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NOTICE OF ADJOURNED MEETING
OF
THE PALM DESERT INVESTMENT AND FINANCE COMMITTEE
NOTICE IS HEREBY GIVEN that the Investment and Finance Committee regular
scheduled meeting of Wednesday, August 19, 1998, at 11:00 a.m. was canceled and adjourned to
the next regular scheduled meeting, Wednesday, September 16, 1998 at 11:00 a.m. in the North
Wing Conference Room.
Noticed and Posted,
LCCCc� �C
Veronica L. Abarca, Recording Secretary
Investment and Finance Committee
August 17, 1998
Veronica Abarca
AGENDA
INVESTMENT & FINANCE COMMITTEE
WEDNESDAY, August 19, 1998— I1:00 A.M.
NORTH WING CONFERENCE ROOM
�**********�****«�**�*:�**********+*******.***,.*****+.***«******«*************
I. CALL TO ORDER
� II. ROLL CALL
III. APPROVAL OF MINUTES
Rec: Approve the Minutes of June 17, 1998 as submitted.
Action:
IV. ORAI, COMMUNICATI0IVS
A. Any person wishing to discuss any item not otherwise on the agenda may
address the Investment& Finance Committee at this point by giving 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 Partnershios Bac round Checks for
ection 4
Rec: Report by Carlos Ortega.
Action:
B. Bond Issuance by Palm Desert Financing Authority
Rec: Status Report on new Bonds for Bighom.
Action: •
AGENDA-INVESTMENT & FINANCE COMMITTEE August 19, 1998
*******�********�******�***�*****�*********************************«**********
VI. NEW BUSINESS
A. ('�' y and Redeve►Qpment Agg►�c,v Investment Schedule To be
distributed at meeting.
Rec: Review and submit to the next City Council agenda. Review the
presentation on the investment graphs. Review the investment
activity during the month of July. Review status of capital projects
and cash flow projections.
Action:
B. Review Short Term Investments Maturin�gust 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 Iavestment Fund Monthly Reuort
Rec: Informational item for the Committee to review. No action
required.
D. 0 1 Fin ncial r i o ' To be distributed at
meeting.
Rec: Report and submit to City Council.
Action:
E. Parkview Professional Office Buildings -Financial Reports
Rec: Review of 7/31/98 financial statements.
Action:
F. Desert Willow Golf Resort Financial Iaformation for July 1998 To be
distributed at meeting.
Rec: Review and file report.
Action:
AGENDA-INVESTMENT & FINANCE COMMITTEE August 19, 1998
****�**�***************�********************�,r********,r*«*****.***************
G. Palm Desert Recreation Facilities Corporation Income Analysis for
ul 1 8 To be distributed at m¢eting.
Rec: Review and file report.
Action:
VII. REPORTS AND REMARKS
A. Reuorts and Remarks bV Anv Committee Member
B. itPms to be placed on the Next Agenda
VIII. NEXT MEETING DATE
Next regulazly scheduled meeting is:
��Yc��i�c��d;��r„ ��ero��tc�mmibce� Il(6o Il��� �4 �1ll°�� ��mm�
IX. ADJOURNMENT
�-r-� •
� � M�nutes
Finance Committee
CONVENE On June 17, 1998, the Investment & Finance Committee was called to
order at 11:04 a.m. by Mr. Paul Gibson.
ROLL CALL Paul Gibson, Ray Diaz, Bob Spiegel, Dave Erwin, Murray Magloff, Bill
Veazie, Carlos Ortega, Jean Benson and Veronica Abarca, recording
secretary.
APPROVAL OF MINUTES Upon motion by Mr. Bab Spiegel, and seconded by Mr. Bill Veazie, the
Minutes of the April 1 S, 1998 meeting were APPROVED as submitted.
Jean Benson abstained from the motion.
ORAL COMMUNICATIONS None.
OLD BUSINESS . A. Status of Public and Private Partnershi s Background
Checks for Section 4
Mr. Ortega reported with regards to the IROC agreement there is a
transfer provision in which the project can be transferred to an affiliate
of IROC with specific conditions as defined by the contract. The
project can also be transferred to somebody other than an affiliate,
however the board needs to approve the transfer. Transfer provisions
are not uncommon, such as Desert Crossings and Gardens at EI
Paseo, but there are restrictions which need to be met.
The City of Palm Desert requires that a background check be done on
all transfers. There was a subcommittee comprised of Dave Ervvin,
Paul Gibson, Carlos Ortega, Ray Diaz and John Wohlmuth, appointed
to deal with the background check. The subcommittee has reviewed
the background information and has approved the transfer to an
affiliate, which does not need council approval, but will notify them of
the transfer.
On a motion by Mr. Ueazie, secnnded by Mr. Gibson the committee received
the recommendation of the subcommittee fnr approval and forwarded the
decision to be received and filed by cnuncil.
B. Bond Issuance by Palm Desert Financing Authoritv_
1
Minui;es
I�'inance Committee
Mr. Ortega reported that at present we are creating an assessment
district for the Canyons at Bighorn in addition to issuing the Series B
Bighorn financing which is part of the original project. Combined they
represent around $35-$40 million. We are looking at late summer of
1998 for the formation of the District and the issuance of the bond.
Mr. Spiegel questioned how this would be paid back. Mr. Ortega �
stated that costs would be paid back the property owner, either all at
once or in installments. Mr. Ortega stated that the homeowners are
responsible for the interest and all other costs.
Mr. Ortega stated that the Redevelopment Agency is merely the
"middle man". The interest rate would be around the 6's to mid 6's.
Bond issuance may not be until September, 1998.
C. Report on McCallum Theatre
Mr. Gibson will report at the August 15, 1998 meeting.
New Business A. City and Redevelooment Agency Investment Schedule
Mr. Gibson reported the major changes which occurred in May were
due to property tax revenues and the purchase of federai agency
issues and U.S. Treasury bonds for about $10 million.
The Redevelopment Agency still has the issue of high fidelity. Mr.
Gibson again requested a construction schedule so that he could take
money out and re-invest. Mr. Gibson also requested information on ,
the reserve of the surety bonds. -
Mr. Gibson stated that unfortunately due to the foreign monies, interest
rates are being driven downward. A 2 to 5 year investment will only
earn about 5.4%, where LAIF is earning 5.6% and is accessible daily.
Receive and file report.
B. Review Short Term Investments Maturing ih
June. 1998
Mr. Gibson stated there was no recommendation at this time. The
next maturity will be in August, 1998.
Receive and file report. •
2
Minutes
I'inance Committee
C. State of California Local Agency Investment fund
Monthly�3eD01'�
Mr. Gibson reported that as of April we are earning 5.62% and our
balance is $19.345 miilion. The Redevelopment Agency has $14.562
million.
Ms. Benson told Mr. Gibson that the City of La Quinta is removing their
investments out of LAIF and putting them in fidelity and mutual funds.
Mr. Gibson believes there is more risk in the fidelity and mutual funds
than in LAIF. LAIF is very diversified and operated by the State of
California, where fidelity is run by a private operator.
A note to the committee: Along with the City Auditor's, staff is finalizing
the report on cash investments. One of the items under review has to
do with fidelity and mutual fund investments. We will be sending them
a letter which states that if they violate the State Codes and/or
Investment Policy we do not wish to stay in the pool. We will have
them sign off on that, and review them annually. We will be asking
them to surrender the funds immediately.
Receive and file report.
