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HomeMy WebLinkAbout08 FEBRUARY 1999 AGENDA INVESTMENT & FINANCE COMMITTEE WEDNESDAY, February 17, 1999--I:30 P.M. NORTH WING CONFERENCE ROOM ****«*******,e****�*,r,r*�*****,r*******«**s*****s**��***�************************ I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of January 20, 1998 as submitted. Action: IV. ORAL COMMUPIICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Inveshnent&Finance Committee at this point by 'vin he is or her name and address for the record. Remazks sha11 be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the 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 ma�cimum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships BackEround Checks for Secti Rec: Report by Cazlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authoritv Rec: Status Report on new Bonds for Bighom. Action: � AGENDA- INVESTMENT & FINANCE COMMITTEE February 17, 1999 **,e�*******,r*******«*****,rs*******�*******.**,e***********««�***********rs,r**** VI. NEW BUSINESS A. City and Redevelopment Agencv Investment Schedule for Januarv. 1� 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 January. Review status of capital projects and cash flow projections. Acrion: B. Review Short Term Investments Maturing in February. 1999 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 Monthl�Re,Rorts for December. 1998 Rec: Informarional item for the Committee to review. No acrion required. D. Monthly Financial Re„port for City Council for January 1999 Rec: Report and submit to City Council. Action: E. Parkview Professional Oftice Buildings-Financial Reports for January. 1999 Rec: Review and file report. Action: F. Desert Willow Golf Resort Finaucial Information for Januarv. 1999 Rec: Review and file report. Action: ' AGENDA- INVESTMENT & FINANCE COMMITTEE February 17, 1999 ***�*********,+***«***��**«*�***�***«***************«********�**********�****** G. Palm Desert Recreation Facilities Cor�oration Income Analysis for January. 1999 Rec: Review and file report. Action: H. Financial Statements for Desert Willow Golf Resort and Palm Desert Recreational Facilities Rec: Report and submit to City Council Action: I. Mana�ement Letters for HousinP Authoritv and Desert Willow Golf Resort for the year ending June 30. 1998. Rec: Report and submit to City Council Action: VII. REPORTS AND REMARKS A. Reports and Remarks b� an� Committee Member B. Items to bgplaced on the Next Aeenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: �c�dlunc��ail�d�, I��m�Ihi �,4� Il�9� �tt Ilo�� m�ommo IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of Califomia,that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. ted this Febru 11, 1998. � Veronica Abazca,Recording Secretary ��� • s � � M�nut e Finance Committee �^,�j�TEj� On January 20, 1999, tke Investment f9 Finance Committee was called to order at 11:07 a.m. by Mr. Paul Gibaon. ROLL CALL Ray Diaz, Dave Erwin, Paul G'ibson, Thomas Je{{rey, Murray Maglo{�, Cazlos Ortega, Rusa Campbell, Bob spiegel, Bill Veazie and Vexonica Abarca, recordin� secretary. COUNCIT. PRESENT' Jim Fergueon, Counci�Membei Jean Benaon, Council Member STAFF PRESENT Jose Luia Eapinoza, Finance Operatione Manager Dave Yrigoyen, Redevelopment Manager Rackelle IClassen, Deputy City Cler� GUEST Gxegg Lindquist, Kemper Sports-Desert Willow A,PPROVAL OF MINUT�S Upan motion by Mr. Bob Spiegel, and seconded by Mr. Bill Ueazie, the Minutes of the December 16, 1998 meeting were APPROVED as submitted. ORAL COMMiJNICATIONS Mr. Gibson etatec�t�at ke woula ta�xe Iteme F Fl G' under New Businees out o{ orc�er per Mr. I.indquiet'e requeet. �. Desert Willow Gol� Resort Financial Information for December. �8 Mr. Gibeon as�ed the committee to review the fax Mr. Lindquist had pxovided. Mz. Gibson aelxed i�tl�ete were any questione. Mr. Spiegel ae�Zed i�we would see a profit �or Deeert Willow t�ie year. Mi. Lindquiat etated that we will be above the budgeted�90K profit by the end of t�e year. �.'urrently the trend ie positive and very compazable to December, 1998 {iguree. Saturday, January 12 alone, groesed�47K. T�e previous �igh daily�rose was�32K. 1 Minui;es `'` rinance Commii;tee Mz. Lindquiet added that tke course condition is excellent, tke par�Zing lot is in �ood Shape and the club house is ri�ht on trac�Z. Ms. Benson as�Zed if t�e non-resident hotel guests verses the wallz-ins can be trac�Zed. Mz. Lindquist stated that yes eac�x guest is trac�Zed. The ean has de�initely been a positive attxaction for tkose at �olf courses out of tke • immediate axea. Mr. Lindquist added t�at Desert Willow me=chandise can now be purchased at the Visitox's Center and will be included on t�e Internek "City Web Pa�e'. Receive and �e report. �LD BUSINESS A. Bond Issuance bv Pa�m Desert Finanein�Authoritv Mx. Gibson stated tkat tkexe was no new information wit�tke Bigl�orn bond issuance. B. status o� Public anc� Private Partners}iips Bac�x�xouna C'�ee�xe �or section 4 `I'kere were no changes to t�e p=evioue mont� report. C. Investment Poliev A joint meeting wit�the Investment C.'ommittee and tke City C..'ounci�was , � ca�]ed to review the proposed zevisions made to the current Inveatment Policy. Mz. Je{{rey reviewed in detail, t�e di{ferences between t�e new and old policies Upon motion by Mr. Spiegel, seconded by Mr. Ortega the committee approved the new format of the Investment Policy and agreed to present it in its new format to City Council for they're approval. D. 1997/1998 California Annual Financial Report Mr. Gibaon explained to t�e committee tkat Jose Luie Espinoza would �ive a brief narrative of tlie 1997/1998 Ct1FR. Mr. Espinoza compared tbe nuxnbera in the 96/97 CAFR to t�e 97/98 CE1FR. For 97/98 the City of Palm Desert kas received "Top Iaeue" fxom t�e 2 - Minui;es i�'Inancc Committce auditora, Die�, Evans FJ C'o., LLP. Revenues increased as well as a sli�kt , inexease in expenditures for the 97/98 {iscal year. (VEW BUSINESS � A.� Citv and. Rec�.evelo�ment denev Investment .�"c}iec�ule . Mr. Gibaon reviewed the zeports and aslzed i�there were any questions. There wexe none. Reeeive and{i�e reports. B. Review S}iort Term Investments Maturin� in Tanuarv, 1922 Mr. Gibson noted tkat a nuxnbei o� inve"stments were acquired in Decembe=, both{or the reserve {und for tke bond issuance and tlie improvement �und w�ic�was pxovided by Bighom. Receive and file zeport. C'. Ctate o� C'ali�ornia Local Adenev Investment Fund Mont}�v Reuort Mr. Gibson reported t�at �ox the mont� of Nwember, the City�as �27.9 million and t�e Redevelopment Agency LAIF has a balance of �11.4 mi�lion at an interest rate of 5.492%. 'I�e RDA portion will grow coneidexably in January wken we receive the properly ta�c increment payment. ' Receive and'{ile reporte. D. Mont�v Financial Revort �or L'itv C'ouncil Mx. Gibson reviewed the reports and as�ed if thexe wexe any questione. Mi. Spiegel ae�xed wkat t�e projected 5ales Tax�igure would be at the cloee of tke {iecal year. Mr. Gibeon etated that baeed on tl�e laet quazter{igures, l�e projects$10.3 million compated to the budgeted �9.6 miIlion. Mr. Gibson added tl�at tliie will be tlie fizst yeax tlie City surpaeses�10 million in sales tax. Receive and {i�e report. �. Par�zview Pro�essional O{�iee Bui�c�inds - Financial Renorte 3 Minut;es "'` I�'Inancc Commii;tce Mx. Gibson stated tkat tke O{{ice Complex continues to do well. Mr. Gibson also atated that the State Rehab kas submitted tkeir preliminary blue prints of the o{�ice space at the O{�ice Complex. Approval�as been �iven by tke State Fire Maxshall kowever, may conflict with City_Code. The State Rehab will talze 100% o�the o{�ice space avai�able. Receive and {ile report. C�s. Palm Desert Recreation Facilities C'ornoration Income Analvsis for December, 1998 T�is item was crnered by Mr. Lindquist, Deser!Willow. Receive and {�e xeport. H. Revorts ana Remarlxe Mr. Spie�el stated tkat Indian Wells golf course will be going out to bid soon �or a mana�ement company. He would�e to get a copy of t�e bid documenta once+1iey become public information. Mr. Gibson agceed. NBXT MEETING DATE Tlie ne�ct Investment'F+1 Finance Committee meeting wiIl be held Wednesday, Pebruary 17, 1999 at 1:30 p.m. ADJOLJRNMENT Upon motion by Bob Spiegel and seconded by Carlos Onega the . Investment & Finance Committee adjourned at 3:30 p.m. Respect{ully submiited, Y��-���� Veronica L. Abarca, Recording Secretary 4 02/11/1999 --- CITY OF PALM D6S6RT --- PM - 1 PORTFOLIO MASTER 6[1F4AARY �ITY JANUARY 31, 1999 ACCRUAL AVERAGE ---YIELD TO MATURITY--- PERCENT OF AV&RAG5 DAYS TO 360 365 INVESTMENTS B007C VALUE PORTFOLIO TERM MATURITY 6pVIVALENT EQUIVALENT UNITED STATES RREASVRY - COUPON..............$ 51,760,320.91 32.48 948 658 5.240 5.313 �IR•1 IAAN Tp RDp.............................$ 24,408,338.94 15.32 1 1 5.193 5.265 FEDERAI. AGfiNCY - COUPON..... .................$ 18,896,753.80 11.86 99'] 556 5.792 5.873 IpCAL AG6NCY INV6STMElTT FOND�...........�����5 28,2fi4,456.54 1'/.'/4 1 1 5.193 5.265 MEDIUM-TERM NOT65............ ................$ 7,793,162.91 4.89 584 573 5.143 5.214 FIDELII7 TREASVRY POOL.......................$ 15,'/'/9.396.69 9.90 1 1 4.606 4.6'!0 UNITED STATES TREASURY - DISCOUNT............$ 4,897,122.36 3.04 1,706 1,289 5.�38 5.818 NIGHMhRK SWEEP ACCOVNTS......................$ 7,135,15'/.17 4.48 1 1 3.955 9.010 � STATE 6 IACAL GOVT SERIES - TIM6.............$ 465,000.00 0.29 1,753 1,336 0.000 0.000 TOTAL INVBSIM6NTS and AVERAG6&.............$ 159,399,'l09.32 100.00� 512 351 5.1654 5.237t `���.'..��esse�."��a�����_����a�e����.'�e��e�a���....�����"`a==zam......��`� (,'ASH Paeebook/Checking - No Yield Tota1B..........5 322,877.46 0.000 0.000 (not included Sn yield calculatione) _ � Acctued Intereet at Purchase.................$ 157,429.55 _'______""___"__""'__'___""""____""""_____"""'_"""'________"" TOTAL CASH and PURCHASE INTER6ST.............$ 480,307.01 ��"��������.....��e��......�'��e`......vee�sa........«�a�.e�=`_'�a........'. TOTAL CASR and INVESTTIBNTS.................$ 159,830,016.33 ..as�e....:�s«s��....�saa�se��....v�nan�sa�...���a�e����==�=�sam�...:�.=mzme� MONTH ENDING FISCAi+ 1ClTAL EARNINGS JANUARY 31 YEAR TO DATE Cuzxent Yeas S 691,277.77 S 4,293,497.52 AVERAGE DAILY HALANCE $ 153,045,804.93 5 131,944,738.26 EFfECfIVe RATE OF RETURN 5.32! 5.526 THE CITY'S INVESTM6NT PORTPOLIO IS IN COMPLIANCB WITH ALL CALIFORNIA GOVBRNMENT PAVL S. GIBSON CODE AND CITY INVESIMENT POLICY PROVISIONS RELATING TO TF[e INVESTMENT OF IACAI. PINANC& OIRECTOR & CITY TRHASVRER AGBNCY FUNDS. NOTNITHSTAN�ING ANY FUTURE ACTIONS BY THH CITY COVNCIL OR AN UNFORES66N CATASTROPH6. THE CITY HAS SVFFICI&NT CASH FLOX TO MEfiT ITS &XPENDITVRE REQUIReFffiNTS FOR TF� NEXT SIX MONTfIS. MAR%ET VALUES W6R6 OBTAINBD npTg FROM V.S. HANR TN� FROM INTERAClIVE DATA CORP. ALL BALANCES ARE BANR BALANC65. 02/11/1999 -- CITY OF PALM DESERT --- PM ' 2 INVESTMENT PORTPOLIO ➢ETAZLS - ZNVESTMENTS CI1'Y JAMJAAY 31, 1999 ACCRUAL �NVESTMENT AVER4G6 YURCHASE STATED --- YTM --- MATURITY DAYS NOMBER ISSVER BALANCE DATE H001C VALUE FACE VALUE MAR%ET VALUE RAT& 360 365 DATE TO MAT UNITED STATES TREASURY - COUPON 1600'/ Z UNIT6D STATES TREASURY 12/l2/95 1,OOB,110.77 1,000,000.00 1,015,312.50 6.375 5.338 5.413 01/15/00 34B 16008 I UNITED STATES TREASURY 12/12/95 450,63'].63 445,000.00 452,787.50 8.000 5.279 5.352 OB/15/99 195 1604'/ UNI'1BD STATES TREASURY OS/O1/9'/ 2,000,528.12 2,000,000.00 2,008,125.00 6.375 6.171 6.257 04/30/99 88 16048 UNITED STATES TREASURY 03/21/9'! 1,999,135.69 2,000,000.00 2,000,000.00 5.000 6.124 6.209 02/15/99 14 16050 UNITED STATES TREASURY 12/11/99 92,057.96 92,000.00 92,603.75 5.875 5.674 5.753 OB/3l/99 211 16051 UNIT6D STAT6S TREASURY 12/11/9'/ 1,356,825.54 1,340,000.00 1,908,675.00 6.250 5.761 5.841 OB/31/02 1,307 16052 UNITED STAT65 TREASVRY 12/11/97 12,163.75 12,000.00 12,300.00 7.125 5.672 5.750 02/29/00 393 16053 UNITED STATES TREASURY 12/11/9'/ 9'/,633.45 9'/,000.00 99,2'/3.44 6.250 5.713 5.'/92 OB/31/00 5]"/ 16054 UNITED STATES TREASURY 12/11/97 12,963.31 13,000.00 13�251.88 5.625 5.693 5.'Iv2 02/28/O1 O58 16055 UNITED STATES TREASURY 12/11/9'/ 109,5'/2.93 103,000.00 10],570.63 6.500 5.'150 5.830 OB/31/O1 942 16056 UNIR'ED STATES TREASORY 12/11/97 13,142.20 13,000.00 13,589.06 6.250 5.'/61 5.841 02/28/02 1,123 16059 UNZ1'ED STAT6S TFtEASURY 12/11/9'/ 11,998.18 12,000.00 12,007.50 5.500 5.629 5.'10"1 02/28/99 2'/ 16060 UNITED STATES TREASURY 12/11/9'/ 306,404.98 300,000.00 31'l,156.25 6.625 5.'/68 5.848 03/31/02 1�154 16061 UNITED STATES TRFT+SURY 12/11/9'] 15,20B,4'/'l.18 15,194,000.00 15,806,508.13 5.8'/5 5.7fi2 5.842 09/30/02 1,33'/ 16062 U�IITED STAT65 TREASURY 12/11/9'/ 922,455.14 911,000.00 949,'!1"/.50 6.3'/S 5."!58 5.838 09/30/O1 9'l2 16063 UNITED STATES TREA6NtY 12/11/9'/ 289,998.00 282,000.00 291,958.13 6.375 5.'/48 5.828 03/31/O1 789 16064 UNITED STATES TR&ASURY 12/11/97 851�0'/9.40 847,000.00 866,322.19 6.125 5.724 5.803 09/30/00 607 16065 UNITED STATES TREASURY 12/11/97 268,110.44 265,000.00 2'/l,3'l6.56 6.8]5 5.696 5.]']S 03/31/00 424 16066 UNITED STAT65 TREASURY 12/11/9'/ 806,861.45 80'l,000.00 812,548.13 5.']50 5.693 5.'!�2 09/30/99 241 1606'! U1�1I'i'ED STATBS TREASURY 12/11/97 250,195.56 250,000.00 250,625.00 6.250 5.646 5.724 03/31/99 58 16070 UNITED STATES 1REASVAY OS/18/98 4,020,198.81 4,OU0,000.00 4,048,"l50.00 6.8'/S 5.506 5.582 OB/31/99 211 160]2 UNITED STATSS TREASURY 12/16/98 968,292.20 940,000.00 967,612.50 7.'/50 4.545 4.608 O1/31/00 364 1fi0"!3 UNITED STATES TREASVRY 12/16/98 5,941,315.'/6 5,400,000.00 5,493,875.00 6.3'/S 4.567 4.630 07/15/99 164 160'14 UNITED STATES TREASURY 12/16/98 9,100,127.25 8,842,000.00 9,101,733.75 7.750 4.545 9.608 U1/31/00 364 160'/S UNI'1'ED STATES TREASURY 12/16/98 2,039,211.45 2,010,000.00 2,033,240.63 5.250 4.415 4.4]6 O1/31/O1 '/30 160'l6 UNITED STATES TTtEASURY 12/16/98 1,739,924.20 1,715,000.00 1,734,829.69 5.250 9.415 4.Q76 O1/31/O1 730 160'1'/ UNITED STATES 7REASURY 12/16/9B 2,3'/6,900.05 2,360,000.00 2,3'l5,48'/.50 5.625 4.562 4.625 10/31/99 2'12 _'____""'"""' '""""""""'__ '_"""________ ___'""'______ ______ __'__' "_'"' SUBTOTALS and AVERAGES 51,781,206.09 51,760,320.91 52,50'/,23'/.2] 51,250,000.00 5.240 5.313 658 CITY I/JAN 1Y7 R77A 1 CITY OF PALM DE6ERT 24,408,338.94 24,408,338.94 24,408,338.94 5.265 5.193 5.265 1 AVERAGfiS 29,408,338.94 FSOBRAL AG6NCY - COUPON 14016 FEDERAI. FARM CRBDIT BANR OB/04/9'/ 3,000,000.00 3,�000,000.00 3,091,250.00 6.000 6.000 6.083 OB/04/00 550 19011 FED6RAL HOME LOAN BANR 03/26/9"! 1,800,000.00 1,800�000.00 1,803,375.00 6.330 6.310 6.398 03/26/99 53 14022 F6DERAL HOMG IAAN 6AP1K O1/09/98 2,000,000.00 2,000,000.00 2,00'/,500.00 6.105 6.1A5 6.231 O1/09/02 1,073 16020 FEDERAL HOME IAAN B1WR O1/15/99 2,010,280.94 2,000�000.00 2,012,500.00 5.500 6.9]4 4.840 0'//14/00 529 19002 I FED6RAI. NATIONAL MTG ASSOC 12/12/95 1,011,485.91 1,000�000.00 1,015�312.50 8.650 5.877 5.958 07/12/99 161 1400a I F&OERAI. NATIONAL MTG ASSOC 12/12/95 1,035,'/95.89 1,000,000.00 1,045,312.50 9.050 5.620 5.699 04/10/00 434 14023 FEDERAL NATIONAL MTG ASSOC O1/14/98 2,000,000.00 2,000,000.00 2,O10�6d5.00 6.010 5.928 6.010 O1/14/03 1,443 02/11/1999 --- CITY OF PALM DESERT -- PM - 3 INV6STM2NT PORTFOLIO DETAILS - INVESTMENTS �ITY JNiIJARY 31, 1999 ACCRUAL I�S�� AVERAGfi PURCHASE STATED --' YTM --- MA1'URITY DAYS NVhIDER ISSVER BALANCE DATE 800]( VALUE FAC6 VALUE MARICEI' VALUE RAT6 360 365 DATE TO MAT FEDEEiW, AGENCY - COIIPON 14025 FEDERAL NATIONAL MTG ASSOC OS/18/98 2,036,123.20 2,000,000.00 2,050,000.00 '/.590 5.']26 5.805 02/14/00 378 19026 FEDERAL NATIONAL MTG ASSOC OS/18/98 1,993,943.'1'/ 2,000,000.00 2,006,875.00 5.930 5.750 5.830 O1/2'//00 360 1402'/ FEDERAL NATIONAL MTG 1ySSOC OS/18/98 2,001,124.29 2,000,000.00 2,011,8'/5.00 5.�90 5.'J10 5.'/89 11/OS/99 2"!'! ______""____""___ ___"______""__ ___________'__ ___"________"_ ___"__ ______ ______ SVBTOTALS and AVERAGfiS 19,246,821.'!6 10,896,']53.80 19,004,625.00 18,800,000.00 5.'