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HomeMy WebLinkAbout12 JUNE 1999 w z AGENDA INVESTMENT & FINANCE COMMITTEE • WEDNESDAY, June 16, 1999-- 1:30 P.M. NORTH WING CONFERENCE ROOM CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of May 19, 1999 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committee's discretion, these comments may be deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on new Bonds. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE June 16, 1999 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule for May, 1999 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 May. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in June, 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 Monthly Reports for May, 1999 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for May, 1999 Rec: Report and submit to City Council. Action: E. Parizview Professional Office Buildings - Financial Reports for May, 1999 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for May, 1999 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for May, 1999 AGENDA - INVESTMt NT & FINANCE COMMITTEE June 16, 1999 • Rec: Review and file report. Action: H. Commercial Paper & Medium-Term Note Issuer Lists Rec: Review and submit to City Council Action: I. Consideration of Assessment District Number 84-1 Liens on Redevelopment Agency and City Property (Joint consideration with the Palm Desert Redevelopment Agency) Rec: Review and file report Action: VII. REPORTS AND REMARKS A. Reports and Remarks by any Committee Member B. Items to be placed on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: Tec' asgasii7, 1¶u1y 21. iggg ,.t =_30 ,pon. IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, 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 eting. Dated this,June 9, 1999. l L th?(C �I ,Jit <<°C Veronica Abarca, Recording Secretary AC p Minutes Finance Committee CONVENE On May 19, 1999, the Investment & Finance Committee was called to order at 1:34 p.m. by Mr. Paul Gibson. ROLL CALL Russ Campbell, Buford Crites, Ray Diaz, Paul Gibson, Thomas Jeffrey, Murray Magloff, Carlos Ortega, Bob Spiegel, Bill Veazie and Veronica Abarca, recording secretary. GUEST Gregg Lindquist, Kemper Sports-Desert Willow Ruth Ann Moore, Business Support Manager Dan Lanager, Business Support Technician APPROVAL OF MINUTES Upon motion by Mr. Russ Campbell, and seconded by Mr. Bill Veazie, the Minutes of the April 28, 1999 meeting were APPROVED as submitted. ORAL COMMUNICATIONS Mr. Gibson stated that he would take Items F & G under New Business out of order per Mr. Lindquist's request. F. Desert Willow Golf Resort Financial Information for April, 1999. Mr. Lindquist stated that March, again, was yet another excellent month. The actual revenues exceeded budgeted revenues by approximately 10%. March now holds the record for largest in rounds. Expenses are approximately 4% over budget. Receive and file report. G. Palm Desert Recreation Facilities Corporation Income Analysis for April, 1999 Mr. Lindquist reviewed the report and asked if there were any questions. Receive and file report. H. Small Business Loan Program 1 Minute.. Finance Committee • Ruth Ann Moore, Business Support Manager gave a brief presentation of the Small Business Loan Program which she and her staff are presently working on. Ms. Moore stated that the goal of the program is to assist the funding various local business owner's, ranging from existing businesses wishing to expand, promoting new business to the area, improvement of aesthetics or to stimulate growth of new businesses in the area. The concept of the loan program would be to give a "loan guarantee" based on the business qualifications which would enable them to receive financing from lenders. Business Support will be working hand in hand with the various lending agencies in the area. It is proposed that the businesses seeking funding through the loan program be denied two times prior to seeking help from the City. Ms. Moore indicated that at a recent seminar of City operated Business Loan Programs, it was explained by an attorney that the City will have the opportunity to "weed out" businesses which do not fall under the City code without being discriminating. This prohibition of businesses must be made public. For instance, City Code prohibits the adult entertainment industry. Dan Lanager, Business Support Technician has spoken with a few of the local banks and has received support to this point from each. Mr. Spiegel suggested that the Business Support staff meet with Carlos Ortega, Ray Diaz and Paul Gibson to review the program concept piece by piece and then come back to the committee with the outcome. Mr. Gibson stated that he liked the concept, however wanted to know what preparations were being made for loans which turned into "bad loans". OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 There were no changes to the previous month report. B. Bond Issuance by Palm Desert Financing Authority There were no changes to the previous month report. 2 MinuL€„ • Finance Committee C. Revision of Money Market Fund - Fidelity and Highmark as Discussed at Previous Meeting The Finance Committee had asked Mr. Jeffrey to review the practicality of the City's investment policy with respect to money market mutual funds ("MMMF5"). Mr. Jeffrey reported that the City is currently in default of its investment policy by investing in the Fidelity and the HighMark US Treasury MMMFs. The City's current investment policy, which was originally drafted in 1995, contains provisions that are overly restrictive with respect to MMMFs invested exclusively in U.S. Treasury securities. City policy is so restrictive that it is virtually impossible to invest in such funds. Yet, City policy authorizes investment in the State of California Local Government Investment Fund ("LAIF"), by exempting it from these same restrictions. These restrictions were imported from other California municipal investment policies that were drafted in 1995 in response to imprudent investment practices by a California local government agency. In that particular case, however, mutual funds were not involved — public employees invested in an imprudent manner with brokerage firms. Since City policy does not require that the City treasury staff obtain annual financial statements from MMMFs, this inconsistency between policy and practice was not evident until the City treasury staff recently obtained "Statements of Additional Information", which contained specific information on MMMF investment practices, from the City's MMMFs. Mr. Jeffrey indicated that one alternative to MMMFs would be bank savings accounts. Such accounts, however, could result in foregone interest income to the City and to the Redevelopment Agency of an estimated $1.5 - $2 million annually, due to lower yields. Mr. Jeffrey stated that the City Treasurer's Office recommends that the City's current investment policy be revised so that restrictions on MMMFs correspond with those contained in the California Government Code. On a motion by Mr Ortega, seconded by Mr. Crites, the committee recommended that the "Statement of Investment Policy" be revised so that restrictions on money market mutual funds correspond with those contained in the California Government Code. 3 Minute • Finance Committee • D. Requalification of Existing Broker-Dealers • Mr. Jeffrey stated that the information from Union Bank of California had been received and all requirements had been met and recommended them for requalification. On a motion by Mr. Spiegel, seconded by Mr. Ortega, the committee agreed to requalthi Union Bank of California as BrokerlDealer for the City of Palm Desert. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule Mr. Jeffrey reviewed the reports and asked if there were any questions. Receive and file reports. B. Review Short Term Investments Maturing in May, 1999 Mr. Jeffrey reported that two securities had been purchased since the last meeting. 1) $2mm GECC Commercial Paper from Union Bank of California at 4.78% discount rate. Purchased at the price of$98.50 and will mature August 31, 1999. • 2) $2mm FHLB Note, Euro Call, from Morgan Stanley Dean Witter at 5.56% YTM. Purchased at the price of$100.00 par. Mr. Jeffreystated that we will be reinvesting $14.7 million of tax increment revenues in US Treasury Coupon Bearing Notes, Agency Bullets or Corporate Medium-Term Notes through competitive bidding. Receive and file report. C. State of California Local Agency Investment Fund Monthly Report Mr. Gibson reported that for the month.of March, the City had $24.6 million and the Redevelopment Agency LAIF has a balance of $15.8 million at an interest rate of 5.119%. Receive and file reports. 4 Minute, • Finance Committee • D. Monthly Financial Report for City Council for the month ending April, 1999 Mr. Gibson reviewed the reports and asked if there were any questions. Receive and file report. E. Parkview Professional Office Buildings - Financial Reports Mr. Gibson stated that the Office Complex continues to do well. The Office Complex has a net income of$392,000. A decrease from last year due to decreasing rates of the leases. Mr. Gibson stated that Golf Dimensions is presently 3 months behind on payment of their lease. A 3-Day Notice to pay or quit will be given to Golf Dimensions. Mr. Crites suggested that we add language that states "if the City is forced to issue another Notice then they will not be given the 3-Days to pay and will be ordered out of the building". Mr. Gibson stated that he would check with the City Attorney. Mr. Gibson stated that there were three new possible tenants for Parkview including U.S. Filter, Goodwill and Shelter from the Storm. Receive and file report. I. McCallum Theatre Mr. Gibson reviewed the summary of revenues and expenditures provided by the McCallum. Mr. Gibson noted the increase of the endowment fund and continued growth of the assets. Mr. Spiegel stated that the McCallum is receiving tremendous competition from the various local casinos. Mr. Gibson stated that a new director would be employed by July. Mr. Spiegel suggested that Mr. Gibson meet with that person immediately following their hire. REPORT AND REMARKS The committee decided that there would not be a meeting in August; however, all reports will be forwarded to the committee members. 