessed values after the adoption of the Redevelopment Plan. At June 30, 1996, the Agency is holding $9,236,868 in trust on behalf of other taxing agencies related to specific pass-through agreements which is included in the total deposits of$10,572,190. See independent auditois' report. _38_ � / `, CITY OF PALM DESERT � NOTES TO FINANCIAL STpTEMENTS (CONTINUED) June 30, 1996 9. BOND RESERVE REQUIREMENTS: At June 30, 1996 the fund balance reserve requirements and actual reserve balances are presented as follows: Reguirement Actual 1992 Series A Tax Allocation Bonds (Project Aiea No. 1 as Amended) $ 7,841,271 $ 16,044,756 1992 Series A Tax Allocation Bonds (Project Acea No 2) 1,278>556 1,624,198 Assessment District No. 92-1 229,898 455,154 Community Facilities District No. 91-1 (1992 gonds) 1,078,930 1,757,243 Assessment District 941 612,585 1,117,729 Assessment District 94-2 183,200 232,729 Assessment District 94-3 127,500 219,864 Communiry Facilities District No. 91-1 (1995 Bonds) 1,092,787 2,293,064 1995 Financing Authority Revernie Bonds 735,000 784,840 1995 Series Tax Allocation Bonds (Project Area No. 1 as Amended) 1,955,525 16,821,348 1995 Series Tax Allocation Bonds (Project Area No. 2) 343,900 2,817,115 1995 Refunding Tdx Allocation Bonds 630,500 714,893 These actual amounts are included in Fund Balance reserved or designated for Debt Service (see Note 12). 10. DEFEASED OBLIGATIONS: The Ciry defeased certain Redevelopment obligations by placing the proceeds of new obligations in an irrevocable trust to provide for all fuwre debt service payments on the old obligations, Accordingly, the trust account assets and the liabiliry for the defeased obligations are not included in the accompanying financial stauments. At June 30, 1996, the following obligations are considered defeased. Amount of Defeased Issue Debt Still Outctanding 1982 Tax Allocadon Bonds $ 3,720,000 1989 Tax Allocation 4,720,000 See independent auditors' report. -39- CITY OF PALM DESERT � N�I'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 11. CITY EMPLUYEES' RETIREMENT PLAN: A. Plan Description: The Ciry of Palm Desert contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of Califomia. The Ciry's paymll for employees covered by the system for the yeaz ended June 30, 1996 was $4,746,317 for miscellaneous membeis. All full-time City employees are eligible to participate in the system. Benefiu vest after five years of service. Miscellaneous employees who retire at or after age 60 are entided to an annual retirement benefit payable monthly for life in an amount equal to two percent (2 h) of their lughest annual salary for each yeaz over five (S) yeazs. The system also pmvides death and disability benefits. The City employees' required contribudon to the System of seven percent (7%) of annual salary for miscellaneous members is currendy paid by the City. Additionally, the City of Palm Desert is required to contribute the remaining amounts necessary w fund the benefits for iu members, using the actuarial basis recommended by the PERS actuaries and actuarial consultanu and adopted by the Board of Adminisuation. B. Funding Status and Progress: The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension be�fiu, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employce service to date. The measvre is inte�ed to help users assess the funding status of the system on a going-concern basis, assess pmgress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuariat present value nf credited pmjected benefits and is independent of the funding method used to detcrmine contributions to the System. The pension benefit obligadon was computed as part of an actuarial valuation performed as of June 30, 1995. Signi£cant actuarial assumptions used in the valuation include: a) a rate of retum on the irnestment of present and future assets of 8.50% a yeaz compounded annually, b) projected salary increases that vary by length of service, c) an inflation nte of 4.50%, d) merit increases for salary that vary by length of service. See independent auditors' report. �0- � � CITY OF PALM DESERT � NOri'ES 'IiD FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 11. CITY EMPLOYEES' RETIREMENT PLAN (CONTINUED): B. Funding Status and Progress (Continued): Assets in excess of the pension benefit obligation applicable w the City's employees was $3,029,212 at June 30, 1995: PENSION BENEFIT OBLIGATION: Retirees and beneficiaries curnndy receiving be�fits and terminated employees not yet receiving benefits $ 2,224,355 Current employees - accumulated employee contributions including allocated investment earniags 3,463,989 Emplvyer - financed vested 3,142,425 Employer - financed nomested 109.915 T�TAL PENSION BENEFIT OBLIGATION 8,940,684 ACTUARIAL YALUE OF ASSETS (MARKET VALUE IS $12,723,998) 11.969.896 ASSETS IN EXCESS OF PENSION BENEFIT OBLIGATTON $ 3.029.212 CHANGES IN THE PENSION BENEFIT OBLIGATION FROM LAST YEAR INCREASE (DECREASE) DUE 'PD: Changes in benefit provisions $ _ Changes in acmarial assumpdons $ _ Actuariai information relating to the plan was not available from PERS for the yeaz ended June 30, 1996. C. Contributions Required and Contributions Made: PERS uses the Entry Age Normal Actuarial Cost Method wluch is a pmjected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the fumre as well as those already accmed. See independent auditors' report. �1- CITY OF PALM DESERT NOR'ES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 11. CITY EMPLOYEES' RETTREMENT PLAN (CONTTNUED): C. Contributions Required and Contributions Made (Continued): According to ttus cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost Method in which the employers' total nonnal cost is expressed as a level percentage of payroll. PERS also uses the level percentage of paymll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends on June 30, 2000 for prior service benefits and June 30, 2005 for other benePits. The significant actuarial assumptions used to compute the actuarially determined contribution requirements are the same as those used to compute the pension benefit obligations, as previously described. The contribution to the System for 1995 was made in accordance with actuarially determined �equirements computed through an actuarial valuation performed as of June 30, 1995. The total contribution to the system of $774,523 consisted of the employers share of $430,016 (9.1% of covered payroll), the employee portion paid by the employer of $334,958 (7.146 of covered payroll) and employee paid contributions of $9,549 (.2% of covered payroll). D. Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay be�fiu when due. 'Ibn year trend information for the City is not published in the California Public Employees' Retirement System. Therefore, the City has disclosed Uvs information beginning with the 1987 fiscal year, the first year this information was made available by PERS. See independent auditocs' �port. -42- CITY OF PALM DFSERT � `•�• .�r NOrI'ES 'IiD FINANCIAL STATEMENTS (CONTINLTED) June 30, 1996 11. CIT'Y EMPL�YEFS' RETIREMENT PLAN (CONTINUED): D. Trend Information (Continued): Unfunded � Pension Benefit Obligation Fiscal Net Unfiu�ded as a Year Assets Pension Pension Annual Percentage Ending Available Ben�t Percentage Benefit Cwered of Cove�ed June 30 for Benefits Obii at�ion, Funded Obli¢ation Pavroil Pavroll 1987 $ 3,106.5 $ 2,291.1 135.6 96 $ (815.5) $ 2,254.7 36.2 96 1988 3,540.2 2,709.7 130.6 (830.5) 2,446.3 33.9 1989 4,156.2 3,221.2 129.0 (935.1) 2,794.9 33.5 1990 4,826.8 4,329.4 I11.5 (497.4) 3,305.8 15.0 1991 5,633.1 4,987.6 112.9 (645.5) 4,038.6 16.0 1992 6,777.5 6,076.3 111.5 (701.3) 4,479.2 15.7 1993 8,018.2 7,161.0 112.0 (857.3) 4,748.4 18.1 1994 10,359.0 7,444.9 139.1 (2,914.2) 4,655.9 62.6 1995 11,969.8 8,940.6 133.9 (3,0293) 4,878.4 62.1 1996 * * '� • 4,655.9 ■ * information not available See independent auditors' report. -43- � CTTY OF PALM DESERT NOI'ES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 12. RESERVES AND DESIGNATIONS OF FUND BALANCE: Reserves segregate portions of fund balance that are not available spendable resources. The various reserve established as of June 30, 1996 were as follows: Special Debt Capital General Revenue Service Project RESERVED: Fund Funds Funds Funds Encumbrances $ 2,641,222 $ 2,767,609 $ - $ 4,679,796 Receivables 65,000 1,568,365 - - Advances 5,581,000 654,000 - 12,765,000 Piepaid expenses 493,568 - 6,090 341 Deposits - - - 275,000 Debt service - - 16,109,652 - Specific projects and pmgrams 1,654,478 - - 200,000 Continuing appropriations - 2,435,746 - 11,060,391 Low income purposes - 1,866,916 - - Inventory held for resale - 10.950.000 - $10.435.568 0 242 636 16 115 742 $ 28.980.528 DESIGNATED: Special revenue purposes $ - $ 6,394,808 $ - $ - Debt service - - 41,371,734 - Capital outlay - - - 45,701,223 Genenl contingencies 15.177.981 - - - 15 177 981 94 O8 $41.371.734 $ 45.701.223 Reserved for Encumbrances - These reserves represent the portion of purehase orders awuded for which the goods or services had not yet been received at June 30, 1996. Although all appropriations lapse at year-end, even if encumbered, the City intends either to honor the contracts in pmgress or W cancel them. Reserve for encumbrances are rebudgeted on July 1, by Council action. Reserved for Receivables - These reserves are set up to reflect the non-current portion of receivables so that they will not be considered as current funds available. Reserved for Advances - These reserves are set up to reflect the advances to the Redevelopment Agency so that they will not be considered as current funds available. See independent auditois' report. -44- CITY OF PALM DESERT � v�►� r,ry NOrI'ES 'PD FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 12. RESERVES AND DESIGNATIONS OF FUND BALANCE (CONTINUED): Reserved for Prepaid Exnenses - These reserves reptesent contractual obligations for cash payments made before June 30, 1996, but not recognized as an expenditure until after July 1, 1996. Reserved for Deposits - 'fhese ieserves aze to indicate that these funds are not available co finance current expenditures. Reserved for Debt Service -These reserves for Debt Service represent reserves accumulated by the Ciry and the Redevelopment Agency that are legally restricted to the payment of long-tcrm debt principal and interest aznounts that matutie in future years. Reserved for Specific Proiects and ProQtan�s - These reserves represent specific pmjects and programs for wluch the City has made a commitment tov�rards completion. Reserved for Continuiqg Aouronriationc - These reserves aze for appropriadons for capital pmjects which are unexpended as of June 30, 1996 and are carried fornard as continuing appropriations w be expended in 1996-97. Reserved for Low Income ses - Ttris reserve is for amounts set aside from tax increment money rcceived by the Redevelopment Agency and is to be spent on projects benefitting low income families. Reserved for Inventory Held for Resale - This reserve is for imentory held for resale and has been set aside to i�icate that these funds are not available to finance current expenditures. DesiPnated for Special Revenue Purposes - These funds aze designated for specific special revenue purposes as restricted by law or administrative acdon. Desisnated for Debt Service - These funds are designated for payment of principal and interest on General Long Term Debt. Desisnated for Capital OuUay - These funds aze designated for capital outlay for futtue projects. Desi¢nated for General Contingencies - These funds in the General Fund are designated for general contingencies. See independent auditors' report. -45- — CITY OF PALM DESERT — NOTES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 13. INSURANCE PROGRAMS: For General Liability, the City is a member of the Southern Califomia Joint Puwers Insurance Authority (Authority) and for workers compensation, the City is a member of the Coachella Valley Joint Pbvwers Insurance Authority (CVJPIA). General Liabilitv Beginning July i, 1995, the City joined the Southern California Joint Insurance Pow�rs Authority (the Authority). The Authority is comprised of 78 Southern California member cities and is organized under a Joint Pbwers A.greement pursuant to the California Gwernment Code. The purpose of the Authority is to aaange and adminisur programs of insurance for the pooling of self- insured losses and to pucohase excess insurance coverage. Each member city has a representadve on the Boazd of Directots with officers of the Authoriry being elected annually by the Board Membets. Annual deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city, including Pdlm Desert self- insures for the first $20,000 of each loss. Participating cities then shaze in claims from $20,000 to $500,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, errors and omissions and certain other coverage. Separate deposits ue collected fmm the member cities to cover clauns between $500,000 and $10,000,000. These deposits are also subject to retrospective adjustment. Prior to July 1, 1995, the City was a member of the Coachella Valley Joint Powers Insurance Authority (CVJPIA) general liability program. The Liabilitv Progtat� consisted of a banking pool, a risk sharing pool and insurance pushasing pooi. Coverage was provided from $125,000 to $10,000,000 per occurrence. Tkus risk sharing pool provided coverage from $125,000 to $1,000,000 per occurrence. The insurance purchasiag pool is e�ess coverage purchased by the authority to cover losses from $1,000,000 to $10,000,000 per occurrence. The City has a self-insurance retention of $125,000. Covered losses include losses resulting from any o� occurrence because of personal injury, property damage or public officials errocs and omissions. See independent auditocs' report. �6- - r ,r, CITY OF PALM DESERT �, N�I'ES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 13. INSURANCE PROGRAMS (CONTINUED): Workers' Compensation The Ciry is a member of the Coachella Yalley Joint Powers Insurance Authority (CVJPIA), a joint power authority formed under the California Code for the purpose of jointly financing pmgrams of �nc��,�nSe. The Authority is currendy comprised of twenty-six participating member agencies, twenty-ttu�ee cities with populations ranging fmm 1,500 to 130,000, a t�ansit agency with a fleet of sixty revenue vehicles and twv special districts. The Workers' Comoensation Pro¢nm is a claims servicing pool, a banking pooi and an insurance purchasing pool. As an insurance puc�hasing pool, the pmgram allows participating members to obtain the benefits of the economies of scale in securing excess workers' compensation coverage. Coverage is provided from $250,000 to the statutory limit for each accident or employee. The program, as a claims servicing pool maintains sepazate accounts for each pmgram member from which that member's losses are paid. The workers' compensation insurance pmgram dces not provide for a uansfer of risk and therefo�e, each member is iesponsible individually for its own losses. The pool will advance funds to pay member losses in excess of inember funds on deposit in the manner of a banking pool. Participant piemium deposits are subject to retrospective rating adjustments. 14. ASSESSMENTS RECEIVABLE: The receivabie represents future assessments to be received from property owners in Assessment Districts 83-1, 84-1, 87-1, 92-1, 94-1, 94-2, 94-3 and Community Facilities District (CFD) No. 91-1 to pay for long-term obligations incurred in making capital impmvements to each Assessment District. (See Note 6E). Recognition of the revenue from the assessments has been deferred until it becomes available. Once received, the monies will be used w make annual debt service payments. See independent auditocs' report. -47- CITY OF PALM DESERT NOri'ES 'PD FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 15. LOSS ON INVESTMENT: In December 1991, it wes learned that the Securities and Euhange Commission (SEC) conducted an invesdgation of Institutional Treasury Management (ITM) and froze certain assets administered by ITM including the Agency assets. It was subsequendy announced that ITM had diverted funds and/or securities in client accounts to other accounts without the client's knowledge. The Agency records identified $4,212,144 being invested with ITM, hovwever the invesunent could not be verified with a third parry. During fiscal 1995-96, the Agency recorded a loss on the imestment in the amount of$3,627,780 which represents the original investment of $4,212,144 less recoveries of $584,364 from other parties. 16. PRIOR PERIOD ADJUSTMENTS: The Ciry made prior period adjustments which resulted in the following restatemenu of beginning fund balance: �S�S Beginning Prior Period Fund Balance Fund Balance Adjustment As Restated Genenl Fund $ 20,175,489 $ 630,895 $ 20,806,384 Special Revenue: Measure A 3,844,038 136,002 3,980,040 Redevelopment Agency 3,015,377 473,225 3,488,602 Debt Service Assessment District 94-2 1,252,734 (122,049) 1,130,685 Bighom Series 3 - 122,049 122,049 Beginning fund balance in the General Fund and Measure A Special Revenue Fund was increased by $630,895 and $136,002, respectively, to record receivables as of Ju� 30, 1995 for the collection of sales tax revenues. These adjustments were as a result of the City's implementation of Gwernment Accounting Standazds Board Statement No. 22, "Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds". Beginning fund balance in the Redevelopment Agency Speciai Revenue Fund was increased by a net amount of $473,225 to record a deposit in the amount of $639,063 and to reduce receivables in the amount of $165,838 at June 30, 1995. Beginning fund balance in the Assessment District 94-2 Debt Service Fund was decreased by $122,049 and increased by $122,029 in the Bighom Series B Debt Service Fund w coaecdy record assessments collected before June 30, 1996. See independent auditocs' ceport. �8- / ,r, CITY OF PALM DESERT �, NOTES 'PO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 17. CONTRIBUTED CAPITAL During fiscal year 1995-96, the Agency Debt Service Fund received a building with a value of $3,670,000 in coasideration for a note receivable with a basis of $5,899,000. A bad debt expenditure of $2,229,000 was recorded in the Debt Service Fund. The transfer of the building from the Debt Service Fund to the Building Enterprise Fund was recorded as a residual equiry uansfer out in the Agency Debt Service Fund and as contributed capital in the Building Enterprise Fund. 18. SUBSEQUENT EVENTS: A. 1996 Tax Allocatioa Revernie Bonds On October 3, 1996, the Palm Desert Redevelopment A,gency issued $10,880,000 1996 Series A (Desert Rose Project Refunding) and $8,170,000 1996 Series B bonds for the purpose of refunding its $15,100,000 Variable Rate Demand Multifamily Housing Revenue Bonds and finance working capital to preserve the supply of low and moderate income housing within the City of Palm Desert and pay costs of issuance of the bonds. B. Series 1996 - $7,010,000 L.ease Revenue Bonds In August 1996, the Palm Desert Financing Authoriry (the Authority) issued $7,010,000 in L.ease Revenue Bonds. The procceds of the Bonds will be used to finance the construction of a Counry Administrative Center a� related facilides upon a site located in the City of Blythe, County of Riverside, fund a reserve account, fund appmximately eight months of capitalized interest and pay costs of issnance of the Bonds. The Authority will lease the site from the Counry of Riverside (the County) putsuant w a site lease dated August 1, 1996, by and between the Authority and the County and will lease back to the Authority the site and the facilities (toget6er "the Project") pursuant to a Lease Agneement dated as of August 1, 1996, by and betvveen the Authority and Counry (the "Lease"). Under the Lease, the County will pay the Tivstee Base Rental Payments co the trustee in an amount equal to the scheduled debt service payments on the Boads. The Aurhority will assign its right co receive the Base Rental paymenu to the trustce for the benefit of the ovv�cs of the Bonds. See independent auditocs' report. �9- SUPPLEIVIENTAL INFORMATION CITY OF PALM DESERT STATEMENT OF REVENUES-BUDGEf AND ACTUAL-GENERAL FUND i i For the year ended June 30, 1996 j Budget Actual Property taxes S 2,058,300 . S 1.757.609 Property transfertax � 200,000� 252,189 Timeshare mi[igation fee 200,000• 501.150 Sales tax 7,650,000' 8,133,542 Business license tax 620.000' S98,704 Job valua[ion fees 18,000' 27,649 Transieatoccupancytaz 4,601.000. 