Loading...
HomeMy WebLinkAbout2002-02-27 IFC Regular Meeting Agenda Packet • Finance Department \ iiirAti MEMORANDUM To: Rachelle Klassen, Deputy City Clerk From: Diana Leal, Administrative Secretary .ey Subject: Investment and Finance Committee Date: April 1, 2002 Attached is a copy of the February 27, 2002 minutes of the Investment and Finance Committee approved by the Committee on March 27, 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\Wpdocs\lnvestment Committee\2002 Memos\City Clerk\1-15-02 minutes.wpd . 1 - ) 4. \ $ w tn % } / A a � �( z a ! t 2 ° 4 A \ k , 2 R4 9 q • § 3 \ m a • o g $ y u w a o ) § » \ % ® $ \ § § \ \ § \ \ ) � � ( , 2 4 { \ ) / < \ ® \ ¥ / \ \ / � . } k �/ IA/ ) ni{„) ,...„:';N..,-c \ ... K, ' 1 \»/ \ . ,, . /\ ` a` ,.i / . ..� \ % , „.. . CITY OF PALM DESERT Kett / °. INVESTMENT & FINANCE COMMITTEE ;j AGENDA vti 19/ February 27, 2002, 2:00 p.m. - a r ' :�t •a -W North Wing Conference Room ••"9rE9�35.;r 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. 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 January 15, 2002, as submitted. Action: 1 022702.wpd INVESTMENT & FINANCE COMMITTEE AGENDA February 27, 2002 V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for December 2001 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for December 2001. Review status of capital projects and cash-flow projections. Action: B. Review Short-Term Investments Maturing in February 2002 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and 3) agencies discount notes Action: C. LAIF Withdrawal Legislation Rec: Review and submit for the next City Council agenda Action: D. State of California Local Agency Investment Fund — Forty-Fifth Annual Report, Fiscal Year 2000-2001 Rec: Informational item for the Committee to review. No action required E. City and Redevelopment Agency Monthly Financial Reports for City Council for January 2002 Rec: Report and submit to City Council Action: 2 022702.wpd r • INVESTMENT & FINANCE COMMITTEE AGENDA February 27, 2002 F. Parkview Professional Office Buildings - Financial Report for January 2002 Rec: Review and file report: Action: G. Palm Desert Golf Course Facilities Corporation Financial Information for December 2001 Rec: Review and file report Action: VII. CONTINUED BUSINESS None. VIII. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status report on issuing new bonds Action: IX. NEXT MEETING -Wednesday, March 27, 2002 at 2:00 p.m. X. 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 215` day of February, 2002. i `a L I, rdin. Secretary 3 022702.wpd CITY OF PALM DESERT / . /, �1 \ INVESTMENT & FINANCE COMMITTEE ir/ Minutes b.� /.4 _ February 27, 2002, 2:00 p.m. `:;°� r,:' North Wing Conference Room •..'pia..9�.•• I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, February 27, 2002, at 2:09 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Chairman Thomas Jeffrey; Investment Manager Jean Benson, Mayor Pro-Tempore Bob Spiegel, Council Member Carlos Ortega, City Manager Dave Erwin, City Attorney Russ Campbell Murray Magloff Bill Veazie Everett Wood Also Present: David Yrigoyen, Redevelopment Director Diana Leal, Recording Secretary III. ORAL COMMUNICATIONS Mr. Everett Wood was sworn in as a new member of the Investment and Finance Committee by Deputy City Clerk Rachelle Klassen. Ms. Klassen reminded the Committee members about submitting their Conflict of Interest Statements and offered to assist them in any way possible. Mr. Gibson welcomed Mr. Wood. Mr. Wood spoke briefly of his background. 1 022702.wpd INVESTMENT & FINANCE COMMITTEE MINUTES February 27, 2002 IV. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Spiegel and seconded by Mr. Veazie to approve the Minutes of the January 15, 2002 meeting as submitted. Motion carried, with Mr. Wood abstaining. V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for January 2002 Mr. Gibson said that Mr. Jeffrey was out of town and unable to provide the report for January. He asked the committee members if they had any questions about the reports provided. He said that the City is still ahead of LAIF at 3.27 versus LAIF's 3.07. The City continues to drop as maturities mature. There being no questions, reports were received and will be filed. B. Review Short-Term Investments Maturing in February 2002 Mr. Gibson gave a brief overview of maturing investments in February 2002 for the City and for the Redevelopment Agency. C. LAIF Withdrawal Legislation Mr. Gibson said that there is concern about the Local Agency Investment Fund. In 1997, the Howard Jarvis Tax Payer's Association brought suit against the State of California over the issuance of state warrants, including warrants paid from the state to the banks to cover wire transfers for money invested in LAIF. This law suit prevents anyone from withdrawing any funds for approximately two months. There is a constitutional amendment which prevents the State from issuing any warrants without a budget adopted as of July 1. The problem this presents to the City is that cash that is with LAIF ($40 million RDA and $40 million City). 2 022702.wpd INVESTMENT & FINANCE COMMITTEE MINUTES February 27, 2002 cannot be withdrawn until the State has a budget in place. Mr. Jeffrey is in Los Angeles researching the court case involving LAIF withdrawals to assist him in preparing language to be presented to legislation before • June. Mr. Gibson is looking at other investing alternatives. D. State of California Local Agency Investment Fund Forty-Fifth Annual Report. Fiscal Year 2000-2001 Mr. Gibson said that LAIF is a State of California program whereby the state allows local agencies including counties, cities and special districts to place their surplus cash into LAIF's pool of cash. LAIF invests the surplus money for the local agencies and provides the local agencies with quarterly interest based on earnings. Typically, the length of maturity for the monies invested is about 165 -180 days. Mr. Magloff inquired about the security the City has in relation to the monies provided to LAIF for investing. Mr. Gibson said that LAIF sets up an account for the investments/assets of the pool. The City is a member of the pool thereby making LAIF assets our security. Mr. Magloff asked if LAIF is restricted by law as to what instruments they can invest in. Mr. Gibson said that they have the same restrictions as the City. The only difference is that LAIF can utilize the lowest A rating and still can invest. They can receive a little better yield than the City, however, they are required to do more due diligence on the review of the companies where money is to be invested. The City continues to do comparisons of other money market companies, and overall, LAIF does very well. E. City and Redevelopment Agency Monthly Financial Reports for City Council for January 2002 Mr. Spiegel asked if information for the fourth quarter had been received. Mr. Gibson said that the fourth quarter information is expected to be received by March 24, 2002. The third quarter report was for the period of August through October 15, thus it included September 11. Fourth quarter report includes October 16 through January 15. The state said that the statewide average was down 3% for the third quarter. The sales tax auditor indicated that northern California created the negative 3% as they were impacted more severely. Southern California fared better than northern California. Mr. Gibson said that the first installment of the tax increment was received and is reflected in the Redevelopment Agency report. 3 022702.wpd INVESTMENT & FINANCE COMMITTEE MINUTES February 27, 2002 There is $10.7 million in the,McCallum Foundation account. McCallum is currently working with Rancho Mirage and Indian Wells to obtain additional funding. Mr. Gibson said that he will provide the committee with a copy of last year's financial statements at the next meeting. Ms. Benson asked if the Joint Power Authority bond was included. Mr. Gibson said that it is strictly the refunding of existing bonds that were issued for Project Area No. 1. Pricing will be done on February 28 and the closing will be March 13. Mr. Magloff asked how the Joshua Hills project, where they plan to build 7,000 homes, three hotels, etc. , affects the City of Palm Desert and what will the City do to prevent the loss of the "desert" look. Mr. Ortega said that the project will not directly impact the City financially, or through requirement of services. He said that for a project of that size an environmental impact report is required that will take a few years to complete and can delay or stop the project depending on the findings. However, if all environmental issues are addressed, the project can continue. F. Parkview Professional Office Buildings - Financial Report for January 2002 Mr. Gibson provided a brief summary of the financial reports for January 2002 and informed Mr. Wood about the location of the professional office buildings and status of tenants. Ms. Benson inquired about the use of funds received from the Parkview Office Buildings. Mr. Gibson said that last year a staff report was presented to the City Council asking for direction on how to use funds received from the Parkview Office Building and the Council asked that staff direct the funds toward park expenditures. $1 million was transferred to the park expenditures which will be used to fund the amphitheater project. Staff does not expect to have funds available this year as various tenant improvements are expected to be completed. There being no questions, discussion ensued to the next agenda item. 4 022702.wpd INVESTMENT & FINANCE COMMITTEE MINUTES February 27, 2002 G. Palm Desert Golf Course Facilities Corporation Financial Information for December 2001 Mr. Gibson said Rodney Young was not in attendance. He asked if any one had any questions. Mr. Spiegel said that he noticed that the rounds were down. Mr. Gibson said that the number of rounds from residents are up while the non- residents are down. Therefore, the dollar per round is lower than it would have been last year. Mr. Spiegel asked what was to be attributed for the increase in Food and Beverage. Mr. Gibson said that he believes that the increase can be attributed to the overall management of the new food manager, their new menu, their cost efficiency and staff availability. • Ms. Benson asked about the status of the lights for Desert Willow as the parking lot is very dark at night. Mr. Ortega said that at this time no capital money has been appropriated for the lighting at Desert Willow. He thinks that maybe the City should wait to see what the hotels will be providing in the area. For the most part, Desert Willow remains a day operation, however, they do expect to have some functions in the evening and eventually becoming a place where dinners are provided. Ms. Benson said that she was concerned about the potential of people having an accidental fall due to the lack of lighting. Mr. Spiegel mentioned the trees at Desert Willow looked as if they were in need of being trimmed. Ms. Benson agreed and said that at a meeting she previously attended City staff mentioned that the trees would be trimmed in April. VII. CONTINUED BUSINESS None. VIII. 