/92 5.8]3 556 IpCAL AGENCY INVESTMENT FI1HD 12000 STATE OF CAI.IFORNIA 28,264,456.54 28,264,456.54 28,264,456.54 5.265 5.193 5.265 1 AVERAGES 26,556,919.5] M6DIVM-TERM NOTES 18005 FORD GPITAL HV O1/21/99 2,163,816.27 7,000,000.00 2,153,750.00 10.125 5.183 S.Z55 11/15/00 653 18001 FORD MOTOR CRSDIT CORPORATI O1/21/99 Y,036,890.24 2�000,000.00 2�028,]50.00 6.3'15 5.136 5.208 SO/06/00 613 18002 GEN6RAL M�1r1RS ACCEPTANC5 C O1/21/99 2,015�876.44 2�000,000.00 2�008�125.00 5.850 5.071 5.141 04/06/00 430 10003 GENERAI. MOTORS ACCEPTANCE C O1/21/99 1,576,579.96 1,550,000.00 1,571�796.88 6.3'/S 5.188 5.260 09/19/00 596 '_"_____"___"""' _____'"'___"" __"'" SVBTOTALS and AV6RAGfiS 2,'/65,893.98 7,793,162.91 '/,'/62,421.88 � '/,550,000.00 5.143 5.214 5'/3 FIDELITY TREASURY POOL 12004 FID&LITY INVGSTMII�ITS 0.00 0.00 U.00 4.6'/0 4.606 4.6'!0 1 12005 FIDELITY INVESIMENTS 0.00 0.00 0.00 4.6]0 4.606 4.6'!0 1 12006 R FID6LITY INVESTM6N1'S 0.00 0.00 0-00 9.6'!0 4.606 4.6'/0 1 1200� FIDELITY INVESTMENI'S 0.00 0.00 0.00 4.6]0 4.606 4.6'!0 1 12009 I FIDBLITY I1dVE51M8NTS 37,68"l.10 37,68'/.10 37,687.10 4.670 4.606 4.670 1 12010 R FIDELII'Y INVESTMEP71'S 195,559.04 195,559.04 195,559.04 4.670 4.606 4.6�0 1 12012 I PIDELITY INVESTMfiNTs 271,03'/.02 271,037.02 271,037.02 9.670 4.606 9.670 1 12013 R FID6LITY INVGSIME:l1T5 134,420.61 134,420.61 134,420.61 4.6'!0 4.606 4.6'!0 1 12015 PIDELITY INVE31MEN1'S 0.00 0.00 0.00 4.fi70 G.606 4.fi70 1 12016 I FIDELITY INVE51M8NTS 0.00 �.00 0.00 4.6'/0 9.606 4.6'/0 1 12022 R FT�ELITY INVGSTMENTS 0.00 0.00 0.00 4.6�0 4.606 4.6'!0 1 12024 FIDfiLITY INVESTM6NT5 ,0.00 0.00 0.00 4.6'/0 4.606 4.670 1 120]5 R FI�ELI1'Y INV66TMENTS 479i944.49 479�944•49 9]9�944.99 4.6'!0 6.606 4.6'/0 1 1202'/ R PIDELITY INVESTMENTS 65,1'/8.42 65,1'/8.42 65,1�8.42 4.670 4.606 4.6'!0 1 12028 R FI�ELITY INVES1MBNf5 164�580.63 164�580.63 164,580.63 4.6']0 4.606 4.6'/U 1 12031 FID6LITY INVESRTIENTS 12.05 12.05 12.05 4.670 9.606 9.6"!0 1 12033 FIDBLITY INV&S'�NTS 43.60 43.60 43.60 4.6"!0 4.606 4.690 1 12034 FIDELITY INVESTM&N1'S 108.16 lOB.16 lOB.16 4.6'!0 4.606 4.6']0 1 12035 FID6LITY INVESTMENTS 489.20 489.20 489.20 4.670 4.606 4.6'!0 1 1203fi FZDELITY INVBSTMeNPS 131.92 131.92 131.92 4.670 4.606 4.670 1 1203'I FIDBLITY INVESRTIENTS 86.40 86.40 86.40 4.6'!0 4.606 4.6')0 1 12039 FIOELITY INV&51MGNTS 24.23 24.23 24.23 4.6'/0 4.606 4.670 1 02/11/1999 --- CITY OF PALM D£SERT -- PM - 9 INVESTMENT PORTFOLIO DETAILS - INVESTMENTS �ITY JNiUARY 31, 1999 ACCRUAL INVGSTMENT AVERAGE PURCkiASE STATED -'- YTM --- MA'PURITY DAYS NUMBER ISSUER BALAWCE DATE HOOR VALUE FACE VALUE MARICET VALUE RATE 360 365 DATE TO MAT __"'__""___"_'""__'__'___"_______""""'___"_'___'"'___"____"'__"'"___""___'____"'_"_'__' FIDELITY TREASORY POOL 12092 I FID2LITY INVESTMENfS 0.00 0.00 0.00 9.6'!0 4.606 4.6'/0 1 12043 FIDELITY INVESTMENI'S 0.00 0.00 0.00 4.6'!0 4.606 4.6'IO 1 12044 FZD6LITY INVESTMEYITS 0.00 0.00 0.00 4.6'!0 4.606 4.670 1 12045 FIDELITY I�ES1TfENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6'!0 1 12046 FIDELITY INVESTMENTS 80.9'1 80.97 80.97 4.670 4.fi06 4.670 1 12049 FIOELITY IbNESTMENTS 68,068.41 6B4O6B.41 68,060.41 4.6'!0 4.606 4.6'!0 1 12050 FID&LITY INVESTMENfS '/45.53 '/45.53 'l45.53 4.6'/0 9.606 4.670 1 12051 FIOELITY INVESTMENTS 195.49 195.49 195.49 4.6'!0 4.606 4.6'/0 1 12052 FIDELITY INVESTMENTS 1.'!6 1.76 1.76 4.670 9.606 4.670 1 12053 FIDELITY INVESRMENTS 60,185.89 60,185.89 60,185.89 4.670 4.606 4.6'!0 1 12054 FIDELITY INVESTMENI'S 0.17 0.17 0.17 4.670 4.606 4.670 1 12055 FIDSLITY INVESTMENTS 0.34 0.34 0.34 4.6'/0 4.606 4.670 1 1205'1 FIDELITY INVESTMENTS 9,192,377.69 4,192,37"/.69 4,192,379.69 A.6�0 9.606 4.690 1 1205B FIDELITY INVESTMENTS 62,299.09 62,299.04 62,299.04 4.670 4.606 4.6'/0 1 12059 FIDELITY INV6STMENI'S 1,302.68 1,30�.6B 1,30�.68 4.6"!0 4.606 4.6'!0 1 12060 FIDELITY INVE5IMENTS 1,251,006.28 1,251,006.28 1,251,006.28 4.670 4.606 4.6'/0 1 12061 FIDELITY INVESTMENTS 402,299.37 402�299.3'! 402,299.3] 4.6"!0 4.606 9.6'/0 1 12062 FIDELITY INVESTMENI'S 12'/,165.81 12'/,165.81 12'/,165.81 4.6]0 4.606 4.670 1 12063 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6�0 4.606 4.670 1 12069 FIDELITY INVESTMENI'S 0.00 0.00 0.00 9.6']0 4.606 4.670 1 12065 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.670 4.606 4.670 1 12066 FIDELITY INVESTMENPS 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 12067 FI�ELITY 1�STMENTS 78.02 28.02 28.02 4.6'/0 4.606 4.670 1 12068 FID6LITY INV6STMENPS 0.00 0.00 0.00 4.6'!0 4.606 4.6'!0 1 12069 FIDELITY INVESTMENTS 193.1'7 193.1] 193.1'/ 4.670 4.606 4.670 1 120'/0 FIDELITY INVESTMENf'S 0.00 0.00 0.00 4.6'!0 4.6U6 4.670 1 120'/l FIDELITY INVESTMEHTS 0.00 0.00 0.00 4.670 4.606 4.6"!0 1 12072 FID6LITY INVESTMEN'PS 0.00 0.00 0.00 4.670 4.606 4.670 1 120'/4 FI�ELITY INVESTM6P11'S 0.00 0.00 0.00 4.670 4.606 4.6"!0 1 120'/5 FIDELITY INVESTMENfS 0.00 0.00 0.00 4.670 4.606 4.670 1 12076 FIDELITY INV66TMEN'1'S 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 12077 FIDELII'Y INVESTMENR'S 0.00 0.00 0.00 9.670 4.606 4.670 1 120'!8 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6]0 4.606 9.6]0 1 120'!9 FIDELZTY INVES2'P'�'P1R'S 0.00 0.00 0.00 4.6'!0 6.606 4.6'!0 1 12080 FIDELITY INVESTM6NTS 0.00 0.00 0.00 4.670 4.606 4.670 1 12081 FIOELITY INVESTMENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6'!0 1 12082 FID6LITY I1�IVESTMENTS 0.00 0.00 0.00 4.6"!0 4.606 4.6'!0 1 12083 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6'/0 4.606 4.6'!0 1 12084 FIDELITY INVESTM6NPS 0.00 0.00 0.00 4.670 4.60fi 4.6']0 1 12085 FIDELITY INVESTMSPITS 0.00 0.00 0.00 4.670 4.606 9.6]0 1 12086 PIDELITY INVES1TiGN1'S 0.00 0.00 0.00 4.6'/0 4.606 4.6"!0 1 1208'! FIDELITY INVL•5'i'MEH'1'S 0.00 0.00 0.00 4.6�0 4.606 4.6']0 1 12088 FIDELITY INVE8TM6NPS 0.00 0.00 0.00 4.670 4.606 4.670 1 02/11/1999 -- CI1Y OF PALM DESERT --- PM - 5 INVESTMENT PORTFOLIO DETAILS - INVESIMENTS CITY JAMIARY 31, 1999 ACCRUAL INVESTMENT AVERAG6 PURCHASE STATED '-- YTM '-" M11AI�URITY DAYS NIIMB6R ISSUER HAIS+NCE DATE BOOR VALVE FACE VALUE MARitET VALUE RATE 360 365 DATE TO MAT _"______"_______________"___"__'_"_'__________'____'_________"____""_________"_____"_____" FIDELITY TREASURY POOL 12089 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6'/0 4.606 4.6'JO 1 12090 FIDELITY INVESTMENTS 34,535.37 34,535.37 34,535.3'/ 4.6'!0 4.606 4.6"!0 1 12091 FIDELITY INVESTMEN'1'S 0.00 0.00 0.00 4.670 4.606 4.6'/0 1 12092 FIDELITY INVESTMENTS 116.55 116.55 116.55 4.6'70 9.606 9.6']0 1 12093 FIOELITY INVESTMEH'1'S 81.60 81.60 81.60 4.670 4.606 4.670 1 12094 FID&LITY INV6STMENTS 0.00 0.00 0.00 4.670 4.606 4.670 1 12095 FIDELITY INVE51TfENTS O.Oa 0.00 0.00 4.670 4.606 4.670 1 12096 PIDSLII'Y INVESTMENTS 0.00 0.00 0.00 4.6']0 4.606 4.6'/0 1 12099 FIDELITY INVE51T1EN'1'S 0.00 0.00 0.00 4.670 4.606 4.670 1 12100 R FIDSLITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'/20 1 12102 FZDELITY INVESIMEPI'1'S 0.00 0.00 0.00 4.670 4.606 4.670 1 12103 FIDELITY INVESTMENTS 1,444-48 1,494.98 1,444.48 4.6�0 4.606 4.6"!0 1 12104 FIDeLI1'Y INVESTMENTS 6,731,212.BB 6,731,212.88 6,731,212.88 4.6'10 4.6a6 4.6'!0 1 12305 FIOELITY INVESTMENTS 54,'1'/4.89 56,'/'/4.89 54,'/'/4.89 4.670 9.606 4.6'!0 1 12106 PID6LITY INV651T7EN1'S 0.00 0.00 0.00 4.6'!0 4.606 4.670 1 12107 FIDELITY ZNVESTMSHI'S 1,38'/,202.54 1�387,202.54 1,387,202.54 4.670 4.606 4.670 1� 12108 FIDELITY INVES1MEId'1'S 0.04 0.00 0.00 4.670 4.606 4.690 1 12109 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 12110 PID&LI1'Y INVESTM6N'1'S 54,'/'/9.89 54,'!"l4.89 54,'!'14.89 4.6"!0 4.606 4.6'/0 1 12111 FIDELITY INVGSIMENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6]� 1 "__'"____'___'__ ""_""__"'"_' "_'"'___"'___ '___'___'_"___ _'___' "__'_' SUHTOTN.S and AVERAGfiS 15,779,3'/8.'19 15,'/'/9,396.69 15,7'/9,396.69 15,7'/9,396.69 4.606 4.6'!0 1 VNITED STATES TREASURY - DISCOVHT 190'!0 UNSTSD 6TAT65 TREASVRY 12/11/97 128,676.56 166,000.00 192,760.00 5.078 5.758 5.838 05/15/02 1,199 1'10�1 UNITED STATES 1REASUR] 12/11/97 4,'/18,945.80 6�1'/0,000.00 5,240,643.'/5 5.028 5.'13"1 5.817 OB/15/02 1-297 _"___"____"_'"' "___""__'___ '____""__""__ __"___'"_'___ SUB1'�TALS and AV6RAGES 9,86'l.122.36 4,84'/,122.36 5,383,403.'/5 6,336,000.00 5.738 5.818 1,289 HIGFAtARR SWEEP ACCOLJNTS 24015 CITY MAIN SW6BP (116) 5,86'1,516.47 5,867,516.4'/ 5,867,516.47 4.010 3.955 4.010 1 24019 DESERT WILLO➢4 SWEEP (UB) 319,543.98 319,5'13.98 319,543.98 4.010 3.955 9.010 1 24016 OFFICE COMPLEX SW66P (VB) 948,096.'12 948,096.'/2 948,096.72 4.010 3.955 4.010 1 "_`____'"___""' '_'__'___'_'__ ___'"'_'_"'___ "'__'_"____"'_ "___' "'___" _'""__ SVBTOTALS and AV6RAGES 6,654,430.10 '/,135,15�.17 '/,135,157.1'/ '/,135,15].1] 3.955 4.010 1 STATE fi LOCAL GO�T SRRIBS - TIME 23000 UNITED STATE6 TREASURY 12/11/9'! 430,000.00 430,000.00 430�000.00 0.000 0.000 0.000 10/O1/02 1,338 23001 UNIT6D STAT6S TREA811RY 1Z/11/9'/ 35,000.00 35,000.00 35,000.00 0.000 0.000 0.000 09/02/02 1-309 _"__""____'_____" ______"____'__ _""____"___'_' _____"________ ______ __"___ SUBTOTALS and AVERAGBS 465,000.00 465,000.00 465,000.00 465.000.00 0.000 0.000 1,336 02/11/1999 --- CITY OF PALM DESERT --- PM - 6 INVESTM6NT PORTFOLIO DETAILS - INVESTMENTS �ITY JANUARY 31, 1999 ACCRUAL INVESTMENT AVER4GE PURCHASE STATED '-- YTM --- MATl1RITY OAYS til]MBER ISSUER BAI.A3�10E DATE BOOR VALUE FACE VALUE MARXET VALUE RATE 360 365 DATE TO MAT __""__"____"__""________________""'"___'____'____"_____"____"_____"'________"_______________ TOTAL INVSSTMENTS and AVG. $ 159,349,'/09.32 160.'/10,03'l.19 152�5�5�091.09 159,988,349.39 5.165i 5.23'/} 351 02/11/1999 --- CITY OF PALM DESERT --- PM ' � INVESTMfiNT PORTFOLIO DBTAILS - CASH �ITY JANUARY 31, 1999 ACCFtUAL INVESTMENT AVERAGE PURCHASE STATED --- Y1'M --- MATURITY DAYS NUMIDER ISSUER BALANCE N+1'E BOOK VALUE FACE VALUE MARK&T VALUE RATE 360 365 DATE TO MAT PASSBOOR/CHECKING 13017 OFFIC6 COMPLfiX CHECKING (UB) 50,]64.12 0.000 � 0.000 0.000 13016 CITY MAIN CF3ECKING (UB) 56,331.98 0.000 0.000 0.000 13013 DESERT WILLOW CHECKING (UB) 155,23'l.86 0.000 0.000 0.000 13015 LIHRARY FOUNDATION CFIl(G (UB) 18,044.39 0.000 0.000 0.000 13018 OFFICE COMPLEX 1'RUST (VB) 23,B'/9.41 0.000 0.000 0.000 13020 RECREATZONAL FAC C1[6C%ING (UB) 18,619 JO 0.000 0.000 0.000 SUBTOTALS and AVEFWGES 540,]13.84 322,0'/� 46 0.00� 0.000 Accrued In[eseet at Purchase 159,429.55 TOTAL CASH $ 480.307.01 TOTAL CASH and INVESTMENTS S 153,045,e0a.93 159,830,016.33 .:..m=����`�`�.'�`��'�..�s���'��e's�..ass�..���....��a....��.....=a�....�a`�....��aas��...�zz��e�...ese�� r^ Y � � cl , . t ry t .�y;' ,'.a���,rw�`'"'����1� ' 6 � . . . � � � � � , � , � a� . � z, .�+.�d.: �v � J�F� r��` ' ,�'� " "�'"'tii Q . � � � � , � 0 o �n m � • ' �.�.,� .,,:.,.. .. , .. ,�,... � x ,+� e`r' 4^' � 'Y`;F��:� o � � , , _ � z . , , , , , o � � d � .,� .. ,� W p ":;yut'' s.�.na "� �..�,`r'4s'` "e' E Fi � 0 , � � � � � , p d � . . � � � Y ¢ � ;z,���f'�i r� dM�. y, :�'��%'��' � > ..i .' ;a � -.� a v: � a m O � W � � � � g�d < ; o ,,. : .,,,, ,: ; " '" =gg 8 � W 9 � o , � w < � W � � LL R 4 p�t�, ;. m N QO W � '9 � � � , � � � s�� LL � Q ■ � � � � R 0 _�_- g � d d , ., �., � u > o, .�o �� �p a o �$ � 5 � � , . 5 m 7 U m � . � �' m � O1 f ' .iJ.�.. Y . p� p m T � � N � Y , , � : . . � � O N � O � G' Q a � �� � , .� �. t,.�u' rgs 'Y.q' � � w p � � � � 0 (O Y N � � � � � � � � m ? ,��u✓^"' f'�- �,mt= �i �%) OIIO�ltlOd � � p1� � • LL ' Q O I� l�l � Oi t� O N O� 1� V N W Q N N �O � O O V O M sNomiw s LL w (%)4131A f w ¢ � �g < <� � 6 W = O� � — � �il n N 'u'�'e�"*;,.�. c � � � m � �',$�i o; � w �^v$''�p. `F' qY a t. �.:,,'` � ��� � � � <�� � "' � Z oi ee h } y 2 m = ��w� $ � � ��� ¢ W �p � �u+'�r,. � : r :� �_�..'. W p c0 n � io � 3 p � � a , , k f .+�;i r� � �e y vi v� ��. . � »aaa��nw�nwwww �nw ¢Jb c "�ra ~ a���i,�c�i,�g m �.,�'m,r' �� � � �� � � � ;`l.�({.�M``"k�kw' �4��:i"�'1§�'i, a.. E � Fl������$� . , , g�8 � �a w � `� ~ g� � ae � o '¢ ������`�'��� �S�n ? � � � � � � � m � t��N N� 6� � u� .-� � ¢ 8 ;Y "� ���°'}iia°����Y y ,'P�`v�""a�.:� � a � � � g � o , ;.. g � d ¢ w a Z «,«,«,«,«,«,«,«,«,»« «,«, = g o < 4 � �8�$W.`A�$8 , `8P'� w � ��,+ o 5 � ������$'� � ��� � ° ; � . � � . N CC1� t�o]� W - f O 3 � m ���,����� 2'�� r g a � � E �ainanem �r � ¢ n � yJ N � N N � U U �i p ! N U § g � a ' �n»�nnuiwwwwwui ww w a m m Z �y � N �. � � 0 5 _ g "' ~ N Z > Z �� � S g � Z� J Z�¢ 2 Y �j 6 8� $�8N � � g < o� >�a5w ¢¢ 3 cYi ^ a m or ¢¢oaogu�aa v�' � � w �� oQ¢y��m�U�U ��� Z a � � : Td~�¢��¢K¢ � � < °' wa�f ww >� �7 ,� W ¢� ��¢=F��f� � 0 LL �a �o�� � 7LL� L�L�2t~/1f.¢�� (a�J� ? O m N c> O t0 N N N Y� (%)U131A CITY OF PALM DESERT � INVESTMENT ACTIVITY REPORT ^ JANUARY 1999 EXECUTIVE SUMMARY As of 1/31/99, total porlfolio book value was approximately $159.3MM. This reflected a net increase of approximately $15.9MM from prior month, due to the investment of tax increment revenues and Bighorn bond proceeds. There was an unrealized portfolio net loss (market value-book value)of approximately$38M, based upon prevailing market interest rates. This was only a"paper" loss since there was no profit-taking. Significant changes in investment position, by security type, are discussed below: "United States Treas�ry-Co�oon". The City buys interest-bearing U.S.Treasury notes with maturities of 2 - 10 years to invest assessment bond proceeds. Although unrated, considered"AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY S43M DUE TO AMORTIZATION OF PREMIUMS. ". The City buys U.S. govemment agency and instrumentality notes with maturities of 2- 10 years to invest assessment bond proceeds. Agency debt guaranteed by U.S. Treasury; instrumentality debt is not (guarantee, instead, believed to be U.S. GovernmenYs"moral obligation"). Although unrated, considered"AAA." THIS ACCOUNT BALANCE DECREASED BYAPPROXIMATELY S989M DUE TO A CALLED SECURITY. "i oc^I Aaen�y Investment F�nd (LAIFI". The City temporarily invests proceeds of matured securities in $13MMM pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio(BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average mat�rity of 180-540 days. Deposits can be "cashed"within 24 hours. Limit of$30MM per account. S&P credit quality rating of"(A+)positive"; Moody's of"Aa3." THIS ACCOUNT BALANCE/NCREASED BYAPPROXIMATELY S352M DUE TO QUARTERLY/NTEREST INCOME. ��ritv oan to RDA". The City has made long-term cash advances at LAIF interest rate to RDA for property purchases. Advances will be repaid in future years from tax increment revenue generated by associated redevelopment projects. THIS ACCOUNT BALANCE D/D NOT CHANGE. ^� I�Treas�ry Pool". The City invests assessment bond proceeds (construction, cost of issuance, and bond reserve reserve monies)in "Fidelity institutional Money Market Fund: Treasury Portfolio-Class I" This $3.9MMM fund invests in U.S. Treasury bills and notes, and repurchase agreements for those securities. Weighted averege maturity is 60 days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa". THIS ACCOUNT BALANCE INCREASED BY APPROX/MATELY S8.2MM DUE TO BIGHORN BOND PROCEEDS. ^�Jnited StAtes Treas�ry-Discount". The City buys noninterest-bearing zero coupon securities("STRIPS")with maturities of 6 months-30 years, to invest assessment bond proceeds. Purchased at discount;face value paid at maturity (difference is yield). Although unrated, considered"AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "HiahMark SweaRAccounta". The City sweeps excess checking balances into"HighMark 100°/a U.S.Treasury Money Market Fund". This$905MM fund invests only in U.S.Treasury bills, notes, and STRIPS (no repos or reverse repos). Weighted average maturity is 90 days or less(per SEC regs). Although unrated, underlying securities considered "AAA". THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY S532M DUE TO MATURING SECUR/TIES. ��c.r._ n � ,.,.-i ro��!Serias-Time". The City buys special noninterest-bearing U.S. Treasury certificates of Indebtedness with maturities of 15 days- 1 year, to invest assessment bond proceeds(to comply with IRS yield and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered "AAA". THIS ACCOUNT BALANCE D/D NOT CHANGE. "Medium-Term Notes". The City buys interest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. The City currently holds"A"-rated General Motors and Ford MTNs. THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY S7•8MM DUE TO TAX/NCREMENT REVENUES. 02/11/1999 --- REDEVEIAPMENT AGENCY --- � - 1 PORTFOLIO MASTER SUMMARY �7' JANOARY 31, 1999 ACCRUAL AV6RAGE ---YIELII TO MA'f'URITY-'" PERCENT OF AVERAGE DAYS TO 360 365 INVESTMENfS HOOR VALUE PORTFOLIO TFi1N1 MATURITY EQVIVALENT EQUIVALBNT ___________"__'_______________________"_________"___________________"'___'____'___""__________" STATE & LOCAI. GO`1T SERIES - COUPON...........$ 66,429,662.00 40.25 1,728 1,1'/l 5.']60 5.840 PIDELITY TREASURY POOL................... ....$ 54,069,406.83 32.'J6 1 1 4.606 4.6'!0 I,p('Ai, AGSNCY INVESTMENT FUHD.................$ 20,612,332.84 12.49 1 1 5.193 5.265 UNITSD STATES TREASURY - COUPON..............$ 8,'l63�'l50.01 5.31 963 531 5.623 5.701 STATE & 3.00AL G0�1T SERIES - TIME.............5 6�462,883.00 3.92 900 395 0.000 0.000 UNITED STATES TREASVRY - DISCOUNf............5 5,920,113.89 3.59 2,339 1,964 5.454 5.529 HIG}MARR SWEEP ACCOVNTS......................5 1,'/93,519.75 1.09 1 1 3.955 4.010 FEDERA7. AGENCY - COIIPON....�..�����"""""$ 996,971.88 0.60 619 360 5.969 5.849 _""_'"'__""__"'___"'_______'_""""__"__'__'_'_____""_____"_'___"'___'"____ TOTAL I1dVESTMEl1'1'S and AVERAGES.............$ 165,043,640.20 100.00t.-... 8== ._ i88 5 0=8ts v6..118� �as...��..���.......v..�:..a=... .e�` ��...` v�.z C]1SH Pseebook/Checking - No Yield Totale... .......$ 132,319.23 0.000 0.000 (not included in yield calculatione) -------------'----'---------'----"-----� TOTAL CASH and INVESTMENTS.................$ 165,1'/5,959.43 s...'...:.....aa...��..�'.�e`���a��..`e��'.�e��.'�����...eses...