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HomeMy WebLinkAbout2002-04-24 IFC Regular Meeting Agenda Packet COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 4/24/02 Time 2:00 p.m. Location North Wing Conference Room Mailed Agenda 4/17/02 Posted Agenda 4/17/02 Time Convene Adjournment a% 05p,/v/ a/(/n v Staff Members Attending Yes No Others Attending Yes No 1 Paul Gibson, Chairperson 10 Dennis Coleman 2 Council Member )6V 11 Justin McCarthy 3 Council Member ;V: 12 Recording Secretary 4 Dave Erwin, City Attorney0-1-- 5 Carlos Ortega, City Mgr. 6 Thomas Jeffrey Public Members Attending Guests Attending 7 Russ Campbell 12 8 Murray Magloff 13 9 Bill Veazie 14 10 Everett Wood ✓ 15 16 17 Follow-Ups/Tasks Assigned P Person Responsible Due Date 1n 4 pay tivh- 2 (� 3 4, ,haitveo 4 (5°ifluJ M 60° 1 1I7 R'5 p a - 3l rYea - / V 6 I r*e,4 a 37, to 7 it2.111 ail kick rtv1.49,, f, C?m 1141 , c ,'4 ' coy- . 3L 19a0 l s pi-- ( - 6 • Spoke Mtn (1) Mtn (2) MEETING NOTES i p i <s. 4tt- s-1-0 / I n en-A ten two reel ,it) (a) Frt. in rir� 1-P,U,P�(1p err, `-i nAj 0 J I n lugo Pan" fi Ot, ivFc---2 gm", 60 qac :,, 1?to OFYia a-), ,/C et i a)2, moot- -7-1 E 'S( 1 k; are had not nr&i* nro�A19 '7n lelUfiI-- tdAa l( krifadi fol ho Son hv" (�E /(tea 1-3 ?-3e.kft gitYltar nTh-LC___ .------ rtilrlhen OVeaL5-1 6401171-C it v yrnivi 'Fir DD P�Sn/ _ i,f Ft 'U/ Palo ln�� CC ' ,/ s, n �' 9 C-( a fir PeA/A Ili) der % � s�i,,o ',o' d o S4 g2// J (1-0161 IrL or fey-02042 rear tun I r s Ace,0 IA br' 1' - � ( z44 w 1 4ww L de - �s(a / n\ propace 4 A /oarWc 1 • . 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"`..• CITY OF PALM DESERT r/ 1 / INVESTMENT & FINANCE COMMITTEE r> i,4 AGENDA ter{+h F April 24, 2002, 2:00 p.m. M1i yE , North Wing Conference Room rpoi9 io. I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and 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 the Investment and Finance Committee authorizes additional time. IV. COMMITTEE MEMBER REPORTS V. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE INVESTMENT & FINANCE COMMITTEE OR AUDIENCE REQUEST ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION V. CONSENT ITEMS HELD OVER, OF THE AGENDA. A. Approval of Minutes Rec: Approve minutes of the regular meeting of March 27, 2002, as submitted. Action: 1 042402.wpd INVESTMENT & FINANCE COMMITTEE AGENDA April 24, 2002 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for March 2002 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for March 2002. Review status of capital projects and cash-flow projections. Action: B. Treasury Policy and Procedures 2002 (Will be distributed at the meeting) Rec: Report and submit to City Council Action: C. Approved issuer Lists: A. Unsecured Commercial Paper B. Medium-Term Notes C. New Zealand Debt Rec: Review and submit for the next City Council agenda. Action: D. C.A.M.P. Rec: Review and submit for the next City Council agenda. Action: E. Audit Committee Selection Rec: Selection of Committee members to participate in Audit Committee Action: 2 002402.wpd INVESTMENT & FINANCE COMMITTEE AGENDA April 24, 2002 F. Conflict of Interest Presentation by David Erwin Rec: Informational item for the Committee to review. No action required G. State of California Local Agency Investment Fund Balance Rec: Informational item for the Committee to review. No action required H. City and Redevelopment Agency Monthly Financial Reports for City Council for March 2002 Rec: Report and submit to City Council Action: Parkview Professional Office Buildings - Financial Report for March 2002 Rec: Review and file report: Action: J. Palm Desert Golf Course Facilities Corporation Financial Information for March 2002 (Will be distributed at the meeting) Rec: Review and file report Action: VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: 3 042402.wpd INVESTMENT & FINANCE COMMITTEE AGENDA April 24, 2002 II B. Bond Issuance by Palm Desert Financing Authority Rec: Status report on issuing new bonds Action: X. NEXT MEETING -Wednesday, May 22, 2002 at 2:00 p.m. Xl. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 17th day of April, 2002. C na Leal, c -ding ecretary • • 04202.wpd t,,v Finance Department MEMORANDUM To: Rachelle Klassen, Deputy City Clerk From: Diana Leal, Administrative Secret Subject: Investment and Finance Committee • Date: May 23, 2002 Attached is a copy of the April 24,2002 minutes of the Investment and Finance Committee approved by the Committee on May 22, 2002. Please place on the next City Council agenda for approval thereof. • Additionally, attached is the sign in sheet of said meeting. • Thank you for your assistance. Attachments (2) • • G:\Finance\Diana Leal\WpdocsVnvestment Committee 2002 Memos\City Clerk\4-22-02.wpd CITY OF PALM DESERT • INVESTMENT & FINANCE COMMITTEE Irk 11 ; Mil 14 Minutes ;y�.� r A' I April 24,2002, 2:00 p.m. ••:4Z r f�.4�``r North Wing Conference Room .°y,' 9 35.E . I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, April 24,2002 at 2:05 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Chairman None Thomas Jeffrey, Investment Manager Jean Benson, Mayor Pro-Tempore Bob Spiegel, Council Member Carlos Ortega, City Manager Bob Hargreaves, Assistant City Attorney Murray Magloff Bill Veazie Russ Campbell Everett Wood Also Present: Justin McCarthy, Redevelopment DirectorlACM Dennis Coleman, Redevelopment Finance Manager Rodney Young, General Manager- Desert Willow Diana Leal, Recording Secretary III. ORAL COMMUNICATIONS - None IV. COMMITTEE MEMBER REPORTS - None 1 042402.wpd INVESTMENT & FINANCE COMMITTEE MINUTES April 24, 2002 V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Magloff and seconded by Mr. Veazie to approve the Minutes of the March 27, 2002 meeting as submitted. Motion carried. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for March 2002 Mr. Jeffrey gave a brief overview of the March 2002 Investment Reports. For the month ended March 31, 2002, the book value of the City Portfolio was approximately $159,000,000. The City earned approximately $448,000 in interest during that month. The City Portfolio yield-to-maturity was 3.17%. For the month ended March 31, 2002, the book value of the RDA Portfolio was approximately $134,000,000. The RDA earned approximately $257,000 in interest during that month. The RDA Portfolio yield-to- maturity was 2.28%. Staff reported that the current market consensus is that there may be a Federal Reserve interest rate increase in August 2002. Mr. Jeffrey stated that he would be purchasing $14 million of securities this month. They will be for short maturities, however, due to the potential for a series of interest rate increases. With respect to the City portfolio, the portfolio configuration is evenly distributed, with corporates representing a smaller percentage than in the past. The City portfolio yield continues to exceed LAIF's by 31 basis points (0.31%). With respect to the RDA portfolio, its relatively short maturity will begin to work in RDA's favor when interest rates begin to rise. The RDA portfolio currently does not hold any individual corporate securities. 