4,919.263 Franohises 1.200.000' 1,360,554 Penalties and interest on taxes 9,500' 18,398 Building permits 433,000 716.830 Grading permits 25,000 51,417 Valet parking permits 400 425 Encroachment permits 3,000 5,089 Miscellaneous permits 1.500 2,010 Business regulatory permits 23,000 33,922 Federal grants 25,000 - Motor vehicle in-lieu �es 1,050,000 1,290,072 Offhighway in-lieu fees S00 876 Subventionsfrom state 15,000 102,667 Monthly parking bail - 11,423 Subdivision fees 70,000 97,693 I 7nning Sees 10,000 18,029 Plan check fees 290,000 359,525 i Sale of maps and publications 2,500 44,561 � Microfilm fees 13,000 15,690 I Otherfees - 3,900 �. Code compliance 10,000 8,028 Strong motion instrument fee 12,000 10,830 �� Building inspection service 400 - Specialinvestigation fre 1,000 122 Certificate of compliance fee 1,000 6.975 Nuisance abatement tax 10,100 29,001 ReimbursementRDAcosts 350,000 355,589 Ot6er reimbursements 215,310 1.361.675 Vehicle code fines 30,000 45,813 Municipal court fines � 6,000 9,657 Interestineome 750,000 1,264,791 Intereston advances 300,000 318,804 Rental income 7,500 19,870 Other revenue 5,000 84,096 Sale of assets - 8.101 Traasfer in 520,000 678,676 I TOTALS S 20.737,030 S 24,525.215 See independent auditors' repor[. -SO- Landscape Parking Lot Landscape Landscape Air City Wide Landscape and Lighting Maintenaace and Lightiag and Lighting Quality Business and Lighting District No.2 District District No3 Distriet No.6 Management License District No. 7 $ 6.158 S 40,638 S 8.537 S 29,548 $ 24,402 S 26,547 S 7.328 219 2.199 17 1,535 36,566 32,340 — 328 — 68 2,847 44,191 — — � — — — — — — — S 6,705 S 42,837 S 8.622 S 33,930 S 105.159 S 58,887 S 7,328 S 6,158 S 1,551 S 156 S 3.034 S 83.787 E — S 384 6.158 1,551 156 3,034 83,787 — 384 _ _ — — 21,372 11,685 — 547 41,286 8.466 30,896 — 47,202 6,944 I 547 41.286 8.466 30,896 21,372 58,887 6.944 S 6.705 S 42.837 S 8.622 S 33.930 S 105,159 S 58,887 S 7,328 � � i i I I (Continued) � —55— CITY OF PALM DESERT � � ' � COMBINING STATEMENT OF REVENUES.EXPENDITURES AND CHANGES IN FUND BALANCES—ALL SPECIAL REVENUE FUNDS For the year ended June 30. 1996 • , (With comparative totals for the year ended Iune 30. 1995) Housing Traffic Gas Mitigation � Safety Tax Measure A Fee REV EN UES Taxes a — a — a 1,069,326 S 120,368 Special assessments collected . — — — — Incergovernmentalrevenues — 607,514 2.675,513 — Fines and forfeitures 28.028 — — — Use of money and property 835 15,696 214,173 20,209 Recovery of investment loss — — — — Sale of iz�ventory — — — — Otherrevenues — — — — TOTAL.REVENUES 28,843 623.210 3.959,012 140.577 EXPENDITURES: Current: General goveramental— nondepartmental — — — — Public safety — — — — Public works — — — — Cost of inventory sold — — — — Decline in value of inventory held for resale — — — — Capital outlay — — 4,649,014 — Debt service: Interest and fiscal charges — — — — Principal retirement — — — — TOTAL EXPENDITURES — 4.649,014 — EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 28.843 623,210 (690,002) 140.577 OTHER FINANCING SOURCES(USES): Operating transfers in — — — — Operating transfers out (29.337) (623,210) — (912,196) Proceeds fmm bonda — — — — Payment to refund eacrow agent — — — — TOTAL OTHER FINANCING SOURCES(USES) (29.337) (623,210) — (912,196) EXCES S OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) . � EXPENDITURES AND OTHER FINANCING USES (494) — (690,002) (771,619) FUND HALANCES— BEGINNING OF YEAR 6,129 — 3,980.040 771,619 FUND BALANCES—END OF YEAR S 5.635 S — S 3.290.038 E — See independent auditors' report. —58— - - i � , i , � j New Park and Fire ;� Community PropA Construction Planned Recreation Traffic Facilities Development Fire Tax Tax DrainaQe Facilities Sianals Restoration i $ — $ 1,264,212 S 453,533 5 663,453 $ 550,948 b 64,644 a — I 361,359 — 229,69'7 100,000 — — — i — — — — — — — — 35.904 204,829 88,476 105.913 73,522 1,715 � — — — — — — — + — — — — 220 — — i 361.359 1.300.116 888.059 851.929 657.081 138,166 1.715 I I I 132.076 7.529 — — — — — ( = 798.918 — — — — Y — — — — — — — I 228,926 — 971,171 726.767 307,742 IO2,462 — j 361.002 806,447 971.171 726,767 307.742 102,462 — I I357 493.669 83.112) 125.162 349,339 35.704 1.715 I I (357) - — — — — — — � — — — '" — — — � — — — (35T — — — — — — 493,669 (83,112) 125,162 349,339 35,704 1,715 — 43,154 3.317.395 1.542,925 1,405,809 1.254.011 28.591 S — E 536.823 S 3.234.283 E 1.668.087 S 1.755.148 S 1.289.715 S 30.306 (Continued) —59— `+�' CITY OF PALM DESERT � � COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES—ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended Iune 30, 1996 (With comparative totals for the yearended June 30, 1995) Cook Street Country El Paseo Lighting Club People Assessment Maintenance Maintenance Mover District District District REVENUES: Taxes E — S — S — S — Special assessments collected — 101,420 3,150 � 116.673 Intergovemmental revenues — — — — Fines and forfeitures — — — — Use of money and property 266 — — — Recovery ofinvestmentloss — — — — Sale of inventory — — — — Otherrevenues 299 452 TOTAL.REVENUES 266 101,719 3,150 117.125 EXPENDITURES: Current: General governmental— nondepartmental — 121,222 — � — Pu61ic safety — — — — Public works — — 3.424 84,092 Cost of inventory sold — — — — Decline in value of inventory held for resale — — — — Capital outlay 1,500 — — — Debt service: Interest and fiscal charges — — — — Principal retirement — — — — TOTAL EXPENDITURES 1.500 121.222 3.424 84,092 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1.234) (19.503) (274) 33.033 OTHER FINANCING SQURCES(USES): Operating transfers in — — — — Operating transfers out — — — — Proceeds from boads — — — — Payment to refund eserow agent — — — — TOTAL OTHER FINANCING SOURCES(USES) — — — — EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (1.234) (19,503) (274) 33.033 FUND BALANCES— � � BEGINNING OF YEAR 5.344 19.801 2,205 37.591 FUND BALANCES—END OF YEAR S 4.110 S 298 S 1.931 S 70.624 See independent auditors' report. --60— New Park and Fire Community PropA Construction Planned Recreation� Traffic Facilities Development Fire Tax Tax Drainage Facilities Signals Restoration S — S 381.439 S 2.577,940 S 1,618,087 E 1,755,148 S 1.339,546 S 30,306 — 30,503 — — — 32,539 — � — — — — — — — 143,905 124,881 19.697 50.000 — — — — — 634.000 — — — — I S 143,905 S 536.823 S 3,251.637 S 1,668,087 S 1,755.148 S 1.372,085 S 30.306 � ! a isz.o�� s — a n,ssa s — a — s az.s,o a — ' 11.828 — — — — — — 143,905 — 17„354 — — 82.370 — i ! — — 805,516 1,044,734 — 1.140,391 — — 53G,823 2.428,767 623,353 1,755,148 149,324 30,306 — 536,823 3.234.283 1,668,087 1,755.148 1,289,713 30,306 I I � � S 143,905 - S 536.823 S 3.251.637 S 1,668,087� S 1,755,148 S 1,372,085 S 30.306 � I I � Ii I � � (Continued) i I —53— CITY OF PALM DESERT � `h/ � � COMBINING BALANCE SHEET—ALL SPECIAL REVENUE FUNDS (CONTINUED) Iune 30, 1996 (With comparative totals for Iune 30, 1995) Cook Street Country � El Paseo Lighting Club People pssessment Maintenance Maintenance Mover District District District ASSETS Cash and investments E 4,110 E 3,945 S 1,956 $ 70,297 Cash with fiscal agent — _ _ _ Accounts receivable — — 84 2,969 Iaterost receivable — _ _ _ Due from other governmental agencies — — 102 3,252 Loans receivable — _ _ _ Deposits — _ _ _ Inventory held for resale — _ _ _ Advances to other funds — _ _ _ TOTALASSETS S 4,110 S 3,945 E 2,142 S 76.518 LIAHILITIES AND FUND BALANCES LIABILITIES: Accounts payable 5 — S 3,64'7 E 211 S 5,894 Duetootherfunds — _ _ _ TOTAI, LIABILTI'IES — 3,647 211 5.894 FUND BALANCES: Reserved _ _ _ _ Unreserved—designated 4,110 298 1,931 70,624 TOTAL FLJND BALANCES 4,110 298 1.931 70,624 TOTAL LIABILTTIES AND FUND BALANCES S 4,110 S 3,945 S 2,142 S 76.518 See independent auditors' report. —54— i . Landscape Parking Lot Landscape Landscape pir City Wide Landscape � and Lighting Maintenance and Lighting and Lighting Quality Business and Lighting District No.2 District District No.3 District No.6 Mana¢ement License District No. 7 s - s - a - a - a - s 51,540 E 6,600 16,111 114,307 4,410 40.398 - - - - - - - 36,671 - - - - - - 3,188 3,050 - 16.111 114.307 4,410 40,398 39,859 54,590 6,600 ; - - - - 12,195 23,592 - ; 66,462 108.982 4,394 36,775 - - 6,038 - - - - 63,170 - - 66,462 108.982 4,394 36,775 75.365 23,592 6,038 (50,351) 5.325 16 3,623 (35.5061 30.998 562 49.749 - - - - - - - - - - - (25,770) - 49,749 (25.770) - (602) 5.325 16 3,623 (35,506) 5.228 562 1,149 35,961 8,450 27,273 56,878 53,659 6,382 S 547 S 41.286 S 8.466 S 10.896 S 21.372 S 58.887 S 6.944 (Continued) ^61- . _ � �/ CITY OF PALM DESERT � � COMBINING STATEMENT OF REVENUES, EXPENDINRES AND CHANGES IN FUND BALANCES—ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended Iune 30. 1996 (With wmparative cotals for the year ended June 30, 1995) Landscape Landscape Landscape Landscape and Lighting and Lighting and Lighting and Lighting Distriat No. 8 District No. 9 District No. 10 District No. 11 � REVENUES: Taxes S — S — S — S — Special assessments collected 9,971 18,479 996 4,653 Intezgovernmental revenues — — — — i Fines and forfeitures — — — — ' Use of money and property — — — — Recovery of investment loss — — — — ; Sale of inventory — — — — i O[herrevenues — — — — ' TOTAI.REVENUES 9.971 18.479 996 4,653 EXPENDITURES: Current: General governmental— nondepartmental — — — — Public safety — — — — Public works 6.092 13,410 6.652 4.126 Cost of inventory sold — — — — Decline in value of inventory held for resale — — — — Capital outlay — — — — � Debt service: Interest and Fscal charges — — — — Principal retitement — — — — TOTAL E?CPENDITURES 6.092 13.410 6,652 4.126 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 3.879 5.069 (3,656) 527 OTHER FINANCING SOURCES(USES): Operating transfera in — — — — ' Operating transfers out — — — — Prceeeds fmm bonds — — — — ��. Payment to refund escrow ageat — — — — � TOTAL OTHER FINANCING SOURCES(USES) — — — — EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 3,879 5,069 (5,656) 527 FUND BALANCES— BEGINNING OF YEAR 1,393 11.024 13.073 3.732 FUND BALANCES—END OF YEAR S 5.272 S 16.093 S 7.417 S 4.259 See independent auditors' report. —62— i � Landscape Landscape and Lighting and Lighting Redevelopment Totals Distric�• 12 District No. 26 Agency 1996 1995 � — a — a — a 4,244.624 $ 4,091,304 7,175 806 — 438,549 432,872 — 38,910 — 4,049,664 973,491 _ — — 28,028 24,802 — 5,283 173.141 946.180 686,253 _ _ — — 165,018 _ — 1.031.764 1,031.764 — 2.020 2.991 38,162 7,175 44,999 1.206,925 10.741,800 � 6,411.902 _ — 6,111.409 6,408,023 4.638.�91 _ — — 798,918 1,709,871 4,000 37.628 — 382.073 355,849 _ — 803,000 803.000 — _ — 3,347,000 3,347.000 — _ — 164.187 7.214,939 5.613,021 _ — 178.731 178,731 471,005 _ — — 260,000 4,000 37.628 10.604,327 19,132,686 13,048.537 3,175 7,371 (9.397.402Z (8.390,886) (6,636.635) _ - — 12,175,627 12.225,376 6,669.933 _ — (179,000) (1.769.870) (592.460) _ — 15,100,000 15,100.000 — — (6,755.1001 (6.755,100) — 20,341.527 18.800,406 6,077.473 I 3,175 7,371 10,944,125 10.409,520 (559,162) 105.734 3.488.602 16.227.924 16,787,086 S 3.175 S 113.105 S 14.432.727 S 26.637.444 S 16.227.924 —63— CITY OF PALM DESERT � "�►' � COMBINING BALANCE SHEET-ALL DEBT SERVICE FUNDS June 30. 1996 (With comparative totals for ]une 30, 1995) Assessment Assessment District Assessment District No. 84-1 District No. 83-1 Refunding No.87-1 ASSETS Cash and investments S 206.893 E 823,158 S 350,205 �� Cash with fiscal agent — — — '�� Interestreceivable — — — I Due from other governmental ageacies 8,291 53.462 12.492 I Loans receivable — — — � Due from other funds 1.066 7,484 2,722 ` Assessments receivable 586,941 4,387,892 1.667,347 I Prepaid expenses — — — � TOTALASSETS S 803.191 E 5.271,996 S 2.032,766 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable S 850 S 3,132 S 1,564 �� Due to other funds — — — � Deposits payable — — — Deferred revenue 586.941 4,387,892 1,667.347 '� TOTAL LIABILTTIES 587,791 4,391.024 1,668,911 FUND BALANCES: Reserved _ _ — ��I Unreserved—designated 215,400 880,972 363,855 1j i TOTAI. FUND HALANCES 215,400 880.972 363,855 � TOTAL LIABILITIES AND FUND HALANCES S 803.191 S 5,271.996 S 2.032.766 i �I I I � � Scc independent auditots' report. ! —64— � CFD Indian Assessment Assessment Assessment Assessment Ridge District District District District Bighorn (1992 Bonds) No.92-1 No. 94-1 No.94-2 No. 94-3 Series B S 617,532 S 206,040 S 479.514 S 31,684 E. 85,054 S 198,330 1.088.343 250,168 639,153 197,080 134.802 — 226 9 448 36 588 — 29.815 — 1,243 4,623 — — 21,327 — — — — — 11,440,000 2.110,000 6,453,396 1,784,999 1,475,000 — 715 — — — 3,000 — S 13.197.958 S 2.566,217 S 7.573,754 S 2.018.422 E 1.698.444 S 198.330 . $ — S 1,063 S 2,629 S 694 S 580 E 1,638 11,440.000 2.110,000 6,453,396 1,784,999 1.475,000 — 11,440.000 2.111,063 6,456,025 1,785,693 1.475,580 1.638 1,079,645 229.898 612.585 183,200 130.500 — 678,313 225,256 505,144 49,529 92,364 196,692 1,757,958 455,154 1,117,729 232,729 222.864 196,692 S 13.197,958 S 2.566.217 S 7.573,754 S 2,018.422 S 1,698.444 S 198.330 (Coatinued) —65— ��r CITY OF PALM DESERT �yr � COMBINING BALANCE SHEET—ALL DEBT SERVICE FUNDS , (CONTINUED) '�. 7une 30, 1996 �, (With comparative totals for June 30. 1995) ��, CFD Indian City Ridge Financiag Redevelopment {1995 Bonds) Authority Agency ASSETS Cash aad investments a — a — s 14,813.784 Cash with fiscal agent 2.313.322 794.433 — Interest receivable 1.069 1.679 — Due from other governmental agencies — — 7,826 Loans receivabie — — — Due from other funds — — 5,401.360 Assessments receivable 12,385,000 — — Prepaid expenses — — 2,375 - TOTALASSETS S 14,699,391 S 796,112 S 20.225.345 LIABILITIES AND FUND BALANCES . LIABILITIES: Accounts payable a — a — a 44,568 Due toother funds 21,327 11.272 — Deposits payable — — 9,236,868 Deferred revenue 12,385,000 — — TOTAI.LIABILITIES 12,406,327 11.272 9,281,436 FUND BALANCES: Reserved 1.092,787 735,000 2,375 Unreserved—designated 1,200.277 49,840 10.941.534 TOTAL F(JND BALANCES 2,293.064 784,840 10.943.909 TOTAI.LIABILTI'IES AND FiTND BALANCES S 14,699.391 S 796,112 S 20,225,345 � See independent auditors' report. ' —66— Redevelopment Agency Financing Totals Authority 1996 1995 5 2,128.684 S 19,940,878 S 26,828.488 35.873.065 41,290,366 38,399,163 20,561 24,616 450,443 — 117.752 193.419 — — 5.899,000 — 5,433,959 2.851.423 — 42,290.575 33,172.870 — 6,090 5,304 � S 38,022,310 S 109,104,236 S 107.800,110 S — S 56,718 E 74.057 — 32,599 — — 9,236,868 10,579.574 — 42,290.575 33,757,234 — 51.616,760 44,410.865 12.049,752 16,115,742 20,358,298 25.972.558 41,371,734 43,030,947 38,022,310 57.487,476 63.389,245 S 38.022.310 E 109,104.2.96 S 107,800,110 —67— � "r►' CITY OF PALM DESERT �/+ COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES—ALL DEBT SERVICE FUNDS ' i For the year ended Iune 30, 1996 ' (With comparative totals for the year ended June 30, 1995) Assessment . Assessment Dis[rict Assessment District No. 84-1 District � . . No. 83-1 Refunding No. 87-1 REVENUES: Taxes a — a — a — Speciat assessments collected 231,578 819,669 392,538 Use of money and property 8,254 41,900 29,495 Otherrevenues — — _ TOTALREVENUES 239,832 861,569 422,033 EXPENDITURES: Cu rren t: General governmental—nondepartmental — — — Bad debtexpense — _ _ Loss on investment — _ _ Educational RevenueAugmentation Fuad — — _ Payment toother agencies — — _ Bond discount — _ _ � Bond issue costs _ _ _ Interest and fiscalcharges 58,996 233,170 145,266 Principal retirement 95,000 350,000 135,000 Repayment of advances — _ _ TOTAI. EXPENDITURES 153,996 583,170 280.266 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 85.836 278.399 141,767 OTHER FINANCING SOURCES(USESk Operating transfersin 625,530 4,392,008 1,598,183 Operating transfers out (19,808) (139,080) (50,585) Proceeds from boads _ _ _ Payment to refund escrow agent (860,651) (5,453.095) (3,197,988) TOTAL OTHER FINANCING SOURCES(USES) (254,929) (1,200167) (1.650.393) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (169,093) (921.768) (1,508,626) FUND BAI qNCES—HEGINNING OF YEAR 384.493 1,802,740 1,872,481 RESIDUAL EQUITY TRANSFER OUT _ _ _ FUND BALANCES—END OF YEAR S 215,400 S 880,972 S 363.855 See independent auditors' report. —68— � _ - -- CFD Indian Assessment Assessment Assessment Assessment Ridge District District District District Bighorn (1992 Honds) No. 92-1 No. 94-1 No. 94-2 No. 94-3 Series B a - s - s - a - a - a - 977,451 242,473 721,637 15,464 134,346 76,281 48,603 16,473 31,083 12,879 10,264 - 1,026,054 258,946 752.720 28,343 144.610 76,251 � 864,094 170,281 541,688 �154,655 88,735 1,638 220,000 70,000 225,000 - - - 1.084,094 240,281 766,688 154,655 88,738 1,638 (58.040) 18.665 (13.968) (126,312) 55,872 74,643 - - 1,012 - - - - - - - (27.833) - - - 1.012 - (27.833) - (58,040) 18,665 (12.956) (126,312) 28.039 74,643 1.815.998 436,489 1.130,685 359,041 194,825 122,049 S 1.757,958 E 455.154 S 1,117.729 E 232.729 E 222.864 $ 196.692 (Continued) -69- � � �' CITY OF PALM DESERT rV' COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES—ALL DEBT SERVICE FUNDS ' (CONTTNUED) For the year ended June 30, 1996 (With comparative totals for the yearended June 30, 1995) � CFD Indian City Ridge Finanoing Redevelopment (1995 Bonds) Authority Agency REVENUES: Tazes S — S — S 23.439,375 Special assessments collected — — — Use of money and property 57,530 96,288 368,210 Other revenues — 246 689.622 TOTAL REVENUES 57,530 96,534 24,497,207 EXPENDINRES: Curren t: General governmental—nondepartmental — — 374,722 Bad debt expense — — 2.229.000 L.oss on iavestment — — 3.627.780 Educational RevenueAugmentatioa Fund — — — Payment toather agencies — — 6,386,052 i Bond discouat 210,776 101,894 — $ond issue costs 103.208 146,177 — i Interest and fiscal charges 286,794 197,376 1,315.178 �' Principal retiremen[ — — — Repayment of advances — — — � TOTAL EXPENDITURES 600.778 445,447 13,932.732 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (543,248) (348,913) 10,564,475 OTHER FINANCING SOURCES(USES} Operating transfers in — 209.475 — Operating transfers out — (6,615,722) (15,664,423) Proceeds from bonds 2.836,312 7,540,000 — Paymen[ to refund escrow agent — — — TOTAL OTHER FINANCING SOURCES(USES) 2.816.312 1.133.753 (15,664,423) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) � EXPENDITURES AND OTHER FINANCING USES 2,293.064 784,840 (5,099,948) FUNDBALANCES—BEGINNINGOFYEAR — — 19.713.857 RESIDUAL EQUITYTRANSFER OUT — — (3,670.000) FUND BALANCES—END OF YEAR S 2,293.064 S 784.840 S 10,943,909 See independent auditors' report. _�p_ � _ __-- - Redevelopment Agency Financing Totals Authotity 1996 1995 S — S 23,439,375 S 22,822,814 — 3.611,437 3,172,435 1,947,765 2,668,744 1,921,647 — 689.868 474.299 � 1.947,765 30,409,424 28,391,195 — 374,722 — — 2,229,000 — — 3,627.780 — — — 781.872 — 6,386,052 6.502,102 85.118 397,788 578,945 211.824 461.209 969,097 8,319,607 12.377,481 10,492,010 1.690,000 2,785,000 2,548,980 — — 334.000 10,306,549 28,639,032 22,207,006 (8,358,784) 1.770,392 6,184,189 � 9,986,555 16.812,763 8,623,166 �s.a6�,oas� �2�,9sa.soz� �is,ssa,ios� 6.305,000 16,681,312 21.103,846 — (9,511,734) — 10.824,507 (4,002.161) 14,342.909 2.465,723 (2,231.769) 20,527,098 35,556.587 63.389,245 42.862,147 — (3,670,000) — E 38,022,310 S 57.487.476 E 63.389.245 —71— CITY OF PALM DESERT � `� `�1►' COMBINING BALANCE SHEET—ALL CAPITAL PROJECT FUNDS June 30, 1996 (With comparative totals for June 30, 1995) � Arts in Capital Public Projecu Places Reserve Streets ASSETS Cash and investments $ 1,031,364 S 2,564,158 S 1.422.462 Cash with fiscal agent _ — _ _ Accounts receivable — _ _ Interestreceivable — — _ Due from other govemmental agencies — — _ Advances to other funds — 5,000,000 — Prepaid expenses and deposits — _ _ TOTAL.ASSETS S 1.031,364 S 10,564,158 S 1,422,462 LIABILITIES AND FUND BALANCES LIABILTTIES: Accouats payable S — S — S 7,541 Accrued liabilities — _ _ Due toother funds — _ _ - Deposits payable — — 225,000 TOTAL LIABILITIES — — 232.541 FUND BALANCES: Reserved 200,000 8,900.038 585,606 Unreserved—designated 831,364 1,664,120 604,315 TOTAI. FUND BALANCES 1.031,364 10.564.158 1.189.921 TOTAI. LIABILITIES AND FUND BALANCES S 1.031,364 S 10,564,158 $ 1,422,462 See independent auditors' report. _72_ � _ _-- Park and Ordinance Drainage Recreation No. 416 Facilities Facilities Signalization Buildings Museum Library S 522,154 S 4,902,513 S 2,940,645 S 268,920 E 1,753,536 E 87,676 S SS6.588 67.087 — — _ _ _ _ — — 4,765,000 — — _ _ S 589.241 S 4,902,513 S 7,705,645 E 268,920 S 1J53.536 E 87,676 S 556.588 E — S — S 15,581 S 33,744 S — $ — $ _ — — — — — — — I — — 15,581 33.744 — — _ 343,458 19.740 5.051.409 84,308 — — _ 245,783 4,882,773 2,638,655 130.868 1,753.536 87,676 556,588 589,241 4,902,513 7,690,064 235.176 1.753,536 87,676 556,588 � S 589.241 E 4.902.313 E 7.705,645 S 268,920 S 1."753.536 S 87,676 S 556,588 i (Continued) —73— r�y CITY OF PALM DESERT ,�r COMBINING BALANCE SHEET—ALL CAPITAL PROJECT FUNDS (CONTINUED) June 30, 1996 (With comparative totals for June 30, 1995) CFD Indian Corporation YMCA Ridge Yard BuildinB (1992 Bonds) ASSEfS Cash and investments S 263,030 S 175.354 S 10346 Cash with fiscal agent — — 988.111 Accounts receivable — — — Interestreceivable — — 4.175 Due from other governmental agencies — — — Advaaces to other funds — — — Prepaid expenses and deposits — — — TOTAL ASSETS S 263,030 S 175,354 S 1,002,632 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable S — S — S — Accrued liabilities — — — Due to other funds — — — Deposits payable — — — TOTAL LIABILITIES — — — FUND BALANCES: Reserved — — — Un reserved—de s ign ated 263,030 175.354 1.002,632 TOTAI. FUND HALANCES 263,030 175,354 1.002,632 I TOTAL LIABILITIES AND FUND BAI.ANCES S 263.030 S 175,354 S 1.002,632 � i I I See independent auditors' report. _�q_ CFD Assessment Assessment Assessment Assessment Indian District Sports District District District Ridge No. 91-1 Complex No. 94-1 No.94-2 No. 94-3 Monterey/10 (1995 Bonds) S 1.987.172 S 597,825 a — a — a — a — a — _ — 6.752 33.164 429,122 — 9,700,900 _ � _ g7 143 1,931 — 128.270 432.794 — — — — — — E 2.419.966 S 597,825 5 6,839 E 33.307 S 431.053 S — S 9.829,170 S 923.001 S — S — S — S — S — a — 923.001 — — — — — — 35.887 — — — 1.461.078 597.825 6,839 33.307 431.053 — 9,829,170 1,496,965 597.823 6,839 33.307 431,053 — 9.829.170 S 2.419.966 S 597.825 S 6,839 5 33.307 S 431,053 S — S 9,829.170 (Continued) —75— CITY OF PALM DESERT STATEMENT OF EXPENDITURES—BUDGEf AND ACTUAL—GENERAL FUND For the year ended Iune 30, 1996 Budget Actual City council S 119,310 S 109.451 City clerk 451.950 423.160 Legislative advocacy 33,800 30,978 Total elections 58.150 24,081 City attorney 144.000 145,160 Legalspecialservices 675,000 615,122 City manager 673385 612,028 Finance 600.275 510.780 107,500 39.081 Auditing 312.962 227.699 Human resources General services 402.446 345.171 Data processing 253,493 197,597 Unemployment insurance 6,900 2.150 Insurance 497.500 533.804 Refund prior year revenue 20'778 Interfund transfers — 49.748 Police services 6,354,274 5,045.365 Animal regulation 90,000 83.010 Nuisance abaremeat 10,100 5.135 Tra�c safety 550.699 469.762 Disaster preparedness 270.407 244,142 Public works administration 3,946,732 2,237.745 Street maintenaace 1,672.479 1,357,312 Street resurfacing 870.819 406,440 Public works curb and gutter 90,600 — Public works cross cut[er 149,000 — Public works tie in paving 19.300 — Public works stripping 165,800 84.692 Public wotks eorporate yard 83,067 53,068 Public works equipment 148.500 97,349 Public works building maintenance 274,830 244,862 Public works auto 2:i,592 45,388 Public works storm water permit 97,500 — Golf cart transportation impmvement — 435 Community promoti0ns 1,941,586 1.662.037 Hautline 36,300 29.684 Art wmmittee 32.326 25.629 Building and sa&ty 929,834 899.604 Code enforcement 632,120 519,944 Economic development 3,875 — Community development 698,314 605,059 Health aad welfare 142,886 114,903 Park maintenance 1,057,367 782.679 Civic center park 340,319 407,998 Contributions to othcr agcncics 439.103 399,998 Retiree — 9,022 TOTALS S 25,408.400 S 19.718.050 See independent auditors' report. —51— � `'� CITY OF PALM DESERT +�/' COMB[NING BALANCE SHEET—ALL SPECIAL REVENUE FUNDS June 30, 1996 (With comparative totals for June 30. 1995) Hou s in g Traffic Gas Mitigation Safety Taz Measure A Fee ASSETS Cash and investments S — S — S 2,539,675 E — Cash with fiscal agent — _ _ _ Accounts receivable _ _ _ _ _ Interest receivable — _ _ _ Due from other govemmental agencies 5,635 — 990,143 — Loans receivable _ _ _ _ Deposits — — — — Inventory held for resale _ _ _ _ Advances to other funds _ _ _ _ TOTALASSETS S 5.635 S — S 3,529,818 S — LIAHILITIES AND FUND BALANCES LIABILITIES: Accounts payable S — S — S 239,780 S — Due to other funds _ _ _ _ TOTAI, LIABILITIES — — 239,750 — FUND BALANCES: Reserved — — 2,786.211 — Unreserved—designated 5,635 — 503.827 — TOTAL FUND BALANCES 5,635 — 3.290.038 — TOTAL LIABILITIES AND FUND BALANCES S 5,635 S — S 3,529,818 S — See independent auditors' report. _52_ � ^ CITY OF PALM DESERT � COMBINING BALANCE SHEET—ALL CAPITAL PROIECT FUNDS (CONTINUED) June 30, 1996 (With comparative totals for June 30, 1995) Redevelopment Totals Agency 1996 1995 ASSETS Cash and investments S 579,872 S 19.663,615 S 20.592,910 Cash with fiscal agent 31.882.163 43,040,212 41.948,067 Accounts receivable 34,934 102,021 95,293 Interestreceivable 694,'754 829.360 481.398 Due from other governmental agencies 6.051,353 6,484.147 4,249.801 Advances co other funds — 12,765,000 12,765,000 Prepaid expenses aad deposits 275,341 275,341 3.157 TOTALASSETS 5 39.518,417 E 83,159,696 S 80,135.626 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable S 1,856,854 S 2,836,721 E 545,442 Accrued liabilities 14,86A 14,864 10.490 Due to otherfunds 5.401,360 5,401,360 3.147.831 Deposics payable — 225,000 225,000 TOTAL LIABILITIES 7.273,078 8,477.945 3.928.763 FUND BALANCES: Reserved 13,760,082 28,980,528 40,804,933 Unreserved—designated 18,485.257 45.701,223 35,401.930 TOTAL FUND BAI,ANCES 32.245.339 � 74,681,751 76,206,863 TOTAL LIAHILITIES AND FUND BALANCES S 39.518.417 5 83.159.696 S 80.135.626 See independent auditors' reporL � —76— � WI' CITY OF PALM DESERT V' � COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALqNCES—ALL CAPITAL PROJECT FUNDS For the yeaz ended June 30, 1996 (With comparative totals for the year ended June 30, 1995) � Arts in Capital . Public Projects Places Reserve Streets REVENUES: Licenses aad permits E 212,394 E _ g _ Intergovernmental revenues — 209,102 _ Use of money and property 60,184 558,799 86,155 Recovery of investment loss _ Other revenues 1.000 _ _ TOTAL REVENUES 273,578 767,901 86,155 EXPENDITURES: Curront: General governmental—departmental _ _ Capi[al ouUay 266,754 �77,Zgp 120,710 TOTAL EXPENDITURES 266,754 777,290 120,710 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 6,824 (9,389) (34,555) OTHER FINANCING SOURCES(USESk Operating transfers in _ Operating transfers out _ Advance ftom othet funds � Proceeds from bonds TOTAL OTHER FINANCING SOURCES(USES) _ EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 6.824 (9,389) (34,555) FUND BALANCES—BEGINNING OF YEAR 1,024.540 10,573,547 1,224,476 FUND BALANCES—END OF YEAR S 1,031.364 S 10.564,158 S 1,189,921 See independent auditors' report. _��_ � _ _ Park and Ozdinance Drainage Recreation � No. 416 Facilities Facilities Signalization Buiidings Museum Library s — s — a — s — s — a — s — 29.979 — — — — — — 30.741 277.394 417,298 16.502 — — — 60,720 277,394 417,298 16,502 — — — 41.431 — 32.330 71.024 — — — 41.431 — 32.330 71,024 — — — 19,289 277,394 384.968 (54,522) — — — 19.289 277.394 384.968 (54.522) — — — 569.952 4,625.119 7.305,096 289,698 1,753,536 87,676 556,588 S 589.241 S 4,902.513 S 7.690,064 S 235.176 S 1,753.536 S 87.676 S 556,588 (Continued) _78_ � � CITY OF PALM DESERT ,�; � COMBINING STATEMENT OF REVENUES.EXPENDITURES AND CHANGES IN FUND BALANCES—ALL CAPITAL PR07ECT FUNDS (CONTINUED) For the year ended Iune 30, 1996 (With comparative totals for the year ended Juae 30, 1995) CFD India❑ Corporation YMCA Ridge Yard Buildiag (1992 Bonds) REVENUES: Licenses and permits a — a — s — Intergovemmeatal revenues — — _ _ Use of money and property — — 186,781 Recovery of investment loss — _ _ Other revenues — _ _ TOTAL REVENUES — — 186.781 EXPENDITURES: Curren t: General governmental—departmental — — _ Capital outlay — — 3,100,335 TOTAI. EXPENDITURES — — 3,100,335 EXCES S OF REVENUES OVER (UNDER) EXPENDITURES — — (2,913,554) OTHER FINANCING SOURCES(USESx Operating transfers in — _ _ Operating traasfers out — _ _ Advanoe ftom other funds — _ _ � Proceeds from bonds _ _ _ TOTAL OTHER FINANCING SOURCES(USES) _ _ _ EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES — — (2,913,554) � FUNDBALANCES—HEGINNINGOFYEAR 263,030 175,354 3,916,186 FUND BALANCES—END OF YEAR S 263,030 S 175,334 E 1.002.632 See independent auditors' report. _�g_ T - CFD Assessment Assessment Assessment Assessment Indian District Sports District District District Ridge No. 91-1 Complex No.94-1 No.94-2 No. 94-3 Monterey/SO (1995 Bonds) s — s — a — a — a — a — s — 3.720.333 — � — — — 3.632 — — — — 2.848 39.684 — 281.818 3,720,333 — — 2.848 39.684 3.632 281,818 — — 891 142 — — 1,336 3,067,289 — 4,249 — 352,425 3.632 — 3.067,289 — 5,140 142 352,425 3,632 1,336 653.044 — (5,140) 2.706 (312.741) — 280.482 — — — — 27.832 — — — — �1.012) — — — — — — — — — — 9,548.688 — — (1.012) — 27.832 — 9,548.688 653,044 — (6,152) 2.706 (284,909) — 9,829,170 843,921 597,825 12.991 30.601 715,962 — — S 1.496,965 5 597,825 E 6,839 S 33,307 S 431,053 S — S 9.829,170 (Continued) —80— . T r✓ CITY OF PALM DESERT `� COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—qLL CAPITAL PROIECT FUNDS For the year eaded June 30, 1996 '��. � (With comparative totals for the year ended June 30, 1995) � ���. Redevelopment Totals II Agcncy 1996 1995 REVENUES: i Licenses and permits S — S 212.394 S 230.269 In[ergovernmental revenues 2.736,964 6,700.010 5,987,529 Use of money and property 2,862.941 4.821.145 1.747.085 Recovery of investment loss — — 307,071 Other revenues 134,646 135.646 107,176 � TOTAL,REVENUES 5.734,551 11.869.195 8,379.130 EXPENDITURES: ' Current: Generalgovernmental—departmental 1J98,231 1,800,600 1.496.616 ��. Capital outlay 13,392,231 21.229,700 22,042,028 �I, TOTAL EXPENDITURES 15.190,462 23,030,300 23,538,644 I EXCESS OF REVENUES OVER ' (UNDER) EXPENDITURES (9,455.911) (11,161,105) (15,159,514) OTHER FINANCING SOURCES(USES} Operating traasfers in 2.879,018 2,906,850 2,165,733 Operating transfers out (2,818.533) (2,819.545) (2,285,686) ' Advance from other fuads — — 8,000,000 I Prceeeds from bonds — 9,548,688 17,288,154 � i TOTAL OTHER FINANCING i SOURCES(USES) 60,485 9,635.993 25.168,201 � EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (9,395,426) (1,525.112) 10.008,687 FUNDHALANCES—BEGINNINGOFYEAR 41,640,765 '76,206,863 66,198,176 FUND BALANCES—END OF YEAR S 32,245.339 S 74,681J51 S 76,206.863 � i See independent auditors' report. _gl_ � � _ CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS � June 30, 1996 Balance Balance July 1, 7une 30, 1995 Additions Deletions 1996 AGENCY FUND ASSETS: Cash and investments E 930.763 S 1.268,127 S 947,232 S 1,251.658 Cash with fiscal agent 2.410,327 539,251 52,563 2.897.015 TOTAL.ASSETS S 3.341.090 S 1,807.378 S 999,795 S 4,148,673 LIABILITIES: Accounts payable S — E 176,260 E — S 176.260 Deposits payable 930,763 1.091,867 947.232 1.075.398 Deferred compensation payable 2,410,327 539,251 52.563 2.897,015 TOTAL LIABILTI'IES S 3.341,090 S 1,807.378 S 999.795 S 4,148,673 TREASURERS 1991 BOND ACT ASSETS: Cash and investments 5 9392 S 555 S 623 S 9,324 LIABILITIES: Deposits payable S 9,392 S 555 E 623 S 9,324 TOTALS ASSETS: Cash and investments S 940,155 S 1.268,682 S 947,855 S 1.260.982 Cash with fiscal agent 2.410.327 539.251 52.563 2,897.015 TOTAI.ASSETS E 3.350,482 S 1,807.933 S 1.000.418 S 4,157.997 LIABILITIES: Aacounts payable S — S 176,260 S — S 176.260 Deposits payable 940,155 1.092.422 947,855 1.084.722 Deferredcompensation payable 2,410,327 539.251 52,563 2.897.015 TOTAL LIABILTI'IES E 3.350,482 S 1.807.933 S 1.000,418 S 4.157.997 See independent auditors' report. _82_ � � PALM DESERT RIDEVELOPMENT 9GENCY CObIPONENT IR�1IT FINANCIAL STATEMENIS WITH REPORT ON ALTDIT BY INDEPENDIIVT CERTIF'IED PUBLIC ACCOUNTAN'IS JLJNE 30, 1996 i : i �I I Pr�L.M DESERT REDEVELOPMENT AI,�NCY TABLE OF CONTEN'IS June 30, 1996 Page Number Independent Auditors' Report 1 General Purpose Financiai Statements: Combined Balance Sheet - All Fund Types and Account Groups 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Gwernmental Fund Types 4 - 5 Statement of Revenues, Expenses and Changes in Retained Earnings - Enterprise Fund 6 Statement of Cash Flows - Enterprise Fund � Notes to Financial Statements g ' 28 Supplemental Informadon: Combining Balance Sheet - All Debt Service Funds 29 - 30 Combining Statement of Revenues, Ezpenditures and Changes in Fund Balances - All Debt Service Funds 31 - 32 Combining Batance Sheet - All Capital Projects Funds 33 - 34 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Capital Projects Fu�ls 35 - 36 Independent Auditors' Compliance Report 37 L�i.e�Z�, �vans � �om�.any CERTIFIED PUBLIG AGCOUNTANTS C�sca2 �. �z,mi.�o CERTIFIED PUBLIC ACCAUNTANT 78401 VON KARMAN,SUITE 200 . 8 �0111t VlOWfE 74733 EL PASEO, SUITE B IRVINE,CALIFORNIA 927157542 PALM DESERT, CALIFORNIA 92260 �na1�s�amo INDEPENDENT AUDITC)RS' REPORT �sis�rraame Agency Members Palm D.esert Redevelopment Agency Falm Desert, Califomia We have audited the general purpose financial statements of the Palm Desert Redevelopment Agency (a component unit of the City of Palm DeseR), as of and for the year ended June 30, 1996 as listed in the table of contents. These financial statemenu are the iesponsibility of the Agency's management. Our responsibility is to expitss an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards a� Gwernment Auditing Standards. Those standards require that we plan a� perform ihe audit to obtain reasonable assurance about whether the general putpose financial statements are free of material misstatement. An audit includes exam;nin�, on a ust basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting pri�ipies used and significaat estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit pmvides a reasonable basis for our opinion. In our opinion, the general purpose financial staumenu referred w above present fairly, in all material respects, the financial position of the Palm Desert Redevelopment Agency as of Ju� 30, 1996, and the results of its operadons and cash flows for its proprietary fund type for the year rhen ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The financial statements lisud in the table of conunu as supplementar� information are presenced for purposes of additional analysis a�are not a required part of the ge�ral purpose financial statemenu of the Palm Desert Redevelopment Age�y. The information has been subjected to the auditing procedures applied in the audit of the ge�ral purpose financial statements and, in our opinion, is fairly stated in all material respects in relation W the general purpose financial statemenu taken as a whole. � , �- �� �� ��� ��� , September ?4, 1996 (except for the information in Note 14a, as to which the dau is October 3, 1996). -1- T -- - GENERAI• PURPOSE FINANCIAL STATEMENTS 7 �t ALM DESERT REDEVELOPMENT AGEM�Y COMBINED BALANCE SHEET—ALL FUNDTYPESANDACCOUNT GROUPS June 30, 1996 Governmental Fund Types Special Debt Capital Revenue Service Projects ASSETS AND OTHER DEBITS ASSETS: Cash and investments (Notes 3 and 11) E 640,400 $ 16,942,468 S 579,872 Cash with fiscal agent(Notes 3 and 11) 1,110J63 35,873,065 31.882,163 Accounts receivable 569,926 — 3q,q;q Interest receivable 1,569 20.561 694,754 Due from other govemmental agencies — 7.826 6.051,353 Due from other funds 5,401,360 � Loans receivable Note 4 � ) 1,568.365 — _ Prepaid expenses and deposits — 2.375 275,341 Inventory held for resale (Notes lg and 7c) 10,950,000 — _ Fixed assets (Note 5) _ _ _ OTHER DEBITS: Amount available in debt service funds _ _ _ Amouat to be provided for payment of long—term debt — _ _ TOTAL ASSETS AND OTI-IER DEBITS $ 14.841.023 S 58.247,655 S 39,518,417 LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES: Accounts payable E 408,296 $ 44,568 S 1,856,854 Accrued liabi]itus — — 14,864 Deposits payable _ _ Deferred revenue Due toother funds — — 5,401,360 Amounts due undez pass—through agreements(Note 6) — 9,236,568 _ General long—term debt(Notes 7 and 14) _ _ _ TOTAL LIABILITIES 408,296 9,281,436 7,273,0"78 EQUITY AND OTkIER CREDITS: Investment in general fixed assets _ _ . Contributed capital(Note 12) _ _ _ Retained earniags: Unreserved _ _ Fund balances (Note 10): Rese rve d � 14,432,727 12,051,947 13,760,082 Uareserved—designated — 36.914,272 18,485.257 TOTAL EQUITY AND OTHER CREDITS 14,432,727 48,966,219 32,245,339 TOTAL LIABILITIES, EQUITY AND OI'HER CREDITS S 14.841,024 S 58,247,655 E 39,518,417 See independent auditors' report and notes to financial sta[ements. —Z— T - - ; Proprietary Fund Type Account Groups Totals (Memorandum Only) General General Fixed Long—Term Enterprise Assets Debt Iune 30, 1996 June 30. 