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. 5 022702 wpd INVESTMENT & FINANCE COMMITTEE MINUTES February 27, 2002 B. Bond Issuance by Palm Desert Financing Authority Mr. Gibson said that Mr. Coleman was unable to attend. He distributed a memorandum prepared by Mr. Coleman which recapped the status of the Project Area No. 1, 2002, Series A Bond Issue. Mr. Ortega said that the memorandum includes the potential interest rates attainable. A few months ago, the City was able to obtain a yield of under 5. Now, it is looking at an effective yield of 5.05 which is still considered a good rate. Miscellaneous Mr. Campbell said that he would not be able to attend the next Investment and Finance Committee meeting as he will be on vacation. IX. NEXT MEETING - Wednesday, March 27. 2002 at 2:00 p.m. X. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 2:40 p.m. Respectfully submitted, Dian Leal, Rec r ng ecretary 6 022702.wpd o § r § § §1,3 c; ; ; 0Du 311110 0 EC al \ \ \ � § § ) ) | | 7 ] ) ) | 0002 , : oet! Orr 1 & , : § § q § kk * IL 0 ƒ � ( 0 lif ; § E m ; o = 1 00 ; 0 2 \ \ 2 cam ) mm £ _ae ® X { 3 § ; 2 # 0 a0000 } en Iv co 2 U } H , § 5 � \ \ ( 0 / ! ) ! A O N O d CO 113 O c w P. IJ_ N R m C) m co N J r N V < N A A T CD C 4 o - -1 c m 0 q C,71 c m cn D CD a vgo c m A N A o rn O N = 3 T < m c c fD CD Z o m Cr - N N '� m T° CO N Z T C : d m N z C0 3 o N = o N C P O m m m 9 3 o o o w C o o o 7 m Cl, AE N p� o m n C) 0 3 3 N aW ✓ en0 3 a m O 7. O u A N v D e in 0 a ., o u ai o h a o R YS - e ,a ffi ca o o ,5 A W 0 o w W c, t- a 0 0 0 0 0 0 e o 0 0 0 0 0 0 0 10 <{ 0 V1 .-. .�-i N M O n.N O N .tied �. ON ,�. C1 ma .. .N. ON .-� 9 r ON r r CO r C 0 N IX O o P7 ❑ A 7 Web 00 N .-�. M 0 T r .. 0 Vt 7 Vi C\ O 01 0 ro 00 C. o N C, O en O Vl N 0 O 4\ O 00 V? O C 'O OY r? u1 7 co a, O Vl o d' 0 000 W W Q 7 N N O O .4 0 7 Q N M M .-• N O O a Ce 71 alO tg 0 of JW �. 00 in M Vl r- o 00 a < G CN N vri 7 O 00 0 > a F F _ � r r U � OOOOO � N Um Q U a : N VI O, l0 0 00 N M V1 N 't .N. N o ' y O C so N O> Vl 0 0 r re-; 7 en o r O> >, W �. 00 M 00 ^} ‘Ti- �O Vl C; 'V; _R t+l r O .• 00 0 0 .. 11 13/44 G - v CM - .-. o O 0 M i r; v r; CM O in .-: o r ti d Q 0. q q 0 V 4 O O_ N O O N ON. ‘0 "Zr ,is CO ,--I 70 ON 0 N A 0 t' O 0 N N 7 — 7 ref ON N vt 4 Ci O VV./ 0 N 0 OA 00 't N \0 V tr.. N 7 LO 00 .0 N En in 0 ^+ 0 4 N — O o o — O . V 47 ^ M O Q\ O 1- PA PA P o A 0 O El F > O 0 R 0 0 0 0 0 0 0 O otie M o en o 0 or- of ON m. a • 0 0 0 0 0 0 0 00 0 0 7 00 l� Cr: 7 Cr! 0 06 0 0 0 0 o CO 0 0 i 0pMN M N .--. .^ ^ ^ M9 F 0 0 0 0 0 0 0 -.9+9 ti yQ Q ° 0000 0, oN N 00 0 0 O— 0aO o in ^-i Vl .0 Er) h N o o d C 44 4N In 4M M y C ex o — 0�4 O o m s. a Y c .0 O 0.1 C O 2 2 NO x C > o ed 4) Lx -o i;_ oN F. 013 a P. t m TN T S. q O WP. V / / mob� i. 0,0.1 I r 00, > Of O O. ^y C oY yqo ta"a ' m 'n o O E • a to a ( Q s 4 -51 > WH b ,[[ v'l r` mPA O etW 4) F tiw cm o �. F z 7O C 'o I C '\. yC 0` o om x " P :4 � >' y 0 d i 7 7 m LL n o Na oi .uYL ; P+ 0 7 O.y 0 ou0 a oa C O N Q g o ,2 nOy CDqa w ° F 0, Z o imi � � O idmF44 W 4md O x a0 a a U ' N F W F FTi .i Finance Department x .? Interoffice Memorandum To: Investment and Finance Committee From: Diana Leal, Administrative Secretary Subject: Feb. 27, 2002 Investment and Finance Committee Meeting Item Date: February 22, 2002 Attached for your review is the Redevelopment Monthly Financial Report for January 2002. Please insert the report in your sorter under section"E". Thank you. I look forward to seeing you at the meeting. G:6hlance\Diana LeanWpOoaunvesUnem Committee\INVSTCOMPAemos 2003V.lemnsUmscom Lwpd ;f PALM DESERT REDEVELOPMENT AGENCY COMBINED STATEMENT REVENUE AND EXPENDITURES COMPARED TO BUDGET 31-Jan-02 TOTAL RDA RDA RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1,5 Tax increment 38,265,287.00 22,321,417.42 20,728,353.50 93% 1,593,063.92 2 Interest 986,000.00 575,166.67 753,560.01 131% (178,393.34) Sales of Property - - - 0% - 3 Reimbursement From Other Agencies 1,207,300.00 704,258.33 951,238.60 135% (246,980.27) Other Revenue - - 2,801.35 0% (2,801.35) Transfers to/from other funds - - - 0% - TOTAL REVENUES 40,458,587.00 23,600,842.42 22,435,953.46 1,164,888.96 • FAV(UNFAV) EXPENDITURES Administrative Costs 1,127,150.00 657,504.17 546,385.92 83% 111,118.25 Professional Services 1,206,888.00 704,018.00 70,442.26 10°/ 633,575.74 6 Property Tax Administrative Fee 577,543.00 336,900.08 - 0% 336,900.08 Payments to Other Governmental Agencies 13,284,792.00 7,749,462.00 1,297,252.24 17% 6,452,209.76 Bond Issuance Costs - - - NoBudget - Bond Discount - - - NoBudget - Interest And Fiscal Charges 9,489,885.00 5,535,766.25 3,176,945.24 57% 2,358,821.01 Principal Payments 3,055,000.00 1,782,083.33 51,159.27 3% 1,730,924.06 Cost of Inventory Sold - - - NoBudget - NoBudget - Capital Outlay NoBudget - Office Equipment 13,617.00 : 7,943.25 1,159.27 15% 6,783.98 Undergrounding Projects-Major Art 1,970,937.00 • 1,149,713.25 - 0% 1,149,713.25 Undergrounding Projects-Neighbor 3,000,000.00 1,750,000.00 - 0% 1,750,000.00 Undergrounding Projects-Hwy 74 2,100,000.00 1,225,000.00 - 0% 1,225,000.00 Entrada-El Paseo 8,938,164.00 • 5,213,929.00 119,981.97 2% 5,093,947.03 Parking Spaces 400,000.00 , 233,333.33 312,893.54 134% (79,560.21) Parking Lot-Pres Plaza 1,015,115.00 ' 592,150.42 . - 0% 592,150.42 4 Fred Waring Street Improvements 4,293,784.00 2,504,707.33 - 0% 2,504,707.33 1-10 Cook St Interchange 250,000.00 250,000.00 250,000.00 100% - Business Center 33,850.00 19,745.83 - 0% 19,745.83 UCR Infrastructure 2,000,000.00 1,166,666.67 - 0% 1,166,666.67 Cal-State Infrastructure 1,200,000.00 ; 700,000.00 - 0% 700,000.00 JFK Clinic 300,000.00 ; . 175,000.00 - 0% 175,000.00 Sandpiper Improvements 400,000.00 , 233,333.33 - 0% 233,333.33 Palms to Pines East Project i 1,000,000.00 583,333.33 - 0% 583,333.33 Public Library/Community Center f 403,915.00 , 235,617.08 210,212.18 89% 25,404.90 No.Sphere Infrastructure 3 1,097,364.00 ! 640,129.00 15,172.05 2% 624,956.95 RDA Projects C 3,313,582.00; 1,932,922.83 - 0% 1,932,922.83 Desert Willow Pad Stabilization 200,000.00 1 116,666.67 40,851.82 35% 75,814.85 Section 4-Desert Willow 81,690.00 47,652.50 3,153.96 7% 44,498.54 Property Acquisition 1,996,904.00. 1,164,860.67 2,042,886.07 175% (878,025.40) Business Enhancement Program 1,000,000.00 ! 583,333.33 155,000.00 27% '428,333.33 Contrib-McCallum 5,000,000.00 ; 5,000,000.00 5,003,120.00 100% (3,120.00) Contrib-Housing - 1,800,000.00 , 1,050,000.00 - 0% 1,050,000.00 Regional Park 7,250,000.00 4,229,166.67 - 0% 4,229,166.67 Transfers Transfer Out Administrative Costs - - 0% - 3 Transfer(In)/Out Capital Exp Reimb - (1,782,563.00) 0% 1,782,563.00 5 Transfer Out Low/Mod Set-Aside 7,651,150.00 : 4,463,170.83 4,145,670.70 93% 317,500.13 TOTAL EXPENDITURES 85,451,330.00 52,034,109.17 15,659,723.49 _ _ ____ _ 36,374,385.68! 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements for the Library are posted at yearend. 4. 5. 20%Set Aside included here,shown as transfer out 6. Administrative fee net from TI RDA Financial Report 1-2002 J. Moore 2/22/02 O N O N 0 0 N 0 0 0 0 O N O O O r V 0 O o O o O 0 O O 0 lO O N o r O O O O 0000 0 V 0 c0 O N O) O 0) 00000 O N 0 0 0 O) i 0 o 0 0 0 0 0 0 0 0 — 0 0 oM 0) 0 0 0 0 0 0000 O d' O c0 0 0 O O L0 M O O D 0 0 0 0 0 r t•') O O O O O O O O O N N O n) O O O O O O O M O O r 2 N 0 coo N N O N W W O r 10 N W O N CO M CO_ r 0 0 MO fl 00 0 N r M m O r N r a A N o N M O N r O N O O In O M N N C] N O' co O co O W a 0 r r m rr a O N O 0 0 OH r N Q 0 r M N N O r O r 0 N N CO y I Z O r o M 0 D Se- ri of W m.. LL O m o a .(70) o a 4 N • N W 0 O O Cl 0 O 0. o 0 of ci cd', J tin co 0 N (0 f 22 or of co <0 - as co r Q 0 • Cl I 0) N 0 W M 0' N O. M N (0 0 Nf c N 0 0C d C N O O (O r orco ' O E d' o N i0 O M 01 M a s r r d W m • m (o v) Cr NO r Ne o co roo a: 0 0 M m W r N 0)• IO o c o o r, 666 m; C) n O l 0 N m r '0 N O) O N NON V d 0 r 0 (O O i or 0) 0 O N coo .- 0) a Qff2 V N N O` p Cr,) O) N O O M O O WTI 0 0: 10 r M N N CV ,-. 0 ob N 01 ✓ O o 0 0 0 O 0 0 0 0 0 0 0 0 0 O O O O O O O o 0 0 0 0 0 O 0 0 0 0 . O U OOOOOO O. O0 O000O oOooO000000OOOOOOOOO• 01, , , Z P 0 0 O OM too rrOOQomyOOOOOOONdNOOd' OOO.O 000 (00 ? 001000000? 00000-0000 Cl (Oi W N ice O M 6o] N 0?O O O r O M 0 0 0 0 0 0 M R)O (O W O O O O Cr EN M r MOOOof O N MO 0'i 000 O O Mr l: No0 OOO rf N N N NM .-N 0 O 0 0 0 0 0 0 O.O 0 0 0 W 0 0 0 0 0 0 N Q -m d' r .- 0 0 0 r 0 d' o N N O N M d' O d' O M N 0 0 O o�N N Z f x 0. W r • O •p a) Q m a c a`) E a WC a `o o r °) Eo 2 _0 E w w N ry N N d d N 2 N SD W 0 0 0 2 Z S > m toO w O m cc N N N 22 0 r0 2.2,0 N a U d Q W W C 43 0 u G U m n a m c 2•E '5 n 3 'c o x _ w Q. w c ? vdd E (`O o maoo .- o m '- wm > p 0 .15 o o Q a t u E ;� E 2 m — c E .: m m 0 F- K E w w2 a` a`a m dE 22 > w o m3 ou E o, � 'no G (F 2 z .0, 0 2• O d 01 W O] N N N _-' N O U a y .N ry {p C •E c Z y 0 a w o '2 E m E o c'o 4' w a, m 5 c 2 m E c a''S m d,Q t U ' " E V 3 W W W m'c m W V y Q 2 'S > > >w a o e m V = 0 a 2@ aoi Q w S ¢ O _1 x O S 'c o. d a' 0 > - c o Q Q o m J m o @ m E `m o n m 'o m m 5^5 W 27•p 0 2ES Wv co d w wrn '^ aw o m `c ,(_o_ n... � c c as c c 0 m a a' m Q rc m o ~ = = d d d m a c 3 U — y U a w y y a o d c 'S E O c 0 N O 0 7 V) '(n T 0 9 V a "� 'E O Y C E 1) Q N U d VI C C 0 ry ry ry V W e '^ O t) O 'c H ry`o < C C C N N i) 'NJ U N ' N (O J O D N ry Q 7 0 0 N w O a (A ° .x �_ E •0 f o E 2 o H OO »>wa auMDO tOaaZWOmamOUCC E 2 2 2 r EE wr comu aaaCO�o a 21- - c w x m m C w 0 it j 00) 00) 000 0' 000 V 00 Tr 000 CO N 7 O M 0 0 0 0 0 (.00D100030 O 0 r r, . M O N O O O M O 0 O N O O N O O O O 0' co co O (co e) 0) N 0 co in 0)) O 0 0 To r N N W r N I N fl 0� o 0 N N' r. co- of <0. I— O) 0) 0 0 D a ' O C . 