�ea..am....m:. MONTH ENDING FIS�'n*. TOTAL EARNINGS JANUARY 31 Y6Afl 10 N+T6 Clurent Year 5 695,339.99 $ 4,946,098.82 AVERAG6 DAILY HAI.A47CE $ 159,029,900.32 $ 159,644,369.0'/ 6FFECTIVE RATE OF RETVRN 5.154 5.26� THE RDA'S INVESTM6NT PORTFOLIO IS IN COMPLIAt1Ce wI'1'H ALL CALIFORNIA GOVERNM6N'P PAVL 5. GIBSON CODE ANO RDA INVESTTI6NT POLICY PROVIBIONS RSLATING TO 1'F� INVESRMENT OF IA�nT. FINANCB DIRECI'OR fi CITY TRFASURER AGENCY FUNOS. NOTNITHSTAMI2NG ANY FU1T7R6 ACfIONS BY TE� RDA'S CAVERNING BOARD OR AN UNFORESEEN CATASTROPE�, THE RDH FIAS SVFPICIBNT CASH FLJw 11� DffiBT ITS EXP£N112RM11RE R6QUIREI�NTS FOR TFtE NE%T SIX MONTHS. MAR%ET VALVES WERS OBTAINED �� FROM U.S. HANR AND FROM INTERACTIVE DATA CORP. ALL BALANCES ARE HANK BALANC6S. 02/11/1999 --- REDEVELOPMENT AGENCY --- pM - z INVESTMENT PORTFOLIO �ETAILS - INVESTMENTS �A TNil7ARY 31, 1999 ACCRUAL INVESTM14�.NT AVEEtAGE PURCHASE STATED --' YTM --- MA7'UHITY DAYS NIIMBER ISSUER HALANCE DATE H00% VALUE FACE VALUE MAR%ET' VALVE RA1'E 360 365 DAT6 TO MAT STAT& & IAGL GOVT SERI6S - COUPON 19500 UNIT6D STAT6S T[2EASURY 0'!/24/9'/ 5,686,82"l.00 5,686,827.00 5,686,82'].00 3.165 3.122 3.165 04/O1/02 1,155 19501 IINITED STATES TREASURY 0]/24/9'/ 60,'/42,835.00 60,742,835.00 60,'/92,835.00 6.090 6.00'/ 6.090 04/18/02 1,1]2 __"__________'___ _______""'__ _'__"'"_____' __""___""__ ___"" ____"" '__'__ SVBTOTALS and AVERAGES 6fi,429,fi62.00 66,429,662.00 66,429,662.00 66,429,662.00 5.760 5.840 1,171 FIDELITY TREASURY POOL 11002 I FI�ELI1'Y INV2STM6NT5 25,949,803.49 25,949,803.49 25,949,803.99 4.6'/0 4.606 4.6'!0 1 11003 R FIDBLITY INVESTMEN'1'S 2,024,738.71 2,024,738.71 2,024,738.71 4.670 4•606 4.6'10 1 11005 I FIDELII'Y INVBSIMBNPS 4,316,9'l2.25 9,316,972.25 4,316,9'l2.25 4.6'!0 9.606 4.6'IO 1 11006 R FIDELITY INVESTMENI'S 257,480.92 257,480.92 257�980.92 4.6'!0 4.606 4.670 1 11008 R FIDELITY INVBSIMBlTTS 1,]2'/,844.55 1,7Z�,849.55 1,'/27,844.55 4.6]0 9.606 4.6]0 1 11009 I FIDELITY INVES'iMEN'PS 1�881�758.'!6 1,881,758.'/6 1�881,'/58.76 4.670 4.606 4.670 1 11030 I FID&LITY INV&51MECTTS • 4,6"!9,'/59.38 9,6'/9,754.38 4,6'/9,'l59.38 4.670 4.606 4.670 1 11011 R FIDELITY INVESTM6NTS 2�782�883.88 2,'l82,883.88 2,787,883.88 4.6'/0 4.606 4.6'/0 1 11012 E PID6LITY INVESTMENTS 0.00 0.00 0.00 9.'120 4.655 4.720 1 11018 FIDELITY INVESTM6N'1'S 201.82 201.82 201.82 4.670 4.606 4.670 1 11019 FID6LITY INVES2MENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6')0 1 11020 FIDELII'Y INVBSTMENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 11022 FIDELITY INVESTMENTS 4'19,606.25 979,606.25 4'l9�606.25 4.6'!0 4.606 4.6�0 1 110z3 FIDELITY INVESIMENTS 0.00 0.00 O.OU 4.6'!0 4.606 4.6'!0 1 11026 FIDeLITY INVESTMBNTS 0.00 0.00 0.00 4.670 4.606 4.670 1 11028 FIOELII'Y INVE5IMENTS 119,96].50 119,96].50 119,96"/.50 4.6'IO 4.606 4.6'10 1 11029 FIDELITY INV651MENTS 192.05 192.05 192.05 4.670 4.606 4.670 1 11030 R FID6LITY INVESTMIIi1'S 69'!,'/44.92 697,'194.92 69'/,'/44.92 4.6'!0 4.606 4.670 1 11031 FIDELITY INV651MENTS 8.92 8.92 8.,92 4.670 4.606 4.670 1 11032 PID6LITY INVESTM8NT5 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 1103'! FIDELII'Y INVESIMENTS 0.17 0.1"/ 0.17 4.670 4.606 4.6'10 1 11038 FIDBLITY INVESTMBNfS 219,45fi.28 219,456.28 219,456.28 4.6'!0 4.606 4.6'/0 1 11039 R FIDELII'Y INVE5IMENTS 540,493.59 540,493.59 580,493.59 4.6'10 6.606 4.6'10 1 11040 FIDELITY INVESTMENTS 454.49 954.49 454.99 4.690 4.606 4.6'!0 1 11091 I FIDELITY INV5S7'MQ'11'S 83�007.77 B3�007•'/'/ 83�00'/.77 4.670 4.606 4.670 1 11064 FID6LITY INVES7T�NTS 36,5]3.13 36,573.13 36,5�3.13 4.6�0 4.606 4.6'!0 1 11049 FiDELI17 INVESITISNTS 70.Q4 '10.94 "l0.44 4.6'!0 4.606 4.670 1 11050 PID6LITY INV6STMENTS 2,842.93 2,892.93 2,842.93 4.6'!0 4.606 4.6'!0 1 13051 FIDELITY INVESTr164TT5 0.00 0.00 0.00 4.6'10 4.606 4.6]0 1 11052 FIDBLITY INVE5IMEN'PS 1],594.08 1'/,594.08 1'/,594.08 4.670 4.606 4.6"!0 1 11055 FIO&LITY INVESTM6NPS 3,585.48 3,585.48 3,585.48 4.670 4.606 4.670 1 11056 FIDELITY INVESITffiiTS � 6.59 6.59 6.59 4.6'!0 6.606 4.670 1 1305'! FIDBLITY INV661MENT5 19,489.98 19�489.98 19,489.98 4.670 4.606 4.670 1 11058 FIDELITY INVESITI&NTS 25,220.66 25,220.66 25,220.66 4.670 4.606 4.670 1 13061 FID6LITY INVE6TMENTS 30,718.26 30,]18.26 30,918.26 9.6'/0 4.606 4.6'10 1 31062 FIDELITY INVESTMENTS 4,9�8,345.56 4,478,345.56 4,478,345.56 4.670 4.606 4.670 1 02/11/1999 --- REDEVEIlJPMENT AGENCY -- PM - 3 INVESTMENT PORTFOLIO DETAILS - INVESTMENTS RDA JN7lJARY 31, 1999 ACCRVAL INV6STMENT AVERAGE PURCHASE STAT&D --- Y1M --- MATURITY DAYS NUMBER ISSUER BALAHCE OATE HOOK VALUE FACE VALUE MARI(ET VALU& RAT6 360 365 DATE TO MAT FIDELITY TREASURY POOL 11063 FIOELITY INVESTMENTS 1,88'/,843.'/8 1,887,843.'/8 1,BB'/,843.78 4.6'!0 4.606 4.6'!0 1 11064 FIDELITY INVSSTMENTS 304.'/6 304.76 104.76 4.670 4.606 4.6'!0 1 11066 FIDELITY INVESTMENTS 1,797,456.67 1,797,456.6'/ 1,797,456.6'] 4.670 4.fi06 4.6'!0 1 11068 FIDELITY INVESTMENTS 1,053.22 1,053.22 1�053.22 4.6"!0 4.606 4.6'/0 1 11069 FIDELITY INV651MENTS 0-04 0.04 0.04 4.6'/0 4.606 4.6']0 1 110'!0 FIDELZTY INVESTMENPS 0.00 0.00 0.00 4.6']0 4.606 4.6')0 1 110'/l FIDELITY INVESTMENTS 0.00 0.00 0.00 4.670 4.606 4.670 1 110'!4 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.6'/0 4.606 4.6']0 1 11075 FIDELITY INVGSTMENTS 0.00 0.00 0.00 4.760 4.695 9.760 1 11076 FIDELITY INVESTIMiNPS 0.00 0.00 0.00 4.6'!0 4.606 4.6'/0 1 11077 FID6LITY INVESTMEMCS 0.00 0.00 0.00 4.670 9.606 4.670 1 130'/8 FIDELITY INVS5IMENTS 0.00 0.00 U.00 4.670 4.606 9.6'/0 1 11079 FIOELITY INVESTMENTS 1.00 1.00 1.00 4.6'10 4.606 4.6'!0 1 11080 FIDELITY INVESTMENPS 0.00 0.00 0.00 4.6]0 9.606 4.6'/0 1 11081 FIDELITY INVESTMENTS 0.00 0.�0 0.00 4.670 4.606 4.6"!0 1 11082 FIDELITY INV6STMEN'PS 19.48 19.98 19.68 4.6'!0 4.606 4.6'!0 1 11083 FID8LIT1' INVESTMENTS 56.93 56.93 56.93 4.670 4.606 4.6'!0 1 11084 FID6LI1'Y INVESTt�NTS 1.00 1.00 1.00 9.670 4.606 9.6'/0 1 11085 FIDELITY INV2STMEN'fS 0.00 0.00 0.00 4.6]0 4.606 4.6'!0 1 11086 FID6LITY INVESTMEN'f'S 0.00 0.00 0.00 4.6'!0 4.606 4.6'10 1 11092 FIDELITY INVESThIIi1d1'S 13.12 13.12 13.12 4.6'!0 4.606 4.6'!0 1 11093 FI�ELITY INV6STMENI'S 0.00 0.00 0.00 4.6]0 4.606 4.6]0 1 11096 FIDELITY INVESTMEN'1'S 0.00 0.00 0.00 9.670 4.606 4.6'!0 1 1109] FID6LITY INVESTMENTS 0.00 0.00 0.00 4.670 4.606 4.670 1 11099 FIDSLITY INVESTMENY'6 0.00 0.00 0.00 4.670 4.606 4.6'!0 1 11100 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.670 9.606 4.670 1 11101 PID6LITY INVESIMENTS � 1.91 1.91 1.91 4.670 4.606 4.fi'!0 1 11102 FIDELTTY INVESTMENTS 0.00 0.00 0.00 4.fi70 4.fi06 4.670 1 11103 FIDELITY INVESTM6NTS 0.00 0.00 0.00 i.6'!0 4.606 4.690 1 11104 FID6LITY INVESTMENTS 0.00 0.00 0.00 4.67U 4.606 4.670 1 11106 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.670 4.606 4.6'/0 1 11107 FIDELITY INVSSTMfiTTTS 130.59 130.59 130.59 4.670 4.606 4.6'!0 1 111�0 PID6LITY INVESTMBNTS 1.00 1.00 1.00 4.690 9.606 4.670 1 11109 FIDELII7 INVESTME�11'S 0.00 0.00 0.00 4.6'!0 4.606 4.6'!0 1 11110 FI�ELITY INVESTMENI'S 0.00 0.00 0.00 4.6]0 4.606 4.6'!0 1 11111 FIDELITY INV6STMENTS 0.00 0.00 0.00 4.6'!0 4.606 4.6'!0 1 11112 PIDELITY INVESIM6NTS 0.00 0.00 0.00 4.6'!0 4.606 4.670 1 11113 FIDELITY INVESTMENTS 222.'/9 2]2.'/9 222.'/9 4.670 4.606 4.6'!0 1 11119 FZDSLITY INVSS'fMENTS 682.'/3 682.73 682."!3 4.670 4.606 4.670 1 11129 FID6LITY INVESTMENTS 0.00 0.00 0.00 4.670 4.606 4.6"!0 1 11130 FIDELII'Y INVESTM&NTS 0.00 0.00 0.00 4.670 4.606 4.6'!0 1 SUBTOTALS and AVERAGES 54,064,406.83 59,069,906.83 54,064,406.83 54,064,606.03 4.606 4.670 1 . . ^ --- REDEVELOPMENT AGENCY --- pM - 4 02/11/1999 INVESTMENT PORTFOLIO DETAILS - I�STMETTTS �A .TANVARY 31, 1999 ACCRUAL INVESTMF.N1' AVERAG6 PURCHASE STATED --- YTM --- M1�T�ITY DAYS }.NMffiER ISSUER BALARC� DAT& BOOR VALUE FACE VALVE MARICET VALUE RATE 360 365 DATE TO MAT ___'__"__"_'"__"__"__'__"____""___'________"___"_"'"""_""'_"'___'__"'__" 7pCAL AGENCY INVEST61Ek1T FU�1� 1 21000 STATE OP CALIFORNIA 20.612,332.84 20,612,332.84 20,612,332.89 5.265 5.193 5.265 AVEIWGES 14,444,601.26 UNITED STATES TRBASURY - COUPON 17013 R UNI'PED STATES 1REASURY 07/O1/95 105,162.22 104,000.00 306,535.00 '/.750 6.098 6.182 11/30/99 302 17083 UNITED STATE$ TREI+9VRP 03/21/9'1 1,999,135.69 2,000,000.00 2.000,000.00 5.000 6.129 6.209 02/15/99 14 l�pg� UNITED STATES TREASVRY O1/22/90 151,015.85 151,000.00 151,094.38 5.500 5.273 5.347 02/28/99 27 17088 UNZTED STATES 1'REASVRY 01/22/98 155,444.'/4 155.000.00 156,017.19 5.8"!5 5.2'!4 5.34] 08/31/99 711 17089 VNITED STATES TREASURY O1/22/9B 162,865.62 160,000.00 164,000.00 7.125 5.266 5.339 02/29/00 393 y7090 UNITEO STATES TR�ASURY O1/22/98 168,153.'!1 166,000.00 169,890.63 6.250 5.282 5.355 OB/31/00 5'/'/ 1'l091 UNITED STATES TREASUIZY O1/22/98 1'l0,835.23 170,000.00 173,293.75 5.625 5.289 5.363 02/28/O1 758 1'l092 VNITED STATES 1REASURY O1/22/98 100,465.02 1'/6,000.00 183,810.00 6.500 5.329 5.403 OB/31/O1 942 17093 VNITED STATES TRSASURY O1/]2/98 185,028.29 181,000.00 189,201.56 6.250 5.35'1 5.431 02/28/02 1,123 17095 UNI1'ED STATES 1REASURY O1/22/90 433,503.24 422,'/00.00 444,363.38 6.750 5.357 5.432 08/31/02 1,30'! 1'l096 UNITED STATES TREASllRY O1/22/98 915,555.98 405,200.00 425�966.50 6.250 5.35"! 5.43Z OB/31/02 1,30'! 1'!09'/ VNITED STAT&S TREASVRY O1/22/9B 9,332.5'1 9,100.00 9.566.38 6.250 5.35'! 5.432 OB/31/02 1,307 17098 UNI1'ED STATES TREASURY 03/10/98 1,378,962.52 1�368�000.00 1�399�20'/.50 6.125 5.523 5.599 09/30/00 60] 17099 UNITED STATES TREASURY 03/10/98 1,5�3,296.40 1,54'],000.00 1,612,'l47.50 6.375 5.582 5.659 09/30/O1 9']2 19101 UNITED STATSS TR6ASURY 03/30/98 1�674�992.93 1�673,000.00 1,684,501.88 5.950 5.480 5.556 09/30/99 241 _____"___'____"__ _'____'___"__ "'__'__""_""_ ""_'"____"'_' 6UBTOTALS and AVERAGES 8�764�Z'15.1'/ e�'l63,'/50.01 8,8'l0,195.65 8,688,000.00 5.623 5."!O1 531 STAT6 E Il�CAi• CAVT SERIES - TIM6 19009 UNITED STATES TREASORY 07/24/9'/ 12,65].00 12,657.00 12,65'/.00 0.000 0.000 0.000 03/25/99 52 19030 � VNITEO STATSS TRFl+SVRY 07/24/9'i 1,581,417.00 1,SB1r41'/.00 1,581,417.00 0.000 0.000 0.000 04/O1/99 59 19011 UNIT6D STATES 1REASURY 0'!/24/9'! 12�656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/16/99 227 19012 UNI1'ED STAT66 TR&ASURY 0'//24/9'/ 1'!]�191.00 1'/'/,191.00 177.191.00 0.000 0.000 0.000 SO/O1/99 242 19013 UNIT&D STATSS TR6ASUA1 0'I/24/97 11,65'1.00 12,657.00 12,65'/.00 0.000 0.000 0.000 03/09/00 402 19014 VNITED STATES TRFJ+SUR'� 07/24/9� 1,627,191.00 1,622,191.00 1,622,191.00 0.000 0.000 0.000 04/O1/00 425 19015 UNZTED STATHS TR6ASUR] 0'//24/97 361,813.00 361,813.00 361,813.00 O.U00 0.000 0.000 04/12/00 436 19016 UNIT6� STAT&S 1'REASVRY 07/24/97 158,275.00 158,275.00 158�275.00 0.040 0.000 0.000 30/OS/00 612 19017 iR1ITED STATES 1REA9URY 0'!/24/9� 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 03/29/O1 '!e'/ 19018 UNIT£� STA1'SS 1'kEASURY 07/24/97 1,669,977.00 1�664,977.00 1�664�9]'l.00 0.000 0.000 0.000 04/O1/O1 '/90 19019 UNIT5D STAT&S TkEA9URY 0'//24/9'/ 12,656.00 12,656.00 . 12,656.00 0.000 0.000 0.000 09/20/O1 962 19020 llNTTED STATBS TRFT�SURY 07/24/97 BB�B27•00 88�827.00 BB,82'/.00 0.000 0.000 0.000 10/O1/O1 9'/3 19021 UNIT6D STATES TR8A3VR1' 07/24/9'/ 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 03/14/02 1,137 19036 UNITED STAT6S TREASURY 10/28/98 372�456.00 3'l2,456.00 3]2,456.00 0.000 0.000 0.000 02/18/99 1'/ 19037 UNITED STATES TREASUR`� 10/28/98 359,798.00 359�798.00 359,798.00 0.000 0.000 0.000 03/25/99 _ 52 _____""_"""'_ "__"_"'__"" _""___"___"__ '_'_'"___'____ SUBT(1TAL5 and AVERAG65 6,619,073.81 6,462,883.00 6,462,883.00 � fi,462,883.00 0.000 0.000 395 02/11/1999 -- 3�DEVSLOPMENT AGENCY -- PM - 5 ITiVESTMENT PORTFOLIO DETAILS - INVESTMENTS �A JANOARY 31, 1999 ACCRUAL INVESI,MENT AVERAGE PURCHASE STATED --- YTM --- MATlJR2TY DAYS NUMBER ISSUER BAI.ANCE DATE HOOR VALVE FACE VALVE MMRET VALVE RATE 360 365 DATE TO MAT '__'__'___'______"__"_'____""'__'____"'__"'___"__'____'____'___'"'_'"___"___ VNITED STATES TREASUEtY - DISCOVNI' 18023 lID1ZTED STATES TREASURY O1/22/98 150,'/99.82 198,000.00 164,2'/8.13 4.'!04 5.3'J4 5.449 02/15/03 1,4]S 18025 llNITEO STATES TREASVRY O1/22/9B 130,16'/.96 181,000.00 143,442.50 4.628 5.434 5.509 02/15/09 1,840 18027 UNITED STATES 1REASURY O1/22/98 4,989,6'/1.22 '/,143,000.00 5,546,985.94 4.590 5.464 5.540 OB/15/04 2,022 10028 UNITED STATES TREASUF2Y O1/22/98 394,2'l9.47 532�400.00 432,90'1.'/5 4.662 5.395 5.4�0 08/15/03 1,656 18029 llNITEO STATES TR£ASURY O1/22/98 255,200.42 344�600.00 280,202.88 4.662 5-395 5.470 OB/15/03 1,656 _______"___""'___ _'__"'__""'__' ___"__"__"__ "'_'"___'"'___ SUBTOTALS and AVERAGES 5,920,113.89 5,920,113.89 6,567,81'l.20 8,399,000.00 5.454 5.529 1,964 HI6iIIAARR SW£EP ACCOONTS 26016 HOUSING AUTH CfSK SWE6P (UB) 1,598�185.53 1,598,185.53 1,598,185.53 4•O10 3.955 4.010 1 2601] HOUSING AUTH 1RT SWEEP (UB) 195,334.22 195,334.22 195,334.22 4.030 3.955 4.010 1 _'____""___"___"_ ____'___"""' '"__"_______" _"'__"'_'"___ '___'" "___" SUBIOTALS and AVERAGES 1,724,913.78 1,793,519.75 1,793,519.75 1�793�519.'/5 3.955 4.010 1 FfiDBWil. AGENCY - COUPON 15022 FEDERAL NATIONAL MTG A6SOC OS/18/98 996,9'l1.88 1,000,000.00 1,003,43].50 5.430 5.]69 5.849 O1/27/00 360 AV6RAGfi5 996�852.53 __"___"___'"___""____'___'"____"'___"'__"'_"'_'"__""__'"___"_'_'_""__"_""_____'___'_'__"_______ TOTAL INV65TMENPS and AVG. 5 165,043,640.20 165,804,254.'/7 � 158,963,899.26 16'l,949,804.42 5.04Bt 5.118i 588 02/11/1999 -- �DEV£IAYMENT AGENCY -- � 6 INVESTMENT PORTFOLIO DETAILS - CASH �r' JAHUARY 31, 1999 ACCRUAL INVESTMENT AV&RAGB PURCfiASE STAT&D -'" YTT1 "- MATURII'Y DAYS NVhIDER ISSVER HALANCE DATE HOOK VALVE FACE VALUE MARRET VALUE RATE 360 365 DATE TO MAT _'__"'__"___"'_""______"__'"__"'""'"""'____""__"__""___"____'___'_"_'__'"______"_____ PASSHOOK/CH6CRING 25014 SELF-HELP CHECKING (HA) 58,841.81 0.000 0.000 0.000 25015 HOUSING AUTH C7[ECICING (�) �3.64'/.95 0.000 0.000 0.000 25016 HOUSING AUTH TRVST (UB) 829.4'/ 0.000 0.000 0.000 __"____"'___'_ _____"_______' 9qBTOTALS and AVERAGES 66,001.05 132,319.23 0.000 0.000 _'__"___'___"'___"___'_______"____"____"___________'__"_"___"'__'""___'_"__"'_'__"""__""'__"'"___"" TOTAL CASH and INVESTMENTS $ 359,029,900.32 165,175,959.43 a�se�se.�se.��_:..em...=...�:.z....�a�..=ee..me�..�=a�.�am��.e�m��e�sa�..:�:�....�a...=�:................ — , , � m �» � ; ; , , , S � � , , , , , , , � � � � � � � � ..;4.� � � . . � � . f.. _ m � � . . � � �r, � � , . � � � , � i . � i i i Vj� N ...t T i i � . 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"����xFi'.F r.1R�,s. ."< � HMMYi19MHM19M MYi^ �Q � Z pma pm p ^ �� � p� 00000�r(O N�1� - q �pDcnOcm� y . . w �i-5Lr 1$�t ��3x 4 .jR.°ai. y w �p�y�Q��p{C1 n��yp m� �N Ori_ i i � D�y f0p�p Na � 0 u� . .., . .. . �' O a Qtp Op f 0p I�O W I�0 O I� G D � LL :. W � (0 In N W�U N� N � N �-,� .: , Rin. iD � � L4� '�^fi�y � F r vyi��.w6�S '-�p� � -� ^ O � ui � m wwwwwvaawv�vi vaw � O � � ¢ �< Z m Q m g(���ityi.8��(�J1� � �� W 6 J � � � r � mNN�tO�ln� . � . ,��� W j . � gp � � m `a�p'�c�i��nF�tn�e�'i �<`��"�U�'� w �¢ p � � W tDUI�mNN.- Vi N Q C LL ' O � ^ W � O � ¢ � �n�ndi�n�na�wwwuf u�w � ¢ Z Q § g a � � m g � a �, _ � r __ W � � g� „ o � o N ¢ ^ � M N !N- Z N 2N� 8e psp � N w wr=Z � ¢ > ' Ytn W� ZWZ�S� y Q = " � � � y$ gN��Oo¢g ¢ = a � ~ � O¢ �OOa»a� 3 ¢ W (77t� , (7 wUUQp � � U"' ��6¢N(7(7�ww � O m o� y��¢aa�a �`�� ¢ � � �� Q�Q a��w LL 1 J CI � LL W IW-� ~F r 2 W W�— Y`� O Q y uj � Z 2 m N m � O N LL g�N�2�8�W �a� L vi ui a v < (%)U131A REDEVELOPMENT AGENCY ^ NVESTMENT ACTIVITY REPORT JANUARY 1999 EXECUTIVE SUMMARY As of 1131/99, total portfolio book value was approximately $165MM (with SLGS). This reflected a net increase of approximately $10.6MM from prior month, due primarily to investment of tax increment revenues. There was an unrealized portfolio net gain (market value-book value)of approximately$30M, based upon prevailing market interest rates. This was only a"paper" gain since there was no profit-taking. Significant changes in investment position, by security type, are discussed below: •-te 8 Loc^I Go••' ��•��� -Gouoon." Palm Desert Financing Authority buys special interest-bearing U.S.Treasury notes with maturities of 2- 10 years to invest proceeds of advance refundings held in escrow (to comply with IRS yield and arbitrage rebate restrictions). Nonmarketable. Priced 5bp below U.S.Treasury borrowing cost for Treasury securities of comparable maturiry. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "FldelitkTreasLry Pool." RDA invests tax-exempt bond proceeds (construction, cost of issuance, and reserve monies)in Fidelity Institutional Money Market Fund: Treasury Portfolio-Class I" U.S. Bank, as trustee, pays bond expenses and debt service from this fund. This $3.9MMM fund invests in U.S. Treasury bills and notes, and repurchase agreements for those securities. Weighted average maturity is 60 days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa° THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY 5673M DUE TO PENDING DEBT SERVICE PAYMENTS. "�al Aaencv Investment F�nd ILAIFI:' RDA invests City's loan in $13MMM pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio(BAs. CP,Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 1 SO-540 days. No loss of principal in 20 years of operation. Deposits can be"cashed"within 24 hours. Limit of$30MM per account. S&P credit rating of"(A+)positive"; Moody's of"Aa3" THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY S9.2MM DUE TO TAX INCREMENT REVENUES AND QUARTERLYINTERESTINCOME. "�Jnited States Treas�ry-Go�oon" RDA buys interest-bearing U.S.Treasury notes with maturities of 2- 10 years to invest tax-exempt bond proceeds. Although unrated, considered"AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY S1 M DUE TO AMORTIZATION OF PREMIUMS. , ",�tate 8 Local Govt Series-Time." Palm Desert Financing Authority buys special noninterest-bearing U.S. Treasury certificates of indebtedness with maturities of 15 days- 1 year to invest proceeds of advance refundings held in escrow (to comply with IRS yieid and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered "AAA." THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY S732M DUE TO ADDITIONAL PURCHASES. ^tinited St-tPs Tre^s�ry -Discount" RDA buys noninterest-bearing zero coupon securities ("STRIPS")with maturities of 6 months-30 years to invest tax-exempt bond proceeds (construction monies). Purchased at discount;face value paid at maturity(difference is yield). Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. ." RDA sweeps excess checking balances into"HighMark 100% U.S. Treasury Money Market Fund" This $905MM fund invests only in U.S.Treasury bills and notes (no repos or reverse repos). Weighted average maturity is 90 days or less (per SEC regs). Although unrated, underlying securities considered"AAA." THIS ACCOUNT BALANCE INCREASED BY APPROX/MATELY S76M DUE TO MATURING SECURIT/ES. "Federal AQg�nry -Go�oon:' RDA buys U.S. government agency and instrumentality notes with maturities of 2- 10 years to invest advance refundings and tax-exempt construction funds. Agency debt guaranteed by U.S.Treasury; instrumentality debt is not(guarantee, instead, believed to be U.S. GovernmenYs"moral obligation"). Although unrated, considered"AAA." THIS ACCOUNT BALANCE DID NOT SIGNIFICANTLY CHANGE. � STATE OF CALIFORNIA . ' �-^�� MATT FONG, T�easuier OF CE OF THE TREASURER � SACRAMENTO � Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 December , 1998 Statement 8eeouat Nnmber : 98-33-621 CITY OF PALM DESERT Attn: CITY TREASURER 73510 FRID W1�RING DRIVE PALM DESERT CA 92260 Account Summary Totai Deposit : 0.00 Beginning Balance : 2T,912,053.25 Totai Withdrawai : 0.00 Ending Balance : 27,912,053.25 � ��.� B� � �. TJ �v.p� E� � i �� L� ''.�r ss, _.i�_ii� 4��.'Y.:[ �i • . _-�/ii� ���_: . :.l':: �.. �(7 `., . I.;4 i � � ' - I, '. i.� . Page : 1 of 1 • ' POb�ED MONEY INVESTMENT ACCbC�NT SUMMARY OF INVESTMENT DATA A COMPARISON OF DECEMBER 1998 WITH DECEMBER 1997 (Dollars in Thousands) DECEMBER 1998 , DECEMBER 1997 CHANGfi Average Daily Portfolio $32,147,129 $27,724,618 +g4,422,511 Acc:ued Eamings $146,724 $135,263 +$11,461 Effective Yield 5374 5.744 - 37 Average Life—Month End(in days) 198 201 _3 Total Security Transactions Amount $17,495,319 $23,303,772 -$5,808,453 Number 391 519 _iZg Total Time Deposit Transactions Amount $648,750 $643,490 +$5,260 Number 59 56 +3 Average Workday Investment Activity $824,730 $1,088,512 -$263,782 Prescribed Demand Account Balances For Services $226,490 $156,665 +$69,825 For Uncollected Funds $151,957 $154,167 -$2,210 LOCAL AGENCY INVESTMENT FCJND* SiJMI�IARY OF ACTIVITY DECEMBER 1998 BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE $13,908,152,604.36 $2,253,145,000.00 $1,507,609,271.17 $14,653,688,333.19 •Local Agency Investment Fund Invested Through Pooled Money Investment Account � � State of California Pooled Money Investment Account Market Valuation 12131198 Descri tion , � Carrying Cost Pius "� , , �:� P ������ ��., �m.�, ;��. ��� ,- , -�- �=�, � s ,Accriied�interest Purch. � Amortize`d"Cost`� �� '� FairNaioe- �� `=-a Accrued interest� United States Treasu : Bills $ 3,207,800,170.01 $ 3,273,658,263.07 $ 3,278,750,166.80 NA Notes $ 4,828,095,088.02 $ 4,826,497,416.32 $ 4,861,586,500.00 $ 65,657,07625 Federel en : Bonds $ 2,815,609,518.80 $ 2,812,199,216.19 $ 2,816,148,994.00 S 41,122,790.63 Floaters $ 170,000,000.00 $ 170,000,000.00 $ 169,918,100.00 S 1,190,959.90 MBS $ 89,537,569.98 $ 89,537,569.96 $ 91,117,662.54 $ 526,246.84 GNMA S 1,986284.48 $ 1,986,284.48 $ 2,228,196.34 S 19.644.44 ggq $ 278,639,578.87 $ . 278,556,609.56 $ 279,746,081.50 $ 2,716,777.77 FHLMCPC $ 79,331,848.26 $ 19,331,848.26 $ 20,603,392.10 $ 310,276.45 Discount Notes $ 2,791,915,768.84 $ 2,832,196,628.42 S 2,834,795,296.05 NA Bankers Acce tances $ 65,410,488.10 $ 66,016,24526 $ 66,028,537.13 NA Co rate: Bonds $ 629,2A3,852.80 $ 628,391,144.47 $ 629,923,196.20 $ 71,957,703.81 Floaters $ 1,024,392,869.88 $ 1.024,236,62821 $ 1,022,492,080.50 $ 6,228,859.64 CDs $ 4,593,820,714.03 $ 4,592,061,997.22 $ 4,593,395,178.31 $ 64,565,246.11 Bank Notes $ 1,934,980,489.48 $ 1,934,980,489.48 $ 1,935,623,782.10 $ 29,241,178.39 Re urchase reemen NA NA NA NA Time De sits $ 1,958,140,000.00 $ 1,958,140,000.00 $ 1,958,140,000.00 NA AB 55&GF Loans $ 2,172,055,812.34 $ 2,172,055,812.34 $ 2,172,055,812.34 NA Commercial Pa er - $ 7,980,736,794.30 $ 8,039,231,629.95 $ 8,040,465,758.92 NA Reverse Re urchase $ 297,895,000.00 $ 297,895,000.00 $ 297,895,000.00 $ 855,787.55 TOTAL $ 34,263,801,846.11 $ 34,421,182,983.73 $ 34,475,123,734.83 $ 222,674,970.68 Fair Value Including Accrued Interest $ 34,897,798,705.51 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(1.001567080). 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 $20,031,341.60, or $20,000,000.00 x 1.001567080. ��,� � � ���" , ».:..,.: Par4icipatian factor�far12"31=98 is1:00156ZO8D, ,g .� < ,.;�;, , . _ _,. _ ,,,. _ Z Z 2 Z � r. C) n c� � D -� � � _...,�;sz�....,: O o O o m O O � D G� O m A =:.;�'z�. . • � � � � � � � ; " z `� o a :F�=�A�v�� • >H.�::.,; rn �,, w "��,r:�>;;�>. � T 3 � Z ro � m m � :'�;rac^:-.` O O -< C y.^a�Y:., ' '9 � {C O O -i A �{ Z NZ .� •r,'y,><.:�3`:,.< O (p � nZ M Ol D � � 1i,o:'.^o;..'s�"%z � N7 :�i..isr,•::.;;:"':� O � �" m � r" ,:A.<:;:>;,..:. M � � � .. � M N N M N M N �..:.�i'`""�.,�' O 7 � m O��t r N � ,...'sd:.,�.,V..� m Nf i' ;�'�'�.x N n �::,..� C Q � � e � i7i A t0 � W tJ� "^��� � a C � � o+ w .i w Yi' o+ o >� � � � � �p `�:,. 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' �• Z � .�.x... � /� N N N M M N M � ' O y, UN � � �� = 17� . + fi YY � V .a N p xs � N N N tJ1 N V a''�.;ts� W N tll U1 .?;�3'�..: . � N N M M N M 'S%���� � � � w , v � � W �+ „ :��- o -� w u�0i u Li + o ���.� ' � m � m M M M M M M :.;;�s�. � Z N N j �. z '� � N o � � ��_:" v O V O N � O � •y���z. r M M M M N �;�;�'; � O W ' ����.,. � O � � N fo C `�`� m �C X N A O N Af 9z:..� 4/ q w��''v . O. ...:.._.... '_ NM . ,��i�;�.. , Q � ~ N � '�a�,�' 7 F; .S. � J ..,lyv�t..a' � � W O! ) 4.�:�1�FL �., G W r Af ! {��:s',%"':1 � At q s;?s�'... M M N N .:.... ,�.:,. �, » o �r�y;� 3 .��::.,_ . � >f�;~V � .,. � ; .J,<��:: � : 6u,_.:.<� , + W � 5;.;��u..'. m w T 'R'�;��.. . � N r► '� � p M >4'�a�„.�. � �'s:,,.s:,�,. C X ����. w .;Ois � A b �:a�:�%' � � O � �e��•. . 'z:7:i.,9/,Xxs's , � ��� � � � � . , . � ; , � � �:� � : . � ��� ����� � ,_ ��� ��� � �� �.-� On January 4, 1999, Philip As the 1'ear 2000 approaches, Angelides took the oath of office as many participants have requested California's 30th State Treasurer. information about LAIF's Year 2000 Before a crowd of nearly two thousand compliancy. people on the steps of the Jesse M. In response to local agency Unruh building, Treasurer Angelides requests, the LAIF inciuded Y2K data was sworn in by California Supreme �,�,i� �e December, 1998 statements � Court Justice Ming William Chin. and is in the process of enhancing the Treasurer Angelides, 45, is a State Treasurer's Of1'ice (STO) web site ' graduate o " ave sity and a at http://www.treasurer.ca.gov to Coro Fo �`�an. „ . 86, he include information specifically form �.-ow.rs.�v� �r � ; and �� � •, addressing the Year 2000 issue. ma rna"genxe,g�business whi '� ed sp�'r�, '� dia�l� 1_.,,�er w;ar��as:r ''� ` •�1 � �°. ;� � t s �� '::� � n COMINGSOONI!! fo�� reYv: ` �m� _ ��e le �o��u�;, ��,• �N � �,�a��to 1999 LAIF Conference ente�n ,, , ' t "r .�,� ,� , 5�¢ senved for ei t e� � � �""`-'�'' � � Y ���+�rnza� �nent. T�rea` ,s�ze�''.��tlee� been The State Treasurer's Office is active in£�-�vi¢1ii�'e�o�s: ommunity looking forward to inviting LAIF ��,.�,�a;r�;,�.= and state for 25y��s:`"�ie, his wife and participants to the 1999 LAIF three daughters reside in their Coaference. hometown of Sacramento. This year's conference will In his inaugural address, highlight the Yeaz 2000 and relevant Treasurer Angelides promised °to manage the public's money with respect issues to assist us as we move into the and caze and to find ways to responsibly new millenium. use our financial resources as an The conference also presents an opportunity for achievement." opportunity for LAIF participants to meet "I will seek to invest more of our our new State Treasurer Philip portfolio in Califomia in ways that meet '�gelides. the highest fiduciary tests and that The LAIF will announce the date enrich us as a state into the 21st and location of the conference in centttry." upcoming newsletters. STAT.E OF CALIFORNIA � � Philip Angelides, Treasurer OFFICE OF THE TREASURER P. O. BOX 942809 - � SACRAMENTO, CA 94209-0001 TO ALL LAIF PARTICIPANTS AND OTHER INTERESTED PARTIES As the Year 2000 appmaches, the State Treasurer's Office wants to assure the participants of the Local Agency Inveshnent Fund (LAIF)that the LAiF system is Y2K compliant. As many of you lrnow through correspondence with the LAIF, this office has been working towazd compliance since 1996. Prior to its October 1, 1998 conversion to its new system, Oracle, the LAIF program completed and passed all testing for Y2K compliance by the State Department of Information Technology. A description of the new system for LAIF is as follows: Softrvare Names Company Name Release Levels Databases p���e g � Designer 2000 Oracle 13.2 Windows NT Operating System Microsoft 4.0 Hardware Names Company Name Model Numbers Application Server Hewlett Packard LX pro Client Workstations Gateway E-3000 Sofnvare Usage Regionai database to store application programs and data Client Server application development tools Network operating system Hardware Usage LAIF application server-execute LAIF applications &store data L.A�' staff Workstations/PC's to operate the LAIF system The State Treasurer's Office including the LAIF is currently completing the Business Continuity and Contingency Plan to assure that there will be no intemiption of services during the critical "zero day"period from Thursday,December 30, 1999 through Monday,January 3, 2000. Included with this documentation is a letter from Vic Newquist, Director of Information Services Division for the State Treasurer's Office specifically addressing the Yeaz 2000 issue. Should you have questions,please contact Patricia Beal LAIF Adminis�ator at (916) 653-3001. STATE OF CALIFORNIA ^ Philip Angelides, Treasurer OFFICE OF THE TREASURER ' P. O. BOX 942809 SACRAMENTO, CA 94209-0001 September 14, 1998 Re: Year 2000 Strategies To Whom It May Concern: The State Treasurer's Office (STO) and its associated Boards,Commissions, and Authorities; continue to receive inquiries regarding what actions are being taken to prepare for the new millennium. On behalf of the State Treasurer,I want to assure our business clients that the Information Services Division(ISD)is taking a proacrive role in the remediarion of Year 2000 (Y2K)problems. Our focus is to take all reasonable precautions against]mo«�n risks caused by the Y2K problem. Our Y2K projects embrace the methodology of the Deparimrnt of Informarion Technology (DOIT),the State of Cali£ornia's information technology oversight agrncy, and u�e aze committed to compliance with its guidelines. This compliance is defined as fault-free performance in processing of date and date related data(including,but not limited to, calculatin¢, comparing, and sequencing)by the custom system applications deceloped by ISD and by the sofRvare products purchased from vendors. Fault-free includes the manipulation of data With dates prior to, through, and beyond January 1, 2000, and should be transparrnt to the user. To achieve this goal,the ISD conducted an inventory to identify the desktop hardware and proprietary software used by all staff at the STO. The product vendors were contacted to assess their products'Y2K compliance and the ISD is taking the necessary steps to ensure that all desktop system components,including network communications,and proprietary softwue used by the STO aze compliant. For our intemally developed software, four Y2K projecu are in progress that impact eight mission critical systems for the Public Finance,Cash Management, and Investmrnt business areas. Most of our databases�vere designed and imp]emented with a four digit year and were already Y2K compliant. Systems' interfaces were identified, and through our coordinated activities �vith other state entities,most of the data exchanges'yeaz dates have been expanded, tested, and implemented to include the cmtury. A Y2K Release Qualification process has bern developed that identifies key milestones to be verificd as complete and cornct. Ihis checklist has been included in the systems'qualification documentarion package along with source code (�r•hen applicable),test scenarios,test results,interface suvctures(whrn applicable),and change control logs. These additional steps should provide us with the assurance that all systems,will function properly in the new millennium. . • • ... ..►� Of the STO's eight mission critical systems, five systems have completed rigorous 'time machine' testing and aze in production. Time machine testing is conducted in an isolated environment where the hazdwaze clock is manually set to a date in the future. Time machine tesring assures that not only the computer application but also all of the operating system softwaze and computer hardware operate correctly on the future date set in the time machine. One of the remaining systems will be installed this month and testing phases will continue into December 1998. The remaining two systems should be compliant in February 1999. We hope that you will find this information regarding the efforts and status of Y2K projects at ihe State Treasurer's Office helpful. By taking action now to ensure compliance of our information systems,the STO will continue to support your businesses and services into the yeaz 2000. Cordially, ��'J � ���:�` Vic Newquist Director of Informarion Services Division vn/ksh � STATE OF CALIFORNIA `� � . MATT FONG, TreasurBr O FICE OF THE TREASURER �, SACRAMENTO Local Agency Investment Fund PO Box 842809 Sacramento, CA 94209-0001 (916) 653-3001 December , 1898 Statement Acconat Nnmber : 65-33-015 PALM DESERT RIDEVELOPMENT AGENCY Attn: PAUL GIBSON, TREASURER 73-510 FRID WARING DRIVE PALM DESERT CA 92260 �[ccount Summary Total Deposit : 0.00 Beginning Balance : 11,455,212.92 Total Withdrawal : 0.00 Ending Balance : 11,455,212.92 �,: [3l� � : TJ�V� C I I �:;d L� ;;,?�^ 66. _r.- . ,, _:,, _ ik=.. �i� ;i^ .i ��r„':i! i , _ J Page : 1 of 1 ' PO�D MONEY INVESTMENT ACCU!l1�iT SUMMARY OF INVESTMENT DATA ` A COMPARISON OF DECEMBER 1998 WITH DECEMBER 1997 (Dollars in Thousands) DECEMBER 1998 " DECEMBER 1997 CHANGE Average Daily Portfolio $32,147,129 $27,724,618 +$4,422,511 Accrued Earnings $146,724 $135,263 +$11,461 Effective Yield 5374 5.744 -37 Average Life—Month End(in days) 198 201 _3 Total Security Ttansactions ���� $17,495,319 $23,303,772 -$5,808,453 N�� 391 519 -128 Total Time Deposit Transactions Amount $648,750 $643,490 +$5,260 N�� 59 56 +3 Average Workday Investrnent Acrivity $824,730 $1,088,512 -$263,782 Prescribed Demand Account Balances For Services $226,490 $156,665 +$69,825 Far Uncollected Funds $151,957 $154,167 -$2,210 LOCAL AGENCY INVESTMENT FUND* SUMMARY OF ACTIVITY DECEMBER 1998 BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE $13,908,152,60436 $2,253,145,000.00 $1,507,609,271.17 $14,653,688,333.19 •Local Agency Investment Fund Invested Through Pooled Monry Inveshnent Account � , ; ' State of California Pooled Money Investment Account Market Valuation 12/31198 Description fi < Cartying Cost Plus_ �,;�„ ,ti; ': ` ''-a� .�.'- " ' �-Accrued'lnterest Purch. ' Amortized Cost ` Fair Ualue • �Accrued Interest United States Treasu : Bills $ 3,207,800,170.01 $ 3,273,658,263.01 $ 3,278,750,186.80 NA Notes $ 4,828,095,088.02 $ 4,826,497,416.32 $ 4,861,586,500.00 3 65,657,07625 Federal A en : Bonds $ 2,815,609,518.80 S 2,812,199,216.19 $ 2,816,148,994.00 $ 41,122,790.63 Floaters $ 170,000,000.00 S 170,000,000.00 $ 169,918,100.00 $ 1,180,959.90 MBS 3 89,537,569.98 S 89,537,569.96 $ 91,117,662.54 $ 526,246.84 GNMA $ 1,986,284.48 S 1,986,284.48 $ 2,228,196.34 $ 19,644.44 SBA S 278,639,576.81 $ . 