1995 a 298 S90 a _ a — a 18,461.630 S 26.488,899 _ _ — 68.865.991 72.920.794 , _ _ — 604,860 — _ _ — 716,884 903,264 _ _ — 6.059.179 3.700,919 _ _ — 5,401.360 2,851.423 _ _ — 1.568,365 7,720,601 _ _ _ — 277.716 3.15'7 _ _ — 10,950.000 — 3,680.259 77.666.089 — 81,346,348 65,252,523 _ — 48,966.219 48,966,219 55.270,444 _ — 130,948,781 130,948,781 111,359.556 S 3.979.149 S 77.666,089 E 179.915.000 S 374.167,333 S 346.4�1,580 I a — a — s — a 2.309,718 S 637.927 I _ _ — 14,864 9,183 25,600 — — 25,600 — 1.499 — — 1.499 584,364 _ _ — 5,401,360 2,851,423 _ _ — 9,236,868 10.579,574 _ — 179.915.000 179,915,000 166,630,000 27,099 — 179,915,000 196.904.909 151.292,471 — 77,666,089 — 77,666,089 65.252.523 3,670,000 — — 3.670,000 — 282.050 — — 282.050 — _ _ — 40,244,756 43,445.486 _ _ — 55,399.529 56,481,100 3,952,050 77,666,089 — 177.262.424 165,179.109 S 3.979.149 S 77.666.089 S 179.915.000 S 374,167.333 S 346,471,580 —3— - -- _ _1� �LM DESERT REDEVELOPMENT AGET�� COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—ALL GOVERNMENTAL FUNDTYPES For the year ended June 30, 1996 Special Debt Capital Revenue Service Projects REVENUES: Tax increment S — S 23,439,375 S — Use of money and property 173,141 2.315,975 2,862,941 Saleofproperty 1.031.764 — _ Reimbursement from other agencies 912.196 461,827 2,736,964 Otherrevenues 2.020 227,795 134,646 TOTAI.REVENUES 2,119.121 26,444,972 5.734,551 EXPENDITURES: Administrative costs 273.208 — 836,114 Professionalservices 64,127 — 962,117 Planning,survey and design — _ _ Property tax administrative fee — — 37q,7z2 _ � Loss on investment(Note 11) — 3,627,780 — Bad debt(Note 12) — 2,229,000 . Cost ofinventory sold 803,000 — _ Capital outlay 164,187 — 9,828,412 Land purchases — — 3,563,819 Housing subsidies 5,774,074 — _ Decline in value on inventory held for resale 3,347,000 — _ Educational revenue augmentation fund — _ _ Payment to other governmental agencies — 6,386.052 — Debt service (Note '7) Bondissuancecosts — 211,824 — Bond discount — 85,118 — Interest and fiscal charges 178,731 9,634,785 — Principal payments — 1,690,000 — � TOTAI, EXPENDITURES 10,604.327 24,239,281 15,190,462 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (8,485.2061 2,205,691 (9,455.911) OTHER FINANCING SOURCES(USESk Operating transfers in 11,263,431 9,986.555 2,8'79,018 Opera[ing traasfers out (179,000) (21,131,471) (2,818,533) Advaace from City _ _ _ Proceeds from bonds(Note 7) 15,100,000 6,305,000 — Payment to refund escrow agent(Note 7) (6,755.100) — _ TOTAL OTfiER FINANCING SOURCES(USES) 19.429,331 (4,839,91� 60,485 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND � OTHER FINANCING USES 10,944;125 (2,634.225) (9.395,426) FUND BALANCES—BEGINNING OF YEAR(NOTE 13) 3.488,602 55,270,444 41.640,765 RESIDUAL EQUITY TRANSFER OVT(NOTE 12) (3,670,000) FUND BALANCES—END OF YEAR S 14.432.727 S 48.966.219 S 32.245.339 See independrnt auditors' report aad notes to financial statements. —4— T - - (Memorandum Only) June 30, June 30, 1996 1995 S 23.439.375 S 22.822.814 5,352.057 2.592.437 1.031J64 — . 4,110,987 4,154.518 � 364,461 9,113 34,298,644 29,578,882 1.109.322 ysu zi9 954,242 szW 4GL 1.026,244 690,271 — 650,163 374.722 — 3.627,780 . — 2.229,000 . — 803.000. — 9,992.599• 10,593,691 3,563,819 • 3,742,206 5,774,074• 4,145.131 3,347,000� — — 781.872 6,386,052• 6,502.102 211,824 613,623 85,118 351,438 9,813.516 8,731,990 1,690,000 2.214.000 50,034.070 39,970,729 (15.735.426) (10,391.847) 24,129.004 17.265.841 �za,i29.00a� �i�.2es.sai� — s,000,000 zi,aos.oao zs.us,000 (6,755,100) — 14,649.900 36.115,000 (1,085.526) 25,723,153 100,399,811 74,676.638 (3,670.000) — � S 95.644.285 5 100.399.811 —5— _ l� �LM DESERT REDEVELOPMENT AGEI�lCS' STATEMENT OF REVENUES.EXPENSES AND CHANGES IN RETAINED EARNINGS—ENTERPRISE FUND For the yearended 7une 30, 1996 OPERATING REVENUES: Rental income S 490,'772 OPERATING EXPENSES: Adm ini s t ra tive 45.528 Insurance 2�3Z2 Repairs and maiatenance 36,816 Telephone 1,706 Trash disposal 3.521 Property taxes 46.163 Utilities 18,493 Depreciation 54,893 TOTAL OPERATINGEXPENSES 209,442 OPERATING INCOME 281.330 NONOPERATING REVENUES(EXPENSES): Interestincome �Z� NET INCOME 282,050 RETAINED EARNINGS AT BEGINNING OF YEAR _ RETAINED EARNINGS AT END OF YEAR 5 282,050 See iadependeat auditors' report and notes to financial statements. —6— P��M DESERT REDEVELOPMENT AGENG � STATEMENT OF CASH FLOWS ENTERPRISE FUND For the year ended June 30, 1996 CASH FLOWS FROM OPERATINGACTIVITTES: g Zg1.330 Operating income Adjus[ments to reconcile operating income to net cash provided by operating activities: 54,893 Depreciation Changes in operating assets and liabilities: z�,099 Increase in deposit Total adjustments 81.992 NET CASH PROVIDED BY OPERATING ACTNTTIES 363.322 CASH FLOWS USED BY CAPITAL AND RELATED FINANCINGACTIVITIES: 65,153 Acquisition ofcapital assets CASH FLOWS FROM INVESTINGACTNTTIES: ,�ZO Interest income CASH AND CASH EQUNALENTS AT BEGINNING OF YEAR — CASH AND CASI-I EQUIVALENTS AT END OF YEAR a 298'S89 Noncash items included contribution of capital assets in the amount of 53,670.000. See independenl auditors' repor[ and notes to financial statements. —�— i � � NOrI'FS TO FINANQAL STATEMENTS �I I I � PA., : DESERT REDEVELOPMENT AGL '1' N�fES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 1. SLTMMARY OF SIGIQIFICANT F�COUNTING POLICIES (CONTINUED): d. Budgetary Accounting: The Agency uses the folloa+ing procedures in establishing its budgetary data: 1) Before the beginning of the fiscal yeaz, the Fa�ecudve Director submits to the Board of. Directors a proposed budget for the yeaz commenciztg the following July 1. 2) Public hearings are conducted to obtain taxpayer commenu. 3) The Budget is subsequendy adopted through passage of a resolution. � 4) Original appropriations are modified by supplementary appropriadons and transfers � among budget categories. The Board appraves all significant changes. Annual i appropriations lapse at year end. 5) Encumbrances and Contimiing Appropriations are rebudgeted as of July i by Board action. 6) Formal budgetary integration is employed as a management control device during the year for the Special Revenue and Capital Pmject Funds. Formal budgetary integntion is not employed for Debt Service Funds because effective budgetary control is alternatively aclueved through debt indennue pravisions. 7) Budgets are adopted on a basis consistent with generally accepted accounting principles. e. Encumbrances: Encumbrance accounting, under which purchase orders, conuacts and other commitments for the expendinue of monies are recorded in order to reserve that portion of ihe applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances ouutanding at year-end are reported as reservations of fund balances since they are commitments, but do not constitute expenditures or liabilities. See independent auditors' report. -ia --- -�7 pA�LM DESERT REDEVELOPMENT AC`�CY NOrI'ES 1'O FINANCIAL STATEMENTS (Continued) June 30, 1996 1. SUMMARY OF SIGDIIFICANT ACCOUNTING POLICIES (CON'1'INUED): f. Investments: Invesiments are stated at cost. No loss is recorded when market values decline below cost as such declines are considered tempocary. The Agency intends to either hold the imestments until maturity, or until market values equal or e�cceed cost. However, if the liquidity needs of the Agency were to re9aire that investments be sold at a loss subsequent to year end, the decline in value would be recorded as a loss at year end. T'he Agency considers all highly liquid investments with a maturiry of Uuee monihs or less when purchased and all funds held in its commingied pool that are available to it and have the general characteristics of demand deposi[ accounts to be cash equivalents for purpose of the staument of cash flows. g. Imentory Held for Resale: Imentory held for resale is capitalized in the Special Revenue Fund at the lower of acquisition cost or net realizable value. As of 7une 30, 1996> the cost of inventory held for resale was $14,608,321, with an allowance for decline in value in the amount of $3,118,321, for a net aznount of $10,950,000. h, pmperry Tax Calendar: Property taxes are assessed and collected each fiscal year according to the foilowing ProPert�' tax calendar: Lien Date March 1 Levy Date July 1 to June 30 Due Date November 1 - lst Installment March 1 - 2nd Installment Delinquent Datc December 10 - lst Installment April 10 - 2nd Installment Under California law, property caxes are assessed and collected by the counties up w 1% of assessed value, pius other i�reases approved by the voters. The property taxes go into a pool, and aze then allocated to the agencies based on complex formulas prescribed by the state statutes. See independent auditors' report. -11- �ALM DESERT REDEVELOPMENT At7ENCY NO�TES TO FINANCIAL STATEMENTS June 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Description of Funds and Account Groups: The Agency utilizes fund accounting. Its accounts are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The opentions of each fund are accounted for with a sepazate set of seif-balancing accounts that comprises its assets, liabiliaes, fund equiry, revenues and expenditures or expenses, as appropriate. Gwernment iesources are allocated and accounted for in individual funds based upon the purposes for wirich they are to be spent and the means by which spending activities are controlled. The various funds and account gmups are classi£ed for reporting purposes as follows: Governmental Fund Types: S�ecial Revenue Fund - Used to account for the proceeds of specific revenue sources or to finance specified activities as required by law or administrative regulation. The Special Revenue Fund consists solely of the Low and Moderate Income Housing Fund. Debt Service Funds - Used to account for the payment of interest and principal on long-term obligations. Cavital Projects Funds - Used to account for financial resources used for the acquisition or construction of redevelopment projects. Proprietary FY�nd Type: Entemrise Fund - Used to maintain accountability of assets, liabilities, revenues and expenses related to a commencial building owned by the Agency. Account Groups: The Ge�ral Fixed Asset Account Gmun - Used to maintain control and cost information on capital assets owned by the Agency, not accounted for in the Building Enterprise Fund. General fixed assets are recorded as ezpenditures in the Capital Projects Fund at the time of purchase or construction. These assets are capitalized at cost. No depreciation is provided on general fixed assets. The General I.one Term Debt Account Groun - Used to account for the Agency's liability for long-term indebtedness. See independent auditors' report. -8- -- .,� PA�IGf DESERT REDEVELOPMENT A(3f�P4CY DIpR'ES 'PO FINANCIAL STATEMENTS (Continued) June 30, 1996 1. SUMMARY OF SIGIQIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Accounting: Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the fmancial siatements. All govemmental funds are accounted for using the mod�ed accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Expenditures generally are recognized when the related fund liability is incurred. An exception to this ge�ral rule is principal and interest on general long-term debt, which are recognized when due. The accrual basis of accounting is followed by the proprietary fund. Revenues are recognized when they are earned and expenses are tecognized when the liability is incurred. c. Measurement Focus: All grnemmental funds are accounted for on a spending or "financial flav" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of "available spendable resources". Gwemmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other £u�ancing uses) in net current assets. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considere� "available spendable resources", since they do not represent net current assets. Noncuaent portions of long-term receivables are offset by fund balance reserve accounts. The proprietary fund is accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with the activity are included on the balance sheet. Its reported fund equity represents total net assets. Proprietary fund operating statements presents increases (revenues) and decreases (expenses) in total net assets. See independent auditocs' report. -9- PALM DESERT REDEVELOPMENT A�ENCY � N�I'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 1. SUMMARY OF SIGIJIFICANT ACCOUNTING POLICIES (CONTINUED): i. Relationship to the City of Palm Desert: The Palm Desert Redevelopment Agency is an integral part of t6e reporting entity of the City of Palm Desert, California. The funds and account groups of the Agency have been included within the scope of the general purpose fu�ancial statements of the City because the City Council of the City of Palm Desert exercises oversight responsibility over the operations of the Age�y. Only the funds and account groups of the Agency are included herein and these financial statements, therefore, do not purport to represent the financial posirion or results of operadons of the Ciry of Palm Desert. j. Compazative Data: Compazative total data for the prior year have been pcesented in the accompanying financial statements in order to provide an understanding of changes in the Agency's financial position and operations. Hawever, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. k. Total Columas on Combined Statements: Total columns on the combined statemenu are captioned "Memotandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns is not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. ORGANIZATION AND TAX INCREMENT FINANCING: The Agency is a sepazate governmental entity as prescribed in the California Community Redevelopment law and as set forth in the Health and Safery Code of the Srate of California. The Agency consists of Project Ama 1, Project Atea 2, Project Aiea 3 and Pmject Area 4. In addition, the Agency a� the City of Palm Desert (the City) have established the Palm Desert Financing Authority as a joint pauuer of authority betvvecn the Agency and the City for purposes of financing and funding capital impmvements. Transactions related to the joint power for the Agency are recorded in a debt service fund. Agency expenses include capital imprwement projects and operating costs which include required staff support and consultant services. See independent auditors' report. -12- _ . � PA� DESERT REDEVELOPMENT A�l�'�iCY NOrI'ES TO FINANCIAL STATEM$NTS (Continued) June 30, 1996 2. ORGANIZATION AND TAX INCREMENT FINANCING (CONTINUED): The Agency's primary source of revenue comes from property taxes, referred to in the accompanying financial statements as "tax increment revenue". The assessed valuation of all property within each project area was deternnined on the date of adoption of the Project Area. Except for certain amounts provided by specific agreement (see Note 6), properry taxes related to the incremental increase in assessed values after the adoption of the Project Aiea have been allocated to che Agency, while all property taxes on the "frozen" assessed valuation as of the adoption date have been allocated to the City and other districts. 3. CASH AND INVESTMENTS: Cash and investments reported in the accompanyinS financial statemenu consisted of the following: Cash and imestments pooled with the City $ 18,461,630 Cash and imestmenu with fiscal agent 68.865.991 � 87.i327.6,21 The Agency's funds are pooled with the City of Palm Desert cash and imestments in order to generate optimum interest income. The information required by GASB Statement No.3 related to authorized imestments, credit risk, etc. is available in the annual report of the City. 4. LOANS RECENABLE: Soecial Revenue Fund Loans receivable include the followiug: a) A $1,189,400 loan neceivable from Portola Palms Mobilehome Park Acquisition Association, Inc. (the Associadon). A loan of $1,701,500 was made to the Association to allow it to punchase the fust trust deed note securing the proPerty from Ring Financial, Inc. The Redevelopment Agency's loan is secured by a first nvst deed and as of Ju� 30 1996 $512,100 has been iepaid to the Redevelopment Agency from the sale of individual lots by the Association. The cemaining balance will be repaid as the Association sells other lots in the mobile home pazk. b) The Agency has loaned $212,830 in below market loans, secured by deeds of trust, to eligible low income households. Monthly payments of interest and principal are due over a period of 30 years unless the homes are sold, in which case the entire loan balance is due and payable. See independent auditors' report. -13- :� ,M DESERT REDEVELOPMENT P. ^ ;NCY , NOrI'ES TO FINANCIAI, STATEMENTS �, (Continued) June 30, 1996 4. LOANS RECEIVABLE (CONTINUED): c) T'he Agency has $16,398 in home impmvement loans. Paymenu of interest and principal aze due monthly on these loans. d) The Agency has a loan receivable which is secured by a deed of trust on the Pbrtola Palms Mobilehome Park property in the aznount of $149,737. The balance on this loan will be paid when the Association has sold all the lou ip the mobile park home. Other L.oans: The Agency has issued loans for several other projects, all of which are secured by a deed of trust. A valuation allowance equal to the loan balance has been recogaized where there is a significant possibility that these loans either become uncoAectible or forgiven by the Agency at a futum date if all the terms of the loans have been met. Detailed informadon for these loans is as follows: Loan Balance Interost Maturity Proiect Name Outstandin¢ Rarc Date Secured Bv SoecialProvisions ofLoan � Self-Help Housing Pmgram S 429,000 7.25% 30 yrs. Deed of Trust L.oan balance and inreces[ or 2024 due upon maauiry,w�paid balance of loan or inrerest will beaz an inrcmst rate of 12%. Home Improvement Loans 20,095 N/A N/A Deed of Trust Lnan is payabk upon charge ot transfer of dUe, refinancing or upon the death of the borrower. Portola Palms Mobilehome Park 490,775 5.00% 15 years Deed of Ttust Loan balance and inoercsc Crom date due upm maa�city.If deb»r of loan is not in default with the wte, deed of hust, loan agreement or roshictive coveaant,t6en the Agency will Corgive 2`�,per annum of the interest. Desert Rose 114,137 3.00% Year 2026 Deed of Trust Loan aill be forgiven at maturiry unless the deb[or is in violarion of t6e unit cegulamry agceemen[or ihe " deed of�ust. See independent auditors' report. -14- __ _ 7� PAI�,DESERT REDEVELOPMENT AGE� NOrTES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 5. FIXED ASSETS: A summary of changes in Fixed Assets for the year ended June 30, 1996 is as follows: General Fixed Assets Beginning Ending Balance Additions Deletions Balance Iand $43,833,301 $ 3,563,819 $ 777 $4'7,396,343 Buildings and impmvements 16,820,221 8,455,279 - 25,275,000 Equipment 8,079 12,486 - 20,565 Work-in-Pmgress 4.590.922 5.044379 4.661.620 4.973.681 $65.252.523 $17.075.963 $ 4.662.397 $77.666.089 Certain land has been included in the ge�ral fixed assets account group until a determination is made on the use of the land. EnterQrise Fund Beginning Ending Balance Addirions Deletions Balance Building $ - $ 3,670,000 $ - $3,670,000 Impmvemenu - 65.152 - 65.152 Total - 3,735,152 - 3,735,152 I.ess accumulated deprecisuon - (54.8931 - (54.893) $ - $ 3.680.259 $ - 3 680 259 Fixed assets purchased by the Enterprise Fund are capitalized at cost, wlille contributed assets are recorded at fair market value on the date donated. Depreciation is charged to operations using a straight-line method, based on the useful life of the asset. The estunated useful life of the building and impmvements is 40 years. See independent auditois' report. -15- F. M DESERT REDEVELOPMENT Ai.