5 Minutes Finance Committee NEXT MEETING DATE The next Investment & Finance Committee meeting will be held Wednesday, June 16, 1999 at 1:30 p.m. ADJOURNMENT Upon motion by Murray Magloff and seconded by Bill Veazie the Investment &Finance Committee adjourned at 2:50 p.m. Respectfully submitted, Veronica L. Abarca, Recording Secretary • CITY OF PALM DESERT INTEROFFICE MEMORANDUM TO: FINANCE COMMITTEE FROM: RUTH ANN MOORE,BUSINESS SUPPORT MANAGER DATE: JUNE 16, 1999 SUBJECT: BUSINESS SUPPORT LOAN PROGRAM Background: In an effort to provide financial support to both valued existing businesses and potential new business to the city, the Business Support Center began the exploration to develop a city loan program. Staff contacted various California cities, local lenders and financial organizations to research alternative programs currently available. Data was compiled to review with the City Manager and the Retail Committee on the various types of loans in which the city could participate. Attached you will find the following: Introduction to the Loan Program Goals and General Criteria for the Program Descriptions of Loan Types Recommendation for Committee Members Business Support Center's Role in the Program Example of a City Loan Application Loan Process Flow Chart Recommendation: Staff would ask the Finance Committee to concur with the following: 1. Fonn a Loan Review Committee that will design a loan criteria and review all applications to the city. 2. Direct the Business Support Staff to market the program to local lenders and the community. . Formation of the Loan Fund Program with one million dollars from the surplus d. RUTH MOORE BUSINESS SUPPORT ANAGER CITY OF PALM DESERT BUSINESS LOAN PROGRAM The overall goal of the city's business loan program will be to promote economic development. The specific goals will be to: * Provide assistance to existing businesses that wish to expand,remodel or otherwise improve their operations but are unable to obtain conventional financing. * Create new business categories in the city. * Create a program that allows businesses to improve their facades in order to eliminate blight. By providing this program, the citizens of Palm Desert, the surrounding community and our tourists will receive better service and an improved quality of life. In addition, increased taxes from successful businesses will also add to the welfare of the residents. Research into such programs has led staff to review similar city programs throughout the country. Also, a day long course offered by the California Redevelopment Association on structuring business loan and grant programs was attended. What staff has discovered, as with any venture, some programs are successful and some are not. Successful programs contain 1.)A clear statement of economic and civic goals and objectives. 2.) Specific criteria establishing which types of projects the city will and will not participate. This gives the staff a set of guidelines to develop the relationships the Council will have previously agreed are a benefit to the city. Criteria for a loan program should be developed with the assistance of a committee that includes both city staff and local professionals in the lending institutions. The city's program shall consist of three types of funding: a loan guarantee, subsidized interest and revolving loan fund. The nature of the business and credit worthiness will determine which city program will be utilized to compliment the prospects business plan. In addition,we should be prepared to anticipate some failures within the program. Our research indicates that some loan programs have up to a 20% failure rate. As with all financial institutions in the business of lending money,one must recognize that not all loans will be repaid. But unlike a lending institution that must receive all their economic return from the repayment of loans,the city also receives repayment in the form of economic development, increased revenues and improvement to the quality of life of it's citizens. CITY OF PALM DESERT LOAN PROGRAM GOALS 1. A business loan program allows successful existing city businesses to expand in the city. 2. It can generate an economic niche previously not available in the city by bringing new categories and start-up businesses. 3. It can improve the aesthetics of the city by provided existing businesses' facade improvement. 4. The stimulation of new business provides tax income to the city. 5. Loans to businesses can provide for additional employment within the city. GENERAL CRITERIA 1. Assist businesses with a good chance of success. 2. Assist businesses which complement the economic goals of the city. 3. Loans will be individually evaluated on how they meet these two criteria. 4. Specific criteria will be developed by the loan review committee. Loan Guarantee Program Subsidized Interest Loan Revolving Loan Fund This program could be used This program would involve A loan program designed for with all commercial lenders, the City buying down the a small business and start-up SBA lenders,CDC,and the interest rate for the borrower. businesses. In addition to City of Palm Desert. The For instance,if the lenders start-ups,this fund could City would not be out any rate is 10%the City would assist with the business money unless the loan would forward 4%to the lender to expansion,working capital, become delinquent. allow the borrower a 6%rate. and equipment. Borrower Characteristics Borrower Characteristics Borrower Characteristics • Larger more established • Established borrower • Individuals less likely to borrower that requires whose pro-forma is obtain conventional the City to share the risk. supported by a lower lending. interest rate. Features/Good Points Features/Good Points Features/Good Points • City is a partner with the • Provides opportunity to • Provides the nearly fmancial institution and implement the husiness bankable prospect with shares the risk. plan and/or expand at a the opportunity to • No City funds invested larger scale. implement their business up front for guarantees. • Risk limited to Cities plan. • Low interest rate based fixed subsidy cost. • This program may create on terms and conditions • Business receives a low, the stepping stone for the of the loan. fixed rate of interest entrepreneur to become a • Administered by local which allows the larger business and lenders. business prospect to support the economic • City is not obligated to borrow more money. growth goals of the City. the entire loan amount • Administered by local • Fixed interest rate based • Utilized with the Small lenders and the City on prime rate. Business Administration becomes a partner with • The City will have (SBA),Certified the participating control of the entire Development Corp. financial institution. program. (CDC)and/or Palm • Subsidized interest • The RLF will be Desert Commercial program could be administered by an Lenders. utilized with all outside source and City • Flexibility to be utilized Commercial Lenders in staff will assist with the with various loan types. the City of Palm Desert. paper work. City Obligations City Obligations City Obligations • In the event of default, • City must commit to • City assumes all risk. the City is obligated to payment of a portion of • Continuous interaction reimburse the lender. the loan. with the business • Additional expense to • Fixed cost and prospect. the Business Support immediate distribution of • Administration with City budget(entire program). City funds. staff is greater. • Quarterly review of City • Quarterly review with • Video footage of loan loans, and delinquency the fmancial institution. project and equipment. review. • Limited interaction with • Quarterly review and • Annual visits with the business owner in unlimited sight businesses supported by terms of priority. inspections. the program. • Budget,communicate • Budget,communicate • Budget,communicate and market the City loan and market the City loan and market the City loan program. program program. COMMITTEE MEMBERS Revised 6-16-99 Loan Review Committee (LRC): The City loan program should have a LRC consisting of five members with 50% or more of the LRC members present constituting a quorum. Two alternate commercial lenders will be appointed to the LRC too. The proposed committee shall be responsible for reviewing, selecting and approving loan applications. The loan committee may be comprised of a cross-section of the community. The loan review committee can consist of the following: 2 Palm Desert Commercial Lenders 1 Member of the Palm Desert CDC Small Business Finance Corp. 1 Member of the California Small Business Development Corporation 1 Member of the Palm Desert CDC Small Business Finance Corp. City Finance Director(no vote) 1 Member of the City Redevelopment Staff(no vote) Business Support Center Staff Capacity: The Business Support staff will assist in the following areas: ► Support the LRC in the form of agendas,packaging loan request, minutes, etc. ► Publicize loan assistance program objectives and availability to financial services that provide commercial loans. ► Screen all potential applicants for loans. ► Potential applicants will be asked to submit preliminary information. ► Upon review of preliminary information, inviting candidates will submit a formal loan application. ► The applicant will be provided with assistance in completing the application. ► Review loan application and credit to make all final recommendations to the LRC. ► For approved loans, insure proper execution of documents, and compliance with all appropriate regulations, a timely loan closing and implementation of the project. ► Submit monthly loan status and financial reports to the City including loan amount, principal and payments made, collection status and any other relevant information. DGV05-07-99 Application for City of Palm Desert Business Support Enhancement Program Please complete and submit this form along with Federal tax returns for the past(2)years; a current personal statement and business plan. Public corporations must submit Federal 10-k corporate tax returns. Full Legal Name of Company or Borrower Federal Id.No. Name and Title of Contact Business Address (Street) (City and State) (Zip) Personal Address (Street) (City and State) (Zip) Home Telephone Date of Birth / / SSN: Telephone-Bus: O Corporation U Partnership U Sole-Proprietorship Type of Business Years in Operation Business Owners,Principles,Directors,Partners and all Stockholders with 20%or more of ownership. 