278,556,609.56 $ 279,746,061.50 S 2,716,777.77 FHLMC PC E 19,331,848.26 $ 19,331,848.28 S 20,603,392.10 $ 310276.45 . Discount Notes $ 2,791,915,768.84 $ 2,832,196,628.42 S 2,834,795,296.05 NA Bankers Acce tances S 65,410,488.10 $ 66,016,245.26 $ 66,028,537.13 NA Co orate• BondS S 629243,852.80 S 628,391,144.47 3 629,923,196.20 S 1�,951,703.81 Floatera S 1,024,392,869.88 $ 1,024,236,828.21 S 1,022,492,080.50 $ 6,228,859.84 CDs $ 4,593,820,714.03 S 4,592,061,997.22 $ 4,593,395,178.31 S 64,565,248.71 BankNotes S 1,934,980,489.48 $ 7,934,980,489.48 $ 1,935,623,782.10 S 29,241,176.39 Re urchase A reemen NA NA NA NA Time De osits S 1,958,140,000.00 $ 1,958,140,000.00 $ 1,958,140,000.00 NA AB 55&GF Loans $ 2,772,055,812.34 $ 2,172,055,812.34 $ 2,172,055,812.34 NA Commercial Pa er � $ 7,980,736,794.30 $ 8,039,231,629.95 $ 8,040,465,758.92 NA Reverse Re urchase $ 297,895,000.00 $ 297,895,000.00 $ 297,895,000.00 S 855,787.55 TOTAL $ 34,263,801,846.11 $ 34,421,182,983.13 $ 34,475,123,734.83 $ 222,674,970.68 Fair Value Including Accrued Interest 5 34,697,798,705.51 Repurchase Agreements, Time Deposits, AB 55 8 Generel 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 (1.001567080). As an example: if an agency has an account balance of$20,000,000.00, then the agency would report its participation in tha LAIF valued at $20,031,341.60, or $20,000,000.00 x 1.001567080. _. �� � ,,.� , .. ,:,, Participation factor�for�12y31 98 is1.001587080,w���,. _ � _ ,� :' v . ' , , __ _ _. " � .'� t � ''' ` 0 0 0 o rn M O o v D � v m � ��`ar;<�:�::::;�. • N o � N 6 � ,� w N m w y n �::.,._.,,..._:.><:<: � ' m�`�` � + - z Q n :..,:�. . p T 71 4f 1 f� y � �y � � C � � � -Z�I p � Z Z '� � ?2�M;i'%".;';<;;3� 0 . f0 � � � � N � � � £i r� ��s. �. � ,, 7 � Oi 7 3 r £>...K.�..:,..,,.�..:.:. O w T � W � 9 � M N N N N N N ..;;;'r u:;;32'i%'s:�i::. O � lP � 01 � ��JI J F'....,Y„Hh1.�` N �V � C O � � e � G A t0 w W tl� � �'G� -�.. � ? A � Of O! V ta A Of 0 �.;:f!:�Sit>�?i:°��: �j C. 'a n M M M M N N M '�z%�:'<'�'.'�` Lf �' �C � C gg n� '`�,au=i�•�� � O �NM� ..�..:..0 1 � n' � w � O .�! i A7 J :�';,55u;:�i,:, t� t7� O � N e O V OD � p � N :><��- �D g N . :s;xi.�sk;'�F � S N Ot d � N i71 fD Oi W O ,.A�?3':�.>fil�: '.Y%^.::.::_.'9 � �' ~ �''U:'�v m�:��:3<iii.. a � N N N N M N M M >: � d ' �i:�4'5�;� G� w 1 O s�':"'. ... !p � w N ...:s�s?Y�'�c::;;:• � O1 n V y �.:� a � � C � O Oi � �71 OI � C7 V C ...':��!'G'•('. 1 fR '� IC N Ni tll N N O � O :'s.�,.,��uE�''�� � y w � fA u:;.:;y<%%`�rr.;;n w � M N N N M N M M ���'v�`''�• � C p O Gl. � m . <s,s''s,,,/a,.,�.t';... _�,:��: a � .,� �- 3 r �': -�;. a p + � �,,, � � .:.3u:,:�.:: � p1 N N hf O N N � q sssJi��s 7C w N O� O O N V Nf N ���s��'-'� ' � C Y � � � ��i�.. :. � � O M M M M M M M �.,�'�" C � "' � � m .. ;'��„ .., � V� �.��; � t/:,�q.i, � � p ...�� 'T�'{ � V N t�0 ONi i�71 Of p :ix�<y��:� � � � � N O N A N O '.,y..:��� � D � d N N M M N M '<::`�-�S, _� C 7 r ' N : �s�.! G, � 0�1 � N tV0 Ol O � ��t�3;.':�` 3 � Wy O O O W V O �'���u � Z/'� :,,,,.3,::�:.:�- � YI M N N N M N Er Fnc�.� O N ' �y��%�s il� � � �....'"s.`"°r%��� r. �.::.. � � 3° V � jN N �.j%��{s'�! N N tNJI N � V ��'uxHa:^� W •� N :��ss>�•,A►; � 3�fie;..;,r�. - A M M M M N M N'�• f 's � v u �€� � � W � '^'>�'��, � X g w � „ `-:���=eir p m ;�,-_�,>,,,�� � N N � O � .�hi'" � ...�a�..:�� �, a ' N M M M M N U�''rsss<::: � x f0 4.% /�tl.c.,..,��. jN N �s,fi>:p;,'!e�. � .. . � � � :,::�';€;::, ao n� o � oi ;:s>.;>;;<:: . Oe Pi N :'s,�';<;s.: � � O V O N W p x: , %si:'^ �£:�;.^,`,,'w'3"�::::;.. M N M N M nx.��:�:>;z.s:s:� V � �1;�us,:•.'k;;::'� N id N , m O e 1wi1 �tp N N A�t p��N'�.':�.s: y Nt A O 4/ N �i!,�By�sSt;':x;' ,.;�:..::<<::<.>::.: 3 z:�:::>-ss;>::;:�;: o A ~ M M M �q� � . 7 O � r3 i � ' o W Ol � ::::. .: >. �,.., 7 O W V N "u�f'�37�i;:�:-'�'� Af W �R:;`.;>:>">,-..: � f.:.s?::•S,�y.<.gs:;u�. M N N N k`:��y��:�s>E,s">��;5' 3 O � �:. fJl �.' "� }s � �� 7 � A W � �zfE�>;::�is � 10 W p� c•,.:�t� D i:.;�,�:'s�:,.;.,;�. n F, � . � M M M �t� �s C N ' �'.>,r�tr. » � W:£'s,':Q:.::ff3;£�: �^�^'�;iz;:'::.�,yi: 01 A N �.:e:e:3z„?p � � � ,. .. ,;!£%:azt�;szF.: � 1 ;;' , � i ���� � � � V : � ���� ���� .� . � ; � � � � v ' �� � �� � �� On January 4, 1999, Philip As the Year 2000 approaches, Angelides took the oath of office as many participants have requested California's 30th State Treasurer. information about LAIF's Year 2000 Before a crowd of nearly two thousand compliancy. people on the steps of the Jesse M. In response to local agency Unruh building, Treasurer Angelides requests, the LAIF included Y2K data was sworn in by California Supreme With the December, 1998 statements Court Justice Ming William Chin. and is in the process of enhancing the Treasurer Angelides, 45, is a . graduate of - ' ., si and a State Treasurer s Office (STO) web site Coro Fo "' " Ty at http://www.treasurer.ca.gov to form�J� ��?3_. ` � 86, he include information specifically �ii w,n.Rtis�¢�s , � and addressing the Year 2000 issue. manag � business whi ed ,F r � ° � ��� _;:. d1�����3 es an�;5:?' : � n COMING SOONl�! fosa' �eii z� � �T � 9 le �o��';�i� � � .�'�'� �� o` fto 1999 LAIF Conference ent���y]ngti �ey��� ;� served "�' �v . �N S..'al���� 'yt}' for eig�h�ye" �a1i�Yarnix� 1''�ent. Tr �re �,'x e�idese. been The State Treasurer's Office is active in��e�v��"li :�" o`�mmunity and state for 25 ye�rs:'He, his wife and looking forward to inviting LAIF three daughters reside in their Participants to the 1999 LAIF hometown of Sacramento. Conference. In his inaugural address, This year's conference will Treasurer Angelides promised °to highlight the Year 2000 and relevant manage the public's money with respect issues to assist us as we move into the and care and to find ways to responsibly new millenium. use our financial resources as an The conference also presents an opportunity for achievement.A opporlunity for LAIF participants to meet °I will seek to invest more of our our new State Treasurer Philip portfolio in California in ways that meet �gelides. the highest fiduciary tests and that The LAIF will announce the date enrich us as a state into the 21st and location of the conference in century." upcoming newsletters. S7ATE OF CALIFORNIA � � Philip Angelides Treasurer OFFICE OF THE TREASURER P. O. BOX 942809 f SACRAMENTO, CA 94209-0001 TO ALL LAIF PARTICIPANTS AND OTHER INTERESTED PARTIES As the Year 2000 approaches, the State Treasurer's Office wants to assure the participants of the Local Agency Investment Fund(I.,AIF)that the LAIF system is Y2K compliant. As many of you Irnow through correspondence with the LAIF, this office has been working toward compliance since 1996. Prior to its October 1, 1998 conversion to its new system, Oracle,the LAIF program completed and passed all testing for Y2K compliance by the State Department of Information Technology. A description of the new system for LAIF is as follows: Software Names Company Name Release Levels Databases Oracle g,p Aesigner 2000 Oracle 13.2 Windows NT Operating System Microsoft 4.0 Hardware Names Company Name Model Numbers Application Server Hewlett Packard LX Pro Client Workstations Gateway E-3000 Software Usage Regional database to store application programs and data Client Server applicarion development tools Network operating system Hardware Usage LAIF' application server-execute LAIF applications & store data L.AIF' staff Workstations/PC's to operate the LAIF system The State Treasurer's Office inciuding the LAIF is currently completing the Business Continuity and Contingency Plan to assure that there will be no intemiption of services during the critical "zero day"period &om Thursday,December 30, 1999 through Monday,January 3,2000. Included with this documentation is a letter from Vic Newquist,Director of Information Services Division for the State Treasurer's Office specifically addressing the Yeaz 2000 issue. Should you have questions,please contact Patricia Beal LAIF'Adaunistrator at (916) 653-3001. STATE OF CALIFORNIA � � Philip Angelides, Treasurer OFFICE OF THE TREASURER P. O. BOX 942809 ' SACRAMENTO, CA 94209-0001 September 14, 1998 Re: Yeu 2000 Strategies To Whom 1t May Concem: The State Treasurer's Office (STO)and its associated Boards,Commissions,and Authoriries; continue to receive inquiries regarding what actions are being taken to prepaze for the new millennium. On behalf of the State Treasurer,I want to assure our business clients that the Information Services Division(ISD)is taking a proactive role in the remediarion of Ycaz 2000 (Y2K)problems. Our focus is to take all rcasonable precautions against Imo«�n risks caused by the Y2K problem. Our Y2K projecu embrace the methodology of the Deparhnent of Informarion Technology (DOI�,the State of Califomia's informarion technology oversight agency, and we are committed 2o compliance with its guidelines. This compliance is defined as fault-free performance in processing of date and date related data(including,but not]imited to, calculatine,comparing, and sequencing)by the custom system applications de��eloped by ISD and by the software products purchased from vendors. Fault-free includes the manipulation of data W�ith dates prior to,through,and beyond January 1,2000,and should be transpazrnt to the user. To achieve this goal,the ISD condUcted an inventory to idrntify the desktop hardwaze and proprietary software used by all staff at the STO. The product vendon wae contacted to assess theiz products'Y2K compliance and the ISD is taking the necessary steps to ensure that all desktop system components,including network communications,and proprietary software used by the STO are compliant. ' For our intemally developed software, four Y2K projecu are in progress that impact eight mission critical systems for the Public Finance,Cash Management,and Inveshnrnt business areas. Most of our databases were designed and implemented with a four digit year and were already Y2K compliant. Systems' interfaces were identified,and through ow coordinated activities with other state entities,most of the data exchanges'yeaz dates have been expanded, tested, and implemcnted to include the century. A Y2K Release Qualification process has bern developed that identifies key milestones to be verified as complete and correct. This checklist has been included in the systems'qualification documentation package along with source code (when applicable),test scenarios,test results,interface structures (when applicable), and change control logs. These additional steps should provide us with the assurance thai all systems,will function properly in the new millennium. . . „r; ,,,�,+ Of the STO's eight mission critical systems, five systems have completed rigorous'time machine' testing and are in production. Time machine testing is conducted in an isolated environment where the hardware clock is manually set to a date in the future. Time machine testing assures that not only the computer application but also all of the operating system software and computer hardware operate correctly on the future date set in fhe time machine. One of the remaining systems will be installed this month and testing phases will continue into December 1998. The remaining two systems should be compliant in February 1999. We hope that you will find this information regarding the efforts and status of Y2K projects at the State Treasurer's Office helpful. By taking action now to ensure compliance of our information systems,the STO will continue to support your businesses and services into the year 2000. Cordially, �/,� i� ��` Vic Newquist L%� Director of Information Services Division vr✓ksh � ��x�� �� a d ��� 3 7 O C�i �€ � � � i ` N � w `�. � y N W v� �f � �. R i'��'i!d , O W N W G'+ OD ,�.`�°; o" a � � 5'� � c � � p v ... a � W -^ y 0.l �. m �.�'� ` w A � O � ��� z c z !� .�.. 6' k�' ��; d "�p'.:.'�-v: � � v. 7 °v\i T v� . '. ' �y�ry}ti}�' 9 7 l� l� v� 00 O� i v =��AE�.yS�� e . ��� N �-+ � ��,� � ° � � � ?�` !f1 N�F'% C�- � N O 7 V O � � W � N F �• � +�pl�`�; F M M M N O M O � vl � :. � � � W w � °� 3' " ' �� o ; /1 �, r� z �'4`` 4 '� .n F,-•,i F, ,�3 „��tarx� M m � � ' . 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U � F �^ � G i'v� k� '?�rxeei � O w � ua`� K $ �s� R p O �� k�y'a� r« � L O N �y � �1 ��I (�P V 7 vt• 3 �+ „�( R i�r� �p � g ��� Fi��� ��� � e� N � N �3� ti.�`p 61'f.YysFi�'�1, � N Gt Pn .--i w n rn v1 m oo h �o p i+- lO�v��t��}�C"`t" _(��,i# tY0�0. � O O N N lD � M M � �gy, 9 ` �O OS��w'Y�� �i: ey � Vt � 9 L� O O ^ O O cn '�i (Y{ y a s�°p a." ", 's�"m ` ,�i ❑ �o a a � 3EXi. ..,"e�' ��'E;.�ry aG�{ i e, � Q d N t� O a. -. V rn r+i ,�, � � m "v}'n. rY[ t . � O� O� � vi l� a, . � �'�,� rv � �. M �O N O� M O y � `a t <�W �3 G R �. ti a � a x�9u � : i C i oo vi vi -. V N N Q � °' y�;° rr,p�tpi .: .C. 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PALM DESERT REDEVELOPMENT AGE�_ � COMBINED STATEMENT OF ACTUAL REVENUES&EXPENDITURES COMPAREDTO BUDGET 31-Dec-98 RDA RDA %of (FAV)UNFAV Budget YTD Budget Actual YTD Budget Variance REVENUES 'I Tax increment 31,3'12,423 15,656,212 13,132,843 83.88% 2,523,368 2lnlerest 1,886,400 943,200 1,803,623 19'1.22% (860,423) Sales of Property 285,050 0.00% (285,050) 3 Reimbursement From Other Agencies 800,000 400,000 245,'119 61.28% 154.881 3 Other Revenue 64,000 32,000 78,625 245.70% (46,625) 3 Transfers In 462,000 231,000 0.00% 23'I,000 4 Palm Desert Housing Authority Revenue 3,198,191 1,599,096 1,677,754 104.92% (78,658) TOTAL REVENUES 37,723,014 18,861,507 17,223,015 1,638,492 FAV(UNFAV) EXPENDITURES Variance Administrative Costs 1,223,797 611,899 544,818 89.04°h 67,081 Pfofessional Sen/ices 2,501,004 1,250,502 406,080 32.47% 844,422 Property Tax Administrative Fee 812,290 406,145 480,816 118.39°/ (74,671) Cost of Imentory Sold Capital OuUay Offce Equipment 36,000 18,000 19,698 '109.43% (1,698) Deep Canyon/Hwy 111 4,099 2,050 0.00% 2,050 Parking Spaces 16,000,000 8,000,000 0.00% 8,000,000 I-t0lnterchanges 250,000 250,000 250,000 100.00°h Joni Drive Extension 250,000 125,000 0.00°/ 125,000 Deserl Willow-Mountain View Course 24,770.,435 12,387,218 1,284,538 10.37°/> 11,102,680 Desert Willow-Firecliff Course 11,666,905 5,833,453 1,054,489 18.08% 4,778,964 Washington Street Improvements 300,000 150,000 0.00% i50,000 Fred Waring Improvements 435,000 217,500 0.00% 217,500 Project Area 4 Perimeter Landscape 374,000 187,000 O.00�o 187,000 Street Improvemenfs 428,255 214,128 0.00°/ 214,128 Storm Drain Improvements 2,200,000 'I,100,000 0.00°k 1,100,000 Desert Crossing Improvemenfs 43,450 21,725 0.00°/ 21,725 Hwy'11'I/741mprovements 175,000 0.00% (175,000) 0.00% HOUSING 0.00% New Houses-for Resale HIP iF7 786,165 393,083 198,739 50.56� 194,343 Home Improvement Program t-6 70.056 35,028 14,592 20,436 Santa Rosa Rehab Program 568,818 284,409 240,298 84.49% 44,111 5 Desert Rose Project 199,000 99,500 293,970 295.45% ('194,470) $ Portola Palms Projecl 105,326 52,663 '184.682 (132,019) Land Purchases/Bidg Improvements 340,350 170,175 0.00% 170,175 Palm Desert Housing Aulhority Expenditures 4,758,403 2,379,202 919,246 38.64% 1,459,956 Decline in Value on Inventory Held For Resale Payments to Other Governmental Agencies 7,270,900 3,635,450 �,�43,111 31.44°k 2,492,339 Bond Issuance Costs (�3,200) 13,200 Bond Discount 6 Interest And Fiscal Charges 12,801,112 6,400,556 6,996,715 109.31°h (596,159) 6 Principal Paymenls '1,325,000 662,500 750,000 11321qo (87.500) Transfers Out Including Low/Mod 14,674,296 7,337,�48 0.00% 7,337.148 TOTAL EXPENDITURES 104,'198,661 52,224,331 14,943,591 37,280,739 'TAX INCREMENT REVENUE IS USED TO PAY DEBT. 1. Tan Increment is recaivetl in Jan anE Aby 2. Trus�ee stalemencs�ave not�een postetl as o(moniM1 entl. 3. Received a�vanous Gme OurinB�e year. 4. 98IBB Revmue antl FxpentliNres vnll be postetl afier 8]/9B year entl is closeE. 5. Expenses ofisat by House Salea 6. P 81 paymenls are paia at va�iws 4mes UunnB�he year. � � �� D m v ti p A � � ti m ? > > e u m m � v N o n i w a g m u d z � � `w � o m � � 'm m c a m v o � O � o ^ m 9 'm � � m ?, ' m m � � o_� m 3. O O p � A � o � : y O 3 D g v n � d R � G a � m a p � o m � a o � p � =. 1 ] 0 3 e o m �m d m � m � m � m � 9 ^ 3 p m m o v v' � o 0 3 z o 3 n m m � � � � a - � m a e 3 a m n < w K _ m _T � � O m � C � N m d e N � a N � o u m � _ _ % �u � � � � a N n < O R �3 3 Z O y m ^ � g o � H a v A m 3 3 3 m a 3 q F f �e N Z m � �� � ° m N T � m m p � o R � 3 m' m' �A� o � A < o < > > o m n o ? 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O W �- O a`�i WW V v�i d c ¢m d � � d O � U � f H c� U m a � a c a ~ a LL 01 � m = � �, °' ,� ` y > O o � J c aEi c °� N � y m cU °> p`? m > m E u� w w > � �a � E � m V E ° E d � � m O W � � o � 'u o E � > E > > m r N N 'o �` y 'N p N y. a � O O 0 L � O o 2 yp u .� �° � _ � m V � � �' E d aEi E o� E U U « 2 U �' �c a> > U a2i � o a T m = W o O c m � � c vi v � t � a�i X a�i c nd o W a� m Q >. 9 c a ` d - - o . n'm 9 r ,� O � E O a� o E � c � W a �a m m 1° W i° o � > � � � m Q E p U •= m o v m O J U � a d a N Cl " !� � N � T C O t�J �� C � y N vl D � d E ri�j >. 