^_1CY NQI'ES TO FINANCIAL STATEMENTS � (Continued) � June 30, 1996 (. AMOUNTS DUE UNDER PASS-THROUGH AGREEMENTS: Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are, except where otherwise provided by specific agreement, allocated to the Agency. The Agency has entered into various pass-through agreements with other agencies to allocate its tax increment revenue. At June 30, 1996, the Agency is holding $9,236,868 in trust on behalf of other agencies and entities related to specific pass-chrough agreements detailed as follonvs: Balance Balance at July 1, at June 30, Entiry 1995 Additions Pavments 1996 Riverside Counry - Capital Imprwement $ 7,645,479 S 3,203,197 $ 5,462,802 $ 5,385,874 * Riverside Counry - Schools 111,220 70,939 170,265 11,894 Riverside County - Library 428,401 237,854 - 666,255 " Riverside County - Fire 179,927 348,957 162,500 366,384 Coachella valley Mosquito Abatement District 104,227 101,470 104,227 101,470 Coachella Valley Water District 180,661 132,439 - 313,100 Desert Community College District 100,258 115,311 73,522 142,047 ' Desert Sands Unified School District 1,090,585 601,724 157,421 1,534,888 * Coachella Valley Recreation and Park District 35,661 40,680 35,661 40,680 Coachella Valley Resources Disuict 2,601 582 - 3,183 Palm Springs Unified School District 5,072 432 - 5,504 County Juvenile Health Dis[rict 312,133 442,691 505,253 249,571 Ahmanson Trust 383349 32 669 - 416.018 $ 10.579.574 $ 5.328.945 6 671 651 $ 9.236.868 * T'he Redevelopment Agency has used bond proceeds for the construction of capital impmvements which benefit these entity's. These entities have agreements with the Redevelopment Agency will allow it to use a portion of these amounu to offset debt service costs. See independent auditors' report. -16- 7 PA�;DESERT REDEVELOPMENT AGT�,."Y NOrt'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG TERM DESf: T'he changes in the Generai Long Term for the yeaz ended June 30, 1996 were as follows: Balance at Balance at July 1, June 30, 1995 Additions Deletions 1996 Advances from City $ 19,000,000 $ - $ - $ 19,000,000 Tax Allocation Bonds 147,630,000 6,305,000 8,120,000 145,815,000 1994 Multifamily Housing Revenue Bonds - 15.100.000 - 15.100.000 $166.630.000 21 40 000 8 120 000 $179.915.000 a. Advances from Ciry: The Redevelopment Agency has received advances from the City which have been recorded as an "Other Financing Sources" in the Agency's Capital Project Funds. Since payment by the Agency back to the Ciry will be made from t� increment revenues in future years, the debt from the Agency to the City has been classified in the Long Term Debt account group. Below is a summary of the activity for the advances from the City to the Redevelopment Agency: Date of Rates of tlmount Beginning Ending Issue Interest Authorized Balance Additions Payments Balance 12/OS/86 Varies $6,000,000 $ 6,000,000 $ - $ - $ 6,000,000 09/23/93 Yaries 5,000,000 5,000,000 - - 5,000,000 03/23/95 Vazies 8,000,000 8.000.000 - - 8.000.000 Principal Balance 19,000,000 - - 19,000,000 Accrued Interest 1.085340 1.085.340 $19.000.000 1 08 0 340 $19.000.000 See independent auditors' report. -17- PO-r.M DESERT' REDEVELOPMENT Af'-�NCY NOrI'ES 'PO FINANCIAL STATEMENTS (Continued) I! June 30, 1996 7. GENERAL LONG-TERM DEBT (CONTINUED): b. Tax Allocation Bonds: Tax allocation bonds are special obligations of the Agency and the Palm Desert Financing Authority (a component unit of the Agency), and are secured by an irrevocable pledge of tax revenues and other funds as provided under the Bond Resolution. The Bonds, and any interest thereon are not a debt of the City, the State of Califoraia or any of its political subdivisions and neither the Ciry, the State of California nor any of iu political subdivisions is liable on the Bonds, nor in any event shall the Bonds, and interest thereon be payable out of any funds or properties other than those pmvided under the Bond Resolution. 1995 Series Tax Allocation Revenue Bonds (Proiect Area No. 11 In June 1995, the Palm Desert Financing Authority issued $24,025,000 of Tax Allocation Bonds, (Project Acea No. 1) Series 1995. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency w finance certain redevelopment activides of the Agency in Project Aiea No.l. Interest rates on the bonds vary from 4.0°!o to 5.2°Io per annum payable semiannually on April 1 and October 1 with principal maturing annually. The future debt service requirements on the 1995 Series Tax Allocation Revenue Bonds (Project Aiea No. 1) are as follows: Year Ending June 30. Principal Interest Total 1997 $ 160,000 $ 1,403,818 $ 1,563,818 1998 170,000 1,396,778 1,566,77 8 1999 180,000 1,3 88,873 1,568,873 2000 185,000 1,3 80,323 1,565,323 2001 195,000 1,371,350 1,566,3 50 Thereafter 23.135.000 21.125.665 44.260.665 $ 24.025.000 $ 28.066.807 $ 52.091.807 See independent auditocs' report. -18- - __ 1' ,r,.LM DESERT REDEVELOPMENT�;ENCY NOR'ES TO FINANCIAL STATEMENTS (Continued) 7une 30, 1996 7. GENERAL LONG-TERM DEBT (CONTINUED): b. Tax Allocation Bonds (Continued): 1995 Series Tax Allocation Revenue Bonds (Proiect Aiea No. 2) In June 1995, The Palm Desert Financing Authority issued $4,090,000 of Tax Allocation Bonds, (Project Area No. 2) Series 1995. The Palm Desert Financing Authoriry loaned the bond procceds to the Palm Desert Redevelopment Agency to finance certain redevelopment activities of the Agency in Project Aiea No. 2. Interest rates on the bonds vary from 4.75% to 5.24b per annum payable semiannually on February 1 and August 1 with principal maturing annually on August 1. The future debt service iequirements on the 1995 Series Taz Allocation Revenues Bonds (Project Area No. 2) are as follows: Year Ending June 30. Principal Interest Total 1997 $ - $ 239,935 $ 239,935 1998 - 239,935 239,935 1999 - 239,935 239,935 2000 25,000 239,342 264,342 2001 30,000 238,020 268,020 Thereafter 4.035.000 3.771.435 7.806.435 $ 4.090.000 $ 4.968.602 $ 9.058.602 See independent auditors' report. -19- PALM DESERT REDEVELOPMENT '�ENCY NOrfES 'PO FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG-TERM DF.BT (CONTINUED): b. Tax Allocation Bonds (Continued): 1992 Series A Tax Allocation Revenue Bonds (Proiect Area No 1 as Amendedl In April 1992, the Palm Desert Financing Authority issued $100,000,000 in Palm Desert Financing Authority Tax Allocation Revenue Bonds (Pmject Area No. 1 as Amended) 1992 Series A. The Authoriry loaned $42,764,702 of the $100,000,000 to the Agency to advance refund the 1985 Tax Allocation Bonds, 1985 Tex Allocation Refunding $onds and the 1989 Tax Allocation Bonds. The Authority also loaned $40,844,733 to the Redevelopment Agency to fund additional projects in the project area. The remaining bonds are comprised of$15,965,000 of "Ctirrent Intcrest" Bonds, $39,350,000 of Dutch Auction Floating Securities and $39,350,000 of Imerse Fioating Securities. Principal maturides of the C�rrent Interest Bonds occur annually on April I 1. Interest on the Current Interest Bonds varies from 4.00% to 6.625% and is payable i semi-annually on April 1 a� Ocwber 1. The Dutch Aucdon Floating Securides and Inverse Floating Securities mature each April 1 through 2022. Interest on tt►e Dutch i Auction Floating Securities and Imerse Floating Securides is due generally every 35 days from that date. The future estimated debt service requiremenu on the 1992 Series A Tax Allocation Revenue Bonds (Project Area No. 1 as Amended) are as follows: Year Ending June 30. Princ'� Interest Total 1997 $ 1,580,000 $ 5,777,751 $ 7,357,751 1998 1,670,000 6,170,479 7,840,479 1999 1,760,000 5,595,557 7,355,557 2000 1,860,000 5,974,935 7,834,935 2001 1,975,000 5,385,743 7,360,743 Thereafter 85.820.000 71.670.610 157.490.610 $ 94.665.000 $100.575.075 $195.240.075 See independent auditois' report. ! -Za I _ _ I P M DESERT REDEVELOPMENT Ar""NCY �r' „r+ NOR'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG-TERM DEBT (CONTINUED): b. Ta�c Allocation Bonds (Continued): 1992 Series A Tax Allocation Revenue Bonds (Proiect Atea No. 21 In August 1992, the Palm Desert Financing Authority issued $17,505,000 of Tax Allocation Bonds, (Project Atea No. 2) 1992 Series A. T'he Authority loaned the bond proceeds to the Agency to finance certain redevetopment activities of the Agency in Project Area No. 2. Intcrest rates on the bonds vary from 2.7% to 6.125% per annum payable semiannually on February 1 and August 1 with principal maturing annually on August 1 from 1993 to 2002. The future debt service requuements on the 1992 Series A Tax Allocation Revernie Bonds (Project Acea No. 2) are as follows: Year Ending . June 30. Princinal Interest Total 1997 $ 280,000 $ 992>462 $ 1,272,462 1998 290,000 979,988 1,269,988 1999 300,000 966,337 1,266,337 2000 315,000 951,338 1,266,338 2001 335,000 934,753 1,269,753 Thereafter 15.210.000 12.406.538 27.616.538 I $ 16.730.000 $ 17.231.416 $ 33.961.416 1 See independent auditois' report. -21- T� .M DESERT REDEVELOPMENT A 'NCY NOrI'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG-TERM DEBT (CONTINUED): b. Tax Allocation Bonds (Continued): 1995 Series A - Tax Allocation Revenue Refundine Bonds In August 1995, the Palm Desert Financing Authority issued $6,305,000 in Ta�c Allocation Revenue Refunding Bonds 1995 Series A. The proceeds fmm the tax allocation bonds were loaned to the Agency to provide funds to refut�d in advance $6,430,000 of the 1988 Tax Allocarion Bonds. 'I't�e advance refunding resulted in an economic gain of $907,760 (difference between the present value of the annual debt service payments between the old debt and new debt) and a decrease in aggregate debt service payments of $1,441,052. Interest rates on the Bonds vary ftom 3.80% to 5.55% with interest payable semi-annualiy on Mazch 1 and September 1 with principal maturing annually on September 1. Debt service requirements to maturity are as follows: Year Ending June 30. Principal Interest Total 1997 $ 350,000 $ 300,208 $ 650,208 1998 385,000 285,858 670,858 1999 400,000 269,758 669,758 2000 420,000 252,223 672,223 2001 435,000 233,300 668,300 Thereafter 4.315.000 977.971 5.292.971 'i $ 6.305.000 $ 2.319318 $ 8.624318 �I i �I ISee independent auditors' report. -22- T P�,�I DESERT REDEVELOPMENT �CY NOrI'ES 'In FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG TERM DEBT (CONTINUED) b. Tax Allocation Bonds (Continued): Below is a summary of the changes in tax allocation bonds: Balance a[ Balance at Julv 1. 1995 Additions Pavments June 30. 1996 1995 Tu Allocation Bonds (Project Acea No.l) S 24,025,000 S - S - S 24,025,000 1995 Tax Allocadon Bonds (Pmject Area No.2) 4.090.000 - - 4.090.000 1992 T�ax Allocation Bonds (Projoct Area No.l as Amended) 96,090,000 - 1.425,000 94.665,000 1992 Tax Allocadon Bonds (Project Area No.2) 16,995,000 - 265,000 16,'730,000 1988 Tu Allocadon Bonds 6,430,000 - 6,430,000 - 1995 Refunding Tu Allocation Bonds 6.305.000 6305,000 S 14'1.630.000 E 6.305.000 S 8.120.000 S 145.815.000 c. 1994 Multifamily Housing Revem►e Bonds: In August 1994, the Palm Desert Redevelopment Agency issued $15,100,000 in Variable Rate Demand 1994 Multifamily Housing Revenue Bonds (Bonds). The Agency issued the bonds to finance a loan to Civic Center Bazrio Housing Corporadon (Corporation), a California Non-Profit Public Benefit Corporadon. Puisuant to a I financing agreement betwcen the Agency and the Corporetion dated August 1, 1994, the Agency loaned funds to provide permanent financing for 161 newly constructed residences and related improvemenu in the City of Palm Desert to be owned by the Corpontion and sold or leased, with an option to pu�hase, to low and modecate income persons and families. At the time of the issuance of the Bonds, it was anticipated that appmximately one-half of the residences would be sold within 24 months from the issvance of the bonds and that the proceeds of the sales wvuld be used to redeem the Bonds. It was also anticipated that all homes would be sold within 6 years and that all the Bonds would be redeemed. See independent auditors' report. -23- � ^.LM DESERT REDEVELOPMENT �..�ENCY NOTES 'P� FINANCIAL STATEMENTS (Continued) June 30, 1996 7. GENERAL LONG-TERM DEBT (CONTINUED): r. 1994 Multifamily Housing Itevenue Bonds (Continued): The Bonds are secured by a letter of credit w}uch expires six years from the date of the issuance of the Bonds with up to two one-yeaz extensions exercisable by the borrower at the credit bank's sole and absolute discretion. The Bonds are issued in denominations of$100,000 or any integral multiple thereof for Bonds bearing interest at the variable rate, and in denominations of $5,000 or any integral multiple thereof for Bonds on which the interest is converted to a fixed rate. The Bonds mature on August 1, 2000, and are subject to prior redemption. Interest on the variable rate Bonds is payable on the second �esday of each month coaunencing September 13, 1994. Interest is payable February 1 and August 1 of each year on the Bonds, which convert to a fixed rate. In April 1996, the Agency acquired the assets (the 161 homes) and assumed liability for the $I5,100,000 1994 Multifamily Housing Revenue Bonds as the project was not being administered properly. 8. BOND RESERVE REQUIREMENTS: At June 30, 1996 the reserve balance requiremenu and actual balances vuere as follows: Issue Reguirement Actuat i 1992 Series A 1�x Allocation Bonds ' (Project A.rea No. i as Amended) $ 7,841,271 $ 16,044,756 ' 1992 Series A Tax Allocation Boads (Project Acea No. 2) $ 1,278,556 $ 1,624,198 1995 Series 'Iaz Allocation Bonds ', (Pmject Atea No. 1 as Amended) $ 1,955,525 $ 16,821,348 1995 Series Tax Allocation Bonds (Project Aiea No. 2) $ 343,900 $ 2,817,115 I 1995 Refunding Tax Allocation Bonds $ 630,500 $ 714,893 These actual amounts are included in the Fund Balance reserved or designated for Debt j Service (see Note 10). i See independent auditors' report. -24- PAJ.M DESERT REDEVELOPMENT AGENCY , v�r y�, NOQ'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 9. DEFEASED OBLIGATIONS: The Agency defeased certain Redevelopment obligations by placing the pmceeds of new obligations in an irrevocable trust to provide for all futuce debt service payments on the old obligations. Accordingly, the trust account assets and the liability for the defeased obligations are not included in the accompanying financial statements. The amounts of defeased debts still outstandiag at June 30, 1996 were as follows: Defeased Amount Issue Out�tandin¢ 1982 Ta�r Allceation Bonds $ 3,720,000 1989 Tax Allocation $ 4,720,000 10. RESERVES AND DESTGNATTONS OF FUND BALANCE: Special Debt Capital Revenue Service Projects Reserves Fund Fund Fund Continuing appropriations $ - $ - $ 9,127,723 Encumbrances 47,446 - 4,357,018 Loans receivable 1,568,365 - - Piepaid expenses - 2,375 341 Deposits - _ Z75�ppp Debt service - 12,049,5'l2 - Low income purposes 1,866,916 - - Inventory held for resale 10.950.000 � 14.432.727 $ 12.051.947 $ 13.760.082 Desi¢nations Debt service $ - $ 36,914,272 $ - Capital outlay - 18.485.257 $ - $ 36.914.272 $ 18.485.257 See independent auditors' report. -25- �.LM DESERT REDEVELOPIvIENT . ,ENCY NOrI'ES 1'0 FINANCIAL STATEMENTS (Continued) June 30, 1996 10. RESERVES AND DESIGNATIONS OF FUND BALANCE: Reserved for Continuin¢ Appmnriations - This reserve is for appropriations for capital projects which are unexpected as of June 30, 1996 and are carried forward as continuing appropriations to be expended in 1996-97. Reserved for Encumbnnces - These reserves represent the portion of pu�hase orders awarded for which the goods or services had not yet been received at June 30, 1996. Although all appropriations lapse at year-end, even if encumbered, the City intends either to honor the contracts in progress or to cancel them. Reserve for encumbrances are rebudgeted on July i, by Board action. Reserved for Receivables - This reserve is set up to reflect the non-current portion receivables so that they will not be considered as curmnt funds available. Reserved for Prenaid Ex�enses - This reserve nprese�s contracted obligations for cash payments made before June 30, 1996, but not recognized as an expenditure until after July 1, 1996. Reserved for Deoosits - This reserve is W indicate that these funds are not available w finance current expenditures. Reserved for Debt Service - These reserves for Debt Service iepresent reserves accumulated by the Agency that are legally restricted to the payment of long-term debt principal and interest amounts that matute in future years. Reserved for I.�v Income Purposes - This reserve is for amounts set aside from rax increment money received by the Agency and is to be spent on pmjects benefitting low income fanvlies. Reserved for Inventory Held for Resale - This reserve for inventory held for resale has been set aside to indicate that they will not be considered as current funds available. Designated for Debt Service - These funds are designated for payment of principal and interest on General Long-Term Debt. Desienated for Canital Outlav - These funds are designed for capital ouday for future pmjects. See independent auditors' report. -26- r PP�4 DESERT REDEVELOPMENT AG''TCY w✓ N�I'ES TO FINANCIAL STATEMENTS (Continued) June 30, 1996 11. LOSS ON INVESTMENT: In December 1991, it was learned that the Securities and Exchange Commission(SEC) was conducting an imestigation of the Institutional Treasury Management (ITM) and had frozen certain assets administered by ITM including Agency assets. It was subsequentiy announced that ITM had diverted funds and/or securities in the client accounts to other accounts without the clients' knrnvledge. The Agency records identified $4,212,144 being invested with ITM, however the investtnent could not be verified with a third party. For the year ended June 30, 1996, the Agency recorded a loss on the imestment in the amount of $3,627,780, which represents the original investment of $4,212,144 less recoveries of $5&4,364 from other parties. 12. CONTRffiUTED CAPTTAL: During fiscal year 1995-96, the Debt Service Fund mxived a building with a value of $3,670,000 in consideration for a note receivable with a cost basis of$5,899,000. A bad debt expenditure of $2,229,000 was recorded in the Debt Service Fund. The uansfer of the building from the Debt Service Fund to the Building Enterprise Fund was recorded as a residual equity uansfer out in the Debt Service Fund and as contributed capital in the Building Enterprise Fund. 13. RESTATEMENT OF BEGINNING FUND BALANCE: Fund balance in the Special Revenue Fund wds restated as follows: Fund Balance - June 30, 1995 $ 3,015,377 Reduce loans receivable to record uncollectible amounu as of June 30, 1995 (165,838) Increase in deposits for amounu incorrecUy expended in prior years 639.063 Fund Balance - June 30, 1996 as restated $ 3.488.602 See independent auditocs' report. -27- F".M DESERT REDEVELOPMENT A�'NCY NOti'ES TO FINANCIAL STATEMENTS (Continued) I � June 3Q 1996 ' 14. SUBSEQUENT EVENTS: a. 1996 Tax Allocation Revenue Bonds On October 3, 1996, the Palm Desert Redevelopment Agency issued $10,880,000 1996 Series A (Desert Rose Pmject Refunding) and $8,170,000 1996 Series B bonds for the purpose of refunding its $15,100,000 Variable Rate Demand Multifamily Housing Revenue Bonds and finance wvrking capital to preserve the supply of low and moderate income housing within the City of Palm Desert and pay costs of issuance of the bonds. b. Series 1996 - $7,010,000 Lease Revenue Bonds In August 1996, the Palm Desert Financing Authority (the Authority) issued $7,010,000 in Lease Reveirue Bonds. 