HomeMy WebLinkAbout08 FEBRUARY 1998 AGENDA
, INVESTMENT & FINANCE COMMITTEE
WEDNESDAY, February 18, 1998--11:00 A.M.
NORTH WING CONFERENCE ROOM
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L CALL TO ORDER
II. ROLL CALL
III. APPROVAL OF MINUTES
Rec: Approve the Minutes of January 21, 1998 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 g',ving his or
her name and address for the record. Remazks shall be limited to a
ma�cimum 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 Investment &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 Cazlos Ortega.
Action:
B. Boud Issuance by Palm Desert Financing Authoritv
Rec: Status Report on refunding bonds for Housing Authority and
new Bonds for RDA for Project Area#4.
Action:
AGENDA- INVESTMENT & FINANCE COMMTTTEE February 18, 1998
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VI. NEW BUSINESS
A. C� and Redevelopment Agency Iuvestment Schedule
Rec: Review and submit to the next City Council agenda. Review the
presentation on the inveshnent graphs. Review the invesUnent
activity during the month of August. Review status of capital
projects and cash flow projections.
Action:
B. Review Short Term Investments Maturin�in February, 1998
Rec: Review investments in 1) collateralized deposits; 2)treasury bonds
and notes; and, 3)Agencies discount notes.
Action:
C. State of California Local Agency Investment Fund Monthly Report
Rec: Informational item for the Committee to review. No action
required.
D. Monthly Financial Re�ort for City Council
Rec: Report and submit to City Council.
Action:
E. Parkview Professional Office Buildi�s - Financial Rgports
Rec: Review of 1/31/98 financial statements.
Action:
F. Desert Willow Golf Resort Financial Information for December
Rec: Review and file report.
Action:
AGENDA-INVESTMENT & FINANCE COMMITTEE February 18, 1998
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G. Palm Desert Recreation Facilities Corporation Income Analysis for
December
Rec: Review and file report.
Action:
H. Review of Bank of America as a Broker Dealer
Rec: Review and finalize selection of Broker's Banker's.
Action:
VII. REPOItTS AND REMARKS
A. Reoorts aud Remarks by�qy Committee Member
B. Items to be�laced on the Next tlgenda
VIII. NEXT ME�TING DATE
Next regulazly scheduled meeting is:
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IX. ADJOURNMENT
�-T--� •
� � Minutes
.
Finance Committee
CONVENE On January 21, 1998 the Investment & Finance Committee was
called to order at 11:06 a.m. by Mr. Gibson.
ROLL CALL Paul Gibson, Jean Ruth, Dave Erwin, Bob Spiegel, Ray Diaz,
Murray Magloff, Bill Veazie, Carlos Ortega, and Diane Hines,
recording secretary.
Guest: Dennis M. Coleman, Redevelopment Agency
APPROVAL OF MINUTES Upon motion by Ray Diaz, seconded by Mr. Magloff, the
Minutes of the November 19, 1997 meeting and the December
17, 1997 wereAPPROVED as submitted. Bob Spiegel and
Ray Diaz had to abstain on the November I9, 1997 minutes
as they were not at the meeting.
ORAL COMMUNICATIONS None.
QLD BUSINESS A. Status of public and private Partnershi sp Background
Checks for Section 4
Mr. Ortega stated that the developers of the Marriott Properties :
are in the process of changing equity partners. We did meet
with the new equity partners, they appear to be substantial and
we have asked them to submit their information by the end of
the month. They have given us a schedule for developing and
they will break ground sometime in March. They are
anticipating about seven or eight months for construction. They
want to be open by this time next year.
B. Redwood Securities
Last time we had some good news, this time we have some
excellent news per Carlos Ortega! The excellent news has to
do with the stock market and what it is doing to the bond
market.
Today we are competing with a 500 million offer, San Francisco
Finance Authority. It is important because the funds that have
money to invest look at them and us. We have an insured
bond, which means we are Triple A. The San Francisco
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F'inance Committee
Finance Authority will trade a little bit bet�er than we will, so we
have told the trader to peg ours to that, maybe, 5 basis point
. throughout all the maturities. People out there want discounted
paper or premium paper as the case may be, so what we have
done is,.we have told the trader to look at doing that. Basically,
what we are looking at is the yield, meaning some bonds will
carry a higher coupon but we will get a premium in cash. Some
bonds will carry a lower coupon, so we issue them with a
discount. The bottom line of all that is, what matters to us is
really how much money we are paying out on a yearly basis. If
we were to issue a straight par schedule, meaning all the bonds
are sold at par, versus some of the bonds being sold at discount
and some at premium, by going with the discount premium
scenario our total payment at the end of year is about $25,000
to $31,000 less per year. The total interest cost is right around
5.00% - 5.03%. It will be the lowest low interest cost that I know
I have issued for the City of Palm Desert for 17 years now. We
will stand to save a substantial amount of money. We are
taking out existing debt; the debt of the County Housing
Authority. We are responsible for it through our agreements.
We are going to save from the debt service about $900,000.
We are taking the ability to restructure the debt and so the
actual cash savings are more like $1.5 million.
Paul Gibson asked about the loan fund for the $4.7 million.
Carlos Ortega stated that in the transaction with the Housing
Authority, we are offering a purchase price. That purchase
price includes an amount of the loan to the Housing Authority.
With that we are going to have some Trust Deeds on some
. properties that remain from the curr�nt Bond issues from Palm
Springs and Corona. The time frame for paying that off is 3 or 5 -
years. In the meantime, they must pay us an interest rate of
6%.
Carlos Ortega stated we had received authority to do the Bond
issue for Project Area #4. Given the current interest rate
scenario, we will have a full bond issue of about $10 million.
Some of those funds will go into a escrow that we can not use
yet. We will be pricing those as soon as we can.
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Minutes
Finance Committee
New Business City and Redevelopment Agency Investment Schedule
. • They are very much the same like they were last month, except
for the City. The total amount in the portfolios has increased,
and the interest has gone down slightly, because we had to buy
the investment with a lower yield. Not a significant change and
it is still profitable per Jean Ruth.
Bill Veazie had a question on Item 16062 page 24. Jean thinks
the zero coupon bond went into the wrong column, she will
check out and get back with Committee.
B. Review Short Tertn Investments Maturing in January.
1998
There are no investments maturing in January per Jean Ruth.
Paul Gibson said we will be getting new money in shortly from�
property taxes. I think the amount is about $12 million and the
city will be receiving $2 million.
C. State of California Local Agency Investment fund
Monthly RQport
No questions.
D. Monthly Financial Reuort for City Council
Bob Spiegel thought it would be a good idea if we could show
last years budgetary column. We are actually over the year-to-
date budget because you have two months of Marriott. On the
year-to-date actual, if we had "last year" budgeted, "this yea�"
budgeted and year-to-date, it would be helpful to understand.
E. Parkview Professional Office Buildings - Financial
Reports
Paul Gibson stated that at the last Council meeting, their is a
desire to use the office complex fund. We are going to put
together an actual policy to adopt and make it more official.
Carlos Ortega mentioned that the complex was built to offset
park maintenance. With regards to housing, we just
restructured our debt because we will need lots of money. Our
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Minutes
Finance Committee
obligation now for the debt service is $42 million a year. With
the new restructured schedule, we are looking at $2.8 million.
. We will have $2.8 million until the year 2009. The highest debt
year will be $3.5 million.
F. Desert Willow Golf Resort Financial Inf4rmation for
December.
Carlos Ortega state, If we only have to make up $44,000 for
February, March, April, May and June, we are in good shape.
Those are the high months where your revenue exceeds
expenditures.
Bob Spiegel asked if this information is public knowledge? His
suggestion was to take a look at the City of Indian Wells and do
a comparison. Paul Gibson stated that we received the
November report and Anthony Hemandez is reviewing it.
Carlos thought we should also get the City of Palm Springs.
Murray Magloff asked if the Redevelopment Agency had a
program as to the proportioning of housing vs. business.
Carlos Ortega expiained the Law mandates that we set aside
20% of our revenues for our housing programs. Suppose it is
not necessary to use that 20%? The Council would have to
make findings that we don't need to set that amount aside.
However, given the demographics of the census bureau data,
we would be challenged by the Housing Advocates.
The 80% that doesn't go to housing we spend very wisely. We
are participating in a $5 million Project on EI Paseo, we have
made an investment of$2.3 million in Desert Crossing and we
about to make an investment in the Town Center.
G. Palm Desert Recreation Facilities Corooration Income
Analysis for December
Paul Gibson explained this is the Liquor License for Desert
Willow.
Bob Spiegel was concerned about the Pro Shop profit margin.
Carlos Ortega suggested thought we look at next years. The
operator will be making a presentation to the Desert Willow
Committee in March regarding next years budget. 1 think one
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Minutes
Finance Committee
item we need to look at is if they are allocating the cost
properly. Bob Spiegel wanted to know if it would be •
. appropriate to invite all Council Members to that meeting?
Ray Diaz said " it will be set-up as a study session with Council
Members".
H. Background Questionnaires for Investment Agencies
Jean Ruth reported that in November the applicants were sent
information that we wanted them to review, fill-out and submit.
At this time, we have received information from 9 different
groups. Not one of them have qualified due to them not
meeting the minimum requirements of filling out the information
correctly. Jean responded that the questionnaire is difficult,
but that is the point.
Bob Spiegel asked who our Broker/Dealers are now? Smith-
Barney, Dean Witter, Wells Fargo Bank and Union Bank of
California.
Carlos Ortega asked why we need the Audited Financials?
Paul responded it shows the condition of the company.
Jean Ruth discussed the U4 Form requirement. A Broker who
is registered with the Securities and Exchange Commission,
must fill out the U4 every time he/she changes employers. Bill
Veazie asked Jean if our requirements were more stringent,
average or weaker than average. Our questionnaire are very
stringent because we ask more questions with regard to fraud
. and losses. .
I. Investment Policy
California Government code requires that an annual review and
re-adoption of a formal investment policy be reviewed every
January. Jean explained the additions to the policy are in bold
type and deletions are lined out.
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Minutes
Finance Committee
The policy approved last year was modified as follows:
Page 2 Paragraph 1 Line added that was
inadvertently left out of the
1997 policy
Paragraph 2 State what actually takes
place
Page 5 Section G Extend weighted average
by 5 days to allow the use
of the money market fund
used by Union Bank
Page 7 Paragraph 2 Change wording to remain
consistent throughout
Paragraph 3 Delete line that applies to
some but not all bonds
Paragraph 4 State what actually takes •
place
Schedule I Item 5 Eliminate item not used
Item 9 Delete duplication
Schedule II Items 2, 5, 9 & 10 Delete duplication
Schedule III Items 4, 5, 6, 7(c),
8, 11 & 15 Delete duplication
Items 1, 10, 12 & 13 Simplify language for
better understanding
Item•11 Added to set standards for
current brokers
Schedule IV List changed to include the
new names of firms we
deal with that merged in
. , 1997, and to delete firms
we do not use
Schedule V Time deposit purchase restrictions - changed
to 110% as is required by
government code
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Minutes
Finance Committee
It was recommended by Ray Diaz that the last sentence in
Section B Li uidi read as follows:
"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 will be reviewed by the Finance
Committee and approved by the City Council".
Jean Ruth recommended Paragraph 2 Maximum Maturites on
I'age 7 should also read "reviewed by Finance committee
and approved by the City Council".
Ray Diaz recommended Paragraph 4 Rennrtina
R�uirements on Page 7 should read "next regular
scheduled Council Meeting". The reason being is, if you had
a special meeting of the City Council right afterwards, it makes it
look like we would have to take it to that one and we may not be
able to.
Carlos Ortega recommended the word "us" be eliminated from
Item 4, Schedule II.
J. Comnrehensive Annual Financial Reqort 6I30/97 and
Redevelopment Agency Financial Statements
Paul Gibson stated on Page XII it list our various outstanding
general debt, the various RDA Bond issues, the advances
made to RDA, special assistance bonds, vacation/sick leave
and any notes.
We are required to list the principle officials and the
Organization Chart. The financial section is the same with the
exception that we are required to give a description of each
fund that is listed. Any required budget that is taking Council
action, it must be budget-to-actual so they can see if you meant
the requirements of the budget. The last section is the
statistical section. There are graphs also that will give you a 10
year history. The book is very comprehensive and we did a lot
of work to complete it.
K. Renorts and Remarks by apy Committee Member
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Minutes
Finance Committee
Murray Magloff had a question with regard to improvement
loans. It was stated the mobile Home Park was not an
. improvement, that was for the residence to acquire the Mobile
Home Park. They originally had a note on this and then we
acquired the note per Paul Gibson.
Paul Gibson explained our Council and Redevelopment Agency
is one in the same as far as members.
NEXT MEETING DATE The next Investment & Finance Committee meeting will be held
Wednesday, March 18, 1998 at 11:00 a.m.
ADJOURNMENT The Investment & Finance Committee adjourned at 1:00 p.m.
on a motion by Mr. Diaz and seconded by Mr. Veazie.
Respectfully submitted,
Diane L. Hines
Recording Secretary
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I N T E R '
�v � MEMO '
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0 F F I C E �
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To: Finance and Investment Committee �
From: Jean Ruth,Investment Manager � �
Subject: Janaary 1998 Investmeut Reports �
Date: February 11, 1998 !
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I
Some of the investments that were purchased in January as part of the defeasing of the Desert �
Rose Series B bonds were received by the trustee and then divided up among two or more trust i
accounts at the direction of the financial advisor. When I input the security informarion into the
SymPro system I was unawaze of the splits,therefore,all of the affected investments were input �
as a whole the way they were purchased. On Tuesday,when the splits were discovered, I had to �
stop the prepazation of the month-end report and correct the discrepencies. i
i
Since the reports were delayed,they were not completed in time to include them with the i
committee agenda. I hope to have the reports finished so that they can be distributed seperately �
on Friday, February 13. I
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STAiE OF CALIFORNUI MATT FONG. Ts�ssurer
OFFICEOFTHETREASURER , ���-" �E��RT
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SACRAMENTO ✓� "� "��'i T
98 ��;h� 30 pT � {3
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 942609
Date: 12/31/97 SACRAMENTO, CA 94209-0001
Page: O1 DECEMBER, 1997 STATEMENT
ACCOUNT NUMSER: 98-33-621
CITY OF PALM DESERT
ATTN: CITY TREASURER
73510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATE TYPE NO CALLER AMOUNT Bt1i:.ANCE
----------- -------------
BEGINNING BALANCE - REG �13 , 6�46 , 323 . 52
ENDING BALANCE - REG $13 , 6��6 , 323 . 52
GRAND TOTAL $i3, 6�}6, 323 52
---------------
--------------
SUMMP.RY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
REG 0 $0 . 00 � $0 . 00
' POOLED MONEY INVESTMENT .4CCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF DECEMBER 1997 WITH DECEMBER 1996
(Dollars in T6ousands)
DECEMBER 1997 DECEMBER 1996 CHANGE
Average Daily Por[folio $27,724,618 $27,592,674 +$131,944
Accrued Eamings $135,263 $130,624 +$4,639
Effective Yield 5.744 5.574 + .�7
Average Life--Month End(in days) 20] 213 - 12
Total Security Transactions
Amount $23,303,772 $16,123,293 +$7,180,479
Number 519 379 +�40
Total Time Deposit Transacdons
Amount $643,490 $]31,900 +$511,590
Number 56 23 +33
Average Workday Investrnent Acrivity $1,088,512 $774,057 +$314,455
Prescribed Demand Account Balances
For Services $156,665 $188,668 -$32,003
For Uncollected Funds $154,167 $154,616 -$449
LOCAL AGENCY INVESTMENT FUND*
SUNIl�IARY OF ACTIVITY
DECEMBER 1997
BEGINNING BALANCE DEPOSITS WITIiDRAWALS MONTH END BALANCE
$10,104,040,514.71 $1,944,799,863.69 $1,152,616,938.83 $10,896,223,439.57
"Local Agency Investrnent Fund Invested Through Pooled Money Investrnent Account
State of California
Pooled Money Investment Account
Market Valuation '
12/31/97
Description Carzying Cost Plus . Estimated
Accrued Interest Purch. Market Value Accrued Interest
United States Treasu :
Bills $ 1,943,103,423.35 $ 1,973,969,916.60 NA
Stri s $ 73,184,450.00 $ 93,131,350.00 NA
Notes $ 5,291,658,088.89 $ 5,289,911,170.00 $ 73,051,547.60
Federai A nc :
Bonds $ 1,081,677,229.18 $ 1,081,639,245.50 $ 13,179,672.62
Floaters $ 265,000,000.00 $ 265,015,200.00 $ 1,741,961.60
MBS $ 145,162,959.81 $ 145,049,770.49 $ 856,986.90
GNMA $ 2,643,011.03 $ 3,042,784.32 $ 25,891.74
SBA $ 216,741,554.60 $ 218,340,022.78 $ 2,167,735.49
FHLMC PC $ 25,763,510.65 $ 27,591,159.42 $ 413,606.01
Discount Nates $ 957,176,950.69 $ 966,778,269.60 NA
Bankers Acce tances $ 321,640,543.32 $ 322,542,740.98 NA
Co orate:
Bonds $ 1,014,851,313.75 $ 1,013,539,559.44 $ 17,276,458.14
Floaters $ 437,002,433.86 $ 436,353,835.00 $ 2,311,814.53
CDs $ 6,497,887,385.54 $ 6,493,524,034.20 $ 25,565,727.78
Bank Notes $ 930,000,000.00 $ 929,610,611.00 $ 6,200,333.33
Re urchase A reements $ - $ - NA
Time De osits $ 1,072,795,000.00 $ 1,072,795,000.00 NA
AB 55 & GF Loans $ 1,430,961,844.00 $ 1,430,961,844.00 NA
Commercial Pa er $ 7,281,904,059.50 $ 7,282,879,181.7A NA
Reverse Re urchase $ 197,332,500.00 $ 197,332,500.00 $ 799,080.04
TOTAL $ 28,791,823258.37 $ 28,849,343,195.07 $ 141,992,655.71
Estimated Market Value Including Accrued Interest $ 28,991,335,s5o.�8
Repurchase Agreements,Time Deposits, AB 55&General Fund loans, and
Reverse Repurchase agreements are carcied at portfolio book value(carrying cost).
Certificates of Deposit(CDs), Bank Notes (BNs), and Commercial Paper(CPs)less
than 90 days are carried at portfolio book value(carrying cost). Interest accrued
from the date of purchase on CDs and BNs under 90 days is not included.
0
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Local Agency Security Program
Not Part of LAIF
On January 1, 1998, the administrative responsibilities of the Locai Agency Security
Program transferred from the Department of Financial Institutions in San Francisco to the
State Treasurex�s Office (STO) in Sacramento. The move was made as a result of Assembly
Bi111432, which designates the State Treasurer as the Administrator for the program.
T'his program is in no way related to the Local Agency Investrnent Fund (.LAIF).
The Local Agency Security Program was created to prevent the loss of local agency
funds by ensuring that deposits of local agencies aze either insured or protected by pledged
collateral.
The Public Finance Division,Securities Clearance Section of the STO is responsible for
managing the program. If you have any questions please call Chris Vance at (916)654-1815.
LAIF Bond Local Agency Investment
Advisory Board
Pl'oCeed �1CCoultts Member Profile
As of January 1, 1998, govemmental George W. Jeffries is our fourth
agencies interested in opening a bondproceed n►ember profile.
account with the I,AIF are no longer required George, who brings over 35 years of
to have a regular accountestablished prior to experience in investment securities and
opening a bond proceed account commercial banking, was appointed to the
To open a bond proceed account, an Board on September 23, 1996 by Treasurer
agency must file with the State Treasurer a Matt Fong.
Resolution, passed by the governing body of George is President of G.W. Jeffries &
that agency, allowing for the deposit of bond Associates, Inc., a financial advisory firm, the
proceeds, and must complete and submit a Treasurer of the City of Tustin,Advisor to the
bond proceed applicatioty bank authorization Orange County Treasurer,serves as Technical
form and an official statement Advisor on the California Debt Advisory
Should an agency wish to open a Commission, and is a member of the
regular account after a bond proceed account California Municipal Treasurers Associahon.
has been established, it will be necessary for Prior to his current positions, George
an agency to complete and submit a �+'as the Chief Investment Officer for the Los
Resolution, passed by the governing body of Angeles County Treasurer and was
that agency, and a bank authorization form. responsible for managing the County's $8
billion portfolio.
. . . ��
� �
- STATE OF CALIiORNIA MAiT FONG,Trssawer
OFFICE OF THE TREASURER
SACRAMENTO � .
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 942809
Date: 12/31/97 SACRAMENTO, CA 94209-0001
Page: O1 DECEMBER, 1997 STATEMENT
ACCOUNT NUMBER: 65-33-015
PALM DESERT REDEVELOPMENT AGENCY
ATTN: PAUL GIBSON, TREASURER
73-510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTTVE TRANSACTION TRAN CONF AUTH TRANSACTTON
DATE DATE TYPE NO CALLER AMOLJNT BALANCE
BEGINNING BALANCE - REG $i3, 169 , 448 . 87
12�1@�97 12�18�97 RD 731 JER $1 , 000 , 000 . 00 $14 , 169 , 448 . E37
ENDING BALANCE - REG $14 , 169 , 448 . 87
---------------
GRAND TOTAL $14, 169, 448 . 87
---------------
---------------
SUMMARY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- ---------------------
REG 1 $1 , 000 , 000 . 00 $0 . 00 -
, POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF DECEMBER 1997 WITH DECEMBER 1996
(Dollars in Thousands)
DECEMBER 1997 DECEMBER 1996 CHANGE
Average Daily Portfolio $27,724,618 $27,592,674 +$131,944
Accrued Eaznings $135,263 $130,624 +$4,639
Effective Yield 5.744 5.574 +.17
Average Life--Month End(in days) 201 213 - 12
Total Security Transactions
Amount $23,303,772 $16,123,293 +$7,180,479
Number 519 379 +140
Total Time Deposit Transactions
Amount $643,490 $131,900 +$511,590
Number 56 23 +33
Average Workday Investment Activity $1,088,512 $774,057 +$314,455
Prescribed Demand Account Balances
For Services $156,665 $188,668 -$32,003
For Uncollcctad Funds $154,167 $154,616 -$449
LOCAL AGENCY INVESTMENT FUND*
SUMMARY OF ACflVITY
DECEMBER 1997
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$10,104,040,514.71 $1,944,799,863.69 51,152,616,938.83 510,896,223,439.57
'Local Ageacy Investrnent Fund Invested Through Pooled Money Invesmxnt Account
State of California
Pooled Money Investment Account
Market Valuation
12/31/97
Description Carrying Cost Plus Estimated
Accrued Interest Purch. Market Value Accrued Interest
United States Treasu :
Bills $ 1,943,103,423.35 $ 1,973,969,916.60 NA
Stri s $ 73,184,450.00 $ 93,131,350.00 NA
Notes $ 5,291,658,088.89 $ 5,289,911,170.00 $ 73,051,547.60
Federal A enc :
Bonds $ 1,081,677,229.78 $ 1,061,639,245.50 $ 13,179,672.62
Floaters $ 265,000,000.00 $ 265,015,200.00 $ 1,741,961.60
MBS $ 145,162,959.81 $ 145,049,770.49 $ 856.966.90
GNMA $ 2,643,011.03 $ 3,042,784.32 $ 25.891.74
SBA $ 216,741,554.60 $ 218,340,022.78 $ 2,167,735.49.
FHLMC PC $ 25,763,510.65 $ 27,591,159.42 $ 413,606.01
Discount Notes $ 957,178,950.89 $ 966,778,269.60 NA
Bankers Acce tances $ 321,640,543.32 $ 322,542,740.98 NA
Co orate:
Bonds $ 1,014,851,313.75 $ 1,013,539,559.44 $ 17,276,458.14
Floaters $ 437,002,433.86 $ 436,353,835.00 $ 2,311,814.53
CDs $ 6,497,887,385.54 $ 6,493,524,034.20 $ 25,565,727.78
Bank Notes $ 930,000,000.00 $ 929,610,61 t.00 $ 6,200,333.33
Re urchase A reements $ - $ - NA
Time De osits $ 1,072,795,000.00 $ 1,072,795,000.00 NA
AB 55&GF Loans $ 1,430,961,844.00 $ 1,430,961,844.00 NA
Commercial Pa er $ 7,281,904,059.50 $ 7,282,879,181.74 NA
Reverse Re urchase $ 197,332,500.00 $ 197,332,500.00 $ 799,080.04
TOTAL $ 28,79t,823,258.37 $ 28,849,343,195.07 $ 141,992,655.71
Estimated Market Value Including Accrued Interest $ 28,991,335,850.78
Repurchase Agreements,Time Deposits, AB 55 8 General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
Certificates of Deposit(CDs), Bank Notes (BNs), and Commercial Paper(CPs)less
than 90 days are carried at portfolio book value (carrying cost). Interest accrued
from the date of purchase on CDs and BNs under 90 days is not included.
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�.::
Local Agency Security Program
Not Part of LAIF
On January 1, 1998, the administrative responsibilities of the Local Agency Security
Program transferred from the. Departrnent of Financial Institutions in San Francisco to the
State Treasure�'s Office (STO) in Sacramento. The move was made as a result of Assembly
Bill 1432, which designates the State Treasurer as the Administrator for the program.
T'his program is in no way related to the Local Agency Inves�►ent Fund (LAI�.
The Local Agency Security Program was created to prevent the loss of local agency
funds by ensuring that deposits of local agencies aze either insured or profiected by pledged
collateral.
T'he Public Finance Division,Securities Clearance Section of the STO is responsible for
managing the program. If you have any questions please call Chris Vance at (916)654-1815.
I.AIF 8and Local Agency Investment
Advisory Board
Pl'oCeeC� ACCoultts Member Profile
As of January 1, 1998, governmental George W. Jeffries is our fourih
agencies interested in opening a bond proceed �ember profile.
account with the LAIF aze no longer required George, who brings over 35 years of
to have a regular account established prior to experience in investment securities and
opening a bond proceed account commercial banking, was appointed to the
To open a bond proceed account, an Board on September 23, 1996 by Treasurer
agency must file with the State Treasurer a Matt Fong.
Resolution, passed by the goveming body of George is President of G.W. Jeffries &
that agency,allowing for the deposit of bond Associates,Inc., a financial advisory firm,the
proceeds, and must complete and submit a Treasurer of the City of Tustin,Advisor to the
bond pmceed application, bank authorization �'ange Counfiy Treasurer,serves as Technical
form and an official statemenk Advisor on the California Debt Advisory
Should an agency wish to open a Commission, and is a member of the
regular account after a bond proceed account California Municipal Treasurers Association.
has been established, it will be necessary for Prior to his current positions, George
an agency to complete and submit a h'as the Chief Investment Officer for the Los
Resolution, passed by the governing body of Angeles County Treasurer and was
that agency, and a banlc authorization form. responsible for managing the CounYy's $8
billion portfolio.
� . .
. •
' • t
SYNOPSIS OF MINUTES LOCAL AGENCY
ADVISORY BOARD
Meeting of December 11, 1997
The Advisory Board deait with five specific issues at this meeting.
The first issue addressed GASB Statement 31 . The State
Treasurer's Office was successful in convincing the Governmental
Accounting Standards Board that there was a need to publish an
implementation guideline for Statement 31 . GASB further requested
the assistance of Treasurer Fong to serve in an advisory capacity for
the drafting of the guidelines. GASB has also realized that some
pooted programs will need special language in the guideline, as the
current statement is not workable. GASB issued a draft of the
Implementation Guide to the State Treasurer's Office (STO), the
State Controller's Office, and the Department of Finance for review
and comment. The Implementation Guide will be issued to all levels
of govemment in April 1998.
The second issue was a report on the progress of the LAIF system
rewrite. LAIF will run parallel systems from April 1 to June 30, 1998.
The anticipated implementation date of the new Oracle system is
July 1, 1998.
The third issue was the 1998 LAIF Conference. The Board agreed to
hold the 1998 LAIF Conference an September 18, 1998. The pre-
conference will be held on September 17, 1.998 at the State
Treasurer's Office.
The fourth issue was the announcement that beginning January 1,
1998, govemmental agencies interested in opening a bond proceed
account at LAIF are no longer required to have a regular account
established prior to opening a bond proceed account.
The fifth issue dealt with the concept of using automatic
clearinghouse (ACH) as a method of transferring LAIF funds. A
study will be conducted and the results reported at a future LAIF
Board meeting. _
, -
� City of Palm Desert
Palm Desert Office Complex
Malysie of
Budget to Actual for the Month of January 1998
January-98 January-96 # °/ YTD YTD # °/
Budget Aclual Variance Variance Budget Ackual Variance Variance
Revenues ��
Rental $ 58,892 $ 61,879 $ 2,957 105.07%�:"�� $ 412,242 $ 443,671 $ 31,429 107.62%
Dividends/Interest $ - $ 1,752 $ 1,752 � 100.00%;I $ - $ 7,906 $ 7,906 100.00%
Total Revenues § 58,892 $ 63,631 $ 4,739 108.05%�.'� $ 412,242 $ 451,577 $ 39,335 109.54%
Espenses � -
Professional-Acwunting&Auditing $ 2,000 $ 3,746 $ (1,796) 187.30%�>'��. $ 14,000 $ 20,984 $ (6,984) 149.59%
Professional-ManagementFee $ 3,000 $ 5,557 $ (2,55� 185.23%�i''�. $ 21,000 $ 28,879 $ (7,879) 137.52%
ProfessionalAtherConsultants $ - $ - $ - 0.00%-1:�: $ - $ 1,336 $ (1,336) 100.00%
Repa"vs&Maintenance Building $ 9,006 $ 9,505 $ (499) 105.54%�ij�j� $ 63,040 S 53,989 $ 9,051 85.64%
Repairs&Maintenance-I.andscaping $ 1,079 $ - $ 1,079 0.00%` $ 7,553 $ - $ 7,553 0.00%
Utilities-Water $ 78 $ 10 $ 68 12.49%� $ 543 $ 787 $ (244) 144.94%
Utilities-Gas/Electric $ 4,238 $ 2,235 $ 2,003 52.74%��;�. $ 29,663 $ 31,715 $ (2,D52) 106.92%
UtilidesTrash $ 496 $ 525 $ (29) 105.84% '- $ 3,471 $ 3,663 $ (192) 105.53%
Telephone $ 229 $ 88 $ 141 35.61%i�'��. $ 1,604 $ 936 $ 668 58.35%
Insurance $ 521 $ - $ 521 0.00%;'�. $ 3,646 $ - $ 3,646 0.00%
TotalExpenses $ 20,646 $ 21,665 $ (1,020) 104.94%��-� $ 144,520 $ 142,289 $ 2,231 98.46%
OperaNngIncome $ 38,246 $ 41,966 $ 3,720 109J3% !. S 267,722 S 309,288 $ 41,566 115.53%
..............................................................................................................................................................�........"".._............................_..........................................................................
Depreciation $ 8,083 $ 9,186 $ (1,103) 113.64%f,� $ 56,583 $ 64,302 $ (7,T19) 113.64%
OperaNng Net Income $ 30,163 $ 32,780 $ 2,617 108.68°h 'i� S 211,139 $ 294,986 $ 33,847 116.03°/
Prtor Year Adjuetmente' $ - $ - $ - 0.00%'�.: $ - $ �(23,362) $ 23,362 300.00%
i
+�1E1'�C7�4fE .... . `$' .�� '$ : � ,:� .�r''`�mrt'�!.,6;` ;.. . , ..l;$' '�1�'i: 26$r�;.�'i,.. �i'rY�€ . .e..il1'+., ,
i
•Prior period adjustments represent excess CAMs reimbursed to the tenants,and the property tax refunded to PDOC for pmperiy tax paid
March]996.
� Palm Deaert Office Complex `
Montlilg Income 3laMmmt
For Fiscal Year 1997-1996
AMval Actval Actual Actual Actual Actua( Aclual
July Auguet September Octaber November December Janvary
Rental $ 33,801.21 $ 67,926.66 $ 84,078.59 $ 73,284.33 $ 57,573.35 $ 65,128.24 $ 61,878.97
Interest/Dividends $ 206.86 $ 97421 $ 1,001.97 $ 1,086.03 $- 1,942.46 $ 1,442.9;6 $ 1,752.13
Other $ - $ . - $ _ .
Total Revenues $ 34,OOS.07 $ 68,900.87 $ 85,080.56 $ 74,370.36 $ 59,015.81 $ 66,57070 $ 63,63110
Professional-Amounling&Auditing $ 8,000.00 .$ � 2,OOO.Ib $ 2,000,00 $ 1,746.00 $ 1,746.00 $ 1,746.00 $ 3,746.00
Professional-ManagementFee $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,W0.00 •$ 5,821.89 $ 5,500.00 $ 5,556.85
Professional-Other Outside Consultants $ - $ - $ _ $ _ $ qgz.72 $ 853.45 $ -
Repairs&Maintenance- Building $ 6,77326 $ 4,279.51 $ 2,449.56 $ 9,416.04 $ 9,833.93 $ 13,731.73 $ 9,504.71
Repairs&Maintenance-Landscaping $ - $ - $ _ $ _ $ _ $ _
UtilitlesWater � $ 98.09 $ 97.49 $ 101.90 $ 122.55 $ 86.73 $ 270.46 $ 9.68
UdliHesGas/Electric $ 4,963.11 $ 5,641.96 $ 6,109.42 $ 6,170.84 $ 5,451.21 $ 1,144.16 $ 2,234.78
UtiliHesTrash $ 811.42 $ 436.22 $ 452.42 $ 457.41 $ 457.60 $ 529.15 $ 524.77
Telephone $ 139.71 $ 141.75 $ 29.96 $ 140.90 $ 141.06 $ 253.75 $ 88.49
Insurance $ - $ - $ _ $ _ $ _ $ _ $ _
Depredation $ 9,185.93 $ 9,185.93 $ 9,185.93 $ 9,185.93 $ 9,185.93 $ 9,185.97 $ 9,185.97
Prior Year Adjustments $ - $ - $ (815.83) $ 14,017.98 $ $ (36 563.92) $ -
Total Expenditures $ 32,971.52 $ 24,782.86 $ 22,513.36 $ 42,257.65 $ 33,201.07 $ (3,34925) $ 30,851.25
,.
Rekincome ' s.�.'.:. �� ,` xA�6:"F5 .� �i8l.tt3 � .��"� fi ,'.33i1'�"�`�.�� �atli'!�T# '�'`. 63�919:�'i �' $�5-
Budget Budget Budget Budget Budget Budget Budgrt
July Augvat September October November December January
Rental $ 58,891.67 $ 58,891.67 $ 58,891.67 $ 58,591.67 $ 58,891.67 $ 58,891.67 $ 58,891.67
Interest/Dividends $ - $ - $ _ $ _ $ _ § _ $ _
Other $ - $ - . $ _ $ _ . $ _ $ _ $ _
� Total Revenues $ 58,891.67 $ 58,891.67 $ 58,891.67 $ 58,891.67 $ 58,891.67 $ 58,891.67 $ 58,891.67
Professional-Accounting&Auditing $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,0OO.OD $ 2,000.00
Professional-ManagementFee $ 3,000.00 $ 3,000.00 $ 3,W0.00 $ 3,000.00 $ 3,OOO.IX1 $ 3,000.00 $ 3,000.00 �
Protessional-O[her outside Consultants $ - $ - $ - $ _ $ _ $ _ $ _ �
Repairs&Maintenance-Building $ 9,005.75 $ 9,00575 $ 9,005.75 $ 9,005.75 $ 9,005.75 $ 9,005.75 $ 9,W575
Repairs&Maintenance-Iandscaping $ 1,079.00 $ 1,079.W $ 1,079.00 $ 1,079.00 $ 1,079.00 $ 1,079.00 $ 1,079.00 �
UtilitiesWater $ 77.50 $ 77.50 $ 77.50 $ 77.50 $ 77.50 $ 77.50 $ 77.50
UtiliHeaGas/ElecMc $ 4,237.50 $ 4,237.50 $ 4,737.50 $ 4,237.50 $ 4,237.50 $ 4,297.50 $ 4,237.50
Utilities-Trash $ 495.83 $ 495.83 $ 495.83 $ 495.83 $ 495.83 $ 495.83 $ 495.83
Telephone $ 229.17 $ 229.17 $� 229.17 $ 22917 $ 229.17 $ 229.17 $ 229.17
Insurance � $ � 520.83 $ 520.83 $ 520.83 $ 520.83 $ 520.83 $ 520.83 $ 520.83
Depreciation $ 8,083.33 $ 8,083.33 $ 8,083.33 $ 8,083.33 $ 8,083.33 $ 8 083.33 $ 8 083.33
ToWlExpenditures $ 28,728.91 $ 28,728.91 $ 28,728.91 $ 28,728.91 $ 28,728.91 $ 28,728.91 $ 28,728.91
Netincome�,.. �.�k �t'.�62R6 3 3tFr?629&i S ;�Y" ..,,. ''� :"9t� 4 �� ��S 9N1 . s'.:' �''' n �:; a`�' .<<... ,.. ..
PALM DESERT REDEVELOPMENT.. ,ENCY
COMBIN6D STATEMENT OF ACTUAL
, REVENUES&EXPENDITURES
COMPARED TO BUDGET
37 Jan-98
RDA RDA %of (FAV)UNFAV
Budget VTD Budget Actual VTD Budget Variance
REVENUES
t Taxincrement• 24,328.200.00 14.19�,450.00 12,799,349.01 90.19% 1,392,100.99
2lnterest 1,904,000.00 1,110,666.67 2,993,008.48 269.48°/ (1,882,341.81)
6 Sales of Property 0.00 0.00 10,803,405.00 0.00% (10,803,405.00)
3 Reimbursement From Other Agencies 759,000.00 442,750.00 307,411.46 69.43% 135,338.54
4 Other Revenue 364,000.00 212,333.33 613,263.04 288.82°/ (400,929.71)
TOTAL REVENUES 27,355,200.00 15,957.200.00 27,516,436.99 172.44% (11,559,236.99)
� � � FAV(UNFAV)
EXPENDITURES Variance
Administretive Costs 1,318,200.00 768,950.00 465,989.41 60.60% 302.960.59
Professional Services E,160,613.00 1,260,357.58 476,077.92 37.77% 784,279.66
Properry Tax Administretive Fee 563,900.00 328,941.67 397,766.00 120.92qa (68,824.33)
Cost of Inventory Sold
. CapitalOutlay 22,300.00 13,008.33 25,333.87 0.00%a (12,325.54)
Deep Canyon 8 Hwy'I t 1 6,241.00 4,807.25 4,259.43 88.60% 547.82
Parking-The Gardens 5,000,000.00 2,916,666.67 0.00 0.00%> 2,976,666.67
EI PaseolHignway 74 7,719.00 7,719.00 7,719.33 100.00% (0.33)
I-t0lnterchange 250,000.00 250,000.00 250,000.00 100.00°/, 0.00
Super Block 111-landscape 60,000.00 35,000.00 0.00 0.00% 35,000.00
Desert Crossing Public Improvement 43,450.00 25,345.83 0.00 0.00°/ 25,3d5.83
� Desert Willow-P#1 8,001,478.00 4,667,528.83 0.00 0.00°/ 4.667,528.83
North Spherelnfrastructure 26,555,050.00 15,490,445.83 3,532,153.53 22.80% 11,958,292.30
Desert Willow P#2 14,899,120.00 8,691,153.33 1,085,575.09 12.49% 7,605,57824
P#4 Streetlmprovemen4s 1,011,129.00 589,825.25 328,512.90 55.70qo 261,312.35
6 Desert Rose 131.002.00 76,417.83 3,786,165.43 0.00% (3,709,747.60)
Air Quality Management 200,000.00 116,666.67 25,916.85 0.00% 90,749.82
Office Equipment 5,000.00 2,916.67 0.00 0.00% 2.916.67
Hwy 74 and Hwy 11'I Improvements 0.00 0.00 0.00 0.00% 0.00
Land Purchases 0.00 0.00 0.00 0.00°k 0.00
Housing Subsidies
AHA Housing Subsidies 4,315,000.00 2,517,083.33 848,493.29 33.71°/, 1,668,590.04
Desert Rose Subsidies 200,000.00 116,666.67 0.00 0.00% 116,666.67
Decline in Value on Inventory Held
For Resale
Payments to Other Governmental Agencies 6,978,400.00 4,070,733.33 1,062,324.90 26.10qo 3,008,408.43
Bond Issuance Costs 0.00 0.00 988,865.10 0.00% (988,865.10) �
Bond Discount 0.00 0.00 647,595.00 O.00qo (647,595.00)
5 Interest And Fiscal Charges � 10,622,000.00 6,196,166.67 9,471,497.76 152.86% (3,275.331.09)
5 Principal Payments 2,430,000.00 1,417,500.00 4,605,000.00 324.87% (3,187,500.00)
TOTALEXPENDITURES 84.782.602.00 49,563,900.75 28,009,245.81 56.51% 21,554,654.94
'TAX INCREMENT REVENUE ARE USED TO PAY DEBT SERVICE PAYMENTS.
1 Tax IncrNMnl is p3ia in Jan ana May W eeU year.
2 Most imerest mvenue is baseC on investmenls nek aM is rewrdeE a�maNMy.
3 Reimbursemmts ara receved et wnous limea dunnp Ihe yesr.
� Othx Revenue is receiveE al vanws�imes tlunng Me year.