1. Name/Title %Ownership DOB / / 2. Name/Title %Ownership DOB 3. Name/Title %Ownership DOB / / 4. Name/Title %Ownership DOB / / Description of Proposed Project: Financing Amount Requested from the City of Palm Desert $ Number of employees(including self) Number to be created from this project Participating Private Lender Telephone /(Financial Institution) Bank Address (Street) (City and State) (Zip) Bank Contact Person Title Use of Funds Sources of Financing Land/Bldg. Lease $ Private Loan $ Bldg.Improvement City Loan Machine&Equip. Other Fumiture/Fixture Owner Injection Working Capital Inventory Other Business Assets: Present Value Original Market Prior Less Prior cost Value Liens Liens Land Commercial Real Estate Machinery/Equipment Furniture/Fixtures Accounts Receivable Inventory Other Total Do you have a lease for the property your business now occupies? ❑YES ❑NO Rental$ Years Remaining on Lease Renewal Option O YES ❑NO Have you or your business ever filed bankruptcy? ❑YES ❑NO Are you or the business an endorser, guarantor or co-maker of an obligation? O YES ❑NO Does your business use or store any hazardous waste or produce toxic waste? ❑YES U NO Are you or the business a party to any claim or lawsuit? ❑YES ❑NO Does the business owe any taxes for prior years? CI YES ❑NO CERTIFICATION My signature on this application certifies the above statements are true and complete. I authorize the City of Palm Desert to verify or check any of the information given, including credit references and employment and to obtain credit reports (including spouse's if living in a community property state). Applicant's Signature Date Co-Applicant's Signature Date DGL/OS-10-99 LOAN PROCESS FLOW CHART LOAN PROSPECT BUSINESS SUPPORT STAFF Upon denial from two private Staff will work with the participating lenders, completes preliminary lender to review application and loan application from the City preliminary information. Business of Palm Desert. Support Staff will prepare request for the Loan Review Committee(LRC). REQUEST DENIED-Appeal ? The loan prospect will be provided with an explanation and the PRELIMINARY LOAN REVIEW opportunity to resubmit or a final Business Support Staff will submit closure of the loan request. preliminary loan information to the LRC for review. EQUEST APPROVED Inviting candidates will submit a formal loan application. LOAN PROSPECT LOAN REVIEW COMMITTEE Completes formal loan application Business Support Staff submits formal with private lender and Business loan application, credit report(s), business Support Staff assistance. This plan,financials,and all required application will contain detailed documentation for LRC's review and criteria for a background check recommendation. and credit verification, staff prepares a report for the LRC. AIVAis LRC APPROVED LRC DENII ED Business Support Staff Loan process ends. prepare staff report for Council. Appeal -? COUNCIL OP. 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M a r � � ri w a,.i r ,f m o Y 2 V119N19MHl9 VlW(9 V3 Yl YlWN Q8J ICE al RAW O l�1OTl��l,l7 t�8 N; ^ OOp8 f = W (7 � w � �„'v f.�,. if t70NOm.�iN��'i Od1D 1g=g— it 0 < r dRNlriao c4'" n it' g Td Y,'.`.v, "i; t N m d n ¢ ' W 0 z HH sisteiiHMMWe St.NS 0 ' tY". 4 La if 0 RO +DMa6 :1 25g dS ny LL ¢ „y yfw- s �<< 0 _ §i n SO'u 'irn u Oa Z p d aON NNmd l; N f! n . . p a ^ w 0 e s f 0 LL g CI) 0m j+v r r yk g 0 0 ..........00.00c w X 2 ) N 2 w o S p w 0 _ z 2 d m Z Q Lti m Q N �. f lfa�` %R {k!.f '}n+..F''; �f1•Y Q N § g - 5 Egwgsism$ mN OU >. c oWoZ>. 2 z m x, " rr< a ,yt.-s.c , „t,,, R+ 0d wJ w ¢W W p LL}¢?i< W a W O 83 p 5 WSW w2jh.cw�Ww >2 p �wgw-00 5w SSV =22 M LL LL p m m m e I o m t co N N N N __ (%)0131A CITY OF PALM DESERT INVESTMENT ACTIVITY REPORT MAY 1999 EXECUTIVE SUMMARY As of 5/31/99,total portfolio book value was approximately$172MM. This reflected a net increase of approximately$14.4MM. from prior month,due to property tax; sales tax; assessment district; interest; and other revenues. There was an unrealized portfolio net gain (market value- book value)of approximately$402M, based upon prevailing market interest rates. This was only a"paper"gain since there was no profit-taking. Significant changes in investment position are shown below: "United States Treasury-Coupon". 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$45M DUE TO AMORTIZATION OF PREMIUMS. "Federal Agency-Coupon". The City buys U.S. government 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. Government's"moral obligation"). Although unrated, considered "AAA." THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$2MM DUE TO A SECURITY PURCHASE. "Local Agency Investment Fund (LAIF)". 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 maturity of 180- 540 days. THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$1.6MM DUE TO REVENUE RECEIPTS. "Federal Agency-Callable". The City purchases federal agency securities that may be called prior to maturity, in order to obtain an additional premium for that risk, thereby increasing overall portfolio profitability. THIS ACCOUNT BALANCE BALANCE INCREASED BY APPROXIMATELY$2MM DUE TO A SECURITY PURCHASE. "City Loan 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 DID NOT CHANGE. "Fidelity Treasury 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 average maturity is 60 days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$642M DUE TO DEBT SERVICE AND INDIAN RIDGE CAPITAL IMPROVEMENTS. "United States Treasury -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. "HighMark Sweap Accnnnt4". The City sweeps excess checking balances into"HighMark 100% 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 BY APPROXIMATELY$3.2MM DUE TO REVENUE RECEIPTS. "State & Local Govt Series -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 &arbitrage rebate regs). Nonmarketable. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "Medium-Term Notes". The City buys interest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$14M DUE TO AMORTIZATION OF PREMIUMS. "Federal Agency-Discount". The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$4.4MM DUE TO SECURITY PURCHASES. "Commercial Paper". The City buys high-grade, unsecured commercial paper at a discount, with maturities of 180 days or less,from Fortune 500 companies. THIS ACCOUNT INCREASED BY APPROXIMATELY$2MM DUE TO A SECURITY PURCHASE. CA • C o 4 O. CA Zi y 3 La 1 CD Co e 02 < n ° :, m E ap N 1 '• O N O '_ m Z 0 H 1 y 4 m — (n A W N.) W r.).� N -t CO " C/� Kyyyy , ' Ul O (7 (7 'En- IN NI � C) ) 11 5 5 -4 y g D T T T 7 N N N N -• = 2. N x ° v v v o obi a a- a ° m ' � � �1Z2o (4nNi -+ oD3g m cr. a o - - .. o », Coz1 d OO C0 N W z Z Z a ^ O N O N1 N co C U N CD G C ct. ... C O C l A A O 'O 'O C R1 o C) ° o Z p1 3 0 ° m ° o a a H ° n 2 rn N O a -3 " ' K tU C n v r- o o °. 7 > L o m m N t y 0. f1D ° o -0C ..'.' (D Q. 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Q LL N -LL WY `d'Giin£3§.oggli? §avm g; Q gOl OlmtGNInN ui Lo Q f�0 U 3f FCS ��"I iD a g i� r ,m rsr a+ °t`'�➢ m O N N u.vi l9 e.u.vfMMtl.v.M vi tli 430 z m 8 ((VV O I O i M I t wt i-F '9° r u''.•n I 8(�� gNg OOI c�� mNO � lr°n.Y.R�•.l`�3�....�r Oi NNe GN 0 NCN Nrn �j Cr, Y {p 4 f u r }? • Q o --, Vgm �D.00lg01 0g4J O f• N t a`t n J '$ O affit6 rnrnrn—r f 2 ¢ g _. z Qa (1 e F ¢ m O `� W O kF J {( 16 .6 vi»,H4.44»ui»uienena < :a�H 2. e✓ t ..,.. "rc O g ( Q co ui o y t s? � a7 � mO W = th NU F n N Op _ Q t g o z m 1- O e a 8 K Lr d -yd 3, 'Li r w ^ N ❑ g a Q pNOU8 cc Z I ¢ O0Vmw ccQ = ¢O YUOOLLWO i It':v.ax iiii` Are`iA t ODQQWoct cc 1- 5 z¢ ¢ ,1°-.+ L' a O Co. 0 4j2¢ <dUQ > a a .p epWJuLL27 rn zxo Y ~ eIIS8 a< mn N ma O 6 (%)O131A REDEVELOPMENT AGENCY INVESTMENT ACTIVITY REPORT MAY 1999 EXECUTIVE SUMMARY As of 5/31/99;total portfolio book value was approximately$165MM (with SLGS). This reflected a net increase of approximately$12MM from prior month,due to receipt of increment tax revenue. There was an unrealized portfolio net gain (market value-book value)of approximately$414M, 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: "State&Local Govt Series-Coupon." 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 maturity. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "Fidelity Treasury 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 DECREASED BY APPROXIMATELY$66M DUE TO DEBT SERVICE. "Local Agency Investment Fund (LAIF)." RDA invests City's loan in $13MMM pool managed by State Treasurer's Office for 2,600 govemmental entities. LAIF has diversified portfolio(BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180- 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"(At)positive"; Moody's of"Aa3." THIS ACCOUNT BALANCE INCREASED BY$3.6MM DUE TO RDA PARKING REIMBURSEMENT FUNDS. "United States Treasury-Coupon." RDA buys interest-bearing U.S. Treasury notes with maturities of 2- 10 years to invest tax-exempt bond proceeds. Although unrated, considered "MA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF PREMIUMS. "State & 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 yield and arbitrage rebate restrictions). Nonmarketable. Although unrated, considered "AAA." THIS ACCOUNT BALANCE DID NOT CHANGE. "tinged States Treasury-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. "HighMark Sweep Accounts." 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 APPROXIMATELY$104M DUE TO INTEREST COUPON PAYMENTS. "Federal Agency-Coupon." 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. Government's"moral obligation"). Although unrated, considered "AAA." THIS ACCOUNT BALANCE DID NOT CHANGE SIGNIFICANTLY. \ co22co co cocoto _ « m � « O _ = nnCO = Co Co zn W T% 3LE w wwwww wuJ WWuu uWWW uLI . O. >- » >- » » » » y » » » x » » » » » » » » S in CD � \ , / } / \ I , , , , , « _ I III , 00. _ \ \ \ \ _ __ _ _ _ \ / _ _ _ - _ _ as j2 ° &r - w ° £ £ 4 # £ £ K / £ / ■ ( t E & § t t ■ I LLI - z - etcm k ! 0 / ) # 5 . b co Q. f / ) \ a E , q « , \ E\ I s o too % « oo — .. § 0 ° ter / > flv.Q . e§ \icl ƒ *) z b ) 0) 2k ® }t ^ $ $ # % \( 222 0 - : 1- 0. / / ) Co 777 22 ) � / « % \ ) / a # . m « ) , � 00 ' 3 ) � 2 \ ,_ ƒ ) ) # \ % + • B @ [ ! r ; (� \ LW� .. \ \ t I § ( \ w \# » - ® as zw2v ] ) ■ @@E ` £ � \ ( \ / / ) k � § § GaG /{ \ § � . ee22 ° 0 � 2J / ^ ^ ^ \ E 00J - amRRCD R / 7 ( 0zz- mm a. el I— ■ e § o - k 0 a w AD e E $ ( EL! > ) , ` k ) % a) & G \ 0 n0 (0n0 n000 00co (0n (0 z _l W uW WWW WWWW WWWWW w . a. >- » » » ¥ x » » » » » » ¥ » » » 0 j ] I I 0. - -® - O w CZ ° G- § � ° £ £ \ ■ I 0' • - m ) a. @ a / ! . / ) f§ k ) 2 kf) = ala .. @ t a 7 7 3 a ) K ƒ § # £ t < ' { E & *) \ co _ ) \ \ 01 k § / I _ 2 0 \ \ \\\ { ( RH ) \ \ \wa.« VVV / /) § } ) ƒ } : > ° & e@ = 2 '5 - a moaaA _ � ± co 2222a0 9t ® � { ] & / / ° - � © , 2 - , ® @ % % » § •C : 2 ■ CO ) i ) ) { & � 2 - § M ` o2 = ® a / 02s000 0000 § 7 ) ) I7 \ ƒ ) / _ ` wz , 0 k \ cu G I- - 2 b § � » § C ; / z f a 7 E _ / a zu u < C # — \ SECURITIES PURCHASES CITY OF PALM DESERT MAY 1999 The following three securities have been acquired for the City portfolio: 1 . $2.4MM FNMA Discount Note; 4.9% Discount Rate; Price of 98.45; Matures 9- 15-99. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. 2. $2.1MM FNMA Discount Note; 5.1 % Discount Rate; Price of 96.37; Matures 2- 15-00. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. 3. $2.0MM FHLB Note; 5.16% YTM; Price of 100.00 (par); Matures 3-8-00. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. REDEVELOPMENT AGENCY June 1999 The following two securities have been acquired for the RDA portfolio: 4. $2.0MM FHLMC Discount Note; 4.78 Discount Rate; Price of 99.34; Matures 7-14-99. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. 