'fhe proceeds of the Bonds will be used to Finance the construction of a Counry Adminisuative Center and related facilities upon a site located in the City of Blythe, County of Riverside, fund a teserve account, fund approximately eight months of capitalized interest and pay costs of issuance of the Bonds. The Authority will lease the site from the County of Riverside (the County) pursuant to a site lease dated August 1, 1996, by and between the Authority and the County and will lease back to the Authoriry the site and the facilities (together "the Project") pursuant to a I.ease Agreement dated as of August 1, 1996, by and between the Authority and County (the "Lease"). Under the Lease, the County will pay the Trustee Base Rental Payments to the trustee in an amount equal to the scheduled debt service payments on the Bonds. The Authoriry will assign iu right w neceive the Base Itental paymenu to the trustee for the benefit of the owners of the Bonds. See independent auditors' report. _Zg_ _ _ __ -- I ` ,' I � �� � SUPPLEMENTAL INFORMATION � i I! � I � � i � i � I;i I I I � i i i � I T �MILM DESERT REDEVELOPMENT AGEN�/ COMBINING BALANCE SHEET--ALL DEHT SERVICE FUNDS June 30, 1996 Project Projec[ Project Project Area 1 Area 2 Area 3 Area 4 ASSETS Cash and investments S 11.541,234 S 944,440 S 1,119,076 S 1,209,034 i Cash with fival agent — — — — Interest receivable — — — — Due from other governmental agencies 3.387 306 799 3,334 ', Due fmm other funds 4,518,052 883,308 — — '� Loans receivable — — — — ��, Prepaid expenses and deposi[s 2.375 — — — '�, TOTALASSETS S 16,065,048 S 1.828,054 S 1,119,875 E 1.212.368 �i i LIABILITIES AND FUND BALANCES � LIABILITIES: I Accounts payable S 44,568 S — S — S — � Deferred revenue — — — — ! Amounts due under � pass—through agreements 7.507.232 293,318 532.490 903.628 ; i TOTAI.LIABILTTIES 7.551,800 293.518 532.490 903,628 FUND BALANCES: I Reserved: � � Prepaid expenses 2.375 — — — � Loan roceivable — — — — � Debt service — — — — I Unreserved: '��. Designated for debt service 5.510,873 1,534,536 587,385 308,740 ' TOTAL FLTND BALANCES 8.513,248 1,534,536 587,385 308,740 j � TOTAL LIABILITIES � AND FUND BAL.ANCES S 16,065,048 S 1,828,054 S 1.119,875 S 1,212.368 I i � � i i I, i i —29— T - Financing Totals Authority 1996 1995 � S 2.128.684 S 16.942.468 S 22.039.498 ' 35.873.065 35,873,065 35.265.445 20.561 20,561 440.535 - — 7.826 — — 5,401,360 2,851,423 — � — 5,899,000 — 2,375 — S 38,022,310 S 58.247,655 S 66,495,901 S — S 44,568 S 61,519 — — 584,364 — 9.236.868 10,579,574 — 9.281.436 11,225,457 — 2.375 — — — i,899,000 12,049,5 72 12,049,572 11.419.25 2 25.972,738 36,914.272 37.952,192 38,022.310 48,966,219 55.270,444 5 38.022,310 E 58,247.655 E 66,495.901 _;p_ � r ^OLM DESERT REDEVELOPMENT AGEN�Y � r COMBINING STATEMENT OF REVENUES.EXPENDITURES AND CHANGES IN FUND BALANCES—ALL DEBT SERVICE FUNDS For the year ended June 30. 1996 Project Project Project Projec[ Area 1 Area 2 Area 3 prea 4 REVENUES: Taxiacrement S 16,539,718 S 5.113,949 S 550.528 S 1,235,180 Use of money and property 204,421 106,258 26.816 30,715 � Reimbursement from other agencies 461,827 — — _ �. Otherrevenues ZZ7,79g _ _ _ '� I TOTAL,REVENUES 1'7,433,761 5,220,207 577.344 1,265,895 EXPENDITURES: Property tax admiaistrative fee 292,481 60,171 7.856 14,214 Loss on investment 3,627,780 — — _ Bad debt 2,229,000 — — _ �. Educational revenue augmentation fund — — - — _ � Payment to other governmental agencies 4,058,586 1,586,471 76,976 664,019 Bondissuancecosts — — _ _ '�. Bond discouat — _ _ _ �. Interest and fiscal charges 160,017 1,155,161 — — '�� Principal payments — — — — TOTAL EXPENDITURES 10.367,864 2,801,803 84,832 678.233 � EXCES S OF REVENUES OVER � (UNDER) EXPENDITURES 7,065,897 2,418,404 492,512 587.662 ; OTHER FINANCING SOURCES(USES} i Operating transfers in — _ _ _ Operating transfers out (12,805,501) (2,441,295) (110,106) (307,521) � Proceeds from bonds — _ _ _ '�, TOTAL OTHER FINANCING I SOURCES(USES) _.(12,805.501) (2,441.295) 11( 0.106) (307,521) I EXCESS OF REVENUES AND I OTHER FINANCING SOURCES i OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (5,739.604) (22,891) 382,406 280,141 FUND BALANCES—HEGINNING OF YEAR 17,922,852 1,557.427 204,979 28,599 � RESIDUAL EQUIT'Y TRANSFER OUT (3,670,000) — FUND BALANCES—END OF YEAR E 8.513.248 E 1.534.536 S 587,385 S 308.740 i —31— I. II I T Financing Totals � Authority 1996 1995 S — S 23,439,375 S 22.822.814 1.947,765 2,315.975 1,628,383 — 461,827 — — 227,795 461,799 1,947,765 26,444,972 24,912.996 � — 374.722 — — 3,627.780 — — 2,229,000 — — — 781.872 — 6.386.052 6.502.102 211,824 211.824 613.623 85,118 55,118 351.438 8.319,607 9,634.785 8.260,985 - 1,690,000 1,690,000 1,954,000 10,306,549 24.239,281 18.464,020 (8.358,784) 2,205,691 6,448,976 9,986,555 9.956,555 8,547,692 (5.467,048) �zi,iai.a�i� �is.3s6,aai� 6,305,000 6,305,000 I8.850,555 10,824,507 (4,839,916) 12,061,406 2,465,723 (2,634.225) 18,510.382 35,556,587 55,270,444 36,760,062 — (3,670.000) — S 38,022,310 S 48,966,219 S 55.270,444 . _g2_ T r"LM DESERT REDEVELOPMENT qGEN"" � � COMBINING BqLANCE SHEET—ALL CAPITAL PROJECTS FUNDS 7une 30, 1996 Project Project Project Project Area 1 Area 2 Area 3 Aroa 4 � ASSETS ' Cash and investments S — E 411,773 S 84,437 S 83.662 I�� Cash with fiscal agent 26.880,022 5,002.141 — — Accounts receivable 34,156 778 — — Interest receivable 575,060 119,694 — — i Due from other governmental ageacies 6,OS1,353 — — _ Deposits — 275,000 — — I Prepaid ezpenses 341 — — _ TOTALASSETS S 33,540,932 S 5,809,386 S 84,437 5 83.662 LIABILITIES AND FUND BALANCES LIABILITIES: Accouats payable S 70,947 S 1,768,930 S 6,977 S 10,000 Accrued liabilities 14,864 — — — Due toother funds 4.518,052 883,308 — — TOTAI.LIABILTTIES 4,603,863 2,652,238 6,977 10,000 FUND BALANCES: Reserved: Deposits — 275,000 — _ Prepaid expeases 341 — _ _ Continuing appropriations 9,1Z7,723 _ _ _ Encumbrances 1,431.847 2,882,148 23,023 20.000 Unreserved: Designatedforcapitaloutlay 16,377,158 — 54,437 53,662 TOTAI. FUND HALANCES 28,937,069 . 3,157,145 77,460 73,662 TOTAL LIABILII'IES AND FUND BAI,ANCES S 33,540,932 S 5.809,386 S 84.437 E 83,662 —;;— T _ Totals 1996 1995 S 579,8'I2 5 3,702.513 31,882,163 36,872,668 34,934 — 694.754 459,248 6.051,353 3.700,919 275,000 — 341 3,157 S 39,518,417 E 44,738,505 S 1,856,854 S 237.134 14,864 9,183 5.401,360 2,851.429 7.2�3.078 3.09'7.740 275,000 — 341 3,157 9,127,723 ; 21.974,708 4,357,018 1.264,351 18,485,257 18,398,549 32,245,339 41,640,765 S 39,518.417 S 44.738,505 —34— T P' T.M DESERT REDEVELOPMENT AGEN�'" '�' 'yr I COMBINING STATEMENT OF REVENUES,EXPENDINRES AND CHANGES IN FUND BALANCES—ALL CAPITAL PROJECTS FUNDS i Frn [he year ended Iune 30, 1996 Projeot Project Project Projec[ Area 1 Atea 2 Area 3 Area 4 REVENUES: Use of money and property S 2,509,498 S� 340,673 S 7.805 S 4.965 Reimbursement from other agencies 2,736,964 — . — — Other revenues 134.646 — — — TOTAL REVENUES 5,381.108 340.673 7,805 4,965 EXPENDITURES: Administrative costs 619,542 158,708 16,248 41,616 Professional services 660,901 284,239 6.977 10,000 Plaaning,survey and design _ _ _ _ Capital outlay 5,504,726 4,323.686 — — Land purchases — 3,563,819 — — TOTAL EXPENDITURES 6,785,169 8,330.452 23,225 51,616 EXCESS OF REVENUES (UNDER) EXPENDITURES (1,404,061) (7,989,779) 1( 5•420) 4( 6•651) OTHER FINANCING SOURCES(USESk Operating transfers in — 2,818,533 — 60,485 Operating transfers out (2,818,533) — _ _ Advance fzom City — _ _ _ Proceeds from bonds _ _ _ _ TOTAL OTHER FINANCING SOURCES(USES) (2,818,533) 2,818,533 — 60.485 EXCESS OF REVENUES AND OTIiER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (4,222,594) (5,171.246) (15.420) 13,834 FUNDBAL.ANCES—BEGINNINGOFYEAR 33.159,663 8,328,394 92,580 59,828 FUND BALANCES—END OF YEAR $ 28,937,069 S 3,157,148 S 77,460 S 73.662 —35— T ^_ __ � � � �, Totals 1996 1995 S 2.862,941 S 788,773 2,736,964 3.692.719 134,646 1,113 5.734.551 4,482,605 536,114 637,881 962,117 690.271 !� — 650.163 9.828.412 6.764.342 '�, 3,563.819 3.742.206 15.190,46 2 12,484,863 (9,455.911) (8,002.258) 2,879,018 2.118,470 �z.ais.sss� (1.929.000) �I — s,000,000 — 9,264,445 60.485 17,453,915 (9,395.426) 9,451,657 41,640,763 32.189,308 . 5 32.245.339 S 41.640,765 —36— � 1�. i.e�Z�, �vans �r �om�.aat� CERTIFIED PUBLIC ACCOUNTANTS �sca¢ �. o�zml�o CE1iTIFIED PUBLIC ACCOUNTANT 18401 VON KARMAN,SUITE 200 a Joint venture 74133 EL PASEO.SUITE 8 �RVINE, CALIFORNIA 927157542 . (714)757-77W PALM DESERT, CALIFORNIA 92260 (619)773-4R78 September 24, 1996 INDEPENDENT AUDTPDRS' COMPLIANCE REPORT Agency Members Palm Desert Redevelopment Agency Palm Desert, California We have audited the financial stauments of the Palm Desert Redevelopment Agency (a component unit of the Ciry of Palm Desert), as of and for the yeaz ended Ju� 30, 1996, and have issued our opinion thereon dated September 24, 1996. We coffiucted our audit in accordance with generally accepted auditing standards a� Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assura�e about whether the financial sta[ements are free of material misstatemenu. Compliance with laws and regulations applicable to the Palm Desert Redevelopment Agency is the responsibility of the Palm Desert Redevelopment Agency's management. As part of obtaining reasonable assurance about whether the financial statements are free pf material misstatement, we performed tests of compliance with provisions of laws and rsguladons contained in the Guidelines For Comnliance Audits of California Redevelopment .��e*+�;P� issued by the State Controller's Office, Division of I.ocal Governmental Fiscal Affairs. The tesult of our tests indicted that, with respect W the items tested, the Palm Desert Redevelopment Agency complied, in all material respects, with the provisions ceferred W in the preceding pazagiaph. With respect w items not tested, nothing came to out attention tUat caused us to believe that [he Palm Desert Redevelopment Agency had not complied, in all material respects, with those provisions. This report is intended for the information of the Palm Desert Redevelopment Agency, and the Stau Controller's O�ce. However, this report is a matter of public record and iu distribution is not limited. � '-� �, � ^^� C°Y"a°°'.�• �°�°� -37-. Broker/Dealer Questionnaire Mailing List 12/96 A.C. Edwards R. Willfam Chaffin, Vice President 11939 R8nCh0 Bern2rd0 R02d SUIte 203 San Diego, Ca 92128 Amhet'St Securities Group Inc. Allen J. Levey, Sr. Vfce President 121 SOUth P21111 C811y011 DI'., SUIt2 209 Palm Springs, CA 92262 canteua & co. Ken Edleman, Pixed Income Sales 11200 Westheimer, Suite 519 Houston, TX 77042 Fund Services Associates, Inc. Lester wood III, Managing Director 11835 W. Olympic Blvd., Suite 205 Los Angeles, CA 900064 Piper Jaffray scott Carter 444 South Flower, Suite 1725 Los Angeles, CA 90071 MerCill LynCh R011 M@t'aZ, Sr. Financial Consultant 74-800 HIghW2y 111 Indian Wells, CA 92210 Union Bank of California Mr. Leslie Wells, VC@ PP8SId211t 445 s. Figueroa Street, ��tn Floor Los Angeles, Ca 90071 zion Bank, Capftal Markets Sheila-Jean Criese, CPA One South Main Street Kennecott Building, sulte �3ao S21t L2k@ Clty, Uteh 84111 [TEXT OF COVER LETTER FOR BROKER/DEALER QUESTIONNAIRE] Thank you for yow interest in becoming a qualified broker/dealer for the City of Palm Desert/Palm Desert Redevelopment agency. Along with this letter you will Snd a copy of the Investment Policy for the City/Agency and our `Broker/Dealer Questionnaire and Certification" form. Please read the Imestmeirt Policy and completely fill out the questionnaire and certification. If your firm is a primary dealer retum the questionnaire along with an sudited financial statement, and a copy of the U4 form for the broker or brokers who will be trading with us. If your fum is a secondary Snancial institution, please submit all of the above plus proof of National Association of Securiries Dealers certificarion, trading resolution and proof of state registration. The documents submitted will be reviewed, the firm will checked for adequate capitalization, appropriate services for the city's needs and the recommendation of other govemment agencies. Then the appGcation will be submitted to the Finance and Investment Committee for approval. If you have any questions, please give me a caq at(619) 346-0611 extension 320, or call 7ean Ruth at extension 383. Sincerely, Paul S. Gibson Finance Director/Treasurer enclosure City of Palm Desert Palm Desert Redevelopment Agency BROKER DEALER QUESTIONNAIltE AND CERTIFTCATION PLEASE NOTE: Completion of this quesrionnaire and certification does not guarantee that the appGcant will be approved to do business with the City of Palm Desert or the Palm Desert Redevelopment Agency. It is merely the first step in the selection process. 1. Name of Firm 2. Address 3. Telephone Local,� 1 National Headquarterss � 4. Primary representative: Manager: Name Name Title Title Telephone� 1 Telephone L_) 5. Are you a recognized primary dealer in Govemment Securities? [ ]yes [ ]no ff yes, how long has your fum been a primary dealerT (Y�) 6. What was your fum's total volume in U.S. Government treasury and agency securities trading last year? Fum-wide $ Yow office$ Number of transactions from your off ce 7. Which of the following insttuments are offered regularly by your trading desk7 [ ] T-bills [ ] Banker's Acceptances [ ] T-notes/bonds ( ] Commercial Paper [ ] Mutual Funds [ ] Medium Term Notes [ ] Agencies (specify) [ ] CertiScate of Deposits City of Palm Desert/Palm Desert Redevelopment Agency Broker Dealer Questionaire and Certification 12/20/96 Page 2 Name of Firm: 8. Identify all personnel who will be trading with or quoting levels to the City. Name Tide #of years in #of years Telephone Institudonal Sales with Firm 9. Which of the above personnel have read the City's investment policy? 10. Please identify your most closely compareble govemmental local agency clients in our geographical area. Entity Contact Person Telephone Client since 11. Are you a Broker [ }or a Dealer[ ]? 12. What makes you the best broker/dealer for the City of Palm Desert/Palm Desert Redevelopment Agency7 Why should we want to deal with you? (You may use an additional sheet of paper if necessary.) 13. Describe the capital line and uading limits of the office that would conduct business with the City of Palm DesertJPalm Desert Redevelopment Agency. 14. Have any of yow public sector clients ever sustained a loss on a securities transaction arising &om a misunderstanding or misrepresentation of the risk characteristic of a particular instrumern7 Ifyes, please explain. City of Palm Desert/Palm Desert Redevelopment Agency Broker Dealer Questionaire and Certification 12/20/96 Page 3 Name of Firm: 15. Has any publio-sector client ever ciaimed in writing that your firm was responsible for investment losses?If yes, please expisin. 16. Has your firm, or local office, ever been subject to a regulatory or state/federal agency investigarion for alleged improper, fraudulent, disreputable or unfair activiries related to the sale of securities? If yes, please explain. 17. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? Include certificated documemation of your currern capital adequacy as measured by the Federal Reserve Standatds. 18. Does your firm participate in the S.I.P.C. insurance program or any other insurance programs that will cover a municipality which invests in the investments listed in question 7 using D.V.P. settlement? If yes, please explain coverage. 19. How many and what percentage of your transactions failed last month/.last year? 20. What portfolio information do you require from yow cliems? 21. Please provide certified Snancial statements regarding your fum's capitalization. 22. Please provide samples of research reports that yow firm regularly supplies to public sector clients. 23. What trade documentation will the City receive? (transaction informatioq confirmations, statemems, etc.)Please provide examples of each. 24. What training information will you provide to our employees? City of Palm DesertlPalm Desert Redevelopment Agency Broker Dealer Questionaire and CertiScadon 12/20/96 Page 4 Name of Firm: CERTIF�CAT�ON I hereby certify that I 6ave personally read t6e City of Palm Desert/Palm Deaert Redevelopment Agency Investment Policy and the Califoraia Govemment Codes pertaining to the investments of the City of Palm Desert/Palm Desert Redevelopment Agency, and have implemented reasouable procedures and a system of controls designed to preclude imprudent investment activities ariaing out of t6e traneactiona conducted between our firm and t6e City of Palm Desert/Palm Desert Redevelopment Agency. All ssles personnel will be routinety informed of the City of Palm Desert/Palm Desert Redevelopment Agency investment objcetives, strategies and riak constraints whenever we are so advised. We pledge to ezercise due diligence in informing the City Tresanrer and Investment Manager of all foreaeeable risks assceiates with financial tranaactions conducted by our firm. I attest to the accuracy of our responses to your questionnaire. Signed Title Firm Date This certification must be countersigned by t6e Company presideut or the senior person in the govemment securities operations section. Signed TiUe Firm Date CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY Statement of Investment Policy INTRODUCTION The policy and practices of the City of Palm Desert and the Palm Desert Redevelopment Agency are based upon state law, city ordinances, prudent money management and the "prudent person" standards. The primary goals of this policy are to invest public funds to: 1. Meet the daily cash flow needs of the City and the Redevelopment Agency. 2. Comply with all laws of the State of California regarding the investment of public funds. 3. Achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. SCOPE The investment policy applies to all funds under the con�ol of the Finance Director/City Treasurer of the City of Palm Desert and the Palm Desert Redevelopment Agency, including but not limited to the general revenues of the City/Agency, enterprise fund revenues,proceeds of bond sales and debt service revenues, trust funds in the custody of the Finance Director/Treasurer and any other funds under his control. These funds are accounted for in the comprehensive annual financial reports of the City of Palm Desert and the Palm Desert Redevelopment Agency. INVESTMENT OBJECTIVES A. Safe of Princival Safety of principal is the City/Agency's foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to enswe that capital losses resulting from institution default,broker-dealer default,or the erosion of mazket value are avoided. The City/Agency shall seek to preserve principal by mitigating the two types of risk: credit risk and mazket risk. 1. Credit risk,defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in only the highest quality sacurities (see authorized investments)and by diversifying the investment portfolio so that the failure of any one issuer would not unduly hazm the City/Agency's cash flow. 2. Mazket risk,defined as the risk of mazket value fluctuations due to overall changes in the general level of interest rates,shall be mitigated by structuring the portfolio so that 1 �.r ..