2 042402wpd INVESTMENT& FINANCE COMMITTEE MINUTES April 24, 2002 B. Treasury Policy and Procedures 2002 Mr. Jeffrey distributed the Treasury Policy Manual and said that the manual is a one-time issue. Policy revisions will be provided annually to each manual holder. C. Approved Corporate Issuer Lists Mr. Jeffrey distributed proposed unsecured commercial paper and medium-term note issuer lists for 2002. Mr. Jeffrey stated that American auto makers had been removed from both lists, due to their current financial condition. Mr. Jeffrey also responded to a question that had been raised at a prior meeting about including New Zealand banks on the City's approved issuer lists. Mr. Jeffrey indicated that New Zealand was not included because it did not have any global banks and because many foreign securities trade in blocks of$10 million or more, a market in which the City does not participate. For that reason, all British, European, and Australian firms have been removed from both lists (except for BP Amoco and Royal Dutch Shell which do sell securities in the City's favored block-size range). Canadian and Japanese firms with manufacturing or financial service operations in the United States also remain on the list, although the Canadians may be removed if there are no viable buying opportunities in that sector. Mr. Veazie asked if General Electric Capital Corp. ("GECC") has maintained its credit ratings. Mr. Jeffrey responded that GECC is still rated "AAA." About a month ago, the CEO of a major bond management firm had noted that GECC's commercial paper outstandings exceeded its credit lines by a substantial margin. In the wake of Enron, this had caused a temporary, minor panic in the financial markets. GECC responded by increasing its bank credit lines. In conclusion, GECC is still profitable and there are no indications that it can not pay off its debt. Mr. Spiegel asked if any new issuers had been included on the lists. Mr. Jeffrey responded that the lists included previously approved issuers, minus issuers that staff thought were undesirable based upon financial condition or lack of feasibility (most foreign issuers). 3 042402.wpd INVESTMENT& FINANCE COMMITTEE MINUTES April 24, 2002 Motion was made by Mr. Campbell and seconded by Mr. Veazie to approve the unsecured commercial paper and medium-term note issuer lists for 2002. Motion carried. D. C.A.M.P. Mr. Jeffrey indicated that the City may need to consider an alternative to LAIF due to a possible State budget crisis. The State estimates that it will 9 have a $22 million budget deficit for FY 2003. It may, therefore, be difficult to get an approved State budget until late fall 2002. In that event, LAIF cannot guarantee that local agency monies on deposit might not be frozen after July 1, particularly in view of the Jarvis Taxpayers v. Connell litigation which is still pending. Such an event happened over a 24-hour period in 1998. Any moratorium on LAIF withdrawals could affect the City's ability to pay its bills. Depending upon the length of time of the moratorium, the City might be forced to sell securities in the open market prior to maturity, thereby exposing it to interest rate risk. Consequently, there is a need to establish a secondary backup liquidity pool for the City in case a disruption occurs. This backup pool should be independent of the State of California. The only other alternative would be to buy repos every two or three days over a long period of time. The Treasurer of Sonoma County, who is also concerned about the potential for a LAIF moratorium, recently referred the City Treasurer's Office to the California Asset Management Program (CAMP). CAMP operates an $831 million money market fund exclusively for local agencies. CAMP is governed by a Board of Trustees that is comprised of cities, counties, and special districts. Public Financial Management (PFM) of San Francisco is the financial advisor to CAMP's money market fund, which is rated "AAA" by Standard and Poor's and which has an average maturity of 90 days. CAMP's policy on authorized investments virtually duplicates the City's, and, consequently, is more conservative than state law. In 13 years of operation, CAMP has never lost any principal. • CAMP, however, would yield less than LAIF since CAMP is a rated money market fund with a shorter portfolio maturity (per SEC regulations), and has a more conservative investment policy than LAIF. Staff is recommending that $24 million ($12 million for the City and $12 million for RDA) be withdrawn from LAIF at least 30 days prior to July 1, and used to buy shares in CAMP, in case the City does not have access to its LAIF funds. This strategy would be used until a State budget is 4 042402 wpe INVESTMENT & FINANCE COMMITTEE MINUTES April 24, 2002 enacted for FY 2003, and then the CAMP monies would be withdrawn and reinvested elsewhere at a higher rate of return. Separate from this strategy, the City is proposing legislation, Senate Bill 68 (Baffin), that would clarify that local agency monies on deposit with LAIF are not state monies; are not subject to appropriation by the State; and, consequently, are outside the State budget process and not subject to seizure by State officials or agencies. Mr. Spiegel asked how Desert Sands Unified School District would be obtaining its money if LAIF initiated a moratorium on withdrawals. Mr. Gibson responded that Desert Sands would probably issue bonds. Ms. Benson noted that there were no local cities, counties or special districts in CAMP. Mr. Jeffrey responded that CAMP had been founded 1989 by cities, counties, and special districts in Northern California, and was slowing making its way down to Southern California. Mr. Gibson added that, in the past, so long as the City had LAIF, there had been no need to consider CAMP. Ms. Benson inquired about the auditors. Mr. Jeffrey responded that Ernst & Young audited CAMP. Ms. Benson asked if there was a minimum or maximum that can be invested in CAMP. Mr. Jeffrey indicated that he believed that there was no maximum. Mr. Ortega said that if, by June 1, staff does not hear better news on the State budget, then staff should withdraw enough money to finance the City through October 2002. Motion was made by Mr. Spiegel and seconded by Mr. Veazie to recommend that the City Council approve the resolutions authorizing the investment of City and RDA monies in CAMP. Motion carried. E. Audit Committee Selection Mr. Gibson said that a Request for Proposals has been mailed out for Audit Services as the current contract with Oscar Armijo and Diehl Evans, a joint venture, has expired. He proposes that Carlos Ortega, Justin McCarthy, Jose Luis Espinoza and himself be on the audit committee to review the proposals. They will review each proposal and bring a summary of the proposals to the Investment and Finance Committee in 5 042402.wpd INVESTMENT & FINANCE COMMITTEE MINUTES April 24, 2002 May. The final day to submit a proposal is Friday, April 26. Work is expected to commence in June. Mr. Ortega asked if joint ventures were going to be considered. Mr. Gibson said that joint ventures will have to provide proof of what they have accomplished as a joint venture as some problems have occurred with the current joint venture as far as jointly meeting set deadlines, etc. F. Conflict of Interest Presentation by David Erwin Mr. Gibson said that he believes that this was being done by Dave Erwin to explain to the various City committees the purpose of submitting Conflict of Interest Statements. This item will be postponed to the May meeting as Dave Erwin was not present. G. State of California Local Agency Investment Fund Balance Mr. Gibson said that the LAIF monthly report was not received. H. City and Redevelopment Agency Monthly Financial Reports for City Council for March 2002 Mr. Gibson said that the sales tax was down 6.5% (approximately $400,000) in the fourth quarter. The Transient Occupancy Tax is down about $500,000 in comparison to last year. $200,000 is due to lateness of returns; 1) the Marriott time shares for which two checks were received yesterday in the total amount of $220,000, and 2) the Vacation Inn which is on a payment plan. If by April 30 they have not paid what is due, the City will take them to court. The remaining portion is due to the 10% decrease in hotel revenues in comparison to last year. As far as overall general funds, last year the City was 20.89. This year it is at 19.069. The bulk of that has to do with the lower interest rates. He is projecting that the