D. Monthly Financial R@port for Cip/ Council
Mr. Gibson reported that the sales tax through May is at $7.125
Million. Transient Occupancy Tax is $5 million versus a budgeted $4
million. At the end of the year we should have an estimated $6 million,
in T.O.T. and $9.4 million in sales tax. This years, Year to Date
. revenues ar.e at $22.8 million compared to last years $20.86 million,
we are up $2.06 million this year.
Mr. Gibson reported the budgeted expenditures were $23.392 million
and at present we are right on line with $23.027 million.
Mr. Gibson reported that on the Redevelopment Agency report we
received the tax increment. Mr. Diaz questioned what was included in
"Other Revenue" on the report. Mr. Gibson stated that he would have
staff add a footnote to include the source. Mr. Gibson stated that the
source of the "other revenue" was attributed to the Housing Authority
rent revenues. Mr. Gibson pointed out the last page of the report
which detailed the Housing Authority activity.
Receive and file report.
3
Minutes
I�'inance Committee
E. Park view Professional Office Buildings - Financial
Re�
Mr. Gibson reported that currently staff is working with Met Life and
Golf Dimensions to move to another office space so that State
Rehabititation could have the requested square footage.
Mr. Spiegel asked about the status of the conference center at the
office buildings. Mr. Gibson stated that staff is waiting on CVAG's
approval of the lease agreement for 70 or 25 years, prior to committing
to the conference center remodeling. Mr. Diaz suggested that we go
to council to request the money for the conference center remodel
prior to receiving the lease. Mr. Gibson stated that council has already
approved the money, now just need to get the lease. Mr. Spiegel
added that there should be a clause in CVAG's lease stating "if lessor
vacates prior to end of lease, must pay $10,000 for each year
remaining on lease."
Mr. Spiegel asked what is being done with the money. Mr. Gibson
stated that when the office buildings were transferred from the RDA,
� the RDA kept the assets totaling $460,000, as per counsel's
interpretation of the law. Mr. Gibson stated that the uitimate goal is to
set up accumulated depreciation and then go to council with the
surplus funds and suggestions as to what it can be used for (i.e. Home
Improvement Program, Civic Center Park, Amphitheatre or Library).
Mr. Gibson will call Corky at CVAG,and check on status of the lease
agreement. ,
. Receive and file report.
F. Desert Willow Golf Resort Financial Information for
May. 1998
Mr. Gibson stated that the revenues for May look good compared to
last year. Obviously throughout summer time, those numbers will
decrease. Next years budget will no longer reflect the depreciation
costs.
Mr. Spiegel noted that the pro shop is only showing an income of less
than $1,000 a day, not making much money. Mr. Ortega stated that
through budget review, staff noticed that they do not show "true cost
accounting". Desert Willow employees have been instructed to show a
true cost accounting for next year which will include charging the
4
Minutes
I'Inance Committee
correct department. He noted that they are currently showing a higher
profit on the golf side and that will be changed.
Mr. Spiegel stated that he had noticed a capital expense of$60,000,
yet no capital expense was listed in the budget. Mr. Gibson stated at
mid-year budget those items were approved by council.
Ms. Benson asked why the salaries also show an increase. Mr.
Gibson stated that the South Course has required additional staff.
Receive and file report.
G. Palm Desert Recreation Facilities Corooration Income
Analysis for May. 1998 T
Receive and file report.
H. Reports and Remarks bv �nv Committee Member
Mr. Spiegel asked what the status of the Marriott was. Mr. Ortega
stated that escrow would be closing today and are now reviewing
contractors. The City should have $11 million cash deal by the end of
the day.
Mr. Ortega summarized the meeting which was held for the renters at
the various housing authority owned properties. Mr. Ortega believes
that the meeting went better than they originally expected. Tenants
seem to be happy that the units are being put under such strong ,
maintenance. Mr. Ortega stated that at least 20 people showed for the
meeting. ,
Mr. Ortega stated that there was $1.8 million dollars allowanced to
maintain the properties. Priorities have been established such as
roofs and air conditioning. Mr. Spiegel and Ms. Benson stated that the
car-ports at Las Serenas needed to be done prior to any maintenance
at One Quail Place. They believe that it should not cost much money
to repair and would mean a lot to the tenants.
Mr. Diaz asked when staff will be going to council with the designated
priorities to spend the $1.8 million on maintenance. Mr. Ortega stated
that a schedule has already been put together and will be attached to
the budget for review at the upcoming council meeting on June 25.
5
Minut;es
I'Inancc Commil;tce
Mr. Magloff asked what the status with the Wymer case was. Mr.
Gibson stated that there have been no more settlements. Court dates
have been set for OctobeNNovember of 1998. Mr. Wymer will
probably be released before that time.
NEXT MEETING DATE The next Investment & Finance Committee meeting will be held
Wednesday, August 19, 1998 at 11:00 a.m. The July 15, 1998
meeting was canceled due to lack of quorum.
ADJOURNMENT Upon motion by Murray Magloff and seconded by Bill Veazie the
Investment & Finance Committee adjourned at 12:05 p.m.
Respectfully submitted,
. �%�J1��[Kx-( ��:!`r�W7�,�
Veronica Abarca
Recording Secretary
6
STATE OF CALIFORNIA MATT FONG, Treesurer
� OFFICE OF THE TREASURER
SACRAMENTO -�
i
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 942809
Date: 06/30/96 SACRAMENTO, CA 94209-0001
Page : O1 JUNE, 1998 STP.TEMENT .
ACCOUNT NUMBER: 98-33-621
CITY OF PALM DESERT
ATTN: CITY TREASURER
73510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATE TYPE NO CALLER AMOUNT BALANCE
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING BALANCE - REG $19 , 345, 000 . 00
---------------
ENDING BAi,ANCE - REG � $19, 345 , 000 . 00
---------------
GRAND TOTAL $19 , 345 , 000 . 00
---------------
---------------
SUMMARY
TRAN COUNT TOTAL DEPOSTT AM� '"OTAL WITHDRA47AL AMT
---------- ----------------- -------------------- •
r��
REG 0 $0 . 00 $0 . 00 ;
f
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OYI,�j : 131,� �_' -
�. ��VA ,
STATE OF CALIFORNIA
MATf FONG Tressuis•
' OFFICE OF THE TREASURER
SACRAMENTO
-:
July 17, 1998
TO ALL LOCAL AGENCY INVESTMENT FUND PARTICIPANTS
Effective August 1, 1998, the Local Agency Investment Fund (LAIF)will convert from
its current system to a new system named Oracle. The new system brings many benefits
to LAIF and its participants such as becoming Yeaz 2000 compliant; ability to provide for
continued growth and expansion of LAIF, and a more comprehensive reporting
capability.
The most noticeable change for pazticipating agencies will be t6e non-sequential
-�onfirmation number. This non-sequential number will provide even greater security to
the LAIF system.
Office hours for LAIF will remain the same, 7:30 a.m. to 4:00 p.m. Same day credit will
be given all transactions made between 7:30 a.m. and 9:30 a.m. After 930 a.m. credit
will be given for the following day. You may call up to 10 days in advance to make
transfers.
Because the new system is faster and more efficient, LAIF staff will be able to take
transactions for future dates while current reports are running. There will no longer be
"down" time while waiting for reports.
We believe the new system will allow us to serve you with greater efficiency. Should
you have any yuestions regarding the new system or have other needs or questions,
please feel free to cal] me at (916) 653-3001.