� securities mature at the same rime that major cash outflows occur, this eliminating the need to sell securities prior to maturity; and by prohibiting the taking of short positions,that is, selling securities that the City/Agency does not own. It is explicitly recognized,however, that in a diversified portfolio, occasional measured losses may occur, and must be considered within the context of overall inveshnent return. B. Liguiditv Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to enable the CitylAgency to meet all operating requirements. At all times, at least 50%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 rivo yeazs ox less; at least 20% of the total portfolio shall be invested for one yeaz or less. At no time will a security in the portfolio mature in more than five years except bond reserve funds, bond escrow funds and any funds approved by the Finance Committee or City Council to be appropriate for a longer period. C. Yield The City/Agency portfolio shall be invested to attain a mazket average rate of retum through economic cycles, as long as it does not diminish the objectives of Safety and Liquidity. The market rate of retum is defined as the average retum on the one-yeaz U.S. Treasury Bill. Whenever possible and in a manner consistent with the objectives of safety of principal and liquidity, a yield higher than the mazket rate of retum shall be sought. AUTHORITY TO INVEST FUNDS 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 designated by the City Council and Agency Boazd, the only officials authorized to undertake investment transactions on behalf of the City/Agency are the Director of Finance/Treasurer and his/her designee. T'he Finance Director/Treasurer and Investment Manager will observe, review and react to the changing conditions that affect the investment portfolio. They will meet on a regular basis to discuss curtent mazket conditions, future trends and how each of these affects the investment portfolio and the City/Agency. The Finance Director/Treasurer and Investment Manager shall establish a system of controls to ensure compliance with the City/Agency's inveshnent policy. INVESTMENT/FINAN['F ['nmr�ri E The City utilizes a Finance Committee, composed of the Mayor,Mayor Pro-Tempore, City Manager, Redevelopment Agency Execurive Director, Finance Director, Investment Manager, City Attomey and Cirizen(s) appointed by the City Council, to insure stability and constant information flow as it relates to investment and other finance activities. They will meet monthly to discuss issues relating to the City/Agency's investment portfolio. Items may include the suitability of current investment policies and procedures, current and proposed strategies, investment transactions since the last meeting as well as other topics affecting the sources and uses of funds in the portfolio. 1 st Draft of Rev: Ol/97 2 ,-, ,-. INTERN�i.CONTROL 'The Finance Director, is responsible for ensuring compliance with the City/Agency investment policies as well as establishing intemal controls designed to prevent losses due to fraud, employee error,misrepresenting by third parties,or unanricipated changes in financial markets. A written policy on the specific intemal controls will be reviewed by the Finance Committee. ETHICS AND CONFLICTS OF INTEREST Officer and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make unpartial investment decisions. Employees and investment officers shall disclose any material financial interests in financial insritutions that conduct business within this jurisdiction, and they shall further disclose any lazge personal financiaVinvestment positions that could be related to the performance of the City/Agency's portfolio. Employees and officers shall subordinate their personal investment transactions to those of the City/Agency,particulatly with regard to the timing ofpurchases and sales, and shall avoid transactions that might impair public confidence in the City's ability to govem effectively. EVALUATION OF INVESTMENT OFFICER ACTIONS The actions of City/Agency inveshnent officers in the performance of their duties as managers of public funds shall be evaluated using the following"prudent person" standazd 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 intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. City/Agency investment officers acting 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 mazket price changes,pmvided that substantial deviations from expectations aze reported by the Treasurer to City Manager and the Finance Committee within three days of discovery. Mutually agreeable remedial acrion will be taken by the Treasurer and reported to the next Finance Committee meeting. AiJTHOR2ED FINANCIAi DE�I.ERS AND INSTITUTIONS The City/Agency shall iransact business only with banks and savings and loans, and with investment securities dealers which/who comply with Schedule III(Policy Criteria for Selecting Bmker/Dealers) attached. The Finance Director/Treasurer will maintain a list of financial institutions authorized to pmvide investment services. He will also maintain a list of appmved security brokers/dealers selected lst Dnft of Rev: Ol/97 3 rr .I CITY OF PALM DESERT PALM DESERT REDEVELOPMENT AGENCY POLICY CRITERIA FOR ENTERING INTO A DIVERSIFIED MANAGEMENT COMPANY SCHEDiJLE II December 7, 1995 1. The firm must meet all requirements set forth in the Califoma Government Code Sections 53601 and 53635. 2. The firm must provide in writing a statement on the fund's letterhead that the fund meets the statutory requirements of Califomia law (i.e., Sections 53601 and 53635 of the California Govemment Code). 3. The fund must provide evidenc�that it has been registered with SEC and has "AAA"ratings from Standard&Poor's and Moody's. 4. The fund's investments shall be lunited to direct obligations in U.S. Treasury bills,bonds or notes and repurchase agreements, to the extent allowed by law, and shall maintain weighted average maturities within their portfolio of less than 60 days. 5. The fund must pmvide us copies of their portfolio reports and newsletters and shall provide, at least month-end, a complete listing of securities within the fund's portfolio. 6. The fund shall provide us a current prospectus before our participation in the fund. 7. The fund cannot engage in hedging strategies, WI purchases, options, future, reverse- repurchase agreements, or security lending. 8. The fund must maintain daily, a principal per share value of$1.00 per shaze. 9. The fund shall provide information on who serves as their custodial bank. 10. The fund shall provide us at least annual financial statements on the fund's financial condition and performance. 11. The fund shall pmvide us wire instructions for the purchase and redemption of shazes and must be able to distribute interest eamings to us on a monthly basis. 12. Unless the fund is more than five yeazs old, the City/Agency is to be given its performance history since the inception of the fund. lst Draft ofRev: Ol/97 Schedule II 13. The City/Agency is also to be given the date the fund was established, the total assets currently under management,the recent 12 months' history as to either the growth or decline in assets under management,and whether or not the fund is assessing 12B-1 management fees. It would also be beneficial if the fund could provide us performance histories on competitor funds, should they be available. lst Draft ofRev: Ol/97 Schedule II r• �r CITY OF PALM DESERT PALM DESERT REDEVELOPMENT AGENCY POLICY CRITERIA FOR SELECTING BROKER/DEALERS SCHEDULE III December 7, 1995 1. All primary financial institutions and broker/dealers who desire to become qualified bidders for investinent transactions must supply an audited financial statement, and U4 Form for the broker,completed bmker/dealer questionnaire(made a part of this Schedule) and certification of having read the City/Agency's inveshnent policy. All secondary financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply an audited financial statement, proof of National Association of Securities Dealers certification, trading resolution, proof of state registration, completed broker/dealer questionnaire (made a part of this Schedule), U4 Form for the broker and certification of having read the City/Agency's investment policy. 2. The net capital position of the firm shall be in excess of$100 million. 3. The Finance Director/Treasurer's intent is to enter into a long-term relationship. Therefore, the integrity of the firm and the personnel assigned to our account is of primary importance. 4. The firm must state in writing its willingness to be bound by the City/Agency's written Investment Policy Guidelines. 5. The firm must provide an active secondary market for the securities it sells. 6. The firm must specify the types of securities it specializes in and will be made available for our account. 7. It is important that the firm pmvide related services that will enhance the account relarionship which could include: a) An active secondary market for its securities. b) Intemal credit reseazch analysis on commercial paper,banker's acceptances and other securities it offers for sale. c) Be willing to trade securities on our portfolio. d) Be capable of providing mazket analysis, economic projections,newsletters. e) Provide mazket education on new investment products, security spread relationships, graphs, etc. 8. The firm must be willing to provide us annual financial statements. 9. If requested,the firm must be willing to provide us a list of local government clients or other references, particulazly those client relationships established within the State of California. 1 st Draft of Rev: Ol/97 Schedule III 10. The City/Agency is prohibited from the establishment of a broker/dealer account for the purpose of holding the City/Agency's secutities. All securities must be subject to delivery at the City/Agency's custodial bank. 11. Without exception, all transactions are to be conducted on a"delivery vs. paymenY'basis. 12. The broker/dealer shall be headquartered or have a branch office in California. Except for the above, the City/Agency will not conduct security transactions with any firm located out of state. • 13. The broker/dealer must have been in operation for more than 5 yeazs, and must have net capital in excess of$100 million. 14. No business relationship shall be established with firms engaging in the sale of"exotic" products. Exotic meaning "unusually high yields,"no ready secondary mazket, "high price volatility" on the security. 15. The firm must be registered with the State of Califomia's regulatory agency. 16. No broker/dealer or security firm shall be selected who has,within any consecutive 48-month period,made a political contribution in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Boazd,to the local treasurer or any member of the City Council or the Redevelopment Agency goveming boazd or to any candidate for these offices. lst Draft of Rev: Ol/97 Schedule III rr .r [TEXT OF COVER LETTER FOR BROKER/DEALER QUESTIONNAIRE] Thank you for your interest in becoming a qualified broker/dealer for the City of Palm Desert/Palm Desert Redevelopment agency. Along with this letter you will find a copy of the Investment Policy for the City/Agency and our `Broker/Dealer Questionnaire and Certification" form. Please read the Investment Policy and completely fill out the questionnaire and certification. If yow firm is a primary dealer return the questionnaire along with an audited financial statement, and a copy of the U4 form for the broker or brokers who will be trading with us. If your fum is a secondary Snancial institution, please submit all of the above plus proof of National Associarion of Securities Dealers certification, trading resolution and proof of state registration. The documents submitted will be reviewed, the Srm will checked for adequate capitalizadon, appropriate services for the city's ne.eds and the recommendation of other govemment agencies. Then the application wiil be submitted to the Finance and Investment Committee for approval. If you have any questions, please give me a call at(619) 346-0611 extension 320, or call Jean Ruth at extension 383. Sincerely, Paul S. Gibson Finance Director/Treasurer enclosure Rev: O1/97 Schedule III City of Palm DesertlPalm Desert Redevelopment Agency Broker Dealer Questionaire and Certification 12/20/96 Page 2 Name of Firm: 8. Identify all personnel who will be uading with or quoting levels to the City. Name Title #of years in #of years Telephone Institutional Sales with Firm 9. Which of the above personnel have read the City's investment policy? 10. Please identify your most closely comparable govemmental local agency clierns in our geographicalarea. Entity Contact Person Telephone CGent since 11. Are you a Broker [ ] or a Dealer [ ]? 12. What makes you the best broker/dealer for the City of Palm Desert/Palm Desert Redevelopment Agency? Why should we want to deal with you? (You may use an additional sheet of paper if necessary.) 13. Describe the capital line and trading Gmits of the office that would conduct business with the City of Palm Desert/Palm Desert Redevelopment Agency. 14. Have any of your public sector clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characterisdc of a particular instrument? If yes, please explain. Rev: O1/97 Schedule III �.. ..� City of Palm Desert Palm Desert Redevelopment Agency BROKER DEALER QUESTIONNAIRE AND CERTIFICATION PLEASE NOTE: Completion of this questionnaire and certification does not guarantee that the applicant will be approved to do business with the City of Palm Desert or the Palm Desert Redevelopment Agency. It is merely the Srst step in the selection process. 1. Name of Fum 2. Address 3. Telephone Local ( ) National Headquarters� ) 4. Primary representative: Manager: Name Name Title Title Telephone( ) Telephone� 1 5. Are you a recognized primary dealer in Government Securities? [ ]yes [ ]no If yes, how long has your firm been a primary dealer� (years) 6. What was your firm's total volume in U.S. Govemment treasury and agency securities trading last year? Firm-wide $ Your office $ Number of transactions from your o�ce 7. Which of the foqowing instruments are offered regularly by your trading desk? [ ] T-bilis [ ] Banker's Acceptances [ ] T-notes/bonds [ ] Commercial Paper [ ] Mutual Funds [ ] Medium Term Notes [ ] Agencies (specify) [ ] Certificate of Deposits Rev: O1/97 Schedule III City of Palm Desert/Palm Desert Redevelopment Agency Broker Dealer Questionaire and Certification 12/20/96 Page 4 Name of Firm: CERTIFICATION I hereby certify that I have perooaally read the City of Palm Desert/Palm Desert Redevelopment Agency Investment Policy and the California Government Codes pertaining to t6e investments of the City of Palm DeserdPalm Desert Redevelopment Agency,and have implemented reasonable procedures aad a system of controls designed to preclude imprudent investment activities arising out of the transactions conducted between our firm and the City of Palm Desert/Palm Desert Redevelopment Agency. All sales personnel will be routinely informed of the City of Palm DeserdPalm Desert Redevelopment Agency investment objectives, strategies and risk coostraints whenever we are so advised. We pledge to e:ercise due diligence in informing t6e City Treasurer and Investment Manager of all foreseeable risks associates with financial transactions conducted by our firm. I attest to the accuracy of our responses to your questionnaire. Signed Title Firm Date This certificatinn must be countersigned by the Compsny president or the senior person in the government securities operations aeMion. Signed TiUe Firm Date Rev: O1/97 Schedule III nr .� City of Palm Desert/Palm Desert Redevelopment Agency Broker Dealer Questionaire and Certification 12/20/96 Page 3 Name of Firm: 15. Has any public-sector client ever claimed in writing that your firm was responsible for investment losses? If yes, please explain. 16. Has your firm, or local office, ever been subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? If yes, please explain. 17. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? Include certificated documentation of your current capital adequacy as measured by the Federal Reserve Standards. 18. Does your firm participate in the S.I.P.C. insurance program or any other insurance programs that will cover a municipality which invests in the investments listed in quesrion 7 using D.V.P. settlement? If yes, please explain coverage. 19. How many and what percentage of your transactions failed last month/last year? 20. What portfolio information do you require from yow clients? 21. Please provide certified financial statements regarding your firm's capitalization. 22. Please provide samples of research reports that your&rm regularly supplies to public sector clients. 23. What trade documentation will the City receive? (transaction information, confirmations, statements, etc.) Please provide examples of each. 24. What training information will you provide to our employees? Rev: O1/97 Schedule III CITY OF PALM DESERT PALM DESERT REDEVELOPMENT AGENCY FIRMS AUTHORIZED TD CONDUCT INVESTMENT TRANSACTIONS SCHEDULEIV December 7, 1995 The City/Agency is authorized to conduct investment security transactions with the following investment firms and broker/dealers,many of which aze designated by the Federal Reserve Bank as primary govemment dealers. Security uansactions with finns, other than those appearing on this list, aze prohibited. A. Firms designated by the Federal Reserve Bank as Primary Govemment Dealers Bank of America NT & SA Chase Securities, Inc. Chemical Securities, Inc. Citicorp Securities Markets, Inc. Dean Witter Reynolds, Inc. Merrill Lynch Government Securities, Inc. Paine Webber, Inc. Prudential Bache Securities,Inc,. Lehman Govemment Securities, Inc. Smith Bamey, Inc. B. Other authorized firms: Union Bank of Califomia The Bank of New York Great Westem Bank Home Savings of America Downey Savings Glendale Federal Bank Wells Fargo Bank lst Draft of Rev: Ol/97 Schedule N `•r r„o � e � y W W j � — Q � � C N $ e- �L 7 � Q N C � u o p a � iI c d. , �. � � c E o� •- 8 Wa Q c � pi c a Q rn a�7i d7 C Uv cb0 •� W � � � � � � O � m N } f �i f �2 � U W v� � � � $ � a � ap c � a d .. � v�i o c ~' U � � c > > � � o o � x o z �i 3 � � °$ n � w� � � � �i 8i 8i p�. � � � 4 ° v W � � n `o � .E .� .� .p .p li � � > > 'brCi � � o r$ 'S � v�i c � � Z, � 8 � � � � > � W Z 2 Z` � Q �� S � SU � � � � $ � Q Q Q Q w � _ � � z �� �� o o� `- $.rs � ��'.a�ez z° z z � ��` � �' � `�' w� `� w � � � � � �� � � N � m a LL � m � � � '� � `o O �{ � � � � :t ¢ � ' o c a°oo o d m y Z � z 210 o ao � a ° � a � a � o Zs' wc � i � m w � U E �� a o W � = a � (p r LL � Yc � �O ll � � � oa' � Z $' d+' Q o � � � � � � � � a� � � c `08«' � € a � r � � � W � .