5 Pnndpal eM IMercsl Paymenb e�e made Nrice a yeer wiN Me e:ttplion
d Oie DutM Auclion BanCs whitli ptY��M'75 Oays.%M YTD Budpel
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� Deeert WiIIaw Golf Coucee
Hudget Ve.Actval For the Month of Janaary 1998
Jam98 Jan-9S $Varience b Var YTD YTD $Variance %Var
Revmve Budgeted Acma] Current Current Budget Actual YTD YTD
GolfCourseFee $368,959 $299,942 ($69,01� 8129b $1,280,114 $1,087,977 ($192,13� 84.99°6
CartFee $1,840 $3,515 $1,675 191.03% -$8,080 $15,914 $7,834 196.96%
ProShop $39,820 $31,227 ($8,593) 78.42k $170,200 $158,719 ($ll,481) 9325%
Range $5,800 $3,897 ($1,903) 6719% $7a",594 $73,357 ($2,23� 9126�
Food&Beverages 323,800 $24,068 $268 101.13% $]06,075 $102,110 ($3,965) 9616%
Leaming Center $0 $25,731 $25,731 100.00 k $0 $50,178 $50,178 100.00%
OtherRevenue $100 $1,095 $995 1095.00% $700 $8,900 $8,200 1271.43%
Total � 0,319 89,475 ($50,894) 88.45% 1,590,763 1,447,155 ( 143,608) 90.97%
Exprnditures 4
Salaries and Benefits $110,523 $113,599 ($3,056) 102.76% $747,620 $696,469 $51,151 93.16%
Golf Course Maintenance $25,926 $68,580 ($42,654) 2b4.52% $321,832 $472,172 ($100,340) 131.18%
CartExpenses $9,208 $9,789 ($581) 106.31% $64,456 $71,421 ($6,965) I10.81%
ProShopExpenses $1,140 $2,609 ($1,469) 228.86% $42,580 $47,350 ($4,770) 1ll,20%
Pro Golf Shop Cost of Goods Sold $22,272 $13,318 $8,954 59.80 b $98,280 $83,610 $14,670 85.07%
Range Expenses $100 $� $100 0.00% $2,900 $3,171 ($271) 109.34%
Food&Bev.Ezpenses $2,360 $3,143 ($783) 13318% $14,220 $32,60.5 ($18,385) 229.29%
Food&Bev.Cost ot Goods Sold $8,990 $8,076 $914 89.83 k $39,670 $48,908 ($9,238) 1?329%
General di Admutishation Expenses $46,322 $30,378 $t5,944 65.58% $299,821 $184,121 $115,700 61.41%
Leaming Center $0 . $37,228 ($37,228) 700.00� $0 $59,563 ($59,563) 100.00°h
Menagement Fee $12,500 $12,500 $0 100.00% $87,500 $87,500 $0 100.00%
DepreciationExpense $18,OT7 $28,345 ($10,268) 156.80% $126,539 $198,415 ($71,576) 156.80%
CapitalExpense $10,717 $2,553 $8,164 23.82% $77,194 $18,725 $58,469 2426%
Interest $3,004 $0 $3,004 0.00% $21,030 $0 $21,030 0.00%
ToWI 271,139 30,098 ( 8,959) 12174% 1,943,642 1,954,030 ( 10,385) 100.53%
Net Profit(Loss) $169,179 $59�377 ($309,802) 35.10% (§35Z879) (5506,875) ($153,996) 143.64°/
. .. .. ... . _ . ... .. . . . . . . .. . .. ... . . . _ . ... _ ___ . . ..... .. . . . . . . . . . .
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Palm Desert RecreaHonal Facilities CorporaHon
Monthly Income Analysis
For January 1996
Jan-98 Jan-98 # %
Budget Actual Vaziance Vaziance
Food&Beverage Revenues $ 73,800•00 $ 24,068.00 $ 268.00 101.13°�
TotalRevenues $ 23,800.00 $ 24,068.W $ 268.00 101.13%
Salaries $ 11,145.0� $ . 9,303.00 $ 1,842.� 83.47%
Cost of Goods Sold-F&B $ 8,990.00 $ 8,076.00 $ 914.00 89.83%
Food&Beverage Expense $ 2,360.00 $ 3,143.00 $ (783.00) 133.18%
Total Expenses $ 22,495.00 20,522.00 1,9T3.00 91.23%
Net Income(Loss) $ 1,305.00 $ 3,546.00
�
Note:The above revenues and expenditures are aLso included in the Desert Willow analysis.
City of Palm Desert
Desert Willow Goff Course
Analyais of Cash Reaerves Requirement
Three Month
Projected Expenditures February-98 Mazch-98 April-98 Projected Expenditures
Payroll ' $ 104,470 $ 110,523 $ 107,248 $ 322,241
COGS $ 31,801 $ 34,833 $ 30,319 $ 96,953
Operating I $ 173,179 $ 130,658 $ 131,454 $ 435,321
�Totals �� $ 309,450 $ 276,044 $ 269,021 $ 854,515 �
Caeh Reserve Analysis One Month Three Months
Required Reserve $ 309,450.00 $ 854,515.00 �
Cash on Hand —� $ 551,838.00 $ 551,838.00 �
Variance-Favorable(Unfavorable) ' $ 242,388.00 $ (302,677.00)
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THE MCCALLUM THEATRE J
THE BOB HOPE CULTURAL CENTER ���
� '3-00o Fred Warine Drivv,Paim p�sac,Calilomia 9]2G0
7e/p4onc>G034G.G505 F r7G09419508
E-AIn�L m.nllum�'p�lm-dcsercarG .,
January30, 1998 «'orldlC'inblfzbhapiipnlm-deserc.orgr'mccallum �' 1I /
- . . . �n GA./ .
� \ 1��� :
��
The Honorable Jean Benson, Mayor ��
Robert A. Spiegel, Mayor Pro-Tempore ✓ �
Councilman Richazd Kelly � �
Councilman Buford A. Crites
Councilman James C. Ferguson
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
RE: Agreement of Non-Profit Organization to Provide Services to
the Ci of Palm Desert / Report of Services Rendered and
t9 be Rendered/Due January 1998
Dear Mayor Benson and Councilmen:
On July 11, 1997 the Theatre received the City's funding check in the
amount of$40,000.00 along with the above-referenced Agreement of Non-Profit
Organization to provide services to the City of Palm Desert. In compliance with
the Agreement, set forth below is the McCallum Theatre's January 1998 report
of services rendered and to be rendered.
At the time of the Theatre's application to the City we specified the
following three areas where the requested funding would be used: the Lincoln
Center Institute aesthetic education program, l Oth anniversary community
oriented events, and capital equipment replacement.
�Z�uw}'
��--�/
Page 2.
AE TH TI D ATION PRO RAM
Since July, 1997, the Theatre's aesthetic education program has taken form
as one component of the newly formed McCallum Theatre Institute ("MTI"),
a formal education department which includes the aesthetic education program
(modeled after the Lincoln Center Institute program), student internship program,
Imaginatinn Station summer creative arts camp, educational tours, and free student
performances program. MTI's mission is to create and produce an interesting mix
of educational programming for all age groups in conjunction with, and in
addition to the regular McCallum Theatre programming. The Institute's programs
reflect our belief that we all are creative beings and that the arts should be studied
in an active, experimental way.
In April 1997 Dr. Mark Schubart, Director of the Lincoln Center Institute,
visited the Theatre and met with staff, representative Board members, local school
administrators and artists. Thereafter Dr. Schubart made his recommendations to
the Theatre as to the feasibility of the Theatre pursuing the creation of an aesthetic
education program and among his recommendations was the suggestion that the
Theatre hire an administrator for a period of 6 to 12 months to implement the pilot
program. The Theatre, rather than hiring a new season employee, chose to
promote one of its long time employees (a part-time development coordinator)
who had the arts education and creative programming background, and oper-
ational knowledge of theatre to both administer the aesthetic education program as
well as all the other components of the McCallum Institute, and thus this
administrative position was created with Kajsa 'Thuresson-Frary becoming the
Theatre's first Director of Education.*
From mid-July, 1997 through December 31, 1997, a portion of the City's
funding has been dedicated to the underwriting of Ms. Thuresson-Frary's salary.
The total dedicated is $8,940.00; a detailed accounting of this expenditure is
attached.
'The part-time development position vacated has since been filled by a new part-time employee with a long term
professional background in non-profit development.
Page 3.
Spring 1998 will bring together the work thus far accomplished in getting
the pilot program "off the ground". Associations have been made with four local
school districts, all of which have welcomed the addition of the aesthetic educa-
tion program. In April 1998, Ms. Cathryn Williams, Deputy Director of LCI, is
coming to the Theatre to conduct an on-site teacher introduction to the program.
for the pilot's summer session. Invited to this "mini-workshop", in addition to the
participating teachers, will be school administrators, the Theat.re's Board of
Trustees, MTI board members and advisory board members. Additionally, a
highly qualified, experienced LCI teaching artist, along with Ms. Williams, will
conduct an orientation for teaching artists hired by the Theatre for the summer
session to take place in June. Significant expenses to be incurred in connection
with these particular spring activities include the transportation and housing of
Ms. Williams and the teaching artist, the hiring of teaching artists for the summer
session, as well as the hiring of the "work of art" to be studied (the pieces range
from full-length plays to piano solos). The payment of administrative costs, as
well as underwriting the travel expenses for the LCI representatives, and the
underwriting of the teaching artists and "work of art" will come from the City
funding as available at the time each expense is incurred.
lOTH ANNIVERSARY OMMUNITY-ORIFNT n FVFNT�
The first community event celebrating the Theatre's l Oth anniversary season
was the "Bowling for Bucks" tournament and party on Saturday, October 18th at
Palm Springs Lanes in Cathedral City. Almost 400 Valley friends of the
McCallum participated in the day's events representing 92 teams sponsored by
local businesses and organizations. City funds were dedicated to the expenses of
this event, with an accounting of same attached. �
Scheduled for Sunday, April 26, 1998, to compliment the City's "Spring
Fest" is a second l Oth anniversary community event, "On Call" - an event being
designed to showcase local Coachella Valley talent. City funds, as available,
will be dedicated to the creation, promotion and production of this event.
Additional l Oth Anniversary Community oriented events included on
the spring calendar are: May 4th & Sth, Children's Playtime Productions,
Page 4.
will present its creative and innovative version of the children's classic, "Winnie
the Pooh" at the Theatre with performances being offered free of charge to
Coachella Valley students. May l lth and 12th, Palm Desert High School's Peer
Power Productions will present its most recent original theatrical piece which,
in keeping with its mission, will address relevant social dilemmas facing Valley ..
families. Again, performances will be offered to Valley students at no cost.
Both productions are being underwritten by the Theatre and expenses incurred, as
available, will be paid City funds.
CAPITAL EOUIPMENT F.PLA .M NT
Capital equipment replaced by the Theatre during this six month period
(and not otherwise funded) are:
• Fly ropes for the stage (ropes that raise/lower sets, set pieces) $2,505.00
• Fax machine. $2,149.61
Any equipment replacement purchases made during the spring, as
appropriate, will be paid for with City funds still available.
Respectfully submitted
r----—1
�' .
i' _ ._._ �-�
� ANTOTIIA GRAPHO
President & C
_�_
cc: Mr. Paul Gibson
Department of Finance
ACCOUNTIN(C
July 31, 1997 through December 31, 1997
AESTHETIC EDUC�ITION PRO AM•
Director of Education salary: July 1997 $ 480.00
September 1997 960.00
October 1997 2,500.00
November 1997 2,500.00
December 1997 2.500.00
SUB-TOTAL $ 8,940.00
lOTH ANNIVERSARY COMM iNITY ORI NT EVENT •
"Bowling for Bucks" - Printworks $ 1,300.00
Ned Redway Photography 340.00
Party 4 Less 35.00
Pa1m Springs Lanes 2,800.00
Kirsch Signs 2,900.00
Audio Co. 250.00
Touch 2 Design 1.000.00
SUB-TOTAL $ 7,913.00
CAPITAL EOUIPMENT FPLA M NT•
Fly ropes for stage (Hartford Cordage & Twine) $ 2,505.00
Fax machine (Valley Office $quipment, Inc.) 2.149.61
SUB-TOTAi. $ 4,654.61
TOTAL: $ 21,507.61
SCHEDULE B
REPORT OF SERVICES RENDERED
AND TO BE RENDERED
(DiTE JANUARY, 1998)
CONTRACTORS, by its duly authorized official, hereby submits to the City of Palm
Desert iu report on services rendered and to be rendered by Convactor pursuant to that
certain "Agreement by Non-Profit Organization to provide services to the City of Palm
Desert" effective the first day of)uly, 1997.
CONTRACTOR certifies that it has maintained lu office during the hours contracted
for, and has continuously provided all services contraaed for, and assures the City it will
conduct all programs contracted for.
Included in the services provided, Conuactor has, during the period covered by this
Report, performed the following approximate services during the perlod ]uly 1, 1997 to
December 31, 1997.
The undersigned, the duly authorized official of the Contractor, certifies that the
information provided herein is true and correct
,���L�� ��._,1 71_'-,�.as-�
Dated:f—�6 4'�" By: -� � � .
/
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. TORS' REPORT � �ac s �h , .
INDEPENDENT AUDI
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COMBINED FINANCIAL 'STATEMENTS , :� i "" . .• ' � �
, _„ „ ,,
�,
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JULY^31, 1997 ' , `; ,. '' '"r„ � , ��,':' " t
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LUND & GUTTRY / CERTIFIED PUBL.IC ACCOUNTANTS
� � _
i �-
�
i
i
� FRIII�IDS OF 'IHE CULZURAL C�7PII2, INC.
PALM DFSERT. CALIFC�RNSA
�
�
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�
�
� IPIDEPFnmF:nn' AI]DITORS' REPORT,
� CLNIDIb� FII�.NCIAL STA'�'� AI�ID SUPPI,II�7i'ARY INFL�RMF.TI�T
JULY 31. 1997
�
�
�
�
�
�
� �
�� -- �— �
i � '
� LUND & GUTTRY/CERTIFIED PUBLIC ACCOUNTANTS i
39700 BOB HOPE DRIVE •SUITE 309 •P.O. BOX 250 •RANCHO MIRAGE,CA 92270-0250
Telephone(760)568-2242 • Fa�c(760)3468891 �
. E•Mail: cpas�cpalg.com •www.tpalg.com - �
� II�IDEPII�IDE�TP ATJDI'It7RS' REE'ORT i
� �
� Hoard of TYustees
Friends of tl�e C.liltusal Center, Inc.
Palm Desert, California
We have audited the ac�as�y'ing CanUined Statement of Financial Positicm of FYiends of f
� �
the GUltuxal Center, Inc. as of July 31, 1997 and 1996, and the related Canbined I
� Stateresits of Activities, Ftmctional �cpenses and C�sh Flcxvs for the year ended July 31, !
1997. These canbined financial statements are the resprn�sibility of the Center's
manaqement, pur responsibility is to express an opinion on these combined financial I
statements based on our audits. �
� '
We c�cted our audits in accozdance with genesally accepted auditing star����. Those
statv�ards xequire that we plan and perfoxm the audit to obtain ���+�h�e asQ,+�n� abcnit ;
� whether the financial statemPsits are free of material misstatere.nt. An audit includes i
e�, on a test basis, evidence supportin9 the aimunts and disclosures in the
financial statements. An audit also includes assessing the accoimting grinciples used i
� and significant estimates made by m3naggnent, as well as evaluating the weiall financial
statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
i
� � � opini� the canbined financial statem�nts referred to above present fairly, in all '.
material xespects, the financial positi� of Friends of the CUltuzal Center, Inc. as of �
July 31, 1997 anri 1996, and the changes in their net assets and their cash flaas for the ;
� year ended July 31, 1997 in c;onfoxmitY with generally accepted accoimting principles.
Our audit was made for the puzpose of fonnuig an opini� on the canbined financial
� staterents taken as a whole. 'The supplereiztaxy infozmation presented � page 15 is i
prnsented for pusposes of additional analysis and is not a required gart of the ;
pxoced�es applied in the audit of the cai�bined financial state�nts. Stich information '
has bePn subjected to the auditing proceduz'es aPPlied in the basic financial statements �
� and, in our opini�, is faisly stated in all material respects in relation to the ';
canbined financial statgrents taken as a whole. �
� ������° �- i
;
� October 8, 1997
;
� ;
� _ Palm Springs Otfice •(760)325-5561 '�
rRIII�IDS OF 2i� CUL2L7RAL C�TlEEt. INC. ■
,_ 0.�IlVID SPAT�I5 OF FII�7CIAL F0.SITIOPI
JULY 31. 1997 ADID 1996 '
'
ASSEIS
'
1997
McCalltun '
FYiends of Theatre
the Qil.tural F�Owaient, �
Center. Inc. Inc. ����3
QJRRFNI' AS..SEPS
Cash and cash ��;valents $ 31,860 S 446,281 $ 478,141 �
Accoiuits receivable 42,748 - 42,748
Pledges receivable (net) 251,046 - 251,046
Inventosy 198,558 - 198,558 ■
Other ct�rent assets 59,724 - 59,724 �
Note receivable 60,161 - 60,161
Due from related parties 2,900 322.500 325.400 �
Total current assets 646,997 768.781 1.415,778
PROPE�2T1' AI�ID �T.TlPN�lI' (NET) 13,609,245 - 13,609,245 �
I�IVESII"�lI'S 118,044 302,250 420,294 '
II�VFS'IN�lI'S - DFSIC�TID 510,000 - 510,000
� � R�a'�'� P.�'IFS - 300,000 300,000 '
�� .��'G RE(�IUAELE 270.500 270.500
TC7TFIL ASSEi'S 515.154,786 S 1.371,031 516,525.817 �
'
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f
'
f
(The acca�anying notes are an integxal gast of these financial stat�nts) �
(2)
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� 1996
� �lltmt
FYYiends of Theatre
the Nltural F�idowment,
� Center. Inc. �c. ��
� $ 171,588 $ 720,147 $ 891,735
19,389 19,389
251,592 - 251,592
198,508 - 198,508
1 25,493 _ 25,493
60,161 60,161
' 726,731 720,147 1.446.878
� 13,930,258 - 13,930,258
100,000 302,250 402,250
� - - '
� - 300,000 300,000
180,250 - 180.250
� $14,937.239 $1.3�� 516.259.636
�
�
�
�
�
�
. -' :IE�IDS OF THE C�,TS7RAL CQJPII2, _ �
(S�IDIPIED STATII�715 OF FINANCIAL FUSITI�I
._ JCJLY 31, 1997 ADID 1996 �
1
LIABILITIFS ADID NET ASSEI'S
'
1997
McC�lltmt '
FYiends of Theatre
the CUltural Ehdo,�,�nent,
Center. Inc. Inc. Q�nbined �
CpRREPTP LIP.BILITIFS:
Accounts payable $ 198,983 $ - $ 198,983
Revol'ving line of credit 391,000 - 391,000 ,
C1�rrPnt porti� of notes payable - - _
Cl�rent porti� of obligations (
under capital leases 14,643 - 14,643
Other cusrent liabilities 63,906 - 63,906
Deferx�d revenue - tickets 829,824 - g29,g2g
Deferred revenue - rt�anberships & other 173,749 - 173,749 '
Due to related pai-ties 322,500 2,900 325.400
Total current liabilities 1,994,605 2,900 1,997,505 '
�'i''1'�M LTp$TT�TTIAC
Notes payable 3,000,000 - 3,000,000 '
Obligations under capital leases 53,697 - 53,697
Due to related parties 300,000 _„= 300.000
TC7PAL LIP.BIISTIFS 5.348,302 2,900 5.351.202 �
NEI' ASSEIS
Unrestricted - Undesignated 8,774,938 208,857 8,983,795 �
Unrestricted - Designated 510,000 - 510,000
Tec[g�orarily restricted 521,546 - 521,546
Pesmanently restricteci - 1.159.274 1.159.2'74
Tl7PAI, NET PSSEIS 9.806,484 1,368.131 11,174.615 �
TT7TAL LIABILITIFS ADID NET ASSEPS 515,154,786 S 1.3'l1,031 516.525.817 '
'
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f
(The acca�anying notes are an integral part. of thESE f�nanrj3� staterents) f
(3)
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�;
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1996 =
Mcc�lliun
FYiends of Theatre -
the Q�ltural E��dowrtient,
Center. Inc. inc. Combined %
$ 153,604 $ - $ 153,604
400,000 - 400,000 ;`
96,805 - 96,805
6,862 — 6,882
45,486 — 45,486
773,306 — 773,306
179,350 — 179,350
1,655,433 — 1,655,433
2,500,000 — 2,500,000
17,004 — 17,004
300.000 300.000
4.472.437 4,472.437
9,832,960 196,888 10,029,848 �"
631,842 — 631,842
1.125.509 1.125,509
k:ll
10_,�802 � 1,322.397 11,787.199
S 14,937,239 S 1,322,397 S 16.259,636
b
d
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�
! � _ :II�IDS OF � CUL7TJRAL C�NPER. ^ _
CC1�II� STATII�TT OF ACPNlTIfi.,
� , FCA2 THE YEAR fSIDID J[TI,Y 31. 1997
WITH �ARATIVE TC7I�TS FC)R Tf� YEAR EDIDID JULY 31. 1996
� 1997 1996
McCa].lian
i Fr�enas of x�eacre
the clittural EnaoHm,Pnt,
Center. Inc. Inc. Canbined Qxnbine3
� Q�NGFS IN LII�II2FbZRICrED NET ASSEZS:
REVII�tJE APID SUPPORT FRCM OPERATIQQS:
� Ac�nissions $ 3,350,787 $ - $3,350,787, $3,287,604
Interest and other irn2stment inccme 472 48,634 49,106 69,655
� Concessions & other s�port 655,437 _ 655,437 603,213
Contributions & memberships 2,085,756 2,085,756 1,828,510
'��f� - - 100.000
1 Total revenue & support
frtxn operations 6.092.452 48,634 6.141.086 5.888.982
� � p�y-� R�r Fa�^n FR(x�I RFSI'RICTIONS:
E�iration and allocation
� of restrictions 454.944 (32.765) 422.179 390.862
Total net assets released
fmn restricticu�s 454.944 (32.765) 422.179 390.862
i �t� ���� �
and support 6.547.396 15.869 6.563.265 6.279.844
� F'SCPM�SSF'.Q' .
Production costs 5,601,906 - 5,601,906 5,501,067
� General and administrative 1,198,231 3,900 1,202,131 1,271,409
�,n�,aising costs . 295,281 295,281 342,981
'IYansfers 100.000
� Total P�nces 7.095.418 3.900 7,099.318 7.215.457
INCREASE (DECI2EASE) IN UNRFSIRICI£D
� NET ASSE.'I'S S (548,022) S 11.969 S (536.053) S (935.613)
�
I
1
! (The accoaq�anying notes are an integral gart of these financial statemPnts)
(4)
� Fi ��IDS OF TS� CIII�TURAL CENI432. Il� '-
Q�IA]ED S'PATII�NT OF ACPIVIT:�'S
� ... FCX2 TS-� YFAR II�IDF.D JULY 31. 1997
WITH CC{'9PARATIVE '1C7IP.LS FC�R Tf� YE'.AR II�IDID JULY 3i, 1996
�
1997 1996
� NIcC�llinn
FYiends of Theatre
the Q�ltural Et�dc�cvment,
Center, Inc. Inc. Cambined Canbined
!
INCS2F.ASE (r�r�F2�) IN
� LIl�SZRIC.Z'ID NET ASSE,'PS $ (548.022) S 11,969 S (536.053) $ (935.613)
Q�'S IN TII�RARII.�Y
� RF�'fRICPID NEI' ASSETS:
Ccntributions for
� future periods 344,648 - 344,648 460,000
Net assets released
from restrictions (454,944) - (454,944) (423.6441
� INCI2EASE IN TII�ORARiLY _
RF3PRICTID NET ASBETS (110,296) (110.296) 36.356
� Q�'� IN PF�N�ISI'LY
RESfRIGTID NET ASSEI5:
� Contributions - 1,000 1,000 -
Net increase in
restrictions - 32.765 32.765 32.782
q INCREI�SE IN PERNI�I�TIZY
g�giC�p � �g - 33,765 33,765 32,782
� IN(12F.ASE (DEC32EASE) IN
NET p.SSEIS (658,318) 45.734 (612.584) (866,4�5)
� NEf ASSEPS AT -
BEK;II�INING OF YE�AR 10.464,802 1,322.397 11.787,199 12.653.674
� NE�P ASSEPS AT
IIID OF YFAR S 9.�80�� 51,368.131 571,174.615 511.787,199
�
�
�
� (The acca�anying notes are an integ�.al part of these f�nanrldl stateirents)
(S)
FRIE�IS OF THE CUllILlE2AL �TiER,_INC
�'IDII`1ID S'YP.T�TI' OF FUNCTZ�L E�g
� T� YFAR II`IDID JULY 31 1997
�� ��T� �� � Tf� YEAR II�IDID JULY 31 1996 =
y
�
:
'{
1997 1996
Geneial
Production an3 �d
Costs Achnin. Raisina Total Total
Salaries, payroll taxes
�nd e�loyee benefits $1,126,283 $ 465,850 $ 71,521 $1,663,654 $1,782,343
Artist & professional fees 3,025,456 91,849 24,320 3,141,625 2,919,335
Slipplies 87,606 25,236 4,371 117,213 82,5�g
Utilities & telephone 173,588 23,671 197,259 188,694
bbstage & shipping - 13,757 2,627 16,384 26,202
Maintenance, repairs,
and equipnw_rtt rentalS 202,513 34,678 -
Myrket• 237,191 232,260
ing, piYxrotions,
� spe�ia]- events 473,885 - 183,164 657,049 666,987
C�ferences, conventions
� �t� - 22,665 6,426 29,091 27,933
Donated �terials & services - 381 - 381 111,503
Depreciatical 506,689 69,094 -
Interest 575,783 578,386 r
- 342,602 - 342,602 249,053
Miscellaneous & other 5,886 98,092 2,852 106,830 250,082
Inss on sale of assets 14.256 - 14,256
T�� 5 601 906 1 202 131 295 281 7 099 318 7 115 457
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�` +_ .�Il.1S OF Tf� G[II,TURAL� CII�TiER, _ _
CLNIDII�� STATII�3�1P OF CA4I FLAw ..
� ,. FC�R 'IS� YEAR ESIDID JULY 31. 1997
WITH CCfi1PARATIVE 'R7PAIB FC)R THE YF.AR II�IDID JULY 31. 1996
� 1997 1996
McC�llwn
FYiends of Theatre
� the C.l�ltural F�ndowment,
Center, Inc. Inc. Ccmbined Combjne3
CA�� FLpwS FRCM OPEEiP.TING ACTIVITIES:
� Increase (Decrease) in neE assets $ (658,318) $ 45,734 $(61Z,584) $(866,475)
Depreciation 575,783 575,783 578,386
Ibnated investments (545,926) - (545,926) -
� Net realized gain on irrvestments (748) -. (748) (55,683)
Net (gain) loss on disposal
of �,;grnnt 14,256 - 14,256 (490)
� (Increase) Decrease in:
Receivables (115,963) (22,500) (138,463) 117,296
Inventoxy (50) - (50) 278
Other assets (34,231) - (34,231) 14,562
� Increase (Decrease) in:
Accounts payable 45,379 45,379 (29,192)
Other liabilities 40,920 2,900 43,820 (30,225)
� Defei�d revenue 50.917 - 50,917 (16.215)
Net cash provided (used)
� by operating activities (627.981) 26.134 (601.847) (287.758)
Q�.4� F7�7W5 FROM INVES'PII4G ACTIVITIFS:
Purchase of propexty and �,;paw_nt (214,504) - (214,504) (125,461)
� Proceeds from sale of investments 18.630 - 18.630 11118,828
Net cash provided (used)
� by izroesting activities (195.874) - (195,874) 993.367
C95H FLCWS FRCM FIl�NCING ACTIVTTIES:
� Net proceeds (pay�rents) fran - -
line of cmdit (9,000) (9,000) 110,000
Proceeds fzun long-texm debt 500,000 500,000
Repayapnts of notes payable
� and capital leases (106,873) - (106,873) (7,528)
Interfund loan 300,000 (300.000)
� Net cash provided (usecl)
by financing activities 684.127 (300.000) 384,127 102.472
� NE.T IN(12FASE (I��SE) IN C�SH (139,728) (273,866) (413,594) 808,081
C7�1.SH ADID CASH DQi]T�7P.LE[�7PS,
Beginnin� of year 171,588 720.147 891,735 83.654
� CASfi AAID CA4i �TIVALII�TPS,
End of yeaY S 31.860 446.281 478 141 891 735
� Cash paid during the year for interest ama�ted to $306,560. Capital. lease obligations of
$54,522 were inctiuz�ed in 1997 for the rn�mh�� of new theatrical equipaient.
� (The accoag�anying notes are an integral part of these financial statgnents)
(7)
� � � � ��, � -�
� , � � � �� � �
1. DFSCRIPPZ�7 OF 'Ii� C£LQPER
The FYiends of the Ctiltural Center, Inc. is a not-for-profit organization
� incorporated in Califomia in 1973. Its stated puxpose is to conchict cultural,
charitable and educational activities in the Coachella Valley. Cl�rsently, the
Chnter opezates the McCallian Theatre for the Perfor*�+in� Arts.
i2. SONMARY OF SIC�]IFIC�TI' AC.CC�TIIJG POLICIFS
Basis of Accvuntincr
The financial stat�nents of FYiends of the GUltuxal Center, Inc. have been prepared
� � the accxual basis of accrnurting. , Net assets and revenues, expenses, gains, and
losses are classified Yaased on tk� existence or absence of dcuwr-i�osed
restrictions. Accordingly, net assets of the Cknter anr3 changes therein are
� classified and reported as follows:
Unrestricted net assets - Net assets that are noti subject to dcmor-inposed
� stipulations.
Tel�orarilv restricted net assets - Net assets subject to donor-iag�osed
stipulations that may or will be met, either by actions of the Center and/or the
� passage of time. When a xestx'iction expires, te�orarily restricted net assets are
reclassified to tuu.zstricted net assets and reported in the statement of activities
as net assets released fn:m mstrictions.
, �i�nanant,1V restricted net assets - Net assets subject to dcmor-i�osed
stipulations that they be maintained pezmanently by the Center. Genexally, the
� donors of these assets pexmit the Center to use all or part of the incane eamed
on any related investments for general or specific puYposes.
Canbined Financial Statefents
� The fir�azicial statenw�ts of the McCalliun Theatre F�m�nt, Inc. have been cunbined
with the financial statements of FYieads of the C1�ltural Center, Inc. Intercanpany
t13I].SaCtiOILS ciIlCl bd1anCE3 haVE ROt k�Eri eliminatEC� jn t�E CqSI�1L� finarn-ial
� statements.
Creclit Risk
� Financial instzlarexits which potentially subject the Center to concentxaticros of credit
risk c�sist principally of teng�orasy cash isrvestments and pledge receivables. The
Center places its t�orasy cash investments wi.th high credit c;uality fiu�ancial
inatitutions and, by policy, limits the amount of crndit exposiue to any one financial
� institution. Concentrations of credit risk with respect to plech�e receivables are
limited due to the Center's la�e rnm�ber of clonors and their dispersicm across �ltiple
geographic air.as. The Center currniztly does not have any significant omicentraticros
Iof credit risk.
C�sh and C�sh Eauivalents
� For purposes of the statetrnnt of cash flaws, cash �,;valents include c�ey crerket
fimds, certificates of deposit, and all highly liquid debt instnmw�ts with original
maturities of three months or less.
� Itiventory
Base stock inventory is stated at the la«�er of cost or market. Q�anges to base stock
irnentoxy are made for only sicyu'ficant purchases and usage.
� Investments
Investments are reported at fair market value. Irn�estments consist of land, the
' Centers' donated interest in a charitable x�cnairuier aiuiuity trust and caatun stock.
(8)
� `_ 2IE[�Il,1S OF 'IHE CULZURP.L CEP7I'ER IC.
Nm.'F'S 'Il� ZS-IE CCMBIA]ED FII�NCIAL STATII�TIS
�
� 2. SCST�F2Y OF SIC�IIFICAATI' ACC.ULRS�ING FOLICIFS (ccmtinued)
Psvoertv and Frn�i gipslt
� PropertY and equipment are stated at cost and are being depreciated using the
straight-line method over their esti.mated useful lives. Ibnations of property and
�,;pm��t are recorded as s�port at their estimated fair value. Slich donations are
reported as unrestricted s�port unless the donor has restricted the donated asset to
� a specific purpose. Assets donated with explicit restrictions � their use and
contributions af cash that must be used to acquire property and �+,;pment are zeported
as restricted stx�port. Ahsent donor stipulations r�rr3;n� hnw long those donated
� assets must be maintained, the Center reports expirations of donor zestrictions when
the donated or acquired assets are placed in sesvice as iastructed by the �nor. 't'he
Center reclassifies t�orarily restricted net assets to �stricted net assets at
� that time.
The useful lives of property and equigrient are follows:
� Building and i.rtq�rovements 60 years
Theatrical equip[nerlt 7 - 20 years
Office furniture and eqtiipRwsit 3 - 10 years
� Revernie Recoaniti�
ContriYutions are recognized when the donor makes a proadse to give which is, in
� substance, unconditional. Contributions that are restricted by the donor are reported
as increases in iuirestricted net assets if the restrictions expire in the fiscal year
in which the contributions are recognized. All other donor restricted ccmtributions
are reported as increases in teng�orarily or permanently restricted net assets
� depending on the nature of the restrictions. when a restricti� expires, tenporarily
restricted net assets are reclassified to iu�sestricted net assets.
� Ticket sales received prior to the fiscal year to which they apply are not �ized
as revenues until the year earned. These a�rounts are included in defexzed revenue in
the Statement of Fir�axicial Position.
� Tax-exe�t Status
The Center is classified as a Section 501(c) (3) O�ganization �s the 1986 Internal
Revenue Code and Section 23701(d) of the California Revenue and Taxiticm Code. As a
� result, it has beP� determuled to be exe�cq�t from federal inca� and California
franchise taxes.
� Estimztes
'I'he preparation of financial statements in confoxmity with generally accepted
accounting principles requires managen�ent to make estimates and ass�ticros that
� affect certain reported aimunts and disclosures. Acw�;n=1y actual rnsults could
differ from those estimates.
�
�
� (9)
� �� - FRIII�IDS OF 'IHE CSJl,TURAL f�STIg _ NC.
NCJIF TU ZHE Q:I�IDII�IED FII�INCIAL STP.TII�]'I5
�
� 3. PERI�4F.t�NT II�IDCAd`�TIS
Duriny 1994, the McC�].liun Theatre F�da�xrent, Inc. was funded with a $1,000,000
contribution, to provide inccme for the McC�lll�sn Theatre's operations and pxogzanming.
� Tenns of this endaMr�ent stipulate that this er�owment's principal n¢�st gxva at 3% per
anrnun, ca�g�ounded annually. Should FYiends of the Q�ltural Center, 7nc. cease to
fimction as an active o�nization responsible for the apeiation and maintenance of
� the �lliun Theatre for the Perfoxming Arts or othezwise fail to maintain its status
as a ncmprofit o�ni zation, $1,000,000 frcm the McCallwn Theatre F1�dowment, inc.
Hould be distributed to the Prim Foundati� of Nevada.
� During 1988 and in subsequent years, a ruunber of donors, directed their currnnt and
future donaticu�s to establish a pernianent endc�xrent, to provide incare far the
McC�lltun Theatre's opezation and progxamning. The Board of Tivstees resolved that the
� principle of the endo�rtrent be made available for current opexations, azxi established
a plan to replenish, in the future, those funds which wese borrowed.
4. PL�IDC�'S RECEIVAELE
� Pledges receivable consists of the following at July 31, 1997 and 1996:
1997 1996
� Pledges receivable $ 538,046 $ 511,175
Less: Resesve for doubtful pledges (16.500) (79,333)
Net pledges receivable 521,546 431,842
� Iess: current portion of
net pledges receivable (251,046) (251.592)
270 500 180 250
� The maturities of pledges i�eceivable for the next five years pnr�in� July 31 are as
follays:
� 1998 $ 267,546
1999 163,500
2000 93,000
� 2001 7,000
2002 7.000
538 046
� 5. II�VFNlnRY
Irnentoxy consists of the following at July 31, 1997 and 1996:
� 1997 1996
Audio supplies $ 44,907 $ 44,907
Lighting supplies 80,675 80,675
� Stage sup�lies 49,439 49,439
Ot1�es supplies 23.537 23.487
Total 198 558 198 508
�
�
� (10)
� , ^ FRSII�Il.IS OF TI-]E CULTURAL CIIJTII2. ^.NC.
�'' NC7PES TU THE Q,Y�IDII�D FII�INCIAL SfATII��TI'S
�
6. PROPERTY. PI�ANT ADID bJiJIPN�fP
� Prvperty and �,;pment consists of the following at July 31, 1997 and 1996:
1997 1996
� Building and ittq�zvvements $15,618,562 $15,601,564
Theatrical equipm�nt 2,424,486 2,409,382
Office furniture and eq�ig[�it 476,510 442,091
P1t7pesty held imder capital lease 91.342 52.470
� 18,610,900 18,505,507
Less: acclurnilated depreciation (5,337.981) _ (4.820.075)
13,272,919 13,685,432
� Artwork __336,326 244.826
Total 513,609,245 513.930,258
7. IIV�7FSIN1E3VT5
� Investments consists of the following at July 31, 1997 and 1996:
McCalltun
� FYie�d.s of Theatre
QiltuTal E�douanP.nt,
C�nter Inc. Inc. �[nbined
� 1997 _
� $ $ 302,250 $ 302,250
Tnterest in C'haritable
Remainder Atun�ity Trvst 100,000 - 100,000
� Canron stock 18.044 - 18.044
118 044 S 302,250 � 420,294
1996
� Land $ - $ 302,250 $ 302,250
Interest in Charitable
Rsnai*��P+' Ailrn7it}� TYLLSt 100,Q00 - 100.000
� 100 000 $ 302.250 402 250
8. ADVANC� �LLECTI�IS OF TI(�T SALES
The Center had x�ceived $829,824 and $773,306 at July 31, 1997 and 1996 zespectively,
� on advance ticket sales for the 1997-1998 and 1996-1997 seasons. As each pra3uction
is presented, that porti� of the advance sales collections which pertains to that
productic¢� will be recognized as revenue. In the event any of the sct�duled
� pnxhictica�s for the 1997-1998 ���+ is not presented, the advance ticket collections
for that pmc�icticm will be available for refund to the ticket holder.
� 9. REVOLVIIJG LII� OF C32IDTT
Under the tesms of a revolving credit ac�re�nent with a kaank, the line of credit is
Secu�'ed b�' real PropertY and matures in May 1998. The Center may boiznw up to
$750,000 at 1°s above prime rate as stated in the Wall Street Souxnal, with an interest
� rate floor of 7°s, and a ceiling of 16%. F1uu3s for these borrowings "may be used for
ariy purpose. At July 31, 1997 and 1996, the Center had $391,000 and $400,000
outstanding on this line of czedit.
�
� (11)
� ' __ zr�nmc c�' � C�R.fIt7RAI, C�N1II2, �
, DR7IE'S ZC) TI-lE Gtx'IDIAIED FINANCIAL STATII�STI5
�
�
10. NC7PES PAS�BLE
� Notes payable consists of the following at July 31, 1997 and 1996:
1997 1996
Loan from private foiuu9ati�
� with 7.5& interest only due rtonthly, .
and principal and interest due
Jarn�ary 2002 $2,500,000 $2,500,000
� Ican from ZYvstee without
stated interest (discounted at S%)
paid in full Febxuary 1997 - 96,805
� Ii�an from City of Palm Desert with 5�
interest only due annually, and
principal and interest due
JanuaYy 2007 500.000 -
� 3,000,000 2,596,805
Less: �sit portion of
notes payable - (96.805)
� 53.000,000 52.500.000
Fliture principal maturities of notes payable outstanding at July 31, 1997 are as
� follcxNs: _
,7�1� At[rnuit
1998 $
1999 -
� 2000 _
2001
2002 -
� T1�ereafter 3.000,000
Total �53.000,000
11. LEA S
The Center leases office and theatrical equipment under capital leases exp'r� in
� various years thirou�April 2003. The assets and liabilities under capital leases are
recorded at the laNer of the present value of the mini�rnmilease payments or the fair
value of the asset. The assets are amortized over their estimated pnxhictive lives.
� Artortization of assets imder capital leases is included in depreciation e�naes.
pmperty held under capital leases consists of the following at July 31, 1997 and
� 1996:
1997 1996
Office equigrnnt $ 36,820 $ 52,470
� 'il�eatrical �,;pment 54,522 -
91,342 52,470
Less: accimnilated
aimrtization (20.983) (39,016)
� 70 359 13 454
Interest rates on capitalized leasea vary from 17.70� to 29.60% and are ;++�,ted based
� c¢� the lower of the Center's incre�rental borrowin5 rate at the inception of each lease
or the lessor's i.aq�licit rate of return.
� (12)
� � _ r'RIFTa1S OF 'IS� QJLTt]RAL CENIIIZ 'iVC.
�, bK7PES TU THE QNIDIl�IED FII�NCIAL SI'ATII�FiS
� 11. I�EASE'S (continued)
Minimiun future lease payments under capital leases as of July 31, 1997 for each of the
� next five years and in the aggsegate are as follows:
Julv 31, Anrnults
1998 $ 26,673
� 1999 25,410
2000 21,564
2001 and
� Thexeafter 26.736
Net mini[[natt lease paytrents 100,383
Less: artrnmt representing
� interest 32 043)
Present value of net
minitrnmi lease payarsits 68,340
Less: current portion of
� obligations under capital lease 14 643)
53 697
� The Center �eases real pznperty under an operating lease expiring in 2048. All of the
obligations under this lease we�.� prepaid in 1982. Under the ternts of this agre�rent
all fund.s held in endowment are to be paid to the College of the Desert for the
continued benefit of the theatre upon expisation of the lease.
� 12. RESIRICTI�IS ObT NET ASSEI'S
T�rarily restricted net assets are available for the following purposes or periods:
� 1997 1996
Contributions and pledges for
� opesations for periods after
July 31, 521 546 631 842
� Pemanently restricted net assets are restricted to:
1997 1996
� Pennanent er�dowment with 3k
inflation factor 51.159.274 125 509
� 13. DUE 'IU/FRCd�7 RELATID PARTIES
buring the fiscal year ended July 31, 1997, the McCall�un Theatre II�nt, Inc.
loaned $300,000 to N7iends of the CUltural Center, Inc. far operating puzposes. 'mese
loans are unsecu�.�ed and are payable July 31, 1998 with interest at 6%.
� During the fiscal year ended July 31, 1996, the �lltun Theatre Et�dowment, Inc.
loaned $300,000 to Friends of the CUltural Center, Inc. for operating puzposes. The
� la3n is unsecured and is payable Januaxy 1, 1999 with interest at 3g.
During the fiscal year ended July 31, 1996, the McC�llisn Theatre II�dowment, Inc. mad�
� a permanent transfer of $100,000 to FYiends of the CLiltur-a1 Center, Inc. far operating
puzposes. This am��nt is included in transfers in the Statement of Activities.
� (13)
�r FRIFI�IIIS OF Tf� CULZt7RAL C�I'II._�IVC.
• bR7IF'.S TU TS� CUI�'IDII�IED F'IIS9NCIAL STATII�S7I5
r
�
13. D(JE 'IU/FRCM RELP..TID PARTIFS (continued)
� Due to/fnxn related pasties consists of the follwring at July 31, 1997• and 1996:
Qu�nt A�rtion Julv 31. 1997 July 31. 1996
Advances due within one year $300,000 $ -
� Accrued intez.est. on ac3vanCes Z2,5�� -
Operating e�enses paid by Center 2.900 -
325 400 �!