7 C a tU `y H w � � � a � � O � "c v"i � `o m � a� m � � m m m v o o a� 3 d d w n� p � Z x d = Et m � Z �E o o N .aOoa _ � oo3 � a` in �nox � E � � � � � � = <n � 0 � a ¢ aaUU � a - a` r- W X 1' W �r 'i11W City of Palm Desert Parkview Office Complex Inwme Statement ForJanuary 1999 January-99 January-99 # % YTD YTD # % Bud et Actual Variance Variance Bvd et Aclval Variance Variance Revenues r� Rental $ 58,900 $ 77,147 $ 15,247 130.98% +. $ 412,300 $ 425,773 $ 13,473 103.27� Dividends/Interest $ 1,200 $ 2,992 $ 1,792 249.35� ° $ 8,400 $ 19,308 $ 10,908 229.86k TotalRevenues $ 6Q700 $ 80,739 $ 20,U39 13384h $ 92Q700 $ 445,OS1 $ 24,381 ]05.80% Expenses Professional-Acmunting&Auditing $ 3,700 $ 5,161 $ (1,961) ]39.49% $ 25,900 $ 36,127 $ (10,22� 139.49% Professional-ManagementFee $ 5,500 $ 6,266 $ (766) ]13.93% $ 38,500 $ 47,739 $ (9,239) 124.00% 7'enantlmprovements $ 5,800 $ - $ 5,800 0.00% $ 40,600 $ 6,610 $ 33,990 1628% Repaiis&MaiNenance Building $ 9,100 $ 4,757 $ 9,343 5228� $ 63,700 $ 35,490 $ 28,210 55.71% Repairs&Maintenance-Landscaping $ 1,079 $ - $ 1,079 0.00% $ 7,553 $ - $ 7,553 0.00% Utilities-Water $ 250 $ 100 $ 150 39.89% $ 1,750 $ 616 $ 1,134 3520% Utilities-Gas/Elxtric $ 4,300 $ 1,821 $ 2,479 42.36% , $ 34,600 $ 30,670 $ 3,930 88.64% Utilities-Trash $ 450 $ 621 $ (171) 137.96h $ 3,150 $ 3,972 $ (822) 12610°h Telephane $ 150 $ 138 $ 12 9222% $ 1,050 $ 1,088 $ (38) 103.62% Insurance $ 521 $ - $ 521 0.00� $ 3,645 $ - $ 3,645 0.00% TotalExpenses $ 30,550 $ 7S,S64 $ 11,986 6715% $ 220,448 $ ]62,312 $ SR,136 73.63% e�� � . ,�t �� . ;�"�� 4 , �. �, , Note:One tenant paid$16,000.00 to buyout their remaining lease obligation of$18,000. 1m'es5t939-Inves[ . .. . _ . ._ . ... Parkview Office Complex � � Vacancy Rate Sclledule by Suite January 1999 Suite Square No. Tenant Feet 73-710 Fred Wazing Drive-Two (2) Story Building 100 Hanover 2,560 102 Bergren 1,360 103 Multiple Sclerosis 48S 104 Arthriris Foundation 960 106 Vacant 92S 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 Chamber of Commerce 1,478 ll8 Vacant 1,250 119 City/CVAG Conference Room (Under Construction) 1,380 120 Golf Dimensions 1,750 200 CVAG 4,292 200A Vacant S41 201 U.S. District Court 604 203 Accounting Services 480 205 Coachella Valley Economic Paztnership 700 208 Ferguson&Bernheimer 960 210 Wilson,Pesota &Pichardo 3,040 211 Alzheimer's Association 937 217 Mcmillan 775 Invest;Vacancy Report Parkview Office Complex Vacancy Rate Schedule by Suite January 1999 Suite Square No. Tenant Feet 220 Vacant 1,607 222 WMA Securities 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate---4,626/31562=14.65% 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 Vacant(Currently Negotiating with the State of CA Rehabilitation Dept) 4,396 TotalSquare Footage 19,629 Vacancy Rate----4,396/19,629=22.4% Overall Vacancy Rate for Both Buildings: Vacancy Rate--9,022/51,191= 17.62 °� Invest,Vacanry Report City of Palm Desert Desert Willow Bud`et Vs Aetwl FortLe moath otJanu�ry 1999 BudgeleA Acloel Budgeted Aclml Janoery ]aouary S �rcenmge Ywr ta Year m 5 ���8< Revenae 1999 1999 Variance Varlance 17ate Dah Varieuce Variaoce Couru&GmuM 5 624,211 S 565,793 S (38,448) 93.8496 E 2,016.971 5 1.778.501 3 (7.38,470) 88.�8� �� 5 27.471 E 25,895 E (1,576) 9416% E 95.439 Y 81,684 f (�3,755) 85.59% CrolfShop 5 54.650 $ 54.493 $ p57) �99J1% S 226.000 S 1A6.128 S (19.872) 9121% Range S 2.B1A f 1.573 f (1,JA'n 55]8% S ll.011 S 5,684 f (5,327) 51.62% Food&Bevttage f b0,47A E 44.284 S (16.136) 73.29% S 220.182� S 175,880 S (44,302) 79.88% Iwercstlrcane E 1.500 5 535 E (965) JS.W% 5 10.500 S 6.369 f (2,131) 7990R� Total Revmuva E 771.102 5 712,573 5 38.529 92.41% S 2,580,103 5 2 256,216 5 323.837 87.4596 e,nou PerimtlerLaMuaping S 9,085 E B,i56 S 929 89.7796 S 63.595 5 53,154 E 10.441 6338% proeh� f 10,539 E 13.882 S (3.343) 131.72% S 35,974 5 49.305 Y b,669 88A97b C� S 16,737 5 14,379 S 4,338 767496 S 99.104 E 73.560 5 25.544 74.23% Course&Growd E 100.334 S 102,405 S (2.W1) 102.0696 E 572.501 S 575271 5 (2.7'10) 100.4896 GolfOperations 5 18,229 5 20.873 5 (2.594) 114.23% S 108,796 E 119,790 S (10,994) 110.1196 Gercral&Adminiso-vion S 23,733 5 27,580 S (3,847) � 11621% f 164.165 S �34,722 S 29.443 82.06% Foad&Bevuage S 11,470 S 16,901 S (5,43p 14735% S 99.821 5 83,295 f 16.57b 83.44% Ta1nIPa II S 192 127 S 204 126 S 11 999 10625% 5 1.163 956 S 1 089 097 S 74.859 93.5796 O[her Expend�tores PerimemrlsMscaping 5 4.900 5 3,132 5 1.766 63.92% 5 34,300 E 25,II8 E 9.�� �3��% pr�p� E 3,900 5 II,063 S (7,163) 283.67% S 7A,79U 5 27}86 S (2,598) 110.46% Roshop-COGS 5 27.693 S 22.931 f <,762 82.80% S 123.139 S t11,536 5 I1.fiO3 90.58% �� 5 35,523 5 42.277 T (6,754) 119.01% 5 169,401 5 159,381 5 10,07A 94.09% Course&.GrouM-Nmth Cairse 5 49,641 E 43,973 S 5,868 86.23!6 S 473,707 S 402.366 S 71,341 64.94% Couru&Graud-Swtl�Cwrtx 5 47.135 S 37,177 E 9,958 78.87% f 12�.ZID f V0,031 5 51.179 76.86% Course&Groutd-Dewrt Pa11eFN 5 3.700 5 - 5 3.700 0.00% S 29.800 5 - f 29,800 O.OD% Couru&GrwM-Desert Palleo-5 S 2.445 E �- 5 2,445 0.00% S 19,695 S - E 19.695 0.00% ��pp��� S 1.050 f 8,866 E 0.8I8) 894.57% S 73�090 5 19,597 E 2,493 8891% Gercril&Administrstion E 32.331 5 41,992 5 (9,b6q 129.88% 5 296.786 E 305.114 5 832� 102.81% �� S 5,250 E 3.810 f 1.440 72.57% E 18.700 S 13,376 S 5,324 71.5396 Food&Beven6e f 3.97A f 5.961 S (2.091) 132.0796 S 33.260 E 41.622 S (8.362) 125.16% Foad&Bevmge COGS S 21.147 S I8,809 5 2,338 88.94% S 77,064 S 81.271 E @.�) 105.96% Mmegemen[Fa S 23.000 S 25,000 f - 100.OD% S 131,250 f 139,943 S (8,693) 106.62% F������ E 9,268 f 8.379 E 889 90.41% S 57.591 S 53,929 5 1,667. 97.11% TotalOther vditores 5 273 103 S 273,372 S 100.10% 5 1.732,783 E 1 552.672 S I80.111 69.61% Devid I.eadbetler Audemy LearningCemerRevenues S 30,000 I 33,97< 5 (16,026) 67.95% S 165.000 5 113,455 S (S1,545) 68.76% Reimburumenu ro David Isadbener 5 (42,500) 5 (28.87� E 13,632 67.95% f (�b.� I (96.336) S 43914 66.69% Other F�epedinues f (1.13U) 5 (1.397) 5 73 94.97% 5 p0.130) 5 (9,638) 5 512 94.96% I.esrnin6 Center Income(W�) S 6,050 S 3.719 S CL.33q b1.47% f IO.b00 S 7.461 5 (7.11� S 2.32 Net inrnme(Lass S �311 922 5 238 794� 5 73 128 Y6.56% 5 302 036 S 7fl.042 S 6,006 175.1696 Ow9E99:Finavti�l 9tatment City of Palm Desert Desert Willow 1�vo(2)Year Comparisou MooW b MonW b � Ymr W Year W Dete pete S Pereentage P9ace1 Year F9aca1 Yeer S . � Revmue Jan-99 Jan-98 Verience Variance 98-99 97-98 Varievice Course&Ground $ 585,793 $ 299.942 S 285,851 195.30% $ 1,778.501 E 788.035 S 990,466 225.69% �q § 75,895 $ 3,515 5 22.380 736.70% 5 81,664 $ 12,399 S 69.265 fi58.80% GolfShop S 54,493 S 31,229 S 23,266 174.51% S 206,128 S 127.492 4 78,636 161.68% R��e S 1,573 S 3,897 S (2,324) 40.36% S 5,6H4 S 19.450 $ (13,776) 29.21% Food&&verage $ 44.284 $ 24,068 Y 20,216 184.00% $ 175,880 5 78.042 5 97,838 225.37% INerest Income S 535 $ 1.095 5 (560) 48.8696 5 8.369 S 7,805 S 564 10713% To�alReveoues $ 712,573 S 363,744 $ 348,829 195.90% S 2.256,1AG S 1,033,233 S 1.223,O13 218.37% Po9ru0 PerimearLar�dscaping S 8,156 $ - E 8.156 ]00.00% S 53.154 S - $ 33,154 100.W% Proshop(includes Golf Operations) 5 34.705 5 12,476 S 22,229 278.17!6 S 169,095 S 63,951 $ 105,144 7b4.41% Can S 14.379 S 7,795 S 6,584 184.46% S 73,560 S 39,250 S 34,310 187.41% Couru&GrouM S 102,405 S 61,893 S 40,512 165A5% 3 575,271 S 302,159 S 273,ll2 19D39% Gecerel&Administration S 27.580 S 22,112 5 5,468 124.73% S 134,722 S 126,431 S 8.291 106.56% Food&Becerage 5 16,901 S 9,303 S 7,598 181.67% S 83.295 f S1,106 S 32,189 162.98% Tota1 Pa 0 S 204,126 5 113,579 S 9U,547 179.72% S 1 069 097 582 897 S 506 2(ID 186.8496 Olher ExpendiNres - PerimelerLandscaping S 3,132 $ - 5 3.132 100.IX156 S Z5,118 S - S 25,118 100.00% Proshop S 19.931 S 2.609 S 17,322 763.93% 3 46.985 S 44.741 S 2,7A4 IOS.Q2% Proshop-COGS S 22.931 3 13,318 S 9,613 U2.18% S 111.536 5 70,292 S 41,7A4 158.68A� Csrt S 42,277 S 9.789 S 32.488 431.88% S 159,381 S 61,632 S 97,749 258.60% Cwrse&Ground S 81,150 S 68.580 S 12,570 11893% S 572.397 Y 353,592 S 218.805 161.88% General&Administra�ion S 41,992 S 30,378 S 11,616 138.23% S 3Q5,114 S 153,743 5 �51,371 198.46% R�g� S 3,810 S - 5 3,810 100.0096 5 13,376 S 3,171 3 10.7A5 421.62% Foad&Beverage S 5,961 $ 3,143 $ 2,818 189.66% S 41,622 S 29.462 S 12.160 141.27% Foad&Bcverage COCS S 18,809 S 8,016 S 10,733 232.90!6 S 81,271 5 40,832 S 40,439 199.04% MaragementFee S u,� S 12,500 S 12,500 200.00% S 139.943 S 75,000 5 64,943 186.59% Financipq/Lease S 8,379 S 2,353 S 5,826 328.20% S 55,929 S 16,172 5 39,757 345.84% Tota101herEx ditures S 273.372 S 1509d6 S 122.4?b 181.11% S 1,552.672 S 848637 S 704.035 182.96% 11arid Leatlbetter A�ademy Leaming Center Revenues S 33,974 S 25,731 S 8,2t3 132.04% S 113,455 S 2i.447 S 89,008 464.0996 LeamingCenterExpeMiNros S (30,255) S (37.228) S 6,973 8127% $ p05,974) $ (22,335) S (83,63� 474.48% I,earuingCenterincame(Loee) S 3,719 S Q1,497) S 15,216 d235% S 7.481 S 2.112 5 5,369 35421% Nellncome S 238.794 S 87.722 S 151,072 272.22% S 78.042 S 96,189 S 18,147 95.42% �wsaev;zy�comvadw.. 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L)av9899;PDRFC Budget Cit7 of Palm Desut Dexrt Wilbw 7'hree Monlh Cash Aeavve Analyds Three Month Pro}ected Expenditures February March April Projected Expenditures Pa roll $ 186 880 $ 181 584 $ 182 444 $ 550 908 COGS 52 343 61 486 40 671 154 500 O ratin 1 915 25 765 254 1 S 7 5 Tolals 11 5 477 1 1 Cash Recerve Malysls One Month Three Months R uired Reserve $ 521 138.00 $ 1 501 263.00 Cash on Hand $ 564,430.04 $ 564,430.04 Variance-Favorable Unfavorable $ 43 292.04 S 936 832.96 Reconclliation ofadjuated ceah requirement Reconciled Cash on hand $ 399,107.33 Add: Preopening&Grandopening Owed by the Ciry S 20,230.31 Preopening owed by the RDA 5 3,593.18 OMober DeRcit Owed by Kemper S 72,619.86 � . Perimeter(Cash Owed Hy City of Palm Desettj $ 68,87936 ° Adjusted Cash on Hand 5 564,430.04 Adiusted Reserve Requ'vement S 521,138.00 � Adjusted Cash S 43,292.04 � Represents operaring deficit owed by Kemper Sporrs. a Represems 88%of perimeter expendidvw W dare. 'Represenfs budgeted expeMinves for February 1999.Does no[ Include interest on city loan. Includes ody 12'%of the projxted perimeter landscaping expenditutes. Dv9899:GW Com i. - - i� i i i I DESERT WILLOW GOLF RESORT Financial Statements For the Yeat Ended June 30, 1998 ' ' I ' ' ' ' ' ' ' ' ' ' � 1�LEI2L� �van�. � �om�arzy, L'�� ■ CEfiTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS 1 C��.ca¢ �. o¢�ml�o ' CERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 8 J0111t V¢�tU�B 74133 EL PASEO,SUITE 8 IRVINE,CALIFORNIA 92606-4806 PALM DESERT,CALIFORNIA 92260 I �sas��s�-noo p6o)n3-ao�e ' INDEPENDENT AUDITORS'S REPORT � The Honorable Mayor and Members of the City Council I City of Palm Desert Palm Desert, California IWe have audited the accompanying balance sheet of the Desert Wiilow Golf Resort, as of June 30, 1998, and the related statement of revenues, expenses and changes in retained earnings and statement of cash � flows as for the year then ended. These financial statements aze the responsibility of the management of the Desert Willow Golf Resort. Our responsibility is to express an opinion on these financial statements based on our audit. � We conducted our audit in accordance with generally accepted auditing standazds. Those standazds require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements I aze free of materiai misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overali financial Istatement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note A, the financial statements present only the Desert Willow GoIF Resort's Fund and I aze not intended to present fairly the financial position of ihe City of Palm Desert and the results of iu operations and cash flows of its proprietary fund types in conformiry with generally accepted accounting principles. � In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Desert Willow Golf Resort, at June 30, 1998, and the results of its operations and its ' cash flows for the year then ended in conformity with generally accepted accounting principles. / G�.,O.M c.,.,,e', �e...�.o�Au��ul � � i��� � � ISeptember 23, 1998 I I1 ' - - - DESERT WILLOW GOLF RESORT � BALANCESHEET ' June 30, 1998 ASSETS ' Clurent Assets: Cash and Cash Equivalents S 731,845 ' Accounts Receivable 119,892 7nveatory 124,866 Prepaid Expenses(Note B) ' Loan Receivable(Note G7 36.681 Total current assets 1.022.616 � Property, Plant&Equipment(Note D) Property, Plant&Equipment at cost 30,337,630 Less Accumulated Depreciation (368.993) ' Total Property, Plaut&Equipment 29.968,637 � Other Assets Orgeniaation Costs-Net of AmoRi7ation 526.635 TOTAL ASSETS 531.517.888 � LIABILTTIES AND FUND EQUITY I Accounts Payable and Accrued Liabilitiea $ 182,836 Tnterest Payable(Note E� 12,291 Defened Revenue(Note E) 15,713 ' �rrent PoRion of Capital Ixases(Note G) 190.501 Total Current Liabilities 401.341 I Long Term Liabilities Loan Payable(Note F) 648,400 Lease Obligation(Note G) 677.974 ' 1,326,374 Less: C�rrent Portion (190,5011 ' Net Long Term Liabilities 1,135.873 Total Liabilities S 1.537.214 ' PUND EQUITY Coatributed Capital (Note I� 30,348,864 � Retained Eamings (368,1901 Total Fund Equity 29.980.674 ' TOTAL LIABILITIES &FUND EQUI1'Y $31.517.888 ' See Accompanying Notes and Accountant's Report � � DESERT WILLOW GOLF RESORT ' - STATEMENT OF REVENiTES, EXPENSES AND CHANGES IN RETAINED EARNINGS ' For the Year Ended June 30, 1998 ' Opexating Revenues: Golf Fees S2.504,849 I Range Fees 32,741 Instnutionel Fees(Note K) 249,126 Ca[t Rentals 30,174 Merchandise Sales 333,684 ' Other Income 8.643 Total Operating Revenues 3.159.217 � Operating Ezpenses: Cost of Goods Sold 191,613 � Course and Ground 1,448,974 � 186,900 Golf Shop 213,884 Golf Instroction Program(Note K) 235,141 ' g�$e 10,192 General and Administrative 604>727 Maeagement Feea 150,000 � Depreciation and Amorti7ation 407.704 Total Operating Expenses 3,449.115 ' OPERATING LOSS (289.8981 Non-Operating Revenues(Expenses): ' Investment Income 22,594 Investment Expense (68.4061 ' Total Noa-Operating Revenues (Expenses) (45.8121 ' NET LOSS (335,7101 RETAINED EARNINGS (DEFICIT'), Beginning of Yeaz (32,480) ' RETAINED EARNINGS (DEFICTl'), End of Year S (368,1901 I � � ' See Accompanying Notes and Accountant's Repod 3 i - DESERT WILLOW GOLF RESORT ISTATEMENT OF CASH FLOWS IFor the Yeaz Ended June 30, 1998 I CASH FLOWS FROM OPERATING ACTIVTTIES: Operating Losa S (289,898) Adjustments to reconcile operating income(loss) to ' Net cash provided by operating activities: Depreciation expense and AmoRi7ation 407,704 Changes in operating assets and liabilities: I Increase in accounts receivabla (102,480) Increase in inventory (34,229) Increase in prepaid expenses (11,344) Increase in accounts payable and accrued liabilities 78,248 I Increase in deferred revenue 5.907 NET CASH PROVIDED BY OPERATING ACTIVITIES 53.908 I CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Loan to Palm Desert Recreational Facilities Corporation (36,681) � Transfer of Depreciation Expensa 1.367 NET CASH PROVIDED (USED)BY NONCAPTTAL AND RELATED FINANCING ACTIVITIES (353141 � CASH FLOWS FROM CAPTI'AL AND RELATED FINANCING ACTIVITTES: Interest and fiscal agent payments on long-term boaowing (68,406) ' Acquisition of property, plant and equipment (27,981) Payments to principal (161,187) Adjustments to start up coats 1.590 I NET CASH PROVIDED (USED)BY CAPITAL AND RELAT'ED FINANCING ACITVITIES (255.9841 CASH FLOWS FROM INVESTING ACTIVITIES: IInterest Income 22.594 NET DECREASE IN CASA AND CASH EQUIVALENTS (214,996) ICASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 946.641 ICASH AND CASH EQUIVALENTS, END OF YEAR S 731,845 Noncash items include 5904,258 of assets contributed by the Palm Desed Redevelopmeat Agency to the DeseR IWillow Golf ResoR. I ISee Accompanying Notes and Accouotant's Report � 4 � ^ DESERT WILLOW GOLF RESORT � NOTES TO FINANCIAL STATEMENTS IFor the Year Ended June 30, 1998 � A. Summary of Significant Accounting Policies: General ' The Desert Willow Golf Resort (the "golf course") is reported as an Enterprise Fund in the City of Palm Desert's general purpose financial statements. An Enterprise Fund is used to account for � operations that aze financed and operated in a manner similar to a private business enterprise where the intent is that the costs of providing goods or services to the general public on a continuing basis aze financed or recovered primazily through user chazges. IThe golf course is an 18-hole golf course and is part of a development that is projected to include hotels, time shazes, commercial property and an additional golf course. The golf course opened for ' business on Februazy 13, 1997. Basis of Accounting IThe golf course prepazes its financial statements in accordance with generally accepted accounting principles, which involves the application of accrual accounting; consequendy, revenue and gains aze ' recognized when earned, and expenses and losses aze recognized when incurred. Revenue received for the sale of gift certificates and prepaid golf fees is defened until they aze earned. Any unearne3 amounts aze included in defened revenue at the end of each fiscai year. ' Inventories I Inventories aze stated at the lower of cost or mazket (no adjustments were made to reduce inventory below cost), with cost determined using the Weighted Average Cost Method. At June 30, 1998 inventory consisted of$109,332 in merchandise for sales. ' Proper[y,,_plant and e ui ment I Property, plant and equipment is stated at cost. Depreciation of the respective assets is computed using the straight-line method over their useful estimated lives. Additions and improvements aze capitalized. Ordinary maintenance and repair expense aze chazged to income as incurred. The � estimated useful lives used in computing the depreciation provisions aze as follows: Building and Improvements 39.5 yeazs I Office Equipment 3 years Office Furnimre 7 years Machinery and Equipment 5 years IGolf Carts 4 years Oreanization costs � Organization costs have been capitalized and aze being amortized using the straight line method over an estimated useful life of five yeus. Amortization expense chazges to operations for the period ended ' June 30, 1998 is $147,059. 