general fund operating budget will break even. However, worst case scenario is to have about a million dollar deficit. Parkview Professional Office Buildings - Financial Report for March 2002 Mr. Gibson said that there is 96% occupancy at this time. Goodwill will move out in October. That space will be reserved for the City's use. Short term tenants are expected to move out within a year or two. 6 042402.wpd INVESTMENT& FINANCE COMMITTEE MINUTES April 24, 2002 J. Palm Desert Golf Course Facilities Corporation Financial Information for March 2002 Mr. Young said that March was a rough month for them. He said that there is a 10% decrease around the valley. Food and Beverage did very well once again and banquets continue to book. By the end of Friday, they will surpass last year's numbers and by Monday they will surpass budget for this month. March was down considerably, partly he believes, because last year March was an exceptionally good month. They are down $120,000. They are very optimistic about May. Expenses were a little high for Food and Beverage because they had to purchase additional china, glasses and silverware to accommodate a group which will be meeting regularly on a monthly basis. They have 450 scheduled banquets; 290 are lunches. He said that he would like to have the patio enlarged as there are people who are waiting 15-20 minutes for a table. If the patio is extended and the drop off is made more of a step drop, guests will not see the golf carts pass by. He will be looking at having this done in the future. Mr. Gibson said that IROC, who they receive funds for the golf rounds, still has not contributed their funds. He will be sending them a letter that indicates the interest. Mr. Ortega said that the president of IROC will be attending a meeting with him tomorrow to discuss this issue. VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that they will be going before the City Council to request permission through the housing to do the bond for the housing to acquire 141 multi-family housing units as previously directed by Council. They are looking at some other potential financing. The bonding itself could be as high as $19,665,000. They have prepared the documents as well as the resolutions, and have set up the public hearing which is required in order to receive financing through the JPA. 7 042402.wpd INVESTMENT & FINANCE COMMITTEE MINUTES April 24, 2002 Staff has looked at the possibility of doing one more bond issue for refinancing of Project Area No. 2, as was done for Project Area No. 1. They have an opportunity now to refinance the existing debt and pull out $600,000 in cash with the current market. They are also looking to lower the coverage rate which is $1.60/dollar amount debt. They are hoping to get the rate down to $1.25. The project area has the necessary characteristics given the diversity of the owners and the assessed valuation. They are not looking to bring it before the Council until May. X. NEXT MEETING - Wednesday, May 22, 2002 at 2:00 p.m. Xl. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 2:42 p.m. Respectfully submitted, D' a Leal, R c rdi Secretary 8 042402.wpd i 5 '6$f*yc.: . Clty of.pail77°DBse/t'"r ::. r '4t� .... � „� �t''7 4'vr saw f',b y Po o is . it �i , «),k:4- ccityyandbReedevetopmeptt,Agenc iefortrottos �, r,� :. ry I y GOMPLIANCE,ANALYSIS AND0INVE*STMplo ENTtREPORT � 1 ,'r " ) Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Investment Manager Treasurer's Commentary • The Federal Open Market Committee ("FOMC") met on 19 March and left interest rates unchanged. The Committee noted - that while strong inventory restocking was occurring, the degree of sustainable demand over the next few quarters was still uncertain. With the economy rebounding,the FOMC shifted to a"balanced" assessment of economic risks. Further evidence of a recovery was provided by a strong Treasury bond sell-off in early March, resulting in higher yields on U.S. Treasury securities. It is thought that inflation will remain low due to excess manufacturing capacity. The current consensus of opinion among economists is that a cycle of FOMC rate increases will begin in June or August 2002, depending upon the Unemployment Rate. If there is a sharp decline in the Unemployment Rate,then the first rate increase might occur in June. A 75-100 basis-point increase in the Federal Funds Rate is forecast by December 2002. During March 2002, the City purchased$19.8 million of U.S. Treasury securities for the Palm Desert Redevelopment Agency (Palm Desert Project Area No. 1, 2002 Series A Refunding). pis Gthioni c.c.M r. Treasurer PORTFOLIO STATISTICS Dollars in Thousands MAR-02 FEB-02 JAN-02 DEC-01 NOV-01 OCT-01 CITY Month-End Book Value*" $ 158,976 $ 165,313 $ 179,824 $ 163,537 $ 166,386 $ 165,331 Month-End Market Value' $ 161,199 $ 167,796 $ 182,342 $ 166,130 $ 169,077 $ 168,076 Paper Gain (Loss) $ 2,223 $ 2,483 $ 2,518 $ 2,593 $ 2,691 $ 2,745 Interest Earnings $ 448 $ 445 $ 488 $ 499 $ 519 $ 567 Yield-To-Maturity 3.17% 3.27% 3.27% 3.55% 3.69% 3.98% Weighted Maturity(Days) 332 333 325 364 360 375 Effective Duration 0.15 0.18 0.19 0.24 0.27 0.31 RDA Month-End Book Value'"" $ 134,282 $ 106,319 $ 85,482 $ 85,132 $ 84,935 $ 69,921 Month-End Market Value"' $ 136,190 $ 108,295 $ 87,392 $ 87,015 $ 86,814 $ 71,736 Paper Gain (Loss) $ 1,908 $ 1,976 $ 1,910 $ 1,883 $ 1,879 $ 1,815 Interest Earnings $ 257 $ 205 $ 184 $ 194 $ 203 $ 188 Yield-To-Maturity 2.28% 2.51% 2.45% 2.61% 2.83% 3.04% Weighted Maturity(Days) 132 160 202 203 204 247 Effective Duration 0.14 0.18 0.24 0.25 0.27 0.35 City Treasurer's Office 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 "4' Omits SLGSs. 760.346.0611 • City of Palm Desert- Portfolio Characteristics 31 March 2002 Dollars in Thousands Ageing Interval Market Value General Fund Ageing < 1 M $ 40,448 <2M - 1 <3M 3,052 80 <6M 16,130 <1YR 12,143 60- 56 <2YR - o . <3YR - '5 y 40- J4'1 , ; 22 <4YR - °° 2o r; 17 <5YR w ry` >SYR 0 4 n .`':; 0 o Total: $ 71,773 <1M <2M <3M <6M <1YR <2YR l Ratings* Market Value Credit Quality' AAA AAA $ 68,492 42 AA 3,059 2% A 4,052 Al/P1 A 3% A1/P1 - o% Unrated** 85,596 Total: $ 161,199 Unrated" 53% 2 Sector Market Value Asset Allocation Money Market Corporate U.S. Treasury $ 23,133 Funds Bonds CFederal Agency 22,146 22° 6% LAIF Money Market Funds 34,744 PS%o, Commercial Paper - Federal AgencyC> 14% Commercial Corporate Bonds 10,173 • Paper LAIF3 ,00 RDA D n RDA Loan 31,003 U.S.Treasury RDA Loan Total: $ 161,199 14% 19% Month City Yield LAIF Yield Variance Performance Apr01 5.46 5.76 -0.30 May 4.91 5.33 -0.42 6.5 Jun 4.71 4.96 -0.25 Jul 4.53 4.64 -0.11 5.5 Aug 4.42 4.50 -0.08 i'', i I Sep 4.28 4.35 -0.07 0 4.5 Oct 3.98 3.79 0.19 a.s 1 r . r 1 1 4 1 Nov 3.69 3.53 0.17 9 1 0 11 1 ' a Dec 3.54 3.26 0.28 2.5 Jan02 3.27 3.07 0.20 Apr01 May Jun Jul Aug Sep Oct Nov Dec Jan02 Feb Mar Feb 3.27 2.97 0.31 Mar 3.17 2.86 0.31 O LAIF Yield fr7 City Yield * Standard and Poor's Credit Ratings ** LAIF, HighMark Sweep,and City Loan to RDA Page 2 of 8 • • City of Palm Desert • Portfolio Holdings 31 March 2002 • Market Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody'si S&P Medium-Term Notes $ 1,000,000 ASSOCIATES 6.50 8/15/02 $ 1,007,580 4.38 101.46 $ 1,014,590 Aa3 AA- $ 2,000,000 DU PONT 6.75 10/15/02 $ 1,999,350 6.81 102.23 $ 2,044,542 Aa3 AA- $ 2,000,000 GENERAL ELECTRIC 6.52 10/8/02 $ 1,997,337 6.80 102.16 $ 2,043,244 Aaa AAA $ 1,000,000 GENERAL ELECTRIC 6.65 9/3/02 $ 1,009,289 4.36 101.86 $ 1,018,586 Aaa MA $ 4,000,000 GENERAL MOTORS 5.95 3/14/03 $ 3,999,856 5.94 101.29 $ 4,051,648 A2 A $ 10,000,000 Subtotals $ 10,013,412 5.97 $ 10,172,610 Agencies-Coupon $ 4,000,000 FED HOME LOAN BANK 3.50 8/6/02 $ 3,997,875 3.66 100.47 $ 4,018,750 Aaa AM $ 2,000,000 FED HOME LOAN MTG CORP 6.63 8/15/02 $ 1,999,347 6.72 101.63 $ 2,032,500 