� Lona-Tesm R�rtion
Advances due aEter one year 300 000 300 000
� 14. IIV�7F.SIN�7T - DFSIQS�TID ADID SOBSflOUIIJI' E\7PNT
The Center received a contribution of one million shares of cn�rm stock from a
� Coxporation in July 1997 valued at $510,000. � A,�+,G* 1, 1997, the Corporation
entered into a stock redeag�tion agxee�rent with the Center. The one million shares of
cartron stock that wrre donated during the year wese redeem�d for $110,000 cash and a ,
� $400,000 note receivable on August l, 1997. The Boazd of Trustees have desic,g�ated the
proceeds of this rede�tian alcmg with the note receivable for the puzpose of paying
interest and/or principal on the note psyable to the City of Palm Dese�t.
�
�
�
�
�
�
�
�
�
� (14)
� � - -
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�
, - r _ FRIE[�lS OF 'IHE CULTURAL C�"'`4. INC.
ST.Si .c3�7I5 QF OPERATICX9S - rnTT�at�mr Z ;ANCIAL STA'CFS�7I5
1U P?�ITID FII�INCLA� gT'nTFT�TTT'c
- ' FI�R 'IHE YEAR E�IDIIVG JULY 31 1997
REVE�VpE
�' Interest &
'I7ieatre Adrtussians Investrtnnts
�-���n� � $ 3,350,786 $ 3,350,786 $ -
Other Perfozmazice revenue 80.818
TOt� 3,431.604
I.sss: Direct perfoxmance costs (3.813,679)
NE.T INCL"ME FRCM PERb��'WNSS (382.075)
F' Rental re`mnue 526,681 - -
�: I,ess: Rental costs (101.526)
� �� � 425,155
- MLSC�I�75 RE�7�[� 34.153 - 472
�.L OPII2ATI� �N� 77.233
Fi� �� (1,522,345) - -
General & Ac�ninistrative e�nses (732,584) - -
Outreach (CpD & Students) (10.851)
i 'IC7��L FI}�D/OVII2F�F.D EXPETTSFS (2,265,780)
L�S BEFORE DEVELpPh�7r (2.188.547)
y Developcnent xevenue (cash) 1,624,205 - -
"' Develop�t�ent e�ense (295.252)
NET DE'VIIpPI`'�[VT R�IIIVt]E 1,328.953
F NET IASS SE'FL�RE E�CIRAORDII�.RY
�'�'-G & DE�7ELDA"IENi' AL17C7SIN�S7PS (859.594)
j EXTRAORDII�RY ��'G (32,061) - -
4
� DE,vELOPN�27f AA7[TS'IN�7I'S
Developc[ent pledges 175,700 - -
h Audit adjustments to defer revenue (22,998) - -
Stock danations 528,000 - -
Prios' yeaz' unearned nnises revenue 31,600 - -
' Inkind donations 93.897
Tbtal 806,199
j. NEI' LI�SS SEFURE DEPRECIAT'IOT1 (85.456) -
� ADDITI�L AIdqV�NCF+S:
t Depreciation (575,783) - -
`' Othex' 2.921 1
� NE!' L�S S (658.318) -
t, PIIt AUDITID FII�NCIAI+ STPlrII�S7I5 � (�65�8.�) � 3.350.787 S 4'72
(15)
1 . �
/
��.yCy�yG PNtGIY.��'.� �
�Qy�`E3910T18 & CDi1fS1}]l1Cld[L9 & TOT31 C'onpral (,� 1bCd1
other Sl�ort Menbesshias n?�-—_,A Pmduc[ion F�ninistrative FmAraig]SD7 FSmes�sea Diffeience
$ ' $ ' S3,350,786 $ - $ - S - $ - 5 '
80.818 - 80.818 - - - - -
(3,810.737) - (3.810.737) (2.942)
526,681 - 526,681 � - � - ' . ' '
� � (101.526) - - (101.526) -
47.937 - 48.409 - 114.256) - (14.256) -
- - - (1,155,550) (366,795) - (1,522,345) -
- - - (16,5531 (716,031) - (732,584) -
(10.851I � (10.851) -
. - 1,624,205 1,624,205 - - - ' '
(295.252) (295.252) -
_ _ - - (32,061) - (32,061) -
- i�s,�oo vs,�oo - - - - -
- (22,998) (22,998) - - - ' '
- 528,000 528,000 - - - - "
- 31,600 31,600 - - . - ' -
93.897 93.897 - - - - "
_ _ - (506,689) (69,094) - (575,783) -
1 y - 6 (29) (23) 2.942
S 655.437 S 2.430.404 56.437.100 S(5.601,906) S(1.198.231) S (295.281) 5f7.095,418) S -
' The
California Municipal Fi�����:�Journal
� Serving Officials with Public Fin�c��es@on�ibiliti�3
Vol.4, No. 3 O 1998 ISSN 1082-06U4 Phone: (805)640-3436 Februar}'9, 1998
Lake Elsinore Pool Put On Notice: ' Fraud CharggS Ag81C1St �iltl@S
Bond Trustee Files Claims On City, qs SEC Makes A Statement
Raises Questions on Bond Tender ;
The bond trustee on a Lake Elsinore Marks- I Some California cities are being pursued for fraud, some are
Roos pool—a deal that stirred debate in the mar- having their bond funds audired, an allegation that a financial ad-
ket last year—has filed a claim against various viser improperly pushed for a school bond approval was thrown
entities in the city,a possible precursor ro a law- out,a federal agency settled bid rigging allegations against a Cali-
suit that could raise allegations about a bond fornia firm(Pacific Matrix),and an Orange Counry case suggested
purchase program and other developments. � undenvriters better dot their i's and cross their t's in disclosure.
Among other things, the trustee—BNY I Yes, it has been a quiet two weeks in Lake Wobegon,Califor-
Westem Trust Co.—says it does not like wha[it � nia.
found after reviewing the Lake Elsinore Public 'i We did a bit of revamping of this edition to incorporate all the
Financing Au[horiry's"purchase of a portion of �' latest developments because, even though we focus more on ana-
the Bonds and the Authority's claim that the lien ' lyzing public finance matters than"breaking"news, it is a bit diffi-
relating to the [Communities Eacilities District I wlt[o pass on all the latest goings on.And, once again,public fi-
No.] 88-3 Local Obligations had been termi- i nance directors who want to avoid being tripped up by disclosure
nated. The Trustee has substzntially completed i problems can leam from the issues raised in the larest lawsuits,
its analysis of the transaction and the informa- though some question the grounds for certain charges. The aetion
tion provided by the Authority in October 1997, I� against a handful of California agencies is particularly important
and has concluded that aspects of such transac- � for questions raised about developer finances and disclosure—if
tion were either not pertnit[ed under the tertns yodre working on a land-based transaction,pay attention.
of the Indenture or embodied substantial irregu- After years of threats, the Securities and Exchange Commis-
larities.'� i sion finally followed tivough on its investiga[ions into various Mello- -
BNY Westem Trust made those remarks in Roos deafs and filed securities fraud charges last week against Ne-
a notice to bondholders that was mailed a couple �i vada County,the Wasco Public Financing Authority,and the ciry of
weeks ago. It also announced a bondholders' lone. Also named in [he action are William MeKay, a rea( estate
(continued on page 6) � � (continued on paga 2)
Claim of Illegal School Bond Lobbying
In This Issue Thrown Out In Case Against Consultant
State to Audit Some Local Bond Funds q A Ventura County superior court judge last week dismissed an
allegation that a financial adviser overstepped its bounds by pro-
New Power Rules Offer Some Benetits 5 viding political advice in connection with passage of a school bond
issue,saying that he found the consultant's wntract valid.
7997 Rankings of Underwriters 7 The Ventura County Libertarian Party had alleged that the
Ventura Unified School District not only bought financial advice
1997 Rankings of Bond Counsel 8 with its fees, but also improperly paid for political lobbying wi[h
these resources.A lawyers for the plaintiffs claimed that the finan-
1997 Rankings of Financial Advisers 9 cial consuttant was being paid up[o three times more[han similar
"Muzzled"Finance Direcrors; Plus, Disclosure Debate 10 advisers,based on a poll that the lawyer conducted.
OfIicials at Dale Scott&Co.and the school district vigorously
Still Pleny of Troubled Deals on a"WatchList" �2 objected to that allegation,which was linked to passage of an$81
million general obligation bond issue last year.ludge David Long
GASB 31 and Reserve Funds ...Again 12 (continued on page 11)
. .. ,. .�l ^s�"`/'��
Z February 9,1998�Specializi�r�' •California Municipal Pinance a"�one: (805)640-3436
SEC Hammers Home Some Points on Developer Disclosure ...
(continued from page 1)
appraiser,and Virginia Horler,a senior vice Boston,Nowlin,and Montague agreed to pay [the board] voted to form the ... CFD," the
presiden[ of Dain Rauscher Inc. (fortnerly a[otal of$870,000 in civil penal[ies to the 18-paee SEC filing alleges.
Rauscher Pierce Refsnes Inc.). The allega- United States Treasury. First Boston undery The SEC also delves into the process
tionswereissuedinanorderins[iNtingpub- wrote Orange Coun[y's offering of the county had established for Mello-Roos
lic administrative proceedings;accordingly, $320,040,000 in Pension Obligation Bonds issuance,elaimine that the board ciolated its
an administrative hearing will be scheduled on September 28, 1994. Nowlin and guidelines for bond approval.StafTmembers
to litigate the charges and to determine Montague were First Bostods lead invest- of the county's Infrastrucwre Finance Com-
whether the SEC should order any romedial ment bankers assigned to this offering.Dur- minee raised concerns.the SEC says. How-
action.Writtenresponsesareduein20days. ing the underwnting, First Boston,through ever, county supervisors "undertook the
The SEC alleges that"the municipali- Nowlin and Montague,participated in draft- Mello-Roos bond offerine without receiving
ties and individuals created and approved ing the official statemenc The Commission the necessary favorable recommendation of
written materials,used in selling the bonds, said it found"that the O�cial Statement for its Infrastructure Finance Committee and
that fraudulently miss[ated oromitred impor- the Pension Bonds,which should have pro- without ever findine that the fourvro-one
tant information:' These alleged misrepre- vided investors with accurate and complete value-to-lien ratio specified by its euidelines
sentationsandomissionsintheofficialstate- disclosure of material facts regarding the had been satistied or that there was a com-
ments"were important to imestors because Pension Bonds,misrepresented and omitted pelling justificatiun for acceptinc a lower
they made the projects and the bonds appear material facts regarding the Orange Counry vaiue-to-lien ratio;�the SEC alleges.
to be less risky than they actually were." - � Investment Pools. Specitically, the Official Other charees center on misrepresenta-
Las[weeKs filing is significant in that S[atement misrepresented or omitted mate- tions and omissions conceming the ralue o(
the SEC was unable to reach cease-and-de- rial information regarding the Pools,includ- the property eo be de�eloped:the deceloper',
sist se[tlements wiih ihe deCendants,who are ing: I)the Pools' investment strategy;'-)the o�cnership intzrest in the propern�: [he
expected to present vigorous defenses. Our risks of[hat strateEy: and 31 ihe Pools' de- Jzveloper's expericncc and financial condi-
December 18. 1995 edition summarized clinin�investment res�lts.'� tion:mst cstimates to complete the prqiec�.
NevadaCountv'sconcernsandnotmuchhas Here is �vhat we consider the cnis of and hm�� the project �eould be linanced by
chaneed since then—the county continues to that matter, and we quote it in full from an . the developer and Ne��ada Count�.
maintain it acted prudently in reviewing the SEC release: "The Commission's Order The charees- are .ome���hat si�iiilar to
59.07 million Mello-Roos special tax deal, makes clear that underwriters and their in- those broueht aeainst the unden�riter, First
which u�as sold in Iace 1990 for the Wild- vestment bankers must have a reasonable Califomia Capital "Aarkets Group.on thc,c
woud Es[ates community facilities district. basis for belief in the key representations transactiuns (see our.Aueust �. 1997 issuc
The c�se is especially important for smaller made in the disclosure documents used in Uie for more detailsl.Accurdingh�.�ce���un't rc-
�nd less sophisticated public agencies, be- offerines and cannot simply rely on repre- peat some of the det�ils.
cause it raises yuestions about who bears the sentations of issuers or officials of issuers in McKay and Horler are charged �cith
ultimate responsibiliry when isscers rely on reviewing the adequacy of disclosure. Un- knowin¢ about other "substantiall}� lo«�er
information provided by finance profession- derwricers and imestment bankers must in- appraised values� tbr the IanJ, but not�in-
als. (Bond protessionals also migh[be cau- quire into other sources of available infor- cluding that information in the ufTcial,tare- '.
tious about what it means to put"good faith" mation,which in this case included informa- ment,the SEC says,adding ihat the summary ,
reliance on qualified individuals,sueh as ap- tion at First Bosron, media sourees, recent appraisal in the prospectus"only contained. .
praisers,and will no doubt be reminded again official statements of the County,znd other the three highest values.�� -
about checking the background and reputa- information at the County." The SEC filine also has broader impli-
tion of those they rely upon.) SEC otlicials essentially are saying that cations in that it makes a strone statement
VevadaCuunryofficialsals'oarguethat underwriters have to heed "red flags� and about the value of various developer
they have not in any way crossed the thresh- investigare them,especially when that infory financials, a topic that has been debated � �
old of"Gauduleni� uctiviry as it is defined mation is presented in an official starement. among bond lawyers. imes[ors, reeula[ors
under the I 934 Sewrities and Exchange AcL Many of the same parallels arise in last and others. The SEC again takes the posi-
Acwrdinely,the wunry has resisted settling week's filing,except now the SEC is al leg- tion that the potential calue of the IanQ is only
�he charees, w hereas other municipal issu- ing that the public agencies also bear respon- one factor that investors rely on in purchas-
ers—such as Oranee Counry=have settled sibility when"red flags'�pop up. ing such bonds.
�uch securities fraud cases. Porexample,in regard ro the Wildwood The SEC alleges that the official state-
It is clear from this tiline. and another Estates deal, the SEC alleges [hat the Ne- ment misstares the ownership of the Iand as
oneincolvineundenvriters.thattheSECbe- vad� Counry Board of Supervisors knew beloneing entirely ro Montross. "This
lieves'public aeencies and protessionals are about cenain concems, yet proceeded with misidentification ofthe properry's ownership
both on the hook for various representations. the financine without disclosine some of was materially misleading because it sug-
On January 29. Ihe SEC settled a pub- them. In brief.the suit alleges that the board gested that Montross' personal resources
lic administrativz and ceaseand-desist pro- was advised about problems the developer were at risk in the project when,in fact,only
ceedins� against Gedit Suisse Pirst Boston (G. Michael Montross)had in arranging fi- a shell corporation's assets were at risk,^the
Corp.�nd two uf its former im�estment bank- nancing for the projecc"Notwithstanding the SEC claims."Additionally,the Official State-
ers. Jerry L. Nowlin. and Douglas S. deticiencies in Montross' application and mentledinvesrorstobelievethattheowner's
�tontague. As part of the setdement, First 'red flags'regarding his tinancial resources, background and resources had been discbsed
� (continued on next page)
Phone: (805)640-3436 Specializing in California Municipal Finance/February 9,7998 3
... But Agencies Say They Did Not "Recklessly" Disregard Facts
(continued from previous page)
when, in fact,no information had been pro- no maps, no plans, no engineering reports, Separately,on January 30,[he SEC in-
videdaboutWildwoodCorp.,thehueowner, noenvironmentalimpactreports,nopertnits stituted a cease-and-desist proceeding
or about the Wildwood Partners' claims to and/orconstruction financing."The PFAcre- against Pacific Matrix Financial Group Inc.
the propeny."The SEC also claims"Nevada ated a misimpression that the bond proceeds for assisting Stifel, Nicolaus K Co. in rig-
County knew that the question of the owner- would be used within three years,the SEC ging the bidding for imestment agreements.
� ship of Wildwood Estates was material be- alleges,when in fact it applied"only about . Pacific Mavix did not admit or deny the �
cause it had alveady stopped the bond sale I S°/a of the funds as it had represented"in findings,andpaiddisgorgementof$50,000,
once in August 1990 becausz of a wncem � the ofticial statement within Ihree years of based on its inabiliry to pay a larger amoun[.
about title.�' Subsequent litigation clouded the deaL . More on[his subject down the road. •
tide to Wildwood Estates,the SEC adds.
Charges are also raised about the actual �
. experience of Montross, who in December What do you get when MBIA
1997 was convicted by a Califomia jury of
morethan70felonycountsofCalifomiastate combines the municipal ex ertise
securities law violations, leading to his im- � � �
prisonment. "Therepresentationsaboutthe of MuniFinancial and Cl SS?
experience and financial strength of the de-
��eloper were material to invesmrs because,
w�ithout an esperienced and financially MBIA MUI IIS��IC�S �OC ��� pU�IIC
strong dee�eloper,investors had little,if any,
assurancethattherawlandwouldbedevel- Seetor that are as big as Cai�fornia•
oped into subdivided sinele family lots with
special recreation facilities and that the lots
would be sold to humeowners willing to pay
the anticipated asking prices and special
�a.ees:'the SEC says. AS pOrt Of OUf 0(1g01f1g
The ihrust of the SECs filing is that the eommitment to state �'-+'. �^'�
defendants"knew or recklessly disreearded and loeal govemments, f- ��-
thatmaterialfactsweremisrepresentedornot MBIA has united the
disclosed tu im�estors�in the Nevada County l
ufficial statement. (Wz W�u, or �o��5e, servicesandexpertise �
presrnt a full rundown on the defendants' Of MUNFIf1C711CIQI Wltfl
responscs when they are available,given the Califomia CLASS- _- ' ;
fmportunceoftheissuesatstake,andthefact MBIA'sloealgovem- .�� ` ; �
ihai the cities and individuals concesc the al- ��pe�t If1V2S1fT1@Ilt ��1���' — ' � �
legations.) ����T. "��
pool.The result .�� "`
First Califomia also underwrote $14 "`�� �� �•� `'� �
inillion of lune CFD No.2 bonds fora Castle �s a powerful new �--���_ �- _1 �
breed of animal that �� �`_- ��
Oaks developmeN.lone and McKay are ao- ���'��f�= =`�
cused of misrepresenting the land value in offers you the bond p��=�� v�� -
ihat district,and of failing to disclose known administration and �i=� " �`�4�
timding shortfalls for the infras[ructure. If1VBSfff1@Ilt fT1Qf1Qg@- 4�
The Wasco allegations pertain to a$35 ment services needed ,`�� �
million Marks-Roos pool sold in 1989(one by professionals in the -
that yours truly wrote about at the time,when
[his and other large pools in small commu- pUb�IC $@CtOL TO�IfiCj OUt '
- nities raised policy questions in the market). hOW thlS OffdY Of fT1Uf11Ci-
"The Wasco PFA OtTicial Statement repre- pq�SEfVICES CQfI b2f1@�It YOU, , �
sented that the Wasco PFA intended and rea- COfltdCt �Ofl WBbb@f Qt
sonabtyexpectedtopurchasecertainspecific t.800.755-MUNI,orvisittheMBIA
local obligations with its bond funds," the Website at www.mbia.com.
SEC alleges. "In fact, however, the Wasco
PFA had no reasonable basis for making most
of its representations about the local obliga- ��� �
tions...[the]Official Starement faited to dis- �
clore the highly tentative and questionable
nature of a number of the projects for which
there were variousiy no development sites, � �
4 Febrnary 9,1998/Speci.'.^ ig in Californin Municipal Finance � Phone:(805)640-3436
Alleged Improprieties Trigger Audit of Local Bond Funds
Assemblyman Scott Wildman has This publication has been aware of waste and to maintain the [committec's]
made no secret in recent months that he such allegations for quite some time. traditional nonpartisan objeccivity,in the
would like[o reinvigorate the s[a[e's Joint Some public officials have raised con- face of the most powerful entrenched gov-
Legislative Audit Committee, which is cems with us, but also expressed resery ernment bureaucrats and the partisan
charged with making govemment more vations abou[having their names identi- agendas that protect government corrup-
accountable [o Califomia taxpayers. As fied with [he problems (see our editorial tion and inefficiency from disclosurc to
chairtnan ofthe commit[ee,Wildman has the citizens of Califomia."
was[ed little time pursuing that goal,and_ _ ! As with many other investigations
public finance activities are one area that �' � now pending in Califomia—or in fact ro-
could receive more scrvtiny.Wildman,by sulting in charges, such as those brought
ihe way, also secves as one of the mem- � � recently by the California Department of
bers on Ihe Califomia Debt and [mest- � ���� Corporations—the audits of city bond
ment Advisory Commission. � ' funds cend to involve deals that were un-
Thejo��ca�d�ccomm�nee�snowcak- I Sacramento Developments I derwnttenbyeitherFirs[CalifomiaCapi-
ing a more activist role by looking into I Affecting Local Governments !� tal Markets Group or Pacific Gcncsis
controversies,rather than simplyrefemng Group lnc.,which was formed by certain
them to the state auditor for review. For on page 10 for commentary on the"mur ex-First Califomia employees.
example, the committee delved into rea- zling" of finance directors and others Thc Wa!!Sn�ee�Jounm!also picked
sons behind delays in building the whenpoli[icalpressuresarise).Theaudit uponthcauditanglc,andfeamredastory
Belmont Learning Complex, a Los An- is expected to examine whe[her bond pro- on the subject last Wednesday. In that ar-
geles school that has been criticized for fessionals or others pressured cities or ticle,a Pacific Genesis banker complains
now costing[hree-or four-fold wha[some [rustees to shuftle money around to main- tha[the audits are the latest in a broadcr
had predicted just a few years ago. tain legally required balances. scheme to generate negative publicity
A couple weeks ago, the audit com- Peter Schaafsma, executivz director about his firm and various Marks-Roos
mittee also addressed a public finance of CDIAC,raised the concems in a letter deals it has underwritten. One of thosc
controversy by directing the state auditor to Wildman in December. Public and pri- issues defaulred in January(see our Janu-
toconductauditsonbondaccountsofsev- vate officials alike have [old us about ary 26. 1998 edition fordetails).
eral cities in Califomia, including Lake theseconcems—someofthem imolving But state officials have responded
Elsinore, Waterford, Dos Palos, Wasco, very specific details—and now [he state that the inves[igations are necessary to
lone, Coalinea, Selma and Placerville. auditorwilltrytosepara[ethewheatfrom prorecttheintegrityofthemunicipal-bond
Readers of this publication wil]recognize the chaff.The state auditoc Kurt Sjoberg, market.State 1'reasurer Matt Fong did not
some of the names in connection with plans ro comple[e the investiga[ion by late mince any words, being quoted in the ,
controversial uses of the state's Marks- spring. Journal ro the effect that"some of these ,
Roos Local Bond PoolingAct There have Wildman sees such activity as con- land-based deals smell worse than a ciry
been allegations and rumors Ihat some sisten[with the audit committee's intent, sewer." � �
bond account balances have been manipu- which is to serve as a bipartisan watch- State officials also are giving the fi-
lated, or that large sums of money are in dog that is free from political and special nal touches to language in SB 147,a bill
fact missing. In waterford, for example, interest influence. In a documen[ that that now focuses on Marks-Roos authory
there are allegations that a developer re- Wildman provides about the committee, iry. This bill will, in part, make it clear
ceived bond funds, but never provided he snesses a vow"to continue this all-out that local agency participation is required
promised improvements. assault on govemment inefficiency and when such deals are assembled. •
The CalBond Jo�n�na! The California Municipal Finance Journa! Dennis Walters, Publisher ISSN 1082-0604
Thi•I����nm/is pubiished every other Monday,ezcept for specified holiday breaks.Copyright 1998,Dennis Walters.Federal copyright law prohibits!he
reprnductiun of anv or ail of this publica[ion by any means.Please contact The�oivnnl to obtam authorized reprin[s.
Firs[-da.s post.Fe is paid at Ojai,Califomia.An annual subscription(24 issues)costs 5299.Public officials who meet The(mnrrnPs criteria can qualifv for
lower rates.Bulk substription informatiun and advertising rates are available by mntacting the publisher.
Please fnrward subscriptions to The(ournal at Post Office Box 1629,Ojai,Califomia 93024 Send all other corresPondence to The�ournnl at 423 E.O�ai
:���enue,ntU7-502,Ojai,Califomia 93023. .
Phone�I&05)640;iA%, Fax:(805)6}0-1945,E-mail:calbond�ix.netcom.com.
. , .. . .
. .... , _. ".,--- .
�
Phone:(805)640-3436 �Specializing in Califomia Municipal Finance/February 9,1998 5
IVew Federal Power Rules Give Some Tax-Exempt Assurance
New regulations that were being re- financings of transmission and do little to ability of utilities to use)ax-exempt bonds
leased as we went to press with the last is- provide the relief the industry has requested if they participate in an open access pro-
sue are seen as a plus for protecting the tax- for Ihe problems of existing excess genera- gram.
exempt status of public power bonds, and tion capacity.The regulations on the private The output regulations expire in three
for credit quality as well,municipal analysts activity aspects of refundings continue to years,giving federal officials time to study
and bond lawyers said. be reserved, including most rules govem- the matter furthec The Intemal Revenue
"The new regulations ... will provide ing refundings of output facilities." Service has requesredcommentsontherules
greater flexibility for municipal electric Concem also remains about pending before a hearing that is set for April 28,
Wili[ies [o participate in Ihe indepdendent federal legislation that would wrtail the 1998. •
transmission sysrem operator QSO)organi- �
zations that are expected to offer non-dis-
criminatory open electricity transmission Stone & Youngberg'
access;'Moody's[nvestors Service said in
a commentary on the rules.The regulations �
"should have a positive impact on aedit Californias Leader in Restructuring
quality"because[hey relax priva[e-use re-
strictions on tax-exempt debt issued for j,and-Backed Bonds
transmission assets of municipal electric
utilities,Moody's added.
Interpretations voiced by federal tax Eighry-eighc million dollars of California municipal bond
staffers last year raised concem about en- issues wenc inco default in 199(�an all-cime record.The
ergy deregulation and its impact on the tax- majoriry were land-backed deals cha[collapsed due to the
exemplstatusofexis[ingmunicipalelectric Califomiarealeetatedownturn.
bonds."Before Ihese new rules,the debt of In some cases, the val�e of che °01�—
Califomia municipal u[ilities participating vdo� ��uMunidpJBondDefidu
in an ISO would have become taxable debt;� �and securing these bonds has ttsU
Moody's noted,adding that the regulations
fallen by more than half,while �
remove one obstacle that could have pre- che debc obligacions on ehe prop-
vented Califomia's municipal utilities from erties have concinued m rise. ;
joining the state's ISO. Certain kinds of ` � 76 � �
power supply contracts up to 180 days are Curren[ly,[here are more[han fif[y � n � r 6
❑Iso allowed without hampering the tax-ex- land-backed bonds chroughout ,
empt status of bonds. � Calilomia at risk of deFaulc The 90 91 92 93 94 95 % 91
Bond lawyers had disagreed with the good news, howevec is that these
way tax staffers viewed issues tied to de- bonds are now being succusfully resolved through[he devel-
regulation,and seemed happier with some opment of workout plans ro rescructure distressed debt.
of the Treasury Department's clarifying .
� rules. Smne&Youngberg is California's leading manager m work- �
"These new regulations confirm many outs of distressed land-backed bonds. Fstablished in 1931
ezisting practices, wili force re-evaluation to refinance irrigacion projects for Californias depressed �
of many others,and broadty permit munici- agriculmral diserias, Seone&Youngberg seill considers ���,
paI utilities to participate in open access land-backed financing a cornersrone of iu busincss.
transmission without jeopardizing the tax �na�icqdnwntet
exemption on[heir existing bonds;'said a Scone&Youngberg's dedicaced workout mam hu a
memorandum on[he issue prepazed by law- proven aack record for developing innovacive solueions .r�dare,ir+urll ar
yers at Orrick,Hertingron& Sutcliffe. �o bring delinquenc eaues current and make distressed
�crru to a fiJl
But the rules are no panacea. propercies viable. �
Moody's notes,for example,that"de- Greina ofarr bend
spite enhanced flexibility, IRS rules com If you would like m leam more about how Stone&
tinue to eonstrain municipal electric utili- Youngberg can usist your agency, pleaze concact Bill Huck �� �
ties from fully participating in retail choice ae our San Diego of�ice at 619-452-05G3.
programs; in certain instances;their bonds 00 ^�r°O°°""'�
wouldstillbecometaxable.'� � irA��1 Stone & YoungbergLLC ��;��
The Orrick Hemng[on memo cautions �J�� e,�,bc,h�d�9��
that "the Output Regulations are ambigu- �� ��-�� ,yqp;/�,�,
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19024 �$D:� Tq�47 ��CD1t;�4}'Q$�F7 9�ODU��..701..26 2�:OU4.000.00 2'.6dSy7SE0.pt+ 6-�0 S.63S 5-.>74 (11J08/98 . �� 66 .
,1{CO2 1 Y.}(FpYa�1.SYaL,�pis�1 M6xE�(aj� U�3�Y77�$ 1.03'1',ifiBA1 1;Qo0,OGo.P6�. 1 019�6'�7.54 @-46f1 $.9A'1 �.SBA 0�/1,�f4B 316�
Y1'CQ�'� PR,dlsxY tXfj£3OGi} Mot"CymgE A"t1�12J9S 1,968.834.�� 1�OOOt000.op 1 Oa?„��S_Q� 9.ti50 '�.fi20 5.649 O4/16jfF0 A99. � .
1*4Z1 Y�41+a$ lirtienal,,lY,qitCg�ge 71 �3)�S/9B 996..325.d0 �Y�.�tlO.DOD�.PO 947#��'AT.ji1 ,8,�.itl ,�.6�A .+5-768 11(25�l9! 397
2{1i33 , t'Iff�sYBil �iit'SWyI lb1±EgligR lt #1;�30�88 1.00D,000.00 �2:,60D,Oq0�•00 2,601��'SB.p4f° 6.614 �,Q`ki 9 5.030 01/14/03 1�948�� �
1�01$, 1�kMtlwllReYa33e}`"AuC{Wtity ^�9�1$/99 2.RQD.669.t0 ��:1�.WQ.GflU�.00 9841rQQ0.4C 6.959 8.9316 ' S.913 04✓15/48 326� :..
' ""'""' "."" """"'"""' ' �'.' ""„'_" "'"" ._"'" ., . . .
w.--�� -.-�" � ' "�'�"_
�BtlD'Y'�TE atpl AV'fR71Y�Bi 7i,57{.314.�5��... 43.RB9;7Y1.fi2 � .. . T3.9fd'y�'�5.64 . ..
- . 33�.;800.OD9.00 � .8.41} fi.096 �. . .��� 759 �
488Ai11&Y �13CUAi4`IYs - 6,4k�QIt . .� . .
16nai€ x �d5,t�eeat.y �s�5e■ury #a,�i7l'� sas;sae.sa .�.:.�ea,oCo�;oo� rss�esso.os �s.bas �,xis 's�.3E4 os/sslae iss��. .
34Qp'�` I' GLti}CEdBtiGb '�'!'0i1t��"�� �`1+a'/�5 1,016.;617.'�6 1�0¢O�OOIS�:OD 1r��i,�.�Z�S4' 6•b:73 6•3�! �5.423 Uif15j00 .T38 �.�
56308 I T�lkted BCik�i TLMkltfEy.. "Yh�i1/95 461��..190.11 � NS�OA0�.0o 4{q�SC{.$9 '8.710y S.i?9 5.�52 6B/1$/99 �560
3BttD> I li�b9E18� ��qiNiRltye . �7�3�IAb 3.OQ4;802.63 �t;00A,CU0�:90' 1,pQif.�B7.$a '7.9�5 ' S.tl2 3.3Aa04/15/98 �' �..73
iBCSO F� 1�1te6 BCaGaa TLiafFUxy'�� 32(Y7J93 i,Q;S.,408.59 �. 1;OOd.660-.00 1,OtYri15.0LL 7.}I$ d.ti2 ��:5.3f5 10/1$/9B �386
�
�
' rk,; � i . : .
' ' _,��,_.�_,,,y �._�._' ` ____ ___
_ __ � .y ._._ .�.,�- __
02/19/1998 City of Palm Desert PM - 9
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CI1'Y
JNII7ARY 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE STATED --- YTM --- MAT[1RITY DAYS
MIMBER ISSUER BALANCE DATE HOOK VALUE FACE VALVE MARI(ET VALUE RATE 360 365 DATE TO MAT
______________________________"_________"'___________"_____""__"__"___________________'_________"_________________"__________"____
TREASURY SECURITIES - COUPON
16039 United S[ates Treasury OS/31/96 1,999,696.79 2,000,000.00 2,003,750.00 6.000 5.967 6.050 OS/31/98 119
16035 United States Treasury OS/31/96 1,99'/,019.81 2,000,000.00 1,999,3'/5.00 5.125 6.041 6.125 03/31/98 SB
16036 _Uni[ed Statee Treasury 06/26/96 2,993,085.94 3�,000,000.00 3,009,500.00 5.8a5 6.252 6.338 08/15/98 195
1603'1 UniCed Statea Treasuzy 06/26/96 2,991,033.15 3,000,000.00 2,994,395.00 5.125 6.314 6.402 11/30/98 302
16042 bnited States Treasury .09/13/96 1,998,559.45 2,000,000.00 1,998,�50.00 5.125 6.068 6.152 02/2B/98 2'/
16045 Onited Statee Treasury 09/OS/96 1,99'1,498.92 2,000,000.00 2,008,125.00 6.125 6.2'10 6.358 OB/31/9B 211
16047 United States Treasury OS/O1/97 2,002,718.62 2,000,000.00 .2,023,750.00 6.305 6.1"/1 6.25'/ 04/30/99 453
16048 United States Treasuxy 03/21/90 1,996,601.]9 2,000,000.00 1,992,500.00 5.000 6.124 6.209 02/15/99 399
16049 United StdtE9 TLea9ury 12/11/97 6,102,044.21 6,104,000.00 6,100,185.00 5.125 5.404 5.4]9 02/28/9B 27
16050 United States Treasury 12/11/99 92,158.22 92,000.00 92,']18.]5 S.B95 5.694 5.']53 OB/31/99 5'/6
16051 United States Treasury 12/11/97 1,361,524.33 1,390,000.00 1,3B3,968.75 6.250 5.761 5.841 OB/31/02 1,672
16052 United States Treasury 12/11/9� 12,315.83 12,000.00 12,412.50 '/.125 5.6'/2 5.'/50 02/29/00 '158
16053 United States Treasury 12/11/97 98.034.16 97,000.00 99,061.25 6.250 5.713 5.792 08/31/00 942
16054 United Statee Treasury 17/11/9'/ 12,945.65 13,000.00 13,093.44 5.625 5.693 5.'!'/2 02/28/O1 1,123
16055 united Statea Treasuzy 12/11/97 1O5,1B2.39 103,000.00 106,669.38 6.500 5.750 5.830 OB/31/O1 1,307
16056 U�ited States Tieaeury 12/11/99 13,1BB.42 13,000.00 13,394.06 6.250 5.061 5.841 02/2B/02 1,4BB
1605] United Statea Treasury 12/11/9] 11,996.16 12,000.00 11,992.50 5.125 5.404 5.9'I9 02/28/98 2'!
16058 United Statea Treasury 12/11/9'/ 86,541.95 8'7,000.�� B6,6'/3.75 4.750 5.606 5.684 OB/31/98 211
16059 United Statee Treasury 12/11/9'/ 11,9'13.51 12,000.00 12,015.00 5.500 5.629 5.�0'] 02/28/99 392
16060 United States Treasury 12/11/9'l 308,430.16 300,000.00 313,406.25 6.625 5.'I68 5.848 03/31/02 1,519
16061 United Statee Treasuxy 12/11/9'/ 15,212,429.44 15,194,000.00 15,9'/4,139.38 S.B'75 5.'/62 5.842 09/30/02 1,'/02
16062 United S[atee Treaeuzy 12/11/99 926,]56.�0 911,000.00 940,038.13 6.3]5 5.]SB 5.838 09/30/O1 1,339
16063 United States Treaeury 12/11/9'I 286,384.91 282,000.00 290,019.38 6.3'IS 5.'I98 5.828 03/31/O1 1,154
16064 United Sta[es Treaeury 12/11/9'I 853,532.41 849,000.00 862,881.25 6.125 5.924 5.803 09/30/00 9'12
16065 Vnited Statea Treasury 12/11/9'/ 2'/0,'l88.06 265,000.00 2]3,115.63 6.8'JS 5.696 5.']']5 03/31/00 '/89
16066 United S[ates Treasusy 12/ll/99 806,651.61 809,000.00 811,091.56 5.'/50 5.693 5.0']2 09/30/99 606
1606'l Uni[ed States Treasury 12/11/9'/ 251,426.23 250,000.00 252,421.88 6.250 5.646 5.']24 03/31/99 423
16068 United Statee Treaeury 12/11/9'/ ]61,393.04 '766,000.00 963,129.50 4 J50 5.611 5.689 09/30/98 241
16069 United States Treasury 12/11/90 230,901.55 239,000.00 238,925.31 5.125 5.261 5.334 03/31/9B 58
_____________'___ ____"_________ _____"_"______ ____"_____'___ ______ "____' ______
SUBTOTALS and AVERAGES 49,'/3'/,628.38 49,']40,138.'/4 50,162,490.39
99,675,000.00 5.816 5.897 763
TREASURY SECURITIES - DISCOUNf '
17070 Onited Statee Treasury 12/11/9'/ 128,676.56 166,00�.00 132,073.75 5.078 5.'/58 S.B38 OS/15/02 1,564
1�071 (]nited Statee Tieaeuiy 12/ll/97 4,A8,445.80 6,1]0,000.00 4,B43,450.00 5.028 5.937 5.817 08/15/02 1,656
_ '_"_ _'_'_" '____' """_" '_____
SUBTOTALS and AVERAGES 4�84]�122.36 4,84'1,122.36 4,9'15,523�'15
6,336,000.00 5.'l38 5.818 3,659
CITY LOAN TO RDA
12001 Redevelopment Agency-Loan 0'//O1/95 19,000,000.00 19,000,000.00 19,000,0�O.OD 5.538 5.462 5.538 0'//O1/01 1,246
AVERAGES 19,000,000.00
4
02/17/1998 Ci[y of Palm Desert PM - 5
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
JANUARY 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE � STATED --- YTM --- MATURITY DAYS
NVMBER ISSUER HALANCE DATE BOpK VALUE FACE VALUE MARICET VALUE RATE 360 365 DATE TO MAT
STATE & LOCAL GOVT. SERIES
23000 State & LOCal Govt. SeZie9 12/11/9] 430,000.00 430,000.00 430,000.00 0.000 0.000 0.000 10/O1/02 1,'/03
23001 State & Local Gov[. Series 12/11/97 35,000.00 35,000.00 35,000.00 0�.000 0.000 0.000 09/02/02 1,6'14
___'__"_________ .__'______""' "__"__"'____'_ """'_'_"__ '_"" __'_'_ "_'_'
SUBTOTALS and AVERAGES 465,000.00 465,000.00 965,000.00
465,000.00 - 0.000 0.000 1,']O1
____'___""'______'__'____'_______'_____'___'_'____'_""___'_'__""'_'_"__"__'________"_"__"'__'_"'
TOTAL INVESTMENTS and AVG. $ 12'1,192,468.11 129,802,690.15
122,658,101.40 12B,53B,934.39 5.5725 5.6508 699
5
_
02/1]/1998 City Of Palm DeaeiC PM - 6
INVESTMENT PORTFOLIO DETAILS - GSH CITY
JANUAAY 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE STATED --- YTM --- MATURITY DAYS
NUhIDER ISSUER BALANCE DATE HOOK VALUE FACE VALUE MARRET VALUE RATE 360 365 DATE 1C) MAT
__""___"____'_"'_"__________"____"____'_'"_____________________________________'__"__"_""""__________"________"__________""_______
PASSHOOK/CHECRING ACCOUNTS
13009 Desert Willow Checking - BofA 2,]94.00 0.000 0.000 0.000
13010 Deaert Willow Savinga - HofA 435,608.62 0.000 0.000 0.000
13000 City Mai� Accour�t - HOEA 0.00 - , 0.000 0.000 0.000 �
13003 Office Complex Checking - HofA 6.65 0.000 0.000 0.000
13004 Office Complex 1Yuat - BofA 0.02 0.000 0.000 0.000
13002 Hank of Ametica - Savings 0.00 2.000 1.993 2.000
13005 Library Foundation - UBC 10,000.00 0.000 0.000 �.000
130�6 City Main Accoun[ - UBC -8]6,491.34 0.000 0.000 0.000
13008 Office Complex Checking - UBC 51,287.77 0.000 0.000 0.000
- 13011 Office Complex Trust - UBC 23,990.41 0.000 0.000 0.000
SUBTOTALS and AVERAGES 624,353.27 -351,619.']6 0.000 0.000
Accrued Intecea[ a[ Yurchaee 355,696.29
____________________________"_"_____"_________________________'_'_"_____________
TOTAL CASH $ 4,056.53 .