5 I ^ DESERT WILLOW GOLF RESORT I - NOTES TO FINANCIAL STATEMENTS For the Yeaz Ended June 30, 1998 ' Note A. Summazy of Significant Accountine Policies: (continued) ' Cash and cash ecLuivalents For purpose of the statement of cash flows, the golf course considers all unrestricted highly Iliquid investments with an initial maturity of three months or less to be cash equivalents. Leases ' Leases, which in substance transfer all of the benefits and risks equivalent to ownership of the property are classified as capital leases. The related assets and liabilities aze recorded, at I amounu equal to the lesser of the present value of the minimum lease payments or the fair value of the leased propercy at the beginning of the respective leased terms. Generally, such assets aze amortized over their economic lives. Interest expense relating to the lease liabilities is ' recorded to effect constant rates of interest over the terms of the leases. All other leases aze classified u operating leases and related rentals aze charged to expense as incurred. ' Budeets Kemper Sports Management, Inc., is required to submit to the City an operating budget I containing estimates of all golf course expenses for the next operating year, including expenditures for (a) property operation and maintenance, (b) repairs, replacements and alterations which do not constitute capital improvements, (c) furnishings and equipment and I operating inventory and (d) advertising, sales and business promotion. The budget is required to be reviewed and approved by the City prior to July 1 of each year. IUse of estimates The prepazation of financial statements in conformity with generally accepted accounting I principles requires management to make estimates and assumptions that affect the reported amounu of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those ' estimates. Note B. Prepaid Expenses IPrepaid expenses include payments made to vendors for services or other economic benefits to be recognized at a later date. Prepaid expenses also includes credit memos for returned I inventory, which will either be received as a refund or as a credit adjustment to future inventory acquisitions. The balance in this account at June 30, 1998 is $24,866. The following is a breakdown of prepaid expenses: ' Prepaid Insurance E 5,552 Inventory Credit Memos 12,026 ' Prepaid Rent 2,803 Employee Advance 4 485 ITotal 2S 4.866 6 IDESERT WILLOW GOLF RESORT I - NOTES TO FINANCIAL STATEMENTS For the Yeaz Ende� June 30, 1998 ' Note C. Loan Receivable � In July 1997, the golf course loaned $36,681 to the Palm Desert Recreational Facilities Corporation for the purpose of providing a three month operating reserve. This loan has no t specific due date and cazries an interest rate that is similaz to the interest rate the golf course pays � on funds bonowed from the City of Palm Desert (5.66�& at June 30, 1998). INote D. Propgr�y,�Plant & E�ment: Property, Plant, & Equipment aze summazized as follows: ' Land $11,236,028 Construction 16,860,710 ' Building 1,052,123 Machinery & Equipment 816,417 Office Equipment &Fixtures 117,276 � Golf Carts 255.076 Total 30,337,630 ILess: Accumulated Depreciation (368.9931 29.968.637 ' Note E. Defened Revenue ' The golf course selis gifts certificates and rounds of golf in advance. The unused portion of prepaid golf fees and the value of unredeemed gift certificates is recorded in the financial statements as deferred revenue. The balance of this account as of June 30, 1998 is $15,713. ' Note F. Related Partv Loan Payab� ' On February 5, 1997, the City of Palm Desen(the city)loaned$648,400 to Desert Willow Golf Resort to fund a three month operating reserve. This loan has no specific due date and carries an interest rate that equates the rate of return the city receives on its investments with the local ' Agency Investrnent Fund (5.6696 at June 30, 1998). Interest is payable once a yeaz on the anniversary date of the agreement. Accrued interest as of June 30, 1998 is $12,291. During the year the golf course paid $38,025 of interest to the City of Palm Desert. I I � I 7 IL.:SERT WILLOW GOI.F RESORT I � NOTES TO FINANCIAL STATEMENTS For the Yeaz Ended June 30, 1998 INote G. Lease Obli a�ion IObligations under capital leases aze as follows: Associates Commercial Corporation (Leases executed by the City of Palm Desert) ' The present value of ihe minimum lease payments on maintenance equipment was capitalized at$624,985 using an incrementat borrowing interest rate of ' S.755o at the inception of the lease. The lease is payable in 60 monthly installments of$12,010, which began on Mazch 18, 1997. $472,311 ' The present value of the minimum lease payments on a lawn mower was capitalized at $4,554 using an incremental borrowing interest rate of 5.7590 at the inception of the lease. The lease is payable in Sa monthly installments ' of$96, which began October 18, 1997. 3,875 The present value of the minimum lease payment on maintenance golf carts I was capitatized at $26,555 using an incremental bonowing interest rate of 5.75`90 at the inception of the lease. The lease is payable in 46 monthly irstallments of$642, which began June 1, 1998. 25,396 ITextron Financial Corporation (Lease executed by Kemper Sports Management, Inc.) ' The present value of the minimum lease payment on golf carts was capitalized at $255,076 using an incremental bonowing interest rate of ' S.75% at the inception of the lease. The lease is payable in 48 monthly installments of$5,954, which began Mazch 6, 1997. 176 2 ' Present value of net minimum lease payments 677,974 Less: Current portion 190 5 1 487 47 I The following is a schedule by year of future minimum lease payments for capital leases, together of the ' present val�e of the net minimum lease payments as of June 30, 1998. Minimum Present Value ' Lease of Minimum Pa men Lease Payments ' 1999 $224,415 $190,501 2000 224,415 201,706 2001 200,601 189,585 ' 2pp2 98•107 61 2 Total 747 53 677 974 ' u IDESERT WILLOW GOLF RESORT ' . NOTES TO FINANCIAL STATEMENTS For the Year Ended June 30, 1998 ' Note H. Contributed CaDital ' The Palm Desert Redevelopment Agency developed and transferred ownership of the golf to the ciry on February 3, 1997. Originally, the total amount of assets ffansfened W the city representing the cost of land, golf course construction cost and start-up was$29,444,606. During ' the yeaz the Palm DeseR Redevelopment Agency completed the construMion of a maintenance facility at the golf course and paid for additional improvements made to the golf course which were contributed to the City. The cost of the facility and improvements amounted to $904,258. ' Total conuibuted assets from inception amount to $30,348,864. Note I. Commitments and Continggncies IManacement Aereement I The city has a management agreement with Kemper Sports Management, Inc. to manage and operate the golf course. The term of this agreement is for 4 yeazs and 8 months commencing on the date the goif course opened for business. The agreement has an early termination option that I can be exercised 2 years and 8 months after the commencement date by either party. Kemper Sports Management, Inc., received $150,000 in management fees for the year ended June 30, 1998. IO�erating Leases ' The golf course rents equipment and vehicles under operating leases, which expire at vazious dates through August of 1999. Future minimum lease payments under operating lease agreemems that have initial or cemaining non-canceling lease terms in excess of one year aze as follows: ' Yeaz Ended 7une 30. ' 1999 $30,535 2000 4 7 ' 35 2 ' Lease rent expense for the period ended June 30, 1998 was $32,118. Note J. Contracts and Agreements - KemDer Sports Mana�ement. Inc. ' Section 3.6 of the management agreement requires Kemper Sports Management, Inc., to be the contraMing party of all leases and financing agreements for furnishings and equipment and all ' wnuacts and agreements relating to the operation and maintenance of the golf course. However, the City is required to assume responsibility and be the contracting pazty if the term of these agreEments or if the date for performance under such agreements is after the expiration or earlia ' termination date of the managemen[ agreement. ' 9 IDESERT WILLOW GOLF RESORT I - NOTES TO FINANCIAL STATEMENTS For the Yeaz Ended June 30, 1998 I Note K. Aereement with David Leadbetter Academy IKemper Sports Management, Inc., has an agreement with the David Leadbetter Academy (the Academy) to provide professionai golf instruction at the golf course. This agreement calls for ' the golf course to retain 1596 of the gross revenues generated by the Academy and to pay for certain pre-approved expenses. The gross revenues and expenses related to the Academy are recorded on the golf course's financial statements. ' Note L. Subsequent Evenu I Construction for a second 18 hole golf course started in eazly 1997 and is scheduled to be completed and open for business on October 29, 1998. This golf course will atso be managed by Kemper Sports Management Inc. ' ' ' ' ' ' ' ' ' ' ' ' �n R . - _ ` -.l � ' ' ' IPalm Desert Recreational Facilities Corporation Financial Statemenu ' For the Year Ended June 30, 1998 ' I ' ' I ' I I 1 I I ' IL�1£�ZL, �vans. � �om�.any, L�J� CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS (��,ea�. �. c��cm.i�o ICERTIFIED PUBLIC ACCOUNTANT 2t21 ALTON PARKWAY,SUITE 100 a Joint venture 74-133 EL PASEO,SUITE 8 IIRVINE,CALIFORNIA 92606-4906 PALM DESERT,CALIFORNIA 92260 (949)757-7700 (760)773-4078 IINDEPENDENT AUDITORS'S REPORT IBoazd of Direaors Palm Desert Recreational Facilities Corporation IPalm Desert, California I We have audited the accompanying balance sheet of the Palm Desert Recreational Facilities Corporation (a discrete component unit of the City of Palm Desert), as of June 30, 1998, and the related statement of revenues, expenses and changes in retained earnings and statement of cash flows for the year then ended. � These financial statements aze the responsibility of the management of the Palm Desert Recreational Facilities Corporation. Our responsibiliry is to express an opinion on these financial statements based on our audit. IWe conducted our audit in accordance with generally accepted auditing standazds. Those standazds require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements ' aze free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disciosures in the financial statemenu. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial Istatement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the ' financial position of the Palm Desert Recreational Facilities Corporation, at June 30, 1998, and the results of its operations and its cash flows for the yeaz then ended in conformity with generally accepted accounting principles. I "--- �.�=_ �.�-�. , ���.�,.� �d, C��,��P � ' September 23, 1998 I I I 1 I . _ PALM DESERT RECREATIONAL FACILITIES CORPORATTON IBALANCESHEET � June 30, 1998 IASSETS Cuaent Assets: I Cash and Cash Equivalenu a 37 475 Accounu Receivable 4,105 Inventory 6,036 IPrepaid Expenses 4.000 Total Current Assets 51.616 ITOTAL ASSETS 51 1 ' LIABILIITES AND FUND EQUITY Current Liabilities I Accounts Payable and Accrued Liabilities $ 140,701 Interest Payable (Note B) 2.110 ITotal Current Liabilities 142.811 Long Term Liabilities ' Loan Payable (Note B) 36.681 TOTAL LIABILTI'IES 17 492 IFUND EQUITY Retained Eaznings (Deficit) 127 87 ' TOTAL FUND EQUITY (DEFICTI') 127 876 ' TOTAL LIABILITIES &FUND EQUITY 51 61 ' I ' ' ' See Accompanying Notes and Accounfant's Report � i � PALM DESERT RECREATIONAL FACILITIES CORPORATION ISTATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS IFor The Yeaz Ended June 30, 1998 I Operating Revenues: ' Food & Beve�age Sales 237 7 Total Operating Revenues 237.667 IOperating Expenses: Cost of Goods Sold 100,004 I Maintenance and Operations 148,712 General and Administrative 114.717 Total Operating Expenses 363.433 IOPERATING LOSS 12( 5.7661 ' Non-Operating Revenues (Expenses): Interest Expense 2 11 INET LOSS (127,876) IRETAINED EARNINGS, Beginning of Yeaz � RETAINED EARNINGS (DEFICII�, End of Yeaz 127 876 ' I ' I I I ' See Accompanying Notes and Accountant's Report ' z i . PALM DESERT RECREATTONAL FACILITIES CORPORATION ISTATEMENT OF CASH FLOWS IFor The Yeaz Ended June 30, 1998 I CASH FLOWS FROM OPERATING ACTIVTTIES: � Operating Loss $ (125,766) ICHANGES IN OPERATING ASSETS AND LIABILTI'IES Increase in Accounts Receivables (4,105) I Increase in Inventory (6,036) Increase in Deposiu (4,000) Increase in Accounts Payable and Accrued Liabilities 140,701 IIncrease in Interest Payable 2 11 NET CASH PROVIDED BY OPERATING ACTIVIITES 2,904 ' CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVTI'IES: IProceerls from Loan 36,681 CASH FLOWS FROM CAPITAL AND RELATED ' FINANCING ACTIVITIES: Interest Expense (2,110) ' NET INCREASE IN CASH 37,475 BEGINNING BALANCE OF CASH -0- IENDING BALANCE OF CASH, END OF YEAR 37 47 f ' I ' ISee Accompaeying Notes and Accountant's Repor[ ' 4 i _ _ PALM DESERT RECREATIONAL FACILITIES CORPORATION INOTES TO FINANCIAL STATEMENTS IFor the Year Ended June 30, 1998 INote A. $ummary of Si�nificant Accountine Policies Gen r I7'he Palm Desert Recreational Facilities Corporation(the corporation)is a non profit corporation that provides food and beverage services exclusively to the DeseR Willow Golf Resort(the golf I course). The corporation is a discrete component unit of the City of Palm Desert (the City) and is reported as an Enterprise Fund in the City's general purpose financial statements. An Enterprise Fund is used to account for operations that aze financed and operated in a manner I similaz to private bnsiness enterprise, where the intent is that costs of providing goods or services to the general public on a continuing basis aze financed or recovered primazily through user chazges. IBasis of Accountin¢ ' 1'he corporation prepazes its financial statements in accordance with generally accepted accounting principles, which involves the application of accrual accounting. ConsequenUy, revenue and gains are recognized when earned and expenses and losses aze recognized when Iincurred. Inventories IInventories aze stated at the lower of cost or mazket (no adjustments were made to reduce inventory below cost)with cost determined using the Weighted Average Cost Method. At June I30, 1998 inventory consisted of$6,036 in merchandise for sales of food and beverages. Use of estimates IThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported I amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ' Cash and cash equivalents ' For purpose of the statement of cash flows, the corporation considers ail unresuicted highly liquid investments with an initial maturity of three months or less to be cash equivalents. IIncome Tax Status The corporation is in the process of obtaining exemption from Federal Income and State ' Franchise taxes. Required applications to obtain exempt status from the Internal Revenue Service and Franchise Tax Board are being prepared and will be filed shortly. ' S i ( PALM DESERT RECREA7'IONAL FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS IFor the Yeaz Ended June 3Q 1998 INote B. Related Parlv Loan Payable I In July, 1997, the Aesert Willow Golf Course (the golf course) loaned $36,6&1 to Paim Aesert Recreational Facilities Corporation to fund a three month operating reserve. This loan has no specific due date and cazries an interest rate that equates the rate of return the golf course is I currently paying on funds borrowed from the City of Palm Desert (5.66% at June 30, 1998). Accrued interest as of June 30, 1995 is $2,110. INote C. Commitments and Contin eg ncies Management Agrgement � The corporation is managed by Kemper Sports Management,Inc.,under an agreement to manage and operate Desert Willow Golf Course, a component of the City of Palm Desert. The term of ' this agreement is for 4 years and 8 months commencing on the date the golf course opened for business. The agreement has an eazly termination option that can be exercised 2 yeazs and 8 months after the commencement date by either parry. ' ' ' � I ' 1 ' ' ' 6 i� - r i i i i DFSRRT WII,LOW GOLF RESORT IMANAGEMENT r.r?�rrFA IYEAR F1�iDED NNE 30, 1998 I I ' I I I ' I I I I � - - 1�lE�iC, �van�. � �om�.ar�t�, 1.