5. $2.0MM FHMLC Discount Note; 4.87 Discount Rate; Price of 98.82; Matures 8-18-99. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. 6. $4.4MM FNMA Discount Note; 4.9% Discount Rate; Price of 98.45; Matures 9- 15-99. Implied Aaa credit risk rating. Purchased from Dean Witter Reynolds. MATURING SECURITIES JUNE 1999 NONE a E o cLe �° ,. ?MJ 0 o W a1 T x 9 g . U !L- .oC o0 �3 c e W 'c v ..A = 4 0 2 iZ to A X, 's „ 0; 0 ai mal C ri 6 X xa� C C F ,aa as 0.1 W r4 t o E . m W 7 .0 0 Z 4Qp e em e e e e e e e e e e e e o O' O en O .ki .N�. N ` N , •-+ O 00 M .D O 4 ;0 .. Vi 1-4 O e e N .n O O R h0 0 aft 0' "I- CV O. N 0 O 00 0 N O. f 4 J t0 N ON 0 en 0' M vl in vl R 00 O N O Z Q re O. O� M. n K 7 0° O, N in R 7 O O N co W R h N N N A 7 V M M v N O co Vl W t•I Q a 'd L Q U a a � M � � oo W a N o 0 0 0 N T^^T��II 2. 222222 W c W ^' 'D # M M CQ C' i N e o N in 0 00 V N O 1 O Ol V b R vt M 00 00 N .D N .O R N w r, m O Vn N N - 4{ 41 0 -r W 00 N 7 00 En a° O 7 F-' /� Q 4E V1 M N r-�'.,i �r O N. u vl .n V V M N O C. ca a) 0 et O I _ F 6.1 .. _P O M V1 O.R C, O R V O M C. 7 0o m p FBI Cl f- W7,� N: 00 Cl Cl N O vl M 00 7 V O T \ ta 0 Os * O N.r. M Vt 0.. 7a HL N N M h N 7....)r O. Ol V V = 00 n N N4 .w -+: O * >- = oo ‘O .D N M O --• C N 0 al M A 0. q E U C a)C O L b. v O .p O 0 7 0 ON O. 0. .n 4 a O 0, 00 0 7 `d P P R R O:R Yt. N .0 A C vl O N . T u M 0 en N ''t:b 'Q t oO •O 0 .O M N v1 00 uOi 44. 00 .-• .0 C ° 9 0. waa y Y N N O 0. '-� v O M ° o .'t 0 N 0, .- en 0 j C: : L C Y W h• •H N N .n Cl 0 V .O . = O 1- u 1 O Pa m V 0 co C ya. 0O R N w 7 O a_ E 0 >. a/ a. Ps" Cl a q a • 0 r G7 e O m y a CC v t P m 1p �L O ii 7 a) F7 7 M o a Is :: •• ^ d w q 'y W E 'v � a ev Fj a .. g4 :a -m w. d > 0 4. W v E .. M .+ ai F . I-I it Y ti til W L ° p r fn d P H ai to o ari g A C ,A., 7 Q '1 m ai 0. a v, y i � F/1 +' �° � � u Q a s "`g. aa`p laa 0 t 4100a.. wUa O w z PALM DESERT REDEVELOPMENT P' ICY _. COMBINED STATEMENT OF ACTL . REVENUES 8 EXPENDITURES COMPARED TO BUDGET 30-Apr-99 RDA RDA %of (FAV)UNFAV Budget YTD Budget Actual YTD Budget Valiance REVENUES 1 Tax increment 26,039,395 21,699,496 27,650,964 127.43% (5,951,468) 2 Interest 1,886,400 1,572,000 3,287,222 209.11% (1,715,222) Sales of Property 330,050 0.00% (330,050) 3 Reimbursement From Other Agencies 800,000 666,667 448,083 67.21% 218,584 3 Other Revenue 64,000 53,333 95,469 179.01% (42,136) 7 Transfers In 462,000 385,000 4,643,824 1206.19% (4,258,824) 4 Palm Desert Housing Authority Revenue 3,198,191 2,665,159 2,553,163 95.80% 111,996 TOTAL REVENUES 32,449,986 27,041,655 39,008,775 (11,967,120) FAV(UNFAV) EXPENDITURES Variance Administrative Costs 1,223,797 1,019,831 859,295 84.26% 160,535 Professional Services 2,501,004 2,084,170 540,233 25.92% 1,543,937 Property Tax Administrative Fee 812,290 676,908 480,816 71.03% 196,092 Cost of Inventory Sold Capital Outlay Office Equipment 36,000 30,000 25,658 85.53% 4,342 Deep Canyon/Hwy 111 4,099 3,416 87,556 0.00% (84,140) Parking Spaces 16,000,000 13,333,333 5,000,825 37.51% 8,332,508 1-10 Interchanges 250,000 250,000 250,000 100.00% Joni Drive Extension 250,000 208,333 0.00% 208,333 Desert Willow-Mountain View Course 24,774,435 20,645,363 2,024,733 9.81% 18,620,629 Desert Willow-Firecliff Course 11,666,905 9,722,421 1,082,690 11.14% 8,639,731 Washington Street Improvements 300,000 250,000 0.00% 250,000 Fred Waring Improvements 435,000 362,500 0.00% 362,500 Project Area 4 Perimeter Landscape 374,000 311,667 0.00% 311,667 Street Improvements 428,255 356,879 0.00% 356,879 Storm Drain Improvements 2,200,000 1,833,333 0.00% 1,833,333 Desert Crossing Improvements 43,450 36,208 0.00% 36,208 Hwy 111/74 Improvements 175,000 0.00% (175,000) Parking Lot Improvements 55,259 46,049 0.00% 46,049 HOUSING New Houses-for Resale HIP#7 786,165 655,138 243,491 37.17% 411,647 Home Improvement Program 1-6 70,056 58,380 18,553 39,827 Santa Rosa Rehab Program 568,818 474,015 415,787 87.72% 58,228 5 Desert Rose Project 199,000 165,833 300,578 181.25% (134,745) 5 Portola Palms Project 105,326 87,772 255,797 (168,025) Land Purchases/Bldg Improvements 340,350 283,625 0.00% 283,625 4 Palm Desert Housing Authority Expenditures 4,758,403 3,965,336 1,999,209 50.42% 1,966,127 Decline in Value on Inventory Held For Resale Payments to Other Governmental Agencies 7,270,900 6,059,083 1,904,971 31.44% 4,154,112 Bond Issuance Costs (13,200) 13,200 Bond Discount 6 Interest And Fiscal Charges 12,801,112 10,667,593 11,485,370 107.67% (817,776) 6 Principal Payments 1,325,000 1,104,167 3,754,957 340.07% (2,650,791) Transfers Out Including Low/Mod 14,674,296 12,228,580 7,450,349 60.93% 4,778,231 TOTAL EXPENDITURES 104,253,920 86,919,933 38,342,668 48,577,265 'TAX INCREMENT REVENUE IS USED TO PAY DEBT. 1. Tax increment is received in Jan and May 2. Trustee statements have not been posted as of month end. 3. Received at various time during the year. 4. Down Units have not cane back on line as quickly as antidpated. Although expenditures are down as well. 5 Expenses offset by House Sales 6. P 8 I Maude new bond issues debt service due during the current year. 7. Transfers In are from other funds. The other funds show transfers but. N. mmN 8 ma M{pomp 28W88Q8gr;oqmt8I� ORBR . 0 '$ `n el 030 a CI RIR mmFgIgqm0coo ro m Po , fl I$ R $ m �m Rm°d-'QNO 'w 'pm' m`w' ^ ' N 0 �, m3. _ (0 m m e o 22 o n N 2 8 8 8 'N G 8 . St', ' m r m $ $ o �W t * rima qa �m Nn $ oUW < Q g wl7 r r On OO N N N 00 N 0 0m $ n my N 3 N N N N . 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N N.'.r 01D1 t� V fry) Y ON CO 0 W < C O. to N N 6- a a oLL a N Z a 0 .3 GW d C f la a) a '3 3 d a S 0 a d m E s `v aW a) > 'ypaEv E2EE E0 CC m O co S E o c c > a > j > q H N 0 0 tO O m m a) 0 Q E Q o O .c p o i '3 c .E m ` to W y Ur E a E E 8 a a U' U -2 i a g - > 2 �. o � `m u'� o yamoc EE w t � ` a a 'c a m 0 et I1I! tii r a r- •�O A I- a c . mI- Cat3 C0 � a � aH W sa K W City of Palm Desert Parkview Office Complex Income Statement For May 1999 • May-99 May-99 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance hex.'. Revenues • Rental $ 58,900 $ 53,456 $ (5,444) 90.76% ? :i $ 647,900 $ 643,588 $ (4,312) 99.33% Dividends/Interest $ 1,200 $ 3,456 $ 2,256 288.03%`"g $ 13,200 $ 32,172 $ 18,972 243.73% e�a Total Revenues $ 60,100 $ 56,912 $ (3,188) 94.70% $$ 661,100 $ 675,760 $ 14,660 102.22% Expenses Professional-Accounting&Auditing $ 3,700 $ 5,161 $ (1,461) 139.49% -;c' "` $ 40,700 $ 56,771 $ (16,071) 139.49% Professional-Management Fee $ 5,500 $ 5,887 $ (387) 107.04%' ` $ 60,500 $ 71,368 $ (10,868) 117 96% Tenant Improvements $ 5,800 $ - $ 5,800 0.00%. $ 63,800 $ 7,760 $ 56,040 12.16% Repays&Maintenance Building $ 9,100 $ 3,497 $ 5,603 38.43% .; $ 100,100 $ 55,370 $ 44,730 55.31% Repairs&Maintenance-landscaping $ 1,079 $ - $ 1,079 0.00% 1 $ 11,869 $ - $ 11,869 0.00% Utilities-Water $ 250 $ 100 $ 150 40.14%- $ 2,750 $ 1,014 $ 1,736 36 87% Utilities-Gas/Electric $ 6,000 $ 3,332 $ 2,668 55.54%. $ 53,500 $ 45,450 $ 8,050 84.95% Utilities-Trash $ 450 $ 604 $ (154) 134.18% '„i yi $ 4,950 $ 6,134 $ (1,184) 123.92% Telephone $ 150 $ 137 $ 13 91.09%k. � - $ 1,650 $ 1,634 $ 16 99.03% Insurance $ 521 $ - $ 521 0.00°% $$ 5,729 $ - $ 5,729 0.00% Total Expenses $ 32,550 $ 18,718 $ 13,832 57.51%f,sdr „ $ 345,548 $ 245,501 $ 100,047 71 05% aaa . :....: ..�+ !F ... `w.._:•a : .x . .:2, .,. Invest1999-Invest Parkview Office Complex Vacancy Rate Schedule by Suite May 1999 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building 100 Hanover 2,560 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Vacant 928 108 Senator Kelly 785 112 Assemblyman Bailin 1,406 114 Chamber of Commerce 1,478 118 Vacant 1,250 119 City/CVAG Conference Room 1,380 120 Golf Dimensions 1,750 200 CVAG 4,292 200A Vacant(space is nc t available to lease) 841 201 U.S.District Court 604 203 Accounting Services 480 205 Coachella Valley Economic Partnership 700 208 Ferguson&Bernheimer 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 Invest;Vacancy Report Parkview Office Complex Vacancy Rate Schedule by Suite May 1999 Suite Square No. Tenant Feet 217 Mcmillan 775 220 CA.State Dept. of Agriculture 1,607 222 WMA Securities 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate--3,019/31562= 9.57% 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 Vacant(Received a lease agreement from the State of CA Rehabilitation Dept) 4,396 Total Square Footage 19,629 Vacancy Rate--4,396/19,629=22.4% Overall Vacancy Rate for Both Buildings: Vacancy Rate--7,415/51,191= 14.48% Note:we are in the process of drafting blueprints for the State of CA Rehabilitation Department. (Expected lease start date September 30,1999) Invest;Vacancy Report • .. City of Palm Desert Desert Willow Budget Vs Actual For the month of May 1999 - Budgeted Actual Budgeted Actual May May $ Percentage Year to Year to $ Percentage Revenue 1999 1999 Variance Variance Date Date Variance Variance Course&Ground $ 271,082 $ 409,713 $ 138,631 131.14% $ 4,122,561 $ 4,321,514 $ 198,953 104.83% Carts $ 6,927 $ 28,225 $ 21,298 407.46% $ 189,564 $ 202,124 $ 12,560 106.63% Golf Shop $ 43,678 $ 45,815 $ 2,137 104.89% $ 443,118 $ 461,934 $ 18,816 104.25% Range $ 1,786 $ 875 $ (911) 48.99% $ 21,748 $ 12,651 $ (9,097) 58.17% Food&Beverage $ 30,648 $ 56,337 $ 25,689 183.82% $ 429,670 $ 409,821 $ (19,849) 95.38% Interest Income $ 1,500 $ 3,924 $ 2,424 261.60% $ 16,500 $ 17,170 $ 670 104.06% "Total Revenues $ 355,621 $ 544,889 $ 189,268 153.22% $ 5,223,161 $ 5,425,214 $ 202,053 103.87%] Payroll Perimeter 1 andvaping $ 9,357 $ 7,351 $ 2,006 78.56% $ 100,476 $ 83,635 $ 16,841 83.24% Proshop $ 4,620 $ 3,662 $ 958 79.26% $ 92,211 $ 86.219 $ 5,992 93.50% Cart $ 13,935 $ 11,858 $ 2,077 85.10% $ 167,572 $ 132,601 $ 34,971 79.13% Course&Ground $ 102,808 $ 88,667 $ 14,141 86.25% $ 967,713 $ 942,967 $ 24,746 97.44% Golf Operations $ 16,461 $ 21,959 $ (5,498) 133.40% $ 180,074 $ 204,808 $ (24,734) 113.74% General&Administration $ 25.969 $ 26,392 $ (423) 101.63% $ 265,127 $ 229,770 $ 35,357 86.66% Food&Beverage $ 30,025 $ 18,267 $ 11,758 60.84% $ 172,386 S 149,618 $ 22,768 86.79% 'Total Payroll $ 203,175 $ 178,156 $ 25,019 - 87.69% $ 1,945,559 $ 1,829,618 $ 115,941 94.04%] Other Expenditures Perimeter Landscaping $ 4,900 $ 2,731 $ 2,169 55.73% $ 53.900 $ 40,089 $ 13,811 74.38% Proshop $ 1,050 $ 5,209 $ (4,159) 496.10% $ 36,190 $ 37,389 $ (1,199) 103.31% Proshop-COGS - $ 19,921 $ 22,864 $ (2,943) 114.77% $ 234,966 $ 238,077 $ (3,111) 101.32% Can $ 20,923 $ 45,517 $ (24,594) 217.55% $ 300.643 $ 343,330 $ (42,687) 114.20% Course&Ground-North Course $ 54,291 $ 42,483 $ 11,808 78.25% $ 664,690 $ 566,905 $ 97,785 85.29% Course&Ground-South Course $ 52,335 $ 55,662 $ (3,327) 106.36% $ 408,481 $ 352,161 $ 56,320 86.21% Course&Ground-Desert Pallet-N $ 3,700 $ - $ 3,700 0.00% $ 45,600 $ - $ 45,600 0.00% Course&Ground-Desert Pallet-S S 2,445 $ - S 2,445 0.00% $ 30,135 $ - $ 30,135 0.00% Golf Operations $ 700 $ 1,232 $ (532) 176.00% $ 27,640 $ 23,948 $ 3,692 86.64% General&Administration $ 28,291 $ 45,819 $ (17,528) 161.96% $ 430,340 $ 508.739 $ (78,399) 118.22% Range $ 250 $ 1,880 $ (1,630) 752.00% $ 19,700 $ 20,559 $ (859) 104.36% Food&Beverage $ 9,395 $ 4,044 $ 5,351 43.04% $ 54,490 $ 64,853 $ (10,363) 119.02% Food&Beverage COGS $ 10,727 $ 22,384 $ (11,657) 208.67% $ 150,385 $ 171,732 $ (21,347) 114.19% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 231,250 $ 239,943 $ (8,693) 103.76% Financing/Lease $ 8,888 $ 9,665 $ (777) 108.74% $ 93,716 S 90,035 $ 3.681 96.07% eTotal Other Expenditures S 242.816 $ 284,490 $ (41,674) 117.16% $ 2,782,126 $ 2,697,760 $ 84,366 96.97% David Leadbetter Academy Learning Center Revenues $ 35,000 S 30,882 $ (4,118) 88.23% $ 380,000 $ 308,189 $ (71,811) 81.10% Reimbursements to David Leadbetter $ (29,750) $ (26,250) $ 3.500 88.24% $ (323,000) $ (261,860) $ 61,140 81.07% Other Expenditures $ (100) $ (1,377) $ (1,277) 1377.00% $ (14,600) $ (15,146) $ (546) 103.74% Learning Center Income(Loss) $ 5,150 $ 3,255 S (1,895) 63.20% $ 42,400 $ 31.183 $ (11,217) 73.54% gi Net Income(Loss) $ (85,220) $ 85,498 $ 170,718 -100.33% $ 537,876 $ 929,019 $ 391,143 172.72% Dw9899;Financial Statement ` cDi- ( - / i § \ \ 7 ( } % | § ® \ 2 ° § coo au CI w| q - § - § 2; , | | ° ) ; a s ; . ■ § [ § § ! g ! | to £ ) ) } & °\la r No n1 k 0u0 ceo \ J ) 8282a. \ / \& } K 0 ` < ! 