Patri ' A. Beal
`j�6(...�/ ��
Administrator
Local Agency Investment Fund ,
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF JUNE 1998 WITH JUNE 1997
(Dollars in Thousands)
JUNE 1998 NNE 1997 CHANGE
Average Dai]y Portfolio $33,843,340 $30,295,908 + $3,547,432
AccruedEamings $157,742 $141,109 +$16,633
Effective Yield 5.671 5.667 + .004
Average Life—Month End(in days) 212 232 -20
Total Security Transacrions
Amount , $26,644,272 $21,569,932 +$5,074,340
Number 591 489 +�02
Total Time Deposit Transactions
Amount $542,380 $186,100 +$356,280
Number 56 32 +z4
.4verage Workday InvestmentActiviry $1,235,757 $1,036,001 +$199,756
Prescribed Demand Account Balances
ForServices $168,322 $140,675 +$Z7,(�q7
For Uncollected Funds $177,571 $175,698 +$1,873
LOCAL AGENCY INVESTMENT FUND*
SUMMARY OF ACTIVITY
JUNE 1998
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$11,962,203,080.28 $1,073,043,000.00 $1,302,719,459.66 $11,732,526,620.62
'Local Agency Inveshnent Fund Invested Through Pooled Money Investrnent Account
� State of California
Pooled Money Investment Account
Market Valuation
6/30/98
D886CIJ�G�f�c�t � ..�:rx�'..S�f.lfll�CAT���.�GS� . } � � s� ��- �: :� .:
� s � n r E: � � x -.
: s �. ?��a� ya� . A�lYI@ti;hl�ef$d�f'�!i'G�Ix��au.::fkrl�nr�rl���xst n�ra �C�t��t#� �^ ;.,. �ICC�tredl�t8r2Si :
United States Treasu :
Bilis $ 2,718,452,394.88 $ 2,772,839,358.99 $ 2,774,038,860.00 NA
Notes $ 5,617,925,693.11 $ 5,611,215,275.65 $ 5,619,382,200.00 $ 71,157,557.78
Federal A enc :
Bonds $ 1,635,102,703.52 $ 1,634,862,025.66 $ 1,635,160,723.35 $ 27,859,51220
Floaters $ 170,000,000.00 $ 170,000,000.00 $ 169,910,400.00 $ 1,284,069.40
MBS $ 127,080,948.95 $ 127,080,948.95 $ 127,925,146.97 $ 748,631.94
GNMA $ 2,301,732.52 $ 2,301,732.52 $ 2,625,536.00 $ 22,743.99
SBA $ 236,728,529.53 $ 236,643,762.07 $ 238,275,333.90 $ 2,362,434.92
FHLMC PC $ 22,483,531.74 $ 22,483,531.74 $ 24,038,836.16 $ 361,117.16
Discount Notes $ 519,566,096.12 $ 522 530 474.63 $ 522,114,450.00 NA
Bankers Acce tances $ � 20,758,063.33 $ 20,841,535.61 $ 20,844,646.17 NA
cor orate:��
Bonds $ 1,001,231,468.03 $ 1,000,471,876.43 $ 1,000,306,475.78 $ 16,474,442.82
Floaters $ 722,661,949.38 $ 722,605,494.83 $ 722,752,075.50 $ 3,624,915.13
CDs $ 4,767,683,438.61 $ 4,762,147,667.93 $ 4,761,260,156.14 S 41,562,598.35
Bank Notes $ 1,270,976,190.00 $ 1,270,976,190.00 $ 1,270,738,665.89 $ 9,877,744.46
Re urchase A reements NA NA NA NA
Time De osits $ 1,544,890,000.00 $ 1,544 890,000.00 $ 1,544,890,000.00 NA
AB 55 & GF Loans $ 2,051,393,401.29 $ 2,051,393,401.29 $ 2,051,393,401.29 NA
Commercial Pa er $ 9,387,431,19024 $ 9,446,717,564.45 $ 9,446,571,062.51 NA
Reverse Re urchase NA NA NA NA
T07AL $ 31,616,667,331.25 $ 31,920,000,840.75 $ 31,932,227,969.66 $ 175,335,768.15
Fair Value Including Accrued Interest $ 32,1o7,56a,737.ei
Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participating dollar equals the fair value divided by the amortized cost (1.000383055).
As an example: if an agency has an account balance of$20,000,000.00, then the agency would report its
participation in the LAIF valued at $20,007,661.10, or$20,000,000.00 x 1.000383055.
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E�rn�rt c�f rt�ta1 fz�nds �Ea�+�€T �r� ari �r�er�u�`� �eguEar a���unrt batar�+�e f.r�m
;. ,
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�r� $x�€npt frtsrn;�thi��ir��2�c�n;
��ver�[ to�al gt�rrernrnent�[ eg�ri���s �ai�ic ��Iw�r�tage �� 't'�e raise
in ;cap and as a �u� '�e fta�asnr�r�� r� � �kd+��arn �f I,�4IF rsguiar `
�ccau�� ilspos�ts �� �f ;��€ty �`;���$. ;
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��� ��/�:�tl�<��:�(���� y 433 N` 3��� ��M �.� . �� \ �`q.����y.��iY�I(���y��/�yy���/�M
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;s; - WBLCS FARGO BAMK 1/PDATF � ��q8��y �vestment I
\` W e I I s F a r g o B a n k h a s � Advisory Board Meedng �
announced that effective Ju/ 24, �
Y � The Local Agency Investment �
1998, Local Agency Investment 1 AdvisoryBoardhelditsquarterlyboard I
Fund (LAIF) participants will no � meeting on June 3, 1998 at the State �
longer have access to the toll free � Treasurer's Office. �
dedicated LAIF line (888-WFB-LAIF). � A synopsis of the meeting is �
LAIF participants, as an � included with your June 1998 �
alternative, have the option of � statement. �
contacting their Relationship t-----_�__��_�����
Manager at Wells Fargo, utilizing the .y "`:�
PC Manager or Infotouch programs �����
offered through Wells Fargo, or � "'�
calling 800-962-9777 to perform a `� '�"� �nestions �
LAIF transfer.
please Do you h've a question you would like to ask the
Fo� mOre information, Trcasurer. SendittotheLocalAgencylnvestment
call Cynthia Nepomuceno at Wells Fund, PO Boz 942809, Sacramento, California
Fargo Bank at (415) 243-7574. 94zo9-000i.
• :
SYNOPSIS OF MINUTES
LOCAL AGENCY ADVISORY BOARD
Meeting of June 3, 1998
The first issue was a report by Dan Dowell, Assistant Chief of Investments,
indicating that the State Treasurer's Office, Bureau of State Audits;
Department of Finance and the State Controller's Office had reached
agreement as to how the Pooled Portfolio would comply with GASB 31 and
report its Fair Value to all pool participants. LAIF participants received a
sample with May's monthly reports. June 30, 1998 Market Valuetion will
include the Fair Value reporting and will be received by participants with
their June, 1998 monthly statements.
The second issue dealt with LAIF's system re-write. It is anticipated that
the parallel testing will conclude at the end of July and LAIF will convert to
its new system "Oracle" on August 1 , 1998.
The third issue was the announcement that William C. Dudley, Managing
Di�ector and Director of U. S. Economic Research for Goldman, Sachs and
Co., will be a featured guest speaker at the September 19, 1998 LAIF
Annual Conference. The LAIF Board approved the conference registration
fee of $100.00 per person.
The fourth issue was a request from the Bay Area Toll Authority (BATA) for
a one-time exemption to the $30 million maximum limit. BATA is a newly
created local agency who has its funds in the Surplus Money Investment
Fund (SMIF) which is represented in the Pooled Money Investment
Account portfolio. Legislation does not allow local agencies to maintain an
account in SMIF. The LAIF Board felt that BATA as a local agency
qualifies to participate in the LAIF, therefore the only real exemption was
the amount of funds. The Board agreed to grant a one-time exemption in
the amount of $450 million for the specific term of July 1, 1998 to
January 29, 1999, at which time BATA will be required to draw their funds
down to the maximum limit allowed in LAIF.