0) 0) co 'c o co no o N L O O Z C 5 N N 7 Q Li... LLJ o 0 v v o co i.- v' 0 0 0) N. m a• co W > N N 0) co Tr r W a, @ r r v co 0) 0 M 0 O N N N M r '0 O I— d Q 0 O N (D. CO' m M CO-, W 0 0 N 0 Tr Lc? lm CO 5 coco (0 IN N 0 co Co. i(0 co 'p N O co COi (O T- o_ Q N co 1� i 1 T 0 (0 o N 00 N, 0 C) Cl.)• O N CO 0 N N O 10. CO N 0 co Q a)) a` Q` cD coO Ti Or) r to O Cr) N N V 0 (0 c Q. 0 co coam co O O co co O W (0 N v. 6M m (o ' O T— O O r O O N N. M V! 0 N O M' ` CD• °MS M d Q N N uuMO'', N N N i C N 0 0 0 0 0 0 O. 00000000 O O: V Q) • 0 0 0 0 0 0 N-' O O O O O O O O 0 0' C In 0 r 0 0 0 0 0 R' O O C) O) O N-0 O O! d m _m N O O 0' O 0) CO 0 r C _ NO O Na CD 00 C)I O > > LOU) W CO N' I r Tar- O O 1n oM'), .0 • �. N 'm. N N V N'' N N. Cl- O CO NI N o (a = c0+) M D)C) �1 0 d 0) N O CO a) E 73 ti c Q 0 E w - ~ m 0 Q 0 LL N (� a N -00 O -ca > E m > 111 N co c =_ To N m « N 3 O . N U N N (I .y. U N a 0 Y C N 2• 0 7 Z 0 .0 0 (��OQ} N -C 0 V j 0 C N O N N N 9 L U y N - J 0 d 2 N E. Oam aj ,_ > a) coQ O 8 cii E QO -J O. ..-c CC d o E Fa o re > m w 3 a m 5 ^c 5 Ij E a 0 >> m ri o l->. co 2 8 a d o o d 'y y c)• y O O d' �+ r y N L N N D N O. w cn w 0 C 0 C X cv E L E F C -E p T C C N .0 W W 2 ~ .X N > � inmOF- o,¢ aaamm - a rt- I- 1- 1- K w PALM DESERT REDEVELOPMENT AGENCY 31-Jan-02 Schedule of Revenue and Expenditures HOUSING FUND YTD (FAV)UNFAV Budget Budget •• Actual YTD Variance REVENUES 2 Transfer in of 20% Set-Aside 7,685,200.00< 4,483,033 33 4 1d5,t570.74 337,362.63 3 Interest 20,000.00 11,666.67 11,666.67 Rental Income 48000.00 i 28,000.00 16,701.84 11,298.16 Sales of Property - 153,000.00 (153,000.00) 1 Reimbursement From Other Agencies - - 2 Housing Mitigation Fees - Other Revenue - 282,602.13 (282,602.13) TOTAL REVENUES 7,753 20000 4,522,700,00 4,597,974.67 (75,274,67)< EXPENDITURES FAV(UNFAV) Administrative Costs 417 400.0a 243,483.33 189,970,05± 53,513.28 Professional Services 305000.00 177,916.67 92,686.11 l 85,230.56 Property Tax Administrative Fee - - Cost of Inventory Sold - 6 Interest And Fiscal Charges 2,580198,00 1,505,115.50 1,298,956,58 206,158.92 6 Principal Payments 955,000,00 557,083 33 • 955,000,00 (397,916.67) Office Equipment 5,000.00 2,916.67 364.21 2,552.46 Acquisition Rehab/Resale#7 780,000,00 455,000.00 21,29039 433,709.61 Home Improvement Program 1-6 - - 80,698.68 (80,698.68) Palm Village Apartments - - - Property Purchases - - 5 Desert Rose • • 10,COO.00 ':. 5,833.33 59.99 5,773.34 5 Portola Palms Mobilehome Park 470,000,00 99,166.67 177,280,47 (78,113.80) Fred Waring Improvements - 363,895.D0! Multi-Family Improvmt Program 200 ODO.00 Housing Development 3,812447,00 2,223,927.42 795,899.78 1,428,027.64 Transfers - Transfer(In)/Out Administrative Costs - Transfer(In)/Out Capital Exp Reimb - TOTAL EXPENDITURES 9,235 045,00 5,270,442,02 3'976,101.26 1,658,236.66 Notes: 1 Reimbursements are various throughout the year 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 5 Includes re-purchases and re-sales 6 Debt Service is due 10/1 and 4/1 of each year Housing 20% Financial Report, J. Moore 2/22/02 a - Q 1 CO N a N r O 0 ol a 0 a)1 U C IC N O CO N CD N O Z C = CO a r a ea M co , r 0) co E 07 or. r) co- v O 0) Q To ^O .- V v O N Q w O CCO CMO 0 CO V 00 0 0))) 0 OD 0 N 0) N 0) N coN O r O N 0 0 N a CO CO 0 } o coN N (NO N � 0)0) U 00) N co CV (O f- N r) N C) CO 0) 0 CO 0 CO N O r a N 0 a 0 CO C) CO J 0) N M 00) N Cr) 1- co U co Ia- ¢T N O co N ft N 0) '- CO O to co CO COO N 0 U) c.5 cc; a�} N Cr? (') a O CO O 0 O (O M E N O CO N ri or CO O OO ci CO a N a N CUO CO CO CO r N M # N Cv)) en0 co N C') a CN r' O -+ to C I d E toa N N CO0O CO N --' n ° ri f` 0 0i Ci ' LL] N Ti CD NCti 0CD N co.b C0O N N- CO co CO a N N co- N N N d ' N N r N 0 r N (r') O) O n 0 (No N M u0] Co co O COam R Ti 0 N N (0O CO N LC) Co (o 0 a) 0 CO r N- N (o n a 0 — N d H C co (o N co (O N N a aN N d O O r_ a n (+) tE" a „ 0)) 8 N- CO0 CV CI CO N 0 0 (UO N p o LO O O (0 L tO 6 CO 0) m L- Z " o) r CON 0 O CO CO CO r) N N a Z a a N la Y U) r) C) 6 R v LO C CO N ( N CO or C`a') V coE d C 0 CO a LLO Cn N r O r) Ce or N _• W n (n M CO COO_ N- a co a coa Q # o a ^ a CO 6 CO 6 Tr a I m N r) Q J d N CO CO VO O rO CO O O (OO COO CO 00 'O N t` a 0) N O (O n CO COD a CCOO CO Oa) PO- co co 0 00) v (NO # N (6 CON CC) a 6 (D N N O ram) a) .- t- 'I- a) 0 CO co co (O or O O (O co f- CO O a O N CO 0 0 CO CO N .0 O 0) (O O 6 Oi ci O CCi ci a N N. CO CCOO 0) CD N 00) NN- 0 a # N N N CO a or:a ' O r U a 0 a) a) co I o a N C j co ND O a) N 'O CC a) W a) N co iD C N C o. % O c E d F~o- a c a w w c m O O CU a w a) N O) g C 0 N O UI H � 2 m N To 7 (C O ° co a) t C O N C aa N 0) f0 N O m - a 0 0 a 2 0 a To I' aa)) x o a w C I-- " FORTY-FIFTH ANNUAL REPORT E ms, T41 7�: FISCAL YEAR 2000/2001 ue y a: S f is.b r`£,iy3�1..` I POOLED MONEY INVESTMENT BOARD PHILIP ANGELIDES State Treasurer and Chairman 1 1 1 California State Treasurer's Office 915 Capitol Mall Sacramento, CA 95814 • (916) 653-2917 Pooled Money Investment Board Executive Summary The Pooled Money Investment Board, created by the Legislature in 1955, is comprised of Philip Angelides, State Treasurer, as chairman; Kathleen Connell, State Controller; and B. Timothy Gage, Director of Finance. The purpose of the Board is to design an effective cash management and investment program, using all monies flowing through the Treasurer's bank accounts and keeping all available funds invested consistent with the goals of safety, liquidity and yield. The law restricts the Treasurer to investments in the following categories: U.S. government securities, securities of federally-sponsored agencies, domestic corporate bonds, interest-bearing time deposits in California banks and savings and loan associations, prime-rated commercial paper, repurchase and reverse repurchase agreements, security loans, banker's acceptances, negotiable certificates of deposit and loans to various bond funds. Subsequent sections of this report deal individually with the demand account and investment programs for which the Board has oversight responsibilities, and which the Treasurer directly administers. During the 2000/01 fiscal year, program earnings totaled $2.676 billion. Approximately $873 million of this amount was credited to units of local government as a result of their deposits in our investment pool. This level of voluntary participation, which averaged $14.397 billion, reflects the confidence they have in our investment management capabilities. The magnitude of these investment earnings provide a significant reduction in the tax burden that otherwise would have been imposed on the citizens of California. v Pooled Money Investment Board Members 4 elik., i. i Chairman 4 , PHILIP ANGELIDES $' ' State Treasurer -, f,:iw'li‘'itti::::.t. y' 1 Member KATHLEEN CONNELL t' State Controller I Member B. TIMOTHY GAGE Director of Finance ii Table of Contents Page OVERVIEW POOLED MONEY INVESTMENT BOARD Pooled Money Investment Board Executive Summary Pooled Money Investment Board Members 11 The Year in Review Investment Activity FY 1992 through 2001 1 2000/01 Investment Market Conditions 2 Pooled Money Investment Account Comparison of Average Daily Portfolio and Earnings FY 1992 through 2001 3 POOLED MONEY INVESTMENT ACCOUNT (PMIA) 4 The Year in Review 4 Demand Account Program 5 Rate Schedule for Banking Services 6 Average Daily Balance in Demand Bank Accounts 7 Investment Program 8 Schedule of Security Purchases - by Term 9 Analysis of the PMIA Portfolio 9 Dollar Amount of Interest-Bearing Time Deposits 10 PMIA Summary of Investments and Earnings 11 Financial Community Coverage 13 SURPLUS MONEY INVESTMENT FUND (SMIF) 14 The Year in Review 15 Participation 15 Earnings for 2000/01 14 Resources of the SMIF 16 LOCAL AGENCY INVESTMENT FUND (LAIF) 17 The Year in Review 17 Participation 17 Earnings for 2000/01 17 Resources of the LAIF 18 Appendix A - PMIA Summary of Investments and Earnings, 1957 through 2001 19 Note To PMIA Summary of Investments and Earnings 20 Appendix B - Historical PMIA Yields 21-29 1 The Year In Review Average Daily Portfolio $43,840,420,719 Earnings $2,676,158,235 Effective Yield 6.10% bambini A i ityfa'the Rca! Vats Thing Jtn?30 ($Inlillicns) Fad Yew 1992 1923 1991 1995 19% 1997 1999 1999 21) 2091 apt $1W8 325 $2101 $277.4 $237.4 $209.3 $301.6 $237.3 $3536 $3102 T)i,wikn 4,133 6898 5,169 4'151 5,721 5,12) 7,108 5,n1 6447 7,'r:' p InvestnetrActilities 1 Fumd Vern T3rhg une30 0 ($IniIiims) $100,0— TRO $410a $1110 I I I I 1 I 1 I 1992 1993 1994 196 1996 1997 1993 1999 200 2101 I Source: State Treasurer's Office,Division of Investment 2 2000/01 Investment Market Conditions To indicate prevailing market conditions during the 2000/01 fiscal year, the following table shows monthly money market rates, as computed from daily closing bid prices. The information was obtained from Federal Reserve Bulletins published by the Board of Governors, Federal Reserve System, and The Bureau of Public Debt. Monthly Yield On iVIoney Securities (Yield in Percent PerAmum) Finance 3Month Company %Lhy 62*n h l Year 3Year Feartl Th rzswy Cal'»rrrtl Certificate Treasury Treasury Treasury Minh Finns Bills Raver ofDerrosits Bills Bills Issues July,2000.._ 6.54 5.96 6.54 6.67 6.01 6.80 628 August... 6.50 611 6.49 6.61 6.08 6.18 6.17 September-..._ .. 6.52 6.00 6.47 660 5.98 6.13 6.02 6.51 6.11 6.52 667 6.04 6.01 5.85 I�Ioveari ',,. 6.51 6.19 652 6.65 6.07 609 5.79 Decerri3er 6.40 5.83 6.33 645 5.70 5.60 5.26 January,M)1.... 5.98 5.21 551 5.62 5.00 4.81 4.77 February 5.49 4.86 519 5.26 4.69 4.68 471 Nlaruh 5.31 4.45 4.81 4.89 4.32 4.30 4.43 April 4.80 3.91 4.47 4.53 3.88 3.98 4.42 May 4.21 3.61 3.96 4.02 3.61 3.78 4.51 June. 3.97 3.48 3.69 3.74 3.44 3.58 4.35 2001'2001 Average 5.73 5.14 5.54 5.64 5.07 5.16 5.21 1999/2000Average 559 527 5.:: 5.92 5.42 5.40 6.20 lnciease/( rse) 0.14 -0.13 -0.34 -0.28 -0.35 -0.24 -0.99 Note:3 and 6 month Treasury Issues and 90 day Commercial Paper are quoted on a discount basis. 