2 L )Ii � 't •! / a 1 k 1� ` k § q ! H ) iIo a I1 I ! » ) ! \ {» 1 « ~ § � � ` i ! ! _ 7 - ! /) / AD] \ , - # L ! § 7 _ ] k / § _ ! ,/ §§§§§§§§§§§ § || // 4Z4_.nA;;; �; ■ | 02 ......!§[;■ .6 Vio! • .`� � | ! leEM 8,38■• 7 :) t4 )g\))�)\))/ 4 e a ,0$ ;!.44 -44!§§ R ) ;r;;;!|;;K§ ■ '! • m -. „ AaA:`m§ - eweweeri | , *:28.aali ( ;a ;�en "'"4 mftm ,! ���feel;!(» ) ' |! [(§\§!f!!f- | •t ' '4 ce !! !§!f` !reww $ 22I k!!!`&!2§7[ | | ! ! | | t ! t ; ! , ! !\h)|$h!! ) !ih ihJ 7! / i cl wcewwwwwwww , II soshaa .c..As 3 d figg_ 4as= „nx«s =p, Q S' > V Fge Y g w w w m e ce w w ce w* w o ce C fq 11;All T ne eeceee eece sew ceee M mmA.,,,,---'. ' wi w ��a ss �_sgy > ttx R n F. _ > O qq L7 4 N M F D e gi e reS H n a A .. h - N -N n n m N 4 z qqg F r g y = *ce ce w ce ce w w ce ce 0 w c w n s a a�d D m `qd' =8 S A§A v m o m$g e $ vmBamN N$ m-te.Na-Nm'mC a os .. - «.rim• ^ G .. say ' G4 - n ,ow « .o«�^e.v,,,i4 4 _ 11 !PM � ! aE $ Qe mm ikii ig Pm Fb vt j I 5 lAt F I I IIt i 3 a • | _ I �| §a666a600.n § || \| . . . . mn°: :!! m | . ||| -! 2§;!!;;|;;; | , , 6._.:. 4444 be 1 ° . . lERflE! ■ ! ' '- } ,! §}!!/§\)})| r et ; °_°! _ e ; :[r ;„ , ) !§;; ;r;!§ ®!f a # , oslr, ,4; §,| ;;;§§}\;§;; | �\ �_ _ ;ƒ-Th4 E ,! ,A;� r - 2| . . . "kM!M § . p ° °°§2.RRUc§ 2 !7 . . . !!)!!2!) I ! | . . . ! !)( `(i} •$ $ 1 ` 1 ! } | ! ! ` f | £$}|||Ih!! / !§ | | {9!. \ ` • | _ | H §§§§|}_!l ( ; - ` ) . . . # - _ ■ E ! & . . . ArnziA;; a /2 2 .'. . . , :_!! } 0 , � � , §2!;«|.6ga. | -1 : $ . . . F- \s\§! !! k 4z . . . E. . Eml� !@ - ! o ma] . . . l -e-B!■! % 0 ;| ,| §§§; ! !- $ Alt $ ! ' |! ,) §§§§§\) \) )§ § ) . „:„._ \E E \/| > - > ,,,,__- E | _ B»!§!!!\ ! .) ! $ -® - . ! 1 . '°°”E.5 !uj 5 . !)! . . . . 9!<U 2 f! « . . ,{� - - a £ r) ° °°!R*EK;k§ # \ §§§7i-IN—;; ■ | „ =K ® ,) °! #am ■■ 8 ,| " -867E` / / 2,7 § i . . f!E!= /ff # ( \ > g ° °,c _ - ,,+-4 i j f! & . . 3! °R!\Kf k _ ` ® - - 4 OCO.!§!§! § 2 al . . ?!BEER§■ # | ! \ ! ! ! a ` ! !! ti | *! 0 !!h)� i1h!! 6 { PennDesert Recreation Facilities Cori. .ation Income Statement May-99 May-99 # % Budget Actual Variance Variance Food& Beverage Revenues $30,648 $56,337 $25,689 183.82% Total Revenues $30,648 $56,337 $25,689 183.82% Salaries $8,421 $18,267 ($9,846) 216.92% Cost of Goods Sold-F&B $10,727 $22,384 ($11,657) 208.67% Food & Beverage Expense $3,745 $4,044 ($299) 107.98% Total Expenses $22,893 $44,695 ($21,802) 195.23% Net Income (Loss) $7,755 $11,642 Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw9899;PDRFC Budget City of Palm Desert Desert Willow Cash Reserve Analysis Three Mouth Projected Expenditures June July 3 August 3 Projected Expenditures Payroll 165, 23,2136943 $ 169I1,,3887 99 $ 16812:763 $j 504348,,378690 COGS $ $ $ 860 $ Operating s$ 223,012 $ 220,138 $ 202,029 $ 645,179 Totals I $ 412,171 $ 401,424 $ 383,652 $ 1,197,247 I Cash Reserve Analysts One Month Three Months Required Reserve $ 412,171,00 $ 1,197,247.00 I Cash on Hand $1,702,788.22 $ 1,702,788.22 Variance-Favorable Unfavorable $1,290,617.22 $ 505,541.22 Reconciliation of adjusted cash requirement Reconciled Cash on hand $1,589,359.61 Add Preopening&Grand-opening Owed by the City $ 20,230.31 Preopening owed by the RDA $ 3,593.18 Perimeter(Cash Owed By City of Palm Desert) $ 89,605.12 r Adjusted Cash on Hand $1,702,788.22 Adjusted Reserve Requirement $ 412,171.00 r Adjusted Cash Balance 91,290,617.22 Represents 88%of perimeter expenditures to date. a Represents budgeted expenditures for June 1999.Does not Include interest on city loan. Includes only 12%of the projected perimeter landscaping expenditures. a July expenditures for this cash analysis are based on the proposed budget for the Fiscal Year 1999-2000,which has not been approved by council. I -ggi a m C 3N I 2 W fe .D N g a " . e JC:if w d 7 ey YO e ' a I y f S 8 e L N N N o� 2 > 3 N CD IF e $ 9 Ci liX rN 5 € F m N M. N N m P. <I p) Jpry u ppip`a^y y [� c+l ch N lV L ` L '' A N m m 0 " 0 $ CON V F � o c In dd '�4� � S Oi e 1 a -- w e 0 9 S t C i I 6 , Q O Y ca M Z S z 9 yy a �$ N 0 Ua i $P O 01 o_p c t 1 Desert Willow - Combined Analysis-MAY 1999 Resident 1,513 $ 67,675 $ 44.73 19.42% Non-Resident 5,357 $ 356,700 $ 66.59 68.76% Other 371 $ 6,655 $ 17.94 4.76% Complimentary 550 $ 5,975 $ 10.86 7.06% Desert Willow Totals 7,791 $ 437,005 $ 56.09 100.00% MOUNTAINVIEW COURSE-MAY 1999 Description No.Of Revenue Avg.Per Pet to Rounds Per PO8 Round Total Resident Rounds Resident Fee-Weekend 458 $ 20,610 $ 45.00 11.99% Resident Fee-Weekday 374 $ 16,830 $ 45.00 9.79% Resident Twilight 31 $ 1,395 $ 45.00 0.81% Resident Fee-Weekday 2 $ 70 $ 35.00 0.05% Total Resident 865 $ 38,905 $ 44.98 22.65% Non Resident Winter Fee-Posted Weekday (4) $ (480) $ 120.00 -0.10% Spring Fee-Posted Weekend 525 $ 49,158 $ 93.63 13.75% Spring Fee-Posted Weekday 372 $ 26,958 $ 72.47 9.74% Summer Fee-Posted Weekend 3 $ 180 $ 60.00 0.08% Summer Fee-9 Hole Weekend 1 $ 35 $ 35.00 0.03% Spring Fee-IROC MBR Guest wknd 2 $ 152 $ 76.00 0.05% Spring Fee-IROC MBR wknd 3 $ 228 $ 76.00 0.08% Spring Fee-IROC MBR WKDY 4 $ 240 $ 60.00 0.10% Spring Fee-IROC MBR Twilight 73 $ 2,190 $ 30.00 1.91% Spring Fee-IROC Des. PRTY Wkdy 26 $ 975 $ 37.50 0.68% Spring Fee-IROC Des. PRTY Wknd 36 $ 1,710 $ 47.50 0.94% Spring Fee-Wholesale Replay 14 $ 630 $ 45.00 0.37% Spring Fee-Wholesale Weekend 207 $ 14,985 $ 72.39 5.42% Spring Fee-Wholesale Weekday 91 $ 4,900 $ 53.85 2.38% Spring Fee-Twilight 222 $ 13,086 $ 58.95 5.81% Summer Fee-Twilight 2 $ 80 $ 40.00 0.05% Spring Fee-P.S. Golfer Fee (wkdy) 42 $ 2,520 $ 60.00 1.10% Spring Fee-Passbook Twilight Fee 3 $ 180 $ 60.00 0.08% Spring Fee-Passbook(WKDY) 242 $ 15,840 $ 65.45 6.34% Fee Special Event Variable 556 $ 28,191 $ 50.70 14.56% Total Non Resident Rounds 2,420 $ 161,758 $ 66.84 63.37% Other Rounds Junior Walking 55 $ 550 $ 10.00 1.44% Charity Event 294 $ 5,885 $ 20.02 7.70% Total Other 349 $ 6,435 $ 18.44 9.14% Complimentary VIP 9 $ - $ - 0.24% PGA Member 149 $ 3,675 $ 24.66 3.90% COD/PDHS 2 $ - $ - 0.05% Donation 10 $ - $ - 0.26% Employee 9 $ - $ - 0.24% Employee Guest 6 $ - $ - 0.16% Total Complimentary 185 $ 3,675 $ 19.86 4.84% Total Round(Mountainview) 3,819 $ 210,773 $ 55.19 100% F'IRECLIFF COURSE-MAY 1999 Description No.Of Revenue Avg.Per Pet to Rounds Per P08 Round Total Resident Rounds Resident Fee-Weekend-Winter 2 $ 90 $ 45.00 0.05% Resident Fee-Weekend-spring 279 $ 12,555 $ 45.00 7.02% Resident Fee-Weekday-Spring 318 $ 14,310 $ 45.00 8.01% Resident Twilight 10 $ 450 $ 45.00 0.25% Resident Fee-Weekend-summer 39 $ 1,365 $ 35.00 0.98% Total Resident 648 $ 28,770 $ 44.40 16.31% Non Resident Winter Fee-Posted Weekend (4) $ (560) $ 140.00 -0.10% Winter Fee-Posted Weekday (3) $ (360) $120.00 -0.08% Spring Fee-Posted Weekend 511 $ 47,371 $ 92.70 12.87% Spring Fee-Posted Weekday 494 $ 35,448 $ 71.76 12.44% Summer- Posted Weekend 82 $ 4,920 $ 60.00 2.06% Summer-Posted Weekday 4 $ 160 $ 40.00 0.10% Spring Fee-IROC MBR Guest 2 $ 120 $ 60.00 0.05% Spring Fee-IROC MBR WKDY 3 $ 195 $ 65.00 0.08% Spring Fee-IROC MBR WKND 1 $ 60 $ 60.00 0.03% Spring Fee-IROC Des. PRTY Wknd 2 $ 152 $ 76.00 0.05% Spring Fee-1ROC Des. PRTY Wkdy 2 $ 120 $ 60.00 0.05% Spring Fee-Iroc Des. Pty Twilight 2 $ 120 $ 60.00 0.05% IROC Member 9 Hole 1 $ 35 $ 35.00 0.03% Spring Fee-Wholesale Replay 16 $ 720 $ 45.00 0.40% Spring Fee-Wholesale Weekend 257 $ 19,275 $ 75.00 6.47% Spring Fee-Wholesale Weekday 182 $ 10,010 $ 55.00 4.58% Winter Fee-Twilight (2) $ (160) $ 80.00 -0.05% Summer Fee-Twilight 14 $ 555 $ 39.64 0.35% Spring-Twilight Fee 217 $ 12,846 $ 59.20 5.46% Spring-Posted Replay 23 $ 1,380 $ 60.00 0.58% Spring Fee- P.S. Golfer Fee(wkdy) 22 $ 1,320 $ 60.00 0.55% Spring Fee-P.S. Golfer Fee(wknd) 7 $ 525 $ 75.00 0.18% Spring Fee-Passbook Wkdy 159 $ 9,540 $ 60.00 4.00% Spring Fee-Passbook WKND 63 $ 4,725 $ 75.00 1.59% Spring Fee-Passbook-Twilight 2 $ 120 $ 60.00 0.05% Fee Special Event Variable 880 $ 46,305 $ 52.62 22.16% Total Non Resident Rounds 2,937 $ 194,942 $ 66.37 73.94% Other Rounds Junior Walking 22 $ 220.00 $ 10.00 0.55% Total Other 22 $ 220.00 $ 10.00 0.55% Complimentary VIP 64 $ - $ - 1.61% PGA Member 119 $ 2,300.00 $ 19.33 3.00% COD/PDHS 121 $ - $ - 3.05% Donation 33 $ - $ - 0.83% Employee 17 $ - $ - 0.43% Employee Guest 11 $ - $ - 0.28% Total Complimentary 365 $ 2,300.00 $ 6.30 9.19% Total Round(FireCLR) 3,972 226,232 $ 56.96 100.00% City of Palm Desert Internal Correspondence Date: Friday, 11 June 1999 Subject: Development of Corporate Credit Analysis Program From: Thomas W. Jeffrey, Investment Manager "Tf To: Paul S. Gibson, City Treasurer During the last competitive offering, it became evident that a number of excellent companies had not been included on LAIF's approved corporate debt issuers list, which the City has been using to buy medium-term notes ("MTNs") and commercial paper ("CP"). The City is in danger of reaching concentration limits on the four companies whose debt it has been buying. The City currently lacks a formal corporate credit analysis program. The development of such a program is needed in order to increase the number of eligible companies. The U.S. Treasury debt market is also shrinking while the corporate debt market is expanding (see attached Wall Street Journal article). I acquired some experience in financial analysis while working as a senior industry analyst at ARCO, and as a corporate credit officer at First Interstate Bank. I also took a business school course in Advanced Financial Analysis that was taught by a former Wharton