TOTAL CASH and INVESTMENTS $ 123,282,959.6'] 12'/,l'/6,524.64
6
02/17/1998 ' City of Palm Deeert PM - �
� PORTFOLIO MASTER INVESTMENT ACTIVITY BY TYPE CTTY
JAN[SARY 1, 1998 - JANUARY 31, 1998 ACCRUAL
i
t
STATED TRANSACTION PURCHASES SALES/MATURITIES
i TYPE INVESTMENT p ISSUER RATE DATE OR DEPOSITS OR WSTHDRAWALS HALANCE
FIDELITY 1REASURY POOL (MOnthly Swmnary)
�� 1200a Fidelity Institutional Cash 5.420
� 12005 Fidelity Ine[itutional Cash 5.420 . �
' 12006 R Fidelity Irae[itut�ional Caeh S.a80 � 321.00 321.00
�� � 12007 Fidelity Institutional Cash 5.9B0 � �
� ' 12009 I Fidelity Institutional Caeh 5.480 155.00
12010 R Fidelity Inetitutional Caeh 5.480 800.00
. 120ll Fidelity Institutional Caeh 5.140 �
12012 I Fideli[y I[lstitutional Cash 5.980 1,761.00 .
12013 R Fidelity Ine[itutional Cash 5.480 550.00
12015 Fidelity Institutional Cash 5.480 ,
12016 I FidElity Institutional Cash 5.9'/0
12018 R Fidelity Inetitutional Cash 5.980 99'/.00 99�.00
12019 Fidelity Institutional Cash 5.980
. 12020 I Fidelity Ins[itutional Cash 5.980 11.00 11.00
12021 Fidelity Ingtitutional Cash 5.460 1.00 1.00
12022 R Fidelity Ins[itutional Caeh 5.980 1,689.00 1,609.00
12023 Fidelity ineti[utional Caeh 5.360
1202n Fidelity Ine[itutional Cash 5.210
12025 R Fidelity institutional Caeh 5.480 1,963.00 -
1202'! R FideliCy Inati[utional Cash 5.480 2']4.00
12028 R Fidelity Institutional Cash 5.480 6'/3.00
12031 Fidelity institutional Cash 5.930
12032 Fidelity Institutional Cash 5.980 212.00
12033 Fidelity Institutional Cash 5.920
12034 Fidelity ineti[uGional Cash 5.480 I.00 '
12035 Fidelity Instiiutional Cash 5.4']0 2.00
12036 �Fidelity Inetitutional Cash 5.480 1.00
1203'1 Fidelity Institutional Cash 5.480 1.00
12039 Fidelity Institu[ional Cash 5.480 1.00
12042 I Fidelity Inati[u[ional Cash 5.480 1,125,830.00 1,902,714.00
12093 Fidelity InsCiCUCiOndl Cd9h 5.480 4.00 4.00
12093 R Fidelity InstiCutional Cash 5.480 1,759.00 1,759.00 �
12049 Fidelity Easti[utional Caeh 5.150 �
12095 Fideli[y Ine[i[utional Ca9h 5.470
12046 Fidelity InetitUtiOndl CdSh 5.480 3.00
12049 Fideli[y Inetitutional Cash 5.480 358.00
12050 Fidelity Ine[itutional Caeh 5.9'10
12051 Fidelity Institutional Caeh 5.970
12052 Fideli[y Institutional Cash 5.480 3,481.00
12053 Fzdelity InatituCional Cash 5.480 616.00
12059 Fidelity Inatitutional Cash 5.480 326.00
12055 Fidelity Inetitutional Cash 5.480 1,018.00
7
02/1]/1998 P
City of Palm Desert C
DISTRIHOTION OF SNVE5TMENTS BY Typg A
SANOARY 199] �hiough JANUARY 1998
MONTH '__"_"_'____'______'___"""'_'_'___"'_'_____"___'____ TYPES OF INVESTMENTS _'__'_'"_______""'____"_"____"___"'__"'
END YEAR BCD SCD LA1 LA2 LAS PA1 PA2 MTN HAC CPI COM FAC FAb 1RC TRD MD1 MC1�
____"____"_____________________'___'_______________"__"_________"____"___"_____""__""_______________"_"____"__"_________"____________'
Sanuary 9] Z 5 19.1 15.'/ 34.2 23.6
Febivaiy 9'1 9.5 19.1 15.7 34.2 23.6
Mamh 99 6.5 19.9 18.'] 32.1 23.3
April 9'/ 5.9 20.3 19.1 30.6 24.1
May 9'/ 5.5 23.6 1'1.'1 30.8 22.9
June 9] 5.0 1'/.8 5.4 22.0 28.8 20.9
Suly 9'1 4.6 1'/.4 4.3 5.2 20.'/ 2'/.'/ 20.1
Auguet 99 6.9 14.9. 6.9 24.0 26.1 20.8
September 9'/ 5.6 14.4 6.5 2'].5 25.6 20.4
OCtober 99 6.6 15.2 3.9 . 26.6 26.6 21.2
Novembez 97 6.8 15.5 3.9 2'/.2 25.0 21.6
December 9] 2.4 11.5 5.1 a.2 14.3 42.0 4.1 16.0
Januaxy 98 3.4 10.9 6.4 2.3 18.8 39.1 3.B 14.9
� '""___"______"'_"'___"_'__'__'__'___'"_'"'_"_"'__"'_'______"___________"'_"'____"'"'______'_"'_'"__"_"'_"""___'_"_
AVERAGES 5.'!& 16.Bf 2.86 1.3L 20.�b 31.Oi 0.6& 21.OE
Bm - Certificatee of Depoeit - Bank SC� - Certificates of Oeposit - S & L
LA1 - Fidelity Treasury Pool LA2 - Managed Pool Accounte
LAS - Local Agency Inveetment Funde PAi - Pasebook/Checking Acconnte
PA2 - Caeh with Trustee -FiT9t Tru9t MTN - Medium TeYm Note9
HAC - Hankera Acceptancea CPi - Commercial Paper - Intereet Bearing
COM - commezcial eaper - Digcount FAC - Federal Agency Iaeuea - Coupon
FAD - Federal Agency Issues - Discount 1RC - Treaeury Securitie9 - Coupon
TRD - Treasury Securitiea - Diecount PID1 - Treaeury Securities - T-Billa
MC1 - City Loan to RDA MC3 - SCatE 4 LOCal GOvt. Seiies - Coupon
MD2 - SCate 6 LOCal CAvt. SeYie9
11
02/19/1998 PM - 12
Ci[y of Palm DeSeit CITY
INTEREST EARNINGS SONPiTiRY ACCRUAL
JANUARY 31, 1990
MONTH ENDING FSSCAI.
.TANUARY 31, 1998 YEAR TO DATE
CD/Coupon/niscount Inves[mente:
Interest Collected $ 96,599.'/2 $ 1,556,496.26
PLUS Accrued Interes[ at End of Period 3,970,079.04 3,920,029.04
LE55 Accrued In[ereat at Heginning of Period ( 3,509,519.99) ( , 2,863,962.4']) . �
___'_'_____'___'_' '"'__""""__"_
Intereet Earned du[ing Period $ 48'/,lOB.']'] 2,612,542.83
ADSUSTED by Premiums and Diacoun[e 1,319.B9 5,351.55
ADJUSTED by Capi[al Gains or Loseea 4,459.91 2,993.54
__________________ ________"_____"___
Earnings during Period 492,888.0'] $ 2,620,83'1.92
Mortgage Backed Securi[iee:
Interes[ Collected $ � o.00 S 0.00
PLVS Accrued Interest at End of Pex'iod 0.00 0.00
LE55 Accned Interes[ a[ Heginning of Period ( 0.00) ( 0.00) -
___'_"__'__""'_ _'_'_'__'_"___"'
Inteie5t EaTned durin9 PeZ'iod $ 0.00 0.00
A�NSTED by Premiuma and Diecounta 0.00 0 00
ADNSTED by Capital Gains or Loesea 0.00 O.oO
__________________ '"_""'__"'""_'__
Earningg duzing Period 0.00 $ 0.00
Cash/Checking Accounts:
Interest Collected 5 _ 16,732.90 $ 612,186.53
PLllS Accrued Interest at End of Period 676,077."/2 676,077.72
LESS Ac<rued Inteseat at Begiming of Period ( 588,523.48) ( 550,360.6'!)
""_"_"""_'_'" _'_"__________"_
Interest Edrned duaing Peaiod ' $ 104,28'/.14 $ 939,903 SB
TOTAL Interest Earned during Period 5 591,395.91 $ 3,350,446.41
TOTAL Ajuatmente from Premiuma and Discounts S 1,319.89 S 5,351.55
'lOTAL Capital Gaina oz' Loeaea $ 4,459.41 $ 2,943.54
__""'"__'__""""""" """"""_____"'"_"""
TOTAL Earninge during Period $ 59'1,175.21 $ 3,358,']41.50
12
�
02/1'//1998 � Aseeeement Dis[rict 83-1 PM - 2
I�ESTMENT PORTFOLIO �ETAILS - INVESTMENTS CITY
TAN[7AAY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- Y1T7 --- MATURITY DAYS
NUMBER ISSUER DATE HOOH VALUE FACE VALUE MARKET VALUE RpTE 360 365 DATE TO MAT
_________________________________________"__________""_'______________________"____________________________""_______"________"'___
FID&L31'1 TREASURY POOL
1202] R Fidelity Institutional Caeh 62,001.00 62,001.00 62,001.00 5.480 5.405 5.980 1
12034 �Fidelity Inetitu[ional Caeh 13].00 13"l.00 13"/.00 5.980 5.405 5.480 1
� '"_____'___"_ ____'_____'___ "'__"""'__ _"___ '___'_ _'____
S06TOTALS and AVERAGES � 62,138.00 � 62,138.00
62,138.00 5.405 5.980 1
TOTAL INVESTMENTS and AVG. $ 62,138.00 62,138.00
62,138.00 5.405& 5.480b 1
13
#
02/19/1998 Aeaeeament Distzict 83-1 - PM - 3
INVESTMENT PORTFOLIO D£TAILS - CASH CITY
' JANUAAY 31, 1990 ACCRVAL
SNVESTME�IT PURCHASE � STATED -- Y1M --- MATURITY DAYS
NUPIBER ISSUER DATE BOOR VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
__________________"_'_"_____""'"'______"_______'_"___________"_______'___________"_________""_________'______"____"____________'"'
CASH WITH TRUSTEE -FIRST TRUST
24002 Cash with Tru9tee 1.30 0.000 0.000 0.000
TOTAL CASH and INVESTMENTS $ 62,139.30
14
�
02/17/1998 1995 Refunding Bonde 89-1-R pp� _ 2
� INVES'iT1ENT PORTFOLIO DETAILS - I�STMENTS CITY
. JANIJARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- Y1M --- MATURITY DAYS
NUPIDER ISSUER DATE HOOK VALUE FACE VALUE MARRET VALUE RATE 360 365 DATE TO MAT
______'___"_"_____"_'_'__'__'_____""._""_'___"_'_"'____""_"'_""""_"_'________"___"_""'_'__"___'"____""'__"_"""_"_
FIDELITY TREASURY POOL
12025 R Fidelity Ins[itu[ional Caeh 45'/.236.00 45'/,236.00 457,236.00 5.480 5.405 5.480 1
. 12035 Fidelity Inetitutional Cash 635.00 635.00 . 635.00 S.s90 5.395 S.a90 1
. ______________ ______________ _'____________ ' ______ __"___ ______
SUBTOTALS and AVERAGES 45],B]1.00 957,B'71.00 �
- 45'!,8'l1.00 5.905 5.480 1
TOTAL ITNESTMENTS and AVG. $ 45'/,BA.00 45'/,8'/1.00
457,871.00 5.405& 5.4808 1
15
E
02/ll/1998 1995 Refunding Honds 04-1-R PM - 3
� .. INVESPMENT PORTFOLIO DETAILS - G15H CITY
,TpPII]pFy 31, 1998 ACCAUAL
INVESTMENT PURCHASE STATED -- YTM -- MATURITY DAYS
NOMBER ISSUER ��DATE BOOK VALUE FACE VALUE MAAFCET VALUE RATE 360 365 DATE TO MAT
CASH WITH TRVSTEE -FIRST TRUST �
24001 Cash with Trustee � 1.92 0.000 0.000 0.000
' ________________________________"__"_________'"_""__________"___"___"______________
1bTAL CASH and INVESTMENTS $ 457,872.42
16
�
02/19/1998 AD 09-1 PM - 2
y INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
SM*fSARY 31, 1998 ACCAUAL
INVESTMENT PURCHASE . STATED --- YTM —" MATUAITY DAYS
NUMHER ISSUER DATE BOOK VALUE FACE VALUE IMRI(ET VALUE RATE 360 365 DATE TO MAT
FIDELITY 1REASURY POOL
12028 R Fidelity Institutional Cash 156,'193.00 156,'193.00 156,]93.00 5.480 5.405 5.480 1
12036 Fidelity Inatitutional Cash 18'/.00 18'1.00 18'1.00 5.480 5.405 5.400 1
____'____'__'_ "'_'""'__'_"_ "_"__'""'"'_ '___" """"_ _'___'
SUBTOTALS and AVERAGES 156,980.00 156,900.00
' 156,960.00 . 5.405 5.480 1
'""'"""'_"'__"'""_'__'___"_"_"'_'_"'___'_____""'_'________'___"_"'__""_'
TOTAL INVESTMENTS and AVG. $ 156,980.00 156,980.00
156,980.00 5.405& 5.480$ 1
17
__
, � . _ . . . . ....,, .. ., . .,,.
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� �:INY66'�'�.Y�R7'F04IO:DBTA2iaM�l '�..GASFI �.'I'17 . . .
. � JXtrt1ARY 31,.��1998 A�CROAi+.. .
3NVV�Y917SIPf. . :...�CS(RSE �.;:. , �..� Bi�� --' Y147����--_ MATUkI17 �f1RY8.
NtIN�D,S I$89$R � T¢ &'3�R VALUS� � 8AC8 S'AL11E AWRN�i .`."VALOB RA4���� 3Kd '��365 �DAT6 TO MAT. �
'CJ16H'MItR TRU87'68 -F7t1�81' 'kRi761' . � � � � . � .
2so0s Calti viC{� Tivp¢ea . . . 1.82 ��. '6.001 6.G01 0;001 � �
7O1'A&C,A,�S�d #NMiS'i3�eNR8..� `. ��, ' $ 1l.6,961.Ba` �.. . . � � ' . � .
.��w+r'Nn.......ww..o.eww..........�}+rw.o�naaM�.�+sw�.a"�:'.'.s.o.w�.�a�
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18
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0Y/1]/199B ' indian Aidge 91-1 Seiiee A PM - 2
�?;:.INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
SANUARY 31, 1998 ACCRUAL
,{.:,�`�` .
INVESTMENT '�`PORCHASE STATED --- YTM --- MATf1RITY DAYS
NUFIDER ISSIIER ,'�E:��.DATE HOOR VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
FIOELII'Y 1REASURY POOL
12015 Fidelity Institutional Cash �� 0.00 0.00 0.00 5.480 5.405 5.490 1
12016 I �Fidelity Institutional Cash �� 324,944.00 324,944.00 324,944.00 5.900 5.395 5.4'/0 1
12022 R Fidelity Institutional Cash `� 0.00 0.00 0.00 5.480 5.405 5.480 � 1
SUHTOTALS and AVERAGES 329,944.00 324,944.00 �
' 324,944.00 5.395 5.4'/0 1
TOTAL INVESTMENTS and AVG. $ 324,994.00 324,944.00
� 324,944.00 5.395& 5.4']0& 1
I Y'
II�{
19
�
02/19/1998 Indian xidge 91-1 Seiiee A - �' - 3
INVESTTIENT POATFOLIO DETAILS - CASH CITY
� JAN[IARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATE➢ --- YTM --- MATURITY DAYS
NUN�ER ISSUER DATE BOOR VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
CASH WITH TRUSTEE -FIRST TAUST
24004 Cash with Trustee 0.28 0.000 0.00o O.00o
' __'_"'_"""'"""'"_'"""'"""__'"'__"'___'_'_""_"""___'____"'____""_'_'__'____
TOTAL CASH and INV$STMENTS $ 324,944.28 �
ZQ
. . . . . . . . . _ _. . . . .
r —�
� @2/`J.7/149fl IiIQllil Ai�e 4i-1 8tlfi.1�M B. VH: _ ;:.. .
��-�2HV66'�¢`��'�R�:iP,Dg1Ykt�C`'�.C�H ..GITY . . .
�.:TANUXRY�31, 1948 . ACE'R1&II. '
I6l�E��11�fi'f .PS7Rk3tX$8 $�'�BG ��- M![�=-- MATEIRITY DAYfi� ..
NW��U2 � 205U�, ��iLT6 80�K YAhUE .��.FMR VALVB bBtR2'�'"Yl '�C 1G"dR� 36A .�355 �A7! TO�MAT
�"_':�'" ".._...N. ""'"'^"'""' " �"_ """"" .... "'�" _ :.""" ."'"""." "._....;". ....___':' , � .
CAkfk:lA2T1i 11ti1$'lY'6 -PYRB'iP 18tl91' .. . . . �
24930 � C}aia vitE fitVstae 0.00��- n,p90 9.0A0 �:p.000 .
,�:: . . . . .. . . ... .: �.� � . �, .
. . '_"".' '_"""" '"":^_" ""'.�r«:,..' ""': '."'""�.'.' "'�""_"._:"'."
1�bT�L:�'"t,�}SH Aad TNVSBTN���� �� 5 O�$�7�3{8.{4 '. . .
.»nruw�w.�w��.u�.�sw.:�:r�....a�.s�:V!}}rys4�riylYYuMir4+F��.i�sr.�.r.�.�.��..�..�.a�u�
., r ..: ,.:an�.�
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i 02/1]/1998 914 Seziea 199] PM - 2
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
JAIJIJARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE � STATED --- Y1T1 --- MATUAITY DAYS
NUt�ER ISSVER DATE BOOK VALOE FACE VALUE MTRI(ET VALVE RATE 360 365 DATE TO MAT
________'____"_"______________"____________________"__________'"_"_"___'__""_____________'____________"__"_"____"______"'________
FI➢ELITY TREASURY POOL
12050 Fidelity Institutional Caeh 0.00 0.00 0.00 5.4'/0 5.395 5.4'/0 1
1205� Fidelity Inatitutional Caeh 14,102.00 14,101.00 14,102.00 5.480 5.405 5.400 1
12057 Fidelity Institutional Cash . . 2,229,683.00 2,229,683.00 2,229,683.00 0.000 0.000 0.000 1
"""'"""'_'__ _____________' _""_'"_""'__' "____ '_"'_ _"___
SUBTOTALS and AVERAGES 2,243,785.00 2,293,785.00 �
2,243,'/85.00 0.034 0.034 1
TREASURY SECURITIES - COUPON
16060 United States Treasury 12/11/97 308,430.16 300,000.00 313,406.25 b.625 5.768 5.848 03/31/02 1,519
16061 United State9 Treasuly 12/11/9'] 15,212,429.44 15,199,000.00 15,4'/4,139.38 5.8]5 5.]62 5.842 09/30/02 1,'!02
16062 United Statee Treaeury 12/11/97 926,756.70 911,000.00 940,038.13 6.375 5 J58 5.838 09/30/01 7,337
16063 Vnited Statea Treaeury 12/11/9'/ 286,384.91 282,000.00 290,019.38 6.3'l5 5.'l48 5.028 03/31/OS 1,154
16064 United States Treasury 12/11/9'1 853,532.41 09'/,000.00 862�881.25 6�}25 5�"124 S�B03 09/30/00 9'12
16065 United States Treasury 12/11/9'/ 2'/0,'/88.06 265,000.00 2'/3,115.63 6.8']5 5.696 5.']'75 03/31/00 '/89
16066 United Sta[ea Tieasury 12/11/9'1 806,651.61 � 80'l,000.00 811,�91.56 5.']50 5.693 5.'I']2 09/30/99 606
1606'l United States Treasury 12/11/9'l 251,926.23 250,000.00 252,421.BB 6.250 5.646 5.'/2a 03/31/99 423
16068 UniCed States Tieasury 12/11/9'] �61,3�3.04 ]66,000.00 963,120.50 4.]50 5.611 5.689 09/30/98 241
16069 URited States Treasury 12/11/9'/ 238,901.55 239,000.00 238,925.31 5.125 5.261 5.339 03/31/98 SB
"_'__""'_"" _"'___"_'_" ___"'___'_'_'_ ______ ____'_ _____'
SUBTOTALS and AVEFtAGES 19,916,6]4.11 20,219,866.2']
19,861,000.00 5.'/43 5.823 1,494
TREASURY SECURITIES - DISCOUN'C
1]0']1 United States Treasuzy 12/11/9] 4,'118,495.80 6,3]0,000.00 4,843,450.00 5.028 5.'/3'! 5.81'/ OB/15/02 1,656
STAT6 & LOCAL GOVT. SERIES
23000 State 5 Local Govt. Seriea 12/li/9'/ 430,000.00 430,000.0� 430,000.00 0.000 0.00� 0.000 10/O1/02 1,'!03
TOTAL INVESTMENTS and AVG. $ 2],308,904.91 2],'/37,101.27
28,']09,'/85.00 5.183& 5.2558 1,403
23
02/1�/1998 91-1 Seriea 199� PM - 3
IN�STMENT PORTF�LIO DETAILS - �SH CI'PY
JANOARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTTi --- MATUAITY DAYS
NOMBER ISSUER DATE HOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
________________________________"_"_'""_'__'_____________________"'___'___'__"____________'____________________________________""'
CASH wITH 1RUSTEE -FIRST TAUST
24013 Cash with Trus[ee 1,089.56 0.000 0.000 0.000
Accrued In[ereet a[ Purchaee 231,299.04 ' . . �
TOTAL CASH $ 232,384.60
TOTAL CASH and INVESTMENTS $ 27,591,289.51
24
02/17/1998 ' 92-1 Seriee 199� PM - 2
' INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
SAN[IARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM -- MATURITY DAYS
NVMBER ISSUER DATE BOOR VALUE FACE VALUE MARKET VALVE RATE 360 365 DATE TO MAT
____________"'"__"""'__________'__"_________"__'_________"_______________________________________________"'_____""________________
FIDELITY TREASURY POOL
12051 Fidelity InStituCiOndl Cash 0.00 0.00 0.00 5.470 5.395 5.4'!0 1
12059 'Fidelity Institutional Cash 1,883.00 1,883.00 1,883.00 5.480 5.405 �5.480 1
' ___"__"'_'_""_ _'_________""_ "__'_'____"' _"'__ _____" . ""__
SUBTOTALS and AVERAGES ' 1,883.00 . 1,BB3.00
1,883.00 � 5.405 5.480 1
TREASURY SECURITIES - COUPON
. 16050 United Statea Treaeury 12/11/99 92,158.22 92,000.00 92,A8.'IS 5.805 5.694 5.]53 OB/31/99 5]6 �
16051 United State9 Tieaeury 12/11/9] 1,361,524.33 1,340,000.00 1,383,968.'/S 6.250 5.761 5.841 OB/31/02 1,6]2
16052 United Sta[es Treasury 12/11/9� 12,315.83 12,000.00 12,412.50 ].125 5.692 5.'150 �2/29/00 958
16053 United Statee Tzeaeury 12/11/97 98,034.16 97,000.0� 99,061.25 6.250 5.713 5.792 OB/31/00 992
16054 UniCed.States Treasuxy 12/I1/99 12,945.65 13,000.00 13,093.44 5.625 5.693 5.9'!2 02/20/O1 1,123
16055 Uni[ed SCa[ea Treasury 12/11/97 105,182.39 103,000.00 106,669.38 6.500 5.'/50 5.830 OB/31/O1 1,30'1
16056 United States Treasury 12/11/9'/ 13,188.42 13,000.00 13,394.06 6.250 5.'161 5.841 02/2B/02 1,488
1605'/ United States Treasury 12/11/9'1 11,996.16 12,000.00 11,992.50 5.125 5.404 5.9']9 02/2B/98 2�
16058 United Sta[es Tneaeuiy 12/11/9"1 86,541.95 89,000.00 B6,6]3 JS 4 J50 5.606 5.684 OB/31/98 211
16059 � United SCatee Treaeury 12/11/9'/ 11,9'/3.51 12,000.00 12,015.00 5.500 5.629 5.90'1 02/28/99 392 .
SUBTOTALS and AVERAGES 1,805,860.62 1,831,999.38
1,781,000.00 5.742 5.821 1;459
TREASURY SEC[IRITIES - DISCOUNT
1]0"]0 United Statea Treaeury 12/11/9'1 128,6']6.56 166,000.00 132,0�3.]5 5.0'18 5.'!58 5.838 OS/15/02 1,564
STATE S LOCAL GOVT. SERIES
23001 State G Local Govt. Seriea 12/11/97 35,000.00 35,000.00 35,000.00 0.000 0.000 0.000 09/02/02 1,67a
TOTAL INVESTMENTS and AVG. $ 1,971,420.18 2,000,956.13
1,983,883.00 5.6408 5.7191 1,469
25
02/1�/1998 9]-1 Seriea 199� � PM - 3
INVESTMENT PORTFOLIO DETAILS - CASH CITY
' JNIl/ARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE � STATED --- YTM --- MAT[7RSTY ➢AYS
NUM1IDER ISSUER DATE BOOR VALUE FACE VALUE MARKET VALVE RATE 360 365 DATE TO MAT
CASH WITH TRVSTEE -FIRST TRUST
24014 Cash with Truatee 86.30 0.000 0.000 0.000
Accrued Intereat at Purchaee 30,922.6'/
__"'_"_"_'"__,__'__"""_'____'_"_"_"'_'_"__"'____"__"""__'""__"_'_____
TOTAL CASH $ 30,SOB.9'/
TOTAL CASH and INVESTMENTS $ 2,001,929.15
26
' � .i� . ., � .'S. � . . ... . ..e. �" . .n�s, . � '��
� !'� . . � .��e
6Zf17119lE ��4i-1 Beiies'1997 p�(�..- Z � .. . .
�.�. .. . . . .;�.� . .
. ,;NV8811�iT PbRTPQL20 1�T7kiL6 . INV66TDSNR3 CITY�. � � �
.. ��JANOMY 11; '�3998 kCCRUAL� � .
THV841�IT .. DSACCHA88 � � ' 9T1�¢SD , *-_ 'Y'iR.��_'_ MATUR17Y ➢1U�S �.
17{F�R I89118R � ARTB 8041C VALSlE . �.,, FACB VRLDE HAR1�? YALUIS RA'4`S� 380 �:�. 365 bAT& 70��MAT
. , . � . . . . . . . . . . .:. . :� . �. �. . .
' "�_""" " ""."" """"' """"", ".:�"�" '"'._._'".""" "' � .. . . .
' ""'.'"" ""'""":: .. _-"" _"""' �.__ """"
FT�1RtiITY 'L7I8i18URY POC1Y . . � � . � � .
i2055 Bidtlity A1i4CituCi�lsY �Geki ' � A,4B4.R0 t,4B9�.00� 4.$69.08 S.t80 8.F05��5.680: � � . � � 1�
11CSf P}�i�.ty I1ytiCUCitJ[JOl G%h O.Op P�.00 .�;0.08 �5.430 fi.345 '4�.470 �� T
. . . ... , . � . .
, . �...._._. `���_ _��.� __.��_��_ ___�_�..r.pa._��. .
. . . . ._�. ��_ ___..�_ _�___'
�wexoa�xcs aa4 �.�s ..�x.zev.00 � �� s,�a9.ua . . .. . .
.. �� � 4,284.D0�� �. G.�B$�. .S.ABQ� � � . 1 .
RRCS8lA3Y BECE)k�TTYQ - t7011@0►1� . . . � .
TB4f9 QqttlQ SCAtO1: 'PzqiiNiCy. � 31/11/97 6,.1027064.21 . 8�304,OdA'.00 5,100.y,65.48 5,}36 S.tOt.. 5.i79 02/18/48 . Y7� :
� - - .. . �c..: """"
9iTAi..��J�FYi9'ClBNYB arifd AY�,., . �t 6 6.1Ob:333.11 6.14�Ft��9k.Dp .. .
ir390�Y89.00�. ::� ;$.�M4 5:.�74! . � :. 39
` v�.ov�,�rws�. wriw++���rtr:n++�Mr.`rr..rr � . .
� � :.�� � G�� � .
F,
�
02/19/1998 99-1 Series 199'! PM - 3
� I1aVESTMENT PORTPOLSO DETAIL$ - GSH CITY
JANOARY 31, 1998 ACCRUAL
SNVESTMENT YURCHASE STATED --- YTM --- MATURITY DAYS
NUMBER ISSUER DATE HOOK VALUE FACE VALUE MARI(ET VALUE FtATE 360 365 DATE TO MAT
CASH WITH TRUSTEE -FIRST TRUST
24011 Cash with Tiustee 0.30 0.000 0.000 0.000
Accrued Interest at Purchase 88,195.4'/ � '
TOTAL CASH $ 88,145.']'1
TOTAL CASH and INVESTMENTS 5 6,194,a78.98
2$
�
02/1'//1998 S�nterrace 94-2 eM - 2
� IDiVESTMENT PORTFOLFO DETAILS - 1[�Jg$'�'MEN'1'S CITY
SANUARY 31, 1998 ACCRUAL
INVESTMENT PVRCHASE . STATED -- YTM --- MATURITY DAYS
NUMBER ISSUER ➢ATE BOOR VALUE FACE VALUE MARKET VALUE RATE 360 365 OATE TO MAT
'___"________"'"___"____'__'________'__'______'__'__""______'_"__'_'__'_'__'_""__________"______'_'___'____""____"_"'___'_'_
FIDELITY TREASURY POOL
12009 I Fidelity Inatitutional Cash 35,904.00 35,904.00 35,909.00 5.480 5.405 5.480 1
12010 R FidElity InatitutiOndl CdBh 18fi,306.00 186,306.00 1B6,306.00 5.480 5.405 5.980 1
12032 Fidelity Institutional Cash . . 4'1,8'18.00 47,8"18.00 4'],6']8.00 5.480 5.405 5.980 1
12033 Fidelity Ineti[utional Caeh 19.00 19.00 10.00 5.420 5.346 5.420 1
. ___""____"_""_ _"_'__________ __"_______""__ "_____ ______ ______
SUBTOTALS and AVERP.GES 290,105.00 290,105.00
270,105.00 5.405 5.480 1
TOTAL INVESTMENTS and AVG. S 290,105.00 290,105.00
270,105.00 5.405$ 5.4803 1
29
. 02/19/1998 Sunternace 94-2 PM - 3
INVESTMENT PORTFOLIO ➢6TAILS - �pSH CITY
JANUARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUFIDER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DAT£ TO MAT
_______"___""_"__________________"_________'_______"____"__'________________"_________"'_________"_________"'"_____"____________'_
GSH WITH TRUSTEE -FIRST TRUST
24006 Cash with Tzustee 1.50 0.000 0.000 0.000
______________________________'"_________'"_____________'__________________________
TOTAL CASH and INVESTMENTS . 5 2]0,106.50
30
>
02/19/1998 ' Merano 99-3 � - 2
INVESTTIENT PORTFOLIO DETAILS - I�STMENTS CITY
SAI.�IJARY 31, 1998 ACCRUAL
INVESTMENT pURCHASE STATED -- YTM --- MATURII'Y DAYS
NVMBER ISSUER DATE BOOR VALVE FACE VALUE MARItET VALUE RATE 360 365 DATE TO MAT
____________________"___"______________________________"_"_"_____________"_________""_____"______________"__'_"_'__'____""_____
FIDELITY TR£ASIIRY POOL
12011 Fidelity Inetitutional Cash 0.00 0.00 0.00 5.190 5.0'!0 5.140 1
12012 I � Fidelity Inetitutional Cash 910,059.00 410,059.00 410,059.00 5.480 5.405 5.480 1
12013 R Fidelity Inetitutional Cash � 128,060.00 128,060.00 128,060.00 5.9B0 5.405 5.480 � 1
12031 � Fidelity Institutional Cash ' 21.00 � 21.00 21.00 5.930 5.356 5.430 1
� 1203"! Fideli[y InatituCional Cash 119.00 119.00 � 119.00 5.980 5.405 5.480 1
______________ ______________ ______________ ______ _'_"__ __""__
SUBTOTALS and AVERAGES 538,259.00 53B,259.00
� 538,259.00 5.405 5.480 1 �
TOTAL INVESTMENTS and AVG. S 538,259.00 538,259.00
. 538,259.00 5.905& 5.480R 1
31
�
02/1'//1998 Merano 94-3 � pM - 3
INVESTME[�'�' pORTFOLIO DETAILS - �p$H CI'�'Y
. JAMIARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE � STATED --- YTM --- MATURITY DAYS
NUMBER ISSUER DATE HOOK VALUE FACE VALUE MARKET VALUE ppTE 360 365 DATE TO MAT
______"'"___"""_________"_'___________"___'________________________________________"____'______________________________""'_"__"___
CASH WITH TRUSTEE -FIRST TRUST
24005 Cash with Truatee 1.32 0.000 0.000 0.000
TOTAL CASN and INVESTMENTS 5 53B,260.32
32
s
02/10/1998 95 REV 9ND: 83-1, 84-1-R, B�-1 pp - 2
I{�y�STMENT PORTFOLIO DETAILS - I�STMENTS �I�y�y
. JAMIARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED -- YTM -- MA'1'ORITY DAYS
NUDIDER ISSUER DATE BOOI( VALUE FACE VALVE MARI(ET VALllE RATE 360 365 DATE TO MAT
_""____'"__"____________""'_""____"_"_____"________""______"_____"______""'_____"_______________________"'____________________'___
FIDELITY TREASUAY PppL
12023 Fidelity inati[utional Cash 0.00 0.00 0.00 5.360 5.28] 5.360 1
. 12024 Fidelity Inati[utional Cash 0.00 0.00 . 0.00 5.210 5.139 5.210 1
�12039 Fideli[y Institutional Cash 183.00 183.0o 183.00 .5.480 5.405 5:480 1
12046 Fidelity Inetitutional Caeh BO'l.00 807.00 80'/.00 5.480 5.405 S.t80 1
12049 Fidelity Institutional Caeh 83,425.00 83,425.0o 83,425.00 5.480 5.405 5.480 1
______________ _______"______ ____"__""____" _____` "_____ "'____
SUBTOTALS and AVERAGES 84,915.00 84,415.00
84,415.00 5.405 5.480 1
_______""_'_'_'________"___'___'____"'_____'___'""_"'_"'____'_____""'__'__
TOTAL INVESTMENTS and AVG. $ 84,415.00 84,415.00
84,415.00 5.9054 5.4804 1
33
r
02/1"//1998 95 REV BND� 83-1, 89-1-R, 8]4 PM - 3
INVESTMENT PORTFOLIO DETAILS - CASH CITY
JANVARY 31, 199B ACCRUAL
INVESTMENT PURCHASE STATED -- YTM --- MATIIAITY DAYS
NUPIDER ISSUER DATE HOOK VALUE FACE VALU£ MARICET VALUE RATE 360 365 DATE 1V MAT
CASH WITH 1RUSTEE -FIRST TRUST
24003 Cash with Tru9tee 1.16 0.000 0.000 0.000
TOTAL CASH and INVESTMENTS $ 84,416.1.8
34
4
02/17/1998 199] Rev Hnd: 91-1, 92-1, 94-1 PM - 2
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
JANVARY 31, 1998 ACCROAL
F�E$TMENT Pi7RCHASB � STATED -- YTT7 --- MpTpRITY ppy$
NOMBER ISSUER DATE H00]( VALfIE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
'__""___""'__________'__"_"'__'"____'__'___'__'_""_'_""__"_""________"'____'_'_""_'_'_"_______""__'_____""_"'______"'___
FIDELITY TREASSIRY POOL
12053 Fidelity Ina[itutional Cash 199,219.00 194,219.00 194,219.00 5.9B0 5.405 .S 490 1
__"""_'______"_____________________"_"_______"_"________________'_______________
TOTAL INVESTMENTS a�d AVG. $ 194,219.00 194,219.00
- 194,219.00 . 5.4056 5.480& 1
35
02/19/1998 199� Rev Bnd: 91-1, 92-1, 94-1 PM - 3
INVESTMENT PORTFOLIO DETAILS - �SH CITY
JAN[SARY 31, 1998 ACCRUAL
INVESTMENT YURC�+SE STATED --- y1T7 --- MATURITY DAYS
NUhIDEA ISSUER DATE HOOR VALUE FACE VALUE MARI(ET VALUE @ATE 360 365 DATE TO MAT
____""___"_________________________"""_____________________________"_____________"_"_____"'_____"___""_______________"_______'"___
CASH WITH 1RUSTEE -FIRST TRUST
24012 Cash wiCh Truatee 0.45 0.000 0.000 0.000
TOTAL CASH and INV£STMENTS $ 194,219.95
36
�
02/1]/7998 ' Library Foundation PM - 3
. INVESTMENT PORTFOLIO DETAILS - �pSH �ITY
JANUARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED -- YTM -- MATURSTY DAYS
NOPIDER ISSU£R DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
_____"_'__'__'__'__"'_____'_______"_'____'_'_'__'_'__'______'_____"'___""____'_______'____"'_""'_'_"___'_"""___'_________'"
PASSBOOK/CHECXING ACWIINTS
13005 Library Foundation - UBC 10,�00.00 �.000 0.000 0.000
TOTAL CASH and INVESTMENTS ' $ 10,000.00 .
37
�
oz/i�/isse City General Fund � pM - 2
INVESTMENT POATFOLIO DETAII.S - INVESTMENTS �ITY
� SANIIARY 31, 1998 ACCAUAL
INVESTMENT PURCHASE � STATED --- YTM --- MAT[IRITY pAYS
N�FIDER ISSUER DATE B00% VALUE FACE VALUE MARKET VALUE RATE 360 365 DAT£ TO MAT
LOCAL AGENCY INVESTMENT FISNDS
12000 Local Agency InvesCment £un 13,842,222.91 13,892,222.91 13,842,222.91 5.']44 5.665 5.]44 1
, PASSBOOK/CHECKING ACCOVNTS
1300] Main �Account (Sweep) - UBC '/,609,000.01 � 0,609,000.01 '/,609,000.01 9.630 4.56'/ n.630 1
CONPIERCIAL PAPER - DISCOVNY
2000'1 Moxgan Stanley 12/19/9'1 2,969,550.00 3,000,000.00 2,990,816.67 5.800 5.859 5.941 02/20/9B 19
FEDERAL AGENCY ISSOES - COUPON
14016 Federal Farm Credi[ Bank OB/04/99 3,000,000.00 3,000.000.00 3,031,695.00 6.000 6.000 6.083 OB/09/00 915
14007 Federal Home Loan Hank 10/24/9b 3,994,416.21 4,000,000.00 4,007,500.00 5.820 6.019 fi.102 11/02/9B 274
14020 Fedezal Home Loan Bank O1/34/98 3,000,000.00 3,000,000.00 2,998,125.00 5.802 5.802 5.883 O1/14/00 ']12
14022 � Federal Rome Loan Bank O1/09/9B 1,997,531.25 2,000,000.00 2,001,875.00 6.105 6.145 6.231 O1/09/02 1,438
14009 FED HOME LOAN MORTGAGE CORP O1/09/9'I 1,995,0'l6.39 2,000,000.00 2,000,625.00 6.855 6.930 �.026 O1/09/02 1,438
14019 FED ROME IAAN MORTGAGE COAP 09/09/9� 2�000�'101.26 2�000�000.00 2,001,250.00 5.840 5.636 5.919 04/OB/9B 66
14021 Federal National Mortgage A O1/OS/98 996,325.00 1,000,000.00 99�,18�.50 5.230 5.689 5.'l68 11/25/98 29'!
14023 Federal National Mortgage A O1/14/98 2,000,000.00 2,000,000.00 2,001,250.00 6.010 5.928 6.010 O1/14/03 1,808 .
1a018 Tennesaee Valley Authoiity 09/09/9'/ 1,000,669.90 1,000,000.00 980,000.00 5.950 5.836 5.91"l 09/15/98 226
__"'"_'__'"'__ '__""'_"'___ _"_'"___""_"' _""_ ____"' _"_"
SUBTOTALS and AVERAGES 19,984,'119.51 20,019,68'1.50
20,000,000.00 6.014 6.098 B00
TREASURY SECURITIES - COUPON
16034 Uni[ed States Treasury OS/31/96 1,999,696.]9 2,000,000.00 2,003,']50.00 6.000 5.960 6.050 OS/31/98 119
16035 United States Treasuzy OS/31/96 1,99'],019.81 2,000,000.00 1,999,3'/5.00 5.125 6.041 6.125 03/31/98 58
16036 llnited States Treaeuxy 06/26/96 2,993,085.9a 3,000,000.00 3,00'l,500.00 5.0'/5 6.252 6.338 OB/15/98 195
1603'/ Uni[ed 5[atea Treasury 06/26/96 2,9"/1,033.15 3,000,000.00 2,994,395.00 5.125 6.314 6.402 11/30/98 302 .