3 Pooled Money Investment Account Comparison of Earnings and Average Daily Portfolio Fiscal Years Ending June 30, 1992 through 2001 / I Average Daily Portfolio ($ In Millions) ,g91 $45,000$40,000 J $35,000 -/ 29,345 $30,000 -/ 26802 44 13 3 $25,000 -/ 23,052 21 _6 21.456 $20,000 _ [....J $15,000 - ' $10,000 -� $5,000 -� 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 I I \ Earnings ($ In Millions) $3,000 - $2,500 J 1,999 $2,000 1 788 1,672 MT 29 $1,500 1,330 $1,000 $500 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: State Treasurer's Office,Division of Investment 4 Pooled Money Investment Account The Year In Review Resources $ 44,260.1 million per day on the average Demand Accounts $ 419.7 million per day on the average Portfolio $ 43,840.4 million per day on the average Earnings $ 2,424.9 million from security investments 251.2 million from bank time deposits - million from General Fund loans Earning Rate 6.10 percent average for all investments Dollar Value of Investment Transactions $ 310.2 billion Number of Investment Transactions 7,889 transactions Time Deposits 124 banks,credit unions and savings banks held PMIA money at year-end Source: State Treasurer's Office,Division of Investment Resources of the Pooled Money Investment Account averaged $44,260,140,719 per day during the fiscal year although the daily figures fluctuated widely with receipts and disbursements. High point for the year occurred June 27, 2001, when the total reached $57,242,259,235. Resources for the account were lowest on December 8, 2000, when balances totaled $38,807,371,213. A breakdown of an average day's resources during the fiscal year shows the following: $419.7 million in non-interest-bearing bank accounts; $39.522 billion in securities and General Fund Loans; and $4.318 billion in interest-bearing time deposits. On the closing day of the fiscal year, the following resources were on hand in the Pooled Money Investment Account: Demand bank account $ 735,639,664 Time bank account 4,865,145,000 Securities 49,627,613,483 Total Resources $55,228,398,147 5 Demand Account Program Investments of the PMIA are made from monies flowing through the Treasurer's demand (non-interest-bearing) bank accounts maintained in the seven banks that serve as State depositories. Currently, the seven depository banks are: Bank of America, California Bank & Trust, Union Bank of California, United California Bank, U.S. Bank, Wells Fargo Bank and Westamerica Bank. A small portion of these funds must remain in the accounts as compensating balances which consist of (1) a balance for uncollected funds and (2) a balance for banking services. Uncollected funds represent the total dollar amount of checks deposited by the State for which the banks give immediate credit, but for which they do not receive good funds until these checks are presented to the banks on which they are drawn. The Pooled Money Investment Board allows the banks an average balance for uncollected funds equivalent to 1.3 calendar days on all checks deposited other than cashier's checks and checks under the presort of deposit system. Under the presort of deposit system, the major revenue collecting agencies sort their checks by the five State depository banks and then deposit them directly in the banks on which they are drawn, thus avoiding the need for providing bank balances for uncollected funds. The remaining checks are deposited under a contract whereby the depository bank receives bank balances equivalent to 1.345 calendar days for the amount of such deposits. The balances allowed for banking services represent compensation for handling 393 thousand deposits, 56.2 million checks deposited, 334 thousand dishonored checks, $694.9 million in currency deposited, $11.4 million in coin deposited, 112.1 million warrants and 29.7 thousand checks paid. All amounts in excess of these compensating balances are promptly invested by the Treasurer. Intensive and expert analysis of receipts and disbursement data is used daily to estimate the State's rapidly shifting cash position in order to determine exactly how much money is available for investment. This results in maximum earnings consistent with prudent management. Compensating balances are determined by a formula, which accounts for the estimated volume of each service item as well as its unit cost. The rate schedule for the compensating balance formula is determined through annual negotiations with the State's depository banks and the cost for any particular service may be raised or lowered as conditions warrant. Adjustments for the difference between actual and estimated work- 6 load for any fiscal year are made in the following fiscal year. The PMIB made no changes in the rate schedule for banking services for the 2000/01 fiscal year. In addition to the rates shown below, the Board agreed to include the costs of account reconciliation and electronic funds transfer services within the compensating balance formula starting in the 1991/92 fiscal year. The costs for these two services are paid (with balances) on a lagged, actual basis when billed by each bank. The Board approved the following rate schedule for the 2000/01 fiscal year: Rate Schedule For Banking Services 2000/01 Fiscal Year Encoded Checks Deposited "On Us" $ 0.04 "Other 0.05 • Non-Encoded Checks Deposited. 0.09 Warrants Paid 0.01 Checks Paid. 0.12 Dishonored Checks 2.75 Deposits 1.20 Split Bags Deposits 0.55 Coin Deposited 11.00 per thousand Currency Deposited 1.05 per thousand Account Maintenance 15.00 per month Daily Statements 6.00 per statement Source: State Treasurer's Office,Division of Cash Management 7 Average Daily Balance In Demand Bank Accounts 2000/01 ($ In Thousands) Bank Balance Bank Balance Less Net Bank Balance Actual Required for Required for Delayed Deposit Prescribed by Average Daily Month Banking Services Uncollected Funds Credit PMIB Bank Balance Jul-00 $178,457 $173,774 $3,912 $348,318 $340,056 Aug-00 175,858 179,760 5,585 350,033 356,490 Sep-00 159,223 238,287 7,148 390,362 407,957 Oct-00 163,084 156.970 5,882 314,173 406,499 Nov-00 172,538 194,217 7,292 359,463 360,566 Dec-00 174,833 231,566 8,913 397,486 351,634 Jan-01 161,287 252,589 11,365 402,511 494,691 Feb-01 208,955 268,696 62 477,589 344,507 Mar-01 197,057 167,809 7,338 357,528 346,283 Apr-01 231,905 450,721 11,591 671,034 701,610 May-01 271,806 278,336 7,179 542,963 443,131 Jun-01 268,013 257,843 8,327 517,530 484,840 Weighted $196,698 $236,768 $7.090 $426.377 $419,720 Average Average Balance In Demand Bank Accounts 2000/01 ($In Thousands) $750,000 $650,000 ;1C $550,000 ' ::. , " _ . , . $250,000 t �t �i 'fie pi Cat ye Je0 Jsr° qcc" C�\\ tie; )J�c =,u \eF c� ie eA sc .p4 4. P �Q O Zo Q¢ ) gc - U' Prescribed by PN --6--Average Daily I Source: State Treasurer's Office,Division of Cash Management 8 Investment Program Although the Pooled Money Investment Board designates how much shall be invested in interest-bearing time accounts in California banks and savings and loan associations, and in securities, it is the responsibility of the State Treasurer to administer the investment program on a day-to-day basis in line with overall Board policy. This entails a daily determination of amounts available for investment, or the need for liquidating securities to meet estimated warrant redemption requirements, while maintaining the approved compensating balance position. This means that the State Treasurer must continually adjust the estimates for receipts and disbursements to reflect current available information. For the 2000/01 fiscal year, investments in time deposits ranged from $3,668,440,000 to $4,865,145,000 and averaged $4,317,935,890. There were 1,639 transactions totaling $19,680,865,000 during the year. Commercial banks, savings banks and credit unions receiving these State deposits must secure them with approved securities having a market value of at least 110 percent of the deposits or with approved promissory notes secured by mortgages or deeds of trust having a market value of at least 150 percent of the deposits. The same collateral requirements also apply to the State's demand accounts. At the end of fiscal year 2000/01, interest-bearing time deposits were held by 93 commercial banks, 17 credit unions and 14 savings banks throughout California. For the fiscal year, PMIA holdings in time deposits had an average yield of 5.82 percent. The amount of money designated by the Board for investment in securities varies dramatically throughout the year. Such designations are made at least monthly, and again, the State Treasurer handles the actual investments, determining the issue and maturity of authorized securities to be bought or sold in accordance with cash needs and both current and projected market conditions. During fiscal year 2000/01, there were 3,225 security purchase transactions and 3,025 security sales or redemption transactions, with a total investment activity of$290.5 billion. Total earnings for the Pooled Money Investment Account in fiscal year 2000/01 were $2,676,158,235. These earnings were credited as follows: General Fund $822,696,302 Fish and Game Preservation Fund $ 305,456 Surplus Money Investment Fund $974,657,023 Local Agency Investment Fund $873,410,950 Public Employee's Retirement Fund $ 2,791,247 State Teacher's Retirement Fund $ 2,297,257 Earnings consisted of $2,424,943,624 from security investments at an average 6.10 percent yield and $251,214,611 from time deposits at an average 5.82 percent yield. The overall return on investment was 6.10 percent. The portfolio holdings of the Pooled Money Investment Account for the 2000/01 fiscal year are illustrated in the following table: 9 POOLED MONEY INVESTMENT ACCOUNT SCHEDULE OF SECURITY PURCHASES-BY TERM 2000/01 Fiscal Year (At Cost-$In Thousands) Under 90 Days- I-3 Over MONTH 10 Days 10-29 Days 30-89Ll ys 1 Year Years 3 Years TOTALS July,2000 $1,945,482 $1,496,463 $2,657,765 $649,672 $210,106 $0 $ 6,959,488 August 3,294,803 2,208,004 613,084 3,180,073 702,199 0 9,998,163 September 3,964,302 2,113,845 1,772,979 2,192,792 586,219 14,101 10,644,238 1 October 2,610,255 2,786,479 1,833,721 2,841,591 117,669 174,637 10,364,352 November 2,560,314 2,002,131 888,281 2,653,238 449,799 0 8,553,763 December 3,128,498 1,600,974 2,428,083 5,066,350 775,761 10,631 13,010,297 January,2001 4,398,410 2,463,208 959,618 6,597,579 825,739 170,740 15,415,294 February 772,762 4,968,691 932,539 772,762 806,774 0 8,253,528 March 3,611,201 6,789,775 782,144 788,689 91,603 0 12,063,412 April 1,448,881 4,358,536 4,387,442 6,779,159 833,646 9,097 17,816,761 May 1,283,214 2,526,635 