The fifth issue was the announcement that the State Treasurer agreed to
increase the maximum deposit limit for particip�ting agencies from $20 to
$30 million, effective July 1 , 1998.
_ _ _ _ __ _ _ __ _
STATE OF CALIFORNIA � MATT FONG.ireesurer
OFFICE OF THE TREASURER -
SACRAMENTO �
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 94?,809
Date : 06/30/98 SACRAMENTO, CA 94209-0001
Page: O1 JUNE, 199B STATEMENT
ACCOUNT NUMBERc 65-33-015
PALM DESERT REDEVELOPMENT AGENCY
ATTN: PAUL GIBSON, TREASURER
73-510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTZON
DATE DATE TYPE NO CALLER AMOUNT SALANCE
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING 9ALANCE - REG $19, 760, 000 . 00
---------------
ENDING BALANCE - REG $19 , 760 , 000 . 00
---------------
GRAND TOTAL $19, 760, 000 . 00
---------------
---------------
SUMMARY
TRAN COUNT 4'OTAL bEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- --------------------
REG 0 $0 . 00 $0 . 00
r_;
c~� _
r - -.
( '
^ r•.� ��j �
��L�/v v � '
vr '�v' — `.� �� ..
._� '_• �
STA7E OF CALIFORNIA MATf FONG, irsasuror
OFFICE OF THE TREASURER
SACRAMENTO
July 17, 1998 �
TO ALL LOCAL AGENCY INVESTMENT FUND PARTICIPANTS
Effective August 1, 1998, the Local Agency Investment Fund(LAIF)will convert,from
its current system to a new system named Oracle. The new system brings many benefits
to LAIF and its participants such as becoming Year 2000 compliant; ability to pmvide for
continued growth and expansion of LAIF, and a more comprehensive reporting
capability.
The most noticeable change for participating agencies will be the non-sequentia!
�onfirmation number. This non-sequential number will pmvide even greater security to
the LAIF system.
Office hours for LAIF will remain the same, 7:30 a.m. to 4:00 p.m. Same day credit will
be given all transactions made between 730 a.m. and 9:30 a.m. After 9:30 a.m. credit
will be given for the following day. You may call up to 10 days in advance to make
transfers.
Because the new system is faster and more efficient, LAIF staff will be able to take
transactions for future dates while current reports aze running. There will no longer be
"down"time while waiting for reports.
We believe the new system will allow us to serve you with greater efficiency. Should
you have any questions regarding the new system or have other needs or questions,
please feel free to call me at (916) 653-3001.
Patri �a A. Beal
`,��:� ��-
Administrator
Local Agency Investment Fund ,
POOLEb MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF NNE 1998 WITH JUNE 1997
(Dollars in Thousands)
JIJNE 1998 ]LJNE 1997 CHANGE
Average Daily Portfolio $33,843,340 $30,295,908 +$3,547,432
AccruedEamings $157,742 $141,109 +$16,633
Effective Yield 5.671 5.667 + .004
Average Life—Month End(in days) 212 232 -20
Total Security Transac[ions
Amount , $26,644,272 $21,569,932 +$5,074,340
Number 591 489 +102
Total Tune Deposit Transacrions
Amount $542,380 $186,100 +$356,280
Number 56 32 +24
Average Workday Investment Activiry $1,235,757 $1,036,001 - +$199,756
Prescribed Demand Account Balances
ForServices $168,322 $140,675 +$27,647
For Uncollected Funds $177,571 $175,698 +$1,873
LOCAL AGENCY INVESTMENT FUND*
SUMMARY OF ACTIVITY
JUNE 1998
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$11,962,203,080.28 $1,073,043,000.00 $1,302,719,459.66 $11,732,526,620.62
*Local Agency Investrnent Fund Invested Through Pooled Money lavestmrnt Account �
State of California
Pooled Money Investment Account
Market Valuation
6/30/98
�SC�.y�tli3�xa'U.a'��eanh�3��� ��il� '��G8 �s� x�l`>x"�'':4:' �a�„� ,v�u>.:k.:o:r.�:s:<,�..:,,>. :.::. : .
., •'R'M �g ...y. '� � �F x a�` r�3 � c ��3�����5�°da� �'S "'G :vs'� s ' . ''
?;2 �c y�a� Sre�� S$a�re� ..x a.,�r y �z � t. ��`��; $ r � � � c�� a.saD c a�`eR ¢ � s : .
.
,k�tiz�..«�R.wt`���';¢Ac`,��k.'x.t�,'L�,'r.. . . .�.�'.�[1�1'�lti�.'�.�I�x4��.��.'��In�� .. ��...>>.���^�.A.`k.�Y$��`�^'`?t a..�"G�E�Qf,{��AZBf�SR°:
United States Treasu :
Bills $ 2,718,452,394.88 $ 2,772,839,358.99 $ 2,774,038,860.00 NA
Notes $ 5,617,925,693.11 $ 5,611,215,275.65 $ 5,619,382,200.00 $ 71,157,557.78
FederelA enc :
Bonds $ 1,635,102,703.52 $ 1,634,862,025.66 $ 1,635,160,723.35 $ �27,859,51220
Floaters $ 170,000,000.00 $ 170,000,000.00 $ 169,910,400.00 $ 1,284,069.40
MBS $ 127,080,948.95 $ 127,080,948.95 $ 127,925,146.97 $ 748,631.94
GNMA $ 2,301,732.52 $ 2,301,732.52 $ 2,625,536.00 $ 22,743.99
SBA $ 236 728,529.53 $ 236,643,762.07 $ 238,275,333.90 3 2,362,434.92
FHLMCPC $ 22,483,531.74 $ 22483,531.74 $ 24,038,836.16 $ 361,117.16
Discount Notes $ 519,566,096.12 $ 522,530,474.63 $ 522 114 450.00 NA
Bankers Acce tances $ ' 20,758,063.33 $ 20,841,535.61 $ 20,844,646.17 NA �
Cor orate��
Bonds $ 1,007,231,468.03 $ 1,000,471,876.43 $ 1,000,306,475.78 $ 16,474,442.82 .
Floaters $ 722,661,949.38 $ 722,605,494.83 $ 722,752,075.50 $ 3,624,915.13
CDs $ 4,767,683,438.61 $ 4,762,147,667.93 $ 4,761,260,156.14 $ 41,562,598.35
Bank Notes $ 1,270,976,190.00 $ 1,270,976,190.00 $ 1,270,738,665.89 S 9,877,744.46
Re urchase A reements - NA NA � NA NA
Time De osits $ 1,544 890 000.00 $ 1 544 890 000.00 $ 1 544 B90 000.00 NA
AB 55& GF Loans $ � 2,051 393,401.29 $ 2 051,393 401.29 $ 2,051,393,40129 NA
Commercial Pa er $ 9,387,431,190.24 $ 9,446 717,564.45 $ 9 446 571,062.51 NA
Reverse Re urchase NA NA NA NA
TOTAL $ 31,816,667,331.25 S 31,920,000,840.75 $ 31,932,227,969.66 $ 175,335,768.15
Fair Value Including Accrued Interest $ 32,107,563,737.e�
Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participating dollar equals the fair value divided by the amortized cost (1.000383055).
As an example: if an agency has an account balance of$20,000,000.00, then the agency would report its
participation in the LAIF valued at $20,007,661.10, or$20,000,000.00 x 1.000383055.