�i � �' p E � � � 3 c z ' � � � � U � � � `o n � � Z � m 9 $ � @ y� E � � � � �i .d i6 2 �' � c � � I W Z c LL � d � T � Q � Ta o m d € � � `° � f'�� m �c' � o c+ � v � � � � vai H m d � �`rn � c V � $ V � � ` $ � H Z E 3'i Q �i �, � � d € o � n '� � G � d J C7 y � W � � ; � � a Q F o o K � � � � ° � � � ¢ � � ° E � � � m �'i W � �- U' �' � Y E o � ZON y O a� _ U' 7 � f K m � � � V f � Z a�' � � GLOSSARY AGENCIES: Federal agency securities. DELNERY VERSUS PAYMENT: There are two methods of delivery of securities: ASKED: The price at which securities aze delivery versus payment and delivery versus offered. (The price at which a firm will sell a receipt. Dalivery versus payment is delivery of security to an investor.) securities with an exchange of money for the securities. Delivery versus receipt is delivery BANKERS' ACCEPTANCE (BA): A draft of securities with an exchange of a signed or bill or exchange accepted by a bank or trust receipt for fhe securities. company. The accepting institution guarantees payment of the bill, as well as the issuer. DISCO[JNT:The difference between the wst price of a security and its maturity when BASIS POINT: One one-hundredth of a quoted at lower than face value. A security percent (i.e., 0.01%). selling below original offering price shortly after sale also is considered to be at a discount. BID: The price offered by a buyer of securities. (When you aze selling securities, DISCOUNT SECURITIES: Non-interest you ask for a bid.) bearing money mazket instruments that are issued at a discount and redeemed at maturity BROKER: A broker brings buyers and sellers for full face value(e.g., U.S. Treasury Bills). together for a commission. He does not take a position. DIVERSIFICATION: Dividing investment funds among a variety of securities offering CERTIFICATE OF DEPOSIT(CD):A time , independent returns. deposit with a specific maturity evidenced by a certificate. Lazge-denomination CD's are FEDERAI,CREDIT AGENCIES:Agencies typically negotiable. of the Federal govemment set up to supply credit to various classes of institutions (e. g. COLLATERAL: Securities, evidence of S&L's, Small business firms, students, deposit or other property which a borrower fatmers, farm cooperatives, and exporters). pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure FEDERAL DEPOSIT INSURANCE deposits of public monies. CORPORATION(FDIC): A Federal agency that insures bank deposits, currently up to COUPON: a) The annua] rate of interest that $100,000 per deposit. a bond's issuer promises to pay the bondholder on the bond's face value. b) A certificate FEDERAL FUNDS RATE: The rate of attached to a bond evidencing interest due on interest at which Fed funds aze traded. This a payment date. rate is currently pegged by the Federal Reserve through open-mazket operations. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying FEDERAL HOME LOAN BANKS and selling for his own account. (FHLB): The institutions that regulate and lend to savings and loan associations. The DEBENTURE: A bond secured only by the Federal Home Loan Banks play a role general credit of the issuer. analogous to that played by the Federal 1 st Draft of Rev: 01197 Glossary rr rr Reserve Banks vis-a-vis member commercial banks,savings and loan associations, and other banks. institutions. Security holder is protected by full faith and credit of the U.S. Govemment. FEDERAI. NATIONAL MORTGAGE Ginnie Mae securities aze backed by the FHA, ASSOCIATION (FNMA): FNMA, like VA or FMHM mortgages. The term "pass- GNMA was chartered under the Federal throughs" is often used to describe Ginnie National Mortgage Association Act in 1938. Maes. F'NMA is a Pederal cotporation working under the auspices of the Depariment of Housing and LIQUIDITY: A liquid asset is one that can be Urban Development (HLTD). It is the lazgest converted easily and rapidly into cash without single provider of residential mortgage funds a substantial loss of value. In the money in the United States. Fannie Mae, as the market, a security is said to be liquid if the corporation is called, is a private stockholder- spread between bid and asked prices is narrow owned corporation. The cotporation's and reasonable size can be done at those purchases include a variety of adjustable quotes. mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are LOCAL GOVERNMENT INVESTMENT also highly liquid and aze widely accepted. POOL (LGIP): The aggregate of all funds FNMA assumes and guarantees that all from political subdivisions that aze placed in security holders will receive timely payment of the custody of the State Treasurer for principal and interest. investment and reinveshnent. FEDERAL OPEN MARKET MARKET VALUE: The price at which a COMMITTEE (FOMC): Consists of seven security is trading and could presumably be members of the Federal Reserve Board and purchased or sold. five of the twelve Federal Reserve Bank Presidents. The President of the New York MARKETREPURCHASEAGI2EEMENT: Federal Reserve Bank is a permanent member, A written contract covering all future while the other presidents serve on a rotating transactions between the parties to repurchase- basis. The Committee periodically meets to reverse repurchase agteements that establish set Federal Reserve guidelines regazding each party's rights in the transactions. A purchases and sales of Govemment Securities master agreement will often specify, among in the open market as a means of influencing other things, the right of the buyer-lender to the volume of bank credit and money. liquidate the underlying securities in the event of default by the seller-borrower. FEDERAL RESERVE SYSTEM: The central bank of the United States created by MATURII'1': The date upon which the Congress and consisting of a seven-member principal or stated value of an investment Board of Govemors in Washington, D.C.; 12 becomes due and payable. regional banks and about 5,700 commercial banks aze members of the system. OFFER: The price asked by a seller of securities. (When you are buying securities, G O V E R N M E N T N A T I O N A L you ask for an offer.) See"Asked" and "Bid". MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the OPEN MARKET OPERATIONS: volunne of bank credit guaranteed by GNMA Purchases and sales of govemment and certain and issued by mortgage bankers, commercial other securiries in the open mazket by the New lst Draft of Rev: O1/97 Glossary 0 CITY OF PALM DESERT and PALM DESERT REDEVELOPMENT AGENCY STATFMF.NT OF INVESTMENT PDLICY ADOPTED BY RESOLUTION: January 11, 1996 1 st Draft of Rev: Ol/97 . _ _ rr r.r CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY Statement of Investment Policy TABLE OF CO �_ NT � Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Investment Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A. Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 B. Liquidiry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 C. Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 AuthoritytoInvest Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 InvestmentlFinanceCommittee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 InternalControl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Et6ics and ConflictofInterest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Evaluation of Investment Officer Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Authorized Financial Dealers & Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 AuthorizedInvestments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Investment Pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Safekeeping of Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Diversification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 MaximumMaturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 BondProceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Investment Policy Adoption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Investment Policy Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Policy Statement on Collateralized Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule I Policy Criteria for Entering Into a Money Market Fund . . . . . . . . . . . . . . . . . . . . Schedule II Policy Criteria for Selectiag Broker/Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule III Firms AutLorized to Conduct Investment Transactions . . . . . . . . . . . . . . . . . . . . Schedule IV Chart of Aut6orized Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule V Glossary York Federal Reserve Bank as directed by the the agreement aze structured to compensate FOMC in order to influence the volume of him for this. Dealers use RP extensively to money and credit in the economy. Purchases finance their positions. Exception: When the inj ect reserves into the bank system and Fed is said to be doing RP,it is lending money, stimulate growth of money and credit: Sales that is, increasing bank reserves. have the opposite effect. Open market operations are the Federal Reserve's most SAFEKEEPING: A service to customers important and most flexible monetary policy rendered by banks for a fee whereby securities tool. and valuables of all types and descriptions are held in the bank's vaults for protection. PORTFOLIO: Collection of securiites held by an investor. SECONDARY MARKET: A mazket made for the purchase and sale of outstanding issues PRIMARY DEALER: A group of following the initial distribution. government securities dealers who submit daily reports of mazket activity and positions SECURITIES & EXCHANGE and monthly financial statements to the COMMISSION:Agency created by Congress Federal Reserva Bank of New York and aze to protect investors in securities transactions subject to its informal oversight. Primary by administering securities legislation. dealers include Securities and Exchange Commission (SEC)-registered securities SEC RULE 15C3-1: See "Uniform Net broker/dealers, banks and a few unregulated Capital Rule". firms. TREASURY BILLS: A non-interest bearing PRUDENT PERSON RULE: An investment discount security issued by the U.S. Treasury standard. In some states, the law requires that to finance the national debt. Most bills aze a fiduciary, such as a trustee, may invest issued to mature in three months, six months, money only in a list of securities selected by or one yeaz. the custody state—the so-called "legallisY'. In other states,the trustee may invest in a security TREASURY BOND: Long-term U.S. if it is one which would be bought by a prudent Treasury securities having initial maturities of person of discretion and intelligence who is more than 10 yeazs. seeking a reasonable income and preservation of capital. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury securities RATE OF RETURN:The yield obtainable on having initial maturities of from one yeaz to a security based on its purchase price or its ten years. current mazket price. This may be the amortized yield to maturity; on a bond, the UNIFORM NET CAPITAL RULE: current income retum. Securities and Exchange Commission requirement that member firms as well as REPURCHASE AGREEMENT (RP or nonmember broker/dealers in securities REPO): A holder of securities sells these maintain a maximum ratio of indebtedness to securities to an investor with an agreement to liquid capital of 15 to 1; also called net capital repurchase them at a fixed date. The security rule and net capital ratio. Indebtedness covers "buyer" in effect lends the"seller"money for all money owed to a firm, including mazgin the period of the agreement, and the terms of loans and commitments to purchase securities, lst Draft ofRev: Ol/97 Glossary ti.+ „o one reason new public issues aze spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on • an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollaz income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITI' is the current income yield minus any premium above paz or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. lst Draft of Rev: Ol/97 Glossary .- . ^ -`�.iiy^�;. -' / ,,,/ _JI�- ��� I N T E R ��t�� MEMO �� 0 F F I C E � _. - � .� 1 To: Honorable Mayor c - � City Council Members ^�' o �: From: Paul S. Gibson, Director of Finance "' `— � � .� Subject: AmendmenttolnvestmentPolicv � F f; Date: August 22, 1996 '—' •. N ` � C.J'1 -i -� RFCOMMENDATION: Staff/Investment Committee recommend approval of an amendment to the current City of Palm Desert/Palm Desert Redevelopment Agency Investment Policy allowing the limit of the current normal operating portfolio percentage investment in mutval funds be increased from the present Fifteen Percent (15%)to Twenty Percent(20%); and remove the lnnit on bond proceeds investment in mutual funds effecuve immediately per Califomia Government Code Sections 53601 and 53605. This aznendment would remain in effect undl annual investment policy review in January 1997,then subject to the recommendations of the review. BACKGROiIND: At its monthly meeting on August 14, 1996,the City of Palm Desert Investment Committee discussed the recent announcement of the California Govemment Code changes to Sections 53601 and 53605 which state that there is a 20% limit of normal portfolio operating capital available to investrnent in mutual funds and no azbitrary limit mandated for bond proceeds investment in mutual funds. As the Ciry/RDA wishes their policy to wmply with the Califomia Government Code, and since the City/RDA issues new bonds frequently, it would be very beneficial to our entities to have this availability of all bond proceeds for investment in mutual funds allowing us maximum retum. Respectfully submitted, Reviewed and concur, �LlfJ!����„`_-- Paul S. Gibson �ITY COUNCIL ACTI�on A. iaz Director of Finance/City Treasuret`D�ROVED v City���Er . -,.�T"::';r.:,, OTHSR PSG:JER:rdk = -�-->r.�G ui�Ti: � ��s � �� il /� f'• n �c l _ .... i(T. , ., i�l�f�il��. . � ... Ytir r.Ii� � ... . ...� '�n•F+ i ,_ . . :a•. .... ._ifiv Cl�r:c ' e np<: _.c: MTA � � `� �Y °F ( ?.I_�� �'. . ;R' U.J�C ;?,�JCE Df-PART�!E'�7 MunicipalTreasurcrs' Asaociation ..� JUI` �3 ��� U ln o(lhc Uniled States and Canada � � June 6, 1996 Paul S. Gibson Director of Finance/City'IYeasurer City of Palm Desert 73-510 NYed Waring Drive Palm Desert. CA 92260 Dear Mr. Gibson: The Municipal Treasurers' AssociaUon is pleased to present the City of Palm Desert with the Association's Certification of Excellence Award. Members of the Associatton's Investment Policy Certification Committee congratulate the City of Palm Desert for its success in developing an outstanding written investment policy which meets the criteria set forth by the Associatlon's Investment Policy Certification Program. Our review of your investment policy is limited to the documentation submitted. The Certification of Excellence is not a guazantee against loss due to economic and mazket conditions or human behavior. The Association's Investment Policy Certification Committee Chairman, Rod Rich, will be presenting all recipients with the CertificaUon of Excellence Award at the Association's 1996 Annual Conference in Mobile, Alabama. The awards will be presented during the Awards Luncheon on Wednesday, August 7. We hope that you will be able to attend this luncheon, however, if your schedule does not permit you to attend, please call me at (202) 833-1017. The City of Paim Desert is to be commended for enhancing its flscal responsibility in the management of fiscal funds. Since ely, , St cey L. rane Executive Director 1229 Nineteenth Street, N.W. Washington, D.C. 20036 �202) 833-1017 Fax �202� 833-0375 � cirr cr r;,i_�e ��:,rnT F;;:',���C DEPARTI•1ENT O Mu�c�r�. �as��s, �ssoc�T�oN '96 SEP 30 Pf� 2 19 PressRelease uN�reo srnres & CNNPDA September. 1996 MTA US8cC Certifies the Written Investment Policy of Palm Desert, Cal{fornia On June 4, the written investment policy of Palm Desert, California was certified by the Municipal'I7easurers' Association of the United States and Canada (MTA US&C). The City was formally recognized for this achievement on August 7 during the Assoctation's 31st Annual Conference In P.4obile, Ala��*na. Approximately 150 entiUes have had their policies certiIIed by the Association since the Program was developed in the spring of 1990. Palm Desert is one of 38 jurisdictions in the State of California to be awarded MTA US&C's certification for written investmenl policies. The Association's Investrnent Policy CertiRcation Program was instituted in an effort to assist state and local governments interested in drafting or improving upon an extsting investrnent policy. As part of the Program, the Association has created a "Model" investrnent policy. The Model includes sample language and rationale for those 16 sections the AssociaUon deems as critical elements to be addressed in a written policy. The following are some of the elements included in the Model: liquidity; selection and revlew of suitable investrnent instruments; internal controls; reporting; portfolio diversificaUon; custody and safekeeping: selection of investment institution criteria; ethics; and conflicts of interest. Those entiUes who have had their written investment policies certified in 1995-96 include: Cottonwood, Arizon0. Peoria, Arizona; Yuma, Artzona; Anaheirr4 Califomia; Barstou�, California;Chino, California;E1DoradolrrigationDistrict. Calfomia;Healdsburg, Caiijomia; Inglewood, Calz;jomia; Lodi, Caltfomia; Los Angeles County Melropolitan TYansportatinn Authortty, Califomta;Mtssion Viejo, Califomia; Orange County. California; YaUn Deser[, CaliJomia; Palos Verdes Es[ates, CaliJbmia: Redondo Beach. Califomia: Riuerside, CaUfomia; Vista, Califomia; Douer, Delaware; Orlando, Florida St. Petersburg, Florida; Boise, Idaho; Carol Stream, IUirwis; Peoria, Illinois; Mount Vemon, lowa; Orleans parish School Board, Louisiana: Brandon Township. Michigan; Otsego, Michigan; Salem Township,Michigan;Minneapolis-SaintPaulMetropolitanAirports Commission.Minnesota; Van Wert, Ohio; Norman, OklnFwma; PhtLadelphia, Pennsytvania: Greer, South Carolina: C►uittannoy0. Tennessee;Beaumont. Texas:Denton,Texas;�Euless, Texas:Houston. Te�cas; HuntsviUe. Texas; La Marque. Texas; Tarrartt County, Texas; Texas Water Developmeni Board; Clark County. Washington; Kent, Washington; and Tacoma �'ashington. For informallon on the Investrnent Pollcy CertiticaUon Program, or to obtain a copy of the appllcaUon and Model Investment Policy, call or write Deborah Reuter at the Municipal TYeasurers' AssociaUon of the United States and Canada. 1229 Nineteenth Street, N.W.Washington, DC 20036 PHONE 202-833-1017 FAX 202•833-0375 !� cc: Jean Ruth dLl.. Y N ,� �`.._ � g J U.-�. p W �: .+ . Y V y.� ... . . u � ✓ y V.. . V1 W.:: Y�[tl�' i� � N.__._ .... . .. !� � ve `0 .ii � r �IE�o � � '3oFT�' ~ym-.�'�e ��-" m �C�� � oC� � �°.'yFcyL3ec �'F" V "E,�„ ay+E . . O.. ot � mm � � oea�° mmG- � ry f�.� iGwCJ � 3 ca9�.`'�r�o ca'G o2 vuUsa, v, m °: EU� coay yz� ,g: oP. � 'a Gc� y w �E�.N+ C�G ep�ry R y'G„y N C..�'. Y.' .i..^. m'C vi 'O C N L N�p � �C 4 W..�-..,� �p �0 y •-� U C�.O._..5.. Wyy . � N Y ' C'F. y � C... �� ����C7y�OU�� � N W y C L N � L Yi 4�i �y C Cl �.C 4� !�/1 O ^ C a O T��� y M = N ;N .CN=00 L� \ 6w N eE � 71N a�(�... C..r1C y i. 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