School of Business professor. I decided to put this experience to use by looking for and qualifying additional blue-chip corporate debt issuers that were listed in Moody's Bond Record, and in the prospectuses of several Vanguard bond index funds (since large-cap index funds focus on strong credits as part of a buy-and-hold strategy). After I had compiled a list of corporate prospects, I used Value Line; Standard & Poor's Stock Reports; the SEC's Internet database of corporate filings; and corporate Internet websites, to find relevant financial information. I focused principally on each prospect's credit ratings; revenue size; operating profitability; interest coverage; and liquidity. I also looked at industry risk and at potential litigation. With two exceptions (GM and ARCO), I disqualified any company that had MTN and long-term bond credit ratings below a Moody's "Al " rating (more conservative criteria that even LAIF's). The attached credit analysis table, and the attached CP and MTN approval lists are the result. They will be submitted for Finance Committee approval. I selected only the strongest credits since the City's credit analysis program is designed to be a low-maintenance program, with annual updates. • -Ford Motor Credit to Become a Regular Issuer -Of Corporate Bonds, Cutting the Costs of Its Debt spelled out the amount and the timetable will catch on, though only about a dozen Cps oa. ' for issuance.Ford is also promising to keep big,frequent issuers will be able to do it," MARKETS its bond issues big enough to attract inves- said Fares Noujaim, the co-head of global tors who value liquidity- debt-capital markets at Bear Stearns. By GREGORY ZUCKERMAN Ford Credit, the world's largest auto- — Even as companies prepare to step up Staff Reporter of THE WALL STREET JOURNAL motive-finance company, intends to issue the pace of their issuance of bonds, the NEW YORK — Ford Motor Co. is mak- global bonds two to four times a year in Treasury Department is slowing the 'ing a bid to establish itself as the bench- transactions of$3 billion or greater. Ford amount of new debt it sells; thanks to a mark issuer of corporate bonds. Motor Co. may also, from time to time, growing federal budget surplus.There are The auto maker's Ford Motor Credit participate in the program. now $3.9 trillion of corporate bonds out- - Co. unit announced a plan to issue bonds "Investors want bigger deals because standing in the U.S. market, topping the on a regular basis, much as the U.S. everyone's looking for liquidity, and big $3.7 trillion of outstanding U.S.Treasurys. Treasury has been doing for years, and transactions are those that are supported And Treasurys are becoming scarcer.The other government agencies have begun to by the market,"Neil Schloss,Ford Credit's total of Treasurys outstanding shrunk do recently. By initiating its own regular assistant treasurer,said. by about$100 billion last year,after falling • bond sales,Ford aims not only to establish Bear Stearns Cos., Merrill Lynch & by$50 billion in 1997.The outstanding debt - its bonds as "must-have" securities, but Co., and Citigroup Inc.'s Salomon Smith is expected to fall by about $100 billion also to sell the securities at higher prices Barney Inc. are acting as advisers in the again this year,according to Bear Stearns, and lower yields,cutting its debt costs as a new program, and will be joint bookrun- feeding the hunger for large bond issues result. ners for the initial transaction. Bear such as Ford's. "We're trying to capitalize on the de- Stearns will act as the global coordi- -- - - -- -mand by investors for liquidity," Dave nator for the initial transaction. .Cosper, Ford Credit's treasurer, said. Fannie Mae and Freddie Mac, the gov- "Regular issuance provides more cer- ernment-sponsored agencies that buy tainty for investors to take comfort home mortgages from banks and thrifts, from." have already established their own suc- Ford will sell about$10 billion of global, cessful programs of regular bond issuance senior unsecured securities — to be called aimed at creating a liquid market for their Global Landmark Securities — this year. securities. Other companies are also ex- While the figure doesn't represent much of pected to try to develop benchmark pro- ,an increase in the amount of debt Ford will grams. issue, the company for the first time •"I think benchmark corporate issues • W O00 rnv ao aJ C�--. � WNMO )f) T LLB' NN Q4r-- QQQ OO QQ ¢ O O O Oh 't (O C01 bS rry Zz __ ZZz rfAi4 ZZZ M4 0. M Nr (V M (V wt. \ \e a \e \ \ \e ee fl e � �° e \° � � � � W o o o e e a o o o e e ¢ o a 0 0 0 0 0 3) 0 0 0 0 0 Q O (O O r N 0) N O O O (O I� O r O 0) O In r 0 0 0 1� or- 4oONh4 N (-. 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Vi to d) fA f9 e e e e o e e o to O O N t0 cp. Tr N N N r ) m J m < o 0 o e o eeo W t Zs? N O) OOO 1- Q M to N t0+) yt )L) J C) F Z ° wF to v m O ¢ ¢ Q arg O N ' 1- ZZZ U W Hp q x F0.' ¢ 0) O N tx t r- .x- ° F > to to o� v v of F' o- — 0 Z H ? e ry o ItIL ° o e a « go Q � _ co Z Z Z -- air a a 2 0 en W r CO 'it Cr] CO O N ff z d. � t0 N O to "0- ..);: w 2 � a> M N R R c _ et ~ EA fA f9 to to to V) M w p Z N N to C) °m � a Qa a ¢ a < cn a w ' Z p O. Z .- r o go rL rLd d ddrL 2 to o a) a) a r .o 02g CO tin CO CO 'yak C C DWZ 0 00 a) m0co J Z ra r + W 0) + N. + j ') gy < mQ < < cm r Cr) CV •- rrM re C C o 7 = 'W L 2.Z'Z' 0-w ca CL CC F D D J COz z U p t1 d 0 Et m U U i `o ci C co C N Cam.• S- o V) g v_i o yd a woW O_ N N Cy U a) O)y tD e{ C a) N 0 :0lL U O ° �, q) N a) !E 0 > C . 0 2 2 m U O a_ DRAFT CITY OF PALM DESERT APPROVED COMMERCIAL PAPER ISSUERS (1)(2) JUNE 1999 Auto Ford Motor Co. (3) General Motors Corp. (3) Toyota Motor Credit Corp. (ONLY) Bank BankAmerica Corp. (3) Bank One Corp. Chase Manhattan Corp. (3) NationsBank Corp. Wachovia Bank of North Carolina Wells Fargo & Co. (3) Beverage Coca-Cola Co. (ONLY) PepsiCo, Inc. (ONLY) (3) Brokerage Goldman Sachs Group Chemical Du Pont (E.I.) de Nemours & Co. Comouter Hewlett Packard Co. (3) IBM Corp. (3) Drug Abbott Laboratories (3) Bristol-Myers-Squibb Co. (3) Eli Lilly & Co. Johnson & Johnson Pfizer, Inc. (3) Warner-Lambert Co. Page 1 of 3 (1) Commercial paper has a maximum maturity of 180 days. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) On LAIF's "Approved Commercial Paper Issuers" List. DRAFT CITY OF PALM DESERT APPROVED COMMERCIAL PAPER ISSUERS (1)(2) JUNE 1999 Electric Eauipment Emerson Electric General Electric Co. (3) Entertainment The Walt Disney Co. (3) Finance American Express Co. (3) Food Campbell Soup Co. (3) Hershey Foods, Inc. H.J. Heinz Co. Imaging Eastman Kodak Co. (3) Xerox Corp. (3) Insurance American International Group Manufacturing Minnesota Mining & Manufacturing (3M) (3) Office Eauipment Pitney Bowes, Inc. Petroleum Atlantic Richfield Co. (3) BP America, Inc. (ONLY) Chevron Corp. (31 Exxon Corp. Mobil Corp. Shell Oil Co. (ONLY) Texaco Corp. Page 2 of 3 (1) Commercial paper has a maximum maturity of 180 days. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) On LAIF's "Approved Commercial Paper Issuers" List. DRAFT CITY OF PALM DESERT APPROVED COMMERCIAL PAPER ISSUERS (1)12) JUNE 1999 Publishing McGraw-Hill, Inc. New York Times Co. Washington Post Co. Restaurant McDonald's Corp. (3) Retail May Department Stores Co. Wal-Mart Stores, Inc. (3) Telephone BellSouth Corp. Utility Consolidated Edison Co. of New York Duke Energy Corp. Pacific Gas & Electric Corp. (3) Page 3 of 3 (1) Commercial paper has a maximum maturity of 180 days. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) On LAIF's "Approved Commercial Paper Issuers" List. DRAFT CITY OF PALM DESERT APPROVED MEDIUM-TERM NOTE ISSUERS (1)(2) JUNE 1999 Auto Ford Motor Co. (3) General Motors Corp. (3) Toyota Motor Credit Corp. (ONLY) Bank BankAmerica Corp. (3) Bank One Corp. Chase Manhattan Corp. (3) Wachovia Bank of North Carolina Wells Fargo & Co. (3) Beverage Coca-Cola Co. (ONLY) PepsiCo, Inc. (ONLY) Brokerage Goldman Sachs Group Morgan Stanley Dean Witter & Co. Salomon Smith Barney Holdings, Inc. Chemical Du Pont (E.I.) de Nemours & Co. (3) Computer Hewlett Packard Co. IBM Corp. (3) Household Colgate-Palmolive Co. Drug Abbott Laboratories Eli Lilly & Co. Johnson & Johnson Merck & Co. (3) Page 1 of 3 (1) Maximum maturity of "A" MTNs is 2 years; "AA" MTNs 3 years; and "AAA" MTNs 5 years. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) Also on LAIF's "Approved Corporate Bond Issuers" List. DRAFT CITY OF PALM DESERT APPROVED MEDIUM-TERM NOTE ISSUERS (1)(2) JUNE 1999 Electric Equipment Emerson Electric General Electric Co. (3) Entertainment The Walt Disney Co. (3) Finance American Express Co. Citigroup, Inc. (3) Food Campbell Soup Co. Hershey Foods, Inc. H.J. Heinz Co. Jnsurance American International Group JVlanufacturinq Minnesota Mining & Manufacturing (3M) (3) Office Eauipment Pitney Bowes, Inc. Petroleum Atlantic Richfield Co. (3) BP America, Inc. (ONLY) Mobil Corp. Shell Oil Corp. (ONLY) (3) Texaco Corp. Publishing New York Times Co. Page 2 of 3 (1) Maximum maturity of "A" MTNs is 2 years; "AA" MTNs 3 years; and "AAA" MTNs 5 years. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) Also on LAIF's "Approved Corporate Bond Issuers" List. DRAFT CITY OF PALM DESERT APPROVED MEDIUM-TERM NOTE ISSUERS (1)(2) JUNE 1999 Restaurant McDonald's Corp. Retail Wal-Mart Stores, Inc. Telephone BellSouth Corp. Utility Duke Energy Corp. Pacific Gas & Electric Corp. (3) Page 3 of 3 (1) Maximum maturity of "A" MTNs is 2 years; "AA" MTNs 3 years; and "AAA" MTNs 5 years. (2) Captive U.S. finance companies are also eligible unless excluded ("ONLY"). (3) Also on LAIF's "Approved Corporate Bond Issuers" List. (-24-1999 09:25 FF:LMt CALIF ST. TREASURER LAIF TO 87603416372 P.03 Ai STATE OF CALIFORNIA POOLED MONEY INVESTMENT ACCOUNT APPROVED CORPORATE BOND ISSUERS May 1999 xh..,.w..hx<...,., .. .w,w..... _....,..,._.r.=prttr.-.1ic.,:_; -max._ - .n..x...:u:u..n.rv.:.nl.��n— .wv . ....ter .�......:.............: . . .h ..n..nn.r.nh... -.�wr.......1.:.:. _M1. ..dam.'. ......u.... _ n.s..un..... ........... .....n........--. ..... .. ..ra.eu.. .:::....wu . ..�u .�.i...........•.a.. ".......... .- ....