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 6.75 8/15/02 $ 2,017,560 4.29 101.69 $ 2,033,750 Aaa AM $ 8,000,000 Subtotals $ 8,014,783 4.58 $ 8,085,000 Agencies-Discount $ 2,071,000 FED HOME LOAN BANK 3.46 7/30/02 $ 1,999,741 3.60 99.37 $ 2,057,953 Aaa AAA $ 1,000,000 FED HOME LOAN BANK 2.34 7/23/02 $ 980,175 2.41 99.41 $ 994,100 Aaa AAA • $ 1,000,000 FED HOME LOAN BANK 2.33 6/20/02 $ 982,396 2.39 99.60 $ 996,000 Aaa AAA $ 2,048,000 FED HOME LOAN BANK 2.34 10/7/02 $ 2,000,077 2.42 98.89 $ 2,025,267 Aaa MA $ 3,977,000 FED HOME LOAN MTG CORP 2.30 7/18/02 $ 3,900,774 2.36 99.43 $ 3,954,331 Aaa MA $ 2,000,000 FED HOME LOAN MTG CORP 2.35 10/10/02 $ 1,952,608 2.43 98.87 $ 1,977,400 Aaa MA $ 2,064,000 FED MTG DISCOUNT NOTE 3.51 6/20/02 $ 2,000,006 3.65 99.60 $ 2,055,744 Aaa AAA $ 14,160,000 Subtotals $ 13,815,777 2.79 $ 14,060,795 Treasury-Coupon $ 1,340,000 UNITED STATES TREASURY 6.25 8/31/02 $ 1,341,957 5.84 101.72 $ 1,363,031 Aaa AAA $ 15,194,000 UNITED STATES TREASURY 5.88 9/30/02 $ 15,195,971 5.84 101.84 $ 15,474,139 Aaa AAA $ 16,534,000 Subtotals $ 16,537,927 5.84 $ 16,837,171 Treasury-Discount $ 166,000 UNITED STATES TREASURY 5.08 5/15/02 $ 128,677 5.84 99.81 $ 165,680 Aaa AAA $ 6,170,000 UNITED STATES TREASURY 5.03 8/15/02 .$ 4,718,446 5.82 99.36 $ 6,130,635 Aaa AAA $ 6,336,000 Subtotals $ 4,847,122 5.82 $ 6,296,315 LGIPs $ 40,000,000 L.A.I.F. 0.00 4/1/02 $ 40,000,000 2.86 100.00 $ 40,000,000 NR NR $ 40,000,000 Subtotals $ 40,000,000 2.86 $ 40,000,000 Pooled Funds-AIM $ 20,150,525 PRIME PORTFOLIO 0.00 4/1/02 $ 20,150,525 1.42 100.00 $ 20,150,525 Aaa AM $ 20,150,525 Subtotals $ 20,150,525 1.42 $ 20,150,525 NR=Not Rated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 March 2002 Market Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody's' S&P Pooled Funds-HighMark $ 12,738,330 CITY MAIN SWEEP 0.00 4/1/02 $ 12,738,330 0.84 100.00 $ 12,738,330 NR NR $ 373,143 DESERT WILLOW SWEEP 0.00 4/1/02 $ 373,143 0.84 100.00 $ 373,143 NR NR $ 1,481,934 OFFICE COMPLEX SWEEP 0.00 4/1/02 $ 1,481,934 0.84 100.00 $ 1,481,934 -NR NR $ 14,593,407 Subtotals $ 14,593,407 0.84 $ 14,593,407 City Loan to RDA $ 31,002,917 CITY OF PALM DESERT 0.00 3/31/32 $ 31,002,917 2.86 100.00 $ 31,002,917 NR NR $ 31,002,917 Subtotals $ 31,002,917 2.86 $ 31,002,917 Total Investments $ 160,776,849 $ 158,975,871 3.17 $ 161,198,739 • Cash $ 54,703 OFFICECOMPLEXCHKG 0.00 4/1/02 $ 51,100 0.00 100.00 $ 51,100 NR NR $ 2,739,476 CITY MAIN CHKG 0.00 4/1/02 $ 4,385,220 0.00 100.00 $ 4,385,220 NR NR • $ 146,596 DESERT WILLOW CHKG 0.00 4/1/02 $ , 38,999 0.00 100.00 $ 38,999 NR NR $ 28,949 OFFICE COMPLEX TRUST 0.00 4/1/02 $ 28,949 0.00 100.00 $ 28,949 NR NR $ 116,990 RECREATIONAL FAC CHKG 0.00 4/1/02 $ 112,517 0.00 100.00 $ 112,517 NR NR $ - VACATION INN CHKG 0.00 4/1/02 $ - 0.00 100.00 $ - NR NR $ 3,086,714 Subtotals $ 4,616,784 0.00 $ 4,616,784 Cash and Investments $ 163,863,563 $ 163,592,655 $ 165,815,523 • NR Not Rated Page4of8 Palm Desert Redevelopment Agency- Portfolio Characteristics 31 March 2002 Dollars in Thousands Ageing Interval Market Value < 1 M $ 119,633 Portfolio Ageing w/o SLGSsl <2M - <3M 3,982 100 91 <6M 851 80 Xi - <1YR 194 aE 70- '„i <2YR 1,012 0 60- "04 a 50- iti` <3YR 6,509 E 40- n`; <4YR - a0 30- <5YR - 20 ":' 5 10- r: 0 3 1 0 1 0 >5YR - 0 , , ^ , , ^ , Total: '$ 132,181 <1M <2M <3M <6M <1YR <2YR <3YR <4YR Quality* Market Value Credit Quality] AAA AAA $ 72,547 53% Al/P1 AA - ' 3A A - A1/P1 3,998 AA Unrated** 59,645 0% Unrated" Total: $ 136,190 0A 44% °/> J I, Sector Market Value Asset Allocation` U.S. Treasury en $ 26,710 r eral Agen��Mo u Msrket Federal Agency 3,982 3/o Funds 36% Money Market Funds 47,445 .,�_ LAIF 54,055 U.S.Treasury Commercial Paper 3,998 20% - Corporate Bonds - LAIF Total: $ 136,190 41% J Month RDA Yield LAIF Yield Variance Performance' Apr01 5.20 5.76 -0.56 May 4.74 5.33 -0.59 7.0 Jun 4.44 4.96 -0.52 Jul 4.08 4.64 -0.56 6.0- Aug 3.96 4.50 -0.54 a 5.0 1 Sep 3.69 4.35 -0.66 B 4.0 + z Oct 3.04 3.79 -0.74 x' \ s 3.0 14v k ' FhNov 2.83 3.53 0.69 rL] F9 a Dec 2.59 3.26 -0.67 Jan02 2.46 3.07 -0.61 Apr01 May Jun Jul Aug Sep Oct Nov Dec Jan02 Feb Mar Feb 2.51 2.97 -0.46 Mar 2.28 2.86 -0.59 QLAIF Yield DRDA Yield Standard and'Poor's Credit Ratings ** LAIF and HighMark Sweep Page 5 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 March 2002 Market Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price Value Moody's' S&P Commercial Paper-Unsecured $ 4,000,000 GENERAL ELECTRIC 2.25 4/10/02 $ 3,955,750 2.28 99.96 $ 3,998,200 P-1 A-1+ $ 4,000,000 Subtotals $ 3,955,750 2.28 $ 3,998,200 Federal Agency-Discount $ 4,000,000 FED HOME LOAN MTG CORP 2.24 6/28/02 $ 3,936,284 2.30 99.56 $ 3,982,400 Aaa AAA $ 4,000,000 Subtotals $ 3,936,284 2.30 $ 3,982,400 U.S.Treasury-Coupon $ 422,700 UNITED STATES TREASURY 6.25 8/31/02 $ 423,956 5.43 101.72 $ 429,965 Aaa AAA $ 405,200 UNITED STATES TREASURY 6.25 8/31/02 $ 406,404 5.43 101.72 $ 412,164 Aaa AM $ 9,100 UNITED STATES TREASURY 6.25 8/31/02 $ 9,127 5.43 101.72 $ 9,256 Aaa AAA $ 837,000 Subtotals $ 839,488 5.43 $ 851,386 U.S. Treasury-Discount $ 18,162,000 UNITED STATES TREASURY 1.70 4/18/02 $ 18,131,125 1.70 99.91 $ 18,144,973 Aaa AAA $ 198,000 UNITED STATES TREASURY 4.70 2/15/03 $ 150,793 5.45 97.80 $ 193,644 Aaa AAA $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 93.55 $ 169,333 Aaa AAA $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 91.12 $ 6,508,629 Aaa MA $ 532,400 UNITED STATES TREASURY 4.66 8/15/03 $ 394,279 5.47 96.01 $ 511,136 Aaa AAA $ 344,600 UNITED STATES TREASURY 4.66 8/15/03 $ 255,200 5.47 96.01 $ 330,837 Aaa AAA $ 26,561,000 Subtotals $ 24,051,237 2.66 $ 25,858,552 LGIPs $ 39,999,843 L.A.I.F. 0.00 4/1/02 $ 39,999,843 2.86 100.00 $ 39,999,843 NR NR $ 14,055,000 L.A.I.F. BOND PROCEEDS 0.00 4/1/02 $ 14,055,000 2.86 100.00 $ 14,055,000 NR NR $ 54,054,843 Subtotals $ 54,054,843 2.86 $ 54,054,843 Pooled Funds-AIM $ 41,854,633 PRIME PORTFOLIO 0.00 4/1/02 $ 41,854,633 1.42 100.00 $ 41,854,633 Aaa AAA $ 41,854,633 Subtotals $ 41,854,633 1.42 $ 41,854,633 NR=Not Rated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 March 2002 Market Ratings I Par Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody's! S&P Pooled Funds-HighMark $ 5,383,146 HOUSING AUTH CHK SWEEP 0.00 4/1/02 $ 5,383,146 0.84 100.00 $ 5,383,146 NR NR $ 206,714 HOUSING AUTH TRT SWEEP 0.00 4/1/02 $ 206,714 0.84 100.00 $ 206,714 NR NR $ 5,589,860 Subtotals $ 5,589,860 0.84 $ 5,589,860 Total Investments $ 136,897,336 $ 134,282,095 2.28 $ 136,189,874 Cash $ 55,773 HOUSING AUTH CHKG 0.00 4/1/02 $ 55,773 0.00 100.00 $ 55,773 NR NR $ 52,124 HOUSING AUTH TRT 0.00 4/1/02 $ 52,124 0.00 100.00 $ 52,124 NR NR $ 107,897 Subtotals $ 107,897 0.00 $ 107,897 • Total Cash and Investments $ 137,005,233 $ 134,389,992 $ 136,297,771 a NR=Not Rated Page 7 of 8 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert('City')and the Palm Desert Redevelopment Agency("RDA")are governed by federal, state, and local law. The City Treasurer's'Statement of Investment Policy' is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 March 2002,the City and the RDA investment portfolios were in compliance with all applicable federal,state,and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity,and yield (in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition,portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectfully submitted on 24 April 2002, Pau&S. 9' c.c.H r. City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code I City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized 1) ;53601(b) :"'' ;,U:S.Treasuries ; S,Years",: ,No LimiP, w ° f M s ;5`Years4;No Lireitt 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized 53601(e)" '._. Federali'Agencies ',v; 5,Y,ears:I 'No Limiti: rEtr'll rt. ,t;?,Fiy,:: •;5 Years: " 30% 13:7%' .°`°2:9%_ '"53601(t)";Bankeri's:Abcepiancesa .180:Days) °. 