The URL can be used to link to this page

Home My WebLink AboutJANUARY - MARCH 2001 INVESTMENT AND FINANCE COMMITTEE Agenda INVESTMENT & FINANCE COMMITTEE Wednesday, January 17, 2001 - 12:00 Noon North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES - December 27, 2000 Rec: Approve minutes of the regular meeting of December 27 PP 9 9 , 2000, 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 Rec: Status Report Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds Action: AGENDA - INVESTMENT & FINANCE COMMITTEE January 17, 2001 Page 2 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for December 2000 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for December 2000. Review status of capital projects and cash-flow projections. Action: B. Review Short Term Investments Maturing in January 2001 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes Action: C. State of California Local Agency Investment Fund Monthly Report for November 2000 Rec: Informational item for the Committee to review. No action required. D. City and Redevelopment Agency Monthly Financial Reports for City Council for December 2000 Rec: Report and submit to City Council Action: E. Parkview Professional Office Buildings - Financial Report for December 2000 Rec: Review and file report Action: F. Desert Willow Golf Resort Financial Information for November 2000 Rec: Review and file report Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for November 2000 Rec: Review and file report Action: AGENDA - INVESTMENT & FINANCE COMMITTEE January 17, 2001 Page 3 VII. REPORTS AND REMARKS A. Reports and remarks by any Committee Member B. Items to be placed on the next agenda VIII. INFORMATIONAL ITEMS - None IX. NEXT MEETING - Wednesday, February, 21, 2001, at 12:00 Noon X. 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 meeting. Dated this January 10, 2001. I De Bradley, Recording eta Investment and Finance Committee Minutes of December 27, 2000 Page 4 of non-resident rounds. Mr. Lindquist informed that the second course opened December 23, therefore, both courses are in operation. G. Palm Desert Recreation Facilities Corporation Income Analysis for September and October 2000 There being no issues to address,discussion ensued to the next agenda item. H. Approval of New Commercial Paper Issuers Referring to the agenda material, Mr. Jeffrey gave a lengthy overview of the different companies and their ratings. It was moved by Council Member Kelly, seconded by Mr. Campbell and unanimously carried not to add Bayer AG to the Approved List. Additionally, it is staffs recommendation that all electrical power companies, especially Duke Energy and Consolidated Edison of New York, be removed from the Approved List due to the industry instability that has resulted from deregulation. The committee concurred without action. I. Approval of New Medium-Term Note Issuers Mr. Jeffrey briefed on the practice of medium-term notes, which is typically three years maximum. It is staffs recommendation to add Goldman Sachs Group and to strike Duke Energy. It was moved by Mr. Campbell, seconded by Mr. Magloff and unanimously carried to add Goldman Sachs Group to the medium-term note list, and strike Duke Energy therefrom. J. Audit Reports for City of Palm Desert Reference was made to the audit reports for the City of Palm Desert with no discussion. Investment and Finance Committee Minutes of December 27, 2000 Page 5 K. Audit Reports for Palm Desert Redevelopment Agency Reference was made to the audit reports for the Palm Desert Redevelopment Agency with no discussion. L. Annual Review of City Investment Policy The proposed changes to the City's Investment Policy were covered in detail by Mr. Jeffrey. In addition to discussion, a presentation was given by Mr. Jeffrey related to investment grades. Attention was given to the purchase of "Aaa" rated commercial paper. A statement was made by Mr. Veazie with a suggestion that the Finance Department management be allowed to purchase commercial paper up to fifteen percent (15%) that is "Aaa" rated. Concurrence was given by Mr. Gibson. Mr. Erwin suggested that this amendment be tried for one year. Clarification of obtaining City Council's approval was inquired upon, to which Mr. Erwin advised that due to this amendment not being a substantial change, it did not have to be approved by City Council, only reported thereon. It was moved by Mr. Campbell, seconded by Mr. Ortega and unanimously carried to approve staffs proposed amendments to the Investment Policy as amended. M. Treasury Audit Issues Mr. Gibson explained the comparisons of what the current auditor's procedure is and the proposed additional treasury audit issues to be used in a City treasury audit,with the intent being to further strengthen the accountability for treasury operations. It was moved by Mr. Ortega, seconded by Mr. Erwin and unanimously carried to approve the forwarding of the additional audit issues denoted in Exhibit'B" to the City's outside auditor for use in a City treasury audit. REPORTS AND REMARKS Mr. Gibson reminded of the Committee's new meeting Investment and Finance Committee Minutes of December 27, 2000 Page 6 time, which has been changed at the Mayor's request, from 11:00 a.m. to 12:00 noon. The place of meeting will remain the same. INFORMATIONAL ITEMS None. NEXT MEETING The next regularly scheduled meeting will be held on Wednesday, January 17, 2001, at 12:00 p.m., in the North Wing Conference Room. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 1:07 p.m. Respectfully submitted, D a Bradley, Recording Se&ary G Tjnv c�&Wlplepdxv VSTNMVA ESII2.27A xVd s INVESTMENT AND FINANCE COMMITTEE 1 f � I 4 Minutes December 27, 2000 CALL TO ORDER A regular meeting was called to order by Finance Director Paul Gibson on Wednesday, December 27, 2000, at 12:05 p.m. ROLL CALL Present were the following members, constituting a quorum: Finance Director Paul Gibson, Mayor Jim Ferguson, Mayor Pro-Tempore Richard S. Kelly, City Manager Carlos Ortega, City Attorney Dave Erwin, Investment Manager Thomas Jeffrey, Russ Campbell, Murray Magloff and Bill Veazie Absent were the following members: None Also, present were: Redevelopment Finance Manager Dennis Coleman, Desert Willow Golf Resort Manager Gregg Lindquist and Recording Secretary Debra Bradley ORAL None. COMMUNICATIONS APPROVAL OF Upon motion of Mr. Ortega, seconded by Mr. MINUTES Erwin, and by unanimous vote, the minutes of the November 15, 2000, meeting were approved as submitted. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no issues to report, discussion ensued to the next agenda item. B. Bond Issuance by Palm Desert Housing Authoritv Reporting for Redevelopment Manager Dave Yrigoyen, Mr. Coleman advised that in reference to the compilation of figures related to the stipulation discussed at the last meeting, there will be bonding in the housing area. Basically, the low-moderate side of the Agency is looking into acquiring apartment units, in Investment and Finance Committee Minutes of December 27, 2000 Page 2 which City Council has approved for an offer. The bond issuance will be between a net amount of $13 to $14 million, depending upon the repairs and rehabilitation that might be necessary. Mr. Coleman continued in reporting that there is sufficient tax increment on the housing side, projected at $7 million this current year. A. City and Redevelopment Agency nvestment Schedules and Summary of Cash Reports for November 2000 Mr. Jeffrey distributed the City and RDA Portfolio reports for the month of November 2000, which were received and filed. In reporting, the book value of the City investment portfolio for the period ended November 30, 2000, was approximately $166.8 million, reflecting an increase of approximately $1 million from the prior month, due to revenue and receipts. As denoted in the graphs, the City had approximately$2 million of medium-term notes maturing, and a draw of approximately $2.9 million; togetherwith additional cash,four pieces of commercial paper were purchased. An overview of the portfolio charts was given by Mr. Jeffrey. The book value of the Redevelopment Agency (RDA) investment portfolio for the period ended November 30, 2000, was approximately $137 million, reflecting a decrease of $596,000 from the prior month, due to bond draws. Mr. Jeffrey concluded by giving a brief overview of the portfolio charts. The Summary of Cash reports for the City and RDA for the month of November 2000 were distributed and filed under item "D." B. Review Short-Term Investments Maturing in December 2000 A handout was received and filed with brief discussion. C. State of California Local Agency Investment Fund Monthly Reports for October 2000 There being no issues to report, discussion ensued to the next agenda item. Investment and Finance Committee Minutes of December 27, 2000 Page 3 D. City and Redevelopment Agency Monthly Financial Reports for City Council for November 2000 An overview of the November 2000 financial reports for the City was given by Mr. Gibson. It was noted that the sales tax quarter between August and November 2000 was up approximately $150,000. Year-to-date, revenue was up to $5.6 million. In reference to transient occupancy tax, the year-to-date actual is higher than last year, due to Marriott paying early. It was highlighted that this year's licenses and permits are higher than last year. A brief overview of the expenditures was given by Mr. Gibson. The November 2000 monthly financial report for the Redevelopment Agency was distributed and filed. There being no issues to report, discussion followed to the next agenda item. The Summary of Cash reports for November 2000 reports were distributed with no discussion. E. Parkview Professional Office Buildings - Financial Reports for November 2000 Mr. Gibson reported that Parkview is 98.8% occupied. It was noted that the vacant office space is being used by the Finance Department for storage of files. The attorneys have worked an agreement with Golf Dimensions in signing a sub-tenant lease until March 2001. Additionally, it was reported that both the Senator and Assemblyman will be submitting renewals for approval and execution by City Council. F. Desert Willow Golf Resort Financial Information for September and October 2000 Due to time constraints, Mr. Lindquist was directed to skip September 2000's report and summarize on October 2000 only. In summary, Mr. Lindquist advised that Desert Willow is ahead of the budgeted projections by approximately $200,000. In referring to the report, year-to-date, rounds are exceeding projections in terms =v wv Dm w ?o �A <p cm 3oQD o m < oOO, Am m 0 y, Z) W ; O m O m b ; ; mDm N 0a s m Cl) D m Om mgn m c azc m3 . w y N o m d d m y H D to ; r m o m O A x n F m 9 z z dN E v mC A 00 L D0 D n < D m m m � n C W D 1 O O m w �13. 3 m 3 N m m � O mo r � c z z n 0 � m 0 J A N O N N O lrll Z N n z C J W z o O 0 m � o m n n y � � � 3 w m c O £ � y W N � J J m N U J O + m N N N + 4t N V m O m m O A + W L Q L O m S O O N N C O O J W m A 8 N C Q O) 10 S A O N O N S S S N O 6 O d w O b N N m N IJ O O O W O U t0 o C y F w nN 3 m � N a W 1 o m 1 w d m + + V tT O V N f0 A + A y �o o 0 u o m o m N m 1p (1 O m W A m m Go N W 0 m O O N V V N m f0 m m m m m m m N O T J iCD 0 Q m y w w .pNi 0 C 7 d e m m m m 3 at o 3 O QI Ol m m V m O, L m bl O m O V Q W > (mp w O W N V m m+ S Omi N + i <m 1 V V O O N N m FA O m N m + b O V N N O N S O) Ol fD N W O N m N N F 9 O O O m N O m N Ip tp m m m 0 T' m n H � T A N W S W O O m O N 4mi m UWi (OO (Wig (ml < l7 a w o 3 D O A o O < 0 a Da y b b b b b b b b b b C O 4 W m O W W W W m N N N N N N N N N N y C W O n mY.' W W W O mmmmm m m m m mm m y O T O .ym�y D ; 0 mp r J N N J J V J N N N N p t u Q D r T m Z O N uNi N + N W V r D m m m f0 i r N m m b A m m N b W N y ni = g y a = j m O < m < < < D O m 'J r� m #m � r c v C a v c T T T T C r p 6 T T T T T O C C C C C C C C C C C C u m m m m m m o m m m m m m m m z z z z z z z z z z z m e o Q Q o = m m m m m a m m m m a s n m m m m m n a m m m m m m m m m m m m m r r r r m m r r r r r m 9 m b b b b b m m fA W W W z z z x m m z x x x x n m y y y y y y y y y y m D D D O ro Z m D O O O O n r m D D D D D D D D D D D m y o o m y y m O m y m s O m m m m m m m m m m m m m <_ m m m m m m m Z O m m W W W m m w m m m Z Z Z r Z QO O OF OF oN Wy mm ADA< ADA< ADA< ADA< ADA< mD<A m mA< m m A<mD D D m D D D D D D D8 8 3 ; W W W m N ym O O O ; T j T C c C c C c c C C C C mn n n Z D Z 2 oy 0 O Q O (C�J O O m Z N n m p m 0 O O N Y O G m C O N m Ql Q1 m m m m O O N 2 N 2 N 13 C b b b b S S S S O b b b b N S d 1b0 ON O p O b m b b O O O O O m m m V J J J J J J J m m C O � � - T O SN 8N 8A N A A + SN O O O O S NmOO 8088 W pN SN � NO + Om O O O O O O O O O O OY O+A Om+ OON ON O O�N�App OpS WOO OOW OWO O OOOOS S S S S SSSSSSS O N O SSSSSNUO S S S S S S S S S S SO DO m Q (p C m � 3 (D 7 M O A m J N O O Am V O + J O N ON m W m N m _O A W W N O m bm A O m m m m m m m N m O O (O O m m V N m m m J W J S m m m O m O O O m m m N m W L m L N J J m m tl and 4 + (AJ O N N O O O O O O N toll N O W N m (mD m O m+ fO > N 0 O O O O O + + N N S N Ol N O O V r + m + O O + O + > m O O O S O O mg Ol m m V m m b N N V N m + N A O N W W N V m A N m m m m - + m m A 0 . m V m W A V A m O O O S O N N + m m + A O N N M A m V m m O m m m l0 (If m mmmm m m m m m m m m m m m m m m m m m m m O O O W m O O O m O m O O O m m m m O O m O 0 6 O D D D D D g D � � D t � D D D D D D D D D ,d tl tl d m m m m m m m m m d m m m m m m tl N m m d d m d m m m m m m m tl m m m N A A m m m m m m m m V W O O m m Cl m J V p� p� m m Im A A A m m mm m m m J m S 4 W 0 m O Ol Ol W fy m V J N W A A � W V p N n T m O O O W m N O m m m O m m m W m m m m m N m O N I9 A V m m O O m p N V Y W N m V tl_ Np O A13AN A!3 +1J3 11�3 !3 AT t3 13 a f, 5N m O' S t0 Wb WS f, f, !3 O _ d9 N N C m O O O O S O S O S y0 3 J tUJ p i .S 'a N N N N N O y Uy O N nOn S 3 W T C Z D O N D O C v m O a A N n W D m u u u N N W m T $ 3 � 3 T 9 = mm _ N N N N N N N N N N N N N N N C O O O O p m W W W m W W W W W W m O O O O O O O O O O 8 O 8 S 8 D O O O O O O O O O O O O O O O U W Om W O d J m n 5 W O W w N o Z v a -1 D D_ D_ D_ D_ D_ D D ➢ D D_ D_ D_ D_ D C T D C m G) G) G/ O T O m D y 3 S i g A pp i t ; Z Z Z Z A C D Z w e L 9 V V 9 9 9 T 9 9 a r p y D m' ; m m m m o 0 1 0 y m U ll A 71 A �! D A A A A 71 A A D W 9 0 0 O y O 0 p bT Q y co - m m m m m m m m m m m m m m m p y Z ^y -1 M m m y T Z D y O m s m ; r r r 0 . m ; D 3 S 3 S 3 3 m p A G m O m m m A =. < m r T T T T T T T T T T T T T T T m O O yp n 0 0 0 p O M p 9 V V L 9 9 D A O A A A m 0 0 0 A A A A A A A p P A A A A A A Z m W . . m 2 D A < < < < < < < < < < < < < < < O D O O O O m N D D D D D D D D D D D D D D D y 0 0 0 O -i ; Cm1 0 O D D D O O m m m m m m m m m m m m m m m p m 9 1 A p 0 C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 aJi w D r r r v m y 555 � 555555 � 5555 W W W W W W O1 W V1 W W W W W W .Uj y Z p p 0 O O O 0 m N W W W W N W W N W W W W W W N a O W m O 0 m m J p m o m A mm V +o m o u m o+ o o v i r3 � r3 r3 t wr3 woo 0 w c ` ` N O O N i m OO O O O b mb O O O O OO O O O O O 3 T. 0 9 cr d CD SON'i �NmmW uONA NWN OO OO OO m((WV�� WNvbfmN0i oNm�I �ON OO OO OC OO mOO T. N O OU o O O m SmN S+ OSN OSN OON OON 8OON OON iO+0 Oa VN umC NW Co0808wa .0 8888 0 S S OOO . OO O S C O G O O OS SSOO OO OO OO OO OO OO O W UNm O O OWW OOOO O O O O O O O m O 7 CD dO3 rvm CD m 3 N (om V + N W V W b U S P m V O N W W b W U W W b U m b N W W V m + U m O W O O m V W N W A b O bb O S S S SN N w S S SWw Y + O w m b��yy Wf0 NNU Gm O V A W W O W W N W (NO O A V W 10 U OI m fmO tm0 (b0 imp tbO N d L N m W -1 W m U O m W m N N U O W U O f0 4 W O W d s b N IJ W J Ol + U b U m U O fY U N U fD A O b W U �I 0 m O m N W V V V N U V U P J 4t W G O m U W O O O Ol N V N O O O O W O m m W Ip W (O m W W U N U O O O W W W A O O O O N O m Y W N W U U W W m b d W O m W W W W W W W W W W W W m m W W W W W W U W W U U U W W W W m N N N N N N N N N N N N N N N A J J V V V V Y J J J J J V V V m J J O O O O O O O O O O O O O O O O O O O O O O O O O O O U O O m 6 O D D D D D D D D D D D p y D D D D n > D a m m m m m m m m m m m m m m m N D D W 9 W W W W W W W W W W W W W W W W W W W W m Ol W W W W U W W W J W N N N N IJ N N N N N N N N N N U y W > + m W b A W N O m W 2 + m C T O O O O O O O O O O O O O O O N N U Y O m O O O O O O O W U O I9 m I Ol U O V I N V 4N1 a W (WO A N W N (J n P + + + + + + - - + + + + + + + m C 0 - 0 O O O O O O 0 0 0 0 0 0 ry W U P iJ m W m O U N N O (\J m N o CW + aaa + a + + W + a m 9 N N W O b V W N O W zt m o D y 8 W g o 8 8 8 S 8 0 0 o a o y°_ m P D 0 m M 1 A m m $ 3 , 3 r 9 m _ N N N N N pp N� N Noy p N o No p Np p Np p Np o N Np N N N N {N� N N N N p Np Q N p Np �N p N N N N N N N N < � N L N O O (D m V Ol N W w N � T t0 0 N N > N + O (SO Ol N A (nil N f0 � � (W11 A IWJ W m C J V V j V Of An O y 5 .. N � N D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D m me A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T D A A A A A A A A A A A A A A A A F p A A A A A .lTl .lTl A A A A .TTJ < < < G < < << < < < < < < < < < < < << << < G < < < < < < < < G < < < < < m D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D " ~ mm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 555555555555555555555555555555555555 N 41 W N N (/1 41 41 N f/1 N pl tll N 41 4! 4! 41 f� tl� 0 N Vl tll 0 y fn W N 0 0 N N fA (/! V! N 41 tll N W f/1 41 41 41 f/t N (d to N to rn N 41 41 41 41 N 41 l/1 V1 M pl (/1 41 41 41 41 (A f/1 f/1 fA �e m� � m mm m m 0 0 0 0 0 0 0 0 0 0 J J J ` ` ` V J J V O g g000 g aaaa = o aaSaa 8a 8a8a8'aS o= 0 O O O O O O O O O O A 4 Q o O N G O 0 3ID 0T m '—'' 3D Nw ypm HIV r N Ob O ml n pp�� 41 m W 7 O O O O O O O O O O O O O n m 0 ,frnl � N � L N rn A 0 0 0 0 0 V 0 0 0 0 rnJ OW1 d ' � (Q v ° 3Com N W 4l rn m N C O N S trnp 0 �Np N V rn fO fm rn + pJp�� tll Ol N + � O O O O O O O O O O O O O S m O trnJ tOJ VWi � L N rn � O O O O O J O O O O rnJ m Y a N W W m at 0 0 0 0 0 0 0 0 0 0 0 0 0 p O O O O N O O O O ut rn W O Ol p N N g N + � 0 0 0 O O O p O W O J N C A O O O O W O O D O $ $ + V 01 O W A J W L ml OI O O O O + 6 O O O Ip W m m rn m m m m rn rn rn rn rn m rn rn rn rn rn m m m m m rn rn rn m m m rn rn m m m m m m �^ N N N N N N N N N N N N N N N N N N IJ N N N N N N N N N N IJ N 1J N N IJ IJ '9 J V J J J J V J J J J J J J J V J V V V V J J J J J J J J V V V J J V J b m O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B d pq3 D D D D D D D D D D D D D D D D D D D D D D d d m m m m m m m m m m m m m m m m m d m m d d m m m d d d d m d m m b b m m m b b b d m m m m d m d m m m m m m m Y � rn m rn rn m rn rn rn rn rn rn rn rn m rn m rn rn m m m m m m m rn rn rn rn rn rn m m rn m m L N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N W '3 9 J J J J J J J V V V V V V V V J J V J J J J J J V V V V V V V J J J J J T O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N n I� N d Y _ Cr A O m O 3 9 U C) m b oc ro a D � 0 3 y n T 9 3 � m 3 3 T T m � 5m w c N 0 D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D a n V V T T T T V 9 V 9 V T T T T T 9 T V T T T 9 9 U T T T T V T T T m D A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m a m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T m T V T m m T T T m m m m V A m O x V V V V V V m m m m T m T T U D A A A A A A A A A A A A A A A A A A :LI ]1 A A D � D A A A A A A A D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D N m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 555555555555555555555555555555555 V m b �a u mb m m m 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 as as o 3 q aaaaaaaaaagaa i o n N 13 f3 13 !� 13 !3 oNo N !3 13 -0 -0 13 0 N - 13 00 N S y O O O S S O 8 8 0 0 0 O O O O O O O O Y m D O O O O O O O O O O O O O O O O O O O O go A G C O 3 T o cr = m m N N m r w pA� apN8 m 3 IVO .V0 O N O O O W N O N O O O O 0 O Wd N O O O W O wm O O N O O J O b O m (Q v W N O V O W W m 0 0 0 N O N A O N O + O b O O N O O + O O O C ON m m m O W O S N m O A N O O O W O m m O N O + 0 0 0 O N O O m O m O m O N o3 �om q f0 Epp N Y N (JAB O N A (O cp q V V A W V (00 V V m N A W + + G mtJ OS 5t00 Nb S N SW+ S O O ONO OJO b O NO SSNSSOSSS Y O O O p O pm N Gm 0 V V A OI V t00 V V W N A mWm bm ONOOOmN +roO OO < OWO O O u 'O J O O W W m OO O O YC O m O Y m m m m m m m m m m m a m m m m m m m m m m m m m m rn m rn m rn m m m N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N A 6 J J V V V V V J J J J J J J J J V J V V V V J V J J J J J J J J J Y m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m n 3 g mmd md mmmdddddd � m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m a v m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m 3 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N W 3 T m V J V V V V V V V V V V V V V V V V V V V V V V V V V V V J J J V J O O O O O O O O O O O O O O O O O O O O O 00000 O O O O O O O O U n u = m n w m o m = o 0 3 U n m d m m Q N A (a x 'D 1D C A c y Gf Nm a N m m x w y o m 3 m D D r0 u m N x N X D E j m o o S S _000 o oo C u O � O t0 N Q O Z .tlj g m Z i m < e c c c 0 c m o 0 0 6 c B mm m N n m n (� A a m m m D D o cm) D m D o 0 a tl D D m' O :E W tl D D m m y m m m m m m A A (y� 1y11 0 m m (p N T m m O N D J m C P A A + P im C W Bo A N N m v Y pp ND N O O N m i + c a u nm V e a m m m J J J J m m Q Q d O V m r u N Uo f� 4 w om m w y � g A O O S 4 m O O O N W O CoOl O O O tl O O S S OI 4Ni O+ N O O O 0 Q (p CD m 0 � 3 co 3 CD m CD " A d V + N N N N 0 N O O O pd O S S N (VJ O m m AA A m + O O S W W N In OV m m 0 J ml N O yN� tm0 Oml A IJ m Y N V N N m P O p O p O N Vl Q + L T F W O O O N w O fG N N m b mi O O O N O (p W W U C U O O O T W N OI O !n m N N N V V N 0 zC o tl 0 0 o m m m a mm D D i a w a W O p O p O a N N tl� N tli m+ W 'S T (� Oe O O O O O O O O 0 V m N (1 N O a W S + + 0 0 Y m A O = O q O e e N VI tl CI c D � o S o o tl m z a0i C p N N _ S 9 a o S � +s � m N N o 0 0 0 0 y c o a N w N J m C p m R m C m D m A 0 0 0 0 u m T m m :� r m j m n o W ( p 0 Cm p mm m p > m 3r m O K ti D 0 m O O O > > 9 OF O ; m Z m C r 2 , m D r Z O m r m X D OT. X o c z " m 0 x W C O m -1 = Z u ¢� Z m GG) m S G� c C C m_< V W W W 10D V C m m W � m N N m O cm D O w 0 m 2 o 0 0 0 0 o c Er ® f3 P3 N N Ni� N 0, 0 O O O O O O m v O O m O o C O O m e 3 0 p C o m CD D w CD m o m o t0 m 0NCDm N J V N N V J W m N w + V O N + T N C 4 N N N N N N Ol U m q N O W tNO V + V N A A J + F O J J O N N N J N w ro A b' m 0 m n m N o 0 0 0 0 0 T y O O O O O N n i9 3 O N O 0 + + + + + + 0 P = O D O O d u I YIELD(%) � �+ m m ' aamoTm�xcDoTsTc � _ c N c oxzr9N � Ox.P cmm,TrmDy �m�77 ymtim DD<((0� ��W� (DmD rV1 ul ti; ZI.'. *T D0m�41C K2M �C D F x K O m m x 8 O T 3 T z O m<T O Z Z{ >Ozm r N m1OoV xD{ 1O 4 } xvtmi>SnH n OO g y N mt�0-� O x O mocm �z m O mz� w z „ n N m m N Z { N y 8 m � o � 3° m m 2 ^ m m 8 � d' T N + vD n HH HHHHHHHHHHH 9 m m D m _ O T e 2 pp� < O n V O 9 4N J A ++O 4 0 w m O ` 9 C m � � � gqm a 0 mm 8> `�p 8o+F),§ 0 m O _ x Ia' �G N OJi N NOAN�O O�OUmiNO N ti m r m 8 p x 3 m N V N 8 V m>O 0 J O N y E O D + 9 y x H H H H H H H H H H H H H + Z { m N K p p 8 m + a m Z o0 m a < ; D XO ,�" 2 m K +p� 0 N N W+ N +N m O D W+V V (n ��VnnAO +S5O�� AO W 8 O .x DSw,S� � _v°ii5&J�g25oYo� x m D pN�LO{p� 1W0 mBtT A1D8��+ 8N m m O C 2' x . Q�pA�pW� (J (��O pONN((tVO��TpO(t1�rNp+ O x C x C iTIT !OJ (JO WPI f011GN +N Y P n � v m HH HHHHHHHHHHH r dQ D ^ v O D r 9i ., 0 a m z +p + yx x O Z m}p N 8 lmit W yA 0 W W < Ip�QJm m N +O 8 v 8 MITI Oy0 mc , m MW m m O MO YIELD(%) $MILLIONS ^ T m $ m m b+ a + m 8 N a $ O 7 PORTFOLIO (%) N A m m T O O o O O mq 2 r. y 8 k . M, n W C yy C IaY . W W 2c w n 52 m m Q W y m u EEC mpma K m _ g dlistva"5+,8;YYe�lk."�4{7'..ASA mK 8 m maz0 Fn 6 0 m Ion+m N A E 6 x m o m p 9 J m < par 8_ x ar e m ec u © 8 a s y C.mm a N n C mfn O K _u �. .m ._.D_ _ m < r m m o y w 8 Y sv<ts�nviHxj;-� W o x A g c a vs ekM-�, �r'T. .�r"::�?rsfi3'#a5ci:a"y5c w < o x O 3 ga o Z Z g a,�r2et rAtir�z�u�,»Fra�ext[+a<s,zi+t>.r 8 v � O 8 O J i.2.v4.£h. a.&3�h�NS+?kh.:ctxjK%f 5 wL4W;Rt 0 CITY OF PALM DESERT INVESTMENT ACTIVITY REPORT DECEMBER 2000 EXECUTIVE SUMMARY As of 12/31I00, total portfolio book value was approximately $167MM. This reflected a net increase of approximately$221M from prior month due principally to revenue receipts. There was an unrealized portfolio net gain (market value- book value)of approximately$1.4MM, based upon prevailing market interest rates. This was only a "paper" gain since there were no premature securities sales. 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$3M 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$3M DUE TO AMORTIZATION OF DISCOUNTS. "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. IAIF has diversified portfolio(BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180- 540 days. THIS ACCOUNT BALANCE DID NOT CHANGE. "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 DID NOT CHANGE. "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. "AIM Prime MMF Private Class". The City invests assessment bond proceeds (construction, cost of issuance, and bond reserve monies) in "AIM Prime Money Market Fund: Private Class." This$16.6MMM fund invests in U.S. Treasury repurchase agreements, first-tier commercial paper, and master notes. 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$1AMM DUE TO BOND DRAWS. "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. "HiahMark Sweep Accounts". 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 DECREASED BYAPPROXIMATELY$384M DUE TO CITY GENERAL FUND EXPENDITURES. "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 INCREASED BY APPROXIMATELY$5M DUE TO AMORTIZATION OF DISCOUNTS. "Commercial Paper". The City high-grade, unsecured commercial paper at a discount, with maturities of 180 days or less, from Fortune 500 companies and global banks. THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$2MM DUE TO A SECURITY PURCHASE. 3 - c a y to G y 3 W N n y O tCD' i1 w W y m m W m m o Z m y % Z � 3 N cTD co o 0 0 0 Co O m m (Kmi p CD ry a 0 n pb _- N y a a y W N 0 W CD Q Q -p 0 Z O n�i an d o ~ = y ^ � Z d o v, W w m p < FAI -w np] y W � Z _ y m o 3 $ = � N 3 o y O� n C�:.. W d S ^ O y E _ O ^ o G v o 0 2 0 °��' a a m o CD o O Z ry p N n 0 w 0 y ^ N 0 p 0 O. o n � y = � C v p p A W ry y pp ° � v , r Q o « W 0 p o p 3 0 fp p y y y W (D O ^" W N y O. N Q O 1 0 m o n c n _ y o' 3 y O m a ° N ' O o � r D z n m v m n m T � 3 O W M A m n O0 0 0 0 0 0 0 0 o a o 0 0 0 0 0 0 0 o m N zr o v9 <9sn4969691+ EAuA En 69E9 En EnFn4WvA <n <n M O N N W N CN71 OD N O O A n M c0 c0 (o (D cD to to (o V CA 00 O O N � 1 0 V V W W (O W A N O O O O O A C T O O T (Ii A Qo V O A N O O O O V M M PO A (O Tpp V W OJ cc O CD r O_ V V V CD CD w co N 00 O O N d1 N A t0 to W O N O O 00 i i O i O N O n O 3 mmmmmmmmm mmmm mm m m m rz cn cn N to to cn w cn to rn to cn to to to to m to D z n m 0 n n ; % CD | % . [ n } lz § , 0 .. g \ . R / / + ! }/\\ \\\ � n\\\ ' \ �} > z � � n@ C- o-n > , EJ \ � wv & Q) 0) CD C yA � oocl)3 \ _ } ) $ 2 & @ \ m = n m ® � © _ ; 0 9 ' ° © § \ 7CL \ / ) Q . mm ( , 0 \ = , 4 % A -0 E\ \ 4A / _ n , » 2 % \ 2 ^ m 0 £2S ; @A � F 9 ° % ) } 0 — ( § 5 � ma = = 00C) 0 { ( _ M 0Z ) 0 00Mv oo0 / ° k } £ E � CD C 0 § $ � \ a ° ; . osa a 2 n \ ƒ ( � \ f7/ 2 2 i . � .. 0 - _ B m 0 22 m � m ) ) @@22 ) 7 / m0 69 - - - - - - - - ® > 0 to CD (OCO OD _ » o ) , t ) $ 2 ) � § ) ) dd ( / \ ) d ( > 0 r- O lu 3 � O N co co 7 G 7 n 5 m Z A T !A (A 3 o M m O A 0CD O v r D 1 A m n N 3 o m � V 0 z A m G A � m y0 3 � A m A T m ro � ZOr o O O O b9 y A ; C mn O T DO rn y0 A O 3 m r Cl) z D Z A m x m D p ? � < c o o m y m N m O - y m u N w m ? fll A w Sy A m A r p m y N > R � yo Om 3 w n o Dec mr w P 0 O< KKmm 0 n m:. 0 n x n o mn K w 1 a H m o+ 3 m m ^ a cc ~ Z m o A w r'�a Z N m y 0 m a m Cu w z a' E o m � 0 o m � ^ m w Q 3 3 m y fC N C H � A VI A m N N N d m O N A N W O + m m V f0 w O w t0 w m �D m N U C a w N m m A N O 4t m p OI A O G U m o oo V o m o fy.� A Omi 0 < - A N O m 0 O V N N O N 9 m m m m w a $ $ $ o m o o m m � n w 03 a w a c° m Oml w .N u W O m Vm b .