� CERTIFIED PUBLIC ACCAUNTANTS 8 CONSVLTANTS �, C��.ean �. c��cmi�o ' CERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 a jolnt venture 74133 EL PASEO,SUITE 8 IIHVINE,CALIFORNIA 92608-4906 PALM DESERT,CALIFORNIA 92260 �sas��s�-noo SeptembCt 23, 1998 �s°)ns-•w�a ' The Honoiable Major ' and Members of City Council City of Palm Desert ' Palm Desert, California In planning an performing our audit of the financial statements of Desert Willow Golf Resort for ' the year ended June 30, 1998, we considered its internal control structure in order to deternune our auditing procedures for the purpose of expressing our apinion on the financial statements and not to provide assurance on the internal wntrol structure. Our study and evaluation was more I limited than would be necessary to express an opinion on the system of internal accounting wntrol taken as a whole and we do not express such an opinion. ' 1'he management of Desert Willow Golf Resort(Kemper Sports Management,Inc.)is responsible for establishing and maintaining a system of intemal accounting control. In fulfilling this ' responsibility, estimates and judgements by management are requireti to assess the expected benefits and related costs of control procedures. The objecdves of a system are to provide management with ieasonable, but not absolute, assurance that assets are safeguarded against loss ' from unauthorized use or disposidon, and that hansactions are executed in accordance with management's authorization and recorded properly. I During our audit, we noted other matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below with our recommendations for impmvement. ' Sea_re¢ation of Duties - Cash ' Auditor Comment and Recommendation: ' During our review of intemal control over cash we noted that the wntroller is also involved in the collecfion and recording of certain c�sh receipts, prepata6on of bank deposits, handling of items rejected by the bank and prepatation of monthly bank reconciliadons. ' To strengthen internal control over cash, we recommend the responsibility for performing the above mentioned funcdons be delegated to other available staff. ' ' 1 ' - - � ' Segregadon of Dufles - Cash (continued) IManagement Response: The recommendation was made to have a staff inember other than the controller assume certain ' cash handling responsibilities namely the collection of receivables, preparation of bank deposits, and processing bank rejected items. We agree with the auditor's recommendation and have assigned these duties to the Administrative Assistant, Head Golf Professional, and the General IManager, respe�tively. ' Emnloyee Benefits Auditor Comment and Recommendation: ' During our testing of payments to management company for employee bea►efits, we noted that the documentation provided by the management company to support these payments was too geneial Iand not traceable to charges to individual employces. We recommend that detailed documentation be requested to support amounts invoiced for ' employea benefits. ' Management Response: Stazting in December 98, Kemper Sports will include with the last payroll invoice of every month ' a detailed benefit schedule by employee supporting the amoants charged on the payroll invoice. The schedule will include gross premiums charged by benefit type per employee. ' Pro�q+. Plant & Eauinment Auditor Comment and Recommendadon: ' During our ieview of Property, Plant and Equipment, we noted that an itemized subsidiary ledger ' was not maintained and that maintenance equipment did not have identification tags. We recomme.nd that detailed property records be maintained on a current basis. These records ' should include depreciation expense and accumulated depreciation related to each depreciable asset. We also recommend for identification tags to be prepared for all equipment purchased. ' Management Response: Kemper Sports Management will implement an itemized fixed asset subsidiary ledger program ' during the first quarter of 1999. The implementation process will include a physical inventory count of all equipment on the premises with identification tags placed on all equipment counted. ' Kemper Sports ManagemenYs Director of Intemal AudidQuality Assurancc will oversee this process. Once established, Uris system will be maintainad on a curre�►t basis. 2 i IInventory Adjustments IAuditor Comment and Recommendation: I Our testing of Inventories disclosed that monthly adjustments were made to Inventory general ledger accounts. These adjustments were made to reconcile the balance in these accounts to balance in the monthly detail inventory listings. Except for the month of June 1998, explanations ' on these adjustments were generally not available. We recommend that all adjustments to inventory accounts be adequately eacplained and approved Iprior to posting W inventory accounts. IManagement Response: The General Manager and Accounting Manager will prepare on a monthly basis a report ' explaining invenwry variances prior to the final posting of inventory accounts. Cash Rece�yts IAuditor Comment and Recommendation: I Our testing of Cash Receipts disclosed instances where cash shortages were still occurring. However, these shortages were less frequent and smaller since new policies were implemented. ' We recommend for cash shortages to continue to be invesdgated and monitored by staff. IManagement Response: Cash shortages will continue to be inves6gated and monitored closely by the General Manager, IAccounting Manager, and Head Professional. Year End Adjustments IAuditor Comment and Recommendation: ' As a result of our audit and year end work performed by golf course staff, accounts receivable, prepaid ezpenses, fixed assets, liability accounts, equity account and cerfain revenue and expense I accounts had to be adjusted to wrnct the balance in these accounts. We believe these adjustments should be made during the year and posted prior W the start of the audit. ' We recommend that a periodic review of all gene�al ledger accounts be made ttuoughout the year in order to improve the reliability of interim prepared financial statements and expedite the performance of the annual audits. ' I 3 i - - i. � Yeaz End A�justments (continued) Management Response: IWe will continue to review all general ledger accounts on a monthly basis to ensure the reliability of interim prepared financial statements and minimize year-end adjustments. ' Bank 1Yansfers � Auditor Comment and Recommendation: I During our testing of bank transfers, we noted one instance where the approval of an authorized representative from the City of Palm Desert was not obtained prior to initiating and requesting a bank t�ansfer. IWe recommend strict adherence to policy for obtaining required approvals prior to requesting a bank ttansfer. IManagement Response: IWe will maintain strict adherence to the bank hansfer policy. The General Manager can only make bank tiansfers after receiving written approval by the City of Palm Desert. Furthermore, IUnion Bank was notified in June 1998 to never call Desert Willow to confirm a wire. � IAuditor Comment and Recommendation: ' During our review of invenwry, we noted one instance where shipping costs were not properly allocated and included in the pricing of an inventory item. ' We recommend controls to be implemented to ensure all cost related to the purchase of inventory items be refl� on the golf course's perpetual inve.ntory records. IManagement Response: I We are currently allocating shipping oosts and including these costs in the price of each invenWry item. In addition, the Accounting depaRment on a monthly basis will randomly select 5-10 inventory items and trace the inventory price listed in the point of sale to the actual physical ' invoice. Any variances in price discovered by Accounting will be reconciled immediately. I These matters were considered in determining the nature, timing and �tent of the audit tests to be applied in our audit of Desert Willow Golf Resort's financial statement and this letter dces not affect our report on these financial statemenu dated September 23, 1998. I � � I This report is intended for the informa[ion and use of the City Council and management. However, this report, upon acceptance by the City, is a matter of public records its distribution is not limited. ' � ✓�-4.�J��. C,v c.,M cVrv�, �T^^�"^"i�u-' �L� � �� I I ' ' ' ' ' 1 ' ' ' ' ' ' ' r i � - _ I I I IPALM DESERT HOUSING AUTHORITY MANAGEMENT LETTER ( yEAR ENDED JUNE 30, 1998 I � I ( ' I ' I ' I I � 1�LE�iL, G�van�. � �om�ian y, L��� � CERTIFIED PUBLIC ACCOVNTANTS&CONSULTANTS C��.ea� �. og�ml�o , ICERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 � 8�Oi11t VBIItU�B 74-133 EL PASEO,SUITE 8 IIRVINE,CALIFORNIA 92608•4906 PALM DESERT,CALIFORNIA 92280 (sas)�5�-noo OCtober 28, 1998 nso)n�-ao�e ' Agency Members I Palm Desert Redevelopment Agency Palm Desert, California ' In planning an performing our audit of the financial statements of Palm Desert Housing Authority for the period ended June 30, 1998, we considered its internal control structure in order to ' determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal wntrol structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of Iinternal accoundng control taken as a whole and we do not express such an opinion. The management of Palm Desert Housing Authority (RPM Company) is responsible for ' establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objecuves of a system are to provide I management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with ' management's authorization and recorded pmperly. During our audit, we noted other matters involving the intemal control structure and its operation I that we wish to call to your attention. These matters aze set forth below with our recommendations for improvement. IBank Reconciliations Auditor Comment and Recommenda6on: � During our review of the bank reconciliation we noted the following: I1) Bank reconciliations were prepared as of June 25, 1998, rather than as of the fiscal year (June 30, 1998). ' 2) Balances in sweep accounts were not included as part of the bank balance in the bank reconciliation. Instead cumulative transactions from sweep accounts were shown as ' reconciling items in the bank reconciliation. We recommend the bank reconciliation for the month of June be prepared to include all ' transactions through the end of the fiscal year. In addition, sweep accounts balances need to be included in the amount reported in the bank reconciliations for cash in bank. i - IManagement Response: I We were not awaze prior to the audit to change the bank statements transactions from June 25, to June 30, 1998. There was a verbal agreement with the City of Palm Desert staff to close our bank statements of the 25'" of each month for cash receipts collections. For future year ends, we will ( prepare the bank statements to reflect all transactions as of June 30, 1998. I We treated the operating account and sweep account as one bank reconciliation. Our reason being, we were under the impression that the funds being transferred went into the City of Palm Desert General Fund for investment. We did not receive the sweep account bank statements until I July 98, when we were asked to book the interest through June 98. To date, the sweep account is being booked accordingly and interest posted monthly. ICash Disbursements Auditor Comment and Recommendation: IDuring our testing of cash disbursements we noted instances where approval of invoices was not Idocumented. We also noted that paid invoices aze not canceled upon payment. To prevent possible duplication of payments or payment of unauthorized expense, we recommend I that all vendor invoices be stamped "paid" at the dme of payment and a new policy to be implemented which prevents the processing of invoices that have not been properly approved. IManagement Response: Our Company procedure was as follows: Invoices are reviewed and signed off by the site I manager, they are inputted into the computer. This process produces an invoice joumal by vendor, amount, invoice number and grand totat. The invoices and journal is then reviewed and conected by the property manager. The property manager sign's off on the joumal and the ( completecl package is forwarded to the home office for processing. The home office reviews and checks are printed and signed for payment. During the mailing process the top remittance check I copy, which is stapled to the invoice, is then stamped paid, dated and filed. When reviewed with the auditors, we agreed to change the stamp paid location to the invoices and the procedure is now in effect. � Pavroll IAuditor Comment and Recommendation: I Our tesdng of payroll transactions disclosed an instance where a time sheet was not approved by a supervisor. We also noted instances where personnel forms authorizing the hiring of employees were not signed by an authorized official of the management company. IWe recommend that approvals for time sheets and addition of new employees be documented as required. Policies should be adopted that will prohibit the processing of any payroll checks unless Iproper appmvals are obtained. 2 i� - - i� Management Response: ' We review the instance where the time cards weren't signed off by the property manager. In this ' instance the employees were site managers and their salary status with the company is as full-dme salary empioyees. In reference to personnel forms, this instance was during set up and we have since verified all documents for authorized signatures. Our company policy has been reviewed Iand steps have been taken to eliminate future occurrence. Security Dg�osits ' Auditor Comment and Recommendation: ' Under the present system, security deposits received from tenants and amounts retained from security deposits are not tcansferred and deposited in the property bank account in the month when I the transaction occurs. In some instances, we noted differences in the amount of cash reported in the security deposit account with the amount reported in the security deposit report. I We recommend for security deposits to be deposited d'ue�fly to trust accounts and transfers of retained security deposits to be made to the operating account in the month when the rent is eamed. Deposits in trust accounts should be reconciled on a monthly basis to security deposit ' reports. Differences should be prompfly investigated and required adjustments should be made immediately in order to maintain these two accounts reconciled. We also recommend that management company adopt a policy that will require tenants to pay security deposits with a ' separate check. Management Response: ' The security deposit records we received from the housing authority of Riverside County did not ' agree with the leases on site. We have however, reconciled the security report on a monthly basis to the general ledger showing the differences until we could verify the wrrect amounts and update the security deposit report accordingly. We will follow the auditors recommendation to require ' tenants to pay security deposits with a sepazate check, and deposit those funds in the Security Trust Account. ' Basis of Accountine Auditor Comment and Recommendadon: ' Our review of the financial records of the Palm Desert Housing Authority (the authority) ' maintained by RPM Company (the management company) disclosed that the management company is using the cash basis of accounting method to prepare the financial records of the authority. As a result adjustmenu had to be made to record receivables from tenants, prepaid ' rents and certain liabilities accounts. The management agreement calls for the financial records to be maintained on the modified accrual basis of accounting. ' � i �-� � 1 We recommend that financial records be properly adjusted at the end of the year to allow for the Ipresentation of financial statements prepazed on the accrual basis of accounting. Management Response: IWith regards to prepaid rents and liabilides not being posted at the year end. This refers back to ' the bank closing of cash receipts of 7une 25'", for prepaid rents and delinquent rents. The liabilities (accrued accounts payabie) were posted with the exception of a late utility bill. Future year-ends will reflectthe modified accrual accordingly. ' Canitalization Policies IAuditor Comment and Recommendation: At the present time the management company dces not have a formalized capitalization policy. IWe recommend a policy be prepared and implemented which will establish the minimum dollar value that will be used to capitalize cost incurred in purchasing fixed assets. ' Management Response: IThe City of Palm Desert has supplied us with a formalized capitalizadon policy that will be followed by all apartment wmplexes. ' These matters were considered in determining the nature, pming and extent of the audit tests to be applied in our of the Palm Desert Housing Authority's Financial Statements. IThis report is intended for the information and use of the Palm Desert Housing Authority and management. However, this report, upon acceptance by the Agency, is a matter of public records Iits distribution is not limited. I �� � ,�,;��„�, , C.u..,.vi c4„�.6�, `�`•*�s�*"j,L�17 v ' I � I I 4