40% '„ "< � °180`Days' 'A-1",B+P,1° 53601(g)`2. •Commercial Paper ;'; 270.Day`s . . 25%," orlp;l. 2707.Days, .i 25% '.; 53601(h) °` `Negotiable CDs ,.'„ . 5;Years,; 'r 30%' 7):Zi, .35 Years -. 30%'° AA;orAa3 .- ) Y :`. ;„"' 53601(i). ;;p'itt r;;Repos ;' = ,1.Year ANo Limit+ Days ` ,20°/dx.: AAA";`B:Aaa 53601(i) Reverse Repos 92 Days 20% Not Authorized '536010)' "Me`dium-Term Notes:e , 5 Year's r :30% ' A,r ;" .;3 Yea"rs. „k(30% A r °e;j6.3° ., .- ,•' 553601(k) ?t- _ 'Mutual"Funds , °; ;t90:Daysr 20%.%t' AAA-kAalc Daysn 40-20%> ;,:: AAA B-Aaa;21,.9%A 53601(I) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit • Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA(Security) cF 16429 'sa"*° ,. 'LAIFa No,Limit ?* '.« ; .4M1No`Limit txw:=' " t25:2%1: ' `,t40i3%!; 80.5% 100.0% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. Certified California Municipal Treasurer Page 8 of 8 r 4/1i/02 CITY OF PALM DESERT 9:03 PM APPROVED COMMERCIAL PAPER ISSUERS APRIL 2002 S&P/MOODY'S S&P/MOODY'S COMMERCIAL PAPER LONG-TERM DEBT COMPANY RATINGS RATINGS Aerosoace Boeing (BAPP) A-1 +/P-1 AA-/A2 Agriculture Archer Daniels Midland (ADM) A-1/P-1 A+/A1 Cargill (CARGIL) A-1/P-1 A+/A1 Auto American Honda Motor (HNDA) A-1/P-1 A+/A2 Toyota Motor Credit (TOYCC) A-1 +/P-1 AAA/Aa1 Bank 'BankAmerica (BAC) A-1/P-1 A+/Aa2 Bank of New York (BK) A-1/P-1 A+/Aa3 Canadian Imperial Holdings (CANHLD) A-1 +/P-1 AA- J.P. Morgan Chase (JPMCC) • A-1 +P-1 AA-/Aa3 Mellon Funding (MELFDG) A-1/P-1 A+/A1 Scotiabank (SCOBAN) A-1/P-1 - State Street Boston (SSBOST) A-1 +/P-1 AA-/Aa3 Toronto-Dominion Holdings (USA) (TDHLDG) A-1 +/P-1 AA- Wachovia (WBCORP) A-1/P-1 A/A1 . Wells Fargo (WFC) A-1/P-1 A+/Aa2 Beverage Anheuser Busch (BUD) A-1/P-1 A+/A1 Coca-Cola (KO) .A-1/P-1 A+/Aa3 Chemical Du Pont (El.) de Nemours (DD) A-1 +/P-1 AA-/Aa3 Computer IBM (IBM) A-1/P-1 A+/A1 Intel (INTC) A-1 +/P-1 A+/A1 Consumer Colgate-Palmolive (CL) A-1 +/P-1 AA-/Aa3 Gillette (G) A-1 +/P-1 AA-/Aa3 Kimberly-Clark (KMBPP) A-1 +/P-1 AA/Aa2 Page 1 of 4 4/15/oz CITY OF PALM DESERT 9:03 PM APPROVED COMMERCIAL PAPER ISSUERS APRIL 2002 S&P/MOODY'S S&P/MOODY'S COMMERCIAL PAPER LONG-TERM DEBT COMPANY RATINGS RATINGS Drugs Abbott Labs (ABT) A-1 +/P-1 AA/Aa3 Bristol-Meyers Squibb (BMY) A-1 +/P-1 AAA/Aaa Eli Lilly ILLY) A-1 +/P-1 AA/Aa3 Johnson & Johnson (JNJPP) A-1 +/P-1 AAA/Aaa Merck (MRK) A-1 +/P-1 AAA/Aaa Warner-Lambert (WLA) A-1 +/P-1 AAA/Aaa Fducation Columbia University (COLUNI) A-1 +/P-1 - Harvard University (HARVRD) A-1 +/P-1 AAA/Aaa Northwestern University (NWUNI) A-1 +/P-1 - Princeton University (PRNCTN) A-1 +/P-1 AAA/Aaa University of Chicago (UNICHI) A-1 +/P-1 - University of California (UNCALB) A-1 +/P-1 - Yale University (YALE) A-1 +/P-1 - Electric Equipment General Electric (GECC) A-1 +/P-1 AAA/Aaa Electronics Sony Capital (SNECAP) A-1/P-1 A+/Aa3 Finance American Express (AXP) A-1/P-1 A+/A1 Associates Finance (ACAFIN) A-1 +/P-1 - Citicorp (CITICP) A-1 +/P-1 AA-/Aa1 International Lease Finance (ILFC) A-1 +/P-1 AA-/A1 Paccar Financial (PCAR) A-1 +/P-1 AA-/A1 • Food Hershey Foods (HSY) A-1/P-1 A+/A1 H.J. Heinz (HNZ) A-1/P-1 A/A3 PepsiCo (PEP) A-1/P-1 A/A1 Imaging Fuji Photo Film Finance U.S.A., Inc. (FUJIUS) A-1 +/P-1 AA/Aa3 Page 2 of 4 4/1§/02 CITY OF PALM DESERT 9:03 PM APPROVED COMMERCIAL PAPER ISSUERS APRIL 2002 S&P/MOODY'S S&P/MOODY'S COMMERCIAL PAPER LONG-TERM DEBT COMPANY RATINGS RATINGS Jnsuranrp AIG Funding (AIGFUN) A-1 +/P-1 - Manufacturing Guardian Industries (GUAIND) A-1/P-1 A+/A1 Minnesota Mining & Manufacturing (MMM) A-1/P-1 A+/A1 Newspaper Dow Jones (DJ) A-1 +/P-1 AA-/Aa3 Washington Post (WPO) A-1/P-1 A+/Aa3 Office Equipment Pitney Bowes (PBI) A-1 +/P-1 AA/Aa3 Petroleum BP America (BPAME) A-1 +/P-1 AA+/Aa1 Chevron (CHVUSA) A-1 +/P-1 AA/Aa2 Exxon-Mobil (XON) A-1 +/P-1 AAA/Aaa Shell Oil (SUOA) A-1 +/P-1 AAA/Aa1 Texaco (TX) A-1 +/P-1 AA/Aa3 Publishing McGraw-Hill (MHP) A-1/P-1 Al Restaurant McDonald's (MCDPP) A-1/P-1 A+/Aa3 Retail Home Depot (HD) A-1 +/P-1 AA/Aa3 Wal-Mart Stores (WMT) A-1 +/P-1 AA/Aa2 Securities Brokerage Goldman Sachs Group (GS) A-1 +/P-1 A+/A1 Merrill Lynch (MER) A-1 +/P-1 AA-/Aa3 Morgan Stanley Dean Witter (MS) A-1 +/P-1 AA-/Aa3 Salomon Smith Barney (SSB) A-1 +/P-1 AA- Page 3 of 4 - 4na02 CITY OF PALM DESERT 9:03 PM APPROVED COMMERCIAL PAPER ISSUERS APRIL 2002 S&P/MOODY'S S&P/MOODY'S COMMERCIAL PAPER LONG-TERM DEBT COMPANY RATINGS RATINGS Telecommunications Bell Atlantic Network Funding (BELNET) A-1 +/P-1 - BellSouth (BLSCRP) A-1/P-1 A+/Aa3 SBC Communications (SBCCOM) A-1 +/P-1 AA-/Aa3 Transportation United Parcel Service (UPS) A-1 +/P-1 AAA/Aaa Utility - Natural Gas Washington Gas Light Co. (WGL) A-1 +/P-1 AA-/Aa2 Page 4 of 4 4n5(02 CITY OF PALM DESERT 8:56 AM APPROVED MEDIUM-TERM NOTE ISSUERS APRIL 2002 S & P MOODY'S COMPANY MTN RATINGS MTN RATINGS Auto American Honda Motor (HNDA) A+ A2 Toyota Motor Credit (TOYCC) AAA Aa1 Bank BankAmerica (BAC) AA- Aa1 Bank of New York (BK) A+ Aa3 J.P. Morgan Chase (JPMCC) AA- Aa3 Northern Trust (NTRS) AA- Aa3 State Street Boston (SST) AA- Aa3 Wachovia (WBCORP) AA- Aa3 Wells Fargo (WFC) Beverage Anheuser Busch (BUD) A+ Al Coca-Cola (KO) A+ Aa3 Chemical Du Pont (E.I.) de Nemours (OD) AA- Aa3 Computer IBM (IBM) A+ Al Consumer Colgate-Palmolive (CL) AA- Aa3 Gillette (G) AA- Aa3 Kimberly-Clark (KMB) AA Aa2 Drugs Abbott Labs (ABT) AA Aa3 Bristol-Meyers Squibb (BMY) AAA Aaa Eli Lilly (LLY) AA Aa3 Johnson & Johnson (JNJ) AAA Aaa Merck (MRK) AAA Aaa Warner-Lambert (PFE) AAA Aaa Fdur•.ation Columbia University (COLUNV) AAA Aaa Harvard University (HARVRD) AAA Aaa Yale University (YALUNI) AAA Aaa Page 1 of 3 4n5/02 CITY OF PALM DESERT 8:56 PM APPROVED MEDIUM-TERM NOTE ISSUERS APRIL 2002 S & P MOODY'S COMPANY MTN RATINGS MTN RATINGS Electric Eauinment General Electric (GECC) AAA Aaa Finance American Express (AXP) A+ Al Associates (C) AA- Aa1 Citicorp (C) AA- Aa1 Paccar Financial (PCAR) AA- Al Food Hershey Foods (HSY) A+ Al H.J. Heinz (HNZ) A A3 Pepisco (PEP) A Al Manufacturing Minnesota Mining & Manufacturing (MMM) AA Aal Office Eauinment Pitney Bowes (PSI) AA Aa3 Petroleum BP America (BPLN) AA+ Aa1 Exxon-Mobil (XOM) AAA Aaa Shell Oil (RDNA) AAA Aal Restaurant McDonald's (MCD) A+ Aa3 Retail Home Depot (HD) AA Aa3 Wal-Mart Stores (WMT) AA Aa2 Securities Brokerage Goldman Sachs (GS) A+ Al Merrill Lynch (MER) AA- Aa3 Morgan Stanley Dean Witter (MS) AA- Aa3 Salomon Smith Barney (SSB) AA- Aa1 Telecommunications BellSouth (BLS) A+ Aa3 Page 2 of 3 y R Pe• an5i02 CITY OF PALM DESERT 8:56 PM APPROVED MEDIUM-TERM NOTE ISSUERS APRIL 2002 S & P MOODY'S COMPANY MTN RATINGS MTN RATINGS Transportation United Parcel Service (UPS) AAA Ma • Page 3 of 3 CITY OF PALM DESERT OFFICE OF THE CITY TREASURER STAFF REPORT REQUEST: Recommendation for Approval of Resolution to Participate in the California Asset Management Program ("CAMP") • DATE: 24 April 2002 CONTENTS: Exhibit "A": Comparison of CAMP and LAIF Yields Exhibit "B": List of CAMP Participants Exhibit "C": CAMP Background Information Exhibit "D": PFM Background Information Exhibit "E": Sample Resolution Recommendation: By Minute Motion: That the Finance Committee recommend that the City Council approve a resolution authorizing the City of Palm Desert and the Palm Desert Redevelopment Agency to participate in CAMP. Background: In recent years, the State of California has failed to enact a budget prior to the beginning of each fiscal year (1st July). In 1998, the Howard Jarvis Taxpayers Association responded by filing a lawsuit against Kathleen Connell, State Controller, seeking a preliminary injunction that would prohibit the State from spending any money until a State budget was approved. The trial court ruled in favor of Jarvis Taxpayers. The State reacted by implementing a 24-hour moratorium on the withdrawal of local agency monies on deposit with the Local.Agency Investment Fund. This