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;, - �NF[LS Ti1 RG0 BAMK UPDATf' � �l p8en�y investmeat 1
`` W e I I s F a r g o B a n k h a s � Advisory Boacd Meeting �
announced that effective Ju/y 24, � The Local Agency Investment j
1998, Local Agency Investment I AdvisoryBoardhelditsquarterlyboard 1
Fund fLAIF) participants will no � meeting on June 3, 1998 at the State �
longer have access to ihe toll free � Treasurer's Office. ;
dedicated LAIF line (888-WFB-LAIF►. � A synopsis of the meeting is �
LAIF participants, as an � included with your June 1998 �
alternative, have the option of 1 statement. �
contacting their Relationship �________________i
Manager at Wells Fargo, utilizing the :��+��
PC Manager or Infotouch programs �����
offered through Wells Fargo, or � '""'
calling 800-962-9777 to perform a ? '���� �nestions �
LAIF transfer.
Do you have a question you would like to ask the
For more information, please 7rcasurcr? Send itto the Local Agency Investment
call Cynthia Nepomuceno at Wells Fund, PO Boz 942809, Sacramento, California
Fargo Bank at 1415) 243-7574. 9a2o9-000i.
SYNOPSIS OF MINUTES
LOCAL AGENCY ADVISORY BOARD
Meeting of June 3, 1998
The first issue was a report by Dan Doweli, Assistant Chief of Investments,
indicating that the State Treasurer's Office, Bureau of State Audits,
Department of Finance and the State Controller's Office had reached
agreement as to how the Pooled Portfolio would comply with GASB 31 and
report its Fair Value to all pool participants. LAIF participants received a
sample with May's monthly reports. June 30, 1998 Market Valuation will
include the Fair Value reporting and will be received by participants with
their June, 1998 monthly statements.
The second issue dealt with LAIF's system re-write. It is anticipated that
the parallel testing will conclude at the end of July and LAIF will convert to
its new system "Oracle" on August 1, 1998.
The third issue was the announcement that William C. Dudley, Managing
Di�ector and Director of U. S. Economic Research for Goldman, Sachs and
Co., will be a featured guest speaker at the September 19, 1998 LAIF
Annual Conference. The LAIF Board approved the conference registration
fee of $100.00 per person.
The fourth issue was a request from the Bay i4rea Toll Authority (BATA) for
a one-time exe.mption to the $30 million maximum limit. BATA is a newly
created local agency who has its funds in the Surplus Money Investment
Fund (SMIF) which is represented in the Pooled Money Investment
Account portfolio. Legislation does not allow local agencies to maintain an
account in SMIF. The LAIF Board felt that BATA as a local agency
qualifies to participate in the LAIF, therefore the only real exemption was
the amount of funds. The Board agreed to grant a one-time exemption in
the amount of $450 million for the specific term of July 1, 1998 to
January 29, 1999, at which time BATA will be required to draw their funds
down to the maximum limit allowed in LAIF.
The fifth issue was the announcement that the State Treasurer agreed to
increase the maximum deposit limit for participating agencies from $20 to
$30 million, effective July 1, 1998.
__ __.. _ ___ _ _. _
� , ,
STATE OF CAUFOPNIA MATf FONG. Treasurer
. OFFICE OF THE TREASURER
SACRAMENTO
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 942809
Date: 05/31/98 SACRAMENTO, CA 94209-0001
Page: O1 MAY, 1998 STATEMENT
ACCOUNT NUMBER: 65-33-015
PALM DESERT REDEVELOPMENT AGENCY
ATTN: PAUL GIBSON, TREASURER
73-510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATE TYPE NO CALLER AMOUNT BALANC�
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING BALANCE - REG $14,562, 151 .25
05�15�98 05�15�98 . RD 734 JER $5,200� 000.00 $19,762, 151 .25
05�15�98 OS/15�98 RW 735 JER -$2, 151 .25 $19,760, 000 . 00
ENDING BALANCE - REG $19,760, 000 .00
---------------
GRAND TOTAL $19,760,000.00
---------------
---------------
SiJNIMARY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- --------------------
REG 2 $5, 200, 000 . 00 -$2, 151 .25
��21 C� � L>w'
� : VA �-J K.�
Reporting Participant Fair Value
As we fast approach the end of our fiscal yeaz, we are preparing to meet all of the
requirements of Statement 31 that pertain to extemal investment pool sponsors. One of
the requirements of the Statement that is creating considerable interest and anticipation is
the requirement for this office to fumish local agency pool members with a fair value
� measure of their participation in the pool as of June 30`n
Throughout the drafting period of Statement 31,we continually asked GASB just
what the participation was to be measured against. At first, GASB responded that the
ending fair value was to be measured against beginning fair value. We countered that
beginning fair value was not the appropriate measure for a fund that pays out changes in
fair value due to amortization regulazly throughout the yeaz. Through examples we
showed the Board that a more appropriate measure of risk would be the measurement of
ending fair value to ending amortized cost. Since all amortization to the date of the
report will be realized gains to the participants, any difference in fair value and ending
amortized cost will represent the unrealized gains or losses in the pmgram.
__ To give all participants a"preview"of how we will be presenting this
information, we have enclosed a sample report. The report is essentially the same
monthly report fumished to all accounts,but is now expanded to reflect fair value and
closing amortized cost for the entire portfolio. In cooperation with the Department of
Finance, the Bureau of State Audits, and the State Controller's O�ce, we believe that
this presentation will meet the requirements of the Statement.
It is the intentir�n of this office to provide this report of participant fair value on a
quarterly basis. T'he value factor will be included in this quarterly report. However, only
the factor o£June 30`�will be reported in the annual statement of financial condition
prepared by the State Controller.
Fair Value Report
SAMPLE
State of California
Pooled Money Investment Account
Market Valuation
4/30/98
Deacdptbn .. . . . .C�rrylnp.Cost Plus . . �
'Accru�d Intmst Purch. Amortized Cost fsir Yalus Aoerued Intarest
United States TreaSu :
Bllls S 2 611,189,781.00 3 2 664 717,736.04 S 2,888,575,499.96 NA
SVi s S 73,184,450.00 $ 94,822450.72 S 94,814,850.00 NA
Notes S 4,784,934,866.37 3 4,784,934,866.37 $ 4,788,6tl1,800.W S 66,295,031.09
Federel A en :
Bonds S 1,686,013,619.91 S 1,686,013,619.91 S 1685,492,692.30 5 21.d49.036.90
Floaters S 170,000,000.00 S 170,000,000.00 S 169,887,300.00 3 2,015,980.40
MBS S 135,914,312.02 S 135,914,312.02 S 136,290,320.63 S 801,554.70
CaNMA E 2.395.191.15 S 2395.191.15 5 2,748,674.57 $ 23.668.9�
SBA E 220,962,834.51 $ 220,962,834.51 S 222,679,651.58 5 2,210,760.58
FHLMC PC $ 23,547,027.89 S 23.547.027.89 S 25 187.278.23 $ 378,127.96
DiscountNotes $ 1,196,606353.02 S 1,225,677,909.39 3 1,225,773,105.56 NA
BankersAcce tances $ 280,692,045.13 3 285,117,615.01 S 285,168,195.83 NA
Co tate-
Bonds $ 979129.611.58 S 979,'129.617.58 S 978,795,096.93 S 12.569.258.44
Floaters S 571,528,066.67 S 571,528,066.67 S 572.181.982.50 S 4,183,730.12
CDs $ 7,229,699,443.58 3 7,229,699,443.58 S 7 225,400,684J4 E 110,034,185.80
Bank Noles S 1,425,000,000.00 S 1 425 000.000.00 S 1 424 757 095.50 S 22.071.111.10
Re urcAase A reements S � S S NA
TimeDe sits S 1,416,390,000.00 S 1,416,390,000.00 5 1,416390,000.00 NA
AB 55&GF loans $ 1,711,742,505.00 S �,711,�42.SOS.OD S 1,711 742,505.00 NA
Commereial Pa r $ 8,994,653,173.34 S 9,053,551,835.95 S 9.054 110,091.13 NA
Reverse Re urehase $ 676,432,500.00 $ 676,432,500.00 $ 676.432 500.00 S4 021,476.57 �
TOTAL 3 32,837,150 781.17 S 33,004,712,525.79 3 33 D70 164 323.86 S 238 010 969.43
Fair Value Including Accrued Interest 5 33,2a8.175,293.29
Repurchase Agreements,Time Deposits,AB 55& General Fund loans,and
Reverse Repurchase agreements are carried at portfolio book value(carrying cost).