�.. nNN ONb 38 8 0 O N S�i Om O O oy V 01 q N N b + i0 imp Ip V W A iO /� Z � m N fwp fw•t O Ol i N N m (dl O q A y m + p i N J N N fp b W N (NJ O b O O ONI + O W N T � O O w 41 A N N m w m m p a° O A Ol N + A N w + N O S 3m w - O N y W + W fJ + fN0 w A + + w U 9 � p N O N w U U 0 01 m m U m p y m � a O < D o a D A W m O 0 3 ~ w w w w w m C D & 0 A w w O b 6p A D 3 ; m 9 m o 'a X N O m b A PI 0 w O m m O A o S m r 3 n GD) m 3 n 9 O 0 Z',� r � O m W J N O m Ol g W N O m N + O t0 Ol N W N m O mp — — ;as - z - C) O 5 5 T N c O eP m x Z 0 0 D D D D D D D D D D D D D D D D D D D D D D D m 2 2 m m m m m m y A A A D ;a A v m v v < O O < O= A D l D M 3 M M M S 3 3 M M 3 3 M M M S 3 M 3 3 3 m m m b N m r r m r r m m m m m m m m m m m m m m m m m m m m m m m 'm -� y 'm z z m x x i i 3 3 3 3 3 3 3 m D D m D D r 0 0 3 i i S S i 3 3 m m m m — — 0 K K T m 7I m 7I T T T T T T T T T TI T T T T T 71 T T N N O O D m m m m 9 9 m m 9 m 9 Q 9 m d V 9 Z Z Z r r A A A A D p D p A D A p D m D m D D A A A A x ,T A > > ; 0 0 < < < < < < < < < < < < < < < < < < < < < < < Z Z D D D D D D D D D D D D D D D D D D D D D D D A T n III 0 0 0 III m 0 0 0 m 0 m m m 0 m 0 0 m m m m a p O O O D D O O O O O O O O O O O O O O O O O O O O 00 0 b t K u D D D Z Z 55555555555555555555555 A 000MF � N N 41 tl� N N fp N 41 N f/1 0 W 41 41 41 41 f/1 41 Vl 0 N 0 ro N W m N 41 N 41 41 N N N 41 N N N Vl 41 41 f� 41 41 fp 41 41 N 41 m, 0 00 00 00 m m O N m mm O A m0 1 1T O O W m m Z! Z! a s a m a mse O m 03 0 0 0 M o m 0 0 °, � p� OI m1 O tT + + N + N c 3 3 N + q fW0 4�I W 0 0 b w INm N W N O � 0 0 0 d m tW0 Ad O� m OI ym� UOi N W m (mp' tVp yN V fN,l S q w N O o o 0 0 0 G Z O m Q O 01 m Of (T O N N p OI O + T V + V + N N V O O O O O O d Of V A O O b O Ot m O b O A 0 b J w N J W O S O + R S S b S W S S S O O O O O O m O y CD D b A N N N N M CD {7 .. Z Ip A N W W OI ml O p� N b N A W �y O O W (O x 1 N OI fp W W b m1 P. W 1m P. A A O w N W Ol 0 1 IWp Ad m1 Nd mbl (b� m�i N m tbp 1Op' I0 Ny V 4Nl S Op1 f00 N V V O N tN0 V G O b m) O N b 01 0 O N N W N O + Ol V + + V + N W J O N + [T W N m 0 J A A A W V W 0 V W O O W 0 0 0 N O G O O V f0 O O 0 0 A O S (O O N 0 N N 0 0 0 m O S + 0 0 0 m O W O O O N O V O 0 O m b > 0 fNJ tWJ ONi Wd O ONI N d N 4 Ol A � O A O O N 0 m W W 0 0 m W b N 0 fJ 0 W O O O W A O O ON 0 m O m 0 J N 0 N q 0 0 + A (p 0 O O m< F b J A O A 0 0 J W 0 V W O O O W 0 O O N O O O O O W A + O O C 0 D O O b O N 0 N N 0 0 0 fp O O + 0 0 0 0 O W O O O W J W W O O m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W 0 0 N 0 0 0 N N N 1J N N N N IV N N N N N N N N N N N N N N �Op w 0 A O O yA6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 o O v0i o 0 o AO o m 6 0 n D D D D D D D D D D D D D D D D D D D D D D D D D D ,0 m m m m d m m m m m d m m m m m m m m m m d d d a m d d d d d d d m d d m d m d d d d m m P d d m d m d d d d P A 3m A + + + + + + + + + + + + + + + + + + + + + + + V N N N L i A t00 S O m O IT 9 0 0 0 0 0 0 0 0 0 0 0 W 0 0 0 0 0 0 0 0 0 0 0 P 0 W N 0 0 0 0 0 y J J J J J J J J V J J J J J J J J J J J J J J qy f0 O! W UI w W A W 3 = O O O O O O O O O O O O O O O O O O O O O O O O O tll P 0 O J O O N n A +O• g S � m � 0 0 U N N N N N N N 0 C m O D O O O O O O O y m GN ON N 2 2 O 2 O� N z D n 0 3 m m X v m o '� m � m 0 3' 3 r v o A a 1 mW N S f00 V 01 (Oil N S N A 41 N + O 1m W V W W A + O f0 fD W A fJ N S Vf N O w A m w n 3 5 m y a y D D D D D D D D D D D D D D D D D D L. D D D D D D D D D D D D D D D D D q c T T T T T T T T T T T T T T T T T T T T 9 9 T 9 T T T V V T T V T 9 9 T m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T T D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D m m m m m m m m m m m m m m m 1 m m m m 1 m m H H H m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m 0 0 0 0 0 0 0 0 o n o 0 0 o n o n o n o n o 0 0 0 0 0 0 0 0 0 0 n o n n 555555555555555555555555555555555555 y y 0 y 0 0 0 0 0 0 W W W W W W 0 0 W 0 0 W 0 0 Ol Ol W W y w W W W W 0 w m< W y y W W W y y y y W y y y y y y y W y N y y W y W W W W W W W W W U1 (/� y m nm m Y i 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 V V V V J J J J J J J J V J J V V cO 0 3 0 0 3 0 0 0 00 o a o o_ 'o o_ o c O m "1 13 13 f3 f3 13 N ;5 6 6 6 l3 6 6 S v S S S S S S o 0 0 Q o o g S S mom O O O C 0 0 0 0 0 0 o S g 25 S � � S o 0 o m m � m rra) o W N 1p — 3 fp� W O O N O O O O O O O W O A A O O O O O W O O O O O W fJ + �Op N N O O W O O O S O S O A O N J O O IN S S S r O O S S S A W w L W N OJ O N N 0 m Q N 3 D 0 3 3 m :3 W pN� m y j f JNp O O N O O O O O O O JW. WNN Jro OVW OGY 1 _ O O W O O O O O O O A O N J S S O O O V S O O O O A W (m A W N V O W W l0 Y fT N m pl O OO mm e�eDD r A + A O S O F O O N O O O O O O O W O A A O O O O O W 0 0 0 0 0 fWo uAi + t Op N N O N N m N m O S W O O O O S S S A S N J S S S S S J S S S O O A W t0 A W N V O W N O m W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W tJ N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 99 V V V J J J J J V V J J J V J V V V V V V V V V V V V V V V V V V V V J 9 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O m O. 3 0 D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m Y m m L d 19 W W W W W W W W m W m m m W m rn m W W W W W W W W m m m W W m m m rn W m N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N y V V J J J J V V V V J J V V V J J J J J V J J V J J J J J J J V V V J J (J 3 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N ll O O m m9 U o D 0 m m V D m Z W c N N N b b (O U b b q c r D V V m J V V V V V V A D V 9 {N� i) w L1 m m m WJ n n 3 r .� T 'o p O c m m m b b o 0 0 0 0 0 9 N + + + + D < 0 S 1 W W W + O O O O - w O b Ol J i W J m U W N Z O '3 N + O > W N + O W V U L m 9 m n n m Z 5 c c T c CA x c v C c fm C C C C C C C C C C C C C C r C D D D D D D D D D D D D u 2 2 2 Z Z Z Z m Z Z Z Z Z Z Z m 0 m u > > O a 3 y ti ti y ti ti ti p, m m m m m m m m m m m m m m 0 0 0 0 O O O D 0 0 0 0 0 0 0 N N N N N N N N N N N N N N o m m m m m m m m m m m m m m mmm m m m m m m D D D D D D D o D D D D D D D b = b ; 3 m ti ti ti m m m m m m m m m m m m ; N N N N N N N N N N N N N N K T T T T T T T m m 'n Ti T D D D D D D D D D D m < < < < < < < < < G G < N D N N N D N D N D N N N N N N N N N D D D D D D D D D D D D C C C C C C C C C C C C C C ~ m m m m m m m m m m m m Am D A zl A .0 A A A A ,ll D + m N m m m m m m m m m m m m < < < < < < < H < < < < < K K N n n n o 0 0 0 0 0 0 0 0 0 ; � 555555555555 q 4 2 S N lN/1 N (NA (N/1 (N/1 (N/1 fgll fN/1 N N N d m pP V a N j a y pN no 1 1 O O J J J J V f`i1 V V V V J J 9 V aaaaa a' 'aS 'aSa o o aaa a oT1m O O (O m fU0 (b0 tU0 b N fb0 (b0 fb0 N S O O O O O S d mM v O O S S (JO J J V J g q U q W q W O O O O O O 0 m m CD yb N N q+ OJI O N N mpq pyf p+ m W m U U N N Ol J T O O S S O O O O V V N O Of O b (nil J O O O N C O CI + ' W OOOOOOOOOO O N O (<p CDO O O O O O O O O O O W O b 0 0 0 O W O D M3 n O y 7 M Z N + N N N O N J J + U pq� yb U N N N Ot N n N A U f0 + b N q b N N q 0 1 n n N g N b 01 g N N L py� b Epp W W mp pn� 8+ i N N Of V g J W V qy (fWyO S N O fWll Ol V V N O W O b W V O O O N C O Y O O O O O O S b A A W tq0 + S qd CNI ONl + S W O N N b S S S O W O m N V J + W + n N + L b O J N V O N N q + T N N N g N p p1 8 O q 1J J O O O N A O d N N OI V N V Of ptl�l tll 10 J J V W V V N O S S O O O S S O N � U V W � + q q + S l0 S N U b S O O O W O m N N N N N rn v, m N m m m m N N N N N m N N Mir fVl� O O O O N W J V J V V V V V V V V V m m S U N O O O O O O O O O O O O 0 6 O y D D D D D D D D > D y y y > y > > > D D ➢ > D m d m d d d m m m b b b b b N L Li m d d d d d d d m d m m d m m N m d m d d d d d d m 3 � d U + tn�t r N b q pW V O O O N A U _ p m A N J J W N O J Y N V V V W N D✓ + + + + + + + + - + � G IT N O O O O O O O g U U U U U U U q W g q q q q q q q q q N IJ N .N N N N N m N N N N N N V V V J J V V V J J V W (y O O O O S O O O V b N N N W W N N O O O O O O O O O O O O O N p Q N O W O S O O O O O [OJ O [OJ 4 > D S o S S 0 S $ $ g g $ g g o q A z T 2 I+p b b b b C m N Q C W W m � N N N N N VI OWj D C mA S ; m 2 u u w w u A m m 9 0 m D v v n n n m m m Gax y o RI a u D A C O 0 m m_ f D n m o O D + + + + 0 W j Q O O o N N N N N C O O c OI V C J m Q b W J VI W Z Y J Q Z 3 ° m 3 m = w N b W 3 c e c c P P P P O O O O S T T S S S C C C C C = C p Y m m m Y p p m z z z z z Y z Y p a m m C N q d m m m m m D D Y D D D D D Y D m ° m m ° _ ° m m m m m ° m m m b 00 � x n n Z z O N �" C C C C C C �1 m z eA M M CD 0 m p q 1O m O O 1 1 O O O O O O O + m m O °, r 3 (D o Q 0 v m N 41 N A �(pJ m yy� V _ ti m = 3 g 4 O O O fml bJ Q •1CbO pA� N 4Ai m bN Cbi W CJ m O O O m A O O O O O o (O Y Q (Q s o o e J (Y O o000o C O ro < �p D A O S O V O J O O O O O O O O m Q CD w O K Q {7 mmA N �+p A ��Wpp V N N 3 V1 N A O 4b1 Y 1 J� m O N V m � m T b N 1 4 m p N p O W L + N N W +1 m + o Y 4 O O O V O J 0 04 + G T m O O m u m A N + A {�Wpp b tp A N m N 1mp (bif N Y m Ol O N A tm0 O O O� (O O A N A m O J W b A A N b CO O O C W N Y O J + N J N m d O O m OI OI f0 N L 0 6 N N O O N N O W 3 O 8 = O IN p b 3 mq qmA pq� Nmp P N N NN VApI VApI Ut 0V7 Vt O SN Is O OOO N C3`l oO A A - - m N N f0.1 G D O �y 0 0 0 0 0 O Y m V D o g $ 1�.. IR g w p d o S D o A n O A 'o m y O O O m E o m [1 m a m � � n S N m O O m m m C C T e m f/1 N m S m m LZ1 GI M, D D v 6 m c c O _ = m A x c m m Z N n G) � x Z W m m G) D C m in m D1 D a o m m i+ m no m o m m i d o O o 9 s a a a m m 0 0 0 0 0 0 e v 0 O r A 3 3 d w d. 3 m m < � y 2 m c N N �C m m p O D S wOi Z °e m u o A f0 N m O V N C m m Y V 0 � O m N_ m T ID F O (n O 1p < m m A O N m N W gyp'6 3 O O 6 Y w m i9 H O p O O O N lZ"1 F O_ O m u o D O m v D m YIELD(%) A to p p pi i �OW T�(7TSC(AC Tr D(Ati W IV T O z �CDfOD O ?pfO r Bmti�O OyrTAmcm9 9yDr Dfyy/ Om < C lmm —KSDNm m mr TD�TNC>o0O Om mD> K�zmz < zm {� t {O OOm0m D ON DaOnn<CO O �m9 _ 0000�-8 MM HW y ,, + 0 v m 0Zz?rnZOc Sm m O N m c N y Z N f/1 $ > o y ron 1 0 D z m ^ 8 O n r W 9 2 $ a ' O O o m m 8 v v c .,Y;,':'€i wan wv+wwwwu+wuww x $ r '¢ 2 w'il i m O z 0 $ xm c a �, A (+� + p� O T 2 a0 ti G'1 V W A AN W N N NOf � n > mOmom �iomi N�e D3 $ m � m s} r poN ni „ =m �V'N� N $ 6 D c z ~ r Hip iR bi fR(R f9(R(R d1 f9 i9 f9 j Z $ c ti Z O y m O m c C D m + p, ++p AAtT CNN NA m $ N m { p �7{] NpNb�(pN�� W (N�NOOpmim�pm� m � N C � � C pWp��ItIVVOA fpmD W Of + m mN 11VJJNOl pqN D j Z e OFA f9 fA fA FA bIHfA(flNN(AN g $ N V O tyNtyv� of Z mN0 O6t V `" 9 $ v _m O a 2 <m $ 8 O = omm v MM m�� YIELD(%) N T o a m N m m m + m + m C z $MILLIONS O a m O = m $ ryr�p-s»uily�y'wyld.a„r,1,".. N a $' mo g PORTFOLIO (%) K o O o $ dw�r.r=t'�ar.'A�;!t�=✓i+.xi.x:� g -R. YW.+.� `)'„Rf7s a e s s s m, 7 N O > X O g �� miss �"n ■ c r v s m 9 W p O �N.. fuC � iV 00 $ .�1M'e,.»ft dx.EF. S,kaG3kSk7Sa'g41V:'&�01ArP < C S yy y N > , T 71 C ]1 Z C <) S a e z, ✓,c; aseF•*, r r.,a p 6 g �e y a o D y m m D C p 3 8 r o m i N y o S a m aa m eh.twk � d�ivh*�3i�T*,ma^ 'A' /.:<a �f m s N a a _ O $ N a N O { o 2 m 4 a 2 G O whq 8 . 8 W,Maz„�a�ir,_%nls REDEVELOPMENT AGENCY INVESTMENT ACTIVITY REPORT DECEMBER 2000 EXECUTIVE SUMMARY As of 12/31/00, total portfolio book value was approximately$137MM (with SLGS). This reflected a net decrease of $92M from prior month due principally to bond draws. There was an unrealized portfolio net gain (market value- book value)of approximately$1.2MM, 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).Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "AIM Prime MMF Private Class." RDA invests tax-exempt bond proceeds (construction, cost of issuance, and reserve monies) in "AIM Prime Money Market Fund: Private Class". This$16.6MMM fund invests in U.S. Treasury repurchase agreements, first-tier commercial paper, and master notes. Weighted average maturity is 60 days or less. S&P credit quality ratingof"AAAm"; Moody's of"Aaa." THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY$2.1MM DUE TO MATURING SECURITIES. "Local Agency Investment Fund (LAIF)." RDA invests City's loan in $13MMM pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio(BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180- 540 days. THIS ACCOUNT BALANCE DID NOT CHANGE. "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"AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$2M 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 DECREASED BYAPPROXIMATELY$383M DUE TO A MATURING SECURITY. "United 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. "HiahMark 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 BYAPPROXIMATELY$142M DUE TO INTEREST INCOME. "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 INCREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF DISCOUNTS. "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 DECREASED BY APPROXIMATELY$2MM DUE TO A MATURING SECURITY. "Medium-Term Notes". The City buys noninterest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT HAS NO CURRENT BALANCE. ■ CD & lb % @ / . \ © z k $ ` CD Z m k $ & m . z . / m �/\ 7�\�\ � / -n /\ § � N) N) xM CD f � � »$ £ \ ' G Q #Q.Q. aa2 « E & D D. # EA � � ) & + + Eu � � o � lr ƒ - < \ k ) � { I E00 }0 @ k � 0W C) aOD k $ 2E & 7 \ riZ Ro 0 0 z ) = s / \ % ■ ! A J $ ? ® Q \ ° \ \f & mot ; 3 \ »# I \ } 0 ) ) , ( � ° \ k { \ � ( 0 � \ § j \ - ( 0 K , - a � ` ° z m � § mJ m ) / ) A / ) J ) ) ) A A) q *m0 2 -- - - 69 49 An in - § § Ro / n0 . . . co ) / ® § mmm m m m \ z e co co CA e = » § m 0 $ ° ° ° CD B \ \ . \ § 7 \ ] # 0 Vol ! ( C 0 k g � ƒ m a f} » ! /\\\ 5\\\ �\\ \/\ k ; \ } � 0 \_ A - V \_ ^ � ` m ƒ CD \ } j� � w\ \ cn \ \ \ � ci I ; CD 0 = \ = 69T 0 ^ Z CD> 2 \ §° 222 - 8 ' CD \ CD a CC C5 - cor— r / CD sQ ® & - \ \ § _ ( \/\ =r § § } \ \ �/ r ; } £ § & k C oa ] $ � ■ 0 3 2 E CD J § 0 CD § m ` = Q ( ## • ; ® � E 0 ` - , ( n ` CD m § m ; � § X .-00 CD § / 2 _ _ kk } @In > 4 \ , , k m ) « « « m § e e mmmm § � 0 City of Palm Desert Portfolio Summary of Cash February 28,2000 Total Cash $180,113,241.82 Less Cash Restricted for: Assessment Districts"(1) $67,217,726.64 Special Revenue Fund(2) $24,178,878.61 Capital Projects(3) $23,031,980.52 Enterprise Fund(4) $ 2,663,480.04 Trust&Assessments(5) $ 1,483,262.71 Library Materials(6) $ 14,627.28 Loan to RDA Ch $31,002,916.95 $149,592,872.75 Less General Fund Reserved for: Equipment Replacement $ 2,494,478.00 Debt Service $ - Loans&Receivables $ 500,000.00 Self Insurance!Retiree Health $ 4,374,795.31 $ 7,369,273.31 Unrestricted Cash $ 23,151,095.76 Total Cash MAssessment Districts ■Special Revenue Fund ❑Capital Projects ElEnterprise Fund ❑Trust&Assessments ■Library Materials ■Loan to RDA ❑Unrestricted Cash ®General Fund Reserved 13% 38% 13% 1% 1% 4% 0% 13% 17% (i)Funds are restricted to Assessment District Capital Improvement, Principal and Interest payments. (2)Funds have been restricted for specific purposes. Example: "Measure A'funds can be used only for street projects. (3)Funds have been appropriated for Capital Projects. Example:$10 Million for Westfield Shoppingtown parking structure. (4)Funds have restrictions on what they can be used for. (s)Funds held on deposit for developers. (6)Funds restricted for library purposes. (7)RDA Loans-No payment schedule has been done. Payments are unknown. Total Cash balance in this schedule is calculated on the cash basis. Investment Committee receives cash balance on the accrual basis. $ 60,110,743.27 Represents cash held by trustee in bonds Palm Desert RDA Summary of Cash February 28, 2001 Total Cash ' 153,555,029.38 Less Cash Restricted for: (1) Bond Funds 116,559,450.40 (2) Debt Service 25,130,617.12 (3) 20%Set-Aside 878,008.24 (4) Housing Authority 4,488,048.46 (5) Trust. 3,729,812.17 150,785,836.39 Unrestricted Cash 2,769,192.99 Chart of Restricted Cash M Bond Funds ❑ Debt Service ❑ 20% Set-Aside El Housing Authority ■Trust ❑ Unrestricted Cash 76% 16% 1 % /0 2 2% 3% (1) Balance includes funds for escrow payments, Bond Funded Capital Projects, and payments for Debt Service (2) Funds used for Debt Service Payments and expendftures for projects under contrail (3) Funds used for low income purposes(transfer of 20%done at year end) (4) Funds reserved for the Housing Authority purposes (5) Deposit held for Pass-Through Agency Total Cash balance in this schedule is calculated on a cash basis. Investment committee receives cash balance on the accrual basis. w w ww � < � w w y y U > W W O 0: 0 - O O E O O o m m m a - E m m ¢ � � a d O O c d N N E 0 m V < Q N q N N N N � N N y N O O O O N 1 O O O O N O N N N O r r r d O F a m a � N r j Q N 7 0 d d N I c c H nt � V1LU r ❑n w co d W E m = J � � Q a � o LL c o O w > > y y m < a y y 0 0 z z d N Z Z w n U U 9 O LL p p it C dE j� y t0 C O O YI y >O >m a r r y m m C r= s s N � N N O O O K ¢ a o O K C O a E n n � c q E E 0 U a m q W N �q O C O _ � o o G q N N N a n n n m is o O g r N a o 0 r q N U a q O q z U) W M C7 y a E d o F. Ch 3 z ,�, o m w > g c a p o J •" N LLI > W w 02 co w N c w 0 ;, w _ , n C q z E q E- N d > r U c r � E a � c o � o LL � R C E E n q m C N O P N a ,no N J U N 0 � 0 N m O O C January 17, 2001 - REGULAR INVESTMENT & FINANCE COMMITTEE MEETING VI. NEW BUSINESS C. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND MONTHLY REPORT FOR NOVEMBER 2000 Rec: Informational Item for the Committee to review. No action required. (REPORT TO BE DISTRIBUTED AT MEETING) G Tinance%Deb BmdleNwPdo \INVSTCOMGnsen-Vicwpd v 0. A W .--' OF, M N: N oo t� t"l`•� 7 1� M oo N �O /W/ �/ e e b / 11 , t'n c'} 00 HY 4� 0 t� 4'� Q •-• N .. 00 �D O o0 Q\ � Z Q Mooc� lnc �n-tom �arn �o �000 rn o � W UJ a a b Q Q v N M r O O W T o. � � 00000 � y LL a cc W OZ iY 1, , Vt t 7 4n - O h b p vl OM1 t��1 7 N O 7 O j, m N C, y �R : ♦+ O .G �O CfG} .r N.,O. N O o0 � h O � O p wi -O N OO 01 M 00 l0 Vl O C bR o0 G}, O� vi cl Vi'b; sD > > �t �r N �+ ry O O 0+ ,0:0 o ON, R O O O O O O O O O O M O Qzj w m � ac 7 b P� C'4 Ih of o d 0 0 0 0 0 0 0 0 � ~ 9 d q ,n C> ro. O fy Oo - 7 '. O U m '�. 7 2 � c Oa1 'C oA0 y a mujt O u C 0 Frr Q' A m m O O ♦+ C4 p k�. w N Q y o wY3 y y d O N > a C. I 'O .. U A w W d b W'. y >o Y p. W E .O OR o ySnz p o " w o Q u .s 8 a Z t 4F PALM DESERT REDEVELOPMENT AGENCY COMBINED STATEMENT REVENUE AND EXPENDITURES COMPARED TO BUDGET 31-Dec-00 TOTAL RDA RDA RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1 Tax increment 33,964,500.00 16,982,250.00 651,899.82 4% 16,330,350.18 2Interest 1,342,380.00 671,190.00 1,654,237.47 246% (983,047.47) Sales of Property 0% - 3 Reimbursement From Other Agencies 1,015,000.00 507,500.00 175,631.34 35% 331,868.66 Other Revenue 127,365.63 0% (127,365.63) Transfers to/from other funds - - 0% TOTAL REVENUES 36,321,880.00 18,160,940.00 2,609,134.26 15,551,805.74 FAV(UNFAV) EXPENDITURES Administrative Costs 820,200.00 410,100.00 251,861.22 61% 158,238.78 Professional Services 876.477.50 438,238.75 75,656.09 17% 362,582.66 6 Property Tax Administrative Fee 546,000.00 273,000.00 - 0% 273,000.00 Cost of Inventory Sold - - 0% - Payments to Other Governmental Agencies 11,612,795.00 5,806,397.50 - 0% 5,806,397.50 Bond Issuance Costs 0% Bond Discount _ _ 0% Interest And Fiscal Charges 9,520,213.00 4,760,106.50 2,808,191.67 59% 1,951,914.83 Principal Payments 3,030,000.00 1,515,000.00 365,000.00 24% 1,150,000.00 0% Capital Outlay - - - 0% - Offce Equipment 10,000.00 5,000.00 2,461.34 49% 2,538.66 Undergrounding Projects 27,827.00 13,913.50 6,499.52 47% 7,413.98 Deep Canyon&Hwy 111 - - - 0% El Paseo Improvements 4,250,000.00 2,125,000.00 3,629.42 0% 2,121,370.58 Parking Spaces 500,000.00 250,000.00 372.30 0% 249,627.70 Fred Waring Dr. Street Improvements 2,148,532.00 1,074,266.00 - 0% 1,074,266.00 1-10 Cook St interchange 250.000.00 250,000.00 250,000.00 100% 4 No.Sphere Infrastructure 1,184,058.00 592,029.00 1,027,584.66 174% (435,555.66) RDA Projects 3,313,582.00 1,656,791.00 - 0% 1,656,791.00 Desert Willow 107,170.00 53,585.00 650.00 1% 52,935.00 Land Purchases/Property Acquisition 4,557,000.00 2,278,500.00 27,700.69 1% 2,250,799.31 Business Enhancement Loan Programs 1,000,000.00 500,000.00 - 0% 500,000.00 Regional Park#4 5,000,000.00 2,500,000.00 - 0% 2,500,000.00 - 0% Transfers _ _ _ 0% - Transfer Out Administrative Costs - 0% 3 Transfer(In)/Out Capital Exp Reimb (920,000.00) (460,000.00) - 0% (460,000.00) Transfer Out Low/Mod Set-Aside 6,680,700.00 3,340,350.00 - 0% 3,340,350.00 - 0% TOTAL EXPENDITURES 54,514,554.50 27,382,277.25 4,819,606.91 22,562,670.34 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements are posted at various times during the year. 4. Land Purchase$will be moved at mid-year 5. 6. Administrative fee taken once a year Y 0 0 0 0 t7 O f�l N Of O O O V N O N O 0 . 0 0 0 O 0 0 0 0 0 0 0 O O OO O t0 O N O O !h 00 0 0 000 0 (D O O N 0000000 O N 0 0 0 0 0 0 0 0 0 0 O N YO tp C M m N M Om N O O YS N O N O h w YD th NN G 0 h yy m N O l7 O f0 O a N O N N l�l N f0 N Vl G o o m o rmi 7 8v r h m LL d m � m a a o _a W 7 O H Sd EL as Q U rn � v Yo v rn a o o ui v cd R U N f^O O fm0 � � tp • V m O cl N N YO M O OJ n N O V N N O O 31 OY (O O N V M YO < (7 t0 0 000 N r CO O V N th fr N d Q O O N M O O O O O O 0 0 O O O O O O O O O O O O O O O O O O 0 0 N 0 m N a a 6 0 O YO V O O O O O O O h O N O O N O W N O a a a a YD W Yb O YD O Y• O N O O Wh O O u f• O O O O W N l7 O N N O O Oct O O N O Oy i0-n O O O O CYI O NNy A N �O N cl O N N M O 49 O O N Of Q 7 m fD O O !� N YO N M Y0 0 O Ol eh T. 9 W C w E a X c o m O W H d o u o' ua E c W m Q ii a a J U K N N E d m a W d L > m W Q w > p y m '03E v U of m rn H W E 7 rn Q tt1 aaii O H m_ t9 oZai' c z Vi_ a 0 U W mod O 0 W m > Za Eoa a- m m y ° c 5 x cm w Uyo < an as waQ O oy cE fa.M .o E o a O �Oy Ea m a o = amc a W ° ca ` ma 0to wm 21 c O O E O o aaz O mca. M Z .% aoU� o > ¢ a Jr A Ix W U r h i r N n O V 0 0 0 M O O O O O O n 0 000 n w m O M 0 0 O 0 0 0 0 0 0 w O O O O co C6 0 0 0 O p� O M 0 0 0 0 00 000 G O V n N (D v N O M Q 0 — N M n � O C .T. M -l0 O (A '� o a v C m L vMi Cf i Z c 5 LO :) i ¢ LL o V co 0 00 M M 4 r v M m U O N N.. N ro Q W N N, � M fn 'Q m Go rn n n a ¢ N N N N m W 0 M Qi co O 0 U M � N n r m n m 0 0 Q d n n N N C1 7 N O N O N C N y?y tD N O M- N N l0 O v 7 OD O co Q `1 O N V N (6 O N (3 CdC C G C N O v O O O W Q) O M M T m th cN0 m m 0; N ad m v_ H O1 ` d � am O to^ O V a 7 d ¢ M cD Q) m y r N O O O O O O O 0 0 0 0 0 0 0 0 O O C N N m o 0 0 o c o 0 0 0 o rn o o M 0 0 0 3 Q Ol O O LO 00 n N O r r O v v CT -o v vO co N o o o a L J co O co V. Q N M h e N m rn n v -in CO in o co cD �n o 0 L M M O) M tC O N d (n M M M N O O C E c 3 y N N O C d rn atom N « F-- C N « o d d N m o rn L c 0 c d 3 ¢ c E H U aQ 0 L r > c > w y C m O m 0 > U) d ( 3 E L N U N .!1 U' .H. U N a p 7 C !q 75 C N ! C Z U ._ N 0 0 C U m 0 C EO N UJ 0 0 �' U y N J o N m N N c no Jw. > dul ¢ O � ii E ¢ O � o. 0 v .0 5N Nm 5mN ~x E o O0 wy - > O E y O J Q ; UdC .=O d N � EWm O oEr x mt > c c `m x m ¢ aam> FU) aa m = a F0y- � w F { PALM DESERT REDEVELOPMENT AGENCY 31-Dec-00 Schedule of Revenue and Expenditures HOUSING FUND 6 YTD (FAV)UNFAV Budget Budget Actual YTD Variance REVENUES 2 Transfer in of 20% Set-Aside 6,711,700.00 3,355,850.00 130,379.96 3,225,470.04 3 Interest 15,000.00; 7,500.00 23,879.03 (16,379.03) Rental Income 56,000.00' 28,000.00 14,672.71 13,327.29 Sales of Property 496,000.00 (496,000.00) 1 Reimbursement From Other Agencies 2 Housing Mitigation Fees Other Revenue 12,520.23 (12,520.23) TOTAL REVENUES 6,782,700.00 „3,391,350.00 677,451.93 2,713,898.07 EXPENDITURES FAV(UNFAV) Administrative Costs 346,550.00 173,275.00 136,454.62 36,820.38 Professional Services 293,305.00 146,652.50 6,899.37 139,753.13 Property Tax Administrative Fee - - Cost of Inventory Sold - 6 Interest And Fiscal Charges 2,639,835.00 1,319,917.50 1,317,391.97 2,525.53 6 Principal Payments 915,000.001 457,500.00 915,000.00 (457,500.00) Office Equipment 5,000.00, 2,500.00 2,500.00 Acquisition Rehab/Resale#7 948,933.00'" 474,466.50 126,228.69 348,237.81 Home Improvement Program 1-6 392,691.00 196,345.50 514.01 195,831.49 Santa Rosa 503,462.00 251,731.00 251,731.00 4 Property Purchases - 77,272.78 (77,272.78) 5 Desert Rose 93,279.00 46,639.50 312,193.97- (265,554.47) 5 Portola Palms Mobilehome Park 74,385.00 37,192.50 125,171.63 (87,979.13) Housing Development 2,000,000.00 1,000,000.00 1,000,000.00 Transfers Transfer(In)/Out Administrative Costs Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 8,212,440.00 4,106,220.00 3,017,127.04 1,089,092.96 Notes: 1 Includes prior year adjustment for tax increment calculation change 2 This transfer is done once a year only. (This is an based on actual $rcvd) 3 Interest is posted with investment maturities or dividend payments 4 Purchase of Rental property on Santa Rosa 5 Includes re-purchases and re-sales 6 Debt Service is due 10/1 and 4/1 of each year ' City of Palm Desert ft Parkview Office Complex December-00 December-00 # % YTD YTD # Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 63,000 $ 68,980 $ 5,880 109.33% $ 378,000 $ 404,968 $ 26,968 107.13% Dividends/Interest $ 2,500 $ 7,716 $ 5,216 308.65% $ 15,000 $ 43,993 $ 28,993 293.29% Total Revenues $ 65,500 $ 76597 $ 11,097 116.94% $ 393,000 $ 448,962 $ 55,962 114.24%, - a f Expenses Professional-Accounting&Auditing $ 5,800 $ 6,371 $ (571) 109.85% $ 34,800 $ 38,226 $ (3,426) 109.85% Professional-Consultants $ 6,500 $ 156 $ 6,345 2.39% : $ 39,000 $ 30,460 $ 8,540 78.10% Tenant Improvements $ Z500 $ 15,200 $ (12,700) 608.00% '. $ 15,000 $ 35,600 $ (20,600) 237.33% Repairs&Maintenance Building $ 9,100 $ 4,303 $ 4,797 47.28% " $ 54,600 $ 39,362 $ 15,238 72.09% Repairs&Maintenance-Landscapi $ Z300 $ - $ Z300 0.00% i $ 13,800 $ - $ 13,800 0.00% Utilities-Water $ 250 $ 105 $ 145 42.08% ' - $ 1,500 $ 553 $ 947 36.86% Utilities-Gas/Electric $ 4,300 $ 3,626 $ 674 94.33% a $ 30,300 $ 31,298 $ (998) 103.29% Utilities-Trash - $ 450 $ 575 $ (125) 127.86% *'. $ 2,700 $ 3,800 $ (1,100) 140.72% Telephone $ 150 $ 119 $ 31 7914% $ 900 $ 872 $ 28 %.87% Insurance $ 521 $ - $ 521 0.00% $ 3,124 $ - $ 3,124 0.00% Total Expenses $ 31,871 $ 30,455 $ 1,416 9556% _ ( $ 195,724 $ 180,170 $ 15,554 92.05% OperaNngincame. . $ 33;624. $ . :.'" 46192 3 ';?.2fii3 . 137 ?'' -, $ T".376 S 268.2;41. $ `7iS15`.:.13625°te .Equipment Replacement Reserve $ 9,639 $ 9,639 $ - 100.00% $ 57,834 $ 28,917 $ 28,917 50.00% 1Vetlrirome $ "23,990 $' 36X3 $ Y2413 Y$2YTi°!a. $ Y 9r442 $ 239 74 .�..Y00,432;,1 172021 Inves42001-invest Parkview Office Complex Vacancy Rate Schedule by Suite t December 2000 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building 100 Hanover(Signed 1 year lease agreement) 2,560 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 JMS Consulting 928 108 Senator Kelly 785 (A two year lease was sent to council for approval) 112 Assemblyman Battin 1,406 (A new four-year lease was sent to council for approval) 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Golf Dimensions 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 City Storage 604 203 Accounting Services 480 205 Coachella Valley Economic Partnership 700 208 Desert Springs Investments 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 217 Joe B.McMillan,.Esq. 775 (A four year lease extension was sent to council for approval) tnves4Vacancy Report Parkview Office Complex Vacancy Rate Schedule by Suite December 2000 Suite Square No. Tenant Feet 220 CA.State Dept. of Agriculture 1,607 222 WMA Securities 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate-604f31,562= 1.91% 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 State of California-Rehabilitation Department 4,396 Total Square Footage 19,629 Vacancy Rate-0.00% 0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate-604/51,191 1.18% Occupancy Rate-50587/51,191 98.82% Note:Parkview Office Complex is 100%occupied in terns of available space. Suite 106 is used as storage for the City of Palm Desert. Invest,Vacmcyy Report City of Palm Desert ` Desert Willow Budget Vs Actual For the month of November 2OOO Budgeted Actual Budgeted Actual November November S Percentage Year to Year to S Percentage Revenue 2000 2000 Variance Variance Date Date Variance Variance Course&Ground S 417,694 $ 405,862 S (11,832) 97.17% $ 1,294,481 $ 1,221,639 S (72,842) 94.37% Carts $ 26,875 S 24,975 $ (1,900) 92.93% $ 98,785 $ 107,223 $ 8,438 108.54% Golf Shop $ 65,544 S 69,293 $ 3,749 105.72% S 264,673 $ 278,336 $ 13,663 105.16% Range - $ 4,000 S 2,608 $ (1,392) 65.20% $ 17,120 $ 4,708 $ (12,412) 27.50% Food&Beverage $ 122,500 S 110,804 $ (11,696) 90.45% $ 452,400 $ 366,999 $ (85,401) 81,12% Interest Income $ 1,500 S 842 $ (658) 56.13% S 7,500 $ 12,020 S 4,520 160,27% T enues 638-13 S 6 d 3 (23.7291 %.28% S 2.134.959 1.990.925 (144.034) 3.25% Payroll Proshop $ 10,910 $ 11,464 $ (554) 105.08% S 47,265 S 52,022 $ (4,757) 110,06% Cart $ 23,395 $ 21,315 S 2,070 91.15% $ 93,130 $ 92,945 $ 185 99.80% Course&Ground S 128,990 $ 147,431 $ (18,441) 114.30% S 592,398 S 585,190 $ 7,208 9878% Golf Operations $ 18,541 S 17,246 $ 1,295 93,02% $ 84,128 $ 93,043 $ (8,915) 110.60% General&Administration $ 40,063 $ 44,006 $ (3,943) 109.84% S 191,202 S 173,198 S 18,004 90.58% Desert Willow Golf Academy $ 4,191 $ 19,912 $ (15,721) 475.11% $ 20,955 S 31,471 $ (10,516) 150.18% Food&Beverage $ 52,699 $ 59,721 S (7,022) 113.32% $ 228,164 $ 272,125 $ (43,961) 119.27% Tota rol 278 779 3 095 4 316 . 8% 1 257 242 S 1 299 994 42 752 1 3.40 Other Expenditures Perimeter Landscaping $ 1,208 $ - $ 1,208 0.00/ $ 6,040 $ - S 6,040 0.00/ Proshop $ 3,894 S 5,655 $ (1,761) 145.22% $ 22,746 S 22,888 $ (142) 100.62% Proshop-COGS $ 30,250 S 37,799 $ (7,549) 124.96% S 116,490 $ 150,880 $ (34,390) 129M% Can $ 19,000 $ 20,924 $ (1,924) 110.13% $ 68,420 $ 90,595 S (22,175) 132.41% Course&Ground-North Course $ 39,902 S 42,782 $ (2,880) 107.22% S 394,225 $ 324,969 S 69,256 82.43% Course&Ground-South Course $ 54,902 S 31,711 S 23,191 57 76% S 366,540 S 242,058 $ 124,482 66.04% Course&Ground-Desert Pallet-N $ 2,000 $ 2,366 S (366) 118.30% S 11,950 $ 7,704 $ 4,246 64 47% Course&Ground-Desert Pallet-S $ 3,575 $ 3,818 $ (243) 106.80% $ 11,625 $ 10,895 $ 730 93.72% Golf Operations $ 2,295 $ - $ 2,295 0.00% $ 12,209 $ 7,006 $ 5,203 57.38% General&Administration $ 63,266 S 62,481 $ 785 98,76% S 297,417 $ 303,011 $ (5,594) 101.88% Range $ 400 S (1,579) $ 1,979 -394.75% S 17,150 $ 9,310 $ 7,840 54.29% Food&Beverage $ 14,647 $ 32,822 $ (18,175) 224.09% $ 54,521 $ 144,164 $ (89,643) 264.42% Food&Beverage COGS $ 39,124 $ 40,069 $ (945) 102,42% $ 144,444 $ 129,013 $ 15,431 89.32% Management Fee $ 25,000 S 25,000 S - 100.00% $ 125,000 $ 125,000 $ - 100.00% Financing/Lease S 20,317 $ 5,651 S 14,666 27.81% $ 101,374 S 59,738 S 41,636 58.93% Total Other Exrwnditurcs S 319.780 309.499 S 10.281 96.78% S 1.750.151 1.627.231 S 122.920 921111=11,11,1 98% Desert Willow Golf Academy Desert Willow Golf Academy $ 11,000 $ 24,605 $ 13,605 223.68% $ 43,750 S 36,726 $ (7,024) 83.95% COGS-Merchandise S (2,400) $ (152) S 2,248 6.33% $ (10,200) $ (244) $ 9,956 2.39% Other Expenditures $ (1,000) $ (3,323) S (2,323) 332.30% $ (11,625) $ (18,737) $ (7,112) 161.18% Learning Center Income(Loss) $ 7,600 $ 21,130 S 13,530 278.03% S 21,925 $ 17,745 S (4,180) 80.94% Operating Income(Loss) $ 47,154 $ 4,920 $ (42,234) 10.43% $ (850,509) $ (918,555) S (68,046) 108.00% Equipment Reserve Replacement $ 40,822 $ 78,912 S 38,090 193.31% $ 204,110 $ 318,380 $ 114,270 155.98% Net Income 6.332 (73.992) (80.324) -1168.54% 1 054 619 236 H82.3161 117.29/ Snapshot of Golf Rounds - Budgeted mo Actual mo Variance Variance% Budgeted td Actual JjUd Variance Variance% Resident 1,126 1,471 345 131% 5,047 4,570 (477) 91% Non Resident 3,511 3,402 (109) 97% 14,793 15,951 1,158 108% Other 100 19 (81) 19% 462 233 (229) 50% Complimentary 263 512 249 195% 1 107 1371 264 124% Total 5,000 5,404 404 108% 21,409 22,125 716 103% Folder:Desert Willow 2001:1 w 001;Financial Statement Page I ; m ) = m \ $ q § } � \ � § ) ) \ w / 7 � � ■ � § | § ) ; ! \ \ \ /} \ \ / 00 ) 02 / \�a a 3 ) ! ) ) $ /* § t # ■ — a � ° N � ! 00 ) § ) � \ / ! ) / ? ! _ 3 ; J « k - Q a V � _!~!` � e¥f!+ • f B - /-` ;}.\{ - ! e .--�.\..\— I � §r;; ! ----.- - ------- - ------------ - --- - _ - - _ , .,.... . ....... . �.„......... . ... . . . . all § ° 5)) { \ » ! � ) § 2 § \ $ � � ! \ § � E � § 0 � \ § Ile � v > vV /a §§ ® § / 0 § a \ k a k � � ] ` ` ) & . � � � qp HEAM 4 / \ ( � A § ■ / 14 E\ f!a E- - � ; ƒ # ! § § / C k . ) B \2 « & ! � SA § - ! _� C5 ) c '9 `n V 9 Q W N r r P N C 2 'nh P d � 5Q O c n c e g mm Y b v N n� mW C N Q > h o� p U <m N _ W 5 O O O 0 o x V r e1 r P N N BQ 6Q �bR e WbR. 6e u Y Y h h h q % P-_ O O m O Q mp a 0 > VB < cececeMEppe 6Q v 6Q EQce ce6nF @2 Y ^mhP a d Y `O C rmN� P G mOPw S. Q C P N r m Y q mVh�00 � EE.