�w:�.. Associates Corp.of North America Atlantic Richfield Company(ARCO) AT&T Corporation • BankAmenca Corporation Bankers Trust Corporation Baxter International Inc. Chase Manhattan Corporation Chevron Corporation Chrysler Financial Corporation Cincinnati Bell Inc. Citigroup Dupont(E.I.)De Nemours&Company Exxon Corporation Ford Motor Credit Company General Motors Acceptance Corporation IBM Corporation IBM Credit Corporation Indiana Bell Telephone Company • Indianapolis Power&Light Company J.P.Morgan and Company,Inc. Madison Gas&Electric Company Merck&Company,Inc. Minnesota Mining and Manf Company(3M) Pacific Bell Pacific Gas and Electric Company Procter and Gamble Company Ralston Purina Company Shell Oil Company Southern California Edison Company Times Mirror Company • • Transamerica Finance Corporation U.S.Bancorp Walt Disney Co. Wells Fargo& Company Wisconsin Electric Power Company Wisconsin Power&Light Company Wisconsin Public Service Corporation World Savings and Loan F:1 ti4xn\cbex599-doc TOTAL P.03 • MOODY'S*BOND RECORD 3 • MOODY'Se BOND RATINGS Prime-I C P I Purport The S)'SI1 of rating sesas was odgneled by John Moody ill1909. Issuers rated Prime-1 (a supporting institutions)have a superior ability for repayment -.Tie purpae al Moody's* Ratings is b provide the Cryostats with a smple system of al senior short-term debt Paonne-1 repayment*dilly will oheq,be evidenced gradation by which the relative aon rvesent qualities of bonds may be noted. by marry of the following idw c Rating Symbols: Gradations of krvesonent quality are indicated by rating symbols, _Lading market gane mi th walFestahislred mambas. each symbol representing a group in which the quality characteristics are broadly the i same. There are nine symbols as shown below, from that used to designate least —High rates of return on funds employed. ( investment risk (i.e., highest investment quality) to that denoting greatest investment ` risk (i.e, lowest investment quality): -Conservative capitalization structure with moderate reliance on debt and ample Asa Aa A Bea Ba B Caa Ca C asset protection. For explanation of municipal rating symbols, in particular the A 1 and Baa I groups 'j see page 6 —Broad margins In earnings coverage of feed financial charges and high internal cash generation. Absence of Rating: Where no rating has been assigned or ware a rating has been suspended or withdrawn, it may be for reasons unrelated to the quality of the issue. —iVell�stablistred access to a range of financial markets and assured sources of Should no rating be assigned, tie mason may be one of the following: alternate liquitltty 1. M application for rating was not received or accepted. Prime-2 2. The issue or issuer belongs to a group of securities or companies that are not lesuers rated Prins-2(or supporting institutions) have a strong ability for repayment rated as a matter of policy. 3. There is a lack of essential data pertaining to the issue or issuer bt senior short-term debt obligations. This will normally be evidenced by many :bottle 4. The issue was privately placed, in which case the rating is not published in characerisacs cited above but to a lesser degree. Earnings trends end coverage ratios, Moody's® publications, whit sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidly is Suspension or withdrawal may occur t new and material circumstances arise, to maintained. effects of which preclude satisfactory analysis; a there is no longer available reasonable l up-to-date data to permit a judgment to be formed;if a bond is called for redemption;or Prime-3 for other reasons. Issuers rated Prime-3 (or supporting institutions) have an acceptable ability for Changes In Rating: The quality of most bonds is not fixed and steady over a period repayment of senior short-term obligations. The effect of industry characteristics and of time,but tends to undergo change. For this reason changes in ratings occur so as to market compositions may be more pronounced. Variability in earnings and profitability reflect these variations in the intrinsic position of individual bonds.A change in rating may thus occur at any time in the case of an individual issue.Such relatively high financial leverage. Adequate alternate liquidity is maintained. rating change should serve notice that Moody's® observes some alteration in the Not Prime investment risks of the bond or that the previous rating did not fully reflect the quality of Issuersrated Not Prime do not fall within any of the Prime rating categories. the bond as now seen.While because of their very nature, changes are to be expected more frequently among bonds of lower ratings than among bonds of higher ratings, Moody's® makes no representation that rated bank or insurance company obligations nevertheless the user of bond ratings should keep close result in changes in the level of debt protection measurements and may require and constant check on all are exempt from the registration under the U.S. Securities Act of 1933 or issued in ratings-both high and low ratings-thereby to be able to note promptly any signs of anhxmiy with any other applicable law or regulation. Nor does Moolyr represent change in investment status which may actor. that any specific bank or insurance company obligation is legally enforceable or a valid Limitations to Uses of Ratings: Bonds carrying the same rating are not claimed to be of absolutely equal g senior obligation of a rated issuer. quality.In a broad sense they are alike in position,but since there If an issuer represents to Moody'sa that as short-term debt obligations are supported are a limited number of rating classes used in grading thousands of bonds,the symbols by the credit of another entity or entities,then the name or names of such supporting cannot reflect the fine shadings of risks which actually exist. Therefore, it should be entity or entities are listed within the parentheses beneath the name of the issuer, or evident to the user of ratings that two bonds identically rated are unlikely to be precisely there is a footnote ref ening the reader to another page for the name or names of the the same in investment quality. supporting entity or entities. In assigning ratings to such issuers, Moody' s* evaluates As ratings are designed exclusively for the purpose of grading bonds according to the financialies, strength of the affiliatedhe corporations,butcommercial one banks, insurance companies, foreign governments or other entities, but only as one factor in the total their investment qualities, they should not be used alone as a basis for investment rating assessment. Moody's® makes no representation and gives no opinion on the operations. For example,they have no value in forecasting the direction of future trends legal validity or enforceability of any support arrangement. of market pica.Market price movements in bonds are influenced not only by the quality of individual issues but also by changes in money rates and general economic trends,as Moody's® ratings are opinions, not recommendations to buy or sell, and their well as by the length of maturity,etc.During its life even the best quality bond may have accuracy is not guaranteed. A rating should be weighed solely as one factor in an wide price movements, while its high investment status remains unchanged. investment decision and you should make your own study and evaluation of any issuer whose securities or debt obligations you consider buying or selling. The matter of market price has no bearing whatsoever on the determination of ratings which are not to be construed as recommendations with respect to "attractiveness." BRANCH(DEPOSIT)OBLIGATIONS The attractiveness of a given bond may depend on its yield. its maturity date or other factors for which the investor may search, as well as on its investment quality, the only Obligations of a branch of a bank are considered to be domiciled in the country in characteristic to which the rating refers. which the branch is located. Unless noted as an exception,Moodyserating on a barks Since ratings involve judgments about the future,on the one hand,and since they are ability to repay senior obligations extends only to branches located in countries which used by investors as a means of protection, on the other. the effort is made when carry a Moody's®of theSoverbian sR ratingatn fa Bank 's®Dep Sovereignov. Such branch obligationsak are assigning ratings to look at 'worst" potentialitiesction, in the 'visible" future, rather than rated at the lower bank's or located. Moody's® Rating for Bank Deposes ' tar the country in which the branch is located. solely at the past record and the status of the present. Therefore, investors using the rating should not, expect to find in them a reflection of statistical factors alone, since When the currency in which an obligation is denominated is not the seine as the they are an appraisal of long term risks,including the recognition of many non-statistical currency of the country in which the obligation is.domiciled, Moody's® ratings do not factors. incorporate an opinion as to whether payment of the obligation will be affected by Thoughratings maybe used the bankingauthorities to ctessity bolls in their bank actions of the government controlling the currency of denomination. In addition, risks n9 byassociated with bilateral conflicts between an investor's home country and either the examination procedure, Moody's® Ratings are not made with these bank regulations in issuer's home country or the country where an issuer's branch is located are not view. Moody's® Investors Service's own judgment as to desirability Or non-desirability of incorporated into Moody'se short-term debt ratings. a bond for bank investment purposes is not indicated by Moody'se Ratings. MOODY'S® CORPORATE LONG-TERM RATINGS Mothers Ratings representtmentthe mature opinion of As such, Investors Service, Inc.,n as to the relative investment classificationnndof bonds. psuch, they should be used in Ma conjunction with the description and statistics appearing in Moody's® Manuals. Reference should be made to these statements for information regarding the issuer. Bonds which are rated An are judged to be of the best guiltily. They carry the Moody's* Ratings are not commercial credit ratings. In no case is default or smallest degree of investment risk and are generally referred to as "gilt edged." recehership to be inputed unless expressly so stated in the Manual Interest payments are protected by a large or by an exceptionally stable margin and MOODY'S®SHORT-TERM DEBT RATINGS principal is secure. While the various protective elements are likely to charge, such changes as can be visualized are most unlikely to impair the fundamentally strong Moody's® short-term debt ratings are opinions of the ability of issuers to repay position of such issues. i punctually senior debt obligations. These obligations have en original maturity not exceeding one year, unless explicitly noted. Moody'se employs the following three designations, all judged to be investment grade, to indicate the relative repayment ability of rated issuers: I r 4 MOODY'Sa BOND RECORD May 1999 Aa M I Bonds which are rated Aa are judged to be of high quality by all standards.Together Money Market Funds and Bond Funds rated M are judged to be of an investment s e the Ma rated lower than the comprise �becausmargins protection mat'not known as high grade as large quality similar all standards, fixed income oMgaoons,that a,they are judged to be of high ' as in Ma securities or fluctuation of protective elements may be of greater amplitude or • A them may be other elements present which make the long-term risk appear somewhat f larger than the Aaa securities. Money Market Funds and Bond Funds rated A are judged to be of an investment A M TrJ quality similar to A-rated fixed income obligations, that is, they are judged to possess ` many favorable investment attributes and are considered as upper-medium-grade Bonds which are rated A possess many favorable investment attributes and are to be investment vehicles. considered as upper-mediumgrade obligations. Factors giving security to principal and Bea interest are considered adequate, butelements may be present which suggest a i susceptibiliy to impairment some time in the future. Money Market Funds and Bond Funds rated Bea are judged to be of an investment Bea • quality similar to Baa-rated fixed income obligations, that a, they are considered as medium-grade investment vehicles. Bonds which are rated Bea are considered as mediumgrade obligations, (i.e., they Ba are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be Money Market Funds and Bond Funds rated Bs are judged to be of an investment lacking or may be characteristically unreliable over any great length of time.Such bonds quality similar to Ba-rated fixed income obligations, that is, they are judged to have lack outstanding investment characteristics and in fact have speculative characteristics speculative elements. as well. B Ba Money Market Funds and Bond Funds rated B are judged to be of an investment Bonds which are rated Be are judged to have speculative elements; their future quality similar to B-rated fixed income obligations, that is, they generally lack cannot be considered as well-assured. Often the protection of interest and principal characteristics of the desirable investment. payments may be very moderate, and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characerizes bonds in this class. MOODY'S® FUND MARKET RISK RATINGS B Bonds which are rated B generally lack characteristics of the desirable investment. Money Market and Bond Mutual Funds Assurance of interest and principal payments or of maintenance of other terms of the Moody'se Mutual Fund Market Risk(MR)ratings are opinions of the relative degree ofcontract over any long period of time may be smog. volatility of a rated fund's net asset value (NM). In forming an opinion on the fund's Can future price volatility, Moodyse analysts consider risk elements that may have an effect Bonds which are rated Caa are of poor standing. issues in or on a fund'snet asset value such as: interest rate risk, prepayment and extension.risk, there may be present elements of dangerf wanin Such issues principal may ben default. liquidity and concentration risks, currency risk and derivatives risk.•The ratings are not intended to consider prospective performance of a fund with respect to price Ca appreciation or yield. Bonds which are rated Ca represent obligations which are speculative in a high Mp1 degree. Such issues are often in default or have other marked shortcomings. Money Market Funds and Bond Funds rated MR1 are judged to have very low C sensitivity to changing interest rates and other market conditions. Bonds which are rated C are the lowest rated class of bonds,and issues so rated can MR2 be regarded as having extremely poor prospects of ever attaining any real investment Money Market Funds and Bond Funds rated MR2 are judged to have low sensitivity to standing. changing interest rates and other market conditions. MR3 Moody'se bond ratings, where specified, are applied to senior bank obligations and u jdged to have moderate insurance company senior policyholder and claims obligations with an original maturity changinginterest rates and other market Money Market Funds and Bond Funds rated MR3 are re ons. in excess of one year. Obligations relying upon support mechanisms such as letters-of- sensitivity to credit and bonds of indemnity are excluded unless explicitly rated. MR4 Moody'ss assigns ratings to individual long-term debt securities issued from Money Market Funds and Bond Funds rated MR4 are judged to have high sensitivity to medium-term note (MTN) programs, in addition to indicating ratings to MTN changing interest rates and other market conditions. programs themselves. Notes issued under MIN programs with such indicated ratings are rated at issuance at the rating applicable to all pan passu notes issued MR5 under the same program, at the program's relevant indicated rating, provided such MoneyMarket Funds and Bond Funds rated MRS are judged to have very high ands do not ng any of the followinge characteristicslisted below. For notes frothm sensitivity to changing interest rates and other market conditions. any of the following thedp the rating of the individual note may differ horn • the indicated rating of the program: Note:A "a" modifier appended to the Mitt rating category denotes constant NAV 1. Notes containing features which link the cash flow and/or market value to the money market funds and other quafdying funds. credit performance of any third party or parties. 2. Notes allowing for negative coupons, or negative principal. MOODY'S® INSURANCE FINANCIAL STRENGTH RATINGS 3. Notes containing any provision which could obligate the investor to make any additional payments. Moody'se Insurance Financial Strength Ratings are opinions of the ability of insurance • companies to repay punctually senior policyholder claims and obligations. Specific Market participants must determine whether any particular note is rated,and if so, at obligations are considered unrated unless individually rated because the standing of a what rating levet Moodie® encourages market participants to contact Moodyse particular insurance obligation would depend on an assessment of its relative standing Ratings Desks directly I they have questions regarding ratings for specific notes issued under those Laws governing both the obligation and the insurance company. It is under a medium-term note program. important to note that Moody's. makes no representation that rated insurance MOODY'S® MUTUAL FUND RATINGS company obligations are exempt from registration under the U.S. Securities Act of 1933 or issued in conformity with any other applicable taw or regulation. Nor Hoes Moody'se Money Market and Bond Fund Ratings are opinions of the investment Moody's/. represent that any specific insurance company 5a legally quality of shams in mutual funds and similar investment vehicles which principally invest enforceable or a valid senior obligation of a rated issuer. in short-term and long-term fixed income obligations, respectively. As such, these Insurance Financial Strength Ratings shown in connection with property/casualty ratings incorporate Moody'se assessment of a fund's published investment objectives groups represent the ratings of individual companies within those groups, as displayed . and policies, the creditworthiness of the assets held by the fund, as well as the in Moodyse insurance industry ratings list The rating of an individual property/casualty management characteristics of the fund. The ratings are•not intended to consider the company may be based on the benefit of its participation in an Intercompany pooling ' prospective Performance of a fund with reseed to appreciation, volatility of net asset agreement. Pooling agreements may or may not provide for continuation of inform value, or yield. "The ramg'defintlons are as follows: • . policyholder obligations by pool members in the event that•the property/ Ma . . . insurer is sold to a third party or otherwise removed from the poc ng agreement Moody's® assumes in these ratings that the pooling agreement willnot;be modified and that by Money Market Funds and Bond Funds rated Ma are judged to be of an investment the members of the pool to SUM the benefits of pool participation, rer quality similar to Ma-rated fixed income obligations,that is,they are judged to be of the will remain in the pool.Moody'sa makes no representation or warranty that such pooling best quality. agreement will not be modified over time, nor•does Moody'se opine on the probability that the rated entity may be sold or otherwise removed horn the pooling agreement. I N T -E R MEMO OF F ICE To: Mayor and City Council Members Board Members of the Redevelopment Agency From: Paul S. Gibson,Finance Director Subject: Desert Willow Assessments District Liens on Redevelopment and City property. Date: June 1, 1999 Recommendation. By minute motion: (1)Authorize the payoff of the assessment liens for the City parcels and appropriate $ 465,540 from the unobligated Golf Course Capital Improvement Fund. (2)Authorize yearly payment of the Redevelopment Agency assessment liens from Project Area#2. (3)Approve filing the revised assessment district 84-1r liens on the parcels that the City and Agency own in Desert Willow. Background: In February 1999,Finance staff received the current years list of parcels with assessment district liens that are owned by the City or Redevelopment Agency. The majority of the parcels are located in Assessment District 84-1R which covers the Desert Willow parcels. As the Redevelopment Agency acquired the parcels not all the assessment liens were paid off at the time of purchase. As part of MBIA Muni-Financial review of placing assessments on the next tax roll they review the changes to various parcel maps to assure proper placing of liens on properties. In this process they discover that a new map is being recorded to reflect the layout of Desert Willow and the various pads for hotels and timeshares. With this recordation requires that the property owner have a engineer reapportion the assessments to the new parcel map. Attached is the new reapportionment of the various parcels for Desert Willow and the new liens. The City staff and Redevelopment Agency met and agreed upon the averaging method of spread was fair for both agencies. Attach exhibit B shows the calculation of this method and the amount of payment required if paid immediately versus making payment over the remaining life of the bonds. The City staff is recommending that we pay off the entire assessment saving the City $ 133,965 of interest cost. The funds would come from a newly created fund called Golf Course Capital Improvement Fund (derived from the Intrawest timeshare fees). The Redevelopment Agency is recommending paying the assessment lien over the life of the bonds. The yearly assessment for the fiscal year 1998-99 is $ 66,571. The City and Redevelopment Agency staff recommend approval of the above payments and recording of the revised parcel liens. \ I Respectfully submitted, Reviewed and Concur, Paul S. Gibson,Finance Director Executive Dir. Ramon A. Diaz, City M ager