The value of each participa6ng dollar equals the fair value divided by the amortized cost(1.000165182).
As an example: if an agengy has an account balance of$20,000,000.00,then the agency would report its
participation in the LAIF valued at$20,003,303.64,or$20,000,000.00 x 1.000165162.
�
POOLED MONEY INVESTMENT ACCOUNT '
SUMMARY OF INVESTMENT DATA
A COMPARISON OF MAY 1998 WITH MAY 1997
(Dollars in T6ousands)
MAY 1998 MAY 1997 CHANGE
Average DaBy Portfolio $33,209,724 $29,650,040 +$3,559,684
Accrued Eaznings $16Q000 $141,871 +$�g,129
Effective Yield 5.673 5.634 +,039
Average Life—Month End(in days) 191 212 -21
Total Security Transactions
Amouni . $12,598,IOS $13,994,820 -$1,396,715
Number 302 330 -28
Totai Time Deposit Transactions
Amoun[ � $590,500 $372,200 +$Z18,300
Nutnber 31 25 +6
Average Workday lnvestment Activity $659,430 $684,144 -$24,714
Prescribed Demand Account Balantts
FocServices $163,885 $137,672 +$Z6,213
For Uncollected Funds $234,382 $219,037 +$15,345
LOCAL AGENCY INVESTMENT FUND'�
SUMMARY OF ACTIVITY
MAY 1998
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$11,969,083,529.82 $1,037,459,063.88 $1,044,339;513.42 $11,962,203,080.28
'Local Agency Investment Fund Invested Through Pooled Money Inves�nent Account
�,.:. >
- ,;:.��;
1 � ,;.:�.
,:�-�
:.�::-
� :
� 199�-99 COYBRNOR�S(/DCfT
�"��`��.-_�_���-�� � COMTA/NS R'fl'/NCR�/�NTS
�--�-�;� --;—�-..�-.._.._._
ADR RATF IN6'RFASF
-: �� -- -t— The May Revision to the Governo�'s
"�"""""-'" 1998-99 builget reflects a balanced budget
- _�:- -'=� i - and a reserve of mqtr tliast.:$1.6 billion for
-� .
�'�������- economic, t�ncertainties. ;; The,reserve is
---� - - -;-^_
appmximately 3percent of Ehe S#ate's budget,
the lacgesE'in rece3it years. :.
The Local A enc Investment p�l�O'�a's debE level `rzs:in the
g Y cautionaryzoaeofS'Yakob9bbu#reveauesthis
Fund (LAIF) hit an all-time record high yeaz take'us o�tf�the yellnw zone:'to 4.2�0.
of $12 billion on deposits made by This sei3uced se�ance an: debt, plas the
local municipalities and special increased:. res+eraree, gfv:e us t.wo key
districts on May 21, 1998. ingredients fararaiu�gsinreierse,^stated the
LAIF has grown from $8.7 Treasurer,:: `; '
The May Budget itevision can be
billion and 2,168 participants in 1995 accessed from the'`f'neasure�s home page at
to the current leveT of $12 billion and http://www.treasurer.ca.gov under"Cuaent
2,561""participants. Budget & Finances."
"This achievement reflects the ��.�_
confidence that some 2,500 local
� .:: �
���������� :
governments have in the state's , �� � ���ti �� s � ; r � K,
investment program, stated the �� .����
„
��anae�be'beldem9�8�'Cbe: ;
Treasurer. ,
LAIF has proven to be an ����'���''��°
�eet��a��t�e�s+�; :
excellent investment alternative for � ���,��
',� - ��: :
California's local governments and ' �.���� �
special districts. ��tsacebr�'�,��.ii�; �
The State Treasurer's Office ����'����� ;
attributes the success of the program � s�= '
to its adherence to safe and prudent � � ���� � � �� :
S4ec�amefeEn��eiieer tu�t�e pze- ' :
investment pracrices and the.attractive
�oa��;�d�soenr�If��ct��l�'�*38;
returns to its participants. ��,e��*�, , y ',
The priorities of the State � ��fa�r�e�w�� :
Treasurer's Office continue to be �� � ��P� � '� �:
safety, liquidity and yield. �''�"� �� �� � �`���� '
���� `
: t �
a:� �
. 11
•
State o# California
Pooled Money Investment Account
Market Valuation
5/31/98
Description Carrying Cost Plus
Accrued lnterest Purch. Fair Value Accrued Interest
United States Treasu :
Bills $ 2,993,604,246.28 $ 3,053,545,033.60 NA
Notes $ 4,986,226,591.04 $ 4,989,549,440.00 $ 69,503,100.30
Federal A en :
Bonds $ 1,900,895,956.52 $ 1,900,596,842.30 $ 28,426,115.06
Floaters $ 170,000,000.00 $ 169,904 800.00 $ 500,442.&0
MBS $ 132,056,951.13 $ 133,053,478.90 $ 778,410.53
GNMA $ 2,344,172.91 $ 2,695,753.19 $ 23,166.85
SBA $ 227,344,581.05 $ 228,960,963.49 $ 2,271,495.93
FHLMC PC $ 22,942,986.50 $ 24,533,870.44 $ 368,494.61
Discount Notes ' $ 1,101,795,273.15 $ 1,133,437,887.05 NA
Bankers Acce tances $ 10,707,265.56 $ 9,823,611.11 NA
Co orate:
Bonds $ 1,025,718,752.47 $ 1,025,127,190.43 $ 15,217,418.10
Floaters $ 713,193,876.46 $ 713,272,297.50 $ 5,510,056.82
CDs $ 7,592,43t,933.01 $ 7,590,058,731.46 $ 138,535,969.14
Bank Notes $ 1,670,976,190.00 $ 1,670,529,327.09 $ 29,602,583.33
Re urchase A reements NA NA NA
Time De osits - $ 1,495,890,000.00 $ 1,495,890,000.00 NA
AB 55&GF Loans $ 2,021,603,164.00 $ 2,021,603,164.00 NA
Commercial Pa er $ 7,379,524,589.80 $ 7,444,928,676.65 NA
Reverse Re urchase $ 538,689,500.00 $ 538,689,500.00 $3,813,970.17
TOTAL $ 32,908,567,029.88 $ 33,068,821,567.21 $ 286,923,283.40
Fair Value Including Accrued Interest $ 33,355,744,850.6�
Repurchase Agreements, Time Deposits,AB 55& Gene21 Fund loans, and
Reverse Ftepurchase agreements are carried at porlfolio book value(cartying cost).