� OOONO O' Ar V > Z cesOww * 1 o o v ei h vi c e` 'y 2 ae 0 " �� Haa oCc R z E h m a 4 tR tR BQ bR bR Be �..9 Oi�� Oa m�O1�m N mmmOr T CiG p = •h-•N3 a m P = �r - z° hR 94 > E > V aI� wPm M p grypr 8 ep.� mN �� r ry PMP � vn 0. - `off i'z° FaR1 u �y, FAQ 0 0 g g o F F F F T yO'y�y O yO O ', T J �yp.� yn_O O � 6 01OZ V �Q �h CJZ U � Q Vf Oz V .�. Q Vi z G y G S � O > y m N O m N Q � Z V V lJ' Q 0 r C m N a n H R > p V vrj b O O �d+f p NfV O > •�m V N m „ F 6° om V � tlt BeN 6e � v� Pm e N ,5 000co 0 oc� � 00 FEQ O WO �p 0 0 t7 6 > �. ce ce tR w ce bR ce ae se og0 qq mmmm n X C U > > V u �amr � en "d6a? ,y c oqq ,Q yny vl 72 u mO Q Se V U > om z ce mceee aY pE u 8c a rPm � _ S h r r h g$ r m $ffi m oa z r PmP^ cae w et r3z yr v '� 6f Bebb � tpp a m n O d_ �O ce` � N O > SO �.� ONmNbH n ry M. w fip c d .i r � $ e u •• 00 •••• H C g e 0 U mmry m n g „ S e rvdn � S P _ ss 09 N �O V O QPi _ Nri t� n Oqq N m as `om Z Fyv,m a qq Qq � r m a F F F F } , < h�Z c 3a° �SFSz° c 3a'�$ zo W. 3a' J3FSz° / ) k \ - | | Lq v a , Z 00cz a { 0 � ■ (! ) ; 2 u a ! ) « / ! ! � ] Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- November 2000 Resident 1,471 $ 66,231 $ 45.02 27.22% Non-Resident 3,402 $ 336,909 $ 99.03 62.95% Other 19 $ 190 $ 10.00 0.35% Complimentary 512 $ 375 $ 0.73 9.47% Desert Willow Totals 5,404 403,705 74.70 100.00% Da2001;POS AVG RD Page 9 Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- NOVEMBER 2000 Description No. Of Revenue Avg. Per Pet to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 322 $ 14,490 $ 45.00 7.34/ Resident Fee-Weekday 731 $ 32,886 $ 44.99 16.67% Resident -Twilight 5 225 $ 45.00 0.11% Total Resident 1,058 47,601 44.99 24.12% Non Resident Posted Weekend 509 $ 72,714 $ 142.86 11.61% Posted Weekday 550 $ 63,854 $ 116.10 12.54% IROC Member- Weekday 11 $ 1,056 $ 96.00 0.25% IROC Des. PRTY - Weekday 198 $ 11,880 $ 60.00 4.51% IROC Des. PRTY - Twilight 4 $ 160 $ 40.00 0.09% IROC Des. PRTY - Weekend 157 $ 11,382 $ 72.50 3.58% Wholesale Weekend 56 $ 6,552 $ 117.00 1.28% Wholesale Weekday 67 $ 6,499 $ 97.00 1.53% Twilight 227 $ 18,160 $ 80.00 5.18% Super Twilight 56 $ 2,800 $ 50.00 1.28% Posted Replay 14 $ 1,120 $ 80.00 0.32% Fee Special Event Variable 982 $ 84,553 $ 86.10 22.39% Total Non Resident Rounds 2,831 280,730 99.16 64.55% Other Rounds Junior Walking 19 $ 190 $ 10.00 0.43% Total Other 19 190 10.00 0.43% Complimentary VIP 43 $ - $ - 0.98% PGA Member 20 $ 350 $ 17.50 0.46% Donation 48 $ - $ - 1.09% COD/PDHS 360 $ $ - 8.21% Employee 7 $ - $ - 0.16% Total Complimentary 478 350 0.73 42.83% Total Round (FireCliff) 4,386 $ 328,871 $ 74.98 100.00% Da2OO1;POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- NOVEMBER 2000 Description No. Of Revenue Avg. Per Pet to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 151 $ 6,840 $ 45.30 14.83% Resident Fee-Weekday 261 $ 11,745 $ 45.00 25.64% Resident Twilight 1 $ 45 $ 45.00 0.10% Total Resident 413 18,630 45.11 40.57% Non Resident Posted Weekend 86 $ 12,325 $ 143.31 8.45% Posted Weekday 133 $ 15,584 $ 117.17 13.06% IROC Des. PRTY- Weekday 59 $ 3,540 $ 60.00 5.80% IROC Des. PRTY- Weekend 72 $ 5,220 $ 72.50 7.07% Wholesale Weekend 6 $ 702 $ 117.00 0.59% Wholesale Weekday 9 $ 873 $ 97.00 0.88% Wholesale Replay 1 $ 50 $ 50.00 0.10% Twilight 81 $ 6,480 $ 80.00 7.96% Super Twilight 17 $ 850 $ 50.00 1.67% Fee Special Event Variable 107 $ 10,555 $ 98.64 10.51% Total Non Resident Rounds 571 56,179 98.39 56.09% Other Rounds Junior Walking - $ - $ - 0.00% Total Other - - 0.00% Complimentary VIP 8 $ $ - 0.79% PGA Member 1 $ 25 $ 25.00 0.10% COD/PDHS 12 $ $ - 1.18% Donation 6 $ $ - 0.59% Employee 7 $ - $ - 0.69% Total Complimentary 34 25 0.74 3.34% Total Round (Mountainview) 1,018 $ 74,834 $ 73.51 100% Dw2001;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of November 2000 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 402,261.47 Variance- Favorable Unfavorable $ 97,738.53 Page 12 PalmDesert Recreation Facilities Corporation Income Statement Nov-00 Nov-00 k % Budget Actual Variance Variance Food & Beverage Revenues $122,500 $110,862 ($11,638) 90.50% Total Revenues $122,500 $110,862 ($11,638) 90.50% Salaries $52,699 $59,721 ($7,022) 113.32% Cost of Goods Sold-F&B $39,124 $40,069 ($945) 102.42% Food & Beverage Expense $14,647 $32,822 ($18,175) 224.09% Total Expenses $106,470 $132,612 ($26,142) 124.55% Net Income (Loss) $16,030 ($21,750) $37,780 -135.68% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2001;PDRFC Budget Page 1 �.. r / U � 7' S� j � ' /O_ - �_ =' .� �f� - ��%� - �Ur� rr �� ,1,., �L � � — i r. �, c�- � _ zD �,ce �� ,�Z� �ii� � l .�-�� ,�U. — T � �� /�v � COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 3/21/01 Time 12:00 p.m. Location North Wing Conference Room Mailed Agenda Posted Agenda / Time Convene Adjournment Staff Members Attending Yes No Others Attending Yes No 1 Paul Gibson, Chairperson 10 Dennis Coleman 2 Council Member ;�,Aelli 11 Debra Bradley, Recording Sec. 3 Council Member T(/ 4 Dave Ervin, City Attorney J 5 Carlos Ortega, City Mgr. 6 Thomas Jeffrey Public Members Attending Guests Attending 7 Russ Campbell 12 8 Murray Magloff 13 (J 9 Bill Veazie 14 15 16 17 Follow-Ups/Tasks Assigned I Person Responsible Due Date 1 ' y%V14 7 2 ,d-.L� D e /rf ec Li/ 3 �✓ 4 5 6 7 8 Spoke Mtn (1) Mtn (2) MEETING NOTES Ci /t 12 _ t � ..-ate GUI �o�.�-�•-�-� =�-- .. - ®m OTES M__ sum ��i .! Spoke Mtn (1) Mtn (2) MEETING NOTES Tom. � h?Q � y Aeo w ! T /r 6� Spo a Mtn (1) Mtn (2) MEETING NOTES , C T r I u Spoke Mtn (1) Mtn (2) MEETING NOTES MEETING AGENDA WORKSHEET Meeting Description Investment Committee Meeting Date 2/21/01 Time 12:00 p.m. Location North Wing Conference Room Mailed Agenda Posted Agenda Time Convene Adjournment �. i Members Attending Yes No Others Attending Yes No 1 Paul Gibson, Chairperson 1 2 Russ Campbell 2 3 Carlos Ortega, CM 3 4 Jim Ferguson 4 5 Dick Kelley 0� 5 6 Thomas Jeffrey `� 6 7 Murray Magloff c/ 7 8 Bill Veazie 8 9 9 10 Dave Erwin ✓ 10 11 Dennis Coleman t/ 11 12 12 13 13 14 Items To Be Discussed Person Responsible Material 1 2 3 4 5 6 7 8 Ap r MOM �� MWWA •� ®® MEETING NOTES Lim�� _ ► �� ► , " , E M MR ®m ._ MEETING NOTES iAg Gilv7��r�ll ��= WE�111 �� i! Spoke Mtn (1) Mtn (2 MEETING NOTES 9 AGe y f. 7 J`- c Spoke Mtn (1) Mtn (2) MEETING NOTES Agenda INVESTMENT & FINANCE COMMITTEE Wednesday, February 21, 2001 - 12:00 Noon North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES - January 17 2001 Rec: Approve minutes of the regular meeting of January 17, 2001, 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 Rec: Status Report Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds Action: r . AGENDA - INVESTMENT & FINANCE COMMITTEE February 21, 2001 Page 2 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for January 2001 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for January 2001. Review status of capital projects and cash-flow projections. Action: B. Review Short Term Investments Maturing in February 2001 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes Action: C. State of California Local Agency Investment Fund Monthly Report for December 2000 Rec: Informational item for the Committee to review. No action required. D. City and Redevelopment Agency Monthly Financial Reports for C11y Council for January 2001 Rec: Report and submit to City Council Action: E. Parkview Professional Office Buildings - Financial Report for January 2001 Rec: Review and file report Action: F. Desert Willow Golf Resort Financial Information for December 2000 Rec: Review and file report Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for December 2000 Rec: Review and file report Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 21, 2001 Page 3 VII. REPORTS AND REMARKS Vill. INFORMATIONAL ITEMS A. Investment Policy 2001 B. McCallum Theatre Financial Report C. Ordinance No. 976 - Amending City Code Section 2.16.010, City Council Members on the Investment & Finance Committee D. Rescheduling of April 18, 2001, meeting of the Investment & Finance Committee due to a conflicting meeting on same date E. Committee membership update form for submission to City Clerk IX. NEXT MEETING - Wednesday, March 21, 2001, at 12:00 Noon X. 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 meeting. Dated this February 14, 2001. D'ebfa Bradley, Recording etary I 1 r INVESTMENT AND FINANCE COMMITTEE Minutes January 17, 2001 CALL TO ORDER A regular meeting was called to order by Finance Director Paul Gibson on Wednesday,January 17,2001, at 12:10 p.m. ROLL CALL Present were the following members, constituting a quorum: Mayor Jim Ferguson, Mayor Pro-Tempore Richard S. Kelly, City Manager Carlos Ortega, Finance Director Paul Gibson, Investment Manager Thomas . Jeffrey, Russ Campbell, Murray Magloffand Bill Veazie Absent were the following members: City Attorney Dave Erwin Also, present were: Best, Best & Krieger Attorney Robert Hargreaves for City Attorney Dave Erwin, Redevelopment Manager Dave Yrigoyen, Desert Willow Golf Resort Manager Gregg Lindquist and Recording Secretary Debra Bradley ORAL Mr. Gibson communicated thatthe agenda items would COMMUNICATIONS be kept brief, due to a scheduled luncheon at the City's Corporation Yard, in which staff was attending. APPROVAL OF Upon motion of Mr. Campbell, seconded by Mr. MINUTES Veazie, and by unanimous vote, the minutes of the December 27, 2000, meeting were approved as submitted. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no issues to report, discussion ensued to the next agenda item. Investment and Finance Committee Minutes of January 17, 2001 Page 2 B. Bond Issuance by Palm Desert Housing Authoritv There being no issues to report, discussion ensued to the next agenda item. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for December 2000 Mr. Jeffrey distributed the City and RDA Portfolio reports for the month of December 2000, which were received and filed with no discussion. The Summary of Cash reports for the City and RDA for the month of December 2000 were unavailable. Mr. Gibson noted that the reason these reports are not always included in the agenda prior to the meeting is due to the bank's delay in submitting the necessary information. B. Review Short-Term Investments Maturing in January 2001 A report on maturing investments for January 2001 was distributed by Mr. Jeffries; said report was received and filed with a brief recap. C. State of California Local Agency Investment Fund Monthly Reports for November 2000 There being no issues to report, discussion ensued to the next agenda item. D. City and Redevelopment Agency Monthly Financial Reports for City Council for December 2000 In relation to the City, Mr. Gibson noted that actuals for December2000 were 11.3%forthis year and 10.7%for last year; $600,000 above last year's figures. Pertaining to the Redevelopment Agency, there being Investment and Finance Committee Minutes of January 17, 2001 Page 3 no significant items to report,discussion followed to the next agenda item. E. Parkview Professional Office Buildinas - Financial Reports for December 2000 Mr. Gibson mentioned that the fencing for the State Agency is being constructed at this time. Relative to this, he said that the Water Resources is adding a condition to their lease to stipulate that they will extend their lease for five years if they are given the additional stalls. A brief discussion followed regarding security issues and the installation of surveillance cameras. F. Desert Willow Golf Resort Financial Information for September and November 2000 Due to time constraints, discussion followed to the next agenda item. G. Palm Desert Recreation Facilities Corporation Income Analysis for November 2000 There being no issues to report, discussion ensued to the next agenda item. REPORTS AND REMARKS Mr. Gibson informed that the commercial papers of Southern California Edison (SCE) and Pacific Gas and Electric had been downgraded to junk bond status. Mayor Ferguson asked if the City held any subject paper, to which Mr. Jeffrey responded in the negative. Mr. Jeffrey also indicated that LAIF and the County of Riverside did not hold any SCE paper. Mr. Veazie commended Mr. Jeffrey on his investment expertise in avoiding California utility investments. INFORMATIONAL ITEMS None. Investment and Finance Committee Minutes of January 17, 2001 Page 4 NEXT MEETING The next regularly scheduled meeting will be held on Wednesday, February 21 2001, at 12:00 P.m., in the North Wing Conference Room. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 12:25 p.m. Respectfully submitted, lebra Bradley, Recording S ry G:TwwceO W2Nc ,�sV VSTCOMNfI ESWII701.xm a ¢ N U > o o a E O N a O O I{p O I t0 6 N m 10 n N N m m m O O O O LL h d m v rn m � Or nly, IR N U N N N t7 N m OT q 1 O m V V O d m m m m m ml0 e O M N m 0 O O O a d N N O m O N N m O V O Q m 6O n O O m N m O m m n t7 O O W O N r 10 N r O O N fM O Cl N m 01> O V O 17 m m N n O O N O N d N m O m m m N O m m N m M F m N M N O m g 1� Vf N O O m Q O m N O n O) Of m O N y� m m m o m m m a m 0: N m N N n y V 0 N Cal W d A � N E A LL d Eim o 0 l0 E J M (1) M o cmi n Q v O w q a d i L O LL .�FO y0�QLL 3N ooN O vdmi o n 0 m m rnm v anryi m O V O m m O > �2 mm t$ ^ o IliG ' dNc Cli m`E moNOmOrn m Nm $ f � O a d O OI O N n l7 N O N l7 lI M W W U a N 7 N N N A A C O O � m n c � E c y d d -Y d OO N OP O O O n m O O O N OO n OO Ql m a C d d O m m V O N W m .O j O m O n 0 0 0 O r O 0; N m C m 0 f0 a m O m cotd O O O m O N o O m a D O N O N O m O N (p N u> O O C V tp 6 W N O O m CD O m w nI m —d x � Vl N � � 3 $ m d U c v d n o d o a z m N ` LL N z w o 5 i «� Ycs *0O w m V U r z w d d L a d N O Og z vww ` � < >g > o > vz E d mucd Kd 'aaU< zza = E v'o uc acad iE �U, o C C� ` C Z Q W Q W a S m 0 C Q t 9 d L C d C O d d a r d lA Q J ¢ J f LL'O E ¢ M U LL F S F m a d O q d 0 N U a m ti O > m w O w w OYi O O C U LL J LL U ¢ S 0 C U O. .OJ ¢ 0 f H 0 Q W « N o 0 0 0 0 0 0 0 o N o 0 0 0 0 0 0 Q a_ �m N m N m 01 N N N t Cp m � r � � p Cp N � O G « _ O O O O O O 0 0 O AJ Yn] NNS O (ONbN N 'I ' � NN �IN 'I ' N � nmIN b a N m f n i O N lmm b m YI N fp {p fp m m m m I m m I b b m b b q b b a W W W W W W W W W W W W W W W N W W W W W W W W W W ¢ a a a a a a al a a" a aW a"I f 9 d O b O O b m g N O N O b O O O N M O O O O b a. N 0 b N N m m N N O t'1 (rn�l � N 1m0 trv0 On1 B O O S m m m m b m b m b m b �l1 m m b (O b m t0 b m m VI Ip b 0 m 01 N Q n Cl rn rn N b N b g N N N O m q O O O O O O m O !O fn 10 m m N N N O OD q m 1n b Q b m m O O O O O O m VI m N q p n �p QO O IA (p 1C VI 1� O r N n r O O O O O O m Q q C] S CI b O- N V N q q 0 fm0 1N N (p Ip O O O O O O M Y M f t7 N O O2 N t7 Oi N IV m "0 N N O O O O O b O � q N. b O O O O O N q m (7 N g N q O O g q q q q q q q O O O O O r q b O Q N b 17 m N q q O O O O O O m O O Q ml $ W n Q t7 m n Id (6 M Cl O O N n A O 11 Oi 4'1 O r q g N N m m m m q A b m M b n id O Q Q O b d O f 17 Cf m m g N t7 N N N O Q n m Cf N N O m O q b N r O O r m n q O O O O N N O m N O O O N q W m ry Q w N g Q O O O O O S O q q O O O O O n q N N Cl N N Q Ol Oi N Q N N O N " r � Lu c E W m 0) £ N ' W C7 7 p $ $ $ $ 0 0 $ a $ o m m 0 0 $ $ $ o m $ $ $ 0 e $ $ 0 p N j 0 $ $ S 0 0 0 0 0 �° �° 0 0 0 0 0 0 n r 0 $ $ 0 0 $ $ C .. Co o 0 0 0 0 0 0 o rn m $ o o o 0 0 �o m o 0 0 $ o 0 0 O O O O O O N N O O O O O b O O O O O O O o m q O O O O O N 0 C t1 CI q N q O O O O m O O O q a O O O O O r q IL O .p G �p. ' rm n m n q o 0 0 0 o p 0000 rng gq mq qq oo rnrn a a ^ N fV N N ^ ^ F o 00000 a 'ssa o � d d 0 b A m q o C b q n N O 17 10 IV � N d q m aZk Z Oak > W Q m K U m UO O O CL o O LL N b rn b b a > Y > > > > > > } n o Y Y Y O w O1 Z q Y 01 N m 0 z z z C7 ¢ O W H z ¢ Q a 0 O O O O O O m ' ¢ m m O f/1 m m N m m m m H ¢ u� a u� ug ¢ ¢ ¢ tt z z z z 2 m z E 2 2 w W W w W W ¢ ¢ a a J w a J J J a ¢ ¢ ¢ ¢ ¢ o! F w O O O O Z zZ 2 Z O m (O 41 41 N m N N m O W W W W O y W 000 U O W W W W W W W W W m d U m Q < < < < G 4 < w J w O O O O ¢ w z w O ¢ ¢ ¢ w ¢ w x x x x z W . x z z z t z (n (7 f/I 41 m m m (A m d a .0 J KQ J KQ J KQ J J 0 O d QKJ J J QK J 6 a m w w w w w w w w w V 0 9 O� O+ �O a a s W W a r mzZzz z z z z z a � m 0a as 0 c U c O DO ❑ c etl >Q O J 0 0 0 O O O U LL LL LL LL LL Q OJ q LL LL LL LL W ¢ > O O 0 2 O O a a a 7 a a a > > > W W b0 w b m F b J c Z Z 61 d W E a w Z Q m b o N m d b b b b m f0 n r7 (7 M m m F O N N j m $ tp.1 a e v v v W U n g b W m m O ¢ 1 U U U 2 0 C T w U w p Z < w < W 0 W C/ N m a i N 0 W [�1 X N n N m N X b p a' O � N b LL � O N Z Y � p ¢ O a n n n r r n n n J a n U m J m m m m m m m m p m n p¢p uqi U p N (IJ N N ^ N N N W ^ ' CI (7 C] p W ^ ^ f (7 W N p � F } N R N N �_ Y T O _N a m to ��p f N 17 O 4 O O O O O O O O S O O O K r U N f0 Ih m O n ' P I O Q n ` N I b - .- O LL fD N n II a � W � O O O O O m N O b lD N CI N N O O O O O O O O O O O O O O Q O O O al q m r 0 0 m fD m n r n A n r r n n n n A n n n r A A pp C m Q m m m m O N m m to m N m m m m m m m ¢! m m m m m m m m m N lD N N fp (p N m 'O I IY fp fp IG m I ml N N Y) N N N Ilf N N N N N N N N N N a m m N N m m m m N 0 m m m j m m m Q a Q a aa m m m m m m m m m m m m m a a 8I 8 al 8aaa � aaa � � aaaaa � a a m o 0 0 0 0 oN o 0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 0 0 m q n I^n m m vryi P m m � 'm r r m n A r n r n A r n n n r n A n n n 3 Q N 0 P m m m m mmm m m m m m m m m m m y m �Np N h (Ipp 1D N N Q m tp (p �IpC 00 N N N YI N N N N N N VI N N N YI pN INO OI an{ m {Op t7 S {Np O m b m t7 O m S O O O n O N 0 0 O Y P 001 t"i 1 Q N nl Om N mm Om O m l7 m Imo N 0 O O O O N Om ONl tNI O O O N N N.1 S m y m m N N It O m m P m O N m N at m m m p Ol �p ml m O N N m T OO N n n m m m O] 01 ^ ^ p {p N ] e(pp n P O 0 OI ^ N m m W m m 0 Ol M Of Qi m m m Im Q OI Cl Oi m N N P N N A O m P m r A m A m N m m m m 17 O T O O O O n O N O O O V m b 1'J ^ A pi Ol N N tp Cj mi O y O O O O m O N N O O O N Ip N N m OI > HI N P m A m b m r O 0 N m m (7 N N N Ih m O O m N n O P P b N m to N N A N Q P N n IQ m N m O O f7 17 A C') N m b Q 0 N O O O O m m m m m m P O O^I O N trD e^p m O CD O 0 CD ml W n [m W m m m N ry P N ♦I C d w c W m E,,, W y p = S O S O S O S S S oo S o 0 0 0 0 0 o r m M N o 0 o h N r o o p $ o 0 0 0 0 0 o n o N o 0 o Q P h m C N O S 0 0 0 0 0 8 0 O S S 0 0 O O O O O N m0 S O O O 1N tp 1N (V m C O O O O O O co O O O O O O O r N P P Nn N L c I 6 0 0 S O O O O W INO O O 1 Op O 10m P O Onl Q N trp f J IO y O O O O S O O Qi m m O O O O m N N Q d LQ Y R LL d O �o � tco 'O m m o m m m o o m m o 0 0 0 m Ua � tS i d a o 0 0 0 o a o 0 0 a a m e a a a 0 0 mm m m U U r m Q m O O O V U ^ N mJ N N N N N f0 N N y N 111 N y N N N V U U Z Z ry n N N fn N N N f7 N N fn N Ul N fn m) fm N � JJaa b b gggg3355555555555 t: a s „Q, a ^ V U U U O O O O O O O O O U 0 0 0 O . . . w w O w w w w w w w w w w w w w w w w w O U a a a U U w o 0 0 0 0 2 a a a a a a a a a a a a a a a a a W a a 25 Y > > > > > > > > > > > > > > > > > Z O D U U y y W Z w ¢ ¢ 0 p a a a a a a a a a a a a a a a a a a a O V U U U O O V m m LL LL a LL LL LL LL LL LL LL LL LL LL LL LL LL LL K W W W m y ¢ O W O W W W f m w 0 m f E f E Q QQ Q< QQ g z a m w w w w w w w w w w w w w w w w w z K Q OU W N 4 K K K K K K K K K K K K m a 0 w w w w w n O O w w w W w E ¢ `m O ¢ w n E E E E E E E E E oLLr, c� c� c� c� m3 3 0 ! S aaaa ¢ aa < aaaaaaa ¢ a o F o Q Z C y m m W N n m O N N P N n m N 01 0 o 0 o 0 0 0 a 0 �' o 0 0 0 0 0 o S S o 0 ['f 0 0 m 0 0 0 0 0 0 0 0 ^ V " f f W K N N N N > H W Z Q 0: o W ry U N m W n g dcmi ¢ zD ¢ mm w o � xo o O N ,f 0 O h O a Ci Op N N N p Np p Np O Q IppY 0 a C < � m �O mm m > IL 0 f o _ g .- 00 h � W a f i U e o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a o 0 0 0 0 n n n n r r n n n n n n r r r n n n n r n n n r r n n n n n n n n r n n a n W W m m m W W W W W m m m m W W W W W m W W m m W W W W m m m m m m W W W v ¢ a a a a a a a a a a a a ¢ a a a a a `� a a a a a ¢ a a a a a a a a 0 0 f a m o 0 0 o a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b q r n n n n n n n n n r n r n n n r n n n n r n r r n n n n n r n n n n n N� m Co m m m Co m m OR m m m OR m m m m m m m m m m m W CO (O m m CO m m m m m m N N N N QQN N N N N N N N N VI IN N p N N N �(I N N N N N N N N N N N N VI YI QN N N O m O O 0 0 0 0 P N m N tmp 1m S O 0 0 ONE m 0 0 0 0 S 0 N O 0 0 0 O 0 O O O O n O O O O N S n O N �N O O t0 O O O O O O O O O O O O O W m 0 O N m Q P m m 17 N Q 55 O m O O Ct O O O O Q N m N (p N N Cml O O N Of m O O S O O O N O O O O O O O O O O r O O O O lh O 1n N O t7 n m O O O O O O O O O O O O O m Q N N O m 17 W IO 1�1 N W C dc W « o m E y CD g p pp p pp W G1 d O S 0 O m 0 O S O P N N mp N N O S N ON ON 0 0 S 0 0 0 N 0 0 0 0 O S D �I N m co 0 o r 0000In ld n Q o NN 06 r c o o 0 0 0 0 o c o o o o of C l9 C r m m m o m N a m mi m o N IL Q 'ca Z v O 12 C C OO ' b m o 0 0 0 0 0 0 0 0 0 0 ^ p W A O o $ 0 0 0 0 0 0 0 0 0 ICY N N N iV f`V V u 0 0 0 0 0 0 0 0 0 0 0 0 a r n n n n n n n 4. 0 0 o 0 0 0 0 0 0 0 0 o a a o 0 m m m V m C b A W m N N N N N N N N N N N f/1 m N N N N N N N N N N N N N N N m N N N N N N a01 N N N m N N N N N m m N N m m m N N N N N N N N N N m N m f/1 m N N N N m u 555555533335555555555533555555 u 0 0 u u 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL w w w w w w E w w w w w E w w w w w w w w w w w w w w w w w E w w w E E W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W n a ¢ a ¢ ¢ ¢ a ¢ a a a a a a a a a a a a a a a a a a a < 'a a ¢ ¢ a a a a y # y d g E U _ o 0 0 0 0 a o 17 LL W LL' N � O U Q � a a q OIL n Q � � 6� V b O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O C1 n F ^ r r n n r r n n n n n n n n n n n n n n n n n n n n r n n r n r u r m m m m m m m m m, m m m m m m m m m m m m m m m m m m m m m m m m w N N N N tt) It) N N N N N N N N N N N N N In N N N In N N N N N N N N m N f 6 q m W m q m m W q q q q W q q q W q W q r q q m m m W m g m m m m m q m g q q q q q q q aa8 � aaa � a" aa8 � aaaaaaaa � aaaaa � aaa a8 8 s a m b 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o m m m q n n n n n n n n n n n n n n n n r n n n n r n n r n r n n n n r N 3w m m m m m m m m m m m m m m m m m m m m m m m m m m m OR m m m o 0 m N N N N VI N N N Vf N N N N In yN N N N N It) N N N p N N N N N N N N tNp N O m O O N O O OI O M O N O O m O m O O O m fm0 mm Ol fmp m O O m O N A tm m Y $ O1 N N Ih Q N 0 0 0 O t'I O N O O m O m O O O m (mp mm q01 tp m O O mN O N n m t0 O n O O M O O m 0 0 0 0 Nv S 0 0 0 0 NO A m N O O O O P O Om N t0 y �- P N ("1 O q01 N v1 lD tmy N M n N N mm r 1 C C d W (D pp p W Q� > 0 9 O - 0 0 N O O Ol O M O M O O m O W 0 0 0 m ID 19 W f0 M O O m O N n O O Q (V q O r O O N O O I7 O m 0 0 0 N m O N O 0 0 N V N 00 0 0 0 . 0 b O O C ww N ILL O LL O .00m 3 O m m 0 0 0 0 0 0 0 0 0 0 O O O 0 0 0 0 n n p q q o 0 0 0 0 0 o O 0 0 0 0 $ o g o o m m g O O O O O N O O O O O O O O m U a j O O O O O O O O O O O O SRO O O O O 1 G n n n n r n 0 n n n � � n n 1 a. o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 mRV r q C m' `m 10 m N N m f/I m m m m m m m m m N m N N N N f/1 m N N N fn m vi m N N m � 53530u0uuuu000u000000u000Q00535m U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U N W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W a a a a a ¢ a a a a a a a a a a ¢ a a a a a ¢ ¢ ¢ a a a a a a > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > a a a a a a a a a a a a a a a a a a a a a a a a a a a a LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL N N W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W ❑ Q Y a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a q F F E E E E E C a a a ¢ a a ¢ ¢ a ¢ a a a ¢ ¢ a a a a ¢ a ¢ a a a a ¢ a a ¢ a D.D m N a 5 c> 0 r W m m O m n m OI O N NI N m O N CI N f0 O O O � m0 N Z O > 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ o o 0.0 � N a p o LL W n � 4 a a m m y m m • � � y N N b U Q 7 m m D N N A OD 0 O ¢ o U > C - o m - _ m U b m o 0 0 0 m m m Qo m i ro m O O S o a 0 0 vi e a o a o o l o w 0 o y a a n m a ¢ <I 00 f b b m m m N b m T A A OO O S. 10 O O V � N N Q M M O O O M N A O O O N Y Q N m N O O O m 0 A O M N O N OO Q m m m N T m Q A Q m O N � A O A N O m O O O O Q l7 N r O O O VI Q N IQ N O O O m b N O m N O N N e'! Y Q N th m m 17 m A q m m N 0 m Q Q N `� F- C N W li w C W E *c L N W d > o a o S m a S o 0 0 C�C N O 4 MR Q_ N (p N O O O Q J �./' Q. p N t7 Omf CI Cl 1mb ON N m N m Q O m c A a 0LL 0 .o m H 0 0 to m m v a � d a ry ry ou b b m N O A b C 'I m O O N Ih O O 0 O m fm0 m Q a w > > A w w N N LL N X W 3 W N N w w b b U f F c T N W LL b Z Z b b U 0 0 > > m c 0 0 o b a a a E a N f N N u y Z 5 E m 0 n N N H g 3 O Q N N N N N 0 W � o W J 6 06 o a = f u j O F U = N rc n m � Q � o m U > a _ o d E O h O y W a W 0 0 0 0 0 o O a n W � a 0 f a d 3� N W l7 p m N Cl O II N m r y P t7 N td YI N b m sppy IN'f � fl fh N r � CI pp 0 N I7 O O d! VI Q to m t° N N m Of A n W d N E I, t W d v Q J N C� N N > W a O Z e LL . O O 3 3 n Ots r O O W W O O O O O O d — V a d d p N N C m N 01 W P > W Y m Y U F W h W ? U Z n x 2 7 = O x U U Z U ~ a w Y 3 o w U JO = Z O O d W m W � LL � W LL W m LL O ¢ � c a W a � C W a W V C W E ° o j O O o 0 0 0 N �2 q U N _ C O O r� u Q o N � p U U s' s 0 Z 'nEFim% M'ha"5't3.Yrien•'oe s O N O Q z 0 ¢ O .assxs gun*,.1 m..niG's��ha;Y,enpr,r:tCsa,na s o a yy o m N g 9 O J 6 W O m O ttII11 W A_d_ _ _ } u2:F5e� y+MT'«�,mHIek'sYM`7a z4.1 PeC»iT+,YinR'^.i.fp y0_ _ _. N Q!!//Wll lu��¢i Q o O ¢ O m N W O N O Q 9 jt�iYiY vk t},'V4Yki2YV.t v+lL}h%'.^inR4 s Q �j y6 6 f 02wy m 1 LL O s W ¢ 4 r} N ¢gO¢ O 1= 'nx 4,+�;n�_rsa ar �u,sbuv+kv�a g 6 aF� H ' m o fo Nzz 099 1 8 m N g k. Uo ;W"4„5 M:tY'VtX{1hF+4a N'Nrv..,ni-r';:Y. O x U m S s ~ ¢ p E _ N LE N p p Q 8 Q v v 8 � xp:X'£Cx '+n V'r•�':�?'1:'AN tik 8 O O O O O 0 w Q N C o _ 8 , +N!V,;:t Vdktl"`,tv�.wi4t31T 8 (%) on0:11eioa m LL � LL F p W ^ w o S SNomm$ - W 0131A OOY Q�3 0 � W � — O> o 0 c m ySOt7 m N ��vNqmq W 25�� m cTjmc'Y O ZU mNN pp� aO� �(i thm V I� F g 6 r� N f� Q N h(h O Z U N ei ci co w z W z a8 ¢ a �9 a s NNui ui enNNenNNN knw w p � r � j �gi, smnc�i,asm rn ��°�, N ¢ (¢] � _ Fi p.Nl�B8tC,OO,pp Nth pCp^�}} . UI Nm Y 3.' N 0 CL Q N U 8 N N 0 0 C} O N O D Om m O Q N W z N O� NB8Nc ,a{ f�ktply^ O O . m [[0R p QOmiOs(O(O�<t0 9 n I�In(1 F = ¢ 0 = In 00m0^rJQO i0 r� N nn Q U 0 U e z ^ O LL > 9 n o O w ^ > ga z0 NNrnNNN»viNN» .»N 2 Q v 2 o < F [V (� t+� (V of p W U ¢ ^ O t[I',s88 m c�i,chi,(��s8 `�O,(ipp�i W Oj N Ol Q O m C V.9q O m m w N N Q Q z O J 0 cc O oQ ^ � o� � m ¢ ^ Jm w 0NNN19 tlfNN{919NNtlf NN ¢ p ^ W LLa° U s F W N N , J 6 m N Cl) 2 Z rzu+ D g w o cc 0° c? >`W¢5W,¢ 3 ' UY Ya¢oa00ja 2 U U O S . W o z U Q ¢w wo E¢3a(�ff w� {7��Io ($�4 QzW<y OF G0 �fk � 6 , 3i W J J Q�W¢ J¢ Q O F a N if.• LL i., 4cc Qb'E W >JWU H LL LL U 6 2 N 2w LL U C7 t W U131A CITY OF PALM DESERT INVESTMENT ACTIVITY REPORT JANUARY 2001 EXECUTIVE SUMMARY As of 1/31/01, total portfolio book value was approximately$175.8MM. This reflected a net increase of approximately$8.7MM from prior month due to receipt of increment tax revenue. There was an unrealized portfolio net gain (market value- book value) of approximately$1.8MM, based upon prevailing market interest rates. This was only a "paper" gain since there were no premature securities sales. 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$3.7MM DUE TO MATURING SECURITIES. "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 THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF DISCOUNTS. "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$5.2MM DUE TO INCREMENT TAX REVENUE. "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 DID NOT CHANGE. "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. "AIM Prime MMF Private Class". The City invests assessment bond proceeds (construction, cost of issuance, and bond reserve monies) in "AIM Prime Money Market Fund: Private Class." This$16.6MMM fund invests in U.S. Treasury repurchase agreements, first-tier commercial paper, and master notes. Weighted average maturity is 60 days or less. S&P credit quality rating of'AAAm'; Moody's of"Aaa". THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$3.7MM DUE TO MATURING SECURITIES. "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. i "HiahMark Sweep Accounts". 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$3.4MM DUE TO A PENDING SECURITY PURCHASE. "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). Non marketable. 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 INCREASED BY APPROXIMATELY$56M DUE TO THE REPLACEMENT OFA SECURITY. "Commercial Paper". The City high-grade, unsecured commercial paper at a discount,with maturities of 180 days or less, from Fortune 500 companies and global banks. THIS ACCOUNT BALANCE DID NOT CHANGE. tmn c y y N i 3 N G V o Z � N O N Ut AyW N -+ ; � G) 47TOnn 5 � Dyy TT7 NNNNv7ON m x CD CD CD ° c y --(o ZDDbD N WO Oo Oo � O O p _ 1 C Z. d a O O o 0 �o N N CD O : a o y ->a O n 3 Z 2 T N w N + oCo CD m m o Co 0 d d O , t)f0 N W .� Z .d. ° (p O N N tp C C O .` N C O C j n O 'O CD rrl ID CD CD CbPi CL Cl) p A 0` S n 0 D1 d p n 0 O° N -i O y cOTi 0. a.° � C l: m' p Z 0 0 p Oa m n W .� y z p 0 �. N CD N N ° O n O 0 a w ° " dv — on o j O n c m .N.. N o N 0 m N j ~ 3 O 7 N � D z 0 m z z � c N W W N O O O O m W m 1 0 0 0 0 0 0 0 o c o 0 0 0 0 0 0 0 o A -n N m0 0 zr o 10 En En En En 69 in 69 En EA 69 fn fn En 69 ffi fn En fn T ^' D O N (Jl (T N (T co N O O A 0 (o (D O (o (D CD (o V O O O O CD OD 1 (D V V 000 (0 (pN p. O O O O A C •}� O O m o o O V cp O O O CDV r V CO O m V m A 0 W 0 C O O N (p Co Ln m co toCD W CD N 0 0 i i i CDi O N O 0 O mmmmmmmm mmmm mm m m m rz wwwtomwww cncncf) to cnto to cn cn -y z 0 m ■ n n 0 ) ( BCD ■ » : J k \ ®g 7 \ sRoA> \\\ -no5'mm>\ \ > . \ } � nq £ } � � ; # 7oogAK0 \ � K EGE � a ! g0cS3 A - [ 22222E6e - z ® � ` - 0. 00co � \ ¢ CD ° © ` a -- � } n k ` CD a ° � « \ A -0 a � ) 2 -0,CD 6q0 0 _ ng a / \ / -VA } &® ; A / % } F / ® E .100 9i ( 7 ] } } z } } \ % C } 0 v { \ƒ \ _ ! } ƒ § y } \ } & m r r CD 3Ln \ E 3 7 z c8 ; [ co 0 ! ƒ ® C 2 CT / o kcc ^ • - ` ° \ ° § m z mo ; k ], , , , , „ 0 § § . k - - - - - - - - - M cn , 03 » o , \ ) ƒ \ / � § . 