16042 United 5[a[ee Treasury 09/13/96 1,998,559.45 2,000,000.00 1,998,'/50.00 5.125 6.068 6.152 02/2B/9B 2'!
16045 United States Treasury 09/OS/96 1,99'/,998.92 2,000,000.00 2,OOB,125.00 6.125 6.270 6.358 OB/31/98 211
16049 United States Treasusy OS/O1/97 2,002,710.62 2,000,000.00 2,023,750.00 6.375 6.171 6.257 04/30/99 453
16046 United States Treasuzy 03/21/9'l 1,9'/6,601.'!9 2,000,000.00 1,992,500.00 5.000 6.124 6.209 02/15/99 3'/9
_'________"" "__'___'__'___ '_____"______ __'___ ______ '""'__
SUBTOTALS and AVERAGES 1'/,936,214.4] 18,028,125.00
18,000,000.00 6.165 6.251 221
"____""_'_____"'_""'______'_'_____'______________"__________""'""'_"'
TOTAL INVESTMENTS and AVG. $ 62,341,'l06.90 62,489,052.99
62�451�222.92 5.'/96t S.B]]t 321
38
02/1�/1998 Ci[y General Fund PM - 3
INVESTMENT PORTFOLIO DETAILS - CASH �Iqy
. JANIJARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED -- YTM -- MATURITY DAYS
NVI�IDER ISSVER DATE BOOR VALUE FACE VALUE MARI(ET VALUE RATE 360 365 DATE TO MAT
_____________________"___"___________,____________________'"_'______________"_______________'____"""""'"__""_____"""""""_"_________
pA5SH00R/CH£CKING ACCOUNPS
13000 City Main ACcount - 6ofA 0.00 0.000 0.000 0.000
. 13002 Bavk of America - Savinys 0.00 . 2.000 1.973 2.000 �
13006 Ci[y Main Account - UBC -896,491.34 .0.000 0.000 0:000 �
SUBTOTALS and AVERAGES � -896,491.34 0.000 0.000 �
ACCLued Intere9[ at PuiCha9e S,Bll.11 �
"_"'"'""____"'_'__'_____""'"__"__'___"__""'_'__""___""'_____________"____"
TOTAL CASA $ -B'70,680.23 �
TOTAL CASH and INVBSTMENTS $ 61,9]1,026.6'/
39
02/1�/1998 CITY ypAN TO RDA PM - 2
INVESTMENP PORTFOLIO pETAILS - INVESTMENTS CITY
SANVARY 31, 1998 ACCRUAL
INVESTMENT PUACHASE STATED -- YTM --- MATURITY DAYS
NUMBER ISSUER DATE HOOK VALUE FACE VALUE MARKET VALUE AATE 360 365 DATE 1Y1 MAT
CITY LOAN TO RIJA
12001 Redevelopment Agency-Loan 0'//01/95 19,000,000.00 19,000,000.00 19,000,000.00 5.538 5.462 5.538 0]/O1/O1 1,246
TOTAL INVESTMENTS and AVG. 5 19,000,000.00 19,000,000.00
19,000,0�0.00 5.462$ 5.538$ 1,246
4�
�
02/1'!/1998 Office Complex PN - 2
' INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
JANOARY 31, 1998 ACCAUAL
INVESTMENT PURCHASE . STATED --- YTM --- MATURITY DAYS
NUMBER SSSUER DATE BOOK VALUE FACE VALUE MARI(ET VALUE RATE 360 365 DATE TO MAT
PASSHOOK/CHECKING ACCOLJNTS
13012 Offire Complex (Sweep) - UB 4'/2,823.49 492,823.49 472,823.47 4.670 4.606 4.6"!0 1
TOTAL INVESTMENTS and AVG. $ 472,823.4'] 402,823.4]
' 4"l2,823.9'/ . 4.606& 4.6'/0& 1
41
s
. 0]/19/1998 Office Complex Pm - 3
INVESTMENT PORTFOLIO DETAILS - CASH CITY
SANOARY 31, 199B ACCRUAL
INVESTMENT PURCNASE STATED --- YTM --- MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARItET VALUE RATE 360 365 DATE TO MAT
PASSBOOIL/CNECAING ACCOUNTS
13003 Office Complex Checking - HofA 6.65 �.000 0.000 0.000
13004 Office Complex Trus[ - HofA A.02 0.000 O.OoO 0.000
13008 Office Complex Checking - UBC 51,287.77 , 0.000 0.000 0.000
13011 Office Complex Trvet - UBC 23,990.41 0.000 0.000 0.000
SVBTOTALS and AVERAGES "l5,2B4.85 0.000 0.000
____'__________________""_"'_"______""_"________"_______________________________'__
TOTAL CASH and INVESTMENTS $ 548,108.32
42
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;2/1]/1998 PD Redevelopment AgenCy PM - 1
PORTFOLIO MpSTER SVMMARY RDA
JANUN21' 31, 1998 1+CCRUAL
. AVERAGE "--YIELD TO MATURII'1---
PERCENI' OF AVERAGE DAYS TO 360 365
INVESTMENTS BOOK VAL[7E PORTFOLIO T&RM MATURIT'Y EQUIVALENT EQUIVALENT
'_____________'_______________"""______"______________'_"_'_'____""___"_____'""""_______""___'___"___'__"'__'______________
Local Agency Inveetment Funde........... .....$ 19,360,'109.09 9.26 1 1 5.665 5.'/44
Federal Agency Ieeuee - Coupon...............$ 2,999,604.85 1.61 610 . 2]4 5.960 6.043
Fedezal Agency Ieeuee - Diecount.........:...$ 4,869,'/52.'/8 3.14 1B1 5'/ 5.530 5.606
Tzeasuiy Secuiitiee - CoupOn.................$ 6,421,659.09 4.14 864 559 5.969 5.844
' Treasury Securitiee - Discount...............5 5,920,113.09 3.82 2,339 . 2,329 5.454 5.529
State & Local Govt Seriea....................$ 8,24"l,483.00 5.32 '1'14 582 0.000 0.000
State a Local Govt Seriea - Coupon...........5 66,429,662.00 42.85 1,728 1,536 5.760 5.840
Fideli[y Treaeury Poo1....... ................5 46,293,225.00 29.86 1 1 5.409 S.a79
TOTAL INVESTMENTS and AV6RAGES.............$ 155,03'/,709.'/0 100.00& 922 00'] 5.323t 5.39'/&
CASH
Paeebook/Checking - No Yield Totale..........$ 4],021.62 0.000 0.000
(not included in yield calculationa) �
Accrued Interea[ a[ Purchase........... .. . ...5 62,30'/.99
_'_"_"___________'____________'________'__""______"'____________""'___
TOTAL CASH and PVRCHASE INTEREST.............$ 1�09,329.39
TOTAL CASH and INVESTMENTS.................$ 155,146,539.09 .
MONTH ENDING PISCAL
TOTAL EPRNINGS JAHOARY 31 YEAR TO DATE
CUlzent YeaY $ 708,231.79 5 4,63fi,355.01
� AVERAGE DAILY HALANCE S 154,5'!'/,160.59 $ 145,313,985.1']
EFFECTIVE RA1'E OF RETURN 5.39} 5.42$
The inveeCment portfolio of the P.n. Redevelopment Agency compllea with ita
Paul 5. Gibson Inveetment Policy and the California Government Code eectione pertaining [o the
Tied9uiei inveStmen[ of local agency funde. Pending any future ac[ions by the Governing
Eoard of the agency or any unforeeeen ca[aetrophy, the Redevelopment agency hae
' � adequate caeh flow Co meet ite expendi[ure requiremente for the nex[ aix monthe.
DATE Mazket value9 are from Firet Txuat 6 IDC Datafeed pricing eervice.
1
,02/1]/1998 PD Redevelopment Agency PM - 1
INVESTMENf KIRTFOLIO DETAILS - IN'JESTMENTS RDA
JNiOARY 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE STATED --- YTM --- MATURITY DAYS
NIM.OfiR ISSIIER BALANCE DATE HOOK VALUE FACE VALllE MARI(ET VALUE RATE 360 365 DATE TO MAT
I/JCAL AGENCY INVESTMENT FVNDS
21000 Local Agency Inveatment Fun 14,360,']09.09 14,360,'l09.09 14,360,"l09.09 5.'/44 5.665 5.']44 1
AVEftAGES 14,2'14,333.51 ,
FEO6RAI. AGENCY ISSUES - COUPON
15008 R Federal Faim Credit 09/13/96 499,609.85 500,000.00 501,250.00 6.125 6.312 6.400 0'//09/9B 158
15010 R Federal Home Loan Mortgage 10/22/96 1,000,000.00 1,000,000.00 999,3'15.00 5.800 6.123 6.208 03/19/99 911
15020 Federal Na[ional Mortgage A 10/03/9'! 1,000,000.00 1,000,000.00 1,000,625.00 5.630 5.621 5.699 OB/14/98 194
""'_________'_' '__"""_____ _"""'_'"""__ _'_____'_'__" __'__' ___'__ "'_"_
SUBTOTALS and AVERAGES 4,435,042.71 2,499,604.05 2,501,250.00
� 2,500,000.00 5.960 6.093 2'74
FEDERAL AGENCY ISSUES - DISCOUN'C
16013 E Federal National Mortgage A 09/30/97 4,864,752.78 5,000,000.00 4,955,999.76 5.380 5.530 S.fi06 03/30/98 57
AVERAGES 4,864,752.78
1REASVAY SECVRITIES - COUPON
1�033 R Unites Statee TYeaeury 00/O1/95 106,566.90 304,000.00 108,25'l.SO 9.950 6.098 6.182 11/30/99 669 :
1]069 Unitee Statea Treaeury OS/24/96 2,000,402.10 2,000,000.00 2,002,500.00 6.125 5.905 5.98] 03/31/98 50
17083 Unites StaCee Treasury 03/21/9] 1,9']6,601."!9 2,000,000.00 1,992,500.00 5.000 6.124 6.209 02/15/99 3'!9
1"/OB5 Unitea Sta[es Treasury O1/22/98 143,950.']4 149,000.00 143,910.00 5.125 5.397 5.4'/2 02/28/98 27
1"lOB6 Unitee Statee Treaeury O1/22/98 14],514.2'] 148,000.00 14'/,445.00 4.'/50 5.256 5.329 OB/31/98 211
1'!OB'/ Uni[ee Sta[ee Tzeaeury O1/22/98 151,230.0'/ 151,000.00 151,1BB.']5 5.500 5.2']3 5.34'/ 02/28/99 392
1'lO80 Unitea Statee Treaeury O1/22/99 156,219.OB 155,000.00 156,210.94 5.875 5.2']4 5.34'] OB/31/99 5'/6
1')089 Unites S[atee Tzeaeury O1/22/98 165,52'/.08 160,000.00 165,500.00 '/.125 5.266 5.339 02/29/00 '/58
1'/090 Unitea Statee Tzeasury O1/22/98 169,516.11 166,000.00 169,52'/.50 6.250 5.282 5.355 08/31/00 942
17091 Uniiea Statea Treaeury O1/22/98 1']1,23'1.42 1')0,000.00 1'/1,221.88 5.625 5.289 5.363 02/28/O1 1,123
1'/092 Unites States Treaeury O1/22/98 182,195.10 176,000.00 182,2'/0.00 6.500 5.329 5.403 OB/31/O1 1,30'/
1'/093 Unitee Statea Treaeuzy O1/22/98 186,33'/.5"/ 181,000.00 1B6,4B6.56 6.250 5.35'! 5.431 02/28/02 1,488
1'l095 Unites States Tieaeuxy O1/22/9B 936,520.21 432,'/00.00 436,568.'!9 6.250 5.35� 5.432 08/31/02 1,6'!2
17096 Unitea Statea Treasury O1/22/9B 418,448.05 405,200.00 418,494.61 6.250 5.357 5.432 08/31/02 1,672
1"l097 Unitea Statea TYeasury O1/22/9B 9,39'/.52 9,100.00 9,398.5'/ 6.250 5.35'/ 5.43] 08/31/02 1,6'/2
"'_"_____________ ______________ ______________ ______________ ______ ______ ""_""
SVBTOTALS and AVERAGES 5,804,466.61 ' 6,421,659.09 6,441,480.10
6,392,000.00 5.764 5.844 554
TREF�SURY SECURITIES - DISCOUNT �
18023 Unitee Statea Tzeasuxy O1/22/98 150,'/99.82 198,000.00 150,9'/5.00 4.'!04 5.3�4 5.449 02/15/03 1,840
18025 UR1.tC9 Statee Treasury O1/22/98 130,16"l.96 181,000.00 130,150.31 4.fi28 5.434 5.509 02/15/04 2,205
1802'/ Unitea Statea Tieasury O1/22/98 4,989,6"/1.22 ],143,000.00 5,000,100.00 4.590 5.464 5.590 OB/15/04 2,36'/
18028 Unites Statee Treasury O1/22/98 394,2'/9.4'/ 532,400.00 399,959.53 4.662 5.395 5.4]0 OB/15/03 2,021
18029 Unitee Statee Treaeury O1/22/9B 255,700.42 344,600.�0 255,64�.60 4.662 5.395 5.470 OB/15/03 2,021
___________"'__' "_'""'_'""' """"""'_'_' ____________'_ ______ '_"_' """"
� SUHTOTALS and AVfiRAGES 1,909,']14.16 5,920,113.89 5,931,825.49
8,399,000.00 5.454 5.529 2,329
2
, 02/19/1998 ' PD Aedevelopmmt A9ency PM - 3
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS RDA
JANOpRy 31, 1998 ACCRUAL
INVESTMENT AVERAGE PVRCHASE STATED --- YTM --- MATURITY DAYS
NOFIDER ISSUER BALANCE DATE HOOK VALOE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
STA1'E & LOCAL GOVT SERIES
19005 State 6 Local Govt Ser Secu 0'//24/9'/ 372,455.00 3"/2,455.00 3']2,455.00 0.000 0.000 0.000 03/OS/9B 32
19006 �State & Local Govt Ser Secu 0'//24/9'/ 1,592,8'11.00 1,542,8']1.00 1,542,8'J1.00 0.000 0.000 0.000 09/O1/9B 59
1900'/ State & Local Govt Ser Secu 0'J/29/9'/ 361,813.00 361,813.00 361,813.00 0.000 0.000 0.000 04/OB/98 66
19008 ' State 6 Local Govt Ser Secu 0'//24/9'/ 239,'/15.00 239,"l15.00 239,'/15.00 0.000 0.000 0.000 10/03/98 242
19009 S[ate fi IACal Govt Ser SeCu 0'//29/9'/ 12,65].00 12,657.00 12,659.00 0.000 0.000 0.000 03/25/99 417
19010" State & Local Govt Ser Secu 0"//29/9] 1,581,41'/.00 1,581,41"/.00 1,581,41'/.00 0.000 0.000 0.000 04/O1/99 424
19011 Sta[e � i.ocal Govt Ser Secu 07/2a/97 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/16/99 592
19012 State k Local Govt Ser Secu 0'1/24/97 1'1'1,791.00 1�'1,191.00 1'/7,191.00 0.000 0.000 0.000 10/O1/99 60'/ -
19013 State k Local GovC Ser Secv 07/24/97 12,657.00 12,657.00 12,657.00 a.000 0.000 0.000 03/09/00 767
19014 - State 6 Local Govt Ser Secu 0'//24/9'/ 1,622,191.00 1,622,191.00 1,622,191.00 0.000 0.000 0.000 04/O1/00 '/90
19015 State s Local Govt Ser Secu 07/24/97 361,813.00 361,813.00 361,813.00 0.000 0.000 0.000 04/12/00 BO1
19016 State & Local Govt Ser Secu 0"//24/9'/ 158,2'/5.00 158,2'l5.00 158.275.00 0.000 0.000 0.000 10/OS/00 977
1901'] State & Local Govt Ser Secu Ol/24/9] 12,fi56.00 12,656.00 12,656.00 0.000 0.000 0.000 03/29/O1 1,152
19018 S[ate & Local Govt Sez Secu 0'//24/9� 1,664,9'!'/.00 1,664,977.00 1,664,9'1'1.00 0.000 0.000 0.000 04/O1/01 1,155
19019 State & Local Govt Sez Secu 0�/29/9� 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/20/O3 1,32�
19020 State & LOCal Govt Sez Secu 0'//29/9'/ 88,82'/.00 88,82].00 BB,B2'/.00 0.000 0.000 0.000 10/O1/O1 1,338
19021 � 5[a[e s Local Govt Ser Secu 0]/2a/9� 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 03/14/02 1,502 .
_"______________ ___'__'"'_""'_ __"_""_'___ _'_____'_'_"_ _'"_" '"_""_ ""__
SUBTOTALS and AVERAGES 8,603,117.32 0,247,483.00 8,247,483.00
8,24'/,483.00 0.000 0.000 - 583
STATE 6 IACAL GOVT SERIES - COVPON
19500 State 6 Local Govt Ser Secu 0'//24/9� 5,686,82�.00 5,686,82'/.00 5,686,82'1.00 3.165 3.322 3.165 04/O1/02 1,520
19501 State & Local GOv[ SeZ Secu 07/24/97 60,742,835.00 60,742,835.00 60,'/42,835.00 6.090 6.007 6.090 04/18/02 1,53'/
__'_'_________'__ ____"'"""'" """"""'"" '""__"""'"'" ""'" __'_'_ '""'"
SUBTOTALS and AVERAGES 66,429,662.00 66,429,662.00 66,a29,662.00 �
66,429,662.00 5.]60 5.840 1,536
FIDELITY ZREASURY POOL
13002 I Fidelity Inetitutional Caeh 9,050,255.00 9,058,255.00 9,058,255.00 5.480 5.405 5.480 1
13003 R FideliCy Inetitutiona] Cash '/60,942.00 ]60,942.00 '/60,992.00 5.480 5.405 5.480 1
11004 E Fideli[y Inatitutional Caeh 11,903,237.00 11,903,237.00 11,903,237.00 5.480 5.905 5.480 1
11005 I Fideli[y Inatitutional Cash 1,580,521.00 1,580,521.00 1,580,521.00 5.4'!0 5.395 5.4'/0 � 1
11006 R Fidelity Inetitutional Caeh 25,396.00 25,396.00 25,396.00 5.480 5.405 5.400� 1
11008 R Fidelity Institutional Caeh 1,646,094.00 1,646,094.00 1,64fi,094.00 5.980 5.405 5.480 1
13009 I Fidelity Inati[utional Cash 1,792,726.00 1,792,726.00 1,']92,726.00 5.480 5.405 5.480 1
1]O10 I Fidelity Institutional Cash 8,'/74,241.00 B,'/'/9,241.00 8,'/'/4,241.00 5.480 5.405 5.480 1
11011 R Fidelity InetiCutional Caeh 1,645,"/35.00 1,645,'/35.00 1,695,'/35.00 5.480 5.405 5.480 1
11012 E Fidelity Institutional� Caah 0.00 0.00 0.00 5.210 5.139 5.210 1
11018 Fidelity Inetitu[Sonal Caeh 13,'/86.00 13,'l86.00 13,'/86.00 5.480 5.405 5.480 1
11019 Fidelity Insti[utional Caeh 0.00 0.00 0.00 5.360 5.28'I 5.360 1
11020 Fidelity Inetitutional Caeh 0.00 0.00 0.00 5.160 5.089 5.160 1
11021 Fidelity Inatitutional Caeh 0.00 0.00 0.00 5.360 5.28'/ 5.360 1
3
02/1�/1998 PD Redevelopment Agency � PD1 - <
� INVESTMENT PORTFOLIO DETAILS - INVESTMENTS RDA
� SANI]ARY 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE � STATED --- YTM --- MATURITY DAYS
NUDffiER ISSUER BALAI�ICE OATE B001C VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
"________________"'"'______________'"_"'_'____'"_________________________________"______________________________________'_"""""_
FIDELITY TR£ASURY POOL
11022 Fidelity Inetitutional Cash 449.00 499.00 999.00 5.4]0 5.395 5.4'!0 1
11023 Fidelity Institutional Caeh 1.00 1.00 1.00 5.440 5.365 5.990 1
, 11025 Fidelity Ina[itu[ional Caeh 0.00 0.00 0.00 5.360 5.28'1 5.360 1
11026 � Fidelity Inetitutional Caeh 0.00 ' 0.00 0.00 5.440 5.365 5.440 1
1102'/ E Fidelity Inetitutional Caeh 2,'/3'/.488.00 2,737,4BB.00 2,'/3'/,408.00 5.480 5.405 5.480 1
11028 Fidelity Inetitutiondl Caeh 119,96'/.00 119,96'/.00 119,96'].00 5.980 5.405 5.480 1
11029 FideliGy Institutional Caeh 323.00 323.00 323.00 5.480 5.405 5.480 � 1
11030 A Fidelity Inetitutional Caeh - 664,032.0� 664,'/32.00 664,732.00 5.480 5.405 5.480 1
11031 Fidelity InsCitu[ional Caeh 8.00 8.�0 8.00 5.360 5.287 5.360 1
11032 Fidelity Inetitu[ional Cash 0.00 0.00 0.00 5.150 5.0'/9 5.150 1
11037 Fidelity Ineti[u[ional Caeh 0.00 0.00 0.00 5.410 5.336 5.410 1
11038 Fidelity Institutional Caeh 109.00 109.00 109.00 5.480 5.405 5.480 1
11039 R Fidelity Inatitutional Cash 55,650.00 55,650.00 55,650.00 5.480 5.405 5.480 1
11040 Fidelity Inatitutional Caeh 528.00 528.00 528.00 5.480 5.405 5.480 1
11041 I Fideli[y Inatitutiolldl Caeh 100,395.00 100,395.00 100,395.00 5.480 5.405 5.480 1
11042 Fidelity Inatitutional Cash 12.00 12.00 12.00 5.260 5.188 5.260 1
11049 Fidelity InaCitutional Cash 32,455.00 32,455.00 32,455.00 5.480 5.405 5.480 1 �
11046 Fidelity Inetitutional Caeh 3,973.00 3,923.00 3,923.00 5.480 5.905 5.480 1
1104'/ Fideli[y Ina[itutional Cash 1,126,509.00 1,126,509.00 1,126,509.00 5.4']0 5.395 5.4'/0 1
11098 Fidelity Inetitu[ional Caeh 0.00 0.00 0.00 5.�20 5.148 5.220 1
11099 Fideli[y Inatitutional Caeh 34.00 34.00 39.00 5.480 5.405 5.480 1
11050 Fidelity Ivstitutional Caeh 42.00 42.00 42.00 5.480 5.405 5.480 1
11051 Fidelity Institutional Caeh 0.00 0.00 0.00 5.220 5.148 5.220 1
13052 Fideli[y Ine[itutional Cash 61.00 61.00 61.00 5.480 5.405 5.980 1
13053 Fidelity Institutional Cash 3,5"l1,4'lB.00 3,5'/l,4'/8.00 3,5'J1,4"/8.00 5.480 5.405 5.480 1
1105a Fidelity Institu[ional Cash 1,562.00 1,562.00 1,562.00 5.460 5.405 5.480 1
11055 Fidelity Inetitu[ional Caeh 221,544.00 221,544.00 221,544.00 5.480 5.905 5.480 1 �
31056 Fidelity Institu[ional Caeh 245,1]6.00 245,1'l6.00 245,1]6.00 5.480 5.405 5.480 1
1105'/ Fidelity Ivetitutional Caeh 35,315.00 35,315.00 35,315.00 5.4'10 5.395 5.4'!0 1
11050 Fidelity Inetitutional Cash 156,059.00 156,059.00 156,059.00 5.480 5.405 5.480 1
13060 Fidelity Inetitutional Caeh 10,4'l2.00 18,4'/2.00 18,4'/2.00 5.400 5.405 5.480 1
_"___'_"___"_____ ______________ _____________" ______________ _"__"' ____'" ""_"__
SUBTOTALS and AVERAGES 48,209,048.90 46,293,225.00 96,293,225.00
46,]93,225.00 5.404 5.479 1
'__'_____'_""_'_____________'_"_"'_""""'_'__"__'_______'___""__'___"___"'_'__'_'""__""
TOTAL INVESTMENTS and AVG. $ 155,037,709.]0 155,161,634.39
154�530,138.00 15'l,622,0'/9.09 5.323t 5.39]t 80�
��e�=�a�saa«�es������e�ea�e..�.�.........�..���'�"`==��'m��a�e==»���a��ea� �T� �������..�.............
4
02/19/1998 PD RedevelOpment Ag¢ncy PM - 5
INVESTTIENT' PORTFOLIO DETAILS - CASH �p
. JNIlIARy 31, 1998 ACCRUAL
INV&STMENT AVSRAGE PVRCNASE STATED --- YTM --- MAIRIRITY DAYS
MIMBER ISSUER eALAHCE OATE BOOR VALUE FACE VALUE MARKET VALUE RATE 360 365 �ATE TO MAT
_________""_"_'_"'__'_______"________""__'_'_'_'_____"'__'_'_____'__'_______"_"_'___"____"'__________"__'__'_'__""""""
YASSBOOK/CHECKING
25002 H of A - Self Help Checking 46,994.'l'! 0.000 0.000 0.000
. AVERAGES 9'I,022.59 .
Accrued Intereet a[ Purchaee 62,30'/.'/'1 �
____'__"'""""'_"""""__'"""___"_'__""___'____'___"""_"___'___'_'_________
TOTAL CASH 5 109,329.39
TOTAL CASH and INVE5IMENTS $ 154,577,160.59 155,146,539.09 �
5
_02/1�/1998 PD Redevelopmen[ Agency PM - 6
YORTFOLIO'MASTER IN�STMENT ACTIVITY BY 'LYpE RDA
.TANUARY 1, 1998 - JNIIIARY 31, 1998 ACCRUAL
STATED TRANSACTION PURCHASES SALES/MATUAITIES
TYPE INVESTMENT p ISSUER RATE DATE OR DEPOSITS OR WITF�RAWALS BALANCE
_"______'___"'________"_""""'_"______"'_'_""_'_____"______________'"________'________'_____"'"_'""'_'________________"'___
IpCAL AGENCY INVESTMENT FUNDS (Monthly Summary)
21000 Local Agency Inveetment Fund 5.']44 191,260.22 14,360,'/09.09
PASSBOOK/CHSCRING (Monthly Summary) �
25002 H of A - Self Help Checking 0.000 0.00
CASH WITH TRUSTEE -FIRST TRUST (Monthly Su11m18ry7
26000 Cash with Truetee 0.000 O.Bfi
26001 Caeh wi[h Truatee 0.000
26002 Caeh with TYuetee 0.000 1.60
26003 Caeh with Truatee 0.000 0.10
26004 Caeh with Truatee 0.000 0.10
26005 Ca9h with Truetee 0.000 0.01
26006 Cash with Tzuatee 0.000
2600'/ Caeh wi[h Truatee 0.000 0.82 �
26008 Caeh with TYue[ee 0.000 1.20
26009 Caeh with TruaCee 0.000 0.59
26011 Caeh with Truetee 0.000
26013 � Cash with Truetee 0.000 0.42
SVBTOTALS and ENDING BALANCE 2.39 3.39 0.00
FEDERAL AGENCY ISSUES - COUPON
15019 Fedexal National Mortgage Aesc 5.600 O1/16/1998 9,000,000.00 2,499,604.85
PEDERAL AGENCY ISSUES - DISWUN'P .
9,864,]52.]B
TREASURY SECURITIES - COUPON �
1'10'l'/ Uni[ee Statee Treaeury 5.000 02/02/1998 1,000,000.00
1"/OBS Uni[es States Treaeuxy 5.125 O1/22/1998 143,932.50
17086 Unitea Statee Treaeury 4.]50 O1/22/1998 14'/,991.25
1'/08'/ UniGes Statee Treaeury 5.500 O1/22/1998 151,235.94
1'/OBB Unitee Statea Treaeury S.B'/5 01/22/1998 156,235.16
1]089 Unitee Sta[ee Treaeury 7.125 O1/22/1998 165,600.00
1'l090 Unitea Statee Treaeury 6.250 O1/22/199B 169,553.44
1v091 Unites Sta[ee Treaeuxy 5.625 01/22/1998 191,248.44
1']092 Unites Scatee Treaeury 6.500 OS/22/1998 182,292.50
6
0]/19/1998 PD Redevelopment Agency � ' �
PORTFOLIO MASTER I�STMSN'�' ACTIVITY BY TYPE RDA
JANUARY 1, 199B - JNIf1ARY 31, 1998 ACCRUAL
STATED .TRANSACTION PURCHASES SALBS/MATURITIES
TYPE INVESTMIIJT k ISSUER HATE DATE OR DEPOSITS OR WZT}mRAWALS HALANCE
_____________________________""_____'"_______"___"_____'_______________'___"____"___"________________'_"__"_____________'_"'__'_
1'/093 Vnitea Statee Treaeuzy 6.250 O1/22/1998 186,3'/3.44
1'/095 Unitea Statea Tzeaeury 6.250 O1/22/1998 436,602.8'/
1'1096 Unitee Statea Treaeury 6.250 O1/22/1998 418,52'/.28
1]09'/ Uni[es SCatea Treaeuiy . . � 6.250 O1/22/1998 9,399.30
SUB1'OTALS and ENDING BALANCE 2,338,442.12 . 1,000,0�0.00 6,421,659.09
TREASURY SECURII'IES - DISCOVNT
18023 Uni[ee States Treaeury C.709 O1/22/1998 150,799.82
18025 Unitea Statee Treaeury 4.628 O1/22/1998 130,167.96
1802� Unitee Statee Treaeury 4.590 O1/22/1998 4,989,671.22
18028 Unitee States Treaeury 4.662 O1/22/1998 394,279.9'/
18029 Unites States Treaeuiy 4.662 01/22/1998 255,200.42
SUB1'CITALS and ENDING BALANCE � 5,920,113.89 0.00 5,920,113.89
STATE 6 IACAL GOVT SERIES
19004 State S Local Govt Ser Secuiit 0.000 OS/29/1998 248,145.00
19025 State 5 Local Gov[ Ser Securit 0.000 O1/29/1998 - 145,593.00
SUBTOTALS and ENDSNG BAI.ANCE 0.00 393,�38.00 8,24"1,483.00
STAT6 & I/JCAL GOVT SERIES - COUPON
66,429,662.00
FIDELITY TREASVRY POOL (Monthly Su�mnary)
11002 I Fideli[y Inetitutional Caeh 5.980 38,749.00
11003 R Fideli[y Inetitutional Cash 5.980 3,26'/.00
11004 E Fidelity Inetitutional Ca9h 5.480 4�124�182.00 ,
11005 I Fidelity Inetitutional Caeh 5.4']0 �
13006 R Fidelity Inatitutional Cdah 5.480 �OB.00
11008 R Fidelity Inetitutional Cash 5.480 "/,06'/.00
11009 I Fidelity Inetitutional Caeh 5.980 '/,696.00
11010 I Fidelity InetiCutional Cash 5.480 39,582.00 445,654.00 ,
11011 R Fideli[y Inetitutional Caeh 5.460 '/,112.00
11012 E Fidelity Inetitutional Caeh 5.210
11018 Fidelity Inetitutional Caeh S.48o 114,306.00 100,520.00
11019 Fidelity Inatitutional Caeh 5.360 1'/.00
11020 Fidelity Ine[itutional Cash 5.160
11021 Fidelity InaCitutiondl Cash 5.360
7
� ^
.02/1'//1998 PD Redevelopment Agency PM - 8
PORTFOLIO MASTER INVESTMENT ACTIVITy HY TYPE �7+
JANUARY 1, 1998 - JANUARY 31, 1998 ACCRUAL
STATED TRANSACTION PURCHASES SALES/MATURITIES
TYPE INVESTMENT p ISSUER RATE DATE OR DEPOSITS OR WITFIDRAWALS BALANCE
11022 Fidelicy Inati[utional Caeh 5.4'JO
11023 Fidelity In9[itutional Caeh 5.440
11025 FideliCy InstitutiOna� Cdeh 5.360 ,
ll026 Fidelity Inetitutional Cash 5.490 . � �
1102'/ E Fidelity Zneti[utional Caeh 5.480 11,413.00
11028 Fidelity Inatitutional Caeh 5.480 119,899.00
11029 Fidelity InetitutlOndl Cd9h 5.480 19.00
11030 R FideliCy Inetitutional Caeh 5.480 2,854.00
11031 Fidelity Ivstitutional Caeh 5.360
71032 Fideli[y Inetitutional Ca9h 5.150
1103'! Fidelity Znetitutional Cash 5.410
11038 Fideli[y Inetitutional Cash 5.480 1.00
11039 R Fidelity Inetitutional Caeh 5.480 15,485.00
71040 Fidelity Inatitutional Cash 5.480 z.00
110n1 I eldelity Inetitutional Cash 5.48U 433.00
11042 Fidelity Inatitutional Caeh 5.260 �
11044 Fideli[y Znetitutional Cash 5.480 139.00
11046 Fidelity Inetitutional Caeh 5.480 19.00 �
1304'1 Fidelity Inetitutional Caeh 5.4'!0
11048 Fidelity Inatitutional Caeh 5.220
11049 Fidelity Inatitu[ional Ca9h 5.480 41.00 9,622.00
11050 Fidelity Inetitutional Caeh 5.980 3,583.00 834,455.00
11051 Fidelity Inatitutional Cash 5.220
11052 Fidelity Ingtitutional Caeh 5.400 23,243.00 5,514,119.00
11053 Fidelity Inetitutional Caeh 5.480 5'/0,568.00
13054 Fidelity Inetitutional Cash 5.480 6.00
11055 Fidelity Inetitutional Cash 5.480 221,407.00
11056 Fidelity Inatitutional Caah 5.480 6,4']2.00 1,065.00
11057 Fidelity IneGitutional Caeh 5.470
13058 Fidelity Inetitutional Cash 5.480 221,999.00 65,940.00
11060 Fidelity In9titutional Cd9h 5.480 18�472.00
SUBTOTALS and ENDING BALN7CE 5,558,11'/.00 6�9'/1,392.00 46,293�225.00
'NTALS 14,00'],935.62 12,365,133.39 155,03'/,209."!0
8
❑2/1�/1998 ' PM - 9
PD Redevelopment ngency xDA
INVESTMENT ACPIVITY SIIMMARY ACCRIIAL
SANOARY 199'/ through JANUARY 1998
YIELD TO MA1'l1ASTY MANAGED NUDIDER OF HVMBER OF AVERAGE
MON'PF[ NUPIDER OF TOTAL 360 365 POOL SECURITIES SECURITIES AV6RAGE DAYS TO
END YEAR SECURITIES INVESTED EQIIIV EQUIV RATE PURCHASED MATURED/SOLD TERM MATURITY
___"_______'"_________"___'"______________________________________________________________'_______'________________
Sanuazy 97 95 85,701,933:97 5.569 5.646 5.241 2 6 � 320 173 -
� Februaxy 97 93 80,869,552.07 5.546 5.623 5 107 0 3 332 168
March 97 91 70,533,057.43 5.516 5.592 5.218 1 3 341 194
April 9'1 9'1 80,5�5,386.'/9 S.SB2 5.660 5.220 2 2 36B 213
May 9� 95 78,585,626.60 5.616 5.694 5.309 0 9 361 198
June 9'/ 8'! 85,625,456.'/8 5.494 5.5]0 5.360 3 13 199 101
July 9'I 95 154,112,63'/.63 5.259 5.332 5.630 24 4 890 820
Auguet 9'1 95 153,'/63,6]9.63 5.2'/4 5.348 5.6]9 0 0 882 B00 :
Sep[embei 9] 91 199,291,9�0.28 i299 5.3'/2 5.707 1 5 900 809
OCCober 9'/ 95 152,975,170.39 5.288 5.362 5.680 4 9 8'/B '/"!1
November 9'/ 90 150,'/'/3,070.]9 5.291 5.364 5.680 0 5 B'!6 '/60
December 9'1 86 152,38],460.92 5.306 5.3"19 5.680 0 4 844 '!32
January 98 102 155,030,209.90 5.323 5.399 5."144 10 4 922 809
AVSRAG£5 93 $ 119,248,631.38 5.913t 5.488� 5.4918 4 4 623 504
9
�-02/1�/1998 � PM - 10
P� Redevelopment Agency RDA
� DISTRIBUTION OF INVESTMENTS ITY TYpE ACCRVAL
Jll7l7ARY 1997 through JANUARY 1998
MONTH _'"__"______________________________"______"____ TYPES OF INVESTMENTS _____"_""__________________"________"__""'"_____
END YEAR BCD SCD MID1 LAS PA1 PA2 PA3 MTN BAC C1�M FAC FAD TRC TRD NC1 MC2 LA1
Sanuary 9'l 0.1 22.'/ 0.5 '].2 6.'/ 39.9 22.9
February 9'l � , 0.1 22.8 ' 'l.'1 1.0 42.3 26.2
Mazch 9'/ 0.1 14.9 8.8 0.6 40.8 34.9
April 9'/ 0.1 13.0 23.2 3.'l 35.'/ 29.3
May 9'1 0.1 1'/.2 23.8 3.8 29.2 25.9
June 9'] 0.5 0.1 15.0 15.3 22.5 46.6
July 9] 0.3 8.4 _ 7.3 11.9 6.2 43.1 22.9
Auguet 9'/ 0.3 8.4 ].2 11.9 6.2 43.2 22.7
Septembez 9'1 B.� '!.9 3.3 8.2 6.2 44.5 21.'/
October 9'l 8.6 '/.9 3.2 ').t 6.1 43.4 23.4
November 9'l e.'l 6.'/ 3.2 6.'/ 6.0 44.1 24.6
DeCember 97 B.6 4.3 3.2 3.3 5.'] 43.6 31.3
,lanuary 98 9.3 1.6 3.1 4.1 3.8 5.3 42.9 29.9
'_'________"__"'_"_'____"__"___"_"___________"'______________"_'_"_'_"________'_"______"______'_""'_"_ .
AVERAGES O.lE O.Ok 12.BY O.Oi 9.9t 2.4k 20.36 0.3k 3.2k 23.4t ]].Sf
BCD - Certificatee of Deposit - Bank SCD - Certifica[ee of Deposit - S a L
t�l - Treaeury Securitiee - T-Hill LA5 - Local Agency Inveetment Fu[ide
PA1 - Paeebook/Checking PA2 - Caeh wi[h Truetee -Firet Truet
PA3 - Checking/Self Help Houaing Loane MTN - Medium Term Notee
BAC - Bankete Acceptancea COM - Coimnercial Papex - Diecount
FAC - Fedeial Agency Issues - Coupon FAD - Federal Agency Ieeuee - ➢iecount
TRC - xreasury Securitiee - Coupon TRD - Treaeuiy Securitiee - Dieeount
MC1 - State 6 Local Govt Series MC2 - SCate 6 Local Govt Series - Coupon
LA1 - Fidelity Trea9ury Pool
10
02/17/1998 PM - 11
PD Redevelopment A9en�y �p
INTEREST EARNZNGS SUMMARY ACCRVAL
JNdUARX 31� 1998
MONTH ENDING FISCAL
. JAN[IARY 31, 1998 YEAR TO DATE
CD/Coupon/Diecount Inveetmente:
Intereet Collec[ed $ 12],312.50 $ 1,9BB,846.89
. PLUS Accrued Intereat at End of Period 1,406,051.35 . 1,906,051.35
� LESS Accrued Inteieet at Begiming of Peaiod ( 1,120,670.13) ( 948,108.60) �
Intereat Earned during Period � $ 412,693.'/2 2,996,789.64
A17.7VSTED by Premiume and ➢iecounte 2,1OB.55 20•069 B�
ADJUSTED by CapiGal Gaine or Lo9eee 0.00 0.00
__________________ ____"____'_'______
Earninge during Petiod 419,802.2'/ $ 2,966,854.51 �
' Mortgage Hacked Securitiea:
Intereat Collected $ 0.00 5 0.00
PLUS ACCrued Intereet at End of PeYiod 0.00 0.00
LESS Accrued Interest at Beginning of Yeriod ( 0.00) ( 0.00) ,
____________'_____ __'__'__'_"'"____
Intereet Earned during Period S 0.00 0.00 �
�1DSUSTED by Premiuma and Diecounte 0.00 6 i v c 0 00
ADJVSTED by Capital Gains oi Loeeea 0.00 0.00
__________________ __________________
Earnings during Period 0.00 $ 0.00
Cash/Checking Accounte:
Interest Collected S 184,210.89 $ 1,954,498.84
PLUS Accrued Intereet at End of Peziod 168,005.65 168,005.65
LESS Accrued Intereat at Beginning of Period ( 58,989.02) . ( -46,996.01)
_"""'_"___"__ _"'___""'_""'____
Intereet 6arned during Period S 293,429.52 $ 1,669,500.50
TOTAL Interee[ Earned duting Peiiod $ '/06,123.24 $ 9,616,290.14
TOTAL Ajuetmenta from Premiuma and Diecounte $ 2,108.55 $ 20,064.8'!
TOTAL Capital Gaine oz Loeeee S 0.00 $ 0.00
___'""___'"'"__'_ __'"_'____'____"__
TOTAL Earninge during Period 5 708,231.'/9 S 4,636,355.01
11
02/17/1998 RDA $100 Millian Hond PM - 2
INVfiSTMENT PORTFOLIO DETAILS - I�STMENTS �A
SANUARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM -- MATVRITY DAYS
NUPIDER ISSUER DATE BOOK VALUE FACE VALUE MAR7(ET VALUE RATE 360 365 DATE TO MAT
___________'____'_______"_"'_____'__'""'_'_""______"_"__"'___'"'___"________""_'_______""_'_"__"______"________________
FEDERAL AGBNCY ISSUES - COVPON
15010 R Federal Home Loan Mortgage 10/22/96 1,000,000.00 1,000,000.00 999,3'/5.00 S.B00 6.123 6.208 03/19/99 411
FIDELITY TREASURY POOL � '
11010 I Fidelity Inetitutional Caeh B,"!'/4,291.00 8,'/'/4,241.00 8,']'l4,241.00 5.480 5.405 5.480 1
13011 R Fidelity Institu[ional Caeh. 1,645,'/35.00 1,645,']35.00 1,645,'l35.00 5.480 5.405 5.480 1
13012 E Fidelity In9[itutional Caeh 0.00 0.00 0.00 5.210 5.139 5.210 1
11018 Fidelity Inetitutional Caeh 13,786.00 13,786.00 � 13,786.00 5.980 5.405 5.480 1
1103'/ Fidelity Inetitutional Caeh 0.00 0.00 0.00 5.410 5.336 5.410 1
SVBTOTALS and AVERAGES 10,433,'/62.00 10,433,'l62.00
10,433,762.00 5.405 5.480 1
TOTAL SNVESTMENTS and AVG. 5 11,433,]62.00 11,933,13'/.00
1;,A33,'162.00 5.468t 5.544t 3�
12
- 02/1�/1998 RDA 5100 Million Bortd � - 3
INVESTMENT PORTFOLIO DETAILS - CASH RDA
JANOARY 31, 1998 ACCROAL
INVESTMENT pURCHASE � STATED --- YTM --- MATURITY DAYS
NUMB6R ISSllER DATE BOOK VALUE FACE VALUE MARKET VALUE W+TE 360 365 DATE '30 MAT
_'____""__'_______""___'___""_'______'__"___'_'____'__'_'____'_____"_____"'_"__'____'__'_`__"_"___'__'___"_______________"'"_"'
CASH WITH TRUSTEE -FIRST 1RUST
26000 Cash with Tiustee 1.B'/ 0.000 0.000 0.000
TOTAL CASH and INVESTMENTS $ 11,433,'163.8'/
' a���'��..�����:s�s::':'�.e��"�za"��e..`��......��.��»��s�����»>���'....�'�����'�
13
_ _
- 02/1�/1998 Rpp $1�.5 Million Bond � ' Z
INVESTMENT PORTFOLIO DETAILS - INVESTM&NTS �A
,TpNf1ARY 31, 1998 ACCRIIAL
INVESTMENT PllRCHASE STATED --- Y1T1 --- MATURII'Y DAYS
NVDIDER ISSUER DATE HOOK VALUE FACE VALUE MARKET VALlfE RA2'E 360 365 DATE TO MAT
_______"_____"_______________"___________________'_________________________'_________"_______"__________"_"_______'_______________
FIDELITY TREASURY POOL
S100B R Fidelity Inetitutional Caeh 1,646,099.00 1,646,094.00 1,646,094.00 5.480 5.905 5.480 1
11009 I Fidelity InetitutiOnal Caeh 1,'/92,726.00 1,'/92,726.00 1,792,'/26.00 5.480 5.405 5.480 1
11021 Fidelity Inetitutional Caeh 0.00 � 0.00 0.00_ 5.360 5.28'] 5.360 i �
11022 Fideli[y Institutional Caeh 449.00 949.00 449.00 5.4'/0 5.395 5.9'l0 1
11023 Fidelity Ine[itutional Caeh 1.00 1.00 1.00 5.490 5.365 5.440 1
___'__"""___' ""______"'__" ______"_______ ___"_" _'_'"' ___"_
SUBTOTALS and AVERAGES 3,439,270.00 3,439,270.00
3,439,2]0.00 5.405 5.480 1
__________�..�__""_"_..."""""""""""""""""""""_______""""""__""""""""_________"'"
TOTAL INVESTM5NT5 and AVG. S 3,439,270.00 3,439,270.00 �
3,�39,2'/0.00 5.405} 5.480k 1
as«�e�as�m�s�a��e�������s���������������.�_���.��es��s��=a�s�s�va__sas������������.