STATE OFCAUFORNIA MATTFONG, Treaswer
�OFFICE OF THE TREASURER
SACRAMEN70 -�
LOCAL AGENCY INVESTMENT FUND
P.O. SOX 942809
Date: 05/31/98 SACRAMENTO, CA 94209-0001
Page: O1 MAY, 1996 STATEMENT
ACCOUNT NUMBER: 98-33-621
CITY OF PALM DESERT
ATTN: CITY TREASURER
73510 FRED WARING DRIVE
PALM DESERT CA 92260
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATE TYPE NO CALLER AMOUNT BALANCE
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING BALANCE - REG $19,345, 000.00
---------------
ENDING BALANCE - REG $19, 345,000.00
---------------
GRAND TOTAL $19, 345,000.00
SUMMARY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- --------------------
REG 0 $0 . 00 $0.00
�V'��A . ����:�
_ �
i ,� r�. '�
�n.= '�t , �al 'r,9
Reporting Participant Fair Value
As we fast approach the end of our fiscal year, we aze preparing to meet all of the
requirements of Statement 31 that pertain to extemal investrnent pool sponsors. One of
the requirements of the Statement that is ereating considerable interest and anticipation is
the requirement for this office to fumish local agency pool members with a fair value
measure of their participation in the pool as of June 30`�.
Throughout the drafting period of Statement 31, we continuaily asked GASB just
what the participation was to be measured against. At first, GASB responded that the
ending fair valuc was to be measured against beginning fair value. We countered that
beginning fair value was not the appropriate measure for a fund that pays out changes in
fair value due to amortization regularly ttu�oughout the yeaz. Through examples we
showed the Boazd that a more appmpriate measure of risk would be the measurement of
ending fair value to ending amortized cost. Since all amortization to the date of the
report will be realized gains to the participants, any difference in fair value and ending
amortized cost will represent the unrealized gains or losses in the pmgram.
-- To give all participants a"pxeview"of how we will be presenring this
information, we have enclosed a sample report. The report is essentially the same
monthly report fumished to all accounts, but is now expanded to reflect fair value and
closing amortized cost for the entire portfolio. In cooperation with the Department of
Finance,the BurBau of State Audits, and the State Controller's Office, we believe that
tlus presentation will meet the requirements of the Statement.
It is the inteation of this office to provide this report of participant fair value on a
quazterly basis. The value factor will be included in this quarterly report. However, only
the factor of June 30�h will be reported in the annual statement of financial condition
prepazed by the State Controiler.
Fair Value Report
SAMPLE
State of California
Pooled Money Investment Account
Market Valuation
4/30/98
� Desertpllon � .. � .. �C�rrylnp�CostPtus . �
Aceru�d InNrost Pureh. AmorNz�d Coat" Fair Value Aeerued Interost
United States rreasu :
B01s 2.817.189.781.00 S 2,664,717,736.04 S 2.686,575 499.96 � NA
. Stri s 3 73 184 450.00 S 94.822.450.72 S 94,814,850.00 NA
Notes 3 4,784,934,866.37 S 4,784,934 866.37 $ 4,788,601,800.00 $ 66,295,031.09
Fede21 A en :
Bonds 3 1686,013,619.91 $ 1,686,013,619.91 S 1,685,492,692.30 S 21,449,036.90
Floaters S 170,000,000.00 S 170,000,000.00 S 169,687,300.00 S 2,015,980.40
MBS S 135 914,312.02 S 135 914,312.02 3 136 290.320.63 S 801,554.70
GNMA S 2,395,197.15 S 2.395,�91.15 5 2,748,674.57 E 23,668.91
SBA S 220 962 834.51 S 220,962,834.51 S 222,679,851.58 S 2,270,760.58
FHLMC PC S 23 547 027.89 S 23 547,027.89 S 25,187,278.23 S 378.127.96
Discount Notes S 1.196 606,353.02 E 1,225,677,909.39 S 1,225,773,105.56 NA
Bankers Acce tances S 280 692 045.13 $ 285,117,615.01 3 285,168 195.83 NA
CO 2t€"
� Bonds S 979,129,611.58 $ 979,129,611.58 S 978,795,096.93 S 12,569,258.44
� Floaters S 571,528,066.67 $ 571,528,066.67 S 572,181,982.50 S 4,183,730.12
CDs S 7,229,699,443.58 $ 7,229 699,443.58 S 7,225,400,684.14 S 110,034.185.&1
BankNotes S 1,425,000000.00 $ 1425000,000.00 $ 1,424,757,095.W S 22,071,111.10
Re urchase A reements S S S NA
Time De its S 1 416 390.000.00 S 1 416,390,000.00 $ 1,416,390,000.00 NA
AB 55 8 GF Lbans S 1 711 742 505.00 $ 1 711,742,505.00 S 1,711,742,505.00 NA
Commercial Pa r S � 8 994 653 173.34 $ 9 053 551,835.95 S 9,054,110,091.13 NA
ReverseRe urchase Y 676432,500.00 $ 676,432,500.00 S 676,432,500.00 54,021,476.57
TOTAL S 32 837 150 781.17 S . 33 004,712,525.79 E 33,010,164,323.86 5 238 010,969.43 �
Fair Value Including Accrued Interest - E 33,248,175,293.29
Repurchase Agreements,Time DeposRs,A8 55& General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participadng dollar equals the fair value divided by the amortized cost(1.000165182).
As an example: if an agengy has an account belance of$20,000,000.00,then the agency woultl report its �
participation in the LAIF valued at 520,003,303.64,or$20,000,000.00 x 1.000165182.
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF MAY 1998 WITH MAY 1997
(Dollars in T6ousaads)
MAY 1998 MAY 1997 CHANGE
Avenge Daily Portfolio $33,209,724 $29,650,040 +$3,559,6$4
AccruedEaznings $160,000 $141,871 +$18,129
Effective Yield 5.673 5.634 + .039
Average Life--Month End(in days) 191 212 -21
TotalSecurity Transacdons
Amount • $12,598,105 $13,994,820 -$1,396,715
Number __ 302 330 _Zg
Total Time Deposit Transactions '
Amount $590,500 $372,200 +$z18,300
Number . 31 25 +(
Average Workday Investment Activity 5659,430 $684,144 -524,714
Prescribed Demand Account Balances
ForServices $163,885 $137,672 +526,213
For Uncollected Funds $234,382 $219,037 +$15,345
LOCAL AGENCY IIVVESTMENT FUND*
SiJhiMARY OF ACTIVITY
MAY 1998
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$11,969,083,529.82 $1,037,459,063.88 $1,044,339,513.42 $11,962,203,080.28
•Local Agency Invesnnent Fund Invested T7uougL Pooled Money Inveshnent Accou¢t
.T,�..:.
;;.�;:>
1 �a<�:�;..
. .
�::...:<::.
��,�;;:;.
-_�—r---� /99�-99 cOYFRNOR'S SUOCFf
��-.-�=�.��� _ � CONTA/NSKEI'/M�rRfO/fMTS
T�R RATf IMCRFASF
- -�-- ----�-
- �``—`-`*`V The May Revision to the Governoc's
-������T�-�" 1998-99 budget reflects a balanced budget
�T�-=- and a reserve of moz+e tl�an$1.6 billion €or
�� economic nnr�rtairities. . The reserve is
�
��r=_�������- approximatPly3percentofEheSEate'sbudget,
' _.--. ,�-:_.. _ _.
the largest�ln rece�t years.,,
"�alifom�a'a debE level was in the
The Local Agency Investment �uhonaryzoaeofS�to696butreveituesthis
Fund(LAI� hit an all-time record high year take us o�# ti�the yel�ow zane te 4.2�0.
of $12 billion on deposits made by This re8ueed �tian�e oa c€ebt, <pins the
local municipalities and special increased reses�r.es, g�ve ns two key
districts on May 21, 1998. ingredients fcuaratingsintrease,^�iated the
Treasurer. '
LAIF has grown from $8.7 The Ms�* Budget Revision can be
billion and 2,168 participants in 1995 accessed from the Tiseasuret's home page at
to the current level of $12 billion and http://www.treasurer.ca.gov under"Current
2,56� paTtiCipants. Budget & Finances."