action was, in effect, a State seizure of local agency monies. The moratorium ended when the 2nd Court of Appeal placed a stay on the preliminary injunction and the Legislature approved an emergency funding bill. For FY 2003, the State is not expected to adopt a budget until September-October 2002, due to a projected deficit of $17.5 billion. Concurrently, the Jarvis v. Connell litigation is still on appeal, with a 2nd Court of Appeal ruling due within the next 60 days. Staff Report Authorizing Resolution for CAMP 24 April 2002 Page 2 of 3 In order to avoid a possible interruption of the City of Palm Desert's ("City") ability to withdraw its monies from LAIF, the City Treasurer's Office recommends that the City withdraw approximately $20 million ($10MM for City and RDA each) prior to 1st July and purchase shares in the California Asset Management Program1CAMP). The City would hold the CAMP shares until the State budget crisis is over, and would then withdraw and reinvest the bulk of the money at a higher rate of return, leaving a nominal amount in CAMP in order to keep the account open. CAMP, a Joint Powers Authority ("JPA") that was established in 1989, provides California local agencies with investment management and arbitrage rebate compliance services for bond proceeds and for surplus operating monies. CAMP is governed by a Board of Trustees that consists of seven members who represent two counties, two cities, two school districts, and one water agency (See Exhibit "B"). Unlike LAIF, only local agencies may participate in CAMP. The City was referred to CAMP by the Treasurer of Sonoma County. Sonoma County is a CAMP participant. CAMP operates an $831 million investment pool -- the Cash Reserve Trust ("Trust") -- for local agency surplus operating monies. Standard and Poor's ("S&P") has assigned the Trust a "AAA" rating and reviews the Trust on a weekly basis. The Trust has the same list of authorized investments as the City. Repurchase agreements are done only with primary dealers. Unlike LAIF, the Trust is subject to a portfolio average maturity of 90 days or less (necessary for S&P rating). With a shorter portfolio maturity than LAIF (540 days), the Trust's yield should be higher than LAIF's in a market of rising interest rates, and lower than LAIF's in a market of declining interest rates (See Exhibit "A"). PFM deducts an administrative fee of 17 basis points (0.17%) from the Trust's monthly earnings. There are no out-of-pocket expenses for local agency monies invested in the Trust. Same-day deposits and withdrawals deposits may be done if telephone notice is provided before 11:00 a.m. There is no limit on the number of transactions. A third- party custodian, Bank of New York, holds all cash and securities. Monthly portfolio reports are provided. Accounts may be viewed on-line. Public Financial Management (`PFM") serves as the Trust's investment advisor and program administrator. PFM was founded in Philadelphia, Pennsylvania in 1975 and is now the largest independent financial advisory firm in the United States, with over 200 employees and 20 offices. PFM currently manages $11 billion in public agency assets, including $2.6 billion in California. PFM is currently rated by the Bond Buyer as the No. 1 financial advisory firm to public agencies in the United States. Staff Report Authorizing Resolution for CAMP 24 April 2002 Page 3 of 3 The other financial service providers for the Trust are: Custodian: BNY Western Trust Co. Auditor: Ernst & Young, LLP Rebate Agent: Orrick, Herrington & Sutcliffe, LLP In its 12-year operating history, the Trust has never "broken the buck" (sustained investment pool losses that were passed through to pool participants). Submitted By: Thomas Jeffre, I f Int Manager Approved By: Paul S. Gibson, C.C.M.T., City Treasurer ,At;n IIE_ � 1 Y�rb 4 � ti a �' x � � 1 t C p , . w Y i .c .:,.. „, CALIFORNIA ASSET MANAGEMENT PROGRAM. A PUBLIC JOINT POWERS AUTHORITY Investment Services By and For California Public Agencies 505 Montgomery Street, Suite 800 San Francisco, CA 94111 Tel: (800) 729-7665 Fax: (415) 982-4513 camp !; EXHIBIT "A" CAMP Cash Reserve Portfolio Monthly Dividend Yields Dividend LAIF Dividend LAIF Month Yield YIELD DELTA Month Yield YIELD DELTA Jan-99 5.01 % 5.21 < .26) Jul-00 6.45% 40.44 .01 Feb-99 4.89% 5.21 <,32> Aug-00 6.46% (0,51 <.o5) Mar-99 4.83% 5, 114 < ,31) Sep-00 6.45% (0.50 < ,o5) Apr-99 4.78% 5.12 < .3*4) Oct-00 6.44% 6.52 <.08) May-99 4.78% 5.09 <.3t) Nov-00 6.44% (0.5'4 < ,to) Jun-99 4.79% 5. 10 <,3t) Dec-00 6.43% 6.54 <. 11) Jul-99 4.88% 5, 18 <.30) Jan-01 6.31% 6.31 <.0b) Aug-99 5.06% 5.23 <.tl) Feb-01 5.93% 6.11 <.24) Sep-99 5.14% 5.21 <,13) Mar-01 5.26% S.98 <.1Z.) Oct-99 5.19% 5.3c1 <.20) Apr-01 5.06% 5,16 < .10) Nov-99 5.33% 5.48 <,15) May-01 4.43% 5.33 4°,90) Dec-99 5.49% 5.64 <,15) Jun-01 4.04% L4.9to <,92) Jan-00 5.53% 5,16 <23> Jul-01 3.82% 4.6'+ <.Si) Feb-00 5.69% 5.82 <,13) Aug-01 3.63% LI,50 <.877 Mar-00 5.84% 5,85 <.01> Sep-01 3.41% 4,29 <.€6) Apr-00 5.92% (0.01 <.09) Oct-01 2.73% 3.19 < 1.06) May-00 6.14% b.t9 <.05) Nov-01 2.36% 3.53 (1.117 Jun-00 6.40% (o.366 .05 Dec-01 1 .99% 3.210 <t.21) Jan-02 1.86% 3.01 <I.21) Feb-02 t.7Vie z..91 <1.2%) Mar-02 I.42°/. 2.86 < .447 ( ) = CAMP YIELD IS BELOW LAIF'S EXHIBIT "B" REPRESENTATIVE LIST OF CAMP PARTICIPANTS CITIES City of Alameda City of Antioch City of Brentwood City of Campbell City of Coalinga City of Concord City of Coronado City of El Cajon City of Encinitas City of Fairfield City of Folsom City of Grand Terrace City of Highland City of La Canada City of Lake Forest City of Lakewood City of Lincoln City of Livermore City of Menlo Park City of Modesto City of Murrieta City of Napa City of Palm Springs City of Palo Alto City of Petaluma City of Pinole City of Pittsburgh City of Redding City of Redwood City City of Roseville City of Saint Helena City of San Carlos City of San Marcos City of San Mateo City of San Pablo City of San Rafael City of San Ramon City of Santee City of Stockton City of West Sacramento City of Woodland Town of Yountville REPRESENTATIVE LIST OF CAMP PARTICIPANTS COUNTIES Amador County Calaveras County Contra Costa County Glenn County Madera County Merced County Monterey County Plumas County San Benito County Siskiyou County Solano County Tuolumne County Yolo County Yuba County REPRESENTATIVE LIST OF CAMP PARTICIPANTS SPECIAL DISTRICTS Alameda County Water District Bella Vista Water District Calaveras County Water District California Transit Finance Corporation Central Marin Sanitation Agency Contra Costa Transportation Authority Contra Costa Water Authority Contra Costa Water District Granada Sanitary District Idyllwild Water District Leucadia County Water District Modesto Irrigation District Oakwood Lake Water District Olivenhain Municipal Water District Rincon del Diablo Municipal Water District San Bernardino Valley Water District San Diego Association of Governments San Joaquin Transportation Authority South Bayside Waste management Authority Turlock Irrigation District Vista Fire Protection District West Contra Costa Transit Authority Western Hills Water District Yorba Linda Water District REPRESENTATIVE LIST OF CAMP PARTICIPANTS SCHOOLS Antioch Unified School District Aromas-San Juan Unified School District El Dorado Irrigation District El Dorado Unified School District Gilroy Unified School District Martinez Unified School District Modesto City Schools Morgan Hill Unified School District Mount Diablo Unified School District Pleasanton Unified School District Roseville City Schools Yolo Unified School District a . \ E \ \ El a -t y / $ \ ƒ 2 § \ • - § . . ) Q U (I)" 2 Q U t o ) ƒ *-0 / $ \ ® U § ° ) y H . . 