0 \ } \ / \ \ / \ \ / � k ` m 0 d � N N (D A _ � ww� 3 O H 3 c a s CD N CD R. c> m � � 3 o v 0 p v r r `D 3 0 i N' n o O w C 3 3 � w r D Z n m D Z � c m T o Z O j i 0 m n M N a T o) rD- O w y0 n O 3 m ram- - m z D Z n m _ D O ? m m y y m O y m m N m o m 3 m C) c 8 >• N m ; p m r a m m y d my A N y m N y y C O W N �• S Fll OM U< 3M Off„ D Z L1 N l m J ,c F Z G K D 1 < T r Z Q o ac D n O O G A O5 �O n S N ; 1` D c ? Z m r nr O S c J > > z y m y D v m U r m O m N O » C N Z o d � m d J 0 0 � w n d Q � o y N N X W 3 m 7 O O V S N O O W U fD O J A A C a W m N Od - O O t00 > + tW0 NW tN0 N A O O O W U N O 6 N O O W O N O V d U O G O V O U O A N O W J V A f0 O O O O O O D 0 O O C y U U O J O O O N 00 O N I 01 m J N 3 o � a m � a m � a b ip � g A A V N N [NO ONl 001 O T� A W W N U U O 3 y A N N N N 03 D d N N O O A [O M pV " N m J Ud ONl A GQJ O O + O W N W + + 0 V W U O T O N cod p (p tp >> W b1 O U + A U O L N + O e m O N N i.N W L Cl V + V N + fWJ + W + + AO Nd = O N + y N N I Oml (WJ OO A N O O q 9 W N TN O N U A U O U O) U U U d y I J O m pOJ� IL N O N A O f0 00 AJ N O OA N � CI N � O m O o O o D O v D A c y J m O o ; A a D e ; T T = A y O o A DA N m Q0 a m r o S rn D 8 3 0 m a r 0 9 G) f m L O m A A A W W W W W N N N N N N O O S O O S y O O r 0 A xl T 5 C W N 9 N r N c O cQ T a o = o D D D D D D D D D D D D D D D D D D D D D D D D C C T T T T m z z d m m m m w a a a a a a a a a a a a a a a a a a a a a a a a G ~ ~ n m p m m A_ x1 A A m xl A A_ xl x1 xi x] xl A A_ D A xl A x1 _A x) xl x] A D p p D = m m m m m m m m m m m m m m m m m m T m m m m m y 0 ti i Z m 2 2 N y m O D m m a a a a a a a a a a m a a m m m m z z r r x1 A p M xl x1 A m D m M A A m m m x1 m D m D m xl A m mm D 0 0 < < < < < < G < < < G < < < < < < < < < < < < < D r O D D D D D D D D D D D D D D D D D D D D D D D D D D � A z z y 1 * ti ti y -I 1 1 ti ti ti -1 1 1 ti ti -1 1 1 ti H H y N b -1 ti OJ D7 m m m m m m m m m m m m m m m m m m m m m m m m c c 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m A A + D D Z Z 555555555555555555555555 a tAL7 z ow y N n a O p m D N IAp a d 9 N O T N m a O m O O m S O O 9 M m 0 0 n o o m dorm A b m O O Y N W O W A W N W N O O O N A m pO (W1 N D7 O V (li > N N O N O) OI fG O O O O O � O p O O m N (Q W fD J N W dl (p N Q N N A N O O p O O W O (� O O O O O 00 00 p O < V 0 A Ol m O U fD pi W J N (p W W O O m g O O D! O N O S O O O O CD D o .yam. 3 3 ZM� m n O N O N O b N o N + N 3 N A fp A N d A 01 O Of + V M Y 0 m m O p O + O O A N W O W J W A W N m WV NYb OAl mN SA OOl N +b OAI WOt OV N NJ(D fNp Vm OO + N ON O S O < m O) OOO OpS S 0 O d O O S Y > O O S R O O O A N W O W J W A W N !G N pl V A N O O A fO O tJ N [r tp O J N A N N O N OI Ot 0 p + V) O O J W O O < 01 A W dl O V f0 V O + Ol pq + + V + N N N J O A N O O d r m > ONi OWi O tli fbp O W V N tUp U m O O m W O O A O ONl O S O N m r S S 0 VI N N N � N N N N di VI N N N N N N N N N W N N N Ol W N N Of D! b m C� d m m O/ Ot Ot m m et Ot m 0 m W 0 m m W O) m Ot m O + oo xl O O O O O O O O O O O O O O O O O O O O O O O O O N O O O O N 6 O D D � D D D D D D � D D D D D � D D D D D D D D D D D � m m m m m m m d m d m m d m m d m m m m m m d m m m d d m m m m m m d m m d m m m m m m d m m m m m d d d m d O n + , + + + + , + + + - , + + + , + + + - + + + S $ A m 9 N N N O g Q p 9 ti N N N N N N VI N UI N N N N N 41 tll {n N N N N N N N N OI W UI O) N N T a m W O) m 0 0 fD T Ot of W 0 Ol m Ot fA d m dt at fG O et Co m O 10 O (O O �I y J J V Y V J J V V J J V V J J J J V J V V V V J Y (O OI V W (J S W O A yo' o o + + 3 v x A a � 0 3 y 9 v m A N 3 � m o ; 3 ' T T m A A (OJ N � O (WO V U W N U N A W N + O 10 OI J Ol N A + O �d O• O� a W N g N N O b � i m d n 3 d 3 y x y D D D D D D D D D D D D D D D D ➢ D L. D D D D D D D D D D D D D D D D D n c M M 3 M M M M M M M M 3 i M M M M M M M M M 3 i M M M M M M M 3 M M 3 M m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m T T 9 x x 9 T x T T T V T 9 9 x a T D T M T T V M T T M T T T T ]1 ll A A A 31 A A x 71 A A ]1 AM ]) AAA 11 D A A A M MA ZI A 71 A xl A 31 A A x]1 < < < < < < G < < < G < < G G < < < G < < < < < < < G < < < G G < < < < y -DI 1 ;D1 y E 1 y 1 1 -DI y H i >A y y -DI 1 y y -D1 1 -DI y H -Di 1 1 y m m m m m m m m m m m m m m m m M m m m M m m m m m m m m m m m m m m m 0555555555555555000 505555550 0 000 5550 y Ol y N y N y y U f/1 (O 41 4) fA N N f0 t/1 (1) 41 y f/1 tll y N N U N y v! y W N N N m< u � b n m d d i V J J J V V V J V V J J V V J J V J 9 O rn T� S S S S S 08 O S S S o S o O S d w o o m O O O O S O S S O O O S O O S O 0 d do m o ° r m N N W A N a N U O a O N Z p m W t0 A OI N J N 0 G O O O N O O O O O O O N O W A O O O O O U W O O O O O W U N N D7 O w J y N N b N S O S A S O S O O O O a S N > O O O S O m O O O O0 ID O D U + b O + n d+ R O (p 7 K Z K N N 3 y pw W N W 10 A m N m N N Ud < O O O N O O O O O O O N O m A O O O O O (O O O O O O W N N N m O w V N N d S S O L S O O O O O O A O N Y O O S O O NU O S O O O ta0 O N N � INp O + > Ol 0 N N m O O O N O O O O O O O N m O OOO N N d . . O O O L S S S S S S S a S N y O S S S S m N N N N N U N U N N N U N U N N N N N N N N U N N N U N U N U N N N N N y O m 0 0 W fG m 0 Ot b! W W Q fG W O7 W W Ot Ol O! W O W W lA Ot m fb � bl 0 O lP Ot Ot :fl SI J J J J V J J J J J J J V J J J J J V J J J J J V J J J J J J J V V J d o O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O am 3 O O D D D D D D D D D D D D D D D D D D D D D D D D � � ,4 d d d d d d d d d b d d d d d d d d d d d d d d b d d d d d d d d d d d d d d d d d d d d d b b d d d b d d N d d d d d b 3 6 _ o 9 d 1� N N N N N N N N N N N N N N N N N N N N N U1 N N N N N N N N N N N N n� N ^� � N D7 0 W fp O7 m 01 Cp m D✓ O) b! m U OI OI 0 (p OI W m 01 CI 0 O 0 Ol bJ'LO OI 0) Ol Ol m M� y J J J J J J V V J J J J J J V V J J V J J V V J J V J J J V J J J J V w 3 O O O O O O O O O O O O O O O O O O O O O O O O O 0 O O O O O O O O O O H n S O u b d A mQ � $ � �' D mmmmmmm N n 3 w N A Qp ONE G1 4� r tN.l N D A aO O r L U U U U b W C m m o A < A 3 r < 71 A v O O O S O O O O O O O O y + + + + + + + + D q 3 m p n m y 5 C C C C C C C C C C C C C C C �-' r C D D D D D D D D D D D u z z z z z z z z z z z z z z 20 D m m m m m m m m m m m m m m 0 0 0 0 0 0 O D 0 0 0 0 0 0 0 m f/1 l/1 4) U) N In 41 m pl N N N W V1 N A D A 3 m 'm mm m m m m m m m mm ro D D D D D D D ro D D D D D D D m b ; i 3 m m m m m m m m m m m m m m m m Am ]1 An mA �An Am �fA1 �1]1 �,Tnl A 7m! Am m A A 71 A A J! xl A A 71 < A D D D D D D D D D D D D D D m < < < < < < < < < < G 0 0 0 N b N N 0 0 N 0 0 b D D D D D D D D D D D C C C C C C C C C C C C C C m m m m m m m m m m m D 11 U D A A A A D ?1 D D A A + N m m m m m m m m m m m N OVI l0 p 0 'J b U N Ol N m 10 N O N 01 0 0 1 1 O O O O O O O O O O O O O O O O O \ J V \ N t3 13 13 N + f3 N N 13 N O O 2 0 0 C O m OI L a A A a O N N �Np C1 Cl N A O O (D 0 w w 0 w w Ibp tD w 0 w 0 S O O O O 0 Q O T O O V V J J V W W O) OJ W W W O O O O O 0 0 G � o m 0 r N N N A 1ND N N O% N p� I O N Ol V J W W W w + a N + J (O 1 01 t0 N Ol V M V U 0 O O 0 0 0 O 0 A A 0 O 01 O b PPb f0 O ,O O N A d N 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 u u u d a o b n b+ 0 0 o 0 0 O < � > 0 000000 o a o 0 0 $ 00 $ N N m o m of b o o oog' m � �p CD a a 3 (D m .. z .. n N fwll J + m mm� Y m a faJ m + + Y LEI Y F 1 P b N N W N y N b fm a N W J O 10 b 0 p py+ d� w 1 CD G J a 01 0 Ol fD tm�l f0 W U P O) U O W W U N b N a dG_T wU U V U J Of 0 � O O L OI U W A d q O N O b W O O Op� O O O O O O O O Y 0 A N f0 41 0 W N N A O w 0 V + IO 0 0 0 O a C O O O O O O O O U 0P U a 0 U W W ml 10 U A A + + + O O V m a fp N N m N A N b W fp Ip J N 0 O b b 0 p+ N 01 b N mi J J m W (O N W S O (m Y O O O O O O O O Y b U b O + + V O N 0 O O> S V + b O O O O Y N O O O O O O O O U 0 O N W W W U N N 0 O 0 O1 0 Ol ml OI 0 U A U U (l� U U U U U (Jf 41 U b w N N N N U 0 W 0 0 Of 0 Gl PI 0 OO Ol 0 0 � J U U U N O N V V V V V V V V V J J V d 0 U O O O O O U N O O O O O O O O O O O IC 6 O D D D D D D D D D D D D D D D D D D D S, m m d m d m m m d d m m m m m m m m d d m d m m d d d m d m m d d N d m m m m d m d m m m u 3 i d 9 ^ � T A p A A U U W J V J 0 + N do 0 + + + + - + + + + + O N O O O O O O O O p0 U U U U (li U U 0 0 0 U U U U U U U Vi U N dl < O O O O O O NA OpO 018 OO o OO N _AOm NON 0O Om mO 00 00 m VO 00 00 00 00 W0 3C 0NO0pW bm 3 3 w a 3 9 u�i ZI N 0 fp3 N 0 N 1p3 N fp3 13 f3 13 !3 13 d IO m D O S N S S O O S � 8 N N S 0 A A m x mm �o � m c c o K m mm S umi emu �mr w w mmy L. _ N D D 0 0 n x i D N s x J J G a y $ m z < m o 41 m' m' Q m $ n 'm 'm m 'm m' O ti O o 0 o p <p o 0 0 0 o m m V 9 J m p b m J N W = m c - 3 p z N Z N ~ N C P P Q m m m O O Z Z Z Z Z O. D D N N D m m m m m m m m r r m 2 O A N N N N N m m 0 0 ro C C m D D D D m O r 9 m y 1 m m m m m m m m x x m m m m m N N N N N 0 0 p = �m1I �A�nn A A S�DII Z Z N N D D D D D N N N N N C C x 2 Z m m x1 A x A x A Tl m c c o 0 INp N N m m N N m N ] GI im v a im n m m m m m i A > N N i3 � N C p a o o m _ � < do m o a 2. r N m o m N A a m J 3 W y d O G O O A W O m a O O O m e o o m u o $ $ v m $ oe $ $ $ $ $ m G A ' D -� yy 3 3 = m Z A m tD tD O N N V m Y 0 � 0 q j fW A oN lJ A W 1m pm pO yW CI N V N N V m m Pm A Ol L m N b m � N O N V m fmp W N J N OI Y N N N A a a A A A a N m m m OI N m p J ye tNli N O O N ONl O m > m 6 O m m u u m m u a 3 O ,29j U V V V W N N � O A mA M T V N N N W N tT tp AA _ Q^ IA N m N N N A A a N W m Ui N N c a O •� W W A 4 W 0Q N n C1 n d C O N _y m S 9 D O O A N w ,y Q OI N L E C w y tl i! w � s n 6 n = = N w Y 0 0 r w 71 w b 3 C) mr 3 w p C C p Q w = = 2 m A = JnC � n � OJ o a m mD u A w N U N w � m V V O 0 1 Y O o o V T a o s TT m O O O O N N O O y O p O m u u � d• 3 Z N C G N O w onfD m ao W U A + x 1 N + O U ^ 1 U J tJ O U U AU J N U ' W Y O U A + O U 10 Y w N N pUj N A R N pw w n I m a 3 0 0 n m 3 N� I 'v u nw rV + + + = O �a y O O O O q 3 � O � O 9 u � o D O m YIELD(%) a �n Cl W W S ;LJ T pT=CNCT Dp) � m o L mvfn 5t1 0 iN A zD� BmpB D. B D � O JDC?JC ym CKDm�m�m Hm mTm m P D <p> r-araDr>m> kfl Zy CamnaJc Rf�D mm r9 mm Dmy9Cm ;p Om Z mzm<� z Tr tT O0 M-<M . 00- MO D D O(n�p00S�o D D z m OCOcm00 mm 4 O m OOZzm cy O c>m 2 No N m pCzy N NN g p ap D m 2 '� m 0 c> m m y� - 3 c T 2 m n 8 g m > C� m e' m z m D y m to 3 ww ui En v+tn vJ Fn Fn vt tw tww 8 a MT z 4 m C m m ti m y'` Q a 00 Nsm o �' o m om pD lmap mA iO lmNO iD �:Qa m O Q { s y N trymNO(mN� fJ (!(nOn W O yWJa,p�p D 3R 8 m r 3 W 0 L - r J.9=m N V N N N N H m a c y p z 8 c z °z N (J� � O �_�nn ��nn pp�� - 0 0 y D A+(p O A A(nNN bp0� C N c IUU pp .8 8 W D r D_ fAfJJ fW.� VVO NyOyO�A� (m�n p�� Npm p 3eO � D � N(N�A OOo V�OpNj pp �An (Ono ON O yW N W+ N UNi V S N fJ Ol O f 8 N W W n W n W W W H W H N 8 pN��W p�p�� 0�nn> tppNND ONi �Nn tO+�� pV yN W Ovi N 6t „ O N W V. m 9 g Q _m N < m sn ' ma C v N m PEM m YIELD(%) N m O a m m m w m a m gCi P $MILLIONS O m 0 o ao o g' g PORTFOLIO (%) s dN 8 r`xF�ltrleiC=9�e�`tNN�.H)a ih g rd '6� 4- A r C Ley , Ii 41 iY IV D 8 � z rtiW frYtfAY.h vh,.FCY^tixrFha,r O N . y W m ON m 0 8 c rw O • 9 j 'W O C 3� r r D D O Z yy 3 N, r T g �rres firrx;n+'Prn.�,i.rrt.xfrrxisi+.vav-W� m E O a 2 y 0 D F m $ p mO , , O < <4m 2 y < Da m m n N c C tt a m- 4 -- - mmyy W' r4 Z N N S D . . . r . . . ; p P N 8 N m D o , o m Z < o 6 g Y2n' 7W,&I'. hry r•usar:v�ssr 8 , O Q 9 0 8 55!,tir ttaZ rU�E,n&+`Yku hC a�Y�AY}y`;Yrzyo 3 xa ✓!F;�3avw�a4� wa sa�r«¢a�:.iw,za REDEVELOPMENT AGENCY INVESTMENT ACTIVITY REPORT JANUARY 2001 EXECUTIVE SUMMARY As of 1/31/01, total portfolio book value was approximately$153MM (with SLGS). This reflected a net increase of$16AMM from prior month due to receipt of increment tax revenue. There was an unrealized portfolio net gain (market value- book value)of approximately $1.3MM, 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). Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "AIM Prime MMF Private Class." RDA invests tax-exempt bond proceeds (construction, cost of issuance, and reserve monies) in "AIM Prime Money Market Fund: Private Class". This $16.6MMM fund invests in U.S. Treasury repurchase agreements, first-tier commercial paper, and master notes. Weighted average maturity is 60 days or less. S&P credit quality ratingof"AAAm"; Moody's of"Aaa." THIS ACCOUNT BALANCE INCREASED BYAPPROXIMA TEL Y$1.8MM DUE TO MATURING SECURITIES. "Local Agency Investment Fund (LAIF)." RDA invests City's loan in$13MMM pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio (BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180-540 days. THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$16.3MM DUE TO INCREMENT TAX REVENUE. "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 "AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$2M 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 DECREASED BY APPROXIMATELY$383M DUE TO A MATURING SECURITY. "United 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$126M DUE TO INTEREST INCOME. "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 INCREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF DISCOUNTS. "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 DECREASED BY APPROXIMATELY$1.5MM DUE TO A CALLED SECURITY. "Medium-Term Notes". The City buys noninterest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT HAS NO CURRENT BALANCE. C y u y n H z rnw 3 m W m a o H 3 N z Q y M m W N CT A W N -+ W N D D 5 fi g , TiT n N N N N -� � � w x m CD m O Z CD CD CD C° 0 0 0 0 Z (D ° p N n QCp N e � - 44 Q. W 0000 �o V CD C) 0 ... ^ N O O CD y ° z w � 2Z N m N Coa < CCD CD n CC CD CDD Z N ° m m m ^ j 0 .� m o m v � m E ter- oo ° y 1 W O O0 Cr O C _ N N W ' c m n 'DO 3 OO o ° T CD y , ^� O Z oCD � o2mm n Q) v mo C 1 ° m � � 0 W ^ N � ° o a n -0 0 < o ° ^ Co < ti ° z v o � � ° � O o o, N mM N � j3 o Q () a ro C) 2. C Cn N 0 N N ° Cl) O N y .N.. N 7 ^ O 3 may" 9 � r N D z m m D z c m0 z 00 O O A W O O O V O V A M � m 0 0 0 0 0 0 0 o OR o a� o 0� 0 o O 0 � O v� v+ cn sa En F» sA (A us u) (A u En 0 A ? N O V V O C 0 D O b i V O 0 A A c' r UC Ut O i r i O i O N y O l7 O 3 m m m m m m r — cn C/) (A cn Cl) cn z D z 0 m ■ n n / \ ( a ( z k � p # | § g ! : ( \ ° k . K � In m XID 0 D > 000 C \ 0 > T k ; { } n0 DA v \_ ^ CCD ƒ \A � � � � � SOF � \ D0) � / ; a = ( $ © § ° a , 0 - o ° 334 - @ � /f 6s 0 � 0 ^ ® / � @ \ CDa S % « F ® ) ® (2 \ 7 z _ ! © » # _ \ E / = £ ; \ � ) \ [ } { % � � § -Do v-0 ) CD @ Rk ° \ ` ] m / e q / ® a = § % \ } 0 _ ( CD o- 0 _ i = , & G c } / \ § ) f § [ CD ^ 69 } f cn \ 00 _ , , � k ) ) . ) ) ) ) � - . m e « = e = � z m Agenda INVESTMENT & FINANCE COMMITTEE Wednesday, March 21, 2001 - 12:00 (Noon) North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES - February 21, 2001 Rec: Approve minutes of the regular meeting of February 21, 2001, 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 Rec: Status Report Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds Action: AGENDA - INVESTMENT & FINANCE COMMITTEE March 21, 2001 Page 2 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for February 2001 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for February2001. Review status of capital projects and cash-flow projections. Action: B. Review Short Term Investments Maturing in March 2001 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes Action: C. State of California Local Agency Investment Fund Monthly Report for January 2001 Rec: Informational item for the Committee to review. No action required. D. City and Redevelopment Agency Monthly Financial Reports for City Council for February 2001 Rec: Report and submit to City Council Action: E. Parkview Professional Office Buildings - Financial Report for February 2001 Rec: Review and file report Action: F. Desert Willow Golf Resort Financial Information for January 2001 Rec: Review and file report Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for January 2001 Rec: Review and file report Action: AGENDA - INVESTMENT & FINANCE COMMITTEE March 21, 2001 Page 3 VII. REPORTS AND REMARKS Vill. INFORMATIONAL ITEMS IX. NEXT MEETING - Wednesday, April 25, 2001, at 12:00 noon X. 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 meeting. Dated this March 14, 2001. I De ra Bradley, Recording Sec ary ��_:ail,�� •>�• INVESTMENT AND FINANCE COMMITTEE ..`' l` : ,�• . Minutes February 21, 2001 CALL TO ORDER A regular meeting was called to order by Finance Director Paul Gibson on Wednesday, February 21, 2001, at 12:10 p.m. ROLL CALL Present were the following members, constituting a quorum: City Council Member Robert Spiegel, City Manager Carlos Ortega, City Attorney Dave Erwin, Finance Director Paul Gibson, Investment,Manager Thomas Jeffrey, Russ Campbell, Murray Magloff, and Bill Veazie Absent were the following members: One member of the City Council Also, present were: Redevelopment Finance Manager Dennis Coleman, and Recording Secretary Debra Bradley ORAL None. COMMUNICATIONS APPROVAL OF Upon motion of Mr. Campbell, seconded by Mr. MINUTES Veazie, and carried by majority vote, the minutes of the January 17, 2001, were approved as submitted; Council Member Spiegel abstained. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no issues to report, discussion ensued to the next agenda item. Y Investment and Finance Committee Minutes of February 21, 2001 Page 2 B. Bond Issuance by Palm Desert Housing Authority Mr. Coleman updated the Committee on projects and acquisitions that staff is working on. Currently, staff is contemplating on two bond issues, with a 120-day time frame for issuance, approximately June 2001. It was advised by Mr. Coleman that staff was looking into a generic unit of housing, with income estimated at approximately$120,000 per unit. Staff is evaluating the possibilities of generating approximately 5,200 new units of housing, in addition to the 1,000 already owned; this would be over the life of the redevelopment plan. Council Member Spiegel inquired on the Western Center's requirements,to which Mr. Coleman answered that the Western Center requires the building of a certain amount in accordance with the stipulation; RHNA's existing numbers are 3,500; future numbers are 400. To comply with the stipulation, 500 to 600 units must be built between the years 2000 and 2006. Council Member Spiegel expressed concern over the drawback of running out of land, to which Mr. Coleman acceded with favorable mention of acquisition versus new construction. In terms of bond issues, Mr. Coleman reported that in regards to Project Area No. 2, a refund is being calculated with the possibility of doing a taxable to make opportunity for acquiring more projects. Consideration is being given to the issuing of $18.3 million in taxable bonds, in conjunction with refunding the outstanding debt from the 1992 and 1995 issues. Council Member Spiegel questioned the reasoning, to which Mr. Coleman explained that the bond issues are at 1.6 coverage; for every dollar of debt service, the City has to pledge$1.60. Mr. Coleman said that the project area now has characteristics that can cause the pledge to be brought down to$1.25 or$1.20. Mr. Gibson added that as the ratio decreases from $1.60 to $1.20, it reduces the amount of idle cash, in terms of administration costs, which includes interest paid back to the City. Mr. Investment and Finance Committee Minutes of February 21, 2001 Page 3 Gibson noted that the City Manager requested not to proceed with placing the interest into the general fund for a period of seven to fifteen years, in order to get to a position where enough tax increment can be reached and it can begin being paid again. Mr. Coleman advised that this matter would be brought before this Committee for recommendation and, thereafter, be forwarded to City Council in May 2001. After 2007, debt cannot be issued in Project Area No. 2 to the extent that there is growth in tax increment; after that time, the excess increment could be applied as follows: 1) pay administration costs to operate the Agency; 2) use monies to pay City in larger amounts; 3) use for housing needs. Mr. Coleman maintained that by deferring the income, it can be set up so that every dollar extracted up to the tax increment cap can be distributed back to the City. Lengthy discussion followed regarding the market rates. Reference was made to Project Area No. 1. Mr. Coleman advised that staff is considering tax-exempt new money to support some of the projects. it was reported that there has been good growth in Project Area No. 1, with approximately $393 million in assessed-valuation growth. Mr. Coleman noted that when Bighorn is finished selling homes,their estimated valuation will be $1 billion; not all of it will be captured in time for bonding. With respects to older project areas, Mr. Coleman stated that the tax increment cap needs to be reviewed. He added that in the consultant's growth analysis, they included building-permits, associated with new developments, and the entitlement process in terms of Bighorn and other projects. With a compounding effect of 4% added on top of it for the next thirty years, it demonstrates explosive growth; the effect is two- pronged: favorably, there is a projection of$89 million in the year2031; unfavorably,this will cause an excess at the tax increment cap. Mr. Coleman commented that in the last bond issue, year 2003, a portion of the excess increment that cannot be used for bonding will Investment and Finance Committee Minutes of February 21, 2001 Page 4 be set aside in reserves, in the event of hitting the cap. In a second analysis, Mr. Coleman informed of the factors involved with City Hall's reorganization, bywhich the business support department has been integrated into the Redevelopment Agency(RDA),which will affect the size of the bonds. Mr. Coleman pointed out that after going to a bond conference in October2000,disclosure(of information), was heavily impressed upon and, therefore, his reason for being so intensive in his reports today and in the future, as it is the elected official's political careers that are on the line. It was stated by Mr. Coleman, that in the next two months staff will be bringing resolutions to the Financing Authority for the underwriting team (Kinsell, Newcomb and De Dios, and Redwood Securities), bond counsel (Richards, Watson and Gershon), and the financial advisors (MuniSoft); the tax rate is estimated to be between 5.40% and 5.60%. Mr. Coleman advised that preliminary bond documents need to be brought to the Financing Authority and Redevelopment Agency. The main drive in redevelopment for the older project areas will be in the year 2004. Mr. Veazie asked if the legal opinions on a bond issue come in force before the insurance persons are hired, or if they are hired before legal opinion is obtained, to which Mr. Coleman replied that MBIA's legal staff does not give legal opinion. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for January 2001 Mr. Jeffrey made reference to the City's Portfolio Summary, section Cash and Accrued Interest, and footnoted the negative balance of approximately $3.3 million in the bank account. He explained that this was not a bank overdraft. It occurred because Mr. Jeffrey Investment and Finance Committee Minutes of February 21, 2001 Page 5 had bought a security on the last day of the bank- reporting period, and the ending bank account balance had been reported prior to coverage being provided by a related bank sweep account that held $9 million. Mr. Jeffrey reported that the book value of the City investment portfolio for the period ended January 31, 2001, was approximately $175.8 million, reflecting an increase of approximately $8.7 million from the prior month, due to the receipt of tax revenue. A review given by Mr. Jeffrey of the portfolio charts followed. He noted that the City is keeping pace with LAIF. He also noted that the City's one-year treasury bill benchmark was significantly depressed due to the interest-rate cuts. Proceeding to the Redevelopment Agency (RDA) investment portfolio for the period ended January 31, 2001, Mr. Jeffrey reported that the book value was approximately $153.3 million, reflecting an increase of approximately $16.4 million from the prior month, due to receipt of tax revenues;they were allocated between the City and RDA portfolios. Mr. Jeffrey concluded by giving a brief.overview of the portfolio charts. It was noted that in the AIM prime money-market fund, the City has some significant debt service coming up. It was noted that RDA's portfolio yield had dropped more than the City, due to RDA's more liquid-cash position because of ongoing debt-service requirements. The Summary of Cash reports for the City and RDA for the month of January 2001 were not available. B. Review Short-Term Investments Maturing_in February 2001 A report on maturing investments for February 2001 was distributed by Mr. Jeffrey; said report was received and filed with discussion following. Reference was made to the handout regarding securities bought and sold in January 2001. Mr. Jeffrey explained that the City Treasurer's Office had, as a precaution, decided to Investment and Finance Committee Minutes of February 21, 2001 Page 6 sell a Bank of America (BOA) bond with an unusually high yield due to the following: 1) $1 billion of loan losses reported by BOA in 4Q00; 2) BOA being one of the two largest lenders to troubled California utilities ($2 billion in loans to PG&E and Edison), and; 3) market buyers beginning to refrain from purchasing BOA securities due to the foregoing risks. The City sold the BOA bond at a profit, and reinvested the funds in a General Motors bond. Mr. Gibson commented that this transaction was consistent with the City's stated policy which is, in order of priority: 1) safety; 2) liquidity, and; 3) yield. These are universally accepted principles of public investing, as promulgated by the Municipal Treasurers Association of the United States & Canada. C. State of California Local Agency Investment Fund Monthly Reports for December 2000 Mr. Gibson briefed that in addition to the account summaries, included were two pages from an annual report provided by LAIF. One page denotes a synopsis of what LAIF invested last year, and the cash flows; the second page reflects an earning trend since 1957. D. City and Redevelopment Agency Monthly Financial Reports for City Council for January 2001 In relation to the City, Mr. Gibson reported that year-to- date actuals for revenues reflected $14.4 million; last year, the City was at $13.5 million. This reflects an approximate increase of $900,000 over last year, with the major factors being sales tax, business licensing, and transient occupancy tax. Expenditures were under the year-to-date budget. Pertaining to the Redevelopment Agency, Mr. Gibson informed that the tax increment was received for January 2001. Project Area No's. 1 and 4 were significantly higher than last year, in relation to tax Investment and Finance Committee Minutes of February 21, 2001 Page 7 income. The contributing factors were the construction of The Canyons at Bighorn and Indian Ridge. E. Parkview Professional Office Buildings- , Financial Reports for January 2001 The January 2001 report on Parkview Office Complex was distributed and filed. Mr. Gibson mentioned that approximately $1 million will be transferred over to the park fund for the limited use of parks. Mr. Gibson indicated that next year roof maintenance would be needed, similar to the foam application that is being put on the roofs at City Hall. It was mentioned that City Attorney Dave Erwin was presently working on the lease agreement for Duke Gerstel Shearer, which should be finalized in March 2001. Mr. Gibson concluded that the parking stalls should be completed within one month. F. Desert Willow Golf Resort Financial Information for September and December 2000 Mr. Erwin commented that since the inception of the course, the budgeted amounts, in respects to resident and nonresident rounds, are consistently off; since the change in resident policy, the year-to-date numbers have decreased. Another problem that Desert Willow is faced with is the increase in competition. Competitors are lowering their discounted rounds with wholesalers, whereas Kemper is opposed to following same; Kemper's reasoning is that once the rates are lowered, it is hard to increase them again. Mr. Magloff asked whether or not Desert Willow's finances were in the black or red, to which Mr. Gibson Investment and Finance Committee Minutes of February 21, 2001 Page 8 replied that they were in the black relative to depreciation, but not in terms of cash. In answering Mr. Magloffs second question related to the amount the City has invested in Desert Willow, Mr. Gibson answered that including the hotel and timeshare sites, RDA's indications reflect approximately $81 million. There is a separate fund in which $800,000 to$900,000 is received from Intrawest Resort Ownership Corporation (IROC) for the timeshare money of each year. Also, the Courtyard Resident Inn contributes financially, in addition to the property taxes for both of those sites, which goes to the City and RDA. Mr. Gibson reported that revenues for December 2000 were higher than last year; this year was approximately $502,000,and last yearwas$408,000.A brief overview of the report was given. In concluding, Mr. Gibson informed that Mr. Lindquist is no longer employed with Kemper. In the interim of a permanent general manager for Desert Willow, Don Crow and Mark Hoesing are temporarily acting in the stead. In response to Council Member Spiegel's inquiry on the contract bidding, Mr. Gibson informed that this issue will be addressed at the subcommittee on Friday, February 23, 2001. Depending on the outcome, staff would need to go to City Council in March 2001, to report on the pros and cons. In sum, a decision on this issue has not yet been made. G. Palm Desert Recreation Facilities Corporation Income Analysis for December 2000 There being no issues to report, discussion ensued to the next agenda item. REPORTS AND REMARKS Mr. Magloff distributed to the Committee a Desert Sun news article, printed on February 16,2001,with regards to Desert Willow; the article was titled, "Desert Willow clubhouse cited as one of best in nation." Article was Investment and Finance Committee Minutes of February 21, 2001 Page 9 received and filed. INFORMATIONAL ITEMS A. Investment Policy 2001 Mr. Gibson briefed that the final version of the Investment Policy 2001 was adopted by City Council. B. McCallum Theater Finance Report Mr. Magloff inquired on the McCallum's request for funding, to which Mr. Ortega responded that staff was directed by City Council to put together an agreement, by which the City would make the requested funds available to the McCallum; it will be in the form of a purchase of a property interest. Mr. Ortega added that there will be performance requirements stipulated in the agreement, specifying that the McCallum must pledge to raise certain funds. This matter will soon be going to City Council in conjunction with a public hearing. A lengthy discussion followed related to theater business, in general. Various views were expressed by several members. In summation, it was rationalized that, theoretically, unless you have an endowment fund or a millionaire donation, a theater will have a deficit. Council Member Spiegel offered that it would be a terrible mistake to allow the theater to fail, and pointed out that the City is not in a position to run the theater. C. Ordinance No. 976 -Amending City Code Section 2.16.010, Cily Council Members on the Investment & Finance Committee Reference was made to the new ordinance, with the main revision being that it only requires two, un- specified City Council Members to be Committee members, rather than specifically designating the Mayor and Mayor Pro Tempore. Investment and Finance Committee Minutes of February 21, 2001 Page 10 D. Rescheduling of April 18, 2001, Meeting_of the Investment & Finance Committee Due to a Conflicting Meetinq on Same Date Mr. Gibson informed that due to a conflicting meeting (a Senior Awards luncheon) on April 18, 2001, the Committee's April 2001 meeting needs to be rescheduled. There was a concurrence to reschedule the meeting to April 25, 2001, at noon. E. Committee Membership Update Form for Submission to City Clerk It was relayed that the City Clerk's office needed to update their committee member records, and was requesting that the Committee members complete the form contained in the agenda. NEXT MEETING The next regularly scheduled meeting will be held on Wednesday, March 21, 2001, at noon, in the North Wing Conference Room. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 1:15 p.m. Respectfully submitted, `6A � De a Bradley, Recording S etary PALM DESERT REDEVELOPMENT AGENCY COMBINED STATEMENT REVENUE AND EXPENDITURES COMPARED TO BUDGET 28-Feb-01 TOTAL RDA RDA RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1,5 Tax increment 33,964,500.00 22,643,000.00 19,477,693.86 86% 3,165,306.14 2Interest 1,342,380.00 894,920.00 2,064,655.16 231% (1,169,735.16) Sales of Property - - - 0% - 3 Reimbursement From Other Agencies 1,015,000.00 676,666.67 238,314.00 35% 438,352.67 Other Revenue - - 119,025.00 0% (119,025.00) Transfers to/from other funds - - - 0% - TOTAL REVENUES t 36 321,880.00 24,214 586.67 21,899,688.02 2,314 898 65 FAV(UNFAV) EXPENDITURES Administrative Costs 828,200.00 552,133.33 471,266.12 850% 80,867.21 Professional Services 1,060,018.00 706,678.67 326,215.59 46% 380,463.08 6 Property Tax Administrative Fee ` 546,000.00 : 546,000.00 577,543.00 106% (31,543.00) Cost of Inventory Sold - - - 0% - Payments to Other Governmental Agencies 1.1,612;795.00 7,741,863.33 1,181,142.78 15% 6,560,720.55 Bond Issuance Costs 0% Bond Discount - - - 0% - Interest And Fiscal Charges 9,520,213.00 6,346,808.67 2,814,691.67 44% 3,532,117.00 Principal Payments 3,030,000.00 : 2,020,000.00 415,000.00 21% 1,605,000.00 i 0% Capital Outlay - - - 0% - Office Equipment 10,000.00 6,666.67 5,415.55 81% 1,251.12 Undergrounding Projects i 46,437.001 30,958.00 6,499.52 21% 24,458.48 Deep Canyon&Hwy 111 j - - - 0% - ElPaseolmprovements % 4,250,000.00 2,833,333.33 15,490.29 1% 2,817,843.04 Parking Spaces 500,000.00 333,333.33 - 0% 333,333.33 Fred Waring Dr.Street Improvements 2,148,532.00 ; 1,432,354.67 1,373.49 0% 1,430,981.18 1-10 Cook St Interchange 250,000.00 250,000.00 250,000.00 100% - 4 No.Sphere Infrastructure i 1,184,058.00' 789,372.00 1,177,269.57 149% (387,897.57) RDA Projects 3,313,582.00 2,209,054.67 - 0% 2,209,054.67 Desert Willow 113,970.00 75,980.00 4,650.00 6% 71,330.00 Land Purchases/Property Acquisition j 4,557,000.00 3,038,000.00 393,638.41 13% 2,644,361.59 Business Enhancement Loan Programsl 1,000,000.00 1 666,666.67 - 0% 666,666.67 Regional Park#4 t 5,000,000.00 3,333,333.33 - 0% 3,333,333.33 0% Transfers - - - 0% - Transfer Out Administrative Costs - - - 0% 3 Transfer(InyOut Capital Exp Reimb (920,000.00)I (613,333.33) - 0% (613,333.33) 5 Transfer Out Low/Mod Set-Aside 6,680,700.00 4,453,800.00 3,895,538.77 87% 558,261.23 0% - TOTAL EXPENDITURES 54,731,505.00 36,753,003.33 11,535,734.76 25,217,268.57 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements are posted at various times during the year. 4. Land Purchase$will be moved at mid-year 5. 20%Set Aside included here,shown as transfer out 6. Administrative fee adjusted if needed on second TI pymt. OA000 O Ai b00 O 4J O O N O a 01000 M, 0000000 O Ni O Oj (O 0 66 O ((l Of O O O M O Ol 0 0 Q] O O O O C O O O (O N Ol W N N N" N N V V �{ M O Cl! (O (O m 0 n O) (p (D N O ^ O n y M N U) 0 Z m coi , o � LL 0 n ni o o o LL d M �I a o a4 0 V LL ¢ M` N N N? W p w O O IL Q m m rn m: F S m IL a ¢ Q U m o mi Q N 1n N A I AND r N 11� N y O O OI M � N (O 0( N yy {LO m N W Ri N ? r GNO� w d a I O N T O ((J N O N. (A N� (O M It Ill ((1 N �f V NI O N A r t W W ' C on'i (MO vi ui! (6 r vi(6 e7 �i LL ¢ w N Ni 'Q M OD`. U O-O O O O OI O O O O O O O O 0 0 0 0 0 a O O' IV Z 1 OOOGC O: O (O � MCA � Opp O OJ fV 000 0 � 0 � �J 00 o O M w a ,a M Cl! o o v o o ui o o In m o 0 0 0 n! N (A r N b O f0 O O N O yy Ol M A 0 0 O [D:e (D to 0 41 N (!l N M 0 0 u m NI V N .- M V A Z y Ni W 0 IL X C E 09 0 E yo u m 5 a j tea a=i m o' ET _ `3 E d W a1 Q ti a a> J o K w W C y E NO j L'.. K a w a. N ? d o d m u a d > w m 4' H d p w m o ` E m ' o f m m H p[ OC E 7 m m '� LL M a� M �n d °c� Tn 'n o G O ii w o Z E to E a c 2 c p{ 3 m .�0c E U 3 w w d ,c m w U y Q o o c > E a g d o o L W m a 5 o a C cma n d C h > h x = c o N O .� o o N LL a 0 w L d a C d H 7 in ° ~ A (mi 20 m c 9 o rn LL m c o O —0 Q Q u w e �' o n' O h 'c uNi `0 z ',e c aoi a m` °' o d m m O d N O 'x y a"i E t O 'E"`' a H 0 0 7 o W a LL _ Z LL' D J (L y c c c z ,� m d .. z 9 0 0 o y m m m > ~ m W 0 a ¢ LL a U .a F w x m m C w U tp000000 mi o omoono oon rof co v o 0 0 o O ry' o 0 o r� o o tp o D o n ry rirnoaoo o ! otri thNoo 0 oom t vttOp. t°'o o i°_ tb C : O r V_ O t0 C m r 7 tD O N 1� of O m V V N N N E O a M '. 0 0 m N N CS to i O 0- O p' V Q L fD (O Z C O M LO N N. m ¢ LL W V O O O` O O M O t01 O V tT C? O th O O) m O N N N ! O a W c m N F a r n( Ili r ¢ r a a)! N N Ot! W N NI MO 0�9� O N N� U M W N m' N m 0 m m c n a tp! O m N N fp LO IL ¢ N 0 O I 3 >� o0 0'' ooao too o . I V o0 0' oor tyo m �_ C m N 4]F N N N O cD V U N m M t0! 'T w a 0) O N m N m m7 N;. a O N Q ` O NN N, a � Ori t0 N '. R� r w d ¢ to v O l t''i d C mp, m o o M Q K V O O a o] v O W to 0 m Co. M N' n1 tO -11 m 22 OND m M O O (p N d 7 a ¢ O N Ri M Obi 'IT ^I y d N N. N �i[ c a/ > L OOOO OOY O� OODO0000 O O' C d W 000000 O C. C) 0 O O Q m -� 000000 OI 000 t000 K) O p cV' 3 0 0 O O O O m O O O t0 O O to! O'O 1� N O -h r U)t (V 00 O V F L tt0_ to 1 y p IL N p .._. i ....._. 0 C m cCD 3 N m H m m m C p w :o C m 3 ¢ v m E w O a¢, `` 2 t L_ C > C m > tL w N m - m N C _ Eo z y 0 a"i U` 4 O N a O .0 'c " LL p Z U ._ 0 m w C U to > �c m o 0) m aZi ¢ L d _ m Z 3 c d y c mtO O cii E ¢ O -p� ca m Q E d o m m ° m 'o a m 5 x m ay > m � o � ¢ a Oc0 W E .N Nm c N 0 a' m ate. C N N y O N d m m m 0 0 2 cx d °—�� E L ~ c E o o E.c c .� m m m ~ x m w PALM DESERT REDEVELOPMENT AGENCY 28-Feb-01 Schedule of Revenue and Expenditures HOUSING FUND 8 YTD (FAV)UNFAV Budget Budget Actual YTD Variance REVENUES 2 Transfer in of 20%Set-Aside 6,711,700,00 4,474,466.67 3,895,538.77 578,927.89 3Interest 15,000,00 10,000.00 24,732.00, (14,732.00) Rental Income 28,000,00 18,666.67 19,443.00 (776.33) Sales of Property 470,000.00 313,333.33 496,000.00 (182,666.67) 1 Reimbursement From Other Agencies 2 Housing Mitigation Fees Other Revenue 12,702.88 (12,702.88) TOTAL REVENUES 7,224,700.00 4,816,466.67 4,448,416.65 368,050.01 EXPENDITURES FAV(UNFAV) Administrative Costs 346,550.00 231,033.33 192,170.37 38,862.96 Professional Services 328,40500 218,936.67 26,399.19 192,537.48 Property Tax Administrative Fee - - Cost of Inventory Sold 6 Interest And Fiscal Charges 2,639,835.00 '. 1,759,890.00 1,428,466.31 331,423.69 6 Principal Payments 915,000.00 i 610,000.00 915,000.00 (305,000.00) Office Equipment 5,000.00 i 3,333.33 3,333.33 Acquisition Rehab/Resale#7 325,000.00 216,666.67 126,643.71 90,022.96 Home Improvement Program 1-6 392,691.00 261,794.00 1,028.93 260,765.07 Santa Rosa 503,462.00 ' 335,641.33 335,641.33 4 Property Purchases 39 995.00 26,663.33 7,283.39 19,379.94 5 Desert Rose 320,000,00 k, 213,333.33 312,193.97 (98,860.64) 5 Portola Palms Mobilehome Park 120,000.00 80,000.00 156,543.63 (76,543.63) Housing Development 2,000,000.00 ! 1,333,333.33 1,333,333.33 Transfers Transfer(In)/Out Administrative Costs Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 7,935,938.00 5,290,625.33 3,165,729.50 2,124,895.83 j Notes: 1 Includes prior year adjustment for tax increment calculation change 2 This transfer is done once a year only. (This is an based on actual $ rcvd) 3 Interest is posted with investment maturities or dividend payments 4 Purchase of Rental property on Santa Rosa 5 Includes re-purchases and re-sales 6 Debt Service is due 1011 and 411 of each year } a � U > o _ v o ¢ O N a V p Np b O (mD N S n Q O m O O O O p d w S O S b r W YI (O tU tG N N Ip h N P O N O N K a 1'l 6 H � A r' ❑ A C N In O W N m P m n N N p O C O a Y N Cl N (p O N nI m N O QI 17 N to d m O Ip N m p I m:: mOPn d OOOOmI ' MOp n nRn Cl I m N 0 0 0 m N n S O N ID p H N 0 N O Oi ai N Ih O Oh a M m m ron np�n NOoID] 0m 1 0nn1 N W N N n N�n W E o d 13 m E N m o u C N c J cmd) N E rna w Q G Q M b _ A O N > O y d m N p t0 I1 Q CI t7 m N O a M N N Of d m y U) LL m O t0 t7 N N m P N. O O Oy�.a. to Od 6 h 1� O L a f t10� m N t0 (m0 N O N w n O O U1 tD O U E LLLL} O O LL h m n r LL C N O a 0 O m 0 0 0 n m h P 0 m Oi t0 0 In ^ v N N N C) a 7 N N 7 ^ C a 1 N O I M p C 0 E E c N � y Y am 0 ONmOR Nm mOO N(O 00 00 O0 NICyI OSOO ONn OOO ^p Om NA tC, NtINhA tNOn0 IO'G dJ0C m SmO1SOOSmp Ajm O t; O 8 O NONOO O N 0 O O In Cl a 0 0 . 8 a 8 Nw m 0 0 m 0 I0 N yN N O C OD N Sl 0 n w a E N N r 30 � T C y - o O O ❑ N a LL Z m y N Z Z m O O ❑ g Z w m "c c m ° c W U r J ° CaC t N m ZO O ¢ j U W U K ❑J U O z 0I? Z o d m dam' amC N COZZ Z AC d EN u ya U No m U O C F S3 zc� aQ ¢ rnu Y! at ._ O1 •� v, H d 0 ¢ a J ~ K ¢ w' e3 d C Oc N ICAO } m > O O U ❑ ~ Q > q y C 2 B r R �l 0d d N L s O J U u LL f OU 6 J S t/1 U LL b ¢ tp F H 0 4 Lu f- ¢ LL 0 0 0 0 0 >> a _ o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 F a a m m m ry m S M N ry m U > M Q W l7 N 0 6� 1� pN CI O N IA O O d " Y pm m Epp N m m O ea'1 (Np b N O Amy O m O W m n m OI y U� N m 17 m No N mIN ^I ' 17 � N �I Pl N � ry N m n N � a a Ip p O W N m W y N W W O m W m N W W imp f m m m m N b 1p A Ip I m O n I b I A N W O Ol m m n m m llll b b b b b IlI b YI fG IG 1G {p fp 1p Ip (p Ip b (O VI Y1 Ip (p N b b m E a Y Y m m Y m m Y Y m Y Y N Y Y m m Y m R p, m m m m m m m m m m m m m o aa8aaa �l aaBal �I Baal a � aa m N Vf N m m m m Ip (Y m b O m m n m b 0 y b b fp fp b fD (O (p N (p Ip 1p 1C b m N fO (O b N tU 0 9 by m O (p N W m W W �Np m N O m W pO O O O N p N �p bp N W m O p m ^ N rn m m m b 100 yb m O A n S O O O m O S 1� n S n m m N O N N N m A W W N N O O O O O m W p O O O n W W W W b O O O m C'I MO O m N W N O O W W m W W W W O O O O m W Yml m mCli Y N m m b ^ 9 N m AI Nb m W O b N m WO m (YpI n nW m (h O b N b n b O A O A b N N b m m m O n A O m N O m N b W p b m W m N b m b m b m P b O A Y n O S O m 0 W m m b W N NNmONO m O N bOm Y V 0 O O O m 0 O S O Ob O O 0 0 0 W W O b N m N N W W W N Q N 0 N N N N N M C I.L G W 0> r W d y - Q16yC j" 0 0 0 0 b0' m Ng m00 m1mbp mbb N0 m0 N0 C0I o Nb N o 0 0 0 N0 N0 N N0 0!0 NJ OOO OO OWmO O OOO W OOOOO O OO SSooSe SS co 0 o OCDS 000 o 0 o 0 0 0a o 0 oo on oS coSqo o �2n o SSSS o m 00 000 e O - 80 0m OiN g N m IL Mg V LL ' O O •O 41 LL a« m n rn m rn A m D o m m m m m o m m g q O mO'^ m �' m m W omi rn a o o S rn m m m o �+ m o t L _ �_ �_ 1 d a a O O O O O O O O m n m m O O O O O a m m W b b O O q C N W m O m m n Z IL O m 00 00 Q0 U' 0 c U U0V b H0 c b W 0 Z Z U Nm Z m H m E O U Wa zzz E 0 z 1 s 20 0U a a a W a J W0Ua O O O Z � Zw Z zdU W (/J b 0 0 b N b O W W W O > W O O UO 0 0 0 0 O W W W W W W W m Y 2 2 F Y 0 m 2 F 1- m y — W W W n ~ ~ ~ ~ ~ ~ ~ 0 J W O_ O O_ a W Z W O Q a m W I J J J O m a m z m W m m Z z m z W W W W E w >0a' Y QJ QJ QJ QJ d d QJ aJ J m (q QJ QJ QJQ O O O O 0 0 0 Q 0 a K K K K a J Q K K m a O z m m K `Y r F t z a O a W W W W m a m W W W a c c a 0 0 0 c U c ❑ 0 0 c a m z z Z Z „ z z z Z Z Z 2 m m W W W W m O m W W W m J W W W W 7 7 9 U i LL LL LL LL 3 O J LL LL LL 9 3 0 U' (D O (B O 0 2 O O a a a 7 a a a > > > u W c b b Z b z N J b m O m W p b 1N N O N m S M S m S J O m m O b O 000 `cmi `B `8 $ O o00o y o Q o o S o 00 c W U C _ O~ r 2 Z y Z n Y O W U W 7 ~ Q W Q N in y m = a 6 m J (L m b P O m J m a Wr mnNm NnNm Nmn mnN Nm nNm x Nm J m Um p b Vaa m nb pp O Z(� m WW 0 Ov m (d m Q W M tI m W C m OI �Yp1 �Wp O d f N m �Or S S S S $[ S S m VV `I O a � o `�8a oSoo - - - r - - - - , a° '•� 'i in I H m I n �i r4i .yi .yi. �i �i gi c4i c� c`S �i c4i �i �i n b b (p W m m (O m Ip b b b b m b b VI N b N W b b b h b b Yl b b In b E a N N M NN N m N m N N m m N m m N m tE N m 1G N N N m m N N a m m Q m m m m m m m m m m m m m m m m m m m m c a a a 8 a a ¢ a ¢ < a ¢ a a ¢ a a ¢ a a a a a 0 p� i q N O N N N O m0 O O O O O O O O O O O O O O O O O O O O O O � SX0Ln0 b b m b N N b b b m b b b b b N b b h m m W n n Of m O N O O O O N O W Q O O O Q n S O 0 0 S m 0 YI M Q W b m M O W O O O O 10 N Q N O O O W N b m N N b W m m m O n O O O O y m m Q O O b m N W Of N W O W tO 17 O N m W W co W W W W 01 at N N V t7 E N O � •- � A N p Q b CI N tN•I S a( N S S S O m N Q N O O O m M r 0 0 0 0 S t7 O b Q O O O O O pMi_ N 0 O pml (bO O 0 0 0 0 N O Y b m b 1 q O C! CDO W W O W O Q N N Q mQ b m Q Y m V _. Q N N •- N •' t0 C Lu w C W E m W0CL 1 N OO OOp SSSNN b NSSO W Qbbm NWA nObJ NN 0mN 00 0 0 0 0 S0 b0N0 O O w Q OS Sp O O o O 6 0 C OO O O O OOO O O W b M O Cl! N O O O O O O OO O o n Q o o m v o W v b m m Q m Q y o N W O o o N N Q P H N N N- IL N p m 3 LL — o � L0 ° Li mm W $ mopb r O N m O W O O {S{�V3V3 O U n yLLLO �O m o o_ ry 0 i d a o a W V O N W me U G ri m W W m Q m U � oWi m m m m m m m m m m m m m N b m m b b N N N N Z n m m m m m m m m m m m m m m m m m m b m b b N a a W 0ou0 0 00u000u00au00Q000 W n O n U U U U U U U U U U U U U U U U U U U U U U U w w w w w w w w w w w w w w w w w w w w w W w U U r r r r r r r r r r r r r r r r r r r r r r r a Y > > > > > > > > > > > > > > > > > > > > > > > m W Z K Ft a! C K K a' K K ll C FrK K K 0: K K K Qp ¢ a a a a a a a a a a a a a a a a a a a a a a a r 00 m LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL m > K O W a ww w w w w w w w w w w w w w w w w w w w w Z W W W W W W W W w W W W W W W W W W W W w W W O N O LC � � � m E � � mE � mE E f E E E m W S o ¢ J p J v a a a a a a a a a a a a a a a a a a a a a a a a w ¢ m O ¢ w m E E < < < E E E E E E E E f ¢ ¢ a a a ¢ < < a ¢ a < < ¢ a < ¢ a < ¢ ¢ a o r a R y 7 b J m U E y M 0 r O O 8 O O N N N N N M M 17 M M M M Q y O O O O O 8 O O O O O O O O O O O O O O O O O O O O O O O = a IL W _ C < f � V b b W LL m U W p ¢ x 0 o up�i O m OO Im- OIL u 7 W O m ^ Q N m b W O C a LE a a 30 a m m U i a � o _ g m E U e o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ¢ a H g q q q q q q q q H m q m m q m m q H m q q q q q q q q H m m q m q q H r � a" am � a" a" ama" a8aa" < aq � agam < a" am � amagaaama ¢" 8 f E q yO O Op Op Op Opp pO pO 00 Oy OQ QO Op QO pO pO pO pO pO pOp pO e0� Op pO QO pO pO e0 pO 0p pOp pOp QO pO pO t0 7 O O O W m 0mOnpp pp0 p0p0ONOn 0 NO 0 0 0 0 N 0 0 000 w O O O O N m � p a 0 0 N N O m I�l imp O O O O O O O O O O O O G O O O G O O O y QQ h m N N h O G (p N N O+ Q P m m Q N N V � m m Ol N O O m N O m Q m O O O O O O N O O O O p O y O N O O m O O O O N O O h N N O O O O O O N O O O O O O O O w O O N . . � O O O N N0 O Q O O N N O m M � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 pQ h fO N N h J[ fp N N N ONl Q P q m Q N N w C W N , WCC � H o 0 0 m N 0 o m m 0 m Q o 0 0 0 0 N o 0 0 o o O N o o m o 0 N 0 0 0 0 0 0 o m O o N 0 Q C N q O O O N N (D O Q O O m N O 0 Ol w O O o O o O O O O O O o O O O O O O O O C cC 1 N a Q m m N N m Q L y f0 N P Q Cmf N Q a o LLo ` LL oOCo o Om O O O OOO m O OO O O QC QCQ � CQC � Qd Q j O D O O O O O O O O O O O O O O O O 1 6 h h h n h h h 1+ h h h F A h h I� r h 1 a O O O O O O O O O O O O O O O O O O 0 q a u q C 555000u000uu00u000u0000u00uu0000u000 U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > 7 > > _ d 6 a a n a a a a a a a a a a a a a a a a a a a a 6 a a a a a a 4 6 a a Ew w fw w E E f f E E f E E Ew w w w w E Ew w f fw w w Ew Ew f E lr K � K K C K K a' K K K K S tt K � K K K K a' K K LL K K K K a' lr K K R K K m a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a < a a a a a a a a a a a a < < a a < a a ZIP < < a a < < a a < < a a < N ak N g H J yy d $ o 0 0 0 0 0 0 0 0 0 0 0 00 . 0 00 0 0 �2 �2 - � P a LL $- o w C ' W C' 7 f 0 J Q a n U > Wq II{ oow pop a0a p0 p0 p0 p0 0 0 0 0 {0� p0 0p 0p p0 p0p Q0 p0 y0 p0 po pO yo 0y yo ya N fh C') t7 C'I t7 A A m A t7 C'a Ih I7 t7 N t7 C] t7 f7 17 t+I t'1 1"1 1n 1'1 Q N N N to N N N N N N N N N N N N N N N N N N N N N N N h Yl Q Q Q a p g W W W W W W N W W W W g W W W W W q W W W W W W W a < aW aW aW a < a" < i 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N h N N h N N N N t Np N N N i(f N N N N N N �YpI � Q Q Q S S N 0 O O S m S o o O S r O N S S S 0 0 0 A N S Ib'f O O O O O O � p A O Q O N m Q O � O O O 0 N O m m lrD Ny ' Q ^ N Y Q O YQ m N NNT Q r N m Q mN (tpl CP N N N m Q S Obi W m N O) O! O r r m N N m N N r Q O N �- � n S O O O O N O Q O O m O O O O N r O N O S O O O Q m 0 r Q m 0 O O O O O O O P P O Q O O O N m O P O 0 0 n 0 N m NO m Ut y O� mVV mp O N N N r [G N m (p N W N I0� m N O N A n Y � Q. C W GI Y t' p �p w d d O S S S O O N O Q O S S O 0 S O S r S N 0 0 0 O 0 Q N 0 0 O mN O Q C N > 0 0 0 0 0 o o nm of o 0 0 0 N 1 y 0 0 0 0 N o m m o $ 000 v0i L 11C 1 Q q m n mm O N Vf N m O 0 a LL C m O o o a } lL 02 o 0 0 00 $ S o 0 o g o r r 0, m A o 0 0 0 0 0 o rn m U a. LO Q Q N Q N Q O a O O O O Q O O O O O O O 1 1 r 0 O O n O O O O 0 0 1 O O O O O Cf U ONi tm�f a m N N N b N b m m b m N b N N N b N N N N N N m N b N s � sgsssssgssss � sssssgssssNN m m ; 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o >o o 0 o w > > <> a a W W W W W W W W W W W W W W W w w w w W W W W W W W a a a a a a a a a a a a a a a a ¢ a a a a a a a a N N m w w a a a a a a a LL LL a n a a a a a LL a a a a a LL a a � � w 3 w LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL N N w w m w d w w w w w w w w w w w w w w w w w w w w OI Q Q W y J E W W W w w w w w W W W W W W W W W W W W W W W W W w w V W U a Q Q 6 Q Q Q 0 Q Q a Q a 4 � > > � U 0 0 m M a a ac N W H y F- C Z w N b n m O) O N to N p m m m m m m O) O m A m 0S O O O O O O O O O O O O O O O O O m n f C N $ 7 f N ' W m N K a a f o o U > o rn o m � m o n ' � E• ql uni vv'i uni w0 w R ° � a V b O O O O O LL� rF• O N O O O m � } O O O C b d E a m m m a a ¢I f ^'w 3� J O O O O q p b y n O O O 0 m N P O b 0 b n m ry o o e a j n o 0 o iO n o 0 0 Y OI 1'I l7 b N q b P P P C r � d W w CO) E N p W 01 j 0 a o g o n {0 C N w o $ o n C N 6 m m n m ry Qm v a LL 12 d O p o a 2 H O O m n m m a U i d o �Y b O b • R C ry' O 0 m ! m [m O 00 � b b P O 41 QNQ W W K � r r w w w w m r r m m d ai h m 11 Q ❑ ° Q Q w W 16 O m a c N b m Fm � N N J Q 0 0 W o a u • V5 f o U N K a Wrn ¢ ° 1 U o i•l O N + a R O � 2 U n � f � n a T 8 O f O O +N N O N m pt N O � ry yl y m N m N m m n n Q Ip Y m p Qp Q (° N N N N T n � N O N N O COI N � OO N ONl Q � N Q m r N A N N 1 � m C t W c N o rnU c l0 N N w N aW m m a Q L u ago a O OLL 3 a' v C p LL q q O $ O O O O y C O O O O O O v a a S 0 0 0 b 0 L am ° 1 a n r r n n n q $ a 1 0 0 0 0 0 o U ¢ y O O pl V N A C j M W A $ O Z Z Y V 7 d Y m Y U H W i O = Z ¢ U O U Z U F F Q J W 3 0 w J n. = 0 D O Z 3 O 0 = + U ¢W U +� a fL +W m 0 W ' + 0 0 0 7 0 � o » c W x W U EE ° o j o o O o 0 o H m L - a W U N _ c $[� O �3 Q o O ' U U tt i'3 i haWx\A.,�ni)?.f�,iYp %^fi:fiiS�JiM:[ � o O N OUU A m J Q O O N O 8 O ¢ 2 8 O O 'A+YKAdk`W `Bt✓�XMki'!F!"X'G•'P"'� 3 :4'M1.r'Pu. m w 8 9 Z J yy fj y ' o yy N_ .W _ _ _ _ U _ _ n+W%'� GSIieR^kGJ,">'+LMN 5• r1, %tuL; g �n QNJ j l C U g_ N UyajQO j Op W 13 • Op N W O N U (� .'4'd, 4 t f V}6v.YSN b A" f dCc4VS3)T,Wi p m0 o¢0¢Z o W 5- d w m > Z > U 8 W LL m N Q O R 70 gzzu d d '� UNbp g `n1• > f UA'lf::fiNR' m U m 9 Y N b N a % T afi'+p 14ktrd "Y3 S �+" $:tA&➢R 8 A O V _ O PW'T1`,5 e!fdS rN(v .'{RNdw15Fil�: gp m f00 V N O (%> onodidoa A 0 8 $ 8 o in o Ln o Ln o Q > N r cc cc vi vi v a W O � w g SNomin$ (X)a131A oQ > 8Q O LL m LL p_ �O p o t0 p0 0O (�2 Lt+tR (Ty O N N Zwz n�pmp� 8O (fDy 'pV� ((r4yy 1� p) W Q 0 O! O m N I� Q z ~ U z W 19 Vi 19 f9 f9 di di f9M(9 di W W j Y e ¢ N Q a 8 y f�f�pppp N 88 pNp N I�p Op��I�(p)q O) !pp er Ci ¢ 2 o g Q y O ¢ ' Q O1 U 2 LL o z LL m La 9 8 0 ui»en en en en en en en en en xa x a w N 000 OO (p A a° z 7 n co LLo8,8rn ma � d ?S g UU e� O m Q O ¢ � ONi00�m�i V lD m r�N OF Z O a c oaic�oSec N !� bah ¢ U V O J O ¢ ^ w N ¢ ¢ m d Oo 8 tllMMMMMMbfMbfM df f9 Q Jm W LLa o ¢ ^ 5 a9 z = W (A z J 1z Ln z Q z g w zS 5 wzwW o w < < a Do o *80<5�5w > 8 U> y¢¢aa00a S' U oaa , W(9zo< 6 LL W ¢w wo�¢3<Jmwm Wo 7��v �Wc53 8 �J Jzwa¢JHJ Jrn> Q Q2Q¢ faL QQKQQK Q � LL 3 • W �W �Od�SH�La✓� YOY O ; � wQLLe �C69 ww0 << Z 16 L6 W U131A CITY OF PALM DESERT INVESTMENT ACTIVITY REPORT FEBRUARY 2001 EXECUTIVE SUMMARY As of 2/28/01,total portfolio book value was approximately$176.5MM. This reflected a net increase of approximately$717M from prior month due principally to interest income. There was an unrealized portfolio net gain (market value-book value) of approximately$1.9MM, based upon prevailing market interest rates. This was only a "paper" gain since there were no premature securities sales. 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$2MM DUE TO A MATURING SECURITY. "Federal Agpnc -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 BYAPPROXIMATELY$2MM DUE TO MATURING SECURITY. "Local Agency Investment Fund (t AI )". 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 DID NOT CHANGE. "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 DECREASED BY APPROXIMATELY$2MM DUE TO A MATURING SECURITY. "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. "AIM Prime MMF Private Class". The City invests assessment bond proceeds(construction, cost of issuance, and bond reserve monies)in "AIM Prime Money Market Fund: Private Class." This$16.6MMM fund invests in U.S. Treasury repurchase agreements, first-tier commercial paper, and master notes. Weighted average maturity is 60 days or less. S&P credit quality rating of'AAAm"; Moody's of"Aaa". THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$7.8MM DUE TO MATURING SECURITIES. "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. "HiohMark Sweep Accounts". 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 BYAPPROXIMATELY$16MM DUE TO MATURING SECURITIES. "State& Local Govd 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$4.7MM DUE TO MATURING SECURITIES. "Commercial Paper". The City high-grade, unsecured commercial paper at a discount, with maturities of 180 days or less, from Fortune 500 companies and global banks. THIS ACCOUNT BALANCE DID NOT CHANGE. W U Z Q y (O y (A (O (A (A cn (0 Uyy UInU Z J W W W W W W W W W W W W W W W - a r r > r r > r r > > r > > > > 2 O U N O ' O ' ' ' cc O M O Cl) CO y N 0 0 00 v (n Cl)00 00 J J O O 00 O 0 7 M (O V O O O 00 m O ( tO r- 00 LL V, O O 00 1 (M 00 O) 1-- r O) I•- F W O O 00 Q? 0) 0) a) m 0) 0) O (.) V 00 00 N (D N (O (O 17 N � d Q 69 V3 EA 63 EA 63 V) N 69 N M V> EA fH fA 64 V) EH O F O J O Z O W 0 0 0 0 0 0 0 0 N o 0 0 0 0 0 o e o \ LL V o 0 0 0 0 0 0 0 o N o 0 0 0 0 0 0 M 117 O (n 0 0 0 � CO � � M M N O aaW m W LL W 7_ N Q a o J w IL U 5 0 > F o o � E U pj U Uy a o o E.0 p o 00 o o m ar m c w p Y o � ° IL } M v ° (L E ° � mU IL u 0 0 O p a Q N v y o ,r y N C V M 0 F J 0 a as , Ccrn vyd pmZo ° ° 0 H _ C � N O �. J N a f6M o � 4. m p � y 0 >LLIU o M 0 ayi m y ° Z F y) �' c o m •� a U d as } rn0000 ° va ~ 2 -Q y a) � a c c -L = c0 v —a (= MQCo 000a m � ° qZrn— � m ° � 'mm gy a) x N N C � NNNN CII tL � G ~ C � OC� (7m � � QQ N � UUO a) Q : � (n `. co co .-• N V h N y N V O y � 2 � 0) V o aritM N N th fV � y Y h y a m W U z Z J w w w w w w w w w Cl) IL U _ Itf-- 00 0) O - O co JJ ' 00 � Lo M 0) O (o O ¢ T NWN (O N N U.F = WNWm C Ci F OU h Cl) N a ¢ V3 EA fA fA fA M (A 69 69 _O 0 J Z N O W o 0 0 0 0 0 0 � M O V' p co as m w LL i U `o Z y N ¢ N 0 > N J C 7 C Q O O C N a o = ac o °' cc o d U c 2 d U y v y cOi m U o f0 0 c�i w r '� c y Q a } O R' LO O N C C y O _ E y � o a ' > d U J o A 0 m y 0 (� o ,� � c Z c U d C%J O m U � 0U aOo a U -i CD o =CN0 3 � O o a ) o o z O a) 0 = } gym U IL v oV ¢ V 0 Uon o V a V dv � 0 fA 69 C `? O T V_ C, A0W eNOr _ C A V� E co N � rv) NN Lo? 4 h O _ m OLV VN V N n E 2 V O p O W N O N W 7 U LL = '- LL w d y ¢ d 0, c Uu 3 O D D ¢ N O 2 C N 2 > in U N � UUin UUUw � U) caO2 Cl) N m V LO N Cl) - .- N Cl) V LO a e e .. m a O Ll e a o a M a to Y C • _ m d � N � � � Q N V K j 0 g ¢ r E 00 m n p m N o N �p Epp a o m a f P m � �i N O N N m m O m LLI m E M a o N m h in N y n � Q 17 N m m O � p � a° 0 m m o N N N o m m m y � O O VQ } � (OpN N n O m7 N m N NN Ci OmO N N L V On mN U m 0 M Nm S N H N N N P P O N UI E N Q � � O d Z N rn y a C co O N O N IO VI N o P m > m M C m m IL o A � � OQ m m o N N M o o m m m m > •_ O N N m O J y y m O N O r On 0 ^ N N p m N Y W` y O. L 2 f) / yi O 17 q N Ol O! O) n m a LL a v m o n ry n S m�i °i mmi LL E Q w O tm0 N N N N n P Ill M N a D W L m 'o E H a m c m O O O N O O N m M e C y m 9 O O N N S N O O O N O N N m C (NO W A _O Cm 1, h N N d M C m m O (A W OO N W a w l: Q = O fm0 N N N N m Qo N O t0 f0 m OI L N N C o E m � E N N m m � O m U C LL a O C m o a z m o z N a H W O 15 m o U W E F 7 a Y o N N g v F zo F z o , E m 3 L a w m < 5 > WSs0Q °0 m m ac U O W ? O (7 O w U c d m o E c a O z O N W7 p1 c 5 L c `m Z. p a a y QQ J C7 Q jQ Ir m m m ) m m m C d �y K K W J K N O u U W C W ' O.t N N W F d Q W F W L c m` U m p W I- a: Q 0. rc N q o 0 0 o g o a d no a > O 0 o a $ $ gg Q . E m o m o l m g0'I .yi_ A e5A eli Iyi A A gi A A A A A A cvi A A A d (p N N N N m Ip N N N N N N N N N N N N N N N N N N N IA N N N N E Q O N N O (O m N a N R W R W W R R W W R R W W W R W R W R W W W R W W W W W W W T W R W W W R W W W W W W W W W R R 0 8 a a 8I a a" a a a a a a a Q Q a a a Q a o° f O O 00 N S yOy pO yO •Op pO pO OQ pO pO pOp pO pO Opp pO yO yO POP pO pOp yO pO pO QO yO O S P fp O Cl fp VI N N N N N N Yl to N N 1VpI N N N P N 6 N N N IA N p N N O ♦D O O O N P rn P t` TT l7 P O O 11Npp A > O O N m O N m b y O O py N 1+1 fp 6! 1p 1� Iq fp N fD O m 0 P O ff��ll pp I 16 O PN ry N D! N O M OS A N P N O Ol P N tN O N O b pi � N b �Np N O O A O O O S al O O O N O 1Opl P 1� ON] t") P O O N r Cp] m N Nm O 0 O N m IG O) ' Ol ` N m ' O N O O O N m P O N 0 0 0 0 (NO �Np O N O �Np 0 Ip A m 1p N (p 1 Y O O S O n m P N N ^ S m m N P VNJ ONl P R N N 16 r Y fp r O (p 0 0 N N N N N O N O Ip q w E N `Q` d O o000 'o 00 'o n 00gom000 N , w 0 n mp die oo o ry n �i m yC N OSS NN ON1I 1N� toNN(p N0 ' O ^Z > S S OO N W � O O o Q O Or IN N ps IN N (OO tN000 P N (WmD mNpi lOPV O N O OOO O lNP[� IQ SO P (p r O t0 N t0 m O! N N N OI P llii Cc O O Q L o a W LL D a@ t� m a m a m m LU C j aN Q� d d o 0 0 o 0 i N C d m o W d' OI N >n O O n N N N N N Ul N N f� N N N N N N Vl f0 f/1 N N N N N N N N N N N N N N N N In N N N N N N N N N N N N N am YY � N $ < 555555355555553555553555 Z z Q Q m U U U U U U U U U 0 0 0 0 0 0 0 U U U U U U U U m m r 0 > > w w w w w w w w w w w w w w w w w w w w w w w w N N r r r r r r r r r r r r r r r r r r r r r r r r z Z 0 E a Q Q a Q Q a Q Q Q a Q Q Q a Q Q Q 6 6 a Q Q Q Q Q a Q O J w W > > > > > > > > > > > > > > > > > > > > > > > > J J Z w w a O N N LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL JQ JQ E ?Q N N N 0 w w w w w w w w w w w w w w w w w w w w w w w w w o w Om D W � d o 'c w w W w w w w W Z Z W �_ f E E E f �_ �_ �_ E E �_ �_ �_ �_ f h LL LL LL LL 9 J 7 3 Q Q Q a Q Q Q Q a Q Q Q Q Q Q Q Q Q a Q Q Q Q a O O a z n' a J y a 0 yQQ m 0 J W O U _ U O W O ppp�1 N N N N N N m m m m t7 yy pyy r t7 a U QWui V O f Q d W 2 2 m (9 H a W M m f y o 0 w n n M N Q 17 DE ¢ ate 0 0'0'0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 € > N N N N N N N VI IA N N N N N N N 1n In lf) N N N N N N N N N N N N N N N N N � M1 �U u O � d m A A m m m m m m m A A A m m m A m m A A m m m m m m m m m A A A A m m m 'o " a" a" as" aa" 8am � � a" ¢" ¢" aa" a" a � a.aa � a" a" 0 f m m o 0 0 o O o 0 0 0 0 0 o O o 0 0 o O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N� N N N YI N N N N N N N N N N N N N N N N N N Vl N N Vf N N N N N N � Yl VI N b N I7 N tp Of SSSOOOO $ SSS $ $ $ 0SSm IT Q O T n O 9 0 . N - S OS 0 0 S 0 0 0 0 0 t0 m O N O O O O O O O N O O O Y N N O 1D �p N NVV m Nn N N m N Cl N O) A f7 N n N N O O O O O N O O O O O N a0 0 0 0 0 0 0 0 0 0 0 0 0 Cl N n 0 0 0 O OI n O O O O O O O O O C ry t7 O O O O O O O O N O O O N ^ n m Q OI Q pl M O O O O O N O O O O O N th O N O o O O O O O N O O O 1 m v of � � a6 ac 16 1 Y N N Qf Q U � Zul c °' 0 y � a G1 0 m uryi n m v o o rn n $ $ $ $ $ °i $ $ $ $ $ ry n $ $ o $ $ $ $ $ m $ $ $ F p) C N q N n m qi f m pp N C') O O O O O m O O O O O N m O 0 0 0 0 0 0 O O N O O O Z IO > UJ L IOD IL N 6 N m o m o m lV N 0 N J p0 > o LL W O Q q q O O O O O S S O $ O S S S S 0 $ $ $ 1y� O O O O O O O O O O O O O O O O O O. L b O C Q N N N_ N Q N Q C C W Q O O O O O O O O O O O O O O O O O O a n n n n n n n n n Ir n n n n i� n n n a o 0 0 0 0 0 o O O 0 0 0 0 0 0 0 0 0 1 1 m m a u q C d A Q m N N N N m) f/1 N N N N N N N N N N N N N t� N N N tp N N N N 41 N N N V1 N V1 N 555g55555555555533335555555553555555 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL w w w w w w w w w w w w w w w E w w w w w w w w w w w w w w w w w w w w W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — K y m N g E U K a LL � o W f � C a a u j � o U 6 a e v o 0 o N o 0 0 0 0 0 o Q a W �G CoCg � C g0"0000 Oa Qo IL O O O O $ O a N N N N N N N N N N N N (p IC N N N Y) N N ml O O O O O O O a Q - - - - - - - - - - - ^ Q pm ym ym C) N N N O O J 'I ' (17D N N N NI N N N l7 i.V f W W W W d W W W W W W W N W m m W W W W W W W W W T W W W W W W W W W W W W W W W W W W v � � � aaaaa � a � a aaaaaa � aaaaa f O�d 0y 0 0 0 0 0 0 0 0p 0 0 m 0 0 0 0 b 0 N d W (7 A A A A (7 M Np' N YI N b N N N N N VI N tp m b m (D (O t0 m N O O O O Q m 0 0 n O N N N O rn 10 N C n O O O O O O O m m O O O m t0 O N O O O N Q OI O f7 O m n r Ip O N p N Onl INp O N n N N Omi A Y Q NNO N ^l t7 1'l m N N N n m b m m m m n N A Oi N N n m 0 m N 0 O O Q Q N n tbp CI N N N ONi 0 0 0 m (p Oml $ r O N N N O (mp Q Cf (bO 1mm b �Op 0 0 O {0 0 O Q N O O O N m 0 N O m n r m yY ^ O N m mni N n Vml N N 11% q YI Q O N 1'1 m H Q m N t'f O S N m m m b n N_ N Q N Oei 0 p O1 Z m LLJ y E y Q G1 7 $ $ 0 0 0 0 e 00 0 a 0 0 eo F N q p N o G ci p pi 0 m o v d 0 0 0 0 0 0 0 �p n 0 n m 0 ' Z C > N 1 O N m n r 0 0 0 o O O O N n N N N m n N N Ci ('l O O n N O O m m 1D m m n N 1 m N m N m N N m n N !CWC y N q $ mm N m o m n w � IN`1 N fV Ci N Y0 Q O ` L W O 00 00 rnmrnm mm mm mn mn mn mn mmn o o n mrnm m m m mo0 N N N N N O O C P P Q 0 W Oe- a n n n n n e7 n n n n n o Q. o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i dq Y N N n N m m b N m m m m m m N � LL N of o 55555555555 m z V Y Y W W W W W W W W W W W D D D D D D aaaaaaaaaaa m ¢ a a a a w w w I�i ug w LL LL LL LL LL LL LL LL LL LL LL y N y fn fn y w W w w W w w w w W W ¢ ¢ 6 a Q a a a ¢ ¢ a ¢ w w w w w w w w w w w K K K K K K K D! K K K a J ¢ w 0 0 0 ❑ ❑ Q O w O w w Q `m aaaaaaaaaaa w w w w w w w w w w w w w _s � rrrzz m W p m Z Z Z Z Z Z W Z Z Z Z Z Z m a a a a a a a a a a a 0 J m J > > > J J 7 J J > > 0 2 o a o y LL > > > # y N m N N 0 0 0 O O O O O O O O j W Iry j F to 5 m m m m m n > O a Z U C7 W C J W W m U' (7 U' A as m o N N p m rn N n n n n n n W a !s a N N N N N N G O ~ N N N N N N a O & mom8088 e $ a W ' aam � m g $ o y O O O O O Vm m m000 0 q o rm v+ � N 16 N N N N i « LLI q � O N m 0 N Q Q I Q N d 10 N t0 tb N N P P P Q Q Q P N N 9 0 pl N P P m N p W� N pI Iml N b a t2 r n $ y r fp N N N m N M N O p O O m OpI N O O O m !