14
� 02/1'//1998 ' RDA 51'!.5 Million Hond � - 3
INVESTMENT PORTFOLIO DETAILS - CASH �A
JAN[SARY 31, 1998 ACCRVAL
INVESTMENT PURCHASE STATED --- YTM --- MA'NRITY DAYS
NUDIDEA ISSUER DATE BOOIt VALUE FACE VALUE MAR%ET VALVE RATE 360 365 DATE TO MAT
__""____________"_""_______________________'______""___"______"___"__________________________"_____'_____________________________
CASH WITH TRUSTEE -FIRST 1RUST
26005 Caeh with Tnl9tee 1.B6 0.000 0.000 0.000
TOTAL CASN and INVESTMENTS ' $ 3,439,2'/1.86 .
15
. 04/1�/1998 RpA S29 Mi111oR Bond ' � - �
, IMJESTMENT PORTFOLIO DETAILS - INVESTMENi'S RDA
� JANI1NtY 31, 1998 ACCRUAL
INVESTMENT �CHASE � STATEO --- YTM --- MATURITY DAYS
NUFIDER IS6UER OATE B00% VALUE FACE VALUE MAR1(ET VALUE RATE 360 365 DATE TO MAT
FEDERAL AGENCY ISSUES - DISCOUNT
16013 E Fedeial NdCional Moitgage A 09/30/90 4,864,052.98 5,000,000.00 4,955,999.96 5.380 5.530 5.606 03/30/9B 5'!
, FIDELII'1 TREASURY POOL
11002 I .Fidelity Inetitutional Caeh 9,058,255.00 '9,058,255.00 9,058,255.P0 5.480 5.405 5.480 1
13003 R Fidelity Inetitutional. Caeh . 760,942.00 760,942.00 760,942.00 5.480 5.905 5.480 1
11004 E Fidelity ins[itutional Caeh 11,903,23�.00 11,903,23'/.00 11,903,237.00 5.480 5.405 5.480 1
11039 Fidelity Institutional Caeh 0.00 0.00 0.00 5.360 5.287 5.360 � 1
11020 Fidelity Inati[utional Caeh . 0.00 0.00 0.00 5.160 5.089 5.160 1
71029 Fideli[y Inetitutional Caeh 323.00 323.00 323.00 5.480 5.405 5.480 1
_'__'____'___' _______'_'_'__ __'_______'_'_ _""' _'__" __"_'
SOBTOTALS and AVERAG&S 21,722,757.00 21,722,757.00
21,'l22,'!5'/.00 5.405 5.480 1
TOTAL INVESTMENTS and AVG. $ z6,58'/,509.]8 26,6'/8,'/56.76
26,'/22,'!5'l.00 5.428& 5.503k 11
16
02/1�/1998 �A $Z9 MilliOn HOnd pM - 3
�� ZNVESTMENT PORTFOLIO DETAILS - CASH R�A
. .TANUARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUPIDEA ISSUER DATE BOOK VALUE FACE VALUE MARI�T VALUE RATE 360 365 DATE TO MAT
CASH WITH TRUSTEE -FIRST TRUST
2600� Caeh with Truetee 1.'/0 0.000 0.000 0.000
TOTAL CASH and INVSSTMELTfS $ 26,58'/,511.48 �
' ��e�a�am�"""�ms�a�������.��saz==saa���e�`�"'..`.............'."...:_�..........
17
- 02/1�/1998 RDA 54 Million Hond PM - 2
INVESTMENT PORTFOLIO DETAILS - I�d�1E61MENTS RDA
JANIJARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- Y1T1 --- MATURITY DAYS
NUDIDER ISSUER DATE HOOK VALUE FACE VALOE MAR[�T VALUE RATE 360 365 DATE TO MAT
____________"__"______"'"_""___"'___""__'___"_""__________""'_____'""""__'_'_""_______"_________'"_""'"___'_""__""_'__"
TREASURY SECURITIES - COUPON
1']013 R Unitee Sta[es Treasury 0'//O1/95 106,566.90 104,000.00 lOB,25'/.50 '1.'I50 6.098 6.182 11/30/99 66�
FIDELITY TREASURY POOL � '
11005 I Fidelity InBtiCutional Caeh 1,SB0,523.00 1,580,521.00 1,580,521.00 5.9'/0 5.395 5.4'l0 1
11006 R Fidelity In9titutional Caeh 25,396.00 25,396.00 25,396.00 5.980 5.405 5.480 1
11025 Fidelity Inatitutional Cash 0.00 0.00 0.00 5.360 5.28'/ 5.360 1
13026 Fidelity Inatitutional Caeh 0.00 0.00 � 0.00 5.940 5.365 5.440 1
1102'] E Fidelity Inatitutional Cash 2,']3'l,9BB.00 2,'/3'/,488.00 2,'/3'/,488.00 5.480 5.405 5�.480 1
11028 FideliCy Inetitutional Caeh 119,96'1.00 119,96'/.00 119,96'/.00 5.990 5.405 S.a80 1
____"________ ______________ ____________'_ '"_"_ __"'_ ______
SUBTOTALS and AVERAGBS 4,463,372.00 4,463,3v2.00
4,463,372.00 5.901 5.4'/6 1
TOTAL INVESTMEMTS and AVG. S 4,569,938.90 4,571,629.50
4,56'I,3'/2.00 5.418f 5.493& 1'I
.:.��:..�..................a::=e:_::z�`::::a:....an:m..ve........�........'......... .
18
� 07/1]/1998 RDA $4 Million Hond PD1 - 3
� INVESTMENT PORTFOLIO DETAILS - CASH RDA
JNIOARY 31, 1998 ACCRUAL
INVESTMENT P11kCHA56 � STATED --- YTM --- MATURITY DAYS
NUPID6R ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
__________________________________________"_____________"____________'_______"____________'_______________________________________
CASH WITH TRUSTEE -FIRST TRUST
26003 Cash with Truetee 2.18 0.000 0.000 0.000
TOTAL CASH and INVESTMENTS S 4,569,991.08
19
� 02/1'1/1998 1�ow Mod Set-aeide ReEunding PM - 2
INVESTMENT PORTFOLIO DETAILS - INVESTMENI'S RDA
,Tp[NAAY 31, 1998 ACCRUAL
j�STMENT PURCHASE STATED --- YTM --- MATURITY DAYS
tdOMBEA ISSUER DATE HOOX VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
FIDELITY TREASUAY POOL
11030 R Fidelity Inetitutional Caeh 664,'/32.00 664,"l32.00 664,'/32.00 5.900 5.405 5.480 1
11031 Fidelity Inetitutional Caeh 8.00 8.00 8.00 5.360 5.28'/ 5.360 1
11032 Fidelity Ina[itutional Caeh 0.00 � 0.00 0.00 5.150 5.0'19 5.150 1
11040 Fidelity Inatitutional Caeh 528.00 538.0� 528.00 5.480 5.405 5.480 1
_______"_____ __'___'_'_'__' '_""""'"_""_ "__"'_ ___'__ '_____
SUBTOTALS and AVERAGES 665,26B.00 . 665,268.00
665.268.00 5.405 5.480 1
__""_______'_____"_""'__"_"__""'_"__""'_"'"'_________"____'________"_""'
TOTAL INVESTMENTS and AVG. 5 665,268.00 665,268.00
665,768.00 5.4057 5.4808 ' 1
�=�a�seaasa�0:..�.e..."'.......""""""".....:.�.�..as�.�""'...aa.�a.�s'e"'
2�
.02/1�/1998 ' Low Mod Set-aeide Refunding � - 3
INVESTMENT PORTFOLIO DBTAILS - CASH RDA
SANf1AAY 31, 1998 ACCRUAL
INVESTMENT PORCHASE STATED -- YTM --- MATVRITY DAYS
NUI�6R ISSUER OATE BOOR VALUE FACE VALUE MARICET VALUE RAT£ 360 365 DATE TO MAT
CASH WITH TRUSTEE -FIRST 1RUST
26009 Cash with Trus[ee 1.93 0.000 0.000 0.000
� ___'_"_""'"_"'""'""""__'"'"'_'__"'_"'"__'"""'"_"_"'_"_'______________'__"__'_
TOTAL CASR and INVESTMENTS ' $ 665,269.93 .
21
: 02/1�/1998 Pio� �ea 1-199] refunding � PM - 2
INVESTMENT PORTFOLIO DETAILS - TN7ESTMENTS RDA
� JANUARY 31, 1998 ACCRUAL
INVESTMENT PItRCHASE � STATED --- YTM --- MATURITY DAYS
NUN�ER ISSUER DATE BOOK VALUE FACE VALIIE MARKET VALVE RATE 360 365 DATE TO MAT
STATE & IACAL GOVT SERIES
19005 State & Local Govt Ser Secu 0'!/24/9'1 372,955.00 3'/2,455.00 3'l2,455.00 0.000 0.000 0.000 03/OS/98 32
19006 State & LOcal Govt Ser SeCU 0]/24/97 1,542,8'/1.00 1,542,871.00 1,542,871.00 0.000 0.000 0.000 04/O1/98 59
. 19007 StaGe & LOCal Govt Sei SeCu 07/24/97 361,813.00 361,813.00 361,813.00 0.000 0.000 0.000 04/OB/98 66
19008 State & LOCal Govt Ser SeCu 0'//24/97 239,715.00 ' 239,'l15.00 239,]15.00 0.000 0.000 0.000 SO/O1/98 242
19009 State 6 Local Govt Ser Secu 0'J/24/9'J 12,65'/.00 12,65'l.00 12,65'I.00 0.000 0.000 0.000 03/25/99 al'/
19010 S[ate 6 Local Govt Ser Secu 0'//24/9'1 1,SB1,41'/.00 1,581,417.00 1,581,41'/.00 0.000 0.000 0.000 04/O1/99 424
19011 State s Local Gov[ Ser Secu 0'!/24/9'/ 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/16/99 592
19012 5[ate & Local Govt Ser Secu 0']/24/9'l 1'1'1,191.00 1�],191.00 1'!'),191.00 0.000 0.000 0.000 10/O1/99 60"!
19013 5[a[e & Local Govt Ser Secu 07/24/9v 12,657.00 12,65�.00 12,65'1.00 0.000 0.000 0.000 03/09/00 '!6'/
19014 S[ate & Local Govt Ser Secu 0'//24/9] 1,622,191.00 1,622,191.00 1,622,191.00 0.000 0.000 0.000 04/O1/00 '/90
19015 State 6 Local Govt Ser Secu 07/24/9� 361,813.00 361,813.00 361,B13.00 0.000 0.000 0.000 04/12/00 BO1
19016 Sta[e 6 LOCal GOv[ Ser SecU 0]/24/97 158,2'/5.00 158,2]5.00 158,275.00 0.000 0.000 0.000 10/OS/00 97'!
19017 State 6 Local Govt Ser Secu 07/24/97 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 03/29/O1 1,152
19018 Sta[e & Local Govt Ser Secu 09/24/9'I 1,664,90].00 1,664,999.00 1,664,999.00 0.000 0.000 0.000 Oa/O1/O1 1,155
19019 State � Local Govt Ser Secu 07/24/97 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/20/O1 1,327
19020 State fi Local Govt Sez Secu 0'//24/9] BB,B2'/.00 88,82�.00 BB,B2'].00 0.000 0.000 0.000 10/OS/O1 1,338
19021 State 6 LOCal GOVt Sei SeCu 07/24/97 12,fi56.00 12,656.00 12,656.00 0.000 0.000 0.000 03/14/02 1,502 :
SUBTOTALS and AVERAGES 8,24'/,483.00 8,24'1,483.00
9,29'/,983.00 0.000 0.000 582
STATE 6 IACAL GOVT SEAIES - COVPON
19500 StaGe 5. Local GovG Ser Secu 09/24/90 5,686,829.00 5,686,029.00 5,686,82'1.00 3.165 3.122 3.165 04/O1/02 1,520
19501 SLaCe k Local Govt Ser Secu 0'!/24/9'l 60,'/92,835.00 60,'/42,835.00 60,'/42,835.00 6.09U 6.00'/ 6.090 04/18/02 1,537
SUBTOTALS and AVERAGES 66,929,662.00 66,429,662.00
66,429,662.00 5.'/60 5.890 1,536 .
FIDELITY TREASURY POOL
11056 Fidelity Inetitutional Caeh 245,1'/6.00 245,176.00 245,1'J6.00 5.480 5.405 5.480 1
1105'/ Fidelity Inatitutional Caeh 35,315.00 35,315.00 35,315.00 5.4'/0 5.395 5.4"!0 1
"__"_""___ ""'"'__'__'_'" _'___________' ___"' "'__' ______
SVBTOTALS and AVERAGES 280,491.00 280,491.00
280,491.00 5.904 5.479 1
__'___'________"'_________'______'_"'_"_'_____'_____'__________"____"""'_
TOTAL INVESTMENTS and AVG. $ �9,959,636.Otl '/4,957,636.00
'/4,957,636.00 5.125t 5.196t 1,425
_a����m��s���s...�...��������s�a�a��m»�'��e��e���as������....'�'���.'�'�.'.........
22
02/1�/1998 Proj Area 1-199� refunding PM - 3
INy6STM6N1' PORTFOLIO DETAILS - CASH [tpA
� TAN[JARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM --- MA'1'URITY DAYS
NUt�ER ISSUER DATE BOOR VALUE FACE VALUE MARRET VALUE RATE 360 365 DATE TO MAT
CASH WITH TRVSTEE -FIAST TRUST
26011 Cdah with Truetee - 3.74 0.000 0.000 0.000
. '_"____'___'________""'"'"'__'____"_"_'_________'___"_'____'____"_'___'_"_"
TOTAL CASH and INVESTMENTS $ 74,957,'639.74 '
23
, 02/1�/1998 1996 Deaert Roae Seriee A PM - 2
INVESTMENT PpRTFOLIO DETAILS - INVESTMEN'f5 R�A
JANIJAAY 31, 1998 ACCAVAL
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUt�ER ISSUER DATE HOOR VALUE FACE VALVE MARX&T VALUE RATE 360 365 DATE TO MAT
FIDELSTY TREASVRY POOL
11046 Fidelity Inetitutional Cash 3,923.00 3,923.00 3,923.00 5.480 5.405 5.480 1
1104] Fidelity Institu[ional Caeh 1,126,509.00 1,126,509.00 1,126,509.00 5.4'!0 5.395 5.4'/0 1
11098 .Fidelity InsCitutional Cash 0.00 � 0.0� 0.00 5.220 5.148 5.220 1
11053 Fidelity Inetitutional Ca9h 3,5"/1,4']8.00 3,571,978.00 3,571,478.00 5.480 5.905 5.480 1
11054 Fidelity Inetitutional Caeh. 1,562.00 1,562.00 1,562.00 5.480 5.405 5.480 1
___"'_'_"____ ______________ __'___________ __'___ _'__'_ __""'
SUBTOTALS and AVERAGES 9,903,492.00 �4,003,402.00
4,]03,6']2.00 5.403 5.478 1
TOTAL INV&STMENTS and AVG. $ 4,'l03,472.00 4,703,472.00
4,]03,4]2.00 5.403t 5.4'/BR 1
_:_..:::...................................as................Y��:..:.....«..........
24
- 02/10/1998 1996 �eeert Roee Seriee A PM - 3
INVESTMENI' PORTFOLIO DETAILS - CASH 3iDA
SANUARY 31, 1990 ACCRUAL
SN�ES'1'MEN1' PURCHASE � STATED --- y'�'M --- MATVAITY DAYS
TIUMBER ISSUER DATE BOOR VALUE FACE VALUE MpR](gT VALUE RATE 360 365 DATE 1D MAT
_'_____'__'__________'__'__"_"'___'"_______'_'____'______'__"__""'_________"'_'_'___'"__"__""_'________'_""__'_"'_"________'
CASH WITH 1RUSTEE -FIRST 1RUST
26008 Caeh with Ttuetee 4.84 0.000 0.000 0.000
TOTAL CASH and INVE5IMENTS $ 9.703,4'16.84
� ��'��...�...�.........�.��:...«��e��..�'��'��������a���'�'���""�`a"".«s����...
25
- 02/1�/1998 1996 Deaer[ Rose Seriee B PM - 2
INyESTMENT PORTFOLIO DETAILS - I�STMENTS ADA
JAMIARY 31, 1998 ACCRUAL
INVESTMENT Fi1RCHASE STATED --- YTM --- NJaTURI1Y DAYS
NUDffiER ISSUER DATE BOOK VALUE FACE VALUE MARI(ET VALUE RATE 360 365 DATE TO MAT
FIDELITY TREASURY POOL
11049 Fidelity Inetitutioval Caeh 39.00 34.00 34.00 5.480 5.405 5.480 1
11050 Fidelity IRetitutional Caeh 42.00 42.00 42.00 5.480 5.405 5.480 1
11051 Fidelity Inetitutional Caeh 0.00 � 0.00 0.00, 5.220 5.198 5.220 . 1�
11052 Fidelity Inatitutiox�al Caah 61.00 61.00 61.00 5.480 5.405 5.480 1
________'_""' "_____________ ______________ ______ ______ ""___'
SUBTOTALS and AVERAGES 13'/.00 13"J.00
137.00 5.405 5.480 1
_'_____"'_"_'"_'"'________'___'__"'__'__________________'__'_______________"_
� TOTAL INVESTMENTS and AVG. $ 13'/.00 137.00
137.00 5.405& 5.4809 1
"".""""""...........""""'."'.""""".""'."""""""'."""...
26
. 02/1]/1998 ' 1956 Deeert Roee Seriee B � - 3
INVESTMEN7' PORTFOLIO OETAILS - CASH R➢A
SANUARY 31, 1998 ACCRUAL
F�STMENT PURCHASE STA1'ED --- YTM --- MATVRITY DAYS
NUFIDER ISSUER DATE BOOR VALVE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
____""_"______________'_______'___"'________'______"'__"___"'_____'"_____"__________'__________"'__'______'__'____'____'_'"_
CASH WITH TRUSTEE -FIBST TRllST
26009 Cash with Truetee 1.96 0.000 0.000 0.000
_'__"_____""_____'__"_____"__'__"'_'""__'__"__'"'_'__'___________""""_'_'___'
'1C)TAL CASH and INVESTMENTS � $ 138.96 �
� zae:=:::�a����z:�::«s�e:a����»msa�....�....���:���::�:���maean��anm�asa��ee�.�����
27
_ 02/1]/1998 Blythe County CouIG Admin Ctr � pM - 2
INVESTMENT P�RTFOLIO DETAILS - I�STMENTS RDA
JIN`I1AF2Y 31, 1998 ACCRUAL
INVESTMENT PURCHASE - STATED --- YTM --- MATURITY DAYS
NOMBER ISSVER DATE BOOK VALllE FACE VALUE MARI(E'f VALVE RATE 360 365 DATE TO MAT
FEDERAL AGENCY ISSUES - COUPON
15008 R Federal Faxm Credit 09/13/96 499,609.85 500,000.00 501,250.00 6.125 6.312 6.400 07/09/98 158
, FIDELITY 1REASURY POOL
11038 . Fidelity Inetitutional Cash 309.00 ' 109.00 309.00 5.480 5.405 5.480 1
11039 R Fidelity InetiCu[ional Caeh 55,650.00 55,650.00 55,650.00 5.480 5.405 5.480 1
11041 I Fidelity Institutional Caeh 100,395.00 100,395.00 100,395.00 5.480 5.405 5.480 1
11042 Fidelity Inetitu[ional Caeh 12.00 12.00 12.00 5.260 5.188 5.260 1
11049 Fidelity Ins[itutional Cash � 32,455.00 � 32,455.00 32,455.00 5.480 5.405 5.980 1
11055 Fidelity Ine[itutiOnal Caeh 221,544.00 221,544.00 221,544.00 5.980 5.405 5.480 1
__________"" "____________ ______________ __"__ _'_'_' ______
SU6TOTALS and AVERAGES 410,165.00 410,165.00
410,165.00 5.405 5.980 1
_"_'_'_""______'_'___'__'_"_'""""""""""""""___"_'_'"""""""""""""_""'""_'"___'
TOTAL INVESTMENTS and AVG. $ 909,'/69.85 911,415.00
910,165.00 5.903# 5.985$ 87
2�
. 02/1'l/1998 Blythe County Court Admin Ctr pm - 3
IU7VESTMENT ppRTFOLIO DETAIL& - CASH RDA
� .TATRIARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- Y1T1 --- MP.TURITY OAYS
NUFIDER ISSUER DATE H00% VALUE FACE VALUE MARJ(ET VALIIE RATE 360 365 DATE TO MAT
CASH WITH TRISSTEE -FIRST TRUST
2600'/ Cash with Truetee 2.46 0.000 0.000 0.000
TOTAL CASH and INVESTMENTS $ 909,'/'12.31 �
29
. 02/10/1998 Houeing Set-aeide Seiiee 1998 PM - 2
INVESTMENT P�RTFOLIO DETAILS - I�STMENTS RDA
J7S1I7ARY 31, 1998 ACCRVAL
INVESTMENT PVRCHASE STATED --- YTM --- MATfIRITY DAYS
NVt�IDER ISSUER DATE HOOK VALVE FACE VALUE MARI(&T VALVE RATE 360 365 DATE TO MAT
______"______"____"___"________________"___________"__________"_______"_____________'__________________________________________"_
RREASURY SECUAITIES - COUPON
1]O85 Unitee S[atee Treaeury O1/22/98 143,950.'!9 199,000.00 143,910.00 5.125 5.39'1 5.9'l2 02/28/98 2'1
17086 Unites Statee Treaeury O1/22/98 14'l,514.2'/ 148,000.00 14'/,995.00 4.750 5.256 5.329 OB/31/98 211
ll08'/ . Uni[ea Statee Treasury O1/22/98 151,230.07 � 151,000.00 151,1B8.'/S 5.500 5.2'/3 5.397 02/28/99 392
1'/088 Unites Statea Treaeuty O1/22/98 156,214.OB 155,000.00 156,210.99 5.875 5.2'!9 5.34'/ OB/31/99 5]6
17089 UniCee S[atee TieaSULy . O1/4]/98 165,527.08 160,000.00 165,500.00 "/.125 5.266 5.339 02/29/00 O58
1'l090 Unitee Sta[ee Treaeury 01/22/98 169,516.11 166,000.00 169,52'1.50 6.250 5.282 5.355 OB/31/00 942
1'/091 llnitee S[ates Treasuzy O1/22/98 171,23'/.42 170,000.00 � 171,221.BB 5.625 5.289 5.363 02/28/O1 1,123
1'/092 Unites States Treaeury O1/22/9B 182,195.10 1'l6,000.00 182,2'/0.00 6.500 5.329 5�.903 OB/31/O1 1,30'I
17093 Unites Statee Tzeaeury O1/22/9B 186,337.57 181,000.00 186,986.56 6.250 5.357 5.431 02/28/02 1,488
1'/095 Unitee States Treaeury OS/22/9B 436,520.21 422,'100.00 436,568.'!9 6.250 5.35'] 5.432 OB/31/02 1,6'/2
17096 Unitee Statea Treaeuxy O1/22/99 418,948.05 405,200.00 418,494.61 6.250 5.357 5.432 OB/31/02 1,672
1']09'/ Uni[ea States Treaeury O1/22/98 9,397.52 9,100.00 9,398.5'/ 6.250 5.35'/ 5.432 OB/31/02 1,6'/2
SUBTOTALS and AVERAGES 2,338,088.22 2,338,222.60
2,2BB,000.00 5.323 5.397 1,122
TREASURY SECURITIES - DISCOVNL -
18023 Uni[ee Statee Treasury O1/22/98 150,'/9a.B2 198,000.00 150,9�5.00 9.'/04 5.3'l9 5.449 02/15/03 1,890
18025 Unites Statee Treasuzy 01/22/98 130,16'].96 181,000.00 130,150.31 4.628 5.434 5.509 02/15/04 2,205
1802'! Unites Statee T[easuiy O1/22/9B 4,989,6'11.22 '],143,000.00 5,000,100.00 4.590 5.964 5.540 09/15/04 2,38'/
18028 Unitea S[atee Tzeasury O1/22/9B 394,2'/9.4'1 532,400.00 394,959.53 4.662 5.395 5.4'/0 OB/15/03 2,021
18029 Uni[Ca Stdtee Tx'eaeury O1/22/98 255,200.42 344,600.00 255,640.60 4.662 5.395 5.4'!0 OB/15/03 2,021
______________ ______________ ______________ ______ ______ ______
. SUBTOTALS and AVERAGES 5,920,113.89 5,931,825.44
8,399,000.00 5.454 5.529 Y,329
FIDELITY TREASURY POOL
11058 Fidelity Inetitutional Caeh 156,059.00 156,059.00 156,059.00 5.480 5.405 5.480 I
________________________________________________________________________________
TOTAL INVESTMENTS and AVG. $ 8,919,261.11 8,426,107.04
10,843,059.00 5.4165 5.492# 1,950
30
. 02/1�/1998 Houei� Set-aeide Seriee 1998 PM - 3
INVESTMENT PORTFOLSO DETAILS - CASA RDA
JAN[7ARy 31, 1998 ACCRUAL
INVESTMENT PURCHASE . STATEO --- YTM --- MATURITY DAYS
NUFIDER ISSUER DATE HOOR VALUE FACE VALUE MARI(ET VALIIE RATE 360 365 DATE 10 MAT
rncH WITH 1RUSTEE -FIRST 1RUST
26013 Caeh with Truetee 0.42 0.000 0.000 0.000
Accrued In[ereet at Purchaae . . � 54,644."/1
TOTAL CASH $ 54,645.13
TOTAL CASH and INVESTMENTS $ 8,468,906.24
��������`.�.�.......'.......................s:=�a'�'�se=���=��=`��aaa��Ea����...����
31
�- _.
. o2/17/1999 Reaevelopment Agency - �neral pM - 2
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS RDA
JANUARY 31, 1998 ACCRVAL
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUf�ER ISSUER DATE BOOK VALUE FACE VALUE MpR[(ET VALUE RATE 360 365 DATE TO MAT
'""""""___'__"___'______'_'__'_____________"'__""""___"""______'_'_'_"_'_"_______'__"_"'"___"_"__'_'______'__'__'_____'__
IqCAL AGENCY INVESTMENT FUNDS
21000 Local Agency Investme[lt Fun 19,360,'/09.09 14,360,'/09.09 14,360,709.09 5 J49 5.665 5.'/44 1
FEDERAI. AGENCY ISSVES - COUPON � , �
15020 Federal National Mortgage.A 10/03/9'/ 1,000,000.00 1,000,000.00 1,000,625.00 5.630 5.621 5.699 OB/14/90 194
TREASURY SECVRITIES - COUPON
1'1069 Vnitee Statee Treaeury OS/24/96 2,000,402.18 2,000,000.00 2,002,500.00 6.125 5.905 5.987 03/31/98 58
1'/083 Unites S[atea Treasury 03/21/9] 1,976,fi01.']9 2,000,000.00 1,992,500.00 5.000 6.124 fi.209 02/15/99 3'/9
_____""'_"" "__"______"' ___________'__ "___' "__'__ ______
SUBTOTALS and AVERAGES 3,9'/7,003.9'/ 3,995,000.00
4,000,000.00 6.019 6.097 218
TOTAL INVESTMENTS and AVG. $ 19,33'1,'113.06 19,356,334.09
19�360,909.09 5.'135$ 5.8198 56
32
. 02/17/1998 ' Redevelopment Agency - General PM - 3
INVESTMENT PORTFOLIO �ETAILS - GSH RDA
JANIIAAY 31, 1998 ACCRUAL
INVESTMENT PURCHASE STATED --- YTM --- MATIIRITY DAYS
NUMBER ISSUER DATE BOOR VALUE FACE VALUE MARRET VALUE FiATE 360 365 DATE TO MAT
CASH WITH TRUSTEE -FIRST 1RUST
26006 Caeh with Tzuetee 0.01 0.000 0.000 0.000
Accrued Interest at Purchaee � 9,663.06 � '
" TOTAL CASH $ '/,663.0'/
. '.��......�...........������.....��......�.���............�.e�'�:'���ee��..�.....e�m
T9TAL GfSH and INVESTMENTS $ 19,345,37fi.13
� ......�vazsesa�aa�:....'..................................«a���="'�=m=s�esne�a����
33
-02/1�/1998 Sel[ Help Cheeking � PM - 3
INVESTMENT PORTFOLIO A6TAILS - CA$p RDA
� JANISARY 31, 1998 ACCRUAL
INVESTMENT PURCHASE � STATED --- YTM --- MATURITY DAYS
NUDIDER ISSUER DATE B001C VALUE FACE VALUE MARICET VALUE RATE 360 365 DATE TO MAT
__"__""_________________"_____________________'______"___"__________"____"___"_____'________"_____"______"___"_"_'____'"___'__'__
PASSBOOK/CHECRING
25002 B of A - Self Help Checking 46,994.'/'/ 0.000 0.000 0.000
TOTAL CASH and INV$STMENTS $ 46,994.'/'!
34
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CHAMBER oF COMMERCE
7�i�.lrr��lW/itfU9 I.J��.�G[Nir+�
January 30, 1998
TO: Paul Gibson �'�
, �
FROM: John Ellis,� �
,�C
Attached is the Report to the City, as per contract, due this date covering the
Palm Desert Chamber of Commerce operation of the Visitor's Information
Center for the sixth month period ending December 31, 1997.
N
. � _ .-,
;-. �.:�_ : ._
c'-
_.I ,.�
- _., C>
.: i � �,�
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- _ � � ��
_ y � S, ��t�
-fL� J .
� +�r� i�,a
C`�,,i1�
72-990 Highway 111, Palm Desert, California 92260
Information Center: (800) 873-2428 • Phone: (760) 346-6111 • Fax: (760) 346-3263
SCHEDULE B
REPORT OF SERVICES RENDERED
AND TO BE RENDERED
(DUE JAN[TARY, 1998)
CONTRACTORS, by its duly authorized of&cial, hereby submits to the City of Palm
Desert iu report on services rendered and to be rendered by Contractor pursuant to that
certain "Agreemenr by Non-Profit Organization to provide services to the City of Palm
Desert" effective the first day of July, 1997.
CONTRACTOR certifies that it has maintained iu office during the hours contracted
for, and has continuously provided all services contracted for, and assures the City it will
conduct ail programs contracted for.
Included in the services provided, Contractor has, during the period covered by this
Report, performed the following approximate services during the period July t, 1997 to
December 31, 1997.
The undersigned, the duly authorized official of the Contractor, certifies that the
information provided herein is true and correct.
John Ellis , Ed.D.
Acting Executive Director
/ �
Dated: O 1/3 0/ 9 8 By. .��� ��
/
�
-7-
PALM DESERT VISITORS INFORMATION CENTER
REPORT TO THE CITY
July 1, 1997 —December 31, 1997
The Palm Desert Visitors Information Center continued to grow during the first half of
the 1997-1998 year. The attached report chronicles this exceptional growth: 8,860
visitors, 18,500 telephone inquiries and 7,279 mailing requests.
To respond to our customers, the Center operates from a one story building at the corner
of Monterey and Highway 11. The Chamber of Commerce occupies approximately 25%
with the balance devoted to The Visitor Information Center. Three years ago, the City
and the Chamber jointly funded the refurbishing of the Center. That space is now
inadequate due to an increase in visitors to the City, staff expansion and Chamber growth.
Staffmg for the Center is as follows: two full time employees, three part time employees
and five volunteers (approximately 30 hows per week). The Chamber of Commerce has
general oversight and supervisory responsibilities. The Chamber staff has been
thoroughly trained to work in the Center and wark with visitors as demand dictates.
The Center formally operates Monday through Friday 9:00 a.m. to 4:30 p.m. From
January 1 through May 31,the Center is open Saturdays from 9:00 a.m. to 1:00 pm. The
Center was closed only 4 holidays dwing the fust half of the yeaz: July 4`h, Labor Daq,
Thanksgiving, and Christmas.
FINANCES
For the six month period ending December 31, 1997, the City had appropriated $64,250
for the Center. An additional $5,000 was allocated for operation of the Palm Desert
Historical Society and $4,081 was received for the Santa Rosa Mountains Visitor Center.
Thus, the operating budget for the first half of the yeaz was $73,331.
Of the $73,330.98, approximately 69% went for salazies, representing $50,624 in wages.
The balance was used for operating expenses: telephone, printing, office supplies,
postage, maintenance, et cetera.
The Chamber's investment in the Center continues to increase. During the past six
months, the Chamber Executive D'uector devoted approximately 30% of his time to the
Center. Staff, as indicated above, warked with the Center in a variety of capacities.
STAFFING
The Visitors Information Center is labor intensive. Visitors, whether on the phone or in
person, require personal service. Depending on the time of yeaz, the number of
personnel, paid and volunteer, will vary. At the present time during the height of the
season, the Center operates with a full-tune equivalent of 2.1 employees. Our goal is to
achieve a full time equivalency of 3.0 employees. Currently the Center is in operation
46.5 hours per week. 41.5 hours of that time the Center is open to visitors.
Hourly wages range from$5.50 to $12.00 (average $8.90).
Actual Visitors Center salaries totaled: $42,971.00
Actual Historical Society salaries: $ 1,164.00
Actual Santa Rosa Mountains Visitor Center salaries: 6 489.00
TOTAL: $50,624.00
Visitors Center benefits totaled $903.00.
POSTAGE
Costs will varied depending on advertising placement. The Center worked well with the
City's advertising agency on the Vacation Planner response, akhough a demand was
placed on existing staff and volunt4eers to get the pieces out in a timely fashion. This
was accomplished. Total postage for the Visitors Center for the fust six month period
ending December 31, 1997: $6,385.
TELEPHONE
The costs vary depending on the advertising promotions—i.e. the increase in 800 calls
and the need for long distance call backs. Visitor Center telephone bills during the six
month period ending December 31, 1997,totaled $4,110.
We have explored a variety of offers from telephone competitors to get the best rate. We
have shifted to Sprint wholesaler Network Plus which allows us flexibility while cutting
monthly expenditures.
The Visitor Information Center has a voice mail system through the Chamber so visitors
can call during off-hours to request material or call-backs.
COMPUTERS
We have upgraded and made repairs to the existing computer system, allocating $5,153
to this end. The technology is still inadequate and the system needs to be replaced at the
eazliest opportunity.
OFFICE EXPENSE
Standazd supplies and materials have run $3,126 in addition to a lease cost of $1,105
which covers the postage and fax machines along with the copier and duplicator.
1=EN:rc�� � li�.iL�+N...._. � ����17'yi '��. P . �J2
PALM DE3ERT CHAMB�R OF COMMERC Page 1
TtEVENU�S AND EXPEN$ES STATEMENT
(Department # 10: ir1£ormation Center)
1 Month Ended 6 Months Ende
December 31, 1997 December 31; 1 97
>�___=___--- ==�s=�= __---
ReveriUee --- ------___=___ �==I %===
City Contract $10 , '108 . 33 100 . 00 $64 , 249 . 98 � �7 . 6°s
Historica� Society 0 . 00 O , Oo 5, 000 . 06 � ' 6 . 8�
Mountain Conservancy 0 . 00 0 . 0% 4 , 081 . 00 5 . 6$
-------- ---- �
TOTAL Revenues 10, 708 .33 100 . 0% 73 , 330 . 98 �� 1 0 . 0%
GROSS PROFIT 10, 708 . 33 7,00 . 0� 73 , 330 . 98 1 0 . 0%
Expenses � I
Salaries - Emplpy��s 8 , 814 . 86 82 . 3a 50 , 624 . 37 g9 , po-
Payroll Tax Expense 665 . 70 6 . 2% 4 , 320 . 17 I ' 5 . 9%
Ineurance 50 . 00 0 . 5°s 902 . 50 I 1 . 2"s
Lease Equipment 127 , 38 1. 2� 1 , 105 . 40 I 1 . 5�
�f�ice Expense 536 . 78 5 .0� 3 , 125 . 66 4 . 3°s
Postage 1, 515 . 37 14 . 2% 6 , 384 . 74 8 . 7a
PrinCing 257 . 11 2 .4% 1, 775 . 84 � 2 . 4a
Telephone 612 . 53 5 . 7� 4, 109 , 84 ; 5 . 6�
Computer Expense 920 . 00 8 .6< 5, 153 . 00 7 . 0�
TOTAL Expenses ` __13 , 499 73 126 . 1°s 77, 501 . 52 10�5 . 7%
- --- - i
OPERATING PI20FTT _-_<2 , 791_40> -26 . 1� _ <4_170 . 54> � -IS . '7%
NET INCOME <$2, 791.40> -26 . 1$ <$4 , 170 . 54> � -5 . 7°s
�_=.�.c_»ea =-����_--___
il
II
i
�
(
MAIL COUNT BY STATE
INCLUDING CANADA & EUROPE
ALONG WITH VACATION PLANNER
& FAX TOTALS
JULY AUG SEPT OCT NOV DEC TOTAL
AL 0 0 0 0 1 1 2
AK 0 0 0 1 1 1 3
AZ 2 6 6 9 1 1 25
AR 0 0 1 0 1 1 3
CA 90 72 57 109 72 82 482
CO 2 2 1 3 4 1 13
CN 1 0 7 7 2 1 18
DE 0 0 0 0 0 1 1
DC 0 0 0 0 1 0 1
FL 6 3 3 4 3 1 20
GA 0 1 1 4 1 1 8
HI 1 0 0 1 0 0 2
ID 0 1 2 1 1 4 9
IL 3 2 10 24 4 4 47
IN 0 4 2 4 1 1 12
IA 2 2 7 1 1 2 15
KS 1 1 3 5 1 1 12
KY 2 1 2 2 0 1 8
LA 0 3 1 0 1 0 5
ME 0 0 0 4 0 1 5
MA 6 3 7 1 4 3 24
MD 2 0 0 2 2 0 6
MI 0 4 11 7 5 1 28
MN 7 14 3 11 4 8 47
MS 1 1 0 1 0 0 3
MO 1 3 1 2 6 0 13
MT 0 0 4 0 0 3 7
NE 3 1 1 2 0 0 7
NV 1 3 8 3 1 3 19
NH 0 0 1 0 0 2 3
NJ 5 5 4 14 4 1 33
NY 5 8 15 15 14 7 64
NM 0 0 1 2 2 1 6
NC 1 2 1 3 2 2 11
ND 0 0 2 0 2 2 6
OH 5 3 4 6 5 1 24
OK 3 2 4 4 1 2 16
OR 4 6 12 11 6 9 48
PA 4 7 6 7 7 7 38
RI 0 0 1 2 0 0 3
SC 0 0 0 2 1 0 3
SD 0 0 0 1 0 0 1
T'N 5 3 3 2 2 1 16
TX 3 4 5 9 5 2 28
UT 2 1 6 4 0 3 16
VT 0 0 0 0 0 0 0
VA 2 1 1 4 5 3 16
WA 10 12 25 11 18 17 93
WV 0 0 0 0 0 0 0
WS 2 2 9 4 6 3 26
WY 1 0 0 1 0 1 3
Canada 8 7 20 19 8 7 69
Euro e 1 1 1 0 0 0 3
Faxes 150 130 174 254 264 153 1,125
Vacation
Planners 1,947 0 239 79 2,631 4,896
TOTAL 342 2,149 438 822 548 2,980 7,279
VISTTOR COUNT TO THE PALM DESERT CHAMBER OF COMMERCE
VISITOR INFORMATION CENTER FROM 07/Ol/97 TO 12/Ol/97
MONTH DAY DATE # OF VISTTORS TOTAL
Ji7LY Tuesda 1 45
Wednesda 2 48
Thursda 3 43
4 of Jul 4 -- 136
Monda 7 97
Tuesda 8 58
Wednesda 9 '72
Thursda 10 60
Frida 11 98 385
Monda 14 80
Tuesda 15 60
Wednesda 16 60
Thursda 17 68
Frida 18 90 358
Monda 21 83
Tuesda 22 68
Wednesda 23 34
Thursda 24 59
Frida 25 71 315
Monda 28 90
Tuesda 29 55
Wednesda 30 60
Thursda 31 68 273
TOTAL 1,467
AUGUST Frida 1 61 61
Monda 4 67
Tuesda 5 41
Wednesda 6 39
Thursda 7 55
Frida 8 71 273
Page 2
VISITOR COUNT TO THE PALM DESERT CHAMBER OF COMMERCE
VISITOR INFORMATION CENTER FROM 07/Ol/97 TO 12/Ol/97
MONTH DAY DATE # OF VISITORS TOTAL
AUGUST Monda 11 63
Tuesda 12 43
Wednesda 13 46
Thursda 14 44
Frida 15 84 280
Monda 18 72
Tuesda 19 45
Wednesda 20 45
Thursda 21 2'I
Frida 22 45 234
Monda 25 64
Tuesda 26 41
Wednesda 27 42
Thursda 28 51
Frida 29 55 253
TOTAL 1,101
SEPTEMBER Labor Da 1
Tuesda 2 48
Wednesda 3 50
Thursda 4 65
Frida 5 43 206
Monda 8 70
Tuesda 9 54
Wednesda 10 66
Thursda 11 51
Frida 12 50 291
Monda 15 60
Tuesda 16 50
Wednesda 17 50
Thursda 18 43
Frida 19 75 278
Page 3
VISITOR COUNT TO THE PALM DESERT CHAMBER OF COMMERCE
VISITOR INFORMATION CENTER FROM 07J01/97 TO 12/Ol/97
MONTH DAY DATE #OF VISITORS TOTAL
SEPTEMBER Monda 22 58
Tuesda 23 50
Wednesda 24 48
Thursda 25 49
Frida 26 80 285
Monda 29 57
Tuesda 30 67 124
TOTAL 1,184
OCTOBER Wednesda 1 64
Thursda 2 58
Frida 3 67 189
Monda 6 50
Tuesda 7 71
Wednesda 8 72
Thursda 9 56
Frida 10 50 299
Monda 13 63
Tuesda 14 �'1
Wednesda 15 79
Thursda 16 65
Frida 17 57 341
Monda 2� 88
Tuesda 21 8�
Wednesda 22 82
Thursda 23 �5
Frida 24 73 405
Page 4
VISITOR COUNT TO THE PALM DESERT CFIAMBER OF COMMERCE
VISITOR INFORMATION CENTER FROM 07/Ol/97 TO 12/Ol/97
MONTH DAY DATE # OF VISTTORS TOTAL
OCTOBER Monda 27 87
Tuesda Z8 65
Wednesda 29 76
Thursda 30 64
Frida 31 66 358
TOTAL 1,592
NOVEMBER Monda 3 98
Tuesda 4 99
Wednesda 5 75
Thursda 6 72
Frida 7 96 440
Monda 10 98
Tuesda 11 92
Wednesda 12 90
Thursda 13 85
Frida 14 90 455
Monda 17 91
Tuesda 18 80
Wednesda 19 62
Thursda 20 62
Frida 21 71 366
Monda 24 ]OS
Tuesda 25 85
Wednesda 26 82
Thanks ivin 27
Frida 28 85
Saturda 29 55 412
TOTAL 1,673
Page 5
VISITOR COUNT TO THE PALM DESERT CHAMBER OF COMMERCE
VISITOR INFORMAT'ION CENTER FROM 07/Ol/97 TO 12/01/97
MONTH DAY DATE # OF VISITORS TOTAL
DECEMBER Monda 1 87
Tuesda 2 75
Wednesda 3 87
Thursda 4 111
Frida 5 85 445
Monda 8 60
Tuesda 9 76
Wednesda 10 68
Thursda 11 45
Frida 12 51 300
Monda 15 59
Tuesda 16 67
Wednesda 17 55
Thursda 18 57
Frida 19 �0 308
Monda 22 88
Tuesda 23 54
Wednesda 24 105
Christmas 25
Frida 26 162 409
Monda 29 172
Thursda 30 82
Frida 31 127 381
TOTAL 1,843
6 MO. TOTAL 8,860
' The
California Municipal ���,7 ournal
� Serving Officials with Public Fin���es�o��'bilit��
Vol.4, No. 3 c01998 ISSN 1082-0604 Phone: (805)640-3436 February 9,1998
Lake Elsinore Poo1 Put on Notice: FYaUd Ch11'9@S A9aI11St Cltl@S
Bond Trustee Files Claims On City, As SEC Makes A Statement
Raises Questions on Bond Tender
The bond trustee on a Lake Elsinore Mazks- Some Califomia cities arc bcing pursued for fraud, some are
Roos pool—a deal that stirred debate in the mar- having their bond funds audited, an allegation that a financial ad-
ket last ycar—has filed a claim against various viser improperiy pushed for a school bond approval was thrown
entities in the city,a possible preeursor to a law- out, a federal agency settled bid riggi�g allegations against a Cali-
suit that could raise allegations aboat a bo�d fomia frm(Pacific Matrix),and an Orange County case suggested
purchase program and other developments. underwriters better dot their i's and eross their t's in disclosure.