2 •ƒ ; 8 t ) ' a / o » u t 9El / 2 ® { t \ w ) / ] ) \ ) % \ o 4 2 ) • } U ° / \ i 44 ( f / • ƒ © o ._ % O @ u t Q \ ) $ t ® § ©4-4 ° .4 ] 2 2 k \ 2u co— G k u § 2 \ car' . � \ / / / u -sou . , ® el -o ` c § y 4 ; •• m ._ q 2 cn 11 / 9 iii \ ' 0 8 \ / a U o § J o H tU0 . cu / �cd \ to � / Q0 � 0 0 / 2 � / d ƒ \ / \ U \ it 2 -0 3/4 CI 0 . . 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[ORDINANCE/RESOLUTION] AUTHORIZING THE "PUBLIC AGENCY" TO JOIN WITH OTHER PUBLIC AGENCIES AS A PARTICIPANT OF THE CALIFORNIA ASSET MANAGEMENT TRUST AND TO INVEST IN SHARES OF THE TRUST AND IN INDIVIDUAL PORTFOLIOS WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the Government Code of the State of California (the "Joint Exercise of Powers Act") provides that, if authorized by their legislative or other governing bodies, two or more public agencies by agreement may jointly exercise any power common to the contracting parties; and WHEREAS, under Section 6500 of the Joint Exercise of Powers Act, a "public agency" includes but is not limited to any California county, county board of education, county superintendent of schools, city, city and county, public corporation, public district, regional transportation commission or state department or agency; and WHEREAS, public agencies which constitute local agencies, as that term is defined in Section 53630 of Title 5, Division 2,Part 1, Chapter 4,Article 2 of the Government Code of the State of California (the "California Government Code"), are authorized pursuant to Section 53601 and/or 53635 thereof to invest all money belonging to, or in the custody of, the local agency in certain specified investments;and WHEREAS, the California Asset Management Trust (the "Trust") was established, pursuant to and in accordance with the Joint Exercise of Powers Act, by a Declaration of Trust, made as of December 15, 1989 and as subsequently amended (the "Declaration of Trust"), as a vehicle for public agencies to jointly exercise their common power to invest bond proceeds and other funds; and WHEREAS, pursuant to and in accordance with the Joint Exercise of Powers Act, the Public Agency desires to join the other public agencies which are or will be Participants of the Trust by adopting and executing the Declaration of Trust, a form which is on file in the office of the xxxxxxx County Treasurer; and WHEREAS, the Public Agency is a public agency as that term is defined in the Joint Exercise of Powers Act and a local agency as that term is defined in Section 53630 of the California Government Code; WHEREAS, the Public Agency is otherwise permitted to be a Participant of the Trust and to invest funds in the Trust and in the Individual Portfolios to be managed by the Investment Adviser to the Trust ("Individual Portfolios"); and WHEREAS, an Information Statement describing the Trust and the Individual Portfolios (the "Information Statement") is on file in the office of the xxxxxxx County Treasurer; NOW, THEREFORE, BE IT [ORDAINED/RESOLVED] by the (Governing Body) of the Public Agency as follows: Section 1. The Public Agency shall join with other public agencies pursuant to and in accordance with the Joint Exercise of Powers Act by executing the Declaration of Trust and thereby becoming a Participant in the Trust, which Declaration of Trust is hereby approved and adopted. A copy of the Declaration of Trust shall be filed with the minutes of the meeting at which this (Ordinance/Resolution) was (enacted/adopted). The (Presiding Officer of Governing Body) is hereby authorized to execute, and the (Attesting Officer of Governing Body) is hereby authorized to attest and deliver, the Declaration of Trust, in substantially the form presented at this meeting. Section 2. The Public Agency is hereby authorized to purchase shares in the Trust from time to time with available funds of the Public Agency, and to redeem some or all of those shares from time to time as such funds are needed. Section 3. The Public Agency is hereby authorized to invest available funds of the Public Agency from time to time in one or more Individual Portfolios managed by the Investment Adviser to the Trust and described in the Information Statement. t, Section 4. The appropriate officers, agents and employees of the Public Agency are hereby authorized and directed in the name and on behalf of the Public Agency to take all actions and to make and execute any and all certificates, requisitions, agreements, notices, consents, warrants and other documents,which they, or any of them, might deem necessary or appropriate in order to accomplish the purposes of this (Ordinance/Resolution). Section 5. This (Ordinance/Resolution) shall take effect at the earliest date permitted by law. 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City of Palm Desert Parkview Office Complex Financial Statement ti for Fiscal Year 2001-2002 March-02 March-02 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 68,500 $ 62,138 $ (6,362) 90.71%`:, $ 616,500 $ 591,161 $ (25,339) 95.89% Dividends/Interest $ 4,500 $ 1,154 $ (3,346) 25.6500% . $ 39,000 $ 21,104 $ (17,896) 54.11% t Total Revenues $ 73,000 $ 63,292 $ (9,708) 86.70% ` $ 655,500 $ 612,265 $ (43,235) 93.40% Expenses Professional-Accounting&Auditing $ 5,800 $ 6,800 $ (1,000) 117.24% `I $ 58,200 $ 61,200 $ (3,000) 105.15% Professional-Consultants $ 6,000 $ 5,548 $ 452 92.47% $ 54,000 $ 56,840 $ (2,840) 105.26% Tenant Improvements $ 2,500 $ 2,811 $ (311) 112.43% $ 22,500 $ 18,318 $ 4,182 81.41% Repairs&Maintenance Building $ 8,000 $ 11,832 $ (3,832) 147.91% `t $ 72,000 $ 93,756 $ (21,756) 130.22% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% . : : $ 20,700 $ - $ 20,700 0.00% Utilities-Water $ 250 $ 105 $ 145 42.02% $ 2,250 $ 891 $ 1,359 39.59% Utilities-Gas/Electric $ 5,000 $ 4,791 $ 209 95.83% $ 66,000 $ 67,008 $ (1,008) 101.53% Utilities-Trash - $ 700 $ 1,052 $ (352) 150.28%4 $ 6,300 $ 3,156 $ 3,144 50.09% Telephone $ 150 $ 154 $ (4) 102.82% A $ 1,350 $ 1,401 $ (51) 103.76% Insurance $ 521 $ - $ 521 0.00% $ 4,687 $ - $ 4,687 0.00% Total Expenses $ 31,221 $ 33,094 $ (1,873) 106.00%1 $ 307,987 $ 302,569 $ 5,418 98.24% jOperdbinglncome $ 41,779 $. $ft199 '$ (14:5$0) 72.2894 ,'f-347,513 $ 30R,G 6 S137.817) 89129ta( Equipment Replacement Reserve $ 10,000 $ 12,618 $ (2,618) 126.18% $ 90,000 $ 113,559 $ (23,559) 126.18% NetlneOme. -- $_. 31,779;:$ 17.,$:$1 $'(14,1$$}^ ,32°7a . -: $2-57,513-=$ 190,13E (61,377) 76.17% 2002 Investment Report2002 Invest Report City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite March 2002 Suite Square No. Tenant Feet 73-710 Fred Waring Drive -Two (2) Story Building 100 Hanover 1,915 100A EPA(Approved-Tenant will occupay suite as of April 15,2002) 645 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Coachella Valley Economic Partnership 928 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Duke Gerstal 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 University of California Riverside-Lease started March 1,2002 604 203 Vacant 480 205 Vacant 700 208 Alzheimer's Association-Moved from Suite 211 960 2002 Investment Report2002 Vacancy Report City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite March 2002 Suite Square No. Tenant Feet 210 Wilson,Pesota &Pichardo 3,040 211 State of California Department of Food&Agriculture 937 (lease begins April 1,2002) 217 Joe B. McMillan,. Esq. 775 220 CA.State Dept. of Agriculture 1,607 222 Cove Comission-Fire Marshal 1,900 222 CITY Storage-Vacant 1,081 Total square footage(2 story Building) 31,562 Vacancy Rate-2,261/31,562= 7.16% 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--2,261/51,191 4.42% Occupancy Rate-48,930/51,191 95.58% 2002 Investment Report2002 Vacancy Report 1 City of Palm Desert Desert Willow Budget Vs Actual • For the month of March 2002 Budgeted Actual Budgeted Actual March March $ Percentage Year to Year to $ Percentage Revenue 2002 2002 Variance Variance Date Date Variance Variance Course&Ground $ 768,396 $ 