3,657,691 1,692,440 350,645 0 9,510,625 June 2 659,639 3,324,717 3,968958 7061151 1,716,209 60,935 1$,792.609 TOTAL $31,677,761 $36,639.458 $24,882,305 $40,276A96 $7.466,369 $440,141 $141,382,530 PERCENT 22.40% 25.92% 17.60% 28.49% 5.28% 0.31% 100.00% Source: State Treasurer's Office,Division of Investments POOLED MONEY INVESTMENT ACCOUNT ANALYSIS OF PORTFOLIO 2000/01 Fiscal Year Effective Average Percent Average Percent Percentage Portfolio Life Of Daily Of Earnings Yield on 6/30/01 Portfolio Type Of Security Portfolio Portfolio For Year For Year (In Days) On 6130101 U.S.Treasury Blt4Strips $2,646,954,548 6.04 $159,144,419 6.01 129 3.33 U.S.Treasury Bonds&Notes 3,056,497,078 6.97 176,273,771 5,77 493 6.43 Federal Agency Cpn Securities 3,282,193,454 7.49 203,889,095 6.21 515 8.44 Federal Agency Discount Notes 9,011,738,061 20.56 573,877,152 6.37 176 18.62 GNMA 1,166,433 0.00 138,015 11.83 4,381 0.00 FHtMC 11,353,297 0.03 1,094,517 9.64 4,381 0.02 Negotiable CDs 8,184,759,498 18.67 502,011,011 6.13 132 18.05 Time Deposits 4,317,935,890 9.85 251,214,610 5.82 100 8.93 Bankers Acceptances 11,464,798 0.03 755,994 6.59 114 0.00 Cmmnercial Paper 9,273,506,834 21.15 548,616,241 5.92 38 26.57 Corporate Bonds 2,364,913,906 5.26 144,406,953 6.27 534 4.59 Repurchase Agreements 5,808,219 0.01 331,680 5.71 14 0.00 Reverse.Repurchase Agreements (857,535,461) -1.96 (49,840,879) 5.81 292 0.00 AB55Loam 2,589,664,164 5.91 164,245,656 6.34 226 5.01 General Forod Lows 0 040 0 049 _0 0.00 TOTAL PORTFOLIO $43,840,420,719 100% $2,676,158,235 6.10% 180 100% Source: State Treasurer's Office,Division of Investments 10 DOLLAR AMOUNT OF INTEREST - BEARING TIME DEPOSITS BY MONTH-END POOLED MONEY INVESTMENT ACCOUNT 2000-01 Fiscal Year MONTH TOTAL July $ 3,747,440,000 August 3,868,440,000 September 4,037,440,000 October 4,111,940,000 November 4,206,940,000 December 4,340,845,000 January 4,433,345,000 February 4,631,345,000 March 4,693,345,000 April 4,726,345,000 May 4,774,345,000 June 4,865,145,000 Dollar Amount Of Interest-Bearing $4,900,000 — Time Deposits By Month-End ($ In Thousands) $4,600,000 — $4,300,000 — $4,000,000 — - $3,700,000 1 1 1 1 4 1 1 1 1 1 1 J" J, �e met e< ve �.6 � C .6 t, C� i sr, ' te,¢ c ��0 ,cF a ooJ �J „so „ S` 1 �yQ o �o oes. • Source: State Treasurer's Office, Division of Investments li Su nnv y of Investments and Earnings Fiscal Years Ending June 30, 1992 through 2001 ($In Thousands) INVESTMENT INSECORYIIES INVFS1MFNTINTTMEDEPOSITS Avemge Daily Earnings Average Daily Earnings Fiscal Year Investment Earrings Rate(%) Fiscal Year Investment Fanzines Rate(%) 1991/92 20,322,527 1,259,654 8.01 1991/92 131,362 6,817 5.19 1992/93 21,499,605 1,013,606 6.20 1992/93 139,146 4,977 3.58 1993/94 24,322,849 1,0E8,915 4.71 1993/94 107,647 3,700 3.44 1994/95 26,468,520 1,465,018 4.39 1994/95 217,522 12,218 5.62 1995/96 25,362,783 1,448,002 5.53 1995/96 351,050 19,416 5.53 1996/97 27,674,553 1,550,599 5.71 1996/97 419,648 22,376 5.33 1997/98 28,034,192 1,601,603 5.60 1997/98 1,076,268 57,452 5.34 1998/99 31,409,593 1,688,570 5.34 1998/99 1,928,600 93,095 4.83 1999/00 32,177,870 1,845,503 5.71 1999/00 2,820,736 152,310 5.40 2000Y01 39,522,485 2,424,943 6.10 2000/01 4,317,936 251,215 5.82 ( Avenge Daily ImSnnits Avenge Dilly Investments In Securities In Time Deposits ($In%Mii s) (MI Millions) $45,000 — $5,000 $40,� $4.500 $4,000 Sa5,000 500 530,000 $3,000 $25,000 $2,000 $20,000 ' $1,500 $1,000 ' $1_5,000 ' $50D $10000 1 1 1 1 I 1 1 1 $D ' I 1- 1 I 1 1 I 1 a �4444I t.e 44 , , e /9 e /9 ee /9` e $ /e e / / , /9, •41 ♦ , J / Source: State Treasurer's Office,Division of Investments 12 Swam y of Investments and Earnings Fiscal Years Ending June 30, 1992 through 2001 ($In Thousands) LOAD TO THE GENERAL FUND TOTAL INVESTMENTS Average Daily Earnings Avenge Daily Earnings Fiscal Year Investment Earnings Rate(%) Fiscal Year Investment Earnings Rate(%) 1991/92 1,002,544 63,005 6.28 1991/92 21,456,433 1,329,476 6.20 1992/93 1,412,792 66,543 4.71 1992/93 23,051,543 1,085,126 4.71 1993/94 1,002,582 43,045 4.29 1993/94 25,433,078 1,115,660 4.39 1994/95 116,081 5,338 4.60 1994/95 26,802,123 1,482,574 5.53 1995/96 909,353 51,602 5.67 1995/96 26,623,196 1,519,020 5.71 . 1996/97 169,868 9,468 5.57 1996/97 28,264,069 1,582,443 5.60 1997/98 234,052 13,327 5.69 1997/98 29,344,512 1,672,382 5.70 1998/99 112,895 6,099 5.40 1998/99 33,451,088 1,787,764 5.34 1999/00 30,428 1,670 5.49 1999/00 35,029,034 1,999,483 5.71 2000/01 - - - 2000/01 43,840,421 2,676,158 6.10 i • Loans To the General Ibd Average Deily Total Investments ($Inlveliims) ($In Mlfims) $1,600 $1,430 $45,000 $1,200 $40,000 — $1,000 $35000 - $800 $30.000 $400 $20,000 $209 $15,000 $0 ' I I I I 1 I I $10,000 1 I 1 I I I I I ,gq�Pti`qc) `ggsPs,$sP`,gggPb,ggbP ,gg.,P%,ggg\�`ggg\0 tipc' `gg`Ph`ggryP�`gg�Pt`ggpPq�ggaP ,,p `4,P6`gp `? ryst l Sauce: State Treasure's Office,Division of Invesinrnts. 13 Financial Community Coverage The following firms conducted investment transactions with the StateTreasurer's Office during the 2000-01 Fiscal Year. A.G.Edwards and Sons,Inc. Fahnestock and Company Operating Engineers Federal Credit Union American Express Credit Corp Farmers&Merchants Bank of Central California Pacific Crest Bank American River Bank Federal National Mortgage Association Pacific State Bank Antelope Valley Bank First Bank and Trust Pacific Union Bank Asiana Bank First Bank Beverly Hills Pacific Western National Bank Associates Corp North America First Bank San Luis Obispo Paribus Corporation Banc of America Securities First Fidelity Investment and Loan Peninsula Bank of Commerce Banc One Capital Markets,Inc. First United Bank PFF Bank and Trust Bank of Canton of California FNB Central California Plumas Bank Bank of Granada Hills Ford Motor Credit Corp Preferred Bank Bank of Montreal Fuji Securities Inc Provident Central Credit Union Bank of Nova Scotia Fullerton Community Bank Prudential Securities Bank of Petaluma Garvin GuyButler Pryor,McClendon,Counts and Company Bank of Sacramento General Bank Quaker City Bank Bank of Santa Clara General Electric Capital Corp Redwood Credit Union Bank of the Sierra General Motors Acceptance Corp Redwood Securities Group,Inc. Bank of the West Golden Gate Bank River City Bank Bank of Visalia Golden One Credit Union Sae Han Bank Bank United Securities Corp Goldman Sachs and Company SAFE Credit Union Bay Area Bank Grand National Bank Salomon Smith Barney Bay Bank Commerce Hacienda Bank San Jose National Bank Bear Stearns and Company Inc Hanmi Bank San Luis Trust Bank Bongo Springs Bank Hawthorne Savings Bank Santa Barbara Bank and Trust Broadway Federal Bank Heller Financial Company Santa Clara Federal Credit Union Business Bank California Heritage Bank of Commerce Santel Federal Credit Union California Center Bank Household Finance Corp Sanwa Bank California California ChoHung Bank HSBC Securities,Inc. Scripps Bank California Credit Union Imperial Bank Sears Roebuck Acceptance Corp California Federal Bank J.P.Morgan Chase Securities Securities America,Inc. ' California Pacific Bank La Jolla Bank SilverGate Bank CalState 9 Credit Union Lake Community Bank Societe Generale Camarillo Community Bank Lehman Brothers Holdings,Inc. South Bay Bank Canadian Imperial Bank of Commerce Loop Capital Markets South Western Credit Union Canyon National Bank Los Robles Bank Spear,Leeds and Kellogg Cathay Bank Malaga Bank State Bank of India(California) Central California Bank Manufacturers Bank Sunwest Bank Cerritos Valley Bank Marathon National Bank Tehama Bank Chapman Company McDonald and Company TransPacific Bank China Trust Bank(USA) Mechanics Bank Travis Credit Union CitiGroup Securities Mellon First Business Bank Tri Counties Bank Citizens Business Bank Mercantile National Bank Trust Bank City National Bank Merchants National Bank U.S.Bank Coast Commercial Bank Merit Capital Associates,Inc. Union Bank of California CommerzBank Meriwest Credit Union Union Safe Deposit Bank Community Bank Merrill Lynch Capital Markets United Commercial Bank Community Bank of Central California Mesirow Financial,Inc. United Security Bank Community Federal Credit Union Metro Commerce Bank US Bancorp Piper Jaffray Constitution Capital Corp. Mid Peninsula Bank Valencia Bank and Trust County Bank Mid State Bank Valley Independent Bank Courts&Records Federal Credit Union Millennium Bank Verdugo Banking Company Credit Agricole Indosuez Mission Community Bank Vining Sparks CS/First Boston Corp Mission Federal Credit Union Warburg Dillon Read Cupertino National Bank Monterey Bay Bank Washington Mutual Bank,FA Delta National Bank Morgan Keegan and Company Wells Fargo and Company Deutsche Bank Morgan Stanley,Dean Witter&Company WesCom Credit Union Donaldson,Lufkin and Jenrette Inc National Bank of the Redwoods WestAmerica Bank East West Federal Bank Neighborhood National Bank Western Federal Credit Union Eastern International Bank North Island Federal Credit Union Western State Bank EBTEL Federal Credit Union North State National Bank Williams Capital Group El Dorado Savings Bank North Valley Bank Wilshire State Bank Eldorado Bank Oak Valley Community Bank Xerox Federal Credit Union EuroBrokers Inc Oceanic Bank EverTrust Bank Omni Bank 14 Surplus Money Investment Fund The Surplus Money Investment Fund consists of the available cash of all special funds which do not have investment authority of their own; and all or a portion of the '7 available cash of special funds having investment authority of their own, but which have elected to be included in the program. Cash balances in excess of needs in any of these participating funds are invested by the State Treasurer. The Pooled Money Investment Board is responsible for determining whether any cash balances of the participating funds are in excess of current needs and available for investment, or whether it is necessary to liquidate previous investments to meet current requirements. This determination is operationally performed by the State Controller's Office by means of a continuing review of the cash balances of the participating funds. As a result of these determinations, the State Controller prepares a document for the Pooled Money Investment Board's approval which authorizes the State Controller to increase or decrease the contribution balances of the applicable funds. All of the resources of the Surplus Money Investment Fund are invested through the Pooled Money Investment Account. Prior to the 1967/68 fiscal year, the Surplus Money Investment Fund was a separate investment program. In 1967, legislation was enacted (Chapter 505, Statutes 1967) which provided that money in the Surplus Money Investment Fund shall be invested through the Pooled Money Investment Account. This legislation further provided that the Surplus Money Investment Fund would share in the interest earnings of the Pooled Money Investment Account based on the ratio that the dollar-day contributions of the Surplus Money Investment Fund bear to the dollar-day investments of the Pooled Money Investment Account. This legislation increased the potential investment earnings for both programs, since their high and low resource periods tend to complement each other. Consequently, under normal market conditions, more long-term, higher yielding securities may be purchased. Earnings for 2000/01 Gross earnings totaled $974,657,023 for the 2000/01 fiscal year. This represents It an earning rate 6.12 percent for this investment program. SMIF earnings are computed on a dollar-day basis to guarantee equitable distribution among all member funds. An apportionment of the earnings is made by the Controller,twice yearly as of December 31 and June 30. 