Among other things, the truste�BNY Yes, it has been a quiet two weeks io Lake Wobegon,Califor-
Wcstcm Trust Co.—says it does not like what it nia.
fou�d afrcr rcviewing the Lake Elsinore Public We did a bit of revamping of this edition to incoiporate all the
Financing Authority's"purchase of a portion of latest developmen[s because, even though we focus more on ana-
the Bonds and the Authority's claim that the licn lyzing public finauce matters thau"breaking"news, it is a bit diffi-
rela[ing to the [Communities Facilitics District cul[to pass on all the lates[goi�gs on.And, once again, public fi-
No.] 88-3 Local Obligations had been termi- nance directors who wa�t to avoid being tripped up by disclosure
natcd. The Tmstee has substa�tially completed problems can leam from [he issues raised in the latesC lawsuits,
its analysis of the transactio� and Ihe informa- �, though some question the grounds for certain charges. The action
tion provided by[he Authority in October 1997, against a handful of Califomia agencies is partiwlarly important
and has concluded that aspeets of sueh transao- for questions raised about deveioper finances and disclosur�if
tion were either not permitted undcc thc tcrms you're working on a land-based transaction,pay attention.
of the Indenmre or embodied substantial irregu- After years of threats, the Sewritics and Exchange Commis-
larities." sion finally followed through on its i�vestigations i�to various Mello-
BNY Wes[ern Trust made thosc remarks in Roos deals a�d filed securities fraud charges last week against Ne-
a notice to bondholders that was mailed a couple vada County,the Wasco Public Financing Authority,and the ciry of
weeks ago. It also announced a bondholders' Ione. Also named in the action arc William McKay, a real estate
(continuetl on page 6) (continued on page 2)
Claim of Illegal School Bond Lobbying
�n This �ssue Thrown Out In Case Against Consultant
State to Audit Some Local Bond Funds q A Ventura County superior court judge last week dismissed an
allegation that a financial adviser overstepped its bounds by pro-
New Power Rules Offer Some Benefits 5 viding political advice in connection with passage of a school bond
iss�e, saying that he fo��d the consultant's contract valid.
1997 Rankings of Undenvriters 7 Thc Ventura County Libertarian Party had alleged that thc
Ventura Unificd School District not only bought financial advice
1997 Rankings of Bond Counsel 8 with its fees, but also improperly paid for political lobbying wi[h
� these resources.A lawyers for the plai�tiffs claimed that the finan-
1997 Rankings of Financial Advisers 9 cial consulta�t was being paid up to three times more than similar
"Muzzled"Finance Directo�s; Plus, Disclosure Debate 10 advisers,based on a poll tha[Ihe lawyer conduc[ed.
Officials aC Dale Scott Xc Co.and the school district vigorously
Still Plenty of Troubled Deals on a"WatehList" �p objected to that allegation, which was linked to passage of an$81
million general obligation bond issue last yeac Judge David Long
GASB 31 and Reserve Funds ...Again 12 (continued on page��)
o,/ ��i!`y/-�
� "r
^� � G�
�
2 February 9,1998/Specia�l�lfig in California Municipal Finance Phone: (805)640-3436
SEC Hammers Home Some Points on Developer Disclosure ...
(continued from page 1)
appraiser,and Virginia Hoder,a senior vice Boston,Nowlin,and Montague agreed to pay [the boxrd] voted to form the ._ CFD," the
president of Dain Rauscher [na (formerly a total of$87Q000 in civiL penalties to the L8-pagc SEC filing alleges.
Rauscher Pierce Refs�as [ncJ. The allega- Onited States Treasury. First Boston under- The SEC also delves into the process
tionswereissuedinanorderinstitutingpub- wrote Orange County's offering of [hecountyhadestablishedforMello-Roos
lic adminishative proceedings;accordingly, $32Q04Q000 in Pension Obligation Bonds issuanee,elaiming that�he board violated its
an administrative hearing will be scheduled on September 28, 1994. Nowiin and guidelines fbrbond approval.StatTmembers
to litigate the charges and to determine Montague were First Bostods lead invest- of the counry's Int?astmcture Finance Com-
whether the SEC should order any remedial ment bankers assigned to this offering.Dur- mittec raised concems,the SGC says.How-
action.Writ[en respo�ses are due in 20 days. ing the u�derwriting, First Boston, through ever, county supervisors "undertook the
The SE�C alleges that"the municipali- Nowlin and Montague,participated in draft- Mdto-Roos bond offering without receiving
ties and individuals created and approved ing the official statemenL The Commission the necessary favoruble recominendation of
written materials,used in selling the bonds, said it found"that the Official Statemcnt for its Infrastructure Finance Committee and
thatfraudulentlymisstatedoromittedimpor the Pension Bonds,which should have pro- without ever ti[tdfng that thc four-to-one
tant information." These alleged misrepre- vided imestors with accuram and complete value-m-lien ratiu specihed by i[s guideliires
sentations and omissions in theofficial state- discbsure of material facts regarding the had becn satis�ied or that there wus u com-
ments"were important to investors because Pension Bonds,misrepresented and omitted pelling justification for accepting a lower
they made the projec[s and the bonds appear material facts regarding the Orange County v�luc-to-liqi ra�io,���hc SP.0 nlleges.
to be less risky than they actually were." Investme�t Pools. Specifically, the Official Other charges centeron misrepresenm-
Lust week's filing is significant in thai Statement misrepresented or omitted mate- tions and omissiom concernfn��he��aluc ot
the SEC was unable to reach cease-and-de- rial infonnation regarding the Pools,includ- the property io be deccloped:ihe devcloper's
sistsettlementswithihedefenda�ts,whoare ing: i)thePools' invcstmentsirateoy;2)the ownership intercnt in the property; ihe
expected to present vigorous defenses. Our risks of that strategy; and 3) the Pools' de- devcloper's experience�nd f nancial condi-
Deeember I A, 1995 edition summarized clining im�estment results." tion; cost es�ima�es to co�nplete tlic pmjecl.
NevadaCounty'sconcemst�ndnotmuehhas Here is whut we cons'idcr �he crut o( and ho�a �hc project would be financed by
changed sincc then—the county continues to that mxtter, and wc quote it in full frnm an the dcveluper[md Necada County.
maintain it ae�ed prudendy in reviewing the SEC release: "The Cominfssion's Order The charKes are somewh.0 similur to
$9.07 million Mello-Roos special tax deal, makes clear �ha� underwriters and thcir in- thoce brought �gains� tl�e undenvriter, First
whiclt was sold in lute 1990 for the Wild- vest[nent bxnkers [nust have a reasonahle C;diti>mia C'.apitul Murkei,Group,on thesc
wood E'states community (acilities distrfct. bnsis for belfel in thc key represenmtions trans'�ctium (scc our .��uguai 4. 1997 issuc
Thocaseisespeciallyimportaotforsmedle� madeiutheAisclosurcdoeumennuseclinlhe Connor�de�ilsl.Acco�din�ly.wcwodn�o-
and Icss sophisticuted public ageneies, be- offerings and cunnot siinply rcly on repre- pcat some of the details.
eause it raises questions ab0ut wlto bears thc sentauons of issucrs or otlicial5 ollssuers in Mcliay ;ind I lorlcr are chargcd with
uitimate responsibility when issuers rely on reviewing the adeyuacy of disclosure. lJo- knowing �hout nther "substantially lower
informalion provided by financeproCessioo- derwriters 2nd investment bankers must in- appraised ��alucs�� for the I❑nJ, but ❑ot in-
als. (Bond professionals also might be cau- quire into other sources of available infory cludi�i�thai information in ihcofticial statc-
tious about what ii means to put"good faf�h" matioq whieh iii this case included infoRna- men�,ihc SEC,uy,,adding ihut the summary
reliance on qualified individuals,sueh as ap- tion at First Bosto�i, media sourees, rece�it appr�isal in the prospcetus"only contained
praisers,and will no doubt bc reminded again official statements of the County.and other die thrce highcst values."
about checking thc backgrou�id and reputa- information at thc Counry." The SF.0 tiling alsu has broader impli-
tion of those they rely upon.) SEC officials essentially are sayingthat cations in that it inakes a strong statement
NevadaCountyofficialsalsoarguethat underwriters have to heed "red flags'� xnd about the valuc ol various developer
they have not in any way crossed the thresh- investigate them,cspec[ally when that infor- financials, a topic that hns been dcbated
old of"Craudulen[' activity as it is defined mation is presented in A�oFficixl stateinenl among bond lawyers, invcstors, re�ulators
under the 1934 Securifics and tixchangeAct. Many of the same parallels anse in las't and others. The SEC again takes the posi-
Accordingly,thc county has resisted settling week's Gli�g except�ow the SGC is allcg uon that ihc potemial value ofthe land fs onty
the charges, wheraas other municipal issu- ing that the public agencies also bear respon- one factor that im�estors rely on in purchas-
ers--sueh as Orange Counry—have settled sibility when"ced tlags"pop up. ing such bonds.
s'uch securities fraud cases. For example,in regard ro the Wildwood l'he SGC�dleges that the oflicial state-
It is dear Gom this filing and another Estates deal, the SEC alleges thxt the Ne- ment misstates the ownership of the lund as
oneinvoLvi�gunderwriters,thattheSECbe- vada County Board of Supervisors knew belonging entircly to Mo�itross. "This
fieves public agencies and professionals are about certain concems, yet proeeeded with misidentification ofthe property's ownership
bothonthehookforvariousrepresentations. the 6nancing without disdosing some of was materfully misleading because it stig-
On Ianuary 29, the SEC settled a pub- tham. In bcicf,the suit alleges thnt thc board gcstcd thal Montross' personal resources
lic administrative and ceaso-and-desist pro- was advised about problems the devcloper were at risk f��the projeet when,in fact,oniy
ceeding against Credit Suisse First Boston (G. Michael Montross) had in arranging fi- a shell comuration's assets were at risk,"the
Corp.and two of its fortner investmen[bank- nancing for tl�e project`No�wilhs[andingthe SF.0 daims."Additionnlly,[heORcial State-
ers, Jerry L. Nowlin, and Duuglas S. defieiencies in Montross' application and mentledfnvestorstobelievethatiheowner's
Montague. As part oC lhe settleme�[, First 'red flags'regarding his financial resources, background a�id n;sources had been disclosed
(continued on next page)
' The
California Municipai F�������Journai
� Serving Officials with Public Fin�c��es�on�ibilit�3
Vol.4,No. 3 �1998 ISSN 1082-0604 Phone: (805)640-3436 February 9,1998
Lake Elsinore Pool Put On Notice: FraUd (+harg@S AgaI11St Cltl@S
Bond Trustee Files C�aims on City, As SEC Makes A Statement
Raises Questions on Bond Tender
The bond trustee on a Lake Elsinore Marks- Some Califomia cities are being pursued for fraud, some are
Roos pool—a deal that stirred debate in the mary having their bond funds audited, an allega[ion that a financial ad-
ket last year—has filed a claim against various viser improperly pushed for a school bond approval was thrown
entities in the city,a possible precursor[o a law- out, a federal agency settled bid rigging allegations agains[a Cali-
suit Iha[ could raise allegations about a bond fomia firm(Pacific Matrix),and an Orange County case suggested
purchase program and other developments. I undenvriters better dot[heir i's and cross their t's in disclosure.
Among other things, the trustee—BNY , Yes, it has been a quiet two weeks in Lake Wobegon,Califor-
Westem Trust Co.—says it does not like what it I nia.
found after reviewing the Lake Elsinore Public We did a bit of revamping of this edition to incocporate all the
Financing Authority's"purchase of a portion of I lates[ developments because, even though we focus more on ana-
the Bonds and the Authority's claim that the lien I lyzing public finance matters than"breaking"news,it is a bit diffi-
relating ro the [Communities Facilities District cult to pass on all the latest goings on.And, once again,public fi-
No.] 88-3 Local Obligations had been termi- nance directors who want to avoid being tripped up by disclosure
nated. The Trustee has substantially completed problems can leam from [he issues raised in the latest lawsuits,
its analysis of the transaction and the informa- I though some question the grounds for cenain charges. The action
tion provided by the Authority in October 1997, I against a handful of Califomia agencies is particularly important
and has conduded that aspects of such transao- � for questions raised about developer finances and disclosute—if
tion were either not permitted under the tertns you're working on a land-based transaction,pay attention.
of the Indenmre or embodied substantial iaegu- After years of threats, the Securities and Exchange Commis-
larities." sion finally followed through on its investigations into various Mello-
BNY Westem Trust made those remarks in i Roos deals and filed sewrities fraud charges las[week against Ne-
a notice to bo�dholders that was mailed a eouple vada County,the Wasco Public Finaneing Authoriry,and the city of
weeks ago. [t also announced a bondholders' lone. Also named in the action are William McKay, a real es[ate
(continued on page 6) � � (continued on page 2)
Claim of Illegal School Bond Lobbying
In This Issue Thrown Out in Case Against Consultant
State to Audit Some Local Bond Funds q A Ventura County superior court judge last week dismissed an
allegation that a financial adviser overstepped its bounds by pro-
New Power Rules Offer Some Benefits g viding political advice in connection with passage of a school bond
issue,saying that he found the consultant's contract valid.
� 1997 Rankings of Undenvriters 7 The Ventura County Libertarian Party had alleged [hat [he
Ventura Unified School District not only bought financial advice
1997 Rankings of Bond Counsel 8 with its fees, but also improperly paid for political lobbying with
these resources.A lawyers for the plaintiffs claimed that the finan-
1997 Rankings of Finaneial Advisers 9 cial consultant was being paid up to three times more than similar
"Muzzled"Finance Directors; Plus, Disclosure Debate 10 advisers,based on a poll that the lawyer conduc[ed.
Officials a[Dale Sco[t&Co.and the school district vigorously
Still Plenty of Troubled Deals on a"WatchLisY' 12 objected to that allegation, which was linked to passage of an $81
million general obliga[ion bond issue last yeac Judge David Long
GASB 31 and Reserve Funds...Again 12 (continued on page it)
.�f �u�l-G
�rM �
2 February 9,1998/Specializir � California Municipal Finance n'rone: (805)640-3436
SEC Hammers Home Some Points on Developer Disclosure ...
(continued from page 1)
appraiser,and Virginia Horler,a senior vice Bosron,Nowliq and Montague agreed to pay [the boardJ wted to form the ... CFD," the
president of Dain Rauscher Inc. (formedy a [otal of$870,000 in civil penalties to the I S-page SEC filing alleges.
Rauscher Pierce Refsnes Inc.). The allega- United Sta[es Treasury. First Boston undery The SEC also delves into the process
. tionswereissuedinanorderinstitutingpub- wrote Orange County's offering of [he wunty had established for Meilo-Roos
lic administrative proceedings;accordingly, $32Q04Q000 in Pension Obligation Bonds issuance,claiming[hat the board violated its
an adminis[ra[ive hearing will be scheduled on September 28, 1994. Nowlin and guidelines forbondapproval.Sta(finembers
to Iitigate the charges and to determine Montague were First Bostods lead invest- uf the county's Infrastructure Finance Com-
whether[he SEC should order any remedial ment bankers assigned to[his offering.Dur- mittee raised wncerns,the SEC says. How-
action.Writtenresponsesareduein20days. ing Ihe underwriting, Eirst Boston, through ever, county supervisors "undertook the
TheSECallegesthat"Ihemunicipali- NowlinandMontague,participatedindraft- Mello-Roosbondofferingwithoutreceiving
ties and individuals created and approved ing[he official s[atemenc The Commission the necessary favorable recommendation of
written ma[erials,used in selling the bonds, said it found"that the Official Statement for its Infrastruct�re Finance Committee and
that fraudulently misstated oromi[[ed impory the Pension Bonds, which should have pro- without ever findine that the four-to-one
tant information." These alleged misrepre- vided investors with accurate and complete value-to-lien ratio specified by its euideli�es
senta[ions and omissions in the official state- disclosure of material facts regarding the had been satisfied or that there was a com-
ments"were important to invesrors because Pension Bonds,misrepres'ented and omi[ted pelling justification for accepting a bwer
they made the projects and the bonds appear material facts regarding the Orange Counry value-to-lien ratio;�the SEC alleees.
to be less risky than they actually were.�� Imestment Pools. Specitically, the OfBcial Other charges-center on misrepresenta-
Last week's filing is signifieant in that Statement misrepresen[ed or omitted mate- tions and omissions concerning the value ot
the SEC was unable to reach cease-and-de- rial informa[ion regarding the Pools,includ- [he property to be developed;tlie developer's
sistsettleroentswiththedefendants,whoare ing: l)thePools' imestmentstrategy;'_)the ownership interest in the propertp: die
expected to present vigorous defenses. Our risks of that strategy; nnd 3) the Pook' de- developer's experience und financial condi-
December l8, 1995 edition summarized clinina investment results." tion:eost astimates to complete the proi�ct,
NevadaCounty'sconcernsandnotmuchhas Here is what we consider the cru.r of nnd how the projcct �vould be financad by
changed sinee then—the county conti�ues to that matter, and we quote it in full from an the devzloper and Ne��ada Cuuni}.
main[ain it acted prudently in reviewing the SEC release: "l'he Commission's Order The charges are some�vhat .imilar to
59.07 million Mello-Roos special tax deal, makes clear that underwriters and their in- those brought against the undencriier. First
which was sold in Ixte 1990 Por the Wild- vestment bankers must have a reason361e Cnlifomia Capital Markets Group, on thesc
wood Estates communiry facilities district. basis for belief in the key representations transactions• (see our Aueust l. 1997 issuc
The case is especially impor[ant for smaller made in the disclosure documents used in the for more details).Accordin�h�.�ve���on't re-
and less sophisticated public agencies, be- offerings and cannot simply rely on repre- peat some ofthe dewils.
causeitraisesquestionsaboutwhobearsthe sentationsofissuersorofficialsofissuersin McKay nnd tlorler ure chareed with
ultimate responsibility when issuers rely o� reviewing the adequacy of disclosure. Un- knowing about other "subsmntialh� lo���er
information provided by finance profession- derwriters and investment bankers must in- appraised values'� for the land. but not�In-
als. (Bond professionals ulso might be cau- quire into other sources of availabie infor- cluding that informncion in ihe oflicial stata-
tious about what it means m put"good faith" mation,which in this case included inforzna- ment,the SEC says,adding that the summary
reliance on qualified individuals,such as ap- [ion at First Boston, media sources. recent appraisal in the prospectus "only wntained
praisers,and will no doubt be reminded again o�cial statements of the Cou�ty,and other the three highest values:� .
�bout checking the background and reputa• informa[ion at the County.'� The SEC filing also has broader impli-
tion of those they�ely upon.) SEC officials essentially are saying that cations fn that it makes a strong statement
NevadaCounryofficialsalsoarguethat underwriters have to heed "red flags� and about the value of varfous developer
� they have not in any way crossed the thresh- investigate them,especially when that infor financials, a ropic that has been debaced � �
old of"Gaudulent" activity as it is defined mation is presen[ed in an o�cial statement. among bond lawyers. investors, regulators
under the 1934 Securities and ExchangeAct. Many of the same parallels arise in last and others. 'Che SEC aeain takes the posi-
Accordingly,the counry has resis[ed settling week's filing,excep[now the SEC is aileg- tion that thepotential value ofthe Iand is onty
the charges, whereas other m❑nicipal issu- ing that the public agencies also bear respon- one factor that investors rely on in purchas-
ers—such as Orange County=have settled sibility when"red tlags"'pop up. ing such bonds.
such securities fraud cases. For example,in regard to the Wildwood The SEC alleges that the official state-
1t is clfai from [his filing, and another Estates deal, the SEC alleges that [he Ne- ment misstates the ownership of the land as-
oneinvolvingundernrirers.thattheSECbe- vada County Board of Supervisors knew belonging entirely to Monvoss. "This
lieves pubiic ageneies nnd professionals are about certain concems, yet proceeded with misidentifieation ofthe properry's ownership
both on the hook for various representations. the financing without disclosing some of was materially misleadine because it sug-
On January 39, the SEC settled a pub- them. In brief,the suit alleges that the board gested tha[ Montross' personal resources
lie administrative and eease-and-desist pro- was advised about problems the developer were at risk in the pmject when.in fact,only
ceeding against Gedit Suisse First Bosron (G. Miehael Montross) had in arranging fi- a shell corporation's assets were at risk,"the
Corp.and two of its former investment bank- nancing for the project"Notwithstanding the SEC claims."Additionally,the Official State-
ers. Jerry L. Now1ln, and Douglas S. deficiencies in Montross' applieation and mentledinvestorstobelievethattheowner's
Montague. As part of ihe settlement, First 'redtlags'regardinghisfinancialresoumes, baekgroundandresourceshadbeendisclosed
� (continued on next page)
Phone: (S05)640-3436 Specializing in California Municipal Finance/February 9,1998 3
... But Agencies Say They Did Not "Recklessly" Disregard Facts
(continued from previous page)
when,in fact,no infortnation had been pro- no maps, no plans, no engineering reports, Separately,on January 30,the SEC in-
videdaboutWildwoodCocp.,thetrueowner, noemironmentalimpactrepoRs,nopermits s[i[u[ed a cease-and-dasist proceeding
or about the Wildwood Partners' claims m and/orconstruction financing."The PFAcre- against Pacific Matrix Financial Group Inc.
the propeny."The SEC also claims"Nevada ated a misimpression that the bond proceeds for assisting Stifel,Nicolaus & Co. in rig-
County knew thac the ques[ion of the owner- would be used within three years,the SEC ging the bidding for investment agreements.
� ship of Wildwood Estates was material be- alleges,when in fac[it applied"only about Pacific Matrix did not admit or deny the
cause it had aleeady stopped the bond sale I S%of the funds as it had represented'� in findings,and paid disgorgemen[of$50,000,
once in August 1990 becausz of a concem the official statement within three years of based on its inability ro pay a larger amount.
about title.�� Subsequent litigation clouded the deal. . More on this subject down the road. •
title to Wildwood Estates,the SEC adds.
Charges are also raised about the actual �
experience of Montross, who in December What do you get when MBIA
1997 was convicted by a Califomia jury of
morethan70felonycountsofCalifomiastate comb�nes the municipal ex ertise
securities law violations, leading to his im- �
prisonment "Therepresentationsaboutthe of Mun�Financial and C� SS?
experience and financial streng[h of the de-
veloper were material to investors because,
without an experienced and Fnancially MBIA MuniServices for the public
strong developer,invesmrs had little,if any,
nssurancethattherawlandwouldbedevel- Seetor that are as big as California.
oped into subdivided single family lots with
special recreation facilities and that the lots
would be sold to homeowners willing to pay
the anticipated asking prices and special
tases;'the SEC says. AS pQ110f OU�Of1g01f1g
The Ihrust of the SECs filing is that the eommitment to state r�'`" �'�
defendants"knew or recklessty disregarded and local governments, '- `'`'
thatmatenalfactsweremisrepresentedornot MBIA has united the
disclosed to investors"in the Nevada County services and expertise l
official sta�ement (We will, of course, '�
present a (ull rundown on the defendants' Of MUf11FIndf1CIC71 Wlth ��. �'�
responses when Ihey are available,given the Californla CLASS- _
importance ofthe issues at stake,and the fac[ MBIA's loeal govem- �� ` � �
ihat the cities and individuals contest the al- �p@nt IIlVOSt!'Tl@Ilt �t��� —� � ' -
le+ations.) ���
k ool.The result ��`""�.� �—�--�� �
First California also underwrote $14 p "��� `���� �•� �� ,
millionofloneCFDNo.2bondsforaCastle is a powerful new �:_ �— _
�_ �—_ .�� _`�
Oaks development.lone and McKay are ac- bfQ@CI Of QIlIfT1qI tlldt ���_�1= =__,�
�Z�z�z--_�%-
cused of misrepresenting the land value in offers you the bond � `\�G�� ���
thatdistrict,andoffailingtodiscloseknown administrationand ��'-� �" ��`,4�
funding shortfalls for the infrastrucmre. If1V2STfll2flt 111C7(1Qg@- ,���
The Wasco allegations pertain to a$35 ment services needed - =r=" �
million Marks-Roos pool sold in 1989(one by professionals in the �—�
that yours truly wrote abou[at the time,when ,
this and other large pools in small commu- pUb�IC $ECtOL TO�1f1C'� OUt
nities raised policy questions in the market). hOW thl$d��QY Of fTlUfllCl-
"The Wasco PFA Official Statement repre- p0� SOfVIC2S C(7f1 b2f12�1t YOU,
sented Ihat the Wasco PFA incended and rea- CO(1tqCt �OII W@bb@f C7t
sonably expected to purchase certain speciFc 1-800-755-MUNI,or visit the MBIA
local obligations with its bond funds," the website at www.mbia.com.
SEC alleges. "In fact, however, the Wasco
PFA had no reasonable basis for making mos[
of its representations about the local obliga- ���
tions...[the]Official Statement£ailed to dis- �
close the highly tentative and questionable
namre of a number of the projects for which
there were variously no development sites, �
4 February 9,1998/Specia� .�g in California Municipal Finance � Phone:(805)640-3436
Alleged Improprieties Trigger Audit of Local Bond Funds
Assemblyman Scott Wildman has This publication has been aware of waste and to maintain the [committee's]
made no secret in recent months that he such allegations for quite some time. traditional nonpartisan objectivity,in the
would like to reinvigorate the state's Joint Some public officials have raised com face of the most powerful entrenched gov-
Legislative Audi[ Committee, which is cems with us, but also expressed reser- ernment bureaucrats and the par[isan
charged wi[h making govemment more vations about having[heir names identi- agendas that protect govemment corrup-
accountable to Califomia taxpayers. As fied with the problems (see our editorial tion and inefficiency from disclosurc to
chairtnan ofthe committee,Wiidman has the citizens of Califomia."
wasted little time pursuing that goal,and As with many other investigations
public finance activities are one area[hat I now pending in California�r in fact re-
could receive more scrutiny.Wildman,by �I sulting in charges,such as those brought
the way, also serves as one of the mem- I recently by the Califomia Department of
bers on [he Califomia Deb[ and Invest- � Corporations—the audits of city bond
ment Advisory Commission. ' funds tend to involve deals that were un-
Thejoint audit committee is nowtak- S8C1'8f11@flt0 DCV@IOPIT10�tS 'il denvritten by ei[her Firs[Califomia Capi-
ing a more activist role by looking into Affecting Lacal Govemments tal Markets Group or Pacific Genesis
controversies,rather than simply referring Group Ine.,which was formed by certain
[hem to the state auditor for review. For on page 10 for commentary on the"muz- ex-First Califomia employccs.
example, the committee delved into rea- zling" of finance directors and others Thc Wa!!Sn�eet Joim�inl also picked
sons behind delays in building the whenpoliticalpressuresarise).Theaudit upontheauditanele,andfeamredastory
Belmont Leaming Complex, a Los An- is expected to examine whether bond pro- on the subject last Wednesday. [n that ar-
geles school that has been criticized for fessionals or others pressured cities or ticle,a Pacific Genesis banker complains
now costing three-or four-fold wha[some trustees to shuftle money around to main- that the audits are the latest in a broader
had predictedjust a few years ago. tain legally required balances. scheme ro generate negative pubiicity
A couple weeks ago, the audit com- Peter Schaafsma,executivz director about his firm and various Marks-Roos
mittee also addressed a public finance of CDIAC,raised the concems Sn a Ietter deals it has underwritren. One of those
controversy by directing the sta[e audi[or [o Wildman in December.Public and pri- issues defaulted in January(see our Janu-
toconductauditsonbondaccountsofsev- vate officials alike have told us abou[ ary26, 1998editionfordetails).
eral cities in California, including Lake these concems—some of them involving But state officials have respunded
Elsinore, Waterford, Dos Palos, Wasco, very specific details—and now the state that the investigations are necessary to
Ione, Coalinga, Selma and Placerville. auditorwilltrytoseparatethewheatfrom prorecttheintegrityofthemunicipal-bond
Readers of Ihis publica[ion will recognize the chaff.The state auditor,Kurt Sjoberg, market S[ate Treasurer Matt Fong did not
some of the names in connection with plans to complete the investigation by late mince any words, being quoted in the
controversial uses of the state's Marks- spring. Journn!to the effect that"some of these
Roos Local Bond PoolingAct.There have Wildman sees such activity as con- land-based deals smell worse than a ciry
been 211egations and rumors [hat some sis[en[with the audit wmmittee's intent, sewer."
bond account balances have been manipu- which is to serve as a bipartisan watch- State officials also are giving the fi-
lated, or that large sums of money are in dog that is free from political and special nal touches [o language in SB 147, a bill
fact missing. In Waterford, for example, interest influence. [n a document that that now focuses on Marks-Roos author
there are allegations that a developer re- Wildman provides about [he committee, ity. This bill will, in part, make it clear
ceived bond funds, but never provided he s[resses a vow"to continue this all-out that local agency participation is required
promised improvements. assault on govemmen[ inefficiency and when such deals are assembled. •
Tlre Cu(Bond Jnuma[ The California Municipal Finance Journal Dennis Walters, Publisher ISSN 1082-0604
T6e�uurnnl is published every o[her Monday,except for specified holiday breaks.Copyrigh[1998,Dennis Walters.Federal copyright law prohibits!he
reproduction of any oc all of this publication by any means.Please co�tact The)ournnl ro ob[afn au[horized repcints.
Firs-t-clas-s postage is paid at Ojai,California.An a��ual subscription(24 issues)costs$299.Public officials who meet Tlie Jourrml"s criteria can qualify for
lower c�tes-.Bulk subscription information a�d advectising rates are available bv conta<fing the publisher.
Please focward subscriptions to Tiie Jounml at Pos[Office Box 1629,Ojai,Califomia 93024.Send all other cocrespondence ro 7'Ne lournnl at�23 E.Ojai
Avenue,NlU7-502,Ojai,Califomia 93023. �
Phonc:(805)6�103436, Pax:(805)!v}0-1945,E-maih calbondeix.netcom.com.
Phone:(805)640-3436 �Specializing in California Municipal Finance/February 9,1998 5
New Federal Power Rules Give Some Tax-Exempt Assurance
New regulations that were being re- financings of transmission and do little to ability of utilities to use tax-exempt bonds
leased as we went to press with the last is- provide[he relief the industry has requested if they participate in an open access pro-
sue are seen as a plus for protecting the tax- for the problems of existing excess genera- gram.
exempt status of public power bonds, and tion capacity.The regulations on the pmate The output reguiations expire in three
for credit quality as weil,municipal analysts activity aspects of refundings continue to yeazs,giving federal officials time to study
and bond lawyers said.- be reserved, including most rules govem- the matter furthec The Interna] Revenue
"The new regulations ... will provide ing refundings of ou[put facilities" Service ha5 r¢ques[ed commentt on Ihe iules
greater flexibility for municipal electric Concem also remains about pending before a hearing that is set for April 28,
utilities to participate in the indepdendent federal legislation that would curtail the 1998. •
transmission system operator(ISO)organi-
zations Iha[ are expected to offer non-dis-
crimina[ory open electricity transmission Stone & Youngberg:
access;'Moody's Investors Service said in
a commentary on the rules.The regulations �
"should have a positive impact on credit Californias Leader in Restructuring
quality"because they relax private-use re-
strictions on tax-exempt debt issued for Land-Backed Bonds
transmission assets of municipal electric
utilities, Moody's added.
Interpre[ations voiced by federal [ax Eighry-eigh[million dollars of CaliFornia manicipal bond
staffers last year raised concem abou[ en- issues wenc inco deFaulc in 1996—an aIl-cime record.The
ergy deregulation and its impact on the tax- majoriry were land-backed deals chac collapsed due ro the
exemptstatusofexistingmunicipalelectric Califomiarealestacedownmm.
bonds."Before these new rules,the debt of �m,
]n some cases, che value of che �o��m� �;i,,,,;,M,,,,;�pd e�oa p��.
. Califomia municipal utilities participating land securing these bonds has Sz50
in an ISO would have become taxable debt," ao
. Moody's noted,adding that the regulations fallen by more chan half, while
remove one obstacle that could have pre- che debc obligaeions on che prop-
vented Califomia's municipal utilities from erties have concinued[o rise. ; �
joining the state's ISO. Certain kinds of y� 74 �
power supply contracts up to 180 days are Currencly,there are more chan fifry n Q r c
also allowed without hampering Ihe tax-ex- Ixnd-backed bonds chroughouc
empf status of bonds. CaliEorma ac risk of defaulc The 90 B1 92 93 94 95 96 97
Bond lawyers had disagreed with the good news,however, is chat these
way tax s[affers viewed issues tied [o de- bonds are now being su«essfully resolved[hrough the devel-
regulation,and seemed happier wi[h some opmenc of workouc plans ro rescrucmre discressed debe.
of the Treasury Department's clarifying
� rules. Srone&Youngberg is California's leading manager�n work-
"These new regulations wnfirm many oucs of distressed land-backed bonds. Escablished in 1931
existing practices, will force re-evalua[ion ro refinance irrigation pmjecu for Califomias depressed
of many o[hers,and broadly permi[munici- agriculmral discricts,Scone&Youngberg scili considers �"yr a.oakly
pal utilities to participate in open aceess land-backed financing a comerstone oFits business.
transmission without jeopardizing the tax mreoripal mankct
exemption on[heir existing bonds," said a S[one&Youngberg's dedica[ed workout ceam has a
memorandum on[he issue prapared by law- proven crack record for developing innovacive solueions rpdau,ar well ar
yers al O�'[ick,Herting[on& Sutcliffe. ro bring delinquenc taaces currenc and make distressed
atceu m a fr!! .
But the rules are no panacea. propeaies viable.
Moody's notes,for example,that"de- li.rdng ofow bond
spite enhanced flexibili[y, IRS rules con- If you would like co learn more about how Scone&
tinue to constrain municipal electric utili- Youngberg can usisc your agency, please contacc Bill Huck i���y�
[ies from fully participa[ing in retail choice ac our San Uiego office a[619-452-05G3.
programs; in certain instances, thei�bonds . �°t"a,ym`r°°"u
wouldstillbecometaxable." � S[one & YoungbergLLC ��riaat
The Ortick Herrington memo cautions � E.�,hrsnrd����
that "the Ou[put Regulations are ambigu- -- �p://�hj,o.�m..
oasasrotheviabilityoffuturetax-exemp[ so c.rFo.��, s��«� • s�� r,o���.�a. cn vain • ais-va�-�jia
6 February 9,1998/Speci ^ ag in California Municipal Finance ��� Phone: (SOS)640-343b
Trustee Questions Lake Elsinore Pooi Dealings
(continued from page 1)
mee[ing—scheduled for March 12 in Los cial[axes orannual�installme�ts ofassess- after consulting with counsel and deter-
Angeles—to discuss the results of its ments, and the tender notice said at the mining"that the delay could be detrimen-
counsel's investigation, Ihe sta[us of[he time[hat all of them"are currenHy in de- tal to the Bondholders ... The purpose of
bonds,and other matters. fault." tiling the Notice of Claim was to put the
The [rustee's notice of claim wi[h The bond tender program proposed Lake Elsinore entitics on notice [hat the
vanous Lake Elsinore entities is just the to remove CFD No. 88-3 as one of the Trustee had certain concems involving
latest twist fora$55 million deal thatpro- distric[s whose local obliga[ions secured their ac[ivities and [o preserve[he rights
voked debate from the time it was sold in the Marks-Roos bonds.The real property of the Bondholders in the event litigation
I990. The deal, which was underwritten has to be commenced. If the Trus[ee is
by First California Capital Markets ...the Trustee felt it had a duty unable to reach a satisfactory settlement
Group, was assembled at roughly [he t0 notify previ0us BOndho1d0f5 Wi[h the Lake Elsinore entities, Ihe
same time that other large pooled trans- yyho partieipated in the Bond � 'Crustce will pursue �II appropriate rem-
actions caught the market's attention in Tender Prog�am that the NotlCe edies and courses of ac[ion, including if
small cities such as Wasco and Avenal. of Bond Tender 5ent out in can- necessary, the filing of a lawsuit."
The size of the bond sales in such small nection with the Bond Tende� BNY Western noted that White &
communi[ies at[racted a[[ention, and p►ogram may not have been Case "has experience resolving similar
helped spark reforms ofthe state's Marks- accurate in all respeets." matters imolving litigation"We featured
Roos Bond Pooling Ac[ of 1985. The a story about another lawsuit involving
Wasco Public Financing Authority deal within CFD No. 88-3 would then secure that law firm in late 1996; White&Case
was named in a separate action last week additional new Mello-Roos bonds; those is also working with a bond trustee in con-
by the Sewrities and Exchange Commis- bonds ultima[ety were sold, and the pro- nection with a suit over the Los Angeles
sion(see page one story). ceeds were used to pay the purchase price Ciry Housing Authoriry's 1992 deal for
The Lake Elsinore pool attracted re- of the tendered bonds.. the Hayward Manor Project.That lawsuit
newed attention las[ April when it de- Someholdersofthedefaul[edMarks- touches on whether the issuer followed
faulted on[he$47.93 million ofprincipal Roos bonds griped about this provision, appropriate standards of care in assem-
still outs[anding.It was in the news again arguing that the authority was essentially bling the bond deal,which is now in de-
in mid-year because of a tender program stripping out one ofthe healthier districts fault.A hearing on thac suit is scheduled
that would proceed only if bonds were to their detriment Numerous complaints for this week;bondholders and the Wstee
tendered at about hvathirds of par value; also were raised regarding the extent of will pursue discovery if they prevail at that
the au[hority estimated that it needed 52% disclosure about the existing districts,and hearing, and a tentative trial date is set
or more the bonds to be tendered for the the lack of appraisals on property in the for May 1998 in the Hayward Manor case.
offer to go forward.The tender offer did various districts. A lawyer at White& Case also was
not attract enough support initially,but the Those complain[s could get new life, appointed recendy as the independent re-
deadline was extended and drew enough and at least are on the table again, if the viewer to examine certain Marks-Roos
interest, albeit at higher prices for some trustee's recent no[ice is a barometer. transactions and sales practices by Pacific
tenders. "As some of you may be aware, the Genesis Group Inc.
Now, however, [he trus[ee has re- Trustee felt it had a duty to notify previ- Bondholders initially criticized BNY
tained [he law firm of Whi[e & Case to ous Bondholders who participated in the Westem Trust because of concem it had
represen[ BNY Western Trust and [he Bond Tender Program that[he Notice of not stayed on top of the Lake Elsinore
bondholders"in pursuing their rights and Bond Tender sent out in connec[ion with pool problems, or kep[ [hem infornted
remedies against the Lake Elsinore enti- the Bond'Cender Program may not have about reserve draws in a timely fashion.
ties," the recent notice says. "White & been accurate in all respects," BNY Officials at the trustee responded during
Case has investiga[ed and continues ro Westerds notice says. However, the a bondholders'meeting that they had foI-
investigate the facts surrounding the Bond trustee said it cannot represent the previ- lowed the terms of the indenture.A couple
Tender Program sponsored by the Author- ous bondholders,and encouraged them to investors who were contacted last week
ity and the method by which the Local seek advice from their legal counsel. said they were pleased th�t the trustee has
Obligations pledged [o [he trus[ee were As for the i�vestigation, the trustee not let the matter drop,and that i[ is pur-
rcdeemed." said it had hoped to meet with the Au- suing matters that generated controversy
Bond proceeds from thc 1990 deal thority—essentially [he city council—at among bondholders. The Lake Elsinore
were used [o buy local obliga[ions from its first available da[e in January 199R, claimsmightgetbroadermarketattention
six assessment districts and Mello-Roos but the authoriry canceled that meeting at because bond tenders are expected to be
distriets. As of mid-1997, all of the dis- "the very last minute,"the ootice says.A used elsewhere in the state; a lawsuit
tricts were experiencing significant delin- meeting might occur in February. might highlight areas that raise concems
yuencies in [he payme�t of annual spe- BNY Westem said it filed the claSm when such programs are assembled. •
Phone:(805)6403436 Specializing in California Municip�_cinance/February 9,1998 3
... But Agencies Say They Did Not "Recklessly" Disregard Facts
(continued from previous page)
when,in fact,no information had been pro- no maps, no plans, no engineering reports, Separately,on Jarmary 3Q the SEC in-
videdaboutWildwoodCorp.,[hetrueowner, noenvironmentalimpactreports,nopermits stituted a cease-and-desist proceeding
or about the Wildwood Padners' claims to and/or construction financi�g."The PFA ae- against Pacific Matrix Financial Group Inc.
the property."The SEC also claims"Nevada ated a misimpression that[he bond proceeds for assisting S[ifel,Nicolaus & Co. in rig-
Counry knew that the question of[he owner- would be used within three years,the SEC ging the bidding for investment agreements.
ship of Wildwood Esta[es was material be- alleges,when in fac[it applied`bnly abou[ Paci£c Matrix did not admit or deny the
cause i[ had already stopped the bond sale I 5% of the funds as it had represented"in findings,and paid disgorgement of$SQ000,
onee in Aagust 1990 because of a concem the official statement within three years of based on its inability to pay a largeramount.
about [itle:' Subsequent litigation clouded the deaL More on this subject down[he road. •
title to Wildwood Estates,the SEC adds.