669,049 $ (99,347) 87.07% $ 3,582,303 $ 3,276,317 $ (305,986) 91.46% Carts $ 41,400 $ 46,825 $ 5,425 113.10% $ 233,998 $ 255,370 $ 21,372 109.13% • Golf Shop $ 128,171 $ 103,617 $ (24,554) 80.84% $ 659,577 $ 591,823 $ (67,754) 89.73% Range $ 2,000 $ 4,937 $ 2,937 246.85% $ 11,050 $ 28,706 $ 17,656 259.78% Food&Beverage $ 165,302 $ 192,839 $ 27,537 116.66% $ 929,155 $ 1,017,139 $ 87,984 109.47% Interest Income $ 1,500 $ 135 $ (1,365) 9.00% $ 23,000 $ 5,020 $ (17,980) 21.83% ,Total Revenues $ 1.106,769 $ 1,017.402 $ (89,367) 91.93% $ 5,439.083 $ 5,174.375 $ (264,708) 95.13%J Payroll Proshop $ 8,783 $ 5,647 ,$ 3,136 64.29% $ 60,891 $ 36,961 $ 23,930 60.70% ' Cart $ 30,912 $ 34,834 $ (3,922) 112.69% $ 188,230 $ 221,712 $ (33,482) 117.79% Course&Ground $ 121,212 $ 119,743 $ 1,469 98.79% $ 1;123,567 $ 1,077,953 $ 45,614 95.94% Golf Operations $ 28,956 $ 29,733 $ (777) 102.68% $ 223,889 $ 218,806 $ 5,083 97.73% General&Administration $ 41,023 $ 36,698 $ 4,325 89.46% $ 361,570 $ 316,460 $ 45,110 87.52% Food&Beverage $ 62,145 $ 73,620 $ (11,475) 118.46% $ 476,207 $ 485,885 $ (9,678) 102.03% Total Payroll $ 293.031 $ 300.275 $ (7.244) 102.47% $ 2,434.354 $ 2.357,777 $ 76.577 96.85,j I Other Expenditures Perimeter Landscaping $ - $ - $ - 0.00% $ - $ - $ - 0.00% Proshop $ 2,250 $ 6,045 $ (3,795) 268.67% $ 30,950 $ 39,220 $ (8,270) 126.72% Proshop-COGS $ 73,513 $ 65,332 $ 8,181 88.87% $ 328,756 $ 339,371 $ (10,615) 103.23% Cart $ 15,800 $ 15,042 $ 758 95.20% $ 128,900 $ 107,500 $ 21,400 83.40% Course&Ground-North Course $ 36,733 $ 38,515 $ (1,782) 104.85% $ 513,679 $ 588,851 $ (75,172) 114.63% Course&Ground-South Course $ 28,080 $ 25,610 $ 2,470 91.20% $ 514,985 $ 455,405 $ 59,580 88.43% Course&Ground-Desert Pallet-N $ 1,460 $ 289 $ 1,171 19.79% $ 14,195 $ 9,096 $ 5,099 64.08% Course&Ground-Desert Pallet-S $ 1,440 $ 506 $ 934 35.14% $ 14,370 $ 8,594 $ 5,776 59.81% Golf Operations $ 2,500 $ 657 $ 1,843 26.28% $ 13,750 $ 11,999 $ 1,751 87.27% • General&Administration $ 81,435 $ 109,655 $ (28,220) 134.65% $ 669,128 $ 617,544 $ 51,584 92.29% Range $ 3,150 $ 3,250 $ (100) 103.17% $ 15,200 $ 18,698 $ (3,498) 123.01% Food&Beverage $ 15,692 $ 25,072 $ (9,380) 159.78% $ 134,175 $ 175,838 $ (41,663) 131.05% Food&Beverage COGS $ 51,290 $ 61,946 $ (10,656) 120.78% $ 289,671 $ 327,814 $ (38,143) 113.17% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 225,000 $ 225,000 $ - 100.00% Financing/Lease $ 2,396 $ (4,377) $ 6,773 -182.68% $ 27,504 $ 34,893 $ (7,389) 126.87% tal Oth r en itures 340 7 372 542 3 803 10 . 2 920 263 2 823 39 560 1 .35% Desert Willow Golf Academy Desert Willow Golf Academy $ 18,300 $ 9,577 $ (8,723) 52.33% $ 136,950 $ 59,391 $ (77,559) 43.37% COGS-Merchandise $ (4,880) $ (5,206) $ (326) 106.68% $ (41,305) $ (38,160) $ 3,145 92.39% Other Expenditures $ (1,800) $ (993) $ 807 55.17% $ (17,315) $ (13,499) $ 3,816 77.96% Learning Center Income(Loss) $ 11,620 $ 3,378 $ (8,242) 29.07% $ 78,330 $ 7,732 $ (70,598) 9.87% Operatinglncome(Loss) $ 484,619 $ 347,963 $ (136,656) 71.80% $ 162,796 $ (135,493) $ (298,289) -83.23% Equipment Reserve Replacement $ 71,955 $ 66,140 $ (5,815) 91.92% $ 647,595 $ 669,774 $ 22,179 103.42% Net Income(Loss 412 664 281 823 1 841 68.29% 484 799 05 26 2 468 166.10% Snapshot of Golf Rounds Budgeted(mo) Actual(mo) Variance Variance% Budgeted(vtd) Actual(ytd) Variance Variance% I Resident 2,840 3,402 562 120% 13,458 16,068 2,610 119% Non Resident 5,593 5,610 17 100% 33,950 33,126 (824) 98% Other - 671 671 100% - 1,241 1,241 100% Complimentary 229 649 420 283% 1,468 4,067 2,599 277% Total 8,662 10,332 1,670 119% 48,876 54,502 5,626 112% Folder:Desert Willow 2001:Dw2002;Financial Statement Page I W w !to° Nt-cooa n7 yinn [f0ronro mnrn NoovC ac li u Tmhnco a I. aWcdodoclo � .iO WNnNoM0) N co CI0') zt- Mo t. o CB vi-% Ca. 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N co ` 0 q ! ii ■ . § El iti� a ) § co ) fIt ; f cc | Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- MARCH 2002 Resident 3,402 $ 151,245 $ 44.46 32.93% Non-Resident 5,610 $ 558,702 $ 99.59 54.30% Other 671 $ 1,580 $ 2.35 6.49% Complimentary 649 $ 3,065 $ 4.72 6.28% Desert Willow Totals 10,332 $ 714,592 $ 69.16 100.00% • • Dw2002;PDs AVG RD Page 11 Desert Willow • Breakdown of Rounds per point of sale system FIRECLIFF COURSE- MARCH 2002 Description No. Of Revenue Avg. Per Pet to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 720 $ 32,400 $ 45.00 12.98% Resident Fee-Weekday 795 $ 35,775 $ 45.00 14.34% Resident -Twilight 71 3,195 $ 45.00 1.28% Total Resident 1,586 $ 71,370 $ 45.00 28.60% 1 Non Resident Posted Weekend 248 $ 40,920 $ 165.00 4.47% Posted Weekday 244 $ 32,940 $ 135.00 4.40% IROC Des. PRTY - Weekday 109 $ 7,358 $ 67.50 1.97% IROC Des. PRTY - Weekend 157 $ 12,953 $ 82.50 2.83% IROC MBR-Guest - Weekend 39 $ 5,148 $ 132.00 0.70% IROC MBR-Guest - Weekday 52 $ 5,616 $ 108.00 0.94% Wholesale Weekend 476 $ 51,375 $ 107.93 8.58% Wholesale Weekday 391 $ 36,846 $ 94.24 7.05% Twilight 265 $ 23,802 $ 89.82 4.78% Super Twilight 98 $ 6,370 $ 65.00 1.77% Posted Replay 17 $ 1,530 $ 90.00 0.31% Fee Pass Fire - Card 329 $ 23,100 $ 70.21 5.93% Outing -Weekend 206 $ 26,261 $ 127.48 3.72% Outing -Weekday 115 $ 10,373 $ 90.20 2.07% Fee Special Event Variable 232 $ 13,422 $ 57.85 4.18% Total Non Resident Rounds 2,978 $ 298,014 $ 100.07 53.71% Other Rounds Junior Walking 601 $ 880 $ 1.46 10.84% Total Other 601 $ 880 $ 1.46 10.84% Complimentary VIP 39 $ - $ - 0.70% PGA Member 96 $ 1,800 $ 18.75 1.73% Donation 41 $ - $ - 0.74% COD / PDHS 146 $ - $ - 2.63% Employee / Employee Guest 58 $ 175 $ 3.02 1.05% Total Complimentary 380 $ 1,975 $ 5.20 6.85% Total Round (FireCliff) 5,545 $ 372,239 $ 67.13 100.00% Dw2002;POS AVG RD Page 12 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- MARCH 2002 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 833 $ 37,485 $ 45.00 17.40% Resident Fee-Weekday 898 $ 40,410 $ 45.00 18.76% Resident Twilight 85 $ 1,980 $ 23.29 1.78% Total Resident 1,816 $ 79,875 $ 43.98 37.94% Non Resident Posted Weekend 198 $ 32,161 $ 162.43 4.14% Posted Weekday 201 $ 27,135 $ 135.00 4.20% IROC Des. PRTY- Weekday 144 $ 9,720 $ 67.50 3.01% IROC Des. PRTY- Weekend 199 $ 16,418 $ 82.50 4.16% IROC MBR - Weekend 41 $ 5,412 $ 132.00 0.86% IROC MBR- Weekday 78 $ 8,424 $ 108.00 1.63% Wholesale Weekend 441 $ 48,181 $ 109.25 9.21% Wholesale Weekday 399 $ 36,677 $ 91.92 8.34% Fee Pass - Card 357 $ 25,275 $ 70.80 7.46% Replay 18 $ 1,620 $ 90.00 0.38% Twilight 229 $ 20,610 $ 90.00 4.78% Super Twilight 69 $ 4,485 $ 65.00 1.44% Passport-Weekend 2 $ 230 $ 115.00 0.04% Outing 139 $ 14,915 $ 107.30 2.90% Fee Special Event Variable 117 $ 9,425 $ 80.56 2.44% Total Non Resident Rounds 2,632 $ 260,688 $ 99.05 54.98% Other Rounds Junior Walking 70 $ 700 $ 10.00 1.46% Total Other 70 $ 700 $ 10.00 1.46% Complimentary VIP 28 $ - $ - 0.58% PGA Member 42 $ 860 $ 20.48 0.88% Donation 53 $ 30 $ 0.57 1.11% COD / PDHS 78 $ - $ - 1.63% Employee / Emplpoyee Guest 68 $ 200 $ 2.94 1.42% Total Complimentary 269 $ 1,090 $ 4.05 5.62% Total Round (Mountainview) 4,787 $ 342,353 $ 71.52 100% Du2002;POS AVG RD Page 13 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of March 2002 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 812,765.20 II Variance- Favorable Unfavorable $ 312,765.20 J Page 14 PalmDesert Recreation Facilities Corporation Income Statement Mar-02 Mar-02 # %a Budget Actual Variance Variance Food & Beverage Revenues $165,302 $192,839 $27,537 116.66% Total Revenues $165,302 $192,839 $27,537 116.66% Salaries $62,145 $73,620 ($11,475) 118.46% Cost of Goods Sold-F&B $51,290 $61,946 ($10,656) 120.78% Food & Beverage Expense $15,692 $25,072 ($9,380) 159.78% Total Expenses $129,127 $160,638 ($31,511) 124.40% Net Income (Loss) $36,175 $32,201 ($3,974) 89.01% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2002;PDRFC Budget Page 1