15 The Year in Review Resources $ 15.936 billion per day on average Earnings $ 974.7 million '4 Earning Rate 6.12 percent Source:State Treasurer's Office,Division of Cash Management Participation • There were over one thousand special funds and accounts participating in the Surplus Money Investment Fund as of the last day of the fiscal year, June 30, 2001. Their combined deposits totaled$21,588,923,000. • Large contributors as of June 30, 2001 were the: Department of Water Resources Electric Power Fund, $4,239,623,000; State Highway Fund, $1,192,124,000; California Housing Finance Fund, $916,729,000; School Facilities Fund 1998, $864,422,000; Public Buildings Construction Fund, $722,788,000; Unemployment Compensation Disability Fund, $544,085,000; California Infrastructure & Economic Development Bank Fund, $475,092,000; State Lottery Fund, $417,499,000; Special Deposit Fund, $413,947,000. 16 Monthly deposit balances are shown in the following table: RESOURCES OF THE SURPLUS MONEY INVESTMENT FUND 2000/01 FISCAL YEAR (Month-End Balances) MONTH TOTAL July 2000 $14,401,665,000 August 16,795,506,000 September 15,507,073,000 October 15,642,236,000 November 16,838,333,000 December 15,855,465,000 January 2001 16,845,845,000 February 16,053,375,000 March 15,828,412,000 April 16,229,270,000 May 17,728,265,000 June 21,588,923,000 Resources of the Surplus Money Investment Fund - 2000/01 Fiscal Year(Month-End Balances) $21,500,000 — ($Jnshousands) $19,000,000 — $16,500,000 — $14,000,000 1 1 1 4 1 1 1 1 1 1 i ye4 0 o O` 4c Source: State Controller's Office, Report of Cash Assets of All Funds in The State Treasury 17 Local Agency Investment Fund The Local Agency Investment Fund was established by Chapter 730, Statutes of 1976. This fund enables local governmental agencies or trustees to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each participating agency determines the length of time its money will be on deposit with the State Treasurer with the exception of bond proceeds, which must remain for a minimum of 30 days. At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein. Prior to the distribution, the State's reasonable costs of administering this program are deducted from the earnings. Earnings for 2000/01 Gross earnings for fiscal year 2000/01 totaled $873,410,950. This represented a 6.07 percent yield for this investment program. Participation As of June 30, 2001, there were 2,928 participants in the Local Agency Investment Fund consisting of 54 counties, 468 cities, 1,896 special districts, 286 trustees and 224 bond accounts. Deposits in the fund averaged $14.397 billion for the year. The Year in Review Resources $ 14.397 billion per clay on average Earnings $ 873.4 million Earning Rate 6.07 percent Participation 2,928 Agencies or accounts at year-end. Source:State Treasurer's Office,Division of Investments(LAID) 18 The following table shows monthly resources of the Local Agency Investment Fund during the 2000/01 fiscal year. RESOURCES OF THE LOCAL AGENCY INVESTMENT FUND 2000/01 FISCAL YEAR (Month-End Balances) MONTH TOTAL July $12,428,775,233 August - 12,314,582,632 September 12,263,501,615 October 12,627,775,581 November 12,638,223,548 December 13,703,045,852 January 14,834,148,718 February 15,506,766,793 March 16,006,134,697 April 17,504,408,043 May 17,785,660,588 June 17,705,113,712 Resources of the Local Agency Investment Fund 2000/01 Fiscal Year (Month-End Balances) ($ In Thousands) $18,000,000 $16,000,000 • $14,000,000 $12,000,000 S , J$Je`y¢Q�¢F,pe4 o`ee� ,¢ee` Oecioe` 'QGo, 4¢�<J�<j 9�c'c PQi �oj s I` +o Source:State Treasurer's Office,Division of Investments(LAIF) 19 Appendix A POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENTS AND EARNINGS ($ In Thousands) Annual Average Earnings Average Earning Rate Investment Rate (Percent) Fiscal Year Portfolio Earnings (Percent) 5 Years 10 Years 15 years . 1957-58 $ 594,306 $ 16,421 2.76 ' 1958-59 544,868 15,762 2.89 S< 1959-60 614,835 21,045 3.42 1960-61 736,204 28,139 3.82 3.23 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 1965-66 1,083,347 47,761 4.41 3.68 3.48 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 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 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 1974-75 2,749,431 238,298 8.67 6.84 6.16 5.29 1975-76 3,209,143 204,303 6.37 6.89 6.36 5.46 1976-77 4,460,487 261,657 5.87 7.08 6.45 5.65 1977-78 6,843,940 458,625 6.70 7.31 6.61 5.87 1978-79 8,123,266 692,417 8.52 7.22 6.86 6.20 1979-80 8,285,941 873,469 10.54 7.60 7.22 6.64 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 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 10.89 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 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 1 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 t 1993-94 25,433,078 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 35,029,034 1,999,483 5.71 5.61 5.69 6.57 2000-01 43,840,421 2,676,158 6.10 5.69 5.50 6.38 Souece. The average investment portfolio,earnings and annual earnings rate were taken from the published Annual Report of the Pooled Money Investment Board for each fiscal year. Please see the following note. j 20 NOTE TO PMIA SUMMARY OF INVESTMENTS AND EARNINGS TABLE The Pooled Money Investment Board was established as an agency of State government by Chapter 1703, Statutes of 1955, and became operational in April 1956. The 1956-57 fiscal year was the first full year for the Pooled Money Investment Account (PMIA). In -74 1957-58, the Surplus Money Investment Fund (SMIF) and the Condemnation Deposits Fund (CDF) were placed under the administration of the PMIB. Separate investment portfolios were managed for these two funds for a number of years. SMIF operated this way until the 1967-68 fiscal year, when legislation allowed this fund to be invested as a part of the PMIA. The CDF continued as a separate investment portfolio until 1975, when it also was combined with the PMIA. In order to make data for the early years in the table comparable to the later years (1975-76 and after), the average daily investment and the annual earnings for both SMIF and CDF were combined with those for the PMIA. The earning rates for these early years were computed using these combined figures. 21 HISTORICAL PMIA YIELDS (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAW SMIF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-77 5.77 Feb-77 5.66 Mar-77 5.66 5.68 Apr-77 5.65 May-77 5.76 Jun-77 5.85 5.87 5.78 5.79 Jul-77 5.93 Aug-77 6.05 Sep-77 6.09 5.84 Oct-77 6.39 Nov-77 6.61 Dec-77 6.73 6.45 6.18 Jan-78 6.92 Feb-78 7.05 Mar-78 7.14 6.97 Apr-78 7.27 May-78 7.39 Jun-78 7.57 6.70 7.35 7.17 Jul-78 7.65 Aug-78 7.82 Sep-78 7.87 7.86 Oct-78 8.11 Nov-78 8.29 Dec-78 8.77 8.32 8.09 Jan-79 8.78 Feb-79 8.90 Mar-79 8.82 8.81 Apr-79 9.08 May-79 9.05 Jun-79 9.22 8.52 9.10 8.98 Jul-79 9.20 Aug-79 9.53 Sep-79 9.26 9.26 Oct-79 9.81 Nov-79 10.22 Dec-79, 10.22 10.06 9.66 22 HISTORICAL PMLA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LA1F SMWF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-80 10.98 Feb-80 11.25 Mar-80 11.49 11.11 Apr-80 11.48 May-80 12.02 Jun-80 11.80 10.54 11.54 11.38 Jul-80 10.21 Aug-80 9.87 Sep-80 9.95 10.01 Oct-80 10.06 Nov-80 10.43 Dec-80 10.96 10.47 10.21 Jan-81 10.99 Feb-81 11.69 Mar-81 11.13 11.23 Apr-81 11.48 May-81 12.18 Jun-81 11.44 10.78 11.68 11.69 Jul-81 12.35 Aug-81 12.84 Sep-81 12.06 12.40 Oct-81 12.40 Nov-81 11.89 Dec-81 11.48 11.91 12.19 Jan-82 11.68 ' Feb-82 12.04 Mar-82 11.84 11.82 Apr-82 11.77 May-82 12.27 Jun-82 11.99 12.07 11.99 11.93 Jul-82 12.24 Aug-82 11.91 Sep-82 11.15 11.74 Oct-82 11.11 Nov-82 10.70 Dec-82 10.40 10.71 11.26 23 HISTORICAL PNIIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAN SMMLF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-83 10.25 Feb-83 9.89 Mar-83 9.69 9.87 Apr-83 9.87 May-83 9.53 Jun-83 9.60 10.45 9.64 9.98 Jul-83 9.88 Aug-83 10.08 Sep-83 10.20 10.04 Oct-83 10.18 Nov-83 10.16 Dec-83 10.23 10.18 10.15 Jan-84 10.31 Feb-84 10.28 Mar-84 10.38 10.32 Apr-84 10.59 May-84 10.84 Jun-84 11.12 10.41 10.88 10.63 Jul-84 11.36 Aug-84 11.56 Sep-84 11.60 11.53 Oct-84 11.68 Nov-84 11.47 Dec-84 11.02 11.41 11.44 Jan-85 10.58 Feb-85 10.29 Mar-85 10.12 10.32 Apr-85 10.03 May-85 10.18 Jun-85 9.74 10.72 9.98 10.19 Jul-85 9.66 Aug-85 9.42 Sep-85 9.57 9.54 Oct-85 9.48 Nov-85 9.49 Dec-85 9.37 9.43 9.50 24 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAD' SMIF ;- DATE AVERAGE AVERAGE , C)UARTERLY SEMI-ANNUAL Jan-86 9.25 Feb-86 9.09 Mar-86 8.96 9.09 Apr-86 8.62 May-86 8.37 Jun-86 8.23 9.08 8.39 8.70 Jul-86 8.14 Aug-86 7.84 Sep-86 7.51 7.81 Oct-86 7.59 Nov-86 7.43 Dec-86 7.44 7.48 7.65 Jan-87 7.37 Feb-87 7.16 Mar-87 7.21 7.24 Apr-87 7.04 May-87 7.29 Jun-87 7.29 7.44 7.21 7.23 Jul-87 7.46 Aug-87 7.56 Sep-87 7.71 7.54 Oct-87 7.83 Nov-87 8.12 Dec-87 8.07 7.97 7.80 Jan-88 8.08 Feb-88 8.05 Mar-88 7.95 8.01 Apr-88 7.94 May-88 7.82 Jun-88 7.93 7.87 7.87 7.95 Jul-88 8.09 Aug-88 8.25 Sep-88 8.34 8.20 Oct-88 8.40 Nov-88 8.47 Dec-88 8.56 8.45 8.34 25 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAIF SMIF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-89 8.70 Feb-89 8.77 Mar-89 8.87 8.76 Apr-89 8.99 May-89 9.23 Jun-89 9.20 8.67 9.13 8.97 Jul-89 9.06 Aug-89 8.83 Sep-89 8.80 8.87 Oct-89 8.77 Nov-89 8.69 Dec-89 8.65 8.68 8.78 Jan-90 8.57 Feb-90 8.54 Mar-90 8.51 8.52 Apr-90 8.50 May-90 8.53 Jun-90 8.54 8.66 8.50 8.52 Jul-90 8.52 Aug-90 8.38 Sep-90 8.33 8.39 Oct-90 8.32 Nov-90 8.27 Dec-90 8.28 8.27 8.34 Jan-91 8.16 Feb-91 8.00 Mar-91 7.78 7.97 Apr-91 7.67 May-91 7.37 Jun-91 7.17 8.01 7.38 7.67 Jul-91 7.10 Aug-91 7.07 Sep-91 6.86 7.00 Oct-91 6.72 Nov-91 6.59 Dec-91 6.32 6.52 6.74 26 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAIF SMIF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-92 6.12 Feb-92 5.86 Mar-92 5.68 5.87 Apr-92 5.69 May-92 5.38 Jun-92 5.32 6.20 5.45 5.65 Jul-92 5.24 Aug-92 4.96 Sep-92 4.76 4.97 Oct-92 4.73 Nov-92 4.66 Dec-92 4.65 4.67 4.82 Jan-93 4.68 Feb-93 4.65 Mar-93 4.62 4.64 Apr-93 4.61 May-93 4.43 Jun-93 4.55 4.71 4.51 4.61 Jul-93 4.44 Aug-93 4.47 Sep-93 4.43 4.44 Oct-93 4.38 Nov-93 4.37 Dec-93 4.38 4.36 4.39 Jan-94 4.36 Feb-94 4.18 Mar-94 4.25 4.25 `r Apr-94 4.33 May-94 4.43 Jun-94 4.62 4.39 4.45 4.36 Jul-94 4.82 Aug-94 4.99 Sep-94 5.11 4.96 Oct-94 5.24 Nov-94 5.38 Dec-94 5.53 5.37 5.15 27 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAD" SMF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jan-95 5.61 Feb-95 5.78 Mar-95 5.93 5.76 Apr-95 5.96 May-95 6.01 Jun-95 6.00 5.53 5.98 5.87 Jul-95 5.97 Aug-95 5.91 Sep-95 5.83 5.89 Oct-95 5.78 Nov-95 5.81 Dec-95 5.75 5.76 5.83 Jan-96 5.70 Feb-96 5.64 Mar-96 5.56 5.62 Apr-96 5.54 May-96 5.50 Jun-96 5.55 5.71 5.52 5.56 Jul-96 5.59 Aug-96 5.57 Sep-96 5.60 5.57 Oct-96 5.60 Nov-96 5.60 Dec-96 5.57 5.58 5.57 Jan-97 5.58 Feb-97 5.58 Mar-97 5.58 5.56 Apr-97 5.61 May-97 5.63 Jun-97 5.67 5.59 5.63 5.59 Jul-97 5.68 Aug-97 5.69 Sep-97 5.71 5.68 Oct-97 5.71 Nov-97 5.72 Dec-97 5.74 5.71 5.69 28 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAIF SMEF' DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL, Jan-98 5.74 Feb-98 5.72 Mar-98 5.68 5.70 Apr-98 5.67 May-98 5.67 Jun-98 5.67 5.70 5.66 5.67 Jul-98 5.65 Aug-98 5.65 Sep-98 5.64 5.64 Oct-98 5.56 Nov-98 5.49 Dec-98 5.37 5.46 5.55 Jan-99 5.26 Feb-99 5.21 Mar-99 5.14 5.19 Apr-99 5.12 May-99 5.09 Jun-99 5.09 5.34 5.08 5.13 Jul-99 5.18 Aug-99 5.22 Sep-99 5.27 5.21 Oct-99 5.39 Nov-99 5.48 Dec-99 5.64 5.49 5.34 Jan-00 5.76 Feb-00 5.82 Mar-00 5.85 5.80 Apr-00 6.01 May-00 6.19 Jun-00 6.35 5.71 6.18 5.99 29 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ALLOCATION RATE MONTHLY ANNUAL LAW SMIF DATE AVERAGE AVERAGE QUARTERLY SEMI-ANNUAL Jul-00 6.44 Aug-00 6.50 Sep-00 6.50 6.47 Oct-00 6.52 Nov-00 6.54 Dec-00 6.53 6.52 6.49 Jan-01 6.37 Feb-01 6.17 Mar-01 5.98 6.16 Apr-01 5.76 May-01 5.33 Jun-01 4.96 6.10 5.32 5.73 The State Treasurer's Office complies with the Americans With Disabilities Act (ADA). If you need additional information or assistance, please contact the State Treasurer's Pooled Money Investment Board at(916)653-2917. STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO v E ° CIF C,- Pr, C-S=R, ern Local Agency Investment Fund F: tS, .CE DEP, R? MEN I PO Box 942809 Sacramento, CA 94209-0001 277 ;T ! 3 ' E :7 (916) 653-3001 January, 2002 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 01-15-2002 01-14-2002 QRD SYSTEM 170,726.59 Account Summary Total Deposit : 170,726.59 Beginning Balance : 18,336,116.34 Total Withdrawal : 0.00 Ending Balance : 18,506,842.93 161frk Cevrre— Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer 'FEU L OF THE TREASURER alienft SACRAMENTO ) ktwit LOCAL AGENCY INVESTMENT FUND PO BOX 942809 SACRAMENTO,CALIFORNIA 94209-0001 (916)653-3001 2002 ANNUAL INFORMATION UPDATE Please verify the following information and indicate any needed changes. Please return all original forms to LAIF no later than April 30th whether you have changes or not. LAIF Account Number: 65-33-015 Jan. 16,2002 PALM DESERT REDEVELOPMENT AGENCY ATTN: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Phone Number(s) Office: (760) 346-0611 Fax: (760) 776-6383 E Mail: Please Indicate Office Hours: AUTHORIZED PERSON(S) Please indicate additions,deletions or changes Name Title JOSE LUIS ESPINOZA FINANCE OPERATIONS MANAGER PAUL S.GIBSON DIRECTOR OF FINANCE/TREASURER THOMAS W.JEFFREY INVESTMENT MANAGER Page: 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer zOFFIdE OF THE TREASURER SACRAMENTO LAW Account Number: 65-33-015 BANKING INFORMATION Please indicate additions,deletions or changes UNION BANK OF CALIFORNIA UBC 217 1800 HARRISON STREET#1450 OAKLAND CA 94612-0000 (800) 798-6466 Ext: 0 Bank Acct Number: 2170000466 ABA Number: 122000496 Correspondent Bank: UBC UNION BANK OF CALIFORNIA Wire Instructions: Original Signatures of Two Persons Currently Authorized on LAIF Account Required. (Person Cannot Sign if being added) Authorized Signature Authorized Signature Print Name Print Name Title Title Page: 2 • DECEMBER 31 , 2001 QUARTERLY • ANSWER BOOK UPDATE REPLACEMENT PAGES 2, 4, 5, 12, 13, 14, 25, 27, 28, 37, 39, 40, 41 , 42, 47, 51 AND 52 Revised December 31,2001 • Additionally, the PMIA has Policies, Goals and Objectives for the portfolio to make certain that our goals of Safety,Liquidity and Yield are not jeopardized and that prudent management prevails. These policies are formulated by.investment staff and reviewed by both the PMIB and the LAIF Board on an annual basis. The State Treasurer's Office is audited by the Bureau of State Audits on an annual basis. The resulting opinion is included in the subsequent Pooled Money monthly report following its publication. The Bureau of State Audits also has a continuing audit process throughout the year. All investment and LAIF claims are audited on a daily basis by the State Controller's Office as well as an in-house audit process involving three separate divisions. It has been determined that the State of California cannot declare bankruptcy under Federal regulations,thereby allowing the Government Code Section 16429.3 to • stand. This Section states that "money placed with the state treasurer for deposit in the LAIF shall not be subject to either: (a) transfer or loan pursuant to Sections 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency." The LAIF has grown from 293 participants and $468 million in 1977 to 3,039 participants and$18.9 billion in 2001. State Treasurer's Office Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 . http://www.treasurer.ca.gov 2 Revised December 31,2001 • LOCAL AGENCY INVESTMENT FUND • Participation as of 12/31/01 3,039 Agencies 259 BONDS 54 COUNTIES 470 CITIES 340 TRUSTEES 9% 2% 15°I° 4(!ii-fitieZtilitz-4,1'71: hzt § Y 5 § 1,916 DISTRICTS 63% ❑54 COUNTIES ❑470 CITIES 1,916 DISTRICTS ❑340 TRUSTEES El 259 BONDS • 4 Revised December 31,2001 I PHILIP ANGELIDES - TREASURER • STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) December 31,2001 PERCENTAGE CHANGE FROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills $ 1,138,076 2.29 +0.57 Bonds 0 0 0 Notes 4,318,604 8.68 +0.64 Strips 0 0 0 Total Governments $ 5,456,680 10.97 +1.21 • Federal Agency Coupons $ 5,205,539 10.46 -0.17 Certificate of Deposits 5,240,047 10.53 -1.42 Bank Notes 1,115,009 2.24 -0.05 Bankers'Acceptances 17,877 0.03 +0.03 Repurchases 0 0 0 Federal Agency Discount Notes 10,929,044 21.96 -2.81 Time Deposits 5,078,795 10.20 +0.22 GNMAs 859 0 0 Commerical Paper 11,511,436 23.13 +3.17 FHLMC 8,621 0.02 0 Corporate Bonds 2,511,685 5.05 +0.17 Pooled Loans 2,989,262 6.01 +0.25 GF Loans 0 0 0 Reversed Repurchases -300,375 -0.60 +0.60 Total(All Types) $ 49,764,479 100.00 • Average Life of Portfolio as of December 31,2001 is 183 Days 5 Revised December 31,2001 State of California • Pooled Money Investment Account Market Valuation 12/31/01 " s s Carrying Cost Plus,' t : ; h ;, f i:1 a , y Description;'. ." Accrued'Interest,Purch. - Amortized Cost' ' 'Fair Value Accrued Interest:; United States Treasury. Bills $ 1,138,075,722.39 $ 1,142,970,729.26 $ 1,144,122,500.00 NA Notes $ 4,318,603,694.27 $ 4,317,850,975.48 $ 4,399,497,250.00 $ 64,881,050.50 Federal Agency. SBA $ 264,505,629.34 $ 264,505,629.34 $ 263,984,645.25 $ 1,576,449.67 MBS $ 698,079,442.09 $ 698,079,442.09 $ 701,163,186.71 $ 3,605,331.70 Bonds $ 4,242,953,871.84 $ 4,242,268,976.01 $ 4,286,070,714.80 $ 57,732,513.78 Floaters $ - $ - $ - $ - Discount Notes $ 10,929,043,768.36 $ 11,065,396,065.60 $ 11,096,090,229.32 NA FHLMC PC $ 8,620,709.82 $ 8,620,709.82 $ 9,348,175.20 $ 138,601.70 GNMA $ 858,833.75 $ 858,833.75 $ 989,249.21 $ 8,503.83 Bankers Acceptances $ 17,877,221.82 $ 17,881,030.68 $ 17,885,350.72 NA "rank Notes $ 1,115,008,664.83 $ 1,115,008,664.83 $ 1,118,500,239.55 $ 14,780,287.16 Ds $ 5,240,047,588.05 $ 5,240,047,588.05 $ 5,243,868,828.60 $ 20,793,138.88 Commercial Paper $ 11,511,436,136.36 $ 11,548,460,782.67 $ 11,554,908,922.17 NA Corporate: Floaters $ 1,246,949,677.63 $ 1,246,791,506.79 $ 1,240,379,079.10 $ 4,230,804.06 Bonds $ 1,264,735,633.69 $ 1,263,385,126.14 $ 1,284,445,955.88 $ 19,936,017.20 Repurchase Agreements $ - $ - $ - NA Reverse Repurchase $ (300,375,000.00) $ (300,375,000.00) $ (300,375,000.00) $ (475,593.75) Time Deposits $ 5,078,795,000.00 $ 5,078,795,000.00 $ 5,078,795,000.00 NA AB 55&GF Loans $ 2,989,262,546.90 $ 2,989,262,546.90 $ 2,989,262,546.90 NA - TOTAL $ 49,764,479,141.14 $ 49,939,808,607.40 $ 50,128,936,873.41 $ 187,207,104.73 Fair Value Including Accrued Interest $ 50,316,143,978.14 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost (1.003787124). As an example: if an agency has an account balance of$20,000,000.00, then the agency would report its participation in the LAIF valued at$20,075,742.49 or$20,000,000.00 x 1.003787124. Revised December 31 2001 12 , m co co C � ;O 'o N N 0 0 - �'.O W - 49 O • cm C O. 0{. M M M o rdr to tor V! C et O 'A a N to e i, ". a a /A to M C q co cer '0 W >, ♦. >, N N N ,... Om C 1- ' N N M 19 tl► 0. 0 ' 0 0 00 10 00 N �.- N N co a 0 co z N= ' �' w a a a a r W 03 ,.,OS � N CCD N - n e r � Q 0 N N, a S W va W 0 `~ M V COW CD Mm to ''0. :0'"0 - - COW C CrD' t, ,�. 00 a ,^ O ^,:: Nt CA tla va W CO O '0 . Z •— •� O tO0 a r C4 C CO N C O :6 m C Li C - �';-, < N W CO C ,'r;; a w va va a w w va a A, ' O Nb ON 'CO N I- co ; .g •O .0(.70, N CD ID - e- Na O : a n v ', 03 A O "a N W N CO P e C Y C J e-a~ O' N b to C Q .,a jn. w M/ W fA d► W j y g. NONW.0W e ._ ` y - a r '00: N h N V C A .e- O' r ca a+ 10 w 1.V .10. O)i a a a a a a a Co 0) C 0 . 