Charges are also raised about the actual
experience of Montross, who in December ��/1� �� ��� ��� ���� ����
1997 was wnvicted by a Califomia jury of G�
morethan70felonycountsofCalifomiastate combines the munici ai ex ertise
securities law violations, leading to his im- � � � �
prisonmenL "Therepresen[ationsaboutthe of MuniFinaneiai and CL�VV�
experience and financial strength of the de-
veluper wece material to ir.vestors because,
wi[hout an experienced and financially MBIA MUI IIS�1 VICGS �OI �I IG pUNIIC
strong developer,investors had little,if any,
��s�°��°�e�^a<<h��aw�A°�W°°�dbede�e�_ seetor that are as big as California
oped into subdividetl single family lots with .
special reereation facilities and that the lots
would be sold to homaowners willing to pay
the anticipated asking prices and special
taxes;'the SEC says. f�S p(7ff Of OUf Oflg011lg
ThethrustoftheSECsfilingisthatthe COfTlllllt('f1QI1tt0 $tQt2 � ^ti
defendants"knew or recklessly disregarded and loeal governments, �'��-
thatmaterialfactsweremisrepresentedornot MB�A hqS Ull�lt@C,� th@
disclosed to invesrors�in the Nevada County �
services and expertise
official statement. (We will, of course, i,
present a full rundown on the defendants' Of MUIIIFIIl011CIQ�Wlth �� F •''
responses when they are available,given the CC7�IfOfII�IQ C�SS- - �
importanceoftheissuesatstake,a�dthefact MBIA'sloealgovern- .�� " , �
tha[the cities and individuals contesl Ihe al- � �'•'`": � �
ment investment , �
legations.) v���"� "�..�
First Califomia also underwrote $14 p00�.Tr1Q f@SU�t �����. �,r��� �� ;v �
millionofloneCFDNo.26ondsforaCastle IS C7 pOWerfU� IIeW -- � �—� `�1 �
breed of animal that 1'� =_-
Oaks development,tone and MeKay are ao- ��G� f�--= _�—_�
Z���'-��� 'y�i�
cused of misrepresenting the land value in offers you the bond `\��� —����
thatdistrict,andoffailingtodiscloseknown administrationand �� a/�%%
<�
funding shortfal(s for the infrastructure. IIIVEStIIIEIIt fT1QllC]g2- '� ��_
The Wasco allegations pertain to a$35 -j� (
million Marks-Roos pool sold in 1989(one ment services needed �;�� :�J
that yours truly wrote about at the time,whe� by prOf@SSIOIlC7�S Ill th0 �'"
this and other large pools in small commu- pUb�IC SOCtOf�TO�111C� OUt '
nities raised policy questions in the market). hOW thlS OffdY Of I'T1UIlICI-
"The Wasco PFA OtFcial Statement repre- pQ�S2fVICQS CC]Il b2112�1t yOU,
sented that the Wasco PFA intended and rea- COIItQCt�011 W@rJb@f qt
sonably expected to purchase certain specif c �-g00-755-MUNI,or visit the MBIA
local obligations with its bond funds," the Website at www.mbia.com.
SEC alleges. "In Cact, however, the Wasco
PFA had no reasonable basis for making most
of its representations about the local obliga- ��� �
tions...[the]Official Statement failed to dis-
close the highly ten[ative and questionable
nature of x number of the projects for which
there were variously no development sites,
�
4 February 9,1995/Speci�ng in California Municipal Finance Phone (805)640-3436
Alleged Improprieties Trigger Audit of Local Bond Funds
Assemblyman Scott Wildman has This publicallon has been aware of waste a�d to maintain the [committee's]
made no secret in recent mo�ths thar he such allegations for quite some time. traditional nonpartisan objectivity, in the
would like to reinvigorate the state's Joint Some public offtcials have raised con- face ofthe most powerful entrenched gow
Legislative Audit Committee, which is cems with us, but also expressed reser- erame�t bureaucrats and the partisa❑
charged wi[h making govemmen[ more vations abou[having their names identi- agendas that proteet govemment corrup-
accountable to Califomia taxpayers. As fied with thc problcros (see our editori2l tio� and inefficiency from disclosuro to
chaimian ofthe committee,Wildman has ---- -- -- the citizens of Caiifomia."
wasted little time pursui�g that goal,and �� As with many othcr invcstigations
public finance activities are one area that now pcoding in Cnlifornia—or in fact rr
could receive more scrutiny.Wildman,by sulting in charges, such as those brought
the way, also serves as one of the mem- I recently by thc California Department oC
bcrs on the California Debt and Invest- , Corporations--thc aadits of city bond
mcnt Advisory Commission. ; funds tend to involve deals that were un-
Thcjoint audit committee is now tak- SaC�aR1811t0 D0V@IOpmBntS derwrittcn by either First Califomia Capi-
ing a more aetivist role by looking into Aff@CYI�g LOC81 GOV@�ItIT10�YS , tal Markets Group or Pacit�c Genesis
controversies,rather than simply referring -- � � -���-- Group Inc.,whieh was fonned by certain
them to the state auditor for review. For on page 10 for commentary on the"muz- ex-First Cali fornia employces.
example,the committee delved into rea- zling" of fi�ance directors and others Tlre N4rll St��eet Jo�o��inl also picked
sons behind delays in building the whenpoliticalpressuresarise).Theaudit upontheauditangle,andfcaturedastory �
Belmont Learning Complex, a Los An- is expected to examine whether bond pro- on the subject last Wcdncsday. [n that ar-
geles' school that has been criticized for fessionals or others pres'sured cities or ticle,a Pacitic Genesis banker complains
now costing threo-or four-fold what somc hustees to shutTle money around to main- that thc audits arc thc latest in a brotidcr
had predicted just a few ycars ago. tain Iegally required balanccs. seheme to �,enerate negative publicity
A couple wecks ago,the audit com- Peter Schaafsma, executive director aboul his firm and various Marks-Roos
mittee also addressed a public finance of CDLAC,raised the coneerns in a letter deals it hus underwritten. One of those
controversy by dirocting tl�e state auditor to Wildman in Dccember. Public and pri- issucs dcf�ulted in January(sce our Janu-
toconduetauditsonbondaeeountsofsev- vate officials alike have told us about ary26, 199Acditionfordetails).
eral citics in Califomia, includi�g Lake theseconcems—someoftheminvolving But statc officials have responded
Elsinore, Waterford, Dos Palos, Wascq very specifie details—and now the state that the invcstigations are necessary to
lone, Coalinga, Selma and Placervillc. auditorwilltrytoseparatethewheatfrom protecttheinteg�iryofthemunicipal-bond
Readers ofthis publication will recogoize [he chaff.The state auditor,Kurt Sjoberg, market State Trcasurer Matt Fong did not
some of the names in connection with plans to complete the investigation by late mince any words, bcing quoted in thc
controversial uses of the statds Marks- spring. Jom�na!to the effec( that`somc of these
Roos Local Bond PoolingAct There have Wildma� sees such aclivity as con- land-based deals smell worse than a ciry
been allegations and rumors that some sistentwith the audit committee's intcnt, sewec"
bond aeeount balances have been manipu- which is to serve as a bipartisan watch- State officials also are giving the fi-
lated,or that large sums of money are in dog that is free from political and special nal touches to lan�ua�e in SB L47, a bill
fact missiug. In Waterford, for example, interest influeoce. In a document that that now focuses on Marks-Roos author-
there are allegations tha[a developer re- Wildman provides about the committee, ity. This bill will, in part, make it cicar
ccived bond funds, but never provided he stresses a vow"to continue this all-oul that local agency participation is required
promised improvemcnts. assault on government inefticiency and when such deals are assc�x�bled. •
7'he CrdBorul Jounia/ The California Municipal h'inqnce Journal Dennis Walters, Publisher ISSN 1082-0604
The/ounml is-published every other Monday,except fot spec[fied holiday bceaks.Copyright 1995,Dennis WaLte�s'-Pederal copyright law prohibits the
reproduction of any oc all of this publicaHo�by any means.Please wnta<tThe Journnl to obtain authotiu�d reprints.
Fiest-elass postage is paid at Ojai,Califoenia.An annuaL subsccipKon(24 issues)costs 5299.Public ofFicials who meet Tlm Jm�rnnYs triteria can qualify for
lower rates.Bulk subsciiption information and advertising ra[es aze avai7able by contacting the publisher.
Please focwacd subs-criptions to The Jourrial at Post Offim Box 1629,Ojai,Califomia 93024.Send all other correspondence[o The Jounml at 423 E.Ojai
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Phone:(805)640-3436, Pax:(805)640-1945,E-maih calbondQix.netcom.com
Phone: (805)640-3436 Specializing in California Municiyal Finance/February 9,1998 5
New Federal Power Rules Give Some Tax-Exempt Assurance
New regula[ions that were being re- financings of transmission and do little to ability of utilities to use tax-exempt bonds
leased as we went to press with the last is- provide the relief the industry has requested if they participate in an open access pro-
sue are seen as a plus for protecting the taz- for the problems of existing excess genera- gram.
exempt status of public power bonds, and tion capacity.The regulations on the private The output regulations expire in three
for credit quality as well,municipal analysts activity aspects of refundings continue to yeazs,giving Federal oFficials time to study
and bond lawyers said. be reserved, including most rules govem- Ihe matter further. The Intemal Revenue
"The new regulations ... will provide ing refundings ofoutput facilities." Servicehasrequestedcommentsontheiules
greater flexibility for municipa] electric Concem also remains about pending � before a hearing [hat is set for April 28,
utili[ies to participate in the indepdendent federal legislation that would wrtail the 1998. •
transmission system operator(ISO)organi-
za[ions Iha[ are expected to offer non-dis-
criminarory open electricity transmission Stone & Youngberg'
access,"Moody's[nvestors Service said in
a commentary on the rules.The regulations
"should have a positive impac[ on credi[ Californias Leader in Restructuring � .
quality"because they relax private-use re- .
strictions on tax-exemp[ deb[ issued for Land-Backed Bonds
transmission assets of municipal electric
utilities, Moody's added.
Interpretations voiced by federal tax Eighry-eight million dollars of Califomia municipal bond
StaffE�s last year raised eonCem abou[ en- issues went inco defaulc in 1996—an all-cime recocd.The
ergy deregulation and its impact on the tax- majority were land-backed deals tha[collapsed due to the
exetnpt s[a[us of exis[ing municipal elec[ric ���fomia mal�scac�dow�cur�.
bonds.'Before these new rules,the debt of poii,�
I�i some cnses, the value of the oiom� �� M,,,,:�e,�Bo„a p�y„�,�
California municipal utiGties participating
land secunng these bonds has 5250
in an ISO would have become taxable debt," 210 :
Moody's noted,adding that the rcgulations fallen by mo�e ehan half,while
remove one obstacle that could have pre- che deb[obligations on che pcop- ��
ventedCalifornia'smunicipal u[ilities from crcies ha�e conrinued co rise. = .� -
joining the state's ISQ Certain kinds of Cuacndy, rhere aee more than fifcy � y� B1 5� �� � �
power sapply contrac[s up to I80 days are p� -
also allowed without hampering the[ax-ex- ��i���-backed bo��ds throughout .
empt sta[us of bonds. CaGfo«la ac dsk of deFaulc The so at az 93 ea 95 es s� � :
Bond lawyers had disagreed wi[h the good news, however,is cha�chese
way tax staffers viewed issues [ied to de- bonds are now being successfully resolved chrough[he devel- � ��
regulation, and seemed happier with some opmenc of workou[plans ro restmcmre disvessed debc � � �
of the Treasury Department's clarifying . .
rules. Scone&Youngberg is Califomia's leading manager in work �
"Chese new tegula[ions confirtn many outs of distressed land-backed bonds. Escablished in 1931
existing practices, will fome re-evaluation m cefinance irrigacion projects for CaliEornias depressed
of many others,and broadly permit munici- agricultural districts,Stone&Youngberg still considers , .��r s��;;�.�
pal utilities to participate in open aecess land-backed financing a comerscone of its business.
Iransmission withoutjeopardizing [he [ax ����r,[��. .
exemp[ion on their existing bonds," said a Smne&You❑gberg's dedicaced workouc ceam hu a
memorandum on the issue prepared by law- pro�en cra�k re�ord for d��elop�ng i��o�aci�e soludo�s ,x�larq as unllas
yers at Ortick,Herzington&Sutcliffe. eo bring delinquent taxes current and make distressed .�'�
But the rules are no panacea. properties viable.
�t�4�. .
Moody's notes,for example,that"d� � �
spi[e enhanced flexibili[y, IRS rules con- Ifyou would like to learn more about how Stone & '����'���
tinue to constrain municipal elec[ric utili- � Youngbecg can usis[your agency, please con[act Bill Huck ��y��.�.
ties from fally participating in retail choice at our San Diego office at 619-452-0563.
programs; in certain instances, their bonds ��d1X��'�
would stil]become taxable." S[one & Youngbe[g LLG � � � ��
The Orrick Herrington memo cautions � e��ahr�hea,�3, ����'�����
tha[ "the Ou[put Regulations are ambigu- � �� `.n.,,,;t�tt�iS3�+6.t�M.,.
ousastotheviabilityoffutoretax-exempt so cnry ��;, s��,<< s.� F�a��n�o. cn ran� • s�s-�a���3�a ��f�� �
�
6 February 9,1998/Speciali,�g in California Municipal Finance Phone: (805)640-3436
Trustee Questions Lake Elsinore Pool Dealings
(continued from page 1)
meeting—schedulad£orMarch 12inLos cialtaxesorannualinstallmentsofassess- �ifter consulting with counsel a�d detcr-
Angeles—to discuss the results of its ments, and the tender no[ice said at the inining"that the delay could be detrimen-
counsePs investigation, the status of the time[hat all of them"are currently in de- tal to the Bondholders ... The pu�pose of
bonds, and other matters. fault." tiling the Notice of Claim was to put the
The tmsteds �otice of claim with The bond tender program proposed Lake Elsinore entities on notice that the
various Lake Elsi�ore eutities is just the to remove CFD Na 88-3 as one of the Trustee had certain coneerns involving
latest twist for a$55 million deal thatpro- districts whose local obligations secumd their activities and to preserve the rights
voked debate from thc time it was sold in the Marks-Roos bo�ds.Thc real property of the Bondholdcrs in the cvent litigation
1990. The deal, which was underwri[ten has to be commenced. If the Trustee is
by First California Capital Markets " ,,,the T�uStee felt It had a duty unable to reach a satisfactory setticmcnt
Group, was assembled at roughly the to notify previous Bondholders �'���� thc Lakc Glsinore entities, the
same time that othcr large pooled trans- who partieipated in the Bond Trustee will pursue all appropriatc rcm-
actions caught the market's attention in Tender Prog�am that the Notice cdies and courscs of action, including, if
smalt cities such as Wasco and Avenal. of Bond Tender Sent out in tom nwessary, thc filing of a lawsuit."
The sizc of the bond sales in such small nection with the Bond Tender BNY Wcstcm noted that Whitc &
communities attractcd attention, and program may not haVe been Case "has experienee resolving similac
helpedsparkreformsofthestate'sMarks- aecuratelnallrespeets." mattersinvolvinglitigation°'Wefcatured
Roos Bond Pooling Act of 1985. The � �— --- --_ a story about anothcr lawsuit involving
Wasco Public Financing Authority deal within CFD No. 88-3 would then secure that luw firm in late 1996; Whitc&Case -
was named in a separate action last week additional new Mello-Roos bonds;those is also working with a bond tn�stce in con-
by the Securities and Exchange Commis- bonds ultimately wcre sold, and thc pro- nection with a suit uver thc Los Angeles
sion(sec page one story). ceeds wercused to pay the purchase price Ciry Housing Authority's 1992 deal for
The Lakc Elsinore pool attracted re- of the tendered bonds. the Hayward Manor Project That lawsuit
newed attention last April when it de- SomcholdersofthedefaultedMarks- touchcs on whcthcr ihe issucr follow¢d
faulted on the$47.93 million of prineipal Roos bonds griped about this provision, appropriate standards uf care in assem-
still outstanding. It was in the news again arguing that the authority was essentially bling the bond deal, which is now in de-
in mid-year because of a tender program stripping out one of the healthier districts fault.A hcaring o� that suit is schedulcd
that would proceed only if bonds were to their detriment. Numerous complaints for this week;bondholden and thc trustee
tenderedatabouttwo-thirdsofparvalue, also were raised regarding the extent of wilipursucdiscoveryifthcyprevailatthat
the authority es[imated that itneeded 52% disclosure aboutthe existing dishicts,and hearing pnd a tentativc trial date is set
or more[hc bo�ds to be tendered for[he the lack of appraisals on property in the for May 1998 in thc Hayward Manor case.
offer to go forward. The tender offer did various districts. A lawyer at White& Casc also was
not attractcnough sapport initially,butthe Those complaints could get new lifq appointed recently as the independent rc-
deadline was extended and drew enough and at least are on the table agaiq if the vicwer to cxaminc ceriain Marks-Roos
interest, albeit at higher priees for some trustee's reeent notice is a baromccer. [ransactions and sales practices by Paeific
tcnders. "As some of you may be aware, the Genesis Group Inc.
Now, however, the trustee has re- Trustee felt it had a duty to notify previ- Bondholders initialiy cnticized BNY
tained the law firm of White & Case to ous Bondholders who participated in the Westem Triist because of conccm it had
represent BNY Western Trust and the Bond Tender Program that the Notice of not stayed on top of the Lake Elsinore
bondholders"in pursuing tlieir rights and Bond Tender sent out in co�nection with pool problems, or kept them informed
remedies against the Lake Elsinore enti- the Bond Tender Program may not have about reserve draws in a timcly fashion.
ties," the recent notice says. "White & been accurate in all respects," BNY Officials at the trustee responded during
Casc has imcstigated and continoes to Western's no[ice says. However, the a bondholders'meeting that thcy had fol-
inves[igatethefaeCssurroundingtheBond trusCecsaiditcannotreprescnttheprevi- Iowedthctcrmsoftheindenhire.Acouple
Tcnder Program sponsored by theAuthor- ous bondholders,and encouragcd them to investors who werc contacted last week
ity a�d [he method by which the Local seek advice from their legal counscl. said thcy were pleased thatthc trustee has
Obligations pledged to the trustee were As for the investigation, the trustcc not Ict the mattcr drop,and that it is pur-
redeemed." said it had hoped to meet with the Au- suing matters that gencr�ted controversy
Bo�d proceeds from the 1990 deal thority�ssentially the city council—at among bondholders. The Lake Elsinorc
wcrc used [o buy local obligatio�s from its first available date in January 1998, claimsmightgetbroadermarketattentio�
six assessment districts and Mello-Roos but the authority canceled that meeting at because bond tenders are expected to be
districts. As of mid-1997, all of the dis- "the very last minutq"the notice says.A uscd elsewhcrc in the state; a lawsui[
tricts were experiencing sigoifieant delin- meeting might occur in February. might highlight areas that raise concerns
qaencies in the payment of annual spe- BNY Western said it filcd the claim whcn such programs are assembled -
Phone: (805)640-3436 Specializing in California Municipal Finance/February 9,1998 �
Municipal Volume Picks Up in 1997; Will 1998 Be Better?
Long-term California municipal �ew issues totaled $2792 billion in 1997, up from $24.91 billion in 1996 and $20.1 billion in
1995,according to Securi[ies Date Co.National long-[erm municipal volume last year totaled$214.96 billion,up from$1 S 1 J2 billion
in 1996. Califomia volume could continue to pick up a bit, given the improving economy, continuing infrastructure needs, and cury
rently a[tractive interest rates.National volume alreadyjumped 41%in January,compared to the same month a year ago,but California
volame was about the same,according[o Securities Data Co.
On this and following pages,we present rankings-as measured by number of issues-for underwriters,bond counsel and finan-
cial advisers in 1997. Some prefer to lis[these rankings by dollar volume-those figures are also given, if you wish to do your own
calculatio�s.
- --- Managing Underwriters' Rankings, 1997 -
California Long-Term Municipal Issues (by number of issues)
Source: Securities Data Company(201) 6223100
IManaging Underwriters #of Issues Rank Mkt. Share Principal
(Full Credit to Book Manager) ($mil)
Bank of America NT&SA 96 I 10.9% $3693.7
Stone &Youngberg 93 2 10.6 1128.0
PaineWebber [ncorporated 78 3 8.9 3686.4
Salomon Smith Barney Holdings 49 4 5.6 3416.0
Piper, Jaffray Inc. 44 5 5.0 328.4
Merrill Lynch &Co. 34 6* 3.9 1821.0
Sutro & Co. [nc. 34 6* 3.9 6373 I
Miller& Schroeder Financial 31 8 3.5 340.5
Goldman, Sachs &Co. 27 9 3.l 1959.9
Lehman Brothers 24 10* 2.7 2080.2
O'Connor& Company Securities 24 ]0* 2.7 259.8
Newman &Associates, Inc. 24 10* 2.7 303.2
Morgan Stanley Dean Witter 24 l0* 2.7 990.8
Westhoff, Cone& Holmstedt 21 14 2.4 199.5
George K. Baum & Co. 20 15 23 306.0
Bear, Stearns &Co. � l8 16* 2.0 2349.0
E.J. De La Rosa& Co. 18 16* 2A 118.0
Dain Rauscher Inc. l7 18 19 184.6 �
Prager, McCarthy & Sealy 16 19* 1.8 408.5
Seidler-Fitzgerald Public Finance 16 19* 1.8 3333
Prudential Securities Inc. l2 21* 1.4 381.5 i
BT Securities Corp. 12 21* 1.4 370.4
Mark Pressman 10 23 1.1 44.4
ARemis Capital Gro�p,Inc. 9 24* 1.0 34.7
Alden Capita] Markets, Inc. 9 24* 1.0 36.5
Kinsell, O'Neal, Newcomb & DeDios Inc. 9 24* 1.0 148.2
J.P. Morgan Securities Inc. 9 24* 1.0 974.9
Top 27 Totals 778 88.4 26534.6
Totals with All Managing Underwriters 880 100.0 27717.l
(*)Tie
�
$ February 9,1998/Specia�g in California Municipal Einance Phone: (805)640-3436
Municipal Volume Picks Up in 1997; Will 1998 Be Better?
On [his and accompanying pages, we present rankings-as measured by numbcr of issues-for underwriters,bond counsel and
financial advisers in 1997. Some prefer to list these rankings by dollar volume-those figures are also given, if you wish to do your
own calculations.
California Long-BTerm Munic paRissu'es (by number of issues) �
' Secunt�es Data Company (201)622 3100 �
Bond Counsel #of Issues Rank Mkt Share Principal
(Full Credit to Each Manager) ($�ni�) �
Orrick, Herrington & Sutcliffe 261 I 29.7% $11964.6 �
Jones Hall 132 2 15.0 I 699.8
� Stradling,Yocca, Carison, & Rauth 97 3 11.0 2707.4
'� Brown &Wood 47 4 5.3 1 179.7
Quint&Thimmig 42 5 4.8 592.9
�� Kutak Rock 35 6 4.0 1090.6
Nossaman, Guthner, Knox & Elliott 27 7 3.1 905.8
Pamela S. Jue, P.C. 23 8* 2.6 962.2
Best, Best& Krieger 23 8* 2.6 282.I I
Bowie,Arneson, Kadi & Dixon 22 10 2.5 146A '
O'Melveny& Myers 21 1 I 2.4 27153
Hawkins, Delafield & Wood 16 12 I.8 1219.6
Kronick, Moskovitz, Tiedemann & Girard l5 13 1.7 145.6
Leslie M. Lava 13 14 I.5 536.6
�� Daniel E. Lungren (Cali£Attorney General) 12 I S* 1.4 589.1 I
� Brown Diven& Hentschke 12 15* 1.4 126.9 I
' Fulbright&Jaworski I I 17 ]3 7q6.2
Webster&Anderson 10 18* I.l 35fi.5 �
Rutan &Tucker 10 LS* l.l 122.9 I
� Robinson&Pearman 9 20 I.0 1112.8
LeBoeuf, Lamb, Leiby & MacRae 8 21 09 177.7
Curls, Brown & Roushon 7 22 0.8 I022.6 �
Sturgis, Ness, Brunsell&Assaf 6 23* 0.7 34.4
Ochoa& Sillas 6 23* 0.7 912.8
Musick,Peeler& Garrett 6 23* 0.7 220.9
Top 25 Totals 871 99.0 31571.2 (**)
Indoshy Totals 880 100.0 27717.1
�' (*)Tie (**) Full Credit to Each Manager)
� - -- - --
_ _-_ _ ---
Phone: (805)640-3436 Specializing in California Municipal Finance/February 9,1998 9
Municipal Volume Picks Up in 1997; Will 1998 Be Better?
On this and accompanying pages, we present ranlcings-as measured by number of issues-for undenvriters, bond counsel and
financial adviscrs in 1997. Some prefer to list these rankings by dollar volume-those figures are also given, if you wish to do your
own calculations.
Financial Adviser Rankings, 1997
California Long-Term Municipal Issues (by number of issues)
Source: Securities Data Company(201)622-3100 �
Financial Advisers #of Issues Rank Mkt. Share Principal
(Full Credit to Each Manager) ($mil)
, Kelling Northcross & Nobriga, Ina 55 1 63% $ 5913
Fieldman, Rolapp &Associates 32 2* 3.6 6683
I Public Financial Management Inc. 32 2* 3.6 2329.0
O'Brien Partners, Inc. 24 4 2.7 3838.5
Dale Scott& Company, Ina 22 5 2.5 284.1
Rod Gunn and Associates 21 6 2.4 2513
Government Financial Strategies Inc. 20 7 23 233.7
Public Resources Advisory Group 19 8 2.2 4282J
, CGMS Incorporated 17 9 1.9 257.1
' Dain Rauscher [nc. 14 10* 1.6 520.9
C.M. de Crinis & Co. 14 10* 1.6 1286.9
� ProjectFina�ceAssociates 14 10* 1.6 140.3
� Kitahata& Company 10 13 L L 631.4
Howarth Montaguc &Associates 9 l4 1.0 726.0
American Uov't. Financial Services Co. 8 I S* 0.9 105.7
G.L Hicks Financial 8 15* 0.9 80.3 '
Sutro & Co. [ncorporated 8 IS* 0.9 515.2
Seidleo-Fitzgerald Public Finance 7 18* 0.8 184.4
� Leifer Capital 7 18* 0.8 168.7
i Andrew Ach &Associates 6 20* 0.7 80.4
Stone &Youngberg 6 20* 0.7 128.5
Evensen Dodge Inc. 6 20* 0.7 2083 '
HB Capital Resources Ltd. 5 23* 0.6 61.6 �i
Urban Futures Ina 5 23* 0.6 24.4
I Stephens McCarthy Kuenzel & Caldwell 4 25* 0.5 126.0
Price Waterhouse& Co. 4 25* 0.5 226.6
Piper Jaffray Inc. 4 25* 0.5 62.1
Berg &Co. Inc. 4 25* 0.5 106J
Califomia Financial Services 4 25* 0.5 47J
Top 29 Totals � 389 44.2 18167.9
Totals with Financial Advisers 432 49.1 19152.0
Totals without Financial Advisers 448 50.9 8565.1
[ndustry Totals 880 100.0 27717.1 (*)Tie
.�.
10 February 9,1998/Speciali�ng in California Municipal Finance Phone: (805)640-3436
On "Muzzled" Public Officials ... ... And Pico Rivera Disclosure
The fact tha[Califomia's state auditor has agreed to�eview Every year we have the privilege of sorts of calling public
the bond funds of several smaller California cities(see story on agencies and o[hers across the statc in an attempt to get thumb-
page four)is not a surprise Co us,and is iri fact a welcome devel- nail sketches about financially-troubled bond deals.In some ways
opment. it is easier than it used m be to get this inforn�ation,a�d in some
We have thought about writing an cditorial on this subject ways it isn't. Wc arc giving this issue some more thought for
for a long time,and we suppose we sat on the idea a bit too long editorials that will appear in our next edition. In particular, wc
given that the audit story eve�made it into The Wal!StreetJour- would like to share some thoughts about a certain bond trustec.
na/last week. (Granted,these developments are recent.) Restassured that disclosurc-related debates are alive and wcll
But there is a reason we were cautious about writing on this in the municipal markct, aod Cxlifornin co�tributcs its share of
topic wheo we firs[heard certai�allegations aIl the way back in examples to the mix.And that brings us to Pico Rivera Redevel-
1996. For one thi�g, it was not clear how __. __ opment Agency Redevelopment Project
._.__ ...--
widespread the alleged problem might be. '�, Number I, involving a 1989 iss�c of$632
But, even more important at the time, we � million tax allocation bonds. Because this
feared that an airing of the issues could be FT0111 tll@ � deal was sold before continuing disclosum
traced baek to some of our sources, who PUk111517CI S obligationswcreimposedalmostthrecyears
cleady did not want to be identified with for municipal s'ecurities,them arc those who
blowing the whistle about possible discrep- �QSk will say that nonc of the developments wdll
ancies in the way bond funds were handled. discuss had to be disclosed.Mtrybc not,from
There are various reasons people don't �- � a Icgal standpoint, but we can only remind -
want their namcs splattered all over newspapers in connection our readers again that bonds do trade in thc sccondary market,
with this issue. Ooe involves the tension that can arise when a without regard to legal distinctimis pertaining to disclosore.
staffer—be it a ti�ance ditector or other managcr—has to taise The issuc in Pico Rivcra is ticd ro thc phasing out of a
these issues with a ciry council or other governing board.Even if Northrop Grumman B-2 facility. �I'hat this plant is being down-
[he staffer had nothing to do with the alleged problem, messen- sized,and might even be closeti, is not a secret The topic has,at
gers can get shot�r at least given a good upbraiding—by rais- least for a couple ycars, bccn splashed promincntly across' the
ingcertainquestions.Evenmorcofaeoncerntous,thecitycoun- pages of the local press. A mm�icipal analyst probably should
cil members also can be fed informa[ion by other sourees who have discovered this with just a bit of due diligence. One would
might attempt ro downplay the allegations, or suggest that the expect investors to monftor the Northrop dcvclopments closcly,
problems rest with staffers rather than others. given that thc facility accountcd for a whoppin�; 79%of the tax
Whe[her or not this has been a problem in at least some of '�. revcnue at the timc thc bonds wcre sold.
the cities that are being audited is not our main eoncem here.But I As an added kickcr, tax assessmcnts on the property wcre
there have clearly been allegations—some ofthem very specific— � lowered sharply as the plant's operations were cut back, nnd as
� that bond funds havic either been manipulated or otherwise muved the recession hit property valucs.
around to maintain legally required balances. What many analysts apparently did not know, according to
The state auditor can provide a valuable service by clearing calls we have reccivcd, is that thc bond mserve Cu�d has taken
the air. Somcofthetargeted cities already insistthcy do nothave some hefry hits. In January, du bond trustee, Statc Street Bank
accounting or other problems. Fina Thcy have nothing to worry and Tmst Co., put out a notice that mentioned an August reserve
about.But we also have not had much luck trying to ge[informa- fund draw. [3y doing the math, it was apparent draws hud oc-
tion about the flow of funds in certain Marks-Roos pools, and it � curred eadicr as well. 'Phe rescrvc fund now has a 52.92 million
appcars the only way to get to that data is to have an outside '�. balancc, almost S3.4 million Icss th3n required at fully-fundcd
auditor step itt and foroe some detailed disclosum. levels.
Again, these are allegations. Let thc auditor separate the Pricing on the bonds did not seem to reflect this coneem, at
wheat from the ehatT, a�d then the market can put these long- i least not until recendy, when they tailed off. But the agency is
rumbling allegatio�s and mmors bchind it or, if neeessary, offi- ; atso looking at refinancing tlic issue, so anod�er qoestion might
cials can conduct further investigations. � arisc over how much prices should drop if a rcfunding is pos-
What is most troubling to us is the fact that certain public sible.
officials have felt"muzzled"by the situation,and concetned thut ! We will discass this is'suc a bit inore in thc next editioa But,
it would hurt them to encourage a public airing of these iss�es— � once again,we cnn only remind public agencies that if your story
cven though it is merited. docsn't get out in thc market,somcbody else is going to tell it for
Having an impartial outside party step i�to do the necessary you. And, if it appcars that soma people hear the story before
work is a good solution to that dilemma. others, somcbody is going ro be pisscd off. That is the casc with
Somepeople havecompLained about this senatiny.Well folks, �� the Pico Rivera simation,if the calls we received are any indica-
this is public financc,and it is about timc we received some pub- �� tion. Well, it's food fur thought that we'll digest a bit longer be-
lic answers to these private questions. • ' fore adding some more commentary. •
Phone: (805)640-3436 Specializing in California Municipal rinance/February 9,1998 ��
Judge Dismisses Charges on School Bond, Campaign Link
(continued from page 1)
agreed with Scott and the district,and last work or contnbutions would give one firm nicipal conferences in California have
Tuesday granted a motion for summary an edge over o[hers in competing for busi- warned localities to be careful abou[this
judgment that dismisses [hat part of the ness. Al[hough rumors and allegations issue, saying that some agencies have
suit.Judge Long said he did not find con- about such practices arise from time to gone up to[he line, if no[over it, in lob-
trary evidence to suggest that the contract time,specific proof ofren is hard to come bying for local ballot measures.They can
was for anything bu[ financial services. by,and some of the criticism is occasion- speak about such issues on[heir own time,
School district officials had argued that ally linked to baekbiting by competitors. but state law rest�icts activities whe�tax-
the eontract was daar about what Scott Nevertheless, speakers at past mu- paycr funds are i�volved. •
had becn hired to do, and tha[ the pay-
ment did not go beyond that service.
The Libertarian Party raised the is- �o was missing from your finaneing
suc bccause Dale Scott & Co. also pre-
pared a campaign manual for the bond team on your last bond sale?
measure, and one of its officials—Mitch
Templeton—provided counseling on vari-
ous aspects of the campaign The school '�t��'�"'� . - �,,�
district d�d not dispute that the financial f�� �� ** �� uua. ��' �� � �i
advisor worked o�the campaig�,but law- '° �
yers for the distr�ct and Scott argued that �
those services were provided free of
chargc and on a voluntary basis.
But LibCrtarian Parly oftiCials qucs-
tioned why representatives from San
� �IIVG6h11G11�
Francisco-based Scott&Co_had so much na.i.o�
interest in lobbying for a Southem Cali-
f'ornia bond issue, arguing that the ar-
rangcment failcd a smcll tcst.Judgc Long, ,;;
however, found no evidence that strings
were attached between the tinancial work
and thc political cffort. Hc did not dis- � � �� ��� ��� �`
. ,... .� .... ...�
miss the entire suit, so the Libcrtari:�n ��'- + �c'a� ,�� � ��
Party continues to argue that the school � � � � "
disVict illegally spent moncy on partisan And how much did their absence cost you?
banners and voter registratio�material.
Issues similar to the onc raised in The iovestment of bond proceeds is a complex and specialized profes-
sio�that is all too often ovedooked when tax-exempt issuers select their
Ventura have attracted actention in broader financing team.
public finanee cireles. Separately,the Se-
curities and Exchange Commission and Fund Services Associares, Inc. (FSA) is a SF.0 Registered Investment Ad-
[he Mu�icipal Securi[ies Rulemaking visor and member of the NASD specializi�g i� the investmen[ of bo�d
Board have tried to stamp out political proceeds. With experience in placi�g over $20 billio� of invesime�ts,
we are suited up and ready to join your ieam.
contributions from underwriters who
eompete for bond business in the same Call Lester Wood or Jim O'Connor Eoc more information o�how we can
locality. Critics of such contributions ar- make your next financing more effective.
gued that there were "pay-to-play"prin- Aleader in the inuestment o/'6ond proceeds since 1981
ciples buil[into such donations,especially Fund Services Assoeiates, I7tC.
when underwriters lived hundreds of
miles away from the politieians'districts. I875 Cencury Park Easc Suice 1345
Market participants have questioned Los Mgeles,G 90067
whether some financiers still find ways (310) 229-9170 &17C(310) 229-9178
around the limits, i� part by making so- �SOO� 562-43^JZ
called"sofr"contributions through other �.�,, n�x e i e� • s n� M a�e�, • ry e w v�, �k
mechanisms.The concenr—in the context �
Rec � s 'rrer: n Invesrmervr Anv � sons
of a school bond, for example—is that
informal agreements to provide other
..�
12 February 9,1998/Specia�ing in California Manicipal Finance Phone: (805)6403436
� The California Market
,
GASB 31 and Reserve Funds, Revisited Briefly
We raised questions about GASB 31 going to press said [hey had found little ferentials also would not trigger a"tech-
a�d bond reserve funds in the last edition, to be concemed about they had not ex- nical"default in and by themsclvcs.
but probably diddt answer some of them amined the issue exhaustively, howcver, Peter Schaafsma, executive dircctor
as thoroughly as we could have. and did not provide any subsequent on- of the California Debt and Invcstment
Amoug the questions were whether the-record eomments by last week. We Advisory Commission,also contacted us
marking to investments to fair value assume they didn't find the topic all that to say that GASB 31 has no impact on
would triggerpossible reporting implica- compelling! They had noted, howcver, CDIAC's rcporting requircments,such as
tions for bond reserve funds, especially that there is usually a small amotmt of those for Mdlo-Roos rescrve fiind drawa.
if it suggests falsely that a draw had been leeway in bond documents for small re- Rather than dwelling on the subject
madc. serve fimd shottfalls,before repotting re- beyond what it merits, wdll Icavc the
We assumed,based on the fact that a quirements kick in for national reposito- topic at thaL Just be aware of the issue
handful ofpeople had not given the topic ries. They doubted whether reserve fund when you're preparing your comprchcn-
m�ch thought, that the questions should shortfalls—resulting from marking in- sive annual (inuncial reports.
beraised.Butitalsoappearsthatthelack vestmentstomarket—wouldhiggersuch And. ifany specific incidents arisc
of interest is because the topic is a non- diselosure thresholds,given the relativcly that raise qucstions, we'II try to ans'wer
issuc of sorts. small sums at stake. thcm in thesome xrtidc next timc. Somc-
A eouple bond lawyers and an ac- Ba�ri�g some sort ofdisaster with re- thing about measuring twice,cuiting oncc
coun[antwho returned calls afterwe were serve fund investments,the valuation dif- ...bot don't�isk for x third article yct. •
The State's Troubled Bond Deals Still Have Plenty of Company
If your ageney has a troubled land- cies.) [f you throw in a rcdevelopment we Ao not cxpcct to sec are scads of new
backcd bo�d issue, or you are the owner deal, all but one of the 39 WatehList is- troubled deals popping out oC the wood-
of distressed bonds, you are not alonc. sucs are tied to special tax or assessment work in 1998. But uur optimism is tem-
Califomia's municipal defaultsjumped by deals.Of that total,the Bond�ldvisor has pered by last year's default record.'�
240% last ycar, a�d about $700 million issued 11 Dcfrtult Alerts totaling $20L4 (We havc quite a bit of insight into
of local bonds across the state remain on million. That does not mean defaults aro the WatchList because it is our dury to
a newsletter's "WatchList'� because of eertain on thosa issues, but it does signal make a ton of calls to ass'emble it. In our
various problems. that a default could oecur this ycar unless next edition in this publication, we will
It might sound like there has been tax payments or othcr solutions address huveafewthingstosayaboutdisclosure-
improvement, given that the WatchList rescrvc shortCalls. rclatcd mattcrs, and one of our Icast fa-
totaled about$933 million a year ago.Bot The newsletter rcported 16 defaults voritc bond trustccs.)
a good chunk of that declinc is cxplained in 1997,totalino S212.1 million,up Gom Cities that are on ihc fringc of large
by the fact there were so many defaulted the previous record of$882 million in meCropolitan re�*ions,or in morc isolated
issucs removed from the list, as opposed 1996, spre�d across six defaults. Half of areas, still are not sceing enough eco-
to a widespread reeovery among troubled the defaulls in 1997 involved Mello-Roos nomic activity to bail out troubled dis-
Mcllo-Roos and assessment bonds, the issues. Three more were Marks-Roos tricts.Palmdale,Hesperia,Tchachapi,and
CaliJi�rnrn Munze�pal/3ond Advlsor says pools holding Mello-Roos bonds. Four Rosamond arc just some of thc areas
in its Fcbruary edition. The monthly defaults involved 191� Act assessment where muldple distric[s face serious dc-
newsletter, based in Palm Springs, is tar- bonds, and only one, a hospital district, linqaencies and defaults.
getcd to individual invesrors in tax-ex- was not land-based. More workouts also are possible,and
empt bonds. The Bond Advrsor says therc is room a fcw are rcportcdly in various stagcs of
Land-based deals dominate thc Bonrl for optimism about the state's cwnomic planning. AI3 1224, passed last ycar to •
Advisor's WatchList,as they have for sev- comebaek."[twill help in certain regions, reform foreclosure law,also permits lim-
eral ycars.(The WatchList bo�ds are those and for certai�bond deals.It is also clear, ited tax amnesty programs—somc cities
describedasexperiencingsomedegrceof howevcr, that some areas—sueh as mighttakeadvantageofdiatprovisionthis
financial diffic�lry,primarily due to spe- smaller cities in the high desert--are not year in an attempt to generate interest i❑
eial tax and special assessmentdelinquen- seeing m�ch buildiog aetivity yet. What property burdened with dclinquencics. •