� N r p � � m CJ N m m N II m �i pl N m O m P N Y O N Q O 9 P N N Q m N Q N $ N y O n N r t i N N Nm mO_ NO Or NN mO ,_ NN Cm7 m N r m O OO O O V O O O Nr m cl Z W = C9 °� E H O QCD ; O a $ M$ $yy aO mM$ 'm $$ O o N y 0 0 0 0 0 o n 0 0 0 0 Z C OOOOO N OOO r IQ N IN $ omW y r r N cl n N 10 0 0 0 0 P O N l7 N n d A OLLI d LL O0 O t 0 m m m m m m m �+ W O m C Q Q Q Q Q0: ILa o 0 0 0 0 $ j y q C ' 0 Q t b m O N T O p, a n Y Y m Q m m 0: 0: a: N w w Q Z Z Q n > > > > > w w a a Qy Qy Qy Qy Qy N N Z 2 W W W W W Y F a s V U U a a ¢ a a m a s m = _ @ r t r m N N N N N m 0 0 0 0 0 w w a Z Z a a a j H H H H f C 9 W W p C b > > > > > q 0 0 q W W g w� ill C O r0 6 c' a E A > > s q y y 2 = y e Z = O m 7 N N N N N O N r = N N O O mmmmm y Q N N W Y b W V > 3 w K W C) 0 Y Q Q Y o 0 Q Q LLU' LLU' c W o U o U U W m y f m N N N N N N C9 W S2 t'N') U 7 m m `m m m S LL m In � \ � \ k� \ \ \ kk \ ( ( k ui � § L _ � & Q) ] - w2 � � ask ( . oj0 � | j kk � wCL IL \ \ \ � 00 } { ( � \ ; WM Ci { { § ! . ) ) ) ) ( \ r 0 � ( ) ) \ ` � . § YIELD(%) A 0 Z a>Gp g� CmoD o5w��o ek- 4 O ? g � ' ^ � vmm N � � D D aDr r JWM M 58 m S mK� c K � C aOm zvZm« z mr a NCO <9 < X)0S p00 0T 8 m N �y o 0 0 0 N�g �0 m �cmo mm 99 Gai m OZN�m ZC sm Z n 8 n mm m O 2 m { S D to O g g � u v e m 9 m m Z c a° x vzz yy+ � F yy c. D pf ea'�3. ; N ww v.r»utwwww+nmwrn D S m M1��}a' b m n O g y v m 9 + T �ii O (mm y AII+VV(W� yOy tAtpp AITNN (ON..�iT C O mp 0 y D y Af�J W p e V NOpO A_fN0 80�0O� < � O D r m P A 8 V {m� m.� V(mP0 N In V ( O D N(>t T O f J 7 4.- A t D N O 6 o iwCql � ' No°8 88 + 0 a 4 On Z0 PO wdo u+v+w v+v+vi ut Fnwwv+ m 8 c c z 0 Z p � m pO r b �.i�.ii +0 O tA�pp(mA(mJJ ITNN t8Np0 t(ppNtppJ OOi D 8 N C 3yy V O V N+O+V D N b m 2 d4 o T pNp , AA fJV+O+AA UAL+ ONB C N � NN' ow (mNi Yx, p�m $ ppo „YOm pvp , m O O _m g}am8mOgc, S mmm m mcm YIELD m - c SMILUONS O d ' N o 0 PORTFOLIO (%) 0 7 .. IR D 8 m . Omy mma^5rOsm0 m_ 1p O 9=Z; N. T a > 0 y �. p m 2 F 6m (/8� p imZ 3 8 7777 i y N < 99Z N V y p. . ■ z 8 E Os>m> N y D G _ - m r m 8 N . h "AxN3 T N A m O 9 y r o � O 6 y 8 N N p r N 8 t ♦f <.15 ii Ri tiY Rol",4r t�.4;f 9 � N . . � N < p < o sM WIA>haac zvx> ra.zaTeu:i:Yliu€. o m 0 'Ntv$[YV.Nj.¢fi^..rS�K $S h I.i`dt O REDEVELOPMENT AGENCY INVESTMENT ACTIVITY REPORT FEBRUARY 2001 EXECUTIVE SUMMARY As of 2/28/01, total portfolio book value was approximately$150MM (with SLGS). This reflected a net decrease of$3.3MM from prior month due principally to debt service. There was an unrealized portfolio net gain (market value- book value) of approximately$1.4MM, 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).Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "AIM Prime MMF Private Class." RDA invests tax-exempt bond proceeds (construction, cost of issuance, and reserve monies) in "AIM Prime Money Market Fund: Private Class". This $16.6MMM fund invests in U.S.Treasury repurchase agreements, first-tier commercial paper, and master notes. Weighted average maturity is 60 days or less. S&P credit quality ratingof"AAAm"; Moody's of"Aaa." THIS ACCOUNT BALANCE DECREASED BYAPPROXIMA TEL Y$2.8MM 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 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 DID NOT CHANGE. "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 "AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMA TEL Y$171M DUE TO A MATURING SECURITY. "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 DECREASED BY APPROXIMATELY$372M DUE TO A MATURING SECURITY. "United 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. "HighM rip 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 APPROXIMA TEL Y$71M DUE TO INTEREST INCOME. "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 INCREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF DISCOUNTS. "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 INCREASED BY APPROXIMATELY$2M DUE TO AMORTIZATION OF DISCOUNTS. "Medium-Term Notes". The City buys noninterest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT HAS NO CURRENT BALANCE. y � n z n e < va v 2 " � m N z 1 N m m D D g D T T T N N N N + = N d X fo z cn m m (a0000coCD N A _ (D_ cn n Z Z = = m W N o 00 to Q v �o n i a3 c G V1 0 M. N W --I Z .p.. p p N C N N CD ' m n m Z 3 m mmm 0 A m o cn ' � m c d r- � � oN n � DO .N{ Wo 0Cn p I = a) 0) � o vA 3 0 a O d o �1 i N p > > 0 O� 0 n � � z 0 = (O O0 =F CD 0n A a mo � � CD O d N O rn h N n 7 O O CD a ° (� T O O N v p O W .� N t0 O m 0 r o T 0 0 CD N n p O n 0 3 ro n O N y n y y O m O O 7 o y y D y � r N � Z n m m m m X M C O O O O A W O o O V 0 V A A mT 0 0 0 0 0 0 0 0 0 0 0 (V z O O O 6969 69 6S 69 69 S9 69 W 69 69 69 69 o, A O o cn D O O A O A A N C i A A O co co O 0 w N O p W D O r _r i r W O i A i A N yO 0 O m m m m m m T — co cn cn ti cn m F. z z z n m E ¥ m 2 / \ ZL n : k \ { } } \ (A £ }\ \ �\ 0C > /\\ �\\ \\ 0 ( A CD{ ex 0 \_ � _ & \_ I ° ! ƒ ° ( 0FNCD3 f _ � « < \ / _ = m \ / \ 7 ) cno 0 \ } \ \ \ ( \ § ` § cn . a g -0,0 , \ � ^ @ � � 2 \ » ■ k CD \ co ) } 00 - ) k + � , a0 5 = ® \ E = = « o ( � ( / / \ \ 0CD 22] $ } } § { / 0 q CD ya a } a ] (n E 2 2 ( q 7 \ o0 ! 2 ® _ . 2 \®# ) 0 CD ® z 0 m , , , ) \ k . .q ( � _ > 0 { § G e , , � § U - m 7 / \ 7 \ Ez . k m STATE OF CALIFORNIA - PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January, 2001 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-12-2001 01-11-2001 QRD SYSTEM 223,037.26 01-26-2001 01-26-2001 RD 732847 THOMAS W. JEFFREY 16,054,000.00 Account Summary Total Deposit : 16,277,037.26 Beginning Balance : 12,762,337.26 Total Withdrawal : 0.00 Ending Balance : 29,039,374.52 T Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 -; 1 v (916) 653-3001 January, 2001 Statement CITY OF PALM DESERT Account Number : 98-33-621 Atta: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-12-2001 01-11-2001 QRD SYSTEM 388,052.34 01-26-2001 01-26-2001 RD 515078 THOMAS JEFFREY 4,854,000.00 Account Summary Total Deposit : 5,242,052.34 Beginning Balance : 24,710,565.52 Total Withdrawal 0.00 Ending Balance : 29,952,617.86 Page 1 of 1 L c 3 c A C C . K O O O C O O C O O O O O O O O O ' Cq 07 � � y W y W O M Q\ h 00 V V h .-. 7 .-• h N O p y WZ N N O ell Irl M 7 D M T h 0 V O pp C QC � a V IL a a Q Q W M N M N O 00 a � p ; � 00000 � Q ai W O Z Lu W N LL ♦+ O O �D V) O M .�-i .r O a\ .-. O O v1 �O l0 ��"+ N A q O vim+ M t`: Q\ [� t� vl rn I ✓A p�q NkLl (V fV .-+ +--� -- --� C' �' L O N .-+ O O O h O .�.. ar � a E � � r i b cn r o0 r o p er, U mo C p ^ C) . � " OPa 'C c C7 IL ' C F ron q a i6NL� '� m G O kr q z Two ; ivy f � � d � O W 7 aS ni y GA q � C � N � Y ❑ O 'a.+ 71 o � 3m � I- Iv� o d N , ai-'F .a-p: W` ° C40a0 W a° c7a' aU = O wz M= CS° ( COCD / § EF 9 a � /\ k } k ` ® 7 - ° _ ® � ) } | ( § ) 0 [ k 0 . 0m CD \ \ CD \ CD\ \ \ / 2 \ # % a ; 7 § \ ( - - k � ! 90 o 0 CD EU CD® z CD ) } w _ \ G CE n \ § 00 Cl) \ { in° n§ \ §) CD 0 ( » RM CD � m @ » r � § E � ( CL - _ M > 2 } 0 \ \ / j > CD ~ ° � % m 0 \ } > ca \ \ � } � / § . � ( 0 { 0 CA \ CL } CD G § /N m ) \ § CD CD _ F a CD _ CL 0 \ 2 A O O O O O O N N N N N O O O O O y a f0 l0 lJ i p A L C N J J N D +m m m a m 0 0 0 0 0 J N + W N A d > + N J H 3 a n n Z n Z A A as C C D y Z z O m ti w y y p m a q I m O l0ii0 � v T 2 m m A r Q i ti ti A r 0 61 (7 A x m O A D D Z S1 { i i A x N O O 7 T J ' � r m m m m o o m 3 mmOm � d vN CD � QRm v o w Er c 3 � O A m e y P O O 0 0 N N N + + J + O O N Q N N A W O O N i O O O O p O O 3 O O O O O O O W C N N N T W m O (T O O O 0 6 1 n O A 3 3 n � N � a D A T I; N O 3 m O v p m (� a D 1 V < a N N O N 13 3 [V d !? 1Z O C O G N pNj C m Ja m V X w � N � � A N 3 n ac i a r C C a Z Z H � m m m 0 0 a ."A mm c m mm m y 171 < < N =• r m O W A M Z 0 0 ; 3 -i 9� N m e 07 H n c m za O rt m c � c 0 0 C C L A V V V N N O N 1i N A 3 0 a R _L N Q 3 ' m O a a r- 19 Appendix A POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENTS AND EARNINGS FISCAL YEARS ENDING JUNE 30, 1958 through 2000 ¢ ($ In Thousands) p % !A* �1 5 1• R r�. V q 4 3� Earnln &' '� � Ahverage�Earning Rate ,�� a3 eC�p�Pa en�� ,� F i Fiscal�Year Portfolio Ea"rnin ss, -Wert 1. SP, ea & 10 Years y_ 15: .ears`- 1957-58 $ 594,306 $ 16,421 2.76 t 1958-59 544,868 15,762 2.99 1959-60 614,835 21,045 3.42 �. 1960-61 736,204 28,139 3.82 3.23 ,I 1961-62 867,144 26,521 3.06 3.19 1962-63 910,863 30,548 3.35 3.31 ' 1963.64 896,535 32,519 3.63 3.46 1964-65 966,592 38,004 3.93 3.56 j 1965.66 1,083,347 47,761 , 4.41 3.68 3.48 �I 1966-67 1,057,800 52,540 4.97 4.06 3.62 1967-68 1,117,717 56,566 5.06 4.40 3.85 (�I 1968-69 1,301,302 78,174 6.01 4.88 4.17 1969-70 1,216,414 84,781 6.97 5.48 4.52 ICI 1970-71 1,264,894 77,527 6.13 5.83 4.75 4.32 ! 1971-72 1,397,464 68,350 4.89 5.81 4.93 4.35 � ! 1972-73 2,254,401 125,116 5.55 5.91 5.15 4.54 " 1973-74 2,594,629 232,780 8.97 6.50 5.69 4.94 1 • 1'. 1974-75 2,749,431 238,298 8.67 6.84 6.16 5.29 1'- 1975-76 3,209,143 204,303 6.37 6.89 6.36 5.46 19 1976-77 4,460,487 261,657 5.97 7.08 6.45 5.65 �I. 1977-78 6,843,940 458,625 6.70 7.31 6.61 5.87 i;. 1978-79 8,123,266 692,417 8.52 7.22 6.86 6.20 1979-80 9,285,941 873,469 10.54 7.60 7.22 6.64 'III 1980-81 7,298,693 786,877 10.78 8.48 7.69 7.07 1981-82 5,234,524 631,968 12.07 9.72 8.40 7.54 jV 1982.83 5,254,589 549,229 10.45 10.47 8.89 7.90 1983-84 7,094,849 738,462 10.41 10.85 9.04 8.19 1984-85 11,903,660 1,275,503 10.72 10.99 9,24 8.44 1985-86 15,438,406 1,401,990 9.08 10.55 9.51 8.64 1986.87 19,167,196 1,425,047 7.43 9.62 9.67 8.81 I'P 1987-88 17,628,558 1,388,074 7.87 9.10 9.79 8.96 ; 1988-89 17,496,405 1,516,767 8.67 8.75 9.80 8.94 1989-90 19,558,775 1,692,905 8.66 8.34 9.61 8.94 1990-91 20,754,895 1,663,140 8.01 8.13 9.34 9.05 1991-92 21,456.433 1,329,476 6.20 7.88 8.75 9.07 1992-93 23,051,543 1,085,126 4.71 7.25 8.18 8.94 1993.94 25A33,078 1,115,660 4.39 6.39 7.57 8.67 1994-95 26,802,123 1.482,574 5.53 5.77 7.05 8.33 1995-96 26-623,196 1.519,020 5.71 5.31 6.72 7.99 1996-97 28,264.069 1,582,443 5.60 5.19 6.53 7.56 1997-98 29,344.512 1.672,382 5.70 5.38 6.32 7.25 1998-99 33.451.088 1.787.765 5.34 5.58 5.98 6.91 1999-00 1 35.029 034 1 1999.483 1 5.71 1 5.61 5.69 1 6.57 Source: The ac eruge in,estment portfolio,earnings and annual earnings rate were taken from the published T nrr¢al ftenorr of the Pooled Monvc Inre3arurnr Board for each fiscal Year. Please see the followine note. I' 9 N`71 pSVFS,TMENT�ACCOUNT'g � a rc 'SCHEDULE OF SECURITY PURC ASES BY TERMIK 4 19*I" 0 , FSscallYear =" e , 'p "^s 4. a ¢q 4 Jlres ,t aat a: A-1 MCW $Inl%hoysandS)1 2€ � �ki a ter ° a � I ' � 7Ilk J ``ate, s 'a , 'M are g r i"� "' �. ,„ q W44 N�. 4-af'$ a 'S()77(IE!'� s ; $ls � s 3��. . , a 4 t g e 7 ledt x a%x @4.; a t* + g x4 - $" a DdY =3=Years,`^v -)a..TfYlt1LS, MONTAg 'r x ]0 s 10-29Days }30-g9 a 1 Yearn Years y �„ A —9 .' 3 In xs'e£ I&um July 1999� r, $2655�996-� $107 8121 ry$1;6659 4 $799051 $SI874., g$20 716; $ T64i30 14�3 Adgust - �"' �5231976a'tsI1334;66 "3 31,486578�' If252,428, 49952' .,* 0 $r 4,355,597r �. s'7, ,r# - 3 ,� _ '` e� +a.,g ¢ & &n ig " <'�d' Saeptember.� ,653,602r a T10031 ,�"a1;610426 411714$ 25IlOz O ,.g ,*41=9 = Qetober 201r2,1609 a n 1,478 01Y >€'-66 089 789a79, 8 a s�,17�623*I t" 0 ,t , 41 34 _ k1621 138 102 031z a 8T 082236' 12]67A 241646 7;di)9,074, November X° 3 520 352 � , ir I)ecemher 014,676f 116t-152 3 363 727 263,5 325 436 r 7 58R; a�" 11a135,829 7 9'uaiy 2000 t 1459435'� �"Ir,9379721,-,}. 1230,488a%�V 4611,4e�16 487'01 = a19011a 18,245, 49 �• ap R r q+"lial .y x.,35 ` v '�,e°;� Fe any, $ 104,866 1,402 861t� a I;247 575w"4 a13fT04 86G 50 934&e 14 952;� 8 US4 a 9 7 99 riiitcha $38180431218382a &1,3t4144 �;2224>770626707 3533„ �� 1 �±r r -7- J 7 a �916 .2348 667 � r 7 497 418 " 58 979: t a a � 15,9(14290g a 2'S Q'az @ ;mr .da o i- ." tt,r yr 89 01 Maya #4°.'; Wa5333,619 1,69579071$802 , 17478= �374838-ate 89,OOly�ra12�338 ,8.�iS,4 12 51 r��TOTACm $35` 71 s $16 839 992r°" 17 862.894 .F$410333 085 120 7a41A �a 115 453�32. 6PERCEIT ( s3115% 4 Y4S9% I5.47% 35 % 3 70%� OS5.9oT� 2IQ0.011% i Source: State Treasurer's Office,Division of Investments I POOLED MONEY`INVESTMENT ACCOiTNP �� 4 as e4 d � ANALYSIS OF PORTFOLIO � `_ � �� If m'' 17r '€ °sue rlbg �4 P ,w. tl 1 G6, V—A es s e I C,u„t '�g a m1 .q #, �, E,(fecn rAverogelI #e"s Peret ¢Avemger'q° Perceni"� Percentage °Portfolio Isfe� °Of . DailX aw O,/ ' gEarnmgs 1 z ,Ytel±l€ a on 6{30/OO Portfolios xg � �` '" ^ Poitfotto Po olma: ForYear '��PorYear°$-=(In-Da s . On,6/30/00� T e°D $ecn a US°Treivmry Bilt 3tri � If $078142958' SOB > �$9203�1;ib8, 2�5r18 2 7 � °.9.,�'�>`11 �a 2606607'214' 741 139,555,238,t 9f,535 r 412 y x Sg39 a OS TrensurP Bonds&NaWjp%�a `^'re 'he s r v 7 64 ederalrAgenay Cpn Securities e -e:,-3456t02S,2630 487, ^- 3t90656:742 x� stSy.52 A 472 We'Si R >l edeM AgenyDiscountANotes ' 4 627 3b'2 742 13.21 267 117 i �...X4 �MAYtTI, ' 31 � g 1512'1i5� '+ 0� � 1794544 .,� t'1:&6 ,! 438t0.00 " ' F'Nt.h7C ,grr rr" .ar r14486,5 `L" 0.04`d€ 1 e a.. a m 4 381 'isl�Q 03§ 1 Neguti Me Ctk; r e 506 612,99 '21443�. r-438 004�61b4 A r 5.83 '� r �ie TBemnek eDrse'pSloescicsplanre es� aa__' .s r.� yr` �-s,-.?e � ' �a � {��swP."p ,r;'0y g1-6T gaeg:+ 510e s"" 2 rrr820735.gq3 � aa805 ME 152 310 #3 33e98 6 " 6 60 F, I C mmiribalraper 4 k8341655 602 3822 i 492965 S16t �;91 �h�-0� y58 24 9 '� Corporate Bonds � �&# ^'p 2 6S8 056 464, 7 59 ,�r,156 124r108 r5$7 �§$ 423 ili '°' +,5 73�-�-i Reverse Repurchase Agreement, - 'r-(836246,642 % 239 xa �`�(42 7 23 5161 ,t 5:11 *` °"359 Eyr.r n'^ 000,E �BSS Lomas ��"^�' �`� s 2 005 213 439� r 5.72�i 3'y 108475g,76t2t 541 273�r ,g t,=499 , TOTAL P&RYT_tF0LJO $35,029,034018 $1 999 4$2 831 ` 5.71.% _# .201 is 100%r i Source: State Treasurer's Office,Division of Investments r n . I STA ii- ` OF LIFORNIA PHILIP ANGELIDES, Treasurer OF' ICE F THE TREASURER SACRAMENTO Cirr OF PN VI DESERT Local Agency Investment F>N&',"ICE DEFAR I MEN' PO Box 942809 Sacramento,CA 94209-00Q1�':} R*i'i' { 2 M 1: 40 (916) 653-3001 December, 2000 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 24,710,565.52 Total Withdrawal : 0.00 Ending Balance : 24,710,565.52 Page : I of 1 STATE OF j%LIFORNIA PHILIP ANGELIDES, Treasurer OFMCOOF THE TREASURER SACRAMENTO _';�(j C�� Local Agency Investment F[91i*`, CL r".n{ F'=HT PO Box 942809 Sacramento, CA 94209-00,ft � ,`s ( ? g 4 t fl (916)653-3001 December, 2000 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 12,762,337.26 Total Withdrawal : 0.00 Ending Balance : 12,762,337.26 Page : 1 of 1 STATED CALIFORNIA PHILIP ANGELIDES, Treasurer OFF14 OF THE TREASURER SP--RAMENTO Ili Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001; (916) 653-3001 January, 2001 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-12-2001 01-11-2001 QRD SYSTEM 223,037.26 01-26-2001 01-26-2001 RD 732847 THOMAS W. JEFFREY 16,054,000.00 Account Summa Total Deposit : 16,277,037.26 Beginning Balance : 12,762,337.26 Total Withdrawal : 0.00 Ending Balance : 29,039,374.52 Page : 1 of 1 STATE O CALIFORNIA PHILIP ANGELIDES, Treasurer OFFI(W OF THE TREASURER SACRAMENTO " Local Agency Investment Fund;. PO Box 942809 Sacramento, CA 94209-0001 ' (916) 653-3001 January, 2001 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attu: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-12-2001 01-11-2001 QRD SYSTEM 388,052.34 01-26-2001 01-26-2001 RD 515078 THOMAS JEFFREY 4,854,000.00 Account Summary Total Deposit : 5,242,052.34 Beginning Balance : 24,710,565.52 Total Withdrawal : 0.00 Ending Balance : 29,952,617.86 Page : 1 of 1 3 ir 0 .; c R •tJ C N .a p �:•C� Ft L W oc eQ� 4 RSO�Z� ,y 7.N SLS 5} (ON ' rt'O; L nc o,ea fu d• c� � xa o r oo r r O0 W e U) z h s1' W P4 4.y- Z � :S, t6,�••F'-. d• N r 00 7 O vl 01 �A f�'V (JJ W -41 ul C F a LU a O ; 6b666600 y LL ¢ Z w° �' O y Z � x-+ .� c�*-c5-;-ot c, .-s �n p .00' UF* m .*�*T.�D � ff3-O. V1 N .�» � ... O rn O ), � Wft U Y U i1lY M 7 M Vl r O N O p O O O M r`- N Q• (�5;Yk 30 �`In.GYi � 00 M N N O O O �' AM Y _ � y ep O,,,G OO<Qt b Tyf`fi W O O O O O O O U s+c-. a...c ` c o0000 b O O O O O O eYl E Pa d d ti o0 O0 O Cl xD T N pQ'j C ' T p N A'4 V O L" N v iC G 01 PALM DESERT REDEVELOPMENT AGENCY COMBINED STATEMENT REVENUE AND EXPENDITURES COMPARED TO BUDGET 31Jan-01 TOTAL RDA RDA RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 15 Tax increment 33,964,500.00 19,812,625.00 18,464,688.13 93% 1,347,936.87 2Interest 1,342,380.00 783,055.00 1,877,274.73 240% (1,094,219.73) Sales of Property - - - 0% - 3 Reimbursement From Other Agencies 1,015,000.00 592,083.33 206,972.53 35% 385,110.80 Other Revenue - 127,365.63 0% (127,365.63) Transfers to/from other funds - - - 0% - TOTAL REVENUES 36,321,880.00 21,187,763.33 20,676,301.02 511,462.31,a FAV(UNFAV) EXPENDITURES Administrative Costs 820,200.00 478,450.00 370,718.21 77% 107,731.79 Professional Services 876,477.50 511,278.54 309,162.35 60% 202,116.19 6 Property Tax Administrative Fee 546,000.00 318,500.00 577,543.00 181% (259,043.00) Cost of Inventory Sold - - - 0% - Payments to Other Governmental Agencies, 11,612,795.00 6,774,130.42 1,181,142.78 17% 5,592,987.64 Bond Issuance Costs - - - 0% - Bond Discount - - - 0% - Interest And Fiscal Charges 9,520,213.00 5,553,457.58 2,814,691.67 51% 2,738,765.91 Principal Payments I 3,030,000.00 1,767,500.00 415,000.00 23% 1,352,500.00 - 0% Capital Outlay - - - 0% - Office Equipment 10,000.00 5,833.33 5,415.55 93% 417.78 Undergrounding Projects 27,827.00 . 16,232.42 6,499.52 40% 9,732.90 Deep Canyon&Hwy 111 - - - 0% - EI Paseo Improvements 4,250,000.00 2,479,166.67 5,578.19 0% 2,473,588.48 Parking Spaces 500,000.00 291,666.67 - 0% 291,666.67 Fred Waring Dr. Street Improvements ! 2,148,532.00 1,253,310.33 463.02 0% 1,252,847.31 1-10 Cook St Interchange 250,000.00 250,000.00 250,000.00 100% - 4 No. Sphere Infrastructure ; 1,184,058.00 690,700.50 1,036,084.66 150% (345,384.16) RDA Projects 3,313,582.00 1,932,922.83 - 0% 1,932,922.83 Desert Willow 107,170.00 62,515.83 100,150.93 160% (37,635.10) Land Purchases/Property Acquisition ! 4,557,000.00 2,658,250.00 41,475.35 2% 2,616,774.65 Business Enhancement Loan Programs; 1.,000,000.00 583,333.33 - 0% 583,333.33 Regional Park N4 i 5,000,000.00 2,916,666.67 - 0% 2,916,666.67 0% Transfers - - - 0% - Transfer Out Administrative Costs - - - 0% - 3 Transfer(In)/Out Capital Exp Reimb (920,000.00)' (536,666.67) - 0% (536,666.67) 5 Transfer Out Low/Mod Set-Aside 6,680,700.00 3,897,075.00 3,692,937.63 95% 204,137.37 0% - I TOTAL EXPENDITURES 54,514,554.50 31,904,323.46 10,806,862.86 21,097,460.60 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements are posted at various times during the year. 4. Land Purchase$will be moved at mid-year 5. 20%Set Aside included here,shown as transfer out 6. Administrative fee adjusted if needed on second TI pymt. co n 0 0 O N m 0 OJ O t7 O < U N tD N y Z o o° ao o m rn M o M: LL N 2 M C5 O V; O Q0- a �O'f . N N W O it IL o o: c nI Q m m rn m' 2- 2 a a a Q V o 4 O N tn0 O CIE M m N! N Mi 0 l`0 O M N OJ ¢6 M 6 A; � N v rn N n rn n co n N� 2 O d N M V 1 (O M tq tD N Ot N N M MI } O O O O O O' O O O O 0 0 0 0 0 0 0 0 0 0 O 0. V O O O O O O O N O O 0 0 0 0 0 0 0 0 0 0 O m Z ,� O O G O O O G Ih O r Z 0 0 cV O ap N O 6 6 6 O tD of O O' O n W N M o th (5 :V N N M O A 0 0 OJ O V M h r O O O y m Z N W C _ N x m O W m o 0 J 'O °� E °-' n IL m °�' m o S m w m O rn o 07 a LL � � Emm r� Ua h W N c > w e d �'3 w e > W C F d O w m o ` E o f m F K O. E M V N N O C d > 0 � N a U N O.p p � W w o Z y .S N c a W > y c m a"i m F j 2 N O T LL W O 2 E E C a $ o = y� 3 N L s E 3 W W N W OO G>0 X >O E'O LL O 00 mU 0 O 0 OEad > K % N K 6p WJ0O Z aOJm a N Z = E ~ E `x o o Q o d m m m ~ m w W U H 2J w ~ / . ~ ° Q & ` \ o /} - [ ± J i \Lr; 6 / v It : ® ® � \ � \ � C6 \ / § � ` ~ � CL w co ° - \ co of 2 < j _ } , 2 � r § k \ , , \ � f � - \ \ CL \ � \ \ � � \ � / \ / � \ \ \ \ �\ 0 0 : � n (0cq 00 / \ 04 E2 - _ 22Lo { )In m < � f \ 7 C) 7 $ ; , ( § - f 3 f f § f m f \ \ E (.) \ « } /) / { § ? $ < e ® - { ( < 0 C � Of / ƒ § ( { ) - - < : ) § ; z J «J § \ f 5 § * f 2 / \ \> sA - t - ) $ ? ® § e § kf § (27 § f - & Ia ƒ § # !# � 0- M eee ee J LU PALM DESERT REDEVELOPMENT AGENCY 31-Jan-01 Schedule of Revenue and Expenditures HOUSING FUND 7 YTD (FAV)UNFAV Budget Budget Actual YTD Variance REVENUES 2 Transfer in of 20% Set-Aside 6,711,700.00 3,915,158.33 3,692,937.63 222,220.71 3Interest 15,000.00 8,750.00 24,475.17 (15,725.17) Rental Income 56,000.00 32,666.67 16,698.71 15,967.96 Sales of Property - 496,000.00 (496,000.00) 1 Reimbursement From Other Agencies 2 Housing Mitigation Fees Other Revenue 12,662.88 (12,662.88) TOTAL REVENUES 6,782,700.00 3,956,575.00 4,242,774.39 (286,199.39)' EXPENDITURES FAV(UNFAV) Administrative Costs 346,550.00 202,154.17 169,629.24 32,524.93 Professional Services 293,305.00 171,094.58 20,393.17 150,701.41 Property Tax Administrative Fee - - Cost of Inventory Sold - 6 Interest And Fiscal Charges 2,639,835.00 : 1,539,903.75 1,317,391.97 222,511.78 6 Principal Payments 915,000.00 533,750.00 915,000.00 (381,250.00) Office Equipment 5,000.00 2,916.67 2,916.67 Acquisition Rehab/Resale#7 948,933.00 553,544.25 126,443.85 427,100.40 Home Improvement Program 1-6 392,691:00 ' 229,069.75 542.48 228,527.27 Santa Rosa 503,462.00 293,686.17 293,686.17 4 Property Purchases - 7,277.78 (7,277.78) 5 Desert Rose 93,279.00 f 54,412.75 312,193.97 (257,781.22) 5 Portola Palms Mobilehome Park 74,385.00 43,391.25 127,006.37 (83,615.12) Housing Development 2,000,000.00 1,166,666.67 1,166,666.67 Transfers Transfer(In)/Out Administrative Costs Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 8,212,440.00 4,790,590.00 2,995,878.83 1,794,711.17 Notes: 1 Includes prior year adjustment for tax increment calculation change 2 This transfer is done once a year only. (This is an based on actual $ rcvd) 3 Interest is posted with investment maturities or dividend payments 4 Purchase of Rental property on Santa Rosa 5 Includes re-purchases and re-sales 6 Debt Service is due 10/1 and 4/1 of each year February 21, 2001 - REGULAR INVESTMENT & FINANCE COMMITTEE MEETING VI. NEW BUSINESS E. PARKVIEW PROFESISONAL OFFICE BUILDINGS - FINANCIAL REPORT FOR JANUARY 2001 Rec: Review and file report. (REPORT TO BE DISTRIBUTED AT MEETING) G.Tinanw\Deb B2dley\wpdo MNVSTOOMnee -Vle.w d Y February 21, 2001 - REGULAR INVESTMENT & FINANCE COMMITTEE MEETING VI. NEW BUSINESS F. DESERT WILLOW GOLF RESORT FINANCIAL INFORMATION FOR DECEMBER 2000 Rec: Review and file report. (REPORT TO BE DISTRIBUTED AT MEETING) G.TinanceTeb Bmdley�wpdo Mn stcomGnsert-VH.wpd February 21, 2001 - REGULAR INVESTMENT & FINANCE COMMITTEE MEETING VI. NEW BUSINESS G. , PALM DESERT RECREATION FACILITIES CORPORATION INCOME ANALYSIS FOR DECEMBER 2000 Rec: Review and file report. (REPORT TO BE DISTRIBUTED AT MEETING) G Timnce0eb Bradley\wpdo %INVSTCOMtineO-Vig.wpd CITY OF PALM DESERT STATEMENT OF INVESTMENT POLICY 2001 Certified by the Municipal Treasurers's Association of the United States and Canada on 4 June 1996 PREPARED BY THE CITY FINANCE DEPARTMENT Thomas W. Jeffrey, J.D., M.B.A. Investment Manager REVIEWED AND APPROVED BY Paul S. Gibson, C.C.M.T. City Treasurer Adopted by the City Council on 14 December 2000 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 TABLE OF CONTENTS OVERVIEW Introduction 1 Scope 1 Standard of Care 2 Objectives 2 INVESTMENT AUTHORITY Delegation of Authority 4 Internal Controls 4 Conflicts of Interest 5 PROVIDERS OF FINANCIAL SERVICES Authorized Broker-Dealers 6 Authorized Public Depositories 8 Safekeeping and Custody 8 Collateralization 9 INVESTMENT INSTRUMENTS Authorized Investments 10 Prohibited Investments and Practices 12 Investment Pools 12 PORTFOLIO MANAGEMENT Diversification 13 Maximum Maturity 13 Portfolio Rebalancing 13 Credit Downgrading 13 Bond Proceeds 14 PERFORMANCE MEASUREMENT Portfolio Benchmark 15 Investment Reporting 15 POLICY REVIEW AND ADOPTION 16 CITY OF PALM DESERT APPROVED LIST 17 GLOSSARY OF INVESTMENT TERMS 18 ♦ i City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 I. OVERVIEW INTRODUCTION It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies. Such policies, procedures, and practices shall embody the following three principles: (1) compliance with federal, state, and local laws governing the investment of public monies under the City Treasurer's control; (2) protection of the principal monies entrusted to the City; (3) maximization of profit within the parameters of prudent risk management, as defined in this Statement of Investment Policy ("SOIP"). For the purposes of this policy, "Investment Officers" shall be defined as the City Treasurer and the City Investment Manager. SCOPE This SOIP shall apply to all funds that are under the City Treasurer's control including, but not limited to, the general fund; special revenue funds; debt service funds; capital project funds; enterprise funds; trust and agency funds; and any other funds under the City Treasurer's control. These funds are accounted for in the City's Comprehensive Annual Financial Reports. The City's Deferred Compensation Plan ("Plan") shall be excluded from the scope of this SOIP if: (1 ) a third-party administrator manages the Plan; (2) individual plan participants have control over the selection of investments; and (3) the City has no fiduciary responsibility to act as a "trustee" for the Plan. The only exception to the foregoing shall be that if the City retains the fiduciary responsibility to act as a trustee for the Plan, then the Plan shall be deemed to be within the scope of this SOIP. Under all circumstances, the City Treasurer shall provide the Finance Committee and the City Council with a quarterly report on the investment of Plan assets. Page 1 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 STANDARD OF CARE Investment Officers as trustees of public monies shall adhere to the "prudent investor" standard when managing the City's investment portfolios. They shall invest "...with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." Investment Officers who follow the provisions of this SOIP and who exercise due diligence shall be relieved of personal responsibility for a security's credit risk or market price risk: provided, that they report substantial deviations from expectations to the City Manager and to the City Finance Committee ("Finance Committee") in a timely manner, and that they take appropriate action to control adverse developments. "Substantial deviations" shall be defined as either a decline of 10 percent or more in the market value of a security due to issuer default or a credit risk downgrade; or the sale of a security prior to maturity at 10 percent or more below its acquisition cost. OBJECTIVES The City's investment objectives, in order of priority, shall be: 1. Safety. Safety of principal shall be the foremost objective. Investments shall be made with the aim of avoiding capital losses due to issuer default; broker- dealer default; or market value erosion. Principal shall be preserved by mitigating: A. Credit Risk, the risk of loss due to the failure of the issuer of the security, shall be mitigated by investing in only the highest quality securities; by diversifying investments; and by pre-qualifying broker-dealers and public depositories; and B. Market Risk, the risk of loss due to a decline in bond prices because of rising market interest rates, shall be mitigated by structuring the portfolios so that issues mature concurrently with the City's anticipated cash requirements, thereby eliminating the need to sell securities prematurely on the open market. Page 2 of 23 Y City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 It is recognized, however, that in a diversified portfolio, occasional measured losses are inevitable, and must be considered within the context of overall investment return. 