"This achievement reflects the
confidence that some 2,500 local ���'�*�t���+.
governments have in the state's �
investment program, stated the � ����� '
Treasurer. ' ������'�`�'�'��
LAIF has proven to be an ������ �
fx►�eet�p�Bo�an��e��s�#F ::
excellent investment alternative for �{���,,,�����
California's local governments and ; �,�t�dEey.�D�'
special districts. ��!��•��s�: ;'
The State Treasurer's Office � `�����P���� ;
attributes the success of the program ��p Gc�enQe w�it �e �rt tbe; ;'
to its adherence to safe and prudent ����:��,;; .;
investment practices and the attractive �{�����j�,�g��gg
returns to its participants. tt�.ttae$#�te�'ac�.
The priorities of the State > ������IDbe
Treasurer's Office continue to be �� ���d '��0'OA `.
safety, liquidity and yield. r"���'�� � �� �"���° `
�`�'8�t11a p�C�fe�R. - a
• 11
C
State of California
Pooled Money Investment Account
Market Valuation
5/31/98
Description Carrying Cost Plus
Acarued InterestPurch. Fair Value Accrued Interest
United States Treasu :
Bills $ 2,993,604,246.28 $ 3,053,545,033.60 NA
Notes $ 4,986,226,591.04 $ 4,989,549,440.00 $ 69,503,100.30
Federal A enc :
Bonds $ 1,900,895,956.52 $ 1,900,596,842.30 $ 28,426,115.06
Fioaters $ 170,000,000.00 $ 169,904,800.00 $ 500,442.90
MBS $ 132,056,951.13 $ 133,053,478.90 $ 778,410.53
GNMA $ 2,344,172.91 $ 2,695,753.19 $ 23,166.85
SBA $ 227,344,581.05 $ 228,960,963.49 $ 2,271,495.93
FHLMC PC $ 22,942,986.50 $ 24,533,870.44 $ 368,494.61
Discount Notes $ 1,101,795,273.15 $ 1,133,437,887.05 NA
Bankers Acce tances $ 10,707,265.56 $ 9,823,611.11 NA
Cor orate:
Bonds $ 1,025,718,752.47 $ 1,025,127,190.43 $ 15,217,418.10
Floaters • $ 713,193,876.46 $ 713,272,297.50 $ 5,510,056.82
CDs $ 7,592,431,933.01 $ 7,590,058,731.46 $ 138,535,969.14
Bank Notes $ 1,670,976,190.00 $ 1,670,529,327.09 $ 29,602,583.33
Re urchase A reenents NA NA NA
Time De osits $ 1,495,890,000.00 $ 1,495,890,000.00 NA
AB 55&GF Loans $ 2,021,603,164.00 $ 2,021,603,164.00 NA
Commercial Pa er $ 7,379,524,589.80 $ 7,444,928,676.65 NA
Reverse Re urchase $ 538,689,500.00 $ 538,689,500.00 $3,813,970.17
TOTAL $ 32,908,567,029.88 $ 33,068,821,56721 $ 286,923,283.40
Fair Value Including Accrued Interest $ 33,355,744,850.61
Repurchase Agreements, Time Deposits, AB 55 8 General Fund loans, and
Reverse Repurchase agreements are carried at partfolio book value (carrying cost).
. City of Palm DeseA
. Parkvrew Offlce GomPlex
Incortre StatameM
Fw July 7998
July-BB July-98 N % YTD YTD N X
Budyet Aed+al Vsrlanu Varianea BudpN Aetual VaAena Varienee
Revenues
Rental 5 58,900 $ 58.835 5 (85) 99.69% 5 b8.9W S 58.835 E (65) 99.69%
a��denayio�eres� a ,.zoo s z.sa, a ,,3a, z,,.�s� a ,.zoo a z.sa, a ,.aa, s,,.�sx,
. Total Ravenues S 60,100 f 87,378 S 1,278 102.12% S b�A00 S 87,378 S 1,278 � 102.12X
Expensea
Professional-AcmuntingBAutliting S 3,700 5 5,167 S (1,481) 139.49% S 3,700 S 5,187 f (1,4611 139.49%
Protessional•Management Fee S 5,500 S 5,500 S • 100.00% S 5,500 5 5,500 S • 100.00%
Tenant Improvements S 5,800 S • S 5,800 0.00% S 5,600 5 • S 5,800 -0.00%
Repairs 8 Maintenance Building $ 9,100 S 8,250 $ 2.850 88.68% S 9,100 5 8,250 S 2,850 68.68%
Repairs&Maintenance-LandscaD��B S 1•079 $ - f 1.079 0.00% S 1,079 S - S 1,079 0.00%
Utilities-Water S 250 S - S 250 0.00% S Z50 S - S 250 0.00%
Utilities-Gas/ElecMnc $ 5,500 $ - $ 5,500 0.00% $ 5,500 S - S 5,500 0.00%
Ufilities-Trash - $ 450 $ 449 S 1 99.78% S 450 $ 449 $ 1 99.78%
Telephone S 150 S 143 S 7 95.33% S 150 S 143 S 7 95.33%
Insu2nce S 520 S - S 520 0.00% S 520 f - f 520 0.00%
ToGI Expenaes S 32,019 E 17.W3 f 14,548 54.81X S 72,049 S 77.503 S 74,548 54.81X
Inv861:79BB-Inves�
City of Palm Desert
Parkview Office Complex
Financial Statement
Actual
July
Rental $ 58,835.27
InteresVDividends $ 2,541.34
Other $ -
Total Revenues 5 61,376.61
Professional-Accounting &Auditing $ 5,161.00
Professional-Management Fee $ 5,500.00
Tenant Improvements $ -
Repairs & Maintenance- Building $ 6,249.91
Repairs & Maintenance- Landscaping $ -
Utilities-Water $ -
Utilities-Gas/Electric $ -
Utilities-Trash $ 448.86
Telephone $ 142.58
Insurance $ -
Total Expenses S 17,502.35
Budget
July
Rental $ 58,900.00
InteresUDividends $ 1,200.00
Other $ -
Total Revenues S 60,100.00
Professional-Accounting 8 Auditing $ 3,700.00
Professional-Management Fee $ 5,500.00
Tenant Improvements $ 5,800.00
Repairs & Maintenance- Building $ 9,100.00
Repairs & Maintenance- Landscaping $ 1,079.00
Utilities-Water $ 250.00
Utilities-Gas/Electric $ 5,500.00
Utilities-Trash $ 450.00
Telephone $ 150.00
Insurance $ 520.00
Total Expenses $ 32,049.00
Invest;Ac@Bud-99
� INTEROFFICE MEMORANDUM
TO: INVEST1vfEN'f COMIvIl'ITEE
FROM: PAUL S.GIBSON,DIItECTOR OF FINANCE
ANTHONY I-IERNANDEZ .
SUBJEC'I: DESERT WII.LOW GOLF RESORT&P.DR.F.0 INVESTMENT REPORIS
DATE: OS/13/98
Please be advised that the July 1998 invescment repoits will be available at the regululy
scheduled meeting. Unfortunately, the Management Company infoxmed us thac che July financial
repons they prepared for us were incorrect. Thaefore, we were unable to prepaze t6e investment
reports on time. Sorry,for any inconvenience t6at this may cause.
_ _ _ _ _ __ ___._ _ _