2. Liquidity. An adequate percentage of the portfolios shall be maintained in liquid, short-term securities that can be converted to cash, if necessary, to meet disbursement requirements. Since all cash requirements cannot be anticipated, the portfolios should consist largely of securities with active secondary markets. These securities should have a relatively low sensitivity to market risk. Maximum overall portfolio maturities are referenced on page 13, paragraphs 2 and 3 of this SOIP. 3. Yield. Yield shall be considered only after the basic requirements of safety and liquidity have been met. Whenever possible and in a manner consistent with the objectives of safety and liquidity, a yield higher than the market rate of return shall be sought. Page 3 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 II. INVESTMENT AUTHORITY DELEGATION OF AUTHORITY California Government Code Sections 53607 and 53608 authorize the legislative body of a local agency to invest, deposit, and provide for the safekeeping of the local agency's funds or to delegate those responsibilities to the treasurer of the local agency. City of Palm Desert Municipal Code Section 3.08.010 delegates the authority to invest, deposit, and provide for the safekeeping of City public monies to the City Treasurer. City of Palm Desert Municipal Code Section 2.16.010 authorizes the City Director of Finance to serve ex officio as City Treasurer. The City Treasurer shall be responsible for all investment transactions that are executed on behalf of the City. The City Treasurer and the Investment Manager shall have exclusive authority to buy and sell securities on behalf of the City. They shall engage in mutual consultation and in collective decisionmaking on economic trends, investment opportunities, and portfolio structuring. The Investment Manager may execute investment transactions on behalf of the City only if the City Treasurer has previously authorized the transactions. If the City Treasurer is unavailable, then the Finance Operations Manager must authorize the investment transactions prior to execution. INTERNAL CONTROLS The City Treasurer shall ensure that all investment transactions comply with the . City's SOIP, and shall establish internal controls that are designed to prevent losses due to fraud, negligence, and third-party misrepresentation. Accordingly, the City Treasurer shall establish written procedures for the operation of the City's investment program that are consistent with the provisions of this SOIP. Internal controls deemed most important shall include: avoidance of collusion; separation of duties and administrative controls; separating transaction authority from accounting and record keeping; custodial safekeeping; clear delegation of authority; management approval and review of investment transactions; specific limitations regarding securities losses and remedial action; written confirmation of Page 4 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 telephone transactions; documentation of investment transactions and strategies; and monitoring of results. The City Treasurer shall establish an annual process of independent review by an external audit firm. The external auditor shall review the management of the City's investment program in terms of compliance with the internal controls previously established in the City's Treasury Policies and Procedures Manual. A Finance Committee consisting of City officials and community representatives shall be responsible for reviewing the City investment reports, transactions, policies and procedures, and strategies, on a monthly basis. The Mayor; the Mayor Pro Tempore; the City Manager; the City Attorney; the Redevelopment Agency Executive Director; the City Treasurer; the Investment Manager; and various citizens who are appointed by the Palm Desert City Council ("City Council") pursuant to City ordinance, shall sit on this committee. CONFLICTS OF INTEREST Investment Officers shall refrain from personal business activity that could conflict with the proper execution of the City's investment program or impair their ability to make impartial investment decisions. They shall disclose to the City Council any P Y material financial interest in financial institutions that conduct business within the City's jurisdiction. They shall also disclose any personal investment positions that could be related to the performance of the City's investment portfolios. Investment Officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of securities purchases and sales, and shall avoid transactions that might impair public confidence. Investment Officers and their immediate relatives shall not accept or solicit any gifts, gratuities, honorariums, or favors from persons or entities who provide or who are seeking to provide financial services to the City. Page 5 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 III. PROVIDERS OF FINANCIAL SERVICES AUTHORIZED BROKER-DEALERS The City Treasurer shall maintain an Approved List (see page 17) of all securities broker-dealers that the Finance Committee and the City Council have authorized to engage in securities trading with the City. This list shall be provided to all members of the City Council and the Finance Committee. Any broker-dealer that has made a political contribution within any consecutive four-year period following 1 January 1996 in an amount that exceeds the limits in Municipal Securities Rulemaking Board ("MSRB") Rule G-37, to any member of or candidate for the City Council, the Redevelopment Agency Board, the Housing Authority Commission, or the Finance Committee shall not be eligible to transact business with the City. Only primary government securities dealers ("primary dealers") that regularly report to the Federal Reserve Bank of New York shall be eligible to apply for inclusion on the Approved List. The only exception to the foregoing requirement shall be that the Finance Committee and the City Council may, at their discretion, accept, review, and approve applications from regional brokers that: (1) have been in existence for more than five years; (2) have a net capital position in excess of $100 million; (3) are licensed as broker-dealers by the State of California; and (4) are headquartered or have a branch office in California. The number of primary dealers and regional brokers on the Approved List shall not exceed a combined total of six at any single time. The City shall accept and review new broker-dealer applications only when there is an immediate need to fill a vacancy on the Approved List. In all cases, the City shall only accept applications from and transact business with the institutional securities sales departments of primary dealers and regional brokers. Page 6 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 All broker-dealers that wish to apply for inclusion on the Approved List must, at a minimum, provide the City Treasurer with a copy of the following documents, unless otherwise noted: 1 . Completed Broker-Dealer Questionnaire and Certification (signed original only). 2. Most recent Annual Report and most recent Securities and Exchange Commission ("SEC") Form 10-K. 3. National Association of Securities Dealers ("NASD") Form BD Uniform Application for Broker-Dealer Registration or, in the case of an investment department within a commercial bank, SEC Form MSD. 4. Current NASD Form BD Status Report. 5. NASD Form U-4 -- Uniform Application for Securities Industry Registration or Transfer for each employee with whom the City would be trading. 6. Current NASD Form U-4 Status Report on each employee with whom the City would be trading. 7. A resume from each employee with whom the City would be trading. 8. Delivery instructions. 9. A resolution that identifies employees who are authorized to trade. In addition to the above documents, regional brokers must also submit: 10. Most recent SEC Form X-77 A-5 or, in the case of an investment department within a commercial bank, most recent SEC Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices — FFIEC 031. Investment Officers shall investigate all broker-dealer applicants in order to determine if they: (1 ) are adequately capitalized; (2) are subject to pending legal action (either the firm or the trader); (3) make markets in securities that are appropriate for the City's needs; (4) are licensed as a broker-dealer by the State of California Department of Corporations; and (5) are a member of the NASD. Broker- dealer applicants may be requested to provide local government or other client references from within California. The Finance Committee and the City Council shall review the submitted documents, along with the Investment Officers's recommendations, and shall decide if any broker-dealer applicants should be added to the Approved List. If a broker-dealer applicant fails to complete and submit the required documents on time, then its application shall be deemed to have been automatically rejected. Page 7 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 The City Treasurer shall conduct an annual review, in March, of the financial condition and the registrations of all approved broker-dealers in order to determine whether they should remain on the Approved List. In addition to other requirements, the City shall give all approved broker-dealers a copy of the City's current SOIP and a certification form. The completion and submission of the certification form by an approved broker-dealer shall constitute proof that it has received the City's SOIP, read it, and intends to comply with it. The City Treasurer shall keep current audited annual financial statements on file for each approved broker-dealer with which the City does business. AUTHORIZED PUBLIC DEPOSITORIES The City Treasurer shall maintain an Approved List (see page 17) of all commercial banks, savings associations, and federal associations (as defined by California Financial Code Section 5102) that the Finance Committee and the City Council have authorized as public depositories of City monies. This List shall be provided to all members of the City Council and the Finance Committee. The City shall only deposit public monies in financial institutions that have: (1) at least $5 billion in total assets; (2) a core capital-to-total assets ratio of at least five percent; (3) favorable statistical ratings from a nationally recognized rating service, as determined by the City Treasurer; (4) a federal or a state charter; (5) a branch office within Riverside County; and (6) received a "satisfactory" overall rating in their most recent evaluation by the appropriate federal financial supervisory agency, in terms of meeting the credit needs of California communities, pursuant to federal law. Under no circumstances shall the City's deposits in a financial institution exceed the total shareholders's equity of that institution. SAFEKEEPING AND CUSTODY Investment Officers shall conduct all security transactions on a delivery-versus- payment ("DVP") or on a receipt-versus-payment ("RVP") basis. A third-party bank trust department ("Custodian") that acts as an agent for the City under the terms of a custody agreement executed between both parties shall hold the securities. The City's Custodian shall be represented on the Approved List (see page 17). Page 8 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 The only exception to the foregoing shall be securities purchases made with: (1) local government investment pools; (2) money market mutual funds; and (3) Federal Reserve Banks ("Treasury Direct Program") since the purchased securities are not deliverable. No securities broker-dealer or investment advisor shall have access to City monies, accounts, or investments. Any transfer of monies to or through a securities broker- dealer.must have the City Treasurer's prior written approval. If the City Treasurer is unavailable, then the Finance Operations Manager must authorize the transfer, in writing. The City shall require Broker Trade Confirmations for all trades. Investment Officers shall review these confirmations immediately upon receipt, for conformity with the terms of the City's Trade Sheets. COLLATERALIZATION Investment Officers shall ensure that all demand deposits and all non-negotiable certificates of deposit that exceed $100,000 shall be fully collateralized with securities authorized under state law and under this SOIP. Collateral may be waived for the first $100,000 since this will be insured by the Federal Deposit Insurance Corporation. Any amount on deposit over $100,000 plus accrued interest, however, shall be collateralized with United States Treasury or federal agency securities at a constant margin ratio of 110 percent or with mortgage- backed collateral at a constant margin ratio of 150 percent. Collateralized investments and demand deposits may require substitution of collateral. The City Treasurer must approve all requests from financial institutions for substitution of collateral that involve interchanging classes of security. An independent third party with which the City has a current custodial agreement shall always hold the collateral. The independent third party shall provide the City Treasurer with a safekeeping receipt that he shall retain. Page 9 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 IV. INVESTMENT INSTRUMENTS AUTHORIZED INVESTMENTS The City is authorized to invest in the following financial instruments pursuant to California Government Code Section 53600 at seq., The City's investment policy is more conservative than state law. 1 . United States Treasury Bills, Notes, Bonds, and Certificates of Indebtedness that are issued by the United States Government. There shall be no concentration limit on the purchase of such securities. 2. Federal Agency and Instrumentality Notes that are issued by the Federal Farm Credit Bank; the Federal Home Loan Bank; the Federal Home Loan Mortgage Corporation; the Federal National Mortgage Association; the Tennessee Valley Authority; the Export-Import Bank of the United States; the Small Business Administration; the Student Marketing Loan Association; and the Farm Credit Consolidated System. Purchases of callable securities shall not exceed 20 percent of the book value of the City's investment portfolio. Purchases of callable securities shall not exceed more than 10 percent of the book value of the City's investment portfolio (excluding the gross proceeds of tax-exempt bonds) in any one year. No more than 30 percent of the book value of the City's investment portfolio. (excluding the gross proceeds of tax-exempt bonds) may be invested in any one issuer. 3. Medium-Term Notes ("MTN") rated "A" or better by Standard & Poor's Corporation ("Standard & Poor's") or by Moody's Investors Service, Inc. ("Moody's"), that are issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or by any state and operating within the United States. Purchases of MTNs shall not exceed 30 percent of the book value of the City's investment portfolio. No more than five percent of the book value of the City's investment portfolio shall be invested in the MTNs of any one issuer, except for MTNs that are rated 'AAA" by Standard & Poor's and by Moody's. In such cases, the maximum concentration limit per issuer shall be 15 percent. Commercial paper holdings shall be included when calculating the maximum concentration amount for any one issuer. Page 10 of 23 Y City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 4. Prime Bankers's Acceptances ("BA") that are issued by commercial banks rated "A" or higher by Standard & Poor's and by Moody's. Purchases of BAs shall not exceed 180 days to maturity. Purchases of BAs shall not exceed 40 percent of the book value of the City's investment portfolio. No more than 30 percent of the book value of the City's investment portfolio shall be invested in BAs issued by any one bank. 5. Non-Negotiable Certificates of Deposit ("NNCD") that are collateralized and that are issued by qualified public depositories that meet the criteria specified on page 8, paragraph 3 of this "SOIP". NNCDs shall be centralized at one designated office location for each financial institution. NNCDs that exceed $100,000 shall be collateralized pursuant to the collateralization provisions of this SOIP. Purchases of NNCDs shall not exceed one year to maturity. No more than 15 percent of the book value of the City's investment portfolio shall be invested in NNCDs, if collateralization will not be involved, then no more than $90,000 may be invested in any one issuer. 6. Prime Commercial Paper ("CP") that has a minimum rating of "Al " by Standard & Poor's or "P1 " by Moody's. The issuing corporation must be organized and operating in the United States; have total assets of $500 million or more; and have debt, other than commercial paper, if any, that has been rated "A" or higher by Standard & Poor's or by Moody's. Purchases of CP shall not exceed 270 days to maturity. No more than 15 percent of the book value of the City's investment portfolio shall be invested in CP. No more than 10 percent of the outstanding CP of any one issuer shall be purchased. 7. Negotiable Certificates of Deposit ("NCD") that are issued by a nationally- or state-chartered bank; a savings association or a federal association; or a state-licensed branch of a foreign bank, with long-term debt that has been rated "AA" or higher by Standard & Poor's and by Moody's. No more than 30 percent of the City's investment portfolio may be invested in NCDs. 8. Money Market Funds ("MMF") that are registered with the SEC under the Investment Company Act of 1940. In seeking to maintain a stable share price of $1 .00, the MMF shall have a dollar-weighted average maturity of 90 days or less and shall purchase securities with an effective maturity of 13 months or less. Commission (e.g., sales load on purchases, reinvested dividends, redemptions, and exchanges) shall not be included in the purchase of any fund shares. A qualifying MMF must have: (1) total portfolio net assets of $500 million or more, and (2) the highest rating of the two largest Page 11 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 nationally recognized rating services OR an investment advisor who is registered with the SEC, and who has five years's or more of experience investing for MMFs of $5OO million or more in total portfolio net assets. The City shall require audited annual financial statements and a "Statement of Additional Information" from each MMF in which it has public monies invested. No more than 20 percent of the book value of the City's investment portfolio (excluding the gross proceeds of tax-exempt bonds) may be invested in MMFs. 9. Local Agency Investment Fund 1"LAIF"►, a pool that is organized and managed by the State Treasurer's Office for the benefit of local agencies, pursuant to California Government Code Section 16429.1 . The City Council and the Redevelopment Agency Board approved City participation in LAIF on 12 December 1981 in Resolution Number 81-161 . Investment shall be limited to the maximum amount per legal entity that is permitted under state la w. PROHIBITED INVESTMENTS AND PRACTICES Investment Officers shall not invest public monies in financial instruments that are not authorized under this SOIP. Prohibited investments shall include, but shall not be limited to, equity securities, bond mutual funds, repurchase agreements, reverse repurchase agreements, and derivative contracts (forwards, futures, and options). The purchase of derivative securities shall be prohibited except for callable and for zero coupon Treasury ("STRIPS") securities. Investment Officers shall not engage in securities lending, short selling, or other hedging strategies. LAIF and MMFs shall be exempt from the prohibitions on derivative contracts, derivative securities, repurchase agreements, reverse repurchase agreements, securities lending, short selling, and other hedging strategies. INVESTMENT POOLS Investment Officers shall investigate all local government investment pools ("LGIPs") prior to investing public monies and periodically thereafter while City public monies are invested in the LGIP. With the exception of LAIF, all LGIPs shall meet the criteria specified for money market funds in this SOIP. Page 12 of 23 Y City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 V. PORTFOLIO MANAGEMENT DIVERSIFICATION Investment Officers shall diversify the City's investment portfolios by security type and by issuer, except for bond reserve monies; bond escrow monies; and any other monies that the City Council or the Finance Committee designates. MAXIMUM MATURITY Investment Officers shall not invest in securities with maturities exceeding five years. The Finance Committee and the City Council, however, may approve longer maturities for the investment of bond reserve, bond escrow, and other funds if the maturities of such investments are expected to coincide with the expected use of the funds. At least 50 percent of the City portfolio shall mature in three years or less; 30 percent in two years or less; and 20 percent in one year or less. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. PORTFOLIO REBALANCING In the event that portfolio percentage constraints are violated due to a temporary imbalance in the portfolio, then Investment Officers shall hold the affected securities to maturity in order to avoid capital losses. if no capital losses would be realized upon sale, however, then Investment Officers shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City investment portfolio; a small, temporary imbalance will not significantly impair that strategy. CREDIT DOWNGRADING This SOIP sets forth minimum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits. Page 13 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 If a security is downgraded below the minimum credit risk criteria specified in this SOIP, then Investment Officers shall evaluate the downgrade on a case-by-case basis in order to determine the security should be held or sold. The City Treasurer shall inform the Finance Committee at its next monthly meeting of the credit downgrade and of the Investment Officers's decision to hold or sell the downgraded security. Investment Officers shall review the credit standing of all securities in the City's investment portfolios on a semiannual basis. BOND PROCEEDS The City Treasurer shall segregate the gross proceeds of tax-exempt bonds from the City general pool and shall keep them in a separate pool. They shall be invested pursuant to the instructions in the respective bond indentures of trust. If the bond indenture authorizes investments that conflict with this SOIP, then such investments shall be made only with the Finance Committee's prior approval. All securities shall be held in third-party safekeeping with the bond trustee ("Trustee") and all DVP and RVP rules shall apply. The Trustee shall be represented on the Approved List (see page 17). Investment Officers shall use competitive offerings, whenever practical, for all investment transactions that involve the gross proceeds of tax-exempt bonds. The City shall obtain a minimum of three competitive offers. Any exceptions to this policy shall be documented and shall be reported to the Finance Committee at its next monthly meeting. The City is required under the "U.S. Tax Reform Act of 1986" to perform annual arbitrage calculations and to rebate excess earnings to the United States Treasury from the investment of the gross proceeds of tax-exempt bonds that were sold after the effective date of that law. The City Treasurer may contract with qualified outside financial consultants to provide the necessary technical expertise that is required to comply with this law. Page 14 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 VI. PERFORMANCE MEASUREMENT PORTFOLIO BENCHMARK The City's investment portfolios, for the most part, shall be passively managed with portfolio securities being held to maturity. On selected occasions, the City's portfolios may be actively managed for purposes of improving portfolio risk structure, liquidity, or yield in response to market conditions or to meet City requirements. Profit-taking may only be done if capital gains would: (1) exceed the return that would be realized by holding the security to maturity; and (2) more than offset any income reduction due to reinvestment rate risk. The City shall adopt a benchmark that approximates the composition and weighted- average maturity of each City portfolio, in order to measure whether or not the City's portfolio yields are matching or surpassing the market yield. INVESTMENT REPORTING The City Treasurer shall provide the Finance Committee and the City Council with a monthly investment report within 30 days of month-end or at the next scheduled City Council meeting following a Finance Committee meeting. This report shall include a complete portfolio inventory with details on issue, par value, book value, coupon/rate, original settlement date of purchase, final maturity date, CUSIP number, average weighted yield, average days to maturity, and market value (including source of market valuation). The report will include a statement on compliance or noncompliance with the City's SOIP and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months. The City Treasurer shall provide the California Debt and Investment Advisory Commission ("CDIAC") with second- and fourth-quarter fiscal year investment reports within 60 days of those quarter-ends. Likewise, the City Treasurer shall also provide CDIAC with the City's SOIP within 60 days of calendar year-end or within 60 days of any amendment thereto. Page 15 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 VII. POLICY REVIEW AND ADOPTION The City Treasurer shall submit a SOIP to the Finance Committee; the City Council; the Redevelopment Agency Board; the Housing Authority Commission; the Financing Authority Commission; and the Recreational Facilities Corporation Board of Directors annually for their review and adoption. The City Treasurer shall submit the SOIP to the Finance Committee by 30 November of each year. Page 16 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 VIII. THE CITY OF PALM DESERT APPROVED LIST The City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation have authorized the following securities broker- dealers and other financial institutions to provide financial services to the City. UNITED STATES GOVERNMENT 1 . Federal Reserve Bank PRIMARY DEALERS 1 . Banc of America Securities LLC 2. Chase Securities, Inc. 3. Merrill Lynch & Company, Inc. 4. Morgan Stanley Dean Witter & Company 5. Salomon Smith Barney, Inc. REGIONAL BROKERS 1 . Wells Fargo Bank PUBLIC DEPOSITORIES 1 . Bank of America 2. California Federal Bank 3. Downey Savings & Loan 4. Northern Trust Bank 5. Union Bank of California 6. Washington Mutual Bank 7. Wells Fargo Bank CUSTODIAN 1 . Union Bank of California TRUSTEE 1 . Bank of New York Page 17 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 IX. GLOSSARY OF INVESTMENT TERMS AGENCIES. Federal agency and instrumentality securities. ASKED. The price at which securities are offered. BANKERS'S ACCEPTANCE ("BA"). A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting institution guarantee payment of the bill. BID. The price offered by a buyer of securities (when one sells securities, one asks for a bid). See "Offer". BROKER. A broker brings buyers and sellers together so that he can earn a commission. CERTIFICATE OF DEPOSIT ("CD"). A time deposit with a specific maturity, as evidenced by a certificate. Large-denomination CDs are typically negotiable. COLLATERAL. Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT ("CAFR"). The official annual report for the City of Palm Desert. It includes five combined statements for each individual fund and account group, that are prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON. (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond, that evidences interest due on a payment date. DEALER. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE. A bond secured only by the general credit of the issuer. Page 18 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 DELIVERY VERSUS PAYMENT. There are two methods of delivery of securities: (1 ) delivery versus payment (DVP); and (2) delivery versus receipt '(DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is . delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES. (1) Financial instruments that are linked to, or derived from, the movement of one or more underlying indexes or securities, and may include a leveraging factor; or (2) financial contracts based upon a notional amount whose value is derived from an underlying index or security (e.g., interest rates, foreign exchange rates, equities, or commodities). DISCOUNT. The difference between the acquisition cost of a security and its value at maturity, when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES. Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION. Dividing investment funds among a variety of securities that offer independent returns. FEDERAL CREDIT AGENCIES. Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION ("FDIC"). A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE. The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS ("FHLB"). Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA"). FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Page 19 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are wide) accepted. 9 Y q Y P FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE ("FOMC"). The FOMC consists of seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM. The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ("GNMA" or -Ginnie Mae-). Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LIQUIDITY. A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT FUND ("LAIF"). Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE. The price at which a security is trading and could presumably be purchased or sold. Page 20 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 MASTER REPURCHASE AGREEMENT. A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements, that establishes each. party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY. The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET. The market in which short-term debt instruments (e.g., bills, commercial paper, bankers's acceptances) are issued and traded. OFFER. The price asked by a seller of securities (when one buys securities, one asks for an offer). See 'Asked" and 'Bid". OPEN MARKET OPERATIONS. Purchases and sales'of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO. A collection of securities that an investor holds. PRIMARY DEALER. A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE. An investment standard. A fiduciary, such as a trustee, may invest in a security if it is one that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES. A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. Page 21 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 RATE OF RETURN. The yield obtainable on a security based on its purchase price or its current market price. REPURCHASE AGREEMENT ("RP" OR "REPO"). A holder of securities sells them to an investor with an agreement to repurchase the securities at a fixed price on a fixed date. The security "buyer", in effect, lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money (increasing bank reserves). SAFEKEEPING. A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET. A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION. An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. SEC RULE 15c3-1. See "Uniform Net Capital Rule". STRUCTURED NOTES. Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative-based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. TREASURY BILLS. A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year. TREASURY BONDS. Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES. Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. Page 22 of 23 City of Palm Desert Effective Date: 12-14-00 Statement of Investment Policy Supersedes: 11-18-99 UNIFORM NET CAPITAL RULE. SEC requirement that member firms, as well as non-member broker-dealers in securities, maintain a maximum ratio of indebtedness-to-liquid capital of 15 to one. Also called net capital rule and net capita ratio. Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securities (one reason that new public issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted into cash. YIELD. The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. Page 23 of 23 FRIENDS OF THE CULTURAL CENTEP,INC. PALM DESERT,CALIFORNIA INDEPENDENT AUDITORS'REPORT AND COMBINED FINANCIAL STATEMENTS JULY 31,2000 LUND&GUTTRY LLP /CERTIFIED PUBLIC ACCOUNTANTS 39700 BOB HOPE DRIVE • SUITE 309• P.O.BOX 250• RANCHO MIRAGE,CA 92270-0250 Telephone(760)568-2242• Fax(760)346-8891 E-Mail:cpas®lundandguttry.com •www.lundandguttry.com INDEPENDENT AUDITORS' REPORT Board of Trustees Friends of the Cultural Center, Inc. Palm Desert, California We have audited the accompanying Combined Statements of Financial Position of Friends of the Cultural Center, Inc. as of July 31, 2000 and 1999, and the related Combined Statements of Activities, Functional Expenses and Cash Flows for the years then ended. These combined financial statements are the responsibility of the Center's management. Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the combined financial statements referred to above present fairly, in all material respects, the financial position of Friends of the Cultural Center, Inc. as of July 31,2000 and 1999, and the changes in their net assets and their cash flows for the years then ended in conformity with generally accepted accounting principles. October 18,2000 (1) Palm Springs Office • (760)325-5561 THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL l QTER.INC. COMBINED STATEMENTS OF FINANCIAL POSITION JULY 31,2000 AND 1999 ASSETS 2000 McCallum Friends of Theatre the Cultural Endowment, Center,Inc. Inc. Combined CURRENT ASSETS Cash and cash equivalents $ 115,238 $ 1,604,089 $ 1,719,327 Accounts receivable 73,911 - 73,911 Pledges receivable(net) -Note 4 301,000 - 301,000 Inventory-Note 5 238,498 - 238,498 Other current assets 18,617 - 18,617 Note receivable 60,161 - 60,161 Note receivable-designated-Note 6 100,000 - 100,000 Due from related parties-Note 14 72,354 85,464 157,818 Total current assets 979,779 1,689,553 2,669,332 NOTE RECEIVABLE-DESIGNATED -Note 6 100,000 - 100,000 PROPERTY AND EQUIPMENT(NET)-Note 7 12,948,893 - 12,948,893 INVESTMENTS-Note 8 100,000 - 100,000 DUE FROM RELATED PARTIES-Note 14 - 626,626 626,626 PLEDGES RECEIVABLE -Note 4 328,375 - 328,375 TOTAL ASSETS $14,457,047 $ 2,316.179 $16.773.226 (The accompanying notes are an integral part of these financial statements) (2) 1999 McCallum Friends of Theatre the Cultural Endowment, Center, Inc. Inc. Combined $ 77,377 $ 1,467,050 $ 1,544,427 26,175 - 26,175 552,607 - 552,607 198,558 - 198,558 108,837 - 108,837 60,161 - 60,161 100,000 - 100,000 68,345 66,666 135,011 1,192,060 1,533,716 2,725,776 200,000 - 200,000 13,179,345 13,179,345 100,000 - 100,000 - 626,626 626,626 349,625 349,625 $15,021,03 $ 2,160.342 $17,181,372 THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL C iTEM INC. COMBINED STATEMENTS OF FINANCIAL POSITION JULY 31,2000 AND 1999 LIABILITIES AND NET ASSETS 2000 McCallum Friends of Theatre the Cultural Endowment, Center,Inc. Inc. Combined CURRENT LIABILITIES: Accounts payable $ 91,756 $ - $ 91,756 Revolving line of credit-Note 10 800,000 - 800,000 Notes payable-related parties-Note 11 1,910,000 - 1,910,000 Current portion of obligations under capital leases-Note 12 82,082 - 82,082 Other current liabilities 104,466 - 104,466 Deferred revenue-tickets-Note 9 1,369,561 - 1,369,561 Deferred revenue-memberships&other 133,250 - 133,250 Due to related parties-Note 14 85,464 72,354 157,818 Total current liabilities 4,576,579 72,354 4,648,933 LONG-TERM LIABILITIES Notes payable-Note 11 3,000,000 - 3,000,000 Obligations under capital leases -Note 12 131,565 - 131,565 Due to related parties-Note 14 626,626 - 626,626 TOTAL LIABILITIES 8,334,770 72,354 8,407,124 NET ASSETS Unrestricted-Undesignated 5,292,902 228,836 5,521,738 Unrestricted-Designated-Note 6 200,000 - 200,000 Temporarily restricted-Note 13 629,375 - 629,375 Permanently restricted-Note 13 2,014,989 2,014,989 TOTAL NET ASSETS 6,122,277 2,243,825 8,366,102 TOTAL LIABILITIES AND NET ASSETS $14,457,047 11IL6 179 $16,773,226 (The accompanying notes are an integral part of these financial statements) (3) 1999 McCallum Friends of Theatre the Cultural Endowment, Center, Inc. Inc. Combined $ 75,703 $ $ 75,703 1,500,000 1,500,000 74,627 74,627 53,599 53,599 1,477,331 1,477,331 18,046 - 18,046 66,666 68,345 135,011 3,265,972 68,345 3,334,317 3,000,000 - 3,000,000 213,647 213,647 626,626 626,626 7,106,245 68,345 7,174,590 6,712,553 202,499 6,915,052 300,000 - 300,000 902,232 - 902,232 1,889,498 1,889,498 7,914,785 2,091,997 10,006,782 $ 15.021.030 $ 2,160,342 $17,181,372 THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL C 4TER. INC. COMBINED STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JULY 31.2000 AND 1999 2000 McCallum Friends of Theatre the Cultural Endowment, Center Inc. Inc. Combined CHANGES IN UNRESTRICTED NET ASSETS: REVENUE AND SUPPORT FROM OPERATIONS: Production $ 4,533,822 $ $4,533,822 Marketing 150 150 Development-Note 16 1,180,473 1,180,473 Interest and other fmancial income 55,329 91,160 146,489 Other 59,523 59,523 Total revenue & support from operations 5,829,297 91,160 5,920,457 NET ASSETS RELEASED FROM RESTRICTIONS: Expiration and allocation of restrictions 666,482 (57,991) 608,491 Total net assets released from restrictions 666,482 (57,991) 608,491 Total unrestricted revenues and support 6,495,779 33,169 6,528,948 EXPENSES: Production costs 4,555,177 - 4,555,177 Marketing 698,043 - 698,043 Development 684,617 - 684,617 General and administrative 1,572,932 6,832 1,579,764 Depreciation 504,661 - 504,661 Total expenses 8,015,430 6,832 8,022.2 INCREASE(DECREASE)IN UNRESTRICTED NET ASSETS $0,519,651) 26 337 $(1,493,314) (The accompanying notes are an integral part of these financial statements) (4) 1999 McCallum Friends of Theatre the Cultural Endowment, Center, Inc. Inc. Combined $ 5,107,485 $ $ 5,107,485 19,133 19,133 1,261,183 1,261,183 39,830 71,032 110,862 62,607 24,378 86,985 6,490,238 95,410 6,585,648 718.028 (45,446) 672,582 718,028 (45,446) 672,582 7,208,266 49,964 7,258,230 5,065,601 - 5,065,601 714,796 - 714,796 641,731 - 641,731 1,598,676 67,811 1,666,487 435,028 435,028 8,455,832 67,811 8,523,643 1 247 566 17 847 1 265,413 THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL ._ ;NTEIL INC. COMBINED STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JULY 31,2000 AND 1999 2000 McCallum Friends of Theatre the Cultural Endowment, Center, Inc. Inc. Combined INCREASE(DECREASE)IN UNRESTRICTED NET ASSETS $(1,519,651) $ 26,337 WA93,314) CHANGES IN TEMPORARILY RESTRICTED NET ASSETS: Development revenues for future periods-Note 16 393,625 393,625 Net assets released from restrictions (666,482) - (666,482) INCREASE (DECREASE)IN TEMPORARILY RESTRICTED NET ASSETS (272,857) (272,857) CHANGES IN PERMANENTLY RESTRICTED NET ASSETS: Development revenues for permanent endowment—Note 16 - 67,500 67,500 Net increase in restrictions 57,991 57,991 INCREASE IN PERMANENTLY RESTRICTED NET ASSETS 125,491 125A91 INCREASE (DECREASE)IN NET ASSETS (1,792,508) 151,828 (1,640,6801 NET ASSETS AT BEGINNING OF YEAR 7,914,785 2,091,997 10,006,782 NET ASSETS AT END OF YEAR $ 6,122,277 $2,243,825 jRjk6 102 (The accompanying notes are an integral part of these financial statements) (5) 1999 McCallum Friends of Theatre the Cultural Endowment, , Center Inc. Inc. Combined 1 247 566) (17,947 1 265 413) 850,752 - 850,752 (718,028) (718,028) 132,724 132,724 650,000 650,000 45,446 45.446 695,446 695,446 1 1( , 14,842) 677,599 (437,243) 9,029,627 1,414,399 10,444,025 7 914 785 $2,091,997 $10,006,782 it THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL.t- .4TER, INC. COMBINED STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JULY 31,2000 AND 1999 2000 General Production and Costs Marketine Development Admin. Total Salaries,payroll taxes and employee benefits $ 1,051,791 $ 121,542 $ 329,940 $ 392,989 $ 1,896,062 Artist fees 3,375,901 - - - 3,375,901 Contract labor& insurance 16,859 439,405 154,792 295,854 906,910 Supplies 14,198 5277 43,311 30,775 93,561 Utilities - - - 170,668 170,668 Postage& shipping 907 98,468 21,340 18,948 139,663 Maintenance,repairs, and rentals 32,846 - 5,655 13,275 51,776 Meals& entertainment - - 78,218 6,107 84,325 Conferences and travel 4,461 842 22,238 44,131 71,672 Cost of sales 33,287 - - - 33,287 Professional fees - - - 25,139 25,139 Computer software and telecommunications 6,316 14,817 4,328 48,734 74,195 Interest - - - 403,401 403,401 Miscellaneous& other 18,611 17,692 24,895 129,843 191,041 Total J12j5 177 LIL8 043 684,617 JLa9 764 LL2L7 601 (The accompanying notes are an integral part of these financial statements) (6) 1999 General Production and Costs Marketing Development Admin. Total $1,068,913 $ 69,359 $ 221,070 $ 384,277 $1,743,619 3,621,805 - - - 3,621,805 45,600 426,285 165,707 360,131 997,723 110,821 912 44,447 35,068 191,248 - - - 168,851 168,851 1,386 197,831 37,070 23,794 260,081 116,108 - 15,452 16,879 148,439 - - 69,432 3,436 72,868 2,167 650 21,705 13,049 37,571 44,584 - - - 44,584 - - - 86,384 86,384 11,236 2,301 2,697 50,610 66,844 - - - 344,590 344,590 42,981 17,458 64,151 179,418 304,008 5 065 601 714,796 641,731 JLkL6 487 $8.088.615 THIS PAGE LEFT BLANK INTENTIONALLY FRIENDS OF THE CULTURAL r VNTEB,INC. COMBINED STATEMENTS OF .SH FLOWS FOR THE YEARS ENDED JULY 31,2000 AND 1999 2000 McCallum Friends of Theatre the Cultural Endowment, Center Inc. Inc. Combined CASH FLOWS FROM OPERATING ACTIVITIES: Increase(Decrease) in net assets $(1,792,508) $ 151,828 $(1,640,680) Depreciation 504,661 - 504,661 Net realized(gain)on investments - - - Net loss on disposal of equipment 3,252 - 3,252 Noncash donations (178,806) - (178,806) (Increase) Decrease in: Inventory (39,940) - (39,940) Receivables 225,121 - 225,121 Other assets 90,220 - 90,220 Increase(Decrease) in: Accounts payable 16,053 - 16,053 Other liabilities 50,967 - 50,867 Deferred revenue 7,434 - 7,434 Net cash provided(used)by operating activities 1 1( , 13,646) 151,828 (961,8181 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from disposal of equipment 22,022 - 22,022 Purchase of property and equipment (120,677) (120,677) Proceeds from sale of investments - - - Proceeds from note receivable 100,000 100,000 Net cash provided(used)by investing activities 1,345 1,345 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds (payments) from line of credit (700,000) - (700,000) Net proceeds(payments)from notes payable 1,910,000 - 1,910,000 Repayments of notes payable and capital leases (74,627) - (74,627) Interfiuid loan-net 14,789 (14,7891 Net cash provided(used)by financing activities 1,150,162 14 789) 1,135,373 NET INCREASE (DECREASE) IN CASH 37,861 137,039 174,900 CASH AND CASH EQUIVALENTS, Beginning of year 77,377 1,467,050 1,544,427 CASH AND CASH EQUIVALENTS, End of year $ 115,238 Jj&L4 089 $ 1,719,327 Cash paid during 2000 and 1999 for interest amounted to $403,401 and$344,590. Capital lease obligations of$0 and 205,744 were incurred in 2000 and 1999 for the purchase of new theatrical equipment and office equipment. (The accompanying notes are an integral part of these financial statements) (7) 1999 McCallum Friends of Theatre the Cultural Endowment, Center, Inc. Inc. Combined $(1,114,842) $ 677,599 $ (437,243) 435,028 - 435,028 - (24,378) (24,378) 1,109 - 1,109 (216,246) - (216,246) (65,322) - (65,322) (46,744) - (46,744) 19,457 - 19,457 (209,353) (209,353) (1,196,913) 653,221 (543,692) 3,891 - 3,891 (50,949) - (50,949) - 326,628 326,628 100,000 100,000 52.942 326,628 379.570 883,729 - 883,729 (365,630) - (365,630) 282,732 (292,732 ) 800.831 (282,732) 518,099 (343,140) 697,117 353,977 420.517 769,933 1,190,450 $ 77.377 $1,467,050 1 544 427 FRIENDS 'THE CULTURAL CENTER,INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 1. DESCRIPTION OF THE CENTER The Friends of the Cultural Center, Inc. is a not-for-profit organization incorporated in California in 1973. Its stated purpose is to conduct cultural, charitable and educational activities in the Coachella Valley. Currently,the Center operates the McCallum Theatre for the Performing Arts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accountine The financial statements of Friends of the Cultural Center, Inc. have been prepared on the accrual basis of accounting. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Center and changes therein are classified and reported as follows: Unrestricted net assets -Net assets that are not subject to donor-imposed stipulations. Temporarily restricted net assets - Net assets subject to donor-unposed stipulations that may or will be met, either by actions of the Center and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Center. Generally, the donors of these assets permit the Center to use all or part of the income earned on any related investments for general or specific purposes. Combined Financial Statements The financial statements of the McCallum Theatre Endowment, Inc. have been combined with the financial statements of Friends of the Cultural Center, Inc. Intercompany transactions and balances have not been eliminated in the combined financial statements. Credit Risk Financial instruments which potentially subject the Center to concentrations of credit risk consist principally of temporary cash investments and pledge receivables. The Center places its temporary cash investments with high credit quality financial institutions and, by policy, limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to.pledge receivables are limited due to the Center's large number of donors and their dispersion across multiple geographic areas. The Center currently does not have any significant concentrations of credit risk. Inventory Inventory is stated at the lower of cost or market and consists of various stage supplies and beverage inventory. Investments Investments are reported at fair market value and consist of the Centers' donated interest in a charitable remainder annuity trust. (8) FRIEND :THE CULTURAL CENTER INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) Property and Equipment Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives. Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Center reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Center reclassifies temporarily restricted net assets to unrestricted net assets at that time. The useful lives of property and equipment are follows: Building 60 years Improvements 3 - 20 years Theatrical equipment 7 -20 years Office fiuniture and equipment 3 - 10 years Revenue Recognition Contributions are recognized when the donor makes a promise to give which is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Ticket sales received prior to the fiscal year to which they apply are not recognized as revenues until the year earned. These amounts are included in deferred revenue in the Statement of Financial Position. Tax-exempt Status The Center is classified as a Section 501(c)(3) Organization under the 1986 Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code. As a result, it has been determined to be exempt from federal income and California franchise taxes. Estimates The preparation of,financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly actual results could differ from those estimates. (9) FRIENDS 'THE CULTURAL CENTER,INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 3. PERMANENT ENDOWMENTS During 1994, the McCallum Theatre Endowment, Inc. was funded with a $1,000,000 contribution, to provide income for the McCallum Theatre's operations and programming. Terms of this endowment stipulate that this endowment's principal must grow at 3% per annum, compounded annually. Should Friends of the Cultural Center, Inc. cease to function as an active organization responsible for the operation and maintenance of the McCallum Theatre for the Performing Arts or otherwise fail to maintain its status as a nonprofit organization, $1,000,000 from the McCallum Theatre Endowment,Inc. would be distributed to the Prim Foundation of Nevada During 1988 and in subsequent years, a number of donors directed their current and future donations to establish a permanent endowment, to provide income for the McCallum Theatre's operation and programming. The Board of Trustees resolved that the principle of the endowment be made available for current operations, and established a plan to replenish, in the future, those funds which were borrowed. 4. PLEDGES RECEIVABLE Pledges receivable consists of the following at July 31,2000 and 1999: 2000 1999 Pledges receivable $629,375 $902,232 Less: Reserve for doubtful pledges - - Net pledges receivable 629,375 902,232 Less: current portion of net pledges receivable (301,000) (552,60 328 375 12L9 625 The maturities of pledges receivable at July 31,2000 are as follows: Less than one year $ 301,000 One to five years 328,375 6$ 29,375 5. INVENTORY Inventory consists of the following at July 31, 2000 and 1999: 2000 1999 Audio supplies $ 30,640 $ 44,907 Lighting supplies 140,054 80,675 Maintenance supplies 63,907 49,439 Other supplies 3,997 23,537 Total $238,498 L12L559 6. . DESIGNATED NET ASSETS The Center received a contribution of one million shares of common stock from a Corporation in July 1997 valued at $510,000. On August 1, 1997, the Corporation entered into a stock redemption agreement with the Center. The one million shares of common stock that were donated during the year were redeemed for$110,000 cash and a$400,000 note receivable on August 1, 1997. At July 31, 2000, this amount was classified as note receivable - current $100,000 and note receivable - noncurrent $100,000. The terms of the note require annual principal of$100,000 along with interest at 8% to be paid August 1, for each of the remaining two years. (10) FRIENDS -,'THE CULTURAL CENTER,INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 6. DESIGNATED NET ASSETS(continued) The Board of Trustees have designated the proceeds of these assets for the purpose of paying interest and/or principal on the note payable to the City of Palm Desert. The unrestricted - designated net assets at July 31, 2000 and 1999 are as follows: 2000 1999 200 000 00 000 7. PROPERTY, PLANT AND EQUIPMENT Property and equipment consists of the following at July 31, 2000 and 1999: 2000 1999 Building and improvements $15,730,996 $15,734,074 Theatrical equipment 2,244,356 2,224,755 Office furniture and equipment 262,550 492,522 Property held under capital lease 365,510 365,510 18,603,412 18,816,861 Less: accumulated depreciation (5,990,845) (5,973,842) 12,612,567 12,843,019 Artwork 336,326 336,326 Total $12.948.893 $13.179345 8. INVESTMENTS Investments consists of the following at July 31,2000 and 1999: Interest in Charitable 2000 1999 Remainder Annuity Trust $ 100.000 100.000 9. ADVANCE COLLECTIONS OF TICKET SALES The Center had received $1,369,561 and $1,477,331 at July 31, 2000 and 1999 respectively, on advance ticket sales for the 2000-2001 and 1999-2000 seasons. As each production is presented, that portion of the advance sales collections which pertains to that production will be recognized as revenue. In the event any of the scheduled productions for the 2000-2001 season is not presented, the advance ticket collections for that production will be available for refund to the ticket holder. 10. REVOLVING LINE OF CREDIT Under the terms of a revolving credit agreement with a bank, the line of credit is secured by real property and matures in November 2000. The Center may borrow up to $1,500,000 at 1% above prime rate as stated in the Wall Street Journal, with an interest rate floor of 7%, and a ceiling of 16%. Funds for these borrowings may be used for any purpose. At July 31, 2000 and 1999,the Center had $800,000 and$1,500,000 outstanding on this line of credit. (11) FRIENDS ,'THE CULTURAL CENTER INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 11. NOTES PAYABLE Notes payable consists of the following at July 31,2000 and 1999: 2000 1999 Loan from private foundation with 7.5%interest only due monthly,and principal and interest due January 2002 $2,500,000 $2,500,000 Loan from City of Palm Desert with 5% interest only due annually, and principal and interest due January 2007 500,000 500.000 3,000,000 3,000,000 Less: Current portion of notes payable 3 000 000 SIM 000 Future principal maturities of notes payable outstanding at July 31,2000 are as follows: July 31, Amount 2001 $ - 2002 2,500,000 2003 - 2004 2005 Thereafter 500,000 Total Lao 000 Notes payable — related parties of $1,910,000 at July 31, 2000, consists of outstanding short-term noninterest bearing notes from several members of the Board of Directors. Short-term loans totaling $3,360,000 were made to the Center during the year to provide cash flows for the current operations. The Center made repayments of$1,450,000 through July 31, 2000. (See Note 17) 12. LEASES The Center leases office and theatrical equipment under capital leases expiring in various years through June 2004. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are amortized over their estimated productive lives. Amortization of assets under capital leases is included in depreciation expense. Property held under capital leases consists of the following at July 31,2000 and 1999: 2000 1999 Office equipment $123,608 $123,608 Theatrical equipment 241,903 241,903 365 511 J265 511 Interest rates on capitalized leases vary from 10% to 20% and are imputed based on the lower of the Center's incremental borrowing rate at the inception of each lease or the lessor's implicit rate of return. (12) FRIENDS THE CULTURAL CENTER INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 12. LEASES (continued) Minimum future lease payments under capital leases as of July 31, 2000 for each of the next five years and in the aggregate are as follows: July 31, Amounts 2001 $ 82,082 2002 54,717 2003 41,657 2004 35,191 Total payments 213,647 Less: current portion of obligations under capital lease (82,082 ) 131 565 The Center leases real property under an operating lease expiring in 2048. All of the obligations under this lease were prepaid in 1982. Under the terms of this agreement all funds held in endowment are to be paid to the College of the Desert for the continued benefit of the theater upon expiration of the lease. The Center leases computer workstations under an operating lease agreement. Monthly payments of $731 are payable through June 2001. Minimum lease payments for the years ended July 31, 2000 and July 31, 1999 amount to $8,041 and$8,775,respectively. 13. RESTRICTIONS ON NET ASSETS Temporarily restricted net assets are available for the following purposes or periods: 2000 1999 Contributions and pledges for operations for periods after July 31 629,375 L2Q2 232 Temporarily restricted net assets at July 2000 and July 1999 consists solely of outstanding pledges (see Note 4) in the amount of$629,375 and $902,232 respectively. Permanently restricted net assets are restricted to: 2000 1999 Permanent endowment with 3% growth factor 11214.989 1 889 498 (13) FRIENDS THE CULTURAL CENTER,INC. NOTES TO THE COMBINED FINANCIAL STATEMENTS 14. DUE TO/FROM RELATED PARTIES During the fiscal year ended July 31, 1996, the McCallum Theater Endowment, Inc. loaned $300,000 to Friends of the Cultural Center, Inc. for operating purposes. The loan is unsecured and is payable January 1, 2000 with interest at 3%. This loan was extended in 2000 with no specific principal repayment date. The balance of $300,000 is classified as long-term repayment in the statement of financial position. During the fiscal year ended July 31, 1999, the McCallum Theater Endowment, Inc. sold land held for investment(see Note 8)and loaned the proceeds $326,626 to the Center for operating purposes. Interest is accruing at 3% with no specified principal repayment date determined. The balance of$326,626 is classified as long-term repayment in the statement of financial position. Due to/from related parties consists of the following at July 31,2000 and 1999: Current Portion 2000 1999 Advances due within one year $ - $ - Accrued interest on advances and operating expenses 157,818 135,011 1S7 818 135.011 Long-Term Portion Advances due after one year LIL6 626 LkL6 626 15. 401(K)PLAN A 401(K) plan was adopted in 1999. The plan coverage includes substantially all employees. The Center will match funds up to 50% of the first 6% of salary deferred by the employees. Amounts paid during the year ended July 31,2000 amounted to$21,998. 16. DEVELOPMENT REVENUE Development revenue on the combined statements of activities is allocated as follows: 2000 1999 Unrestricted net assets $1,190,473 $1,261,193 Temporarily restricted net assets 393,625 850,752 Permanently restricted net assets 67,500 650,000 Total Development Revenue JL6LI 598 JZILI 935 17. OTHER The Center has experienced some cash flow constraints during the past year. Total expenses exceeded total revenues for the year by approximately $1.8 million in 2000 and $1.1 million in 1999. These deficits in the operations of the Theater have resulted in the need to borrow funds from several members of the Board of Directors (See Note I1). The outstanding amounts owed to these Board members at July 31, 2000 amounted to $1,910,000. Management and the Board have approved a budget and adopted a financial plan for the fiscal year July 2001 that will help reduce the operating deficits from operations and improve the overall financial stability of the Center. (14) ORDINANCE NO. 976 AN ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA AMENDING SECTION 2.16.010 OF THE CODE OF THE CITY OF PALM DESERT, CALIFORNIA. The City Council of the City of Palm Desert, California does hereby ordain as follows: Section 1. That Section 2.16.010 of the Code of the City of Palm Desert, California be in the same as hereby amended to read as follows: "2.16.010 Office Created There is hereby established in the City an Investment and Finance Committee composed of the Finance Director/Treasurer, Investment Manager, City Manager, Assistant City Manager Redevelopment, City Attorney, two members of the City Council appointed by the Mayor, and up to a maximum of four citizens from the community appointed by the Mayor, both subject to concurrence by the Council. The Committee will make decisions regarding investments and deposits of money deemed by the Finance Director to be available as set forth in Chapter 2.08 of this Code." Section 2. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published once in the newspaper of general circulation printed within the City of Palm Desert, California. It shall be in full force and effect thirty(30)days after its adoption. P&MUSOJEV 75844 Ordinance No. 976 PASSED,APPROVED AND ADOPTED this day of 2000, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT ABSTAIN: JIM FERGUSION, MAYOR City of Palm Desert, California ATTEST: By: SHEILA R. GILLIGAN, CITY CLERK City of Palm Desert, Calitorma APPROVED AS TO FORM: By: David J. Erwin, City Attorney City of Palm Desert, California RMBUSOJE 75844 P,4lim 40,.,rLIs ew 1 ` �`'°'°"(. t .Ir�r✓e�y /6, 'Leo I . ... . ..... ._ _ Desert Willow clubhouse cited as one of best in nation SAN DIEGO — The Desert Willow shop and subterranean cart facility. golf clubhouse,constructed by Douglas The building exterior features cla} E. Barnhart, Inc., for the City of Palm file roofs, sandblasted trellis, and cop Desert was cited by Crittenden per downspouts and gutters. Public an Golflnc_ magazine as one of the best is also incorporated in the facility. new clubhouses in the nation. The clubhouse was. designed to The project,designed by The Dahlia blend with the surrounding desert and Group of Carlsbad and Impact Interiors features dark hues and desert-theme of Coto de Caza, was sited for a flexi- landscaping. ble_ and efficient design. Construction GoWnc. judged Desert Willow as a of this 16,000 square foot facility was runner-up in the "Over 10,000 square completed in April 2000. feet, Daily Fee Golf Clubhouse," cate- Features of the $7.4 million dollar gory. clubhouse include a full service Crittenden G01,}7nc. is a national kitchen, banquet room, offices, pro golf business.publication.