'i0+ '0 d 'O Yg ., ,, •. L COW r (N0 COW CO0�D a 3 C +'' ) C5 2.'O _a0_...'O — - 00 a N d - N iig9 p d C d Q v,. Apr N ? N 0 Co)O Q ` 7 N CO 0) CNI s.. a. et N. )o C 0 C 0+ • ''.' O N Q �' 3 0 ft re re v m m O ): '� N iLi. p .., r�v U Z ww + U a. F, F r a m v 8U '9 a ZO ZO ZO ZO 13 Revised December 31,2001 r. N 0) CO 0 CO CO U) N CO U) CO N- Q N CO N- CO N U) c ) O c0 00 N CO O M 0) N M 0) CO U) N h U) N N O cn ui Ui 0 v v v ri ri ri • 0 La O O Or A 4 S S' Cn C1i N C1i tO Ui CO CO CO co cO c0 (O (O CO ct S co� O N a 000 N I N Ft O) U) co0 a)- N N — r O O r N N CId' (D ^^y, _ .. 0Ui Cn 0 Ui co Ui co Ui co co W rc g,. 00 N 0 0 N CO r N N O) n N NI- (3) tt N CO r` N- N U) co M U) O N o t` r CO. CO CO (0 CO CO CO 17 d' CO A, 'r. U) Ui co Ui Cri 0 Ui Ui LOU) Ui U) W •pi* 4- co U) 0 N O.t r- S I-- 0 O O U) : CO COSO N CD'ISC) U7 U) U) CO CO CO CO C) t` r` N 1--- ea r Ui co Ui Ui Ui Ui Ui Ui 0 Ui Cri 0 I� ,.0) 00) M C) C00 O O�}t Ono COO O O 0)) n 1 T 1 ay (O co U) U) U) CA cn U) CO CO U) CO I� r CO Ui Ui Ui cn 6 Ui ui Ui Ui Ui Ui • 4 tri N 0 co CD N M t O v • -� CO N 0) O) O 0) 0) O) CO r- CO f- Am) r:,, to Ui Cri Ui (D Ui Ui LOU) Ui Ui Ui o a y an, N `4? M N N O O N COO N , M N 2 a CO CO 8 8 N '? U) r 'V 4 4 m' tF 'i 4 in Cn U) Cn C �y 0) co CNO 00 N '0 CO N- CI M 0 co et O) tom' If C Nr 'V Nt Nt V Nt N' N' Nt 111 ..CAI N CO O N CD U) CO O O O) r- .0)' N CO CO O) I-- N elU) CO CO U) CA r co CD CO CO CON O) N r, (0 CO ;+r' CO U) Cn U) U) O U) vi N U) CO Nt 0) O N 0) 0) ' CO �u,� CD 0 1- to r` co O) r- U) , 0) r kr r O N CO CO O O CO 1` in co r 0 Co h r-: r-: n CO (O CO CO ` ` 1 , .- : > , ' `t, a w ,� , + Qi ;,! -� w /W W • � L _ , :w m al 2 ,a tizI � a ° >° m ' a } Z # , 0: a. 25 Revised December 31,2001 • SOURCE OF FUNDS Pooled Money Investment Account Average Quarterly Balance 12/31/01 $50.498 Billion *SMIF LAIF 41.89% 36.34% • .11111111110 p Other General Fund 0.31 /O 21.46% • *SMIF: Surplus Money Investment Fund 14 Revised December 31,2001 0 LOCAL AGENCY INVESTMENT FUND QUARTERLY APPORTIONMENT RATES , da rk, '� {##EMBER ECK MBR] . »rs \. > y:9 7 568 578 584 64 ' 9 8\\ 6.97 ! 7.35 j 7.86 8.32 \\ 9 9 8.81 910 9.26 j 10.06 9 0 41 11.11 11 10.01 1 10.47 -;1981 %\ 11.23 11 1240 11 \ 2 11 11 11 10.71 m»d, 9.87 9.64 10.04 1018 / 9 4, 10.32 10.88 11 ( 11/1 985 1032 ! 9.98 954 - 943 96,1 909 839 781 748 97 % 724 ' 721 754 797 e 8 •) 8.01 i 7.87 I 8.20 8.45 /9.89: 87 9.13 887 86 f«» ` « 2'1.990 4 %g 8.50 8.39 8.27 }91 797 7.38 700 } 652 ' 92' 587 545 49 46 1993, 1 4.64 4.51 4.44 j 4.36 : 111994 ) 4.25 4.45 4.96 5.37 9 Al 57 i% im iA t 196 j ig 5.52 55 iA 9 7 556 ! 563 5.68 571 %}9 8 1! 5.70 ! 5.66 5.64 5.46 9 9 ) 519 5.08 5.21 5.49 • 00 580 618 647 65 ▪ 001// 6.16 5.32 4.47 3.52 1 • 27 Revised December 31,20e LOCAL AGENCY INVESTMENT FUND • ADMINISTRATIVE EARNINGS (COST) ? 'QUARTER: ^ PERCENTAGE OF EQUIVALENT BASIS ` ENDING;, EARNINGS (COST) , POINT VALUE-', 03/31/93 0.25 1.2 06/30/93 0.26 1.2 09/30/93 0.23 1.0 12/31/93 0.27 1.2 03/30/94 0.26 1.1 06/30/94 0.25 1.1 09/30/94 0.27 1.4 12/31/94 0.26 1.4 03/31/95 0.26 1.5 06/30/95 0.19 1.2 09/30/95 0.23 1.3 12/31/95 0.25 1.5 03/31/96 0.23 1.3 06/30/96 0.19 1.1 09/30/96 0.22 1.2 12/31/96 0.26 1.5 03/31/97 0.30 1.7 • 06/30/97 0.16 0.9 09/30/97 0.23 1.3 12/31/97 0.24 1.4 03/31/98 0.24 1.4 06/30/98 0.16 0.9 09/30/98 0.08 0.5 12/31/98 0.24 1.3 03/31/99 0.23 1.2 06/30/99 0.32 1.6 09/30/99 0.20 1.1 12/31/99 0.22 1.2 03/31/00 0.22 1.3 06/30/00 0.28 1.7 09/30/00 0.20 1.3 12/31/00 0.20 1.3 03/31/01 0.18 1.1 06/30/01 0.21 1.1 09/30/01 0.21 0.9 12/31/01 0.31 1.1 • The law provides that reimbursements cannot exceed one-half of 1 percent of the EARNINGS of the fund per quarter. Listed above is the percentage of earnings (costs) per quarter. 28 Revised December 31,2001 • U WI -oC G N a N O O U a a a E coN0 C .- E coL to O 4) N Z C N > C m Q O 0 xi U aco Q N E o 2 E E E D z o :° aEimQ Et a m co Ec Ec D. To ac co y E c m C W W d E -c=F Ev ° E c E c - E a m c c 0 c m c m Ce U) co c p 7 O m N co o N� o N >:, c > O V N o 0.) V _ = J < y p coa)2Ua) E ° tEL E Z m O m a Uy c. o0 in v ° O 9' v Z co C O O O O) CO 63 rcA H IA ee O d d J U U O CO i i cc p CO Z Z Z 0 2 w W W W W O } Y Y r 0 O. I- z w • fr y z N Cl) lo w a It . a E �' Z .0 c p C E c.. 0 E co O a O c E L N E j c ° L co m o o U a) ; m E "0a CO• ca, a) d -om CO CD N L_ 45 N Z O N T N N 0 E 3 L 0 0 V F c - C V C U N �i "O m a w O. co m um 0 c E E CO D •co c m c cpi m o o E E w c a o m w ° co 3 p j o m E E E N ° `o m m E a m c ID a w as a 'x E -� ° m co EL w .j E c ° m E E 5N m v c •—y a E ° Lm a m E E m o E E 'c 'c m T V tea) E a 2 E_ _E c o E E co a) V V cn — ° = _ c - y m Z o - ° c ° Lm•. 'E m d o c O a .aci a E a y = N N o m .c d p d d CO y CO 3 3 a) Pe o t d t d .c t 12 • 0 0 0 ci V ¢ m 0 `� 0 m 2 m a N 5 ' N ri )O 37 Revised December 31,2001 • DISCLOSURE STATEMENT PORTFOLIO HOLDINGS: DERIVATIVES STRUCTURED NOTES, AND ASSET-BACKED SECURITIES The Treasury Investment Division has received a number of inquiries concerning our various portfolio holdings. Questions involving • structured notes, derivative products, and asset-backed securities are the most notable. We have found that the lack of acceptable definitions regarding these financial products has led to confusion and disagreement with our reported positions. In an effort to clarify the information provided in our monthly statements, we would like to share with you our understanding of these financial products, as defined by the U.S. General Accounting Office (GAO). In a recent survey of sales practices for these financial products the GAO provided definitions and examples of what they considered 1) plain vanilla OTC derivatives, 2) more complex OTC derivatives, 3) structured notes, and 4) asset-backed securities. Following are the GAO definitions, as well as the State of California Treasurer's holdings in each category as of December 31, 2001: • 39 Revised December 31,2001 • *1. Plain Vanilla OTC Derivative Products A derivative product is a financial instrument whose market value is derived from a reference rate, index, or value of an underlying asset. OTC derivatives are privately negotiated contracts and are not traded on organized exchanges. U.S. $ 0 As of: 12/31/01 *2. More Complex OTC Derivative Products Other more complex OTC derivatives have at least one of the following characteristics: a. Their prices tend to be difficult to obtain because they are often available from only a few dealers. b. The payments required by the derivative contract are calculated • on the basis of more than one interest rate, currency, asset, or other factor. c. The derivative contract has terms that are not determined until some future date. d. The contract involves a term that acts as a multiplier or increases the leverage of the rate(s) used to compute payments. e. The contract CAN entail potentially unlimited risk. U.S. $ 0 As of: 12/31/01 " The Pooled Money Investment Account Portfolio has not invested • in, nor will it invest in, Derivative Products as defined in General Accounting definitions #1 & #2. The GAO separation of derivatives, structured notes, and asset-backed securities is consistent with GASB 94-1. 40 Revised December 31,2001 3. Structured Notes • Structured notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. They are issued by corporations and by government-sponsored enterprises such as the Federal National Mortgage Association and the Federal Home than Bank System. U.S. $1,373.048 million As of: 12/31/01 4. Asset-Backed Securities Asset-backed securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMOs) or credit card receivables. • U.S. $972.065 million As of: 12/31/01 Securities Accountability 1) Vanilla Derivatives 0 2) Complex Derivatives 0 3) Structured Notes a. Callable Agency $ 100.000 million b. 3 month LIBOR Agency Floater $ 00.000 million c. 3 month LIBOR Corporate Floater $ 1,273.048 million d. 2 year CMT Corporate Floater $ 00.000 million e. 3 month T-Bill Agency Floater $ 00.000 million • f. 3 month T-Bill Corporate Floater $ 00.000 million 41 Revised December 31,2001 • 4) Asset-Backed a. Small Business Administration Pools $ 264.506 million b. Agency CMOs $ 698.079 million c. GNMA Pools $ 0.859 million d. FHLMC PC Pools $ 8.621 million Total Portfolio As of: 12/31/01 $49,764,479,141.14 Financial Products as a percent of portfolio: 4.712% . • 42 Revised December 31,2001 How to Participate in the Local Agency Investment Fund Before any deposits will be accepted, the local governmental agency must file with the State Treasurer a resolution and bank authorization form. The resolution will contain the following: 1. Name, address, and telephone number of agency. 2. A statement that the agency agrees to deposit or withdraw money in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein. 3. The names and titles of the officials authorized by this resolution to order the deposit or withdrawal of money in the Local Agency Investment Fund. 4. Resolution number and date passed by the governing body. 5. Signature(s) of the person(s) authorized to sign resolutions. 6. Seal of the agency if one is usually affixed to resolutions. • The bank authorization form will contain the following: 1. The names, titles and signature(s) of person(s) authorized to order the deposit or withdrawal of money in the Local Agency Investment Fund. 2. Banking information signed by two persons authorized on the resolution. Deposits or withdrawals must be in multiples of one thousand dollars ($1,000); minimum transaction size is five thousand dollars ($5,000) and a cap of $40 million per account. Bond proceeds also have a five thousand dollar ($5,000) minimum with no cap. Fifteen transactions are allowed per month for each regular account. Deposits and withdrawals count as separate transactions. The LAIF provides each participating agency the following reports: • Monthly Agency Statement of Activity • Monthly LAIF Newsletter providing Selected Investment Data of Pooled Portfolio, available on the STO home page at www.treasurer.ca.gov • Report of Monthly Activity of Pooled Portfolio, available on the STO home page at www.treasurer.ca.gov • Monthly Market Valuation of the Pooled Portfolio, available on the STO home page • at www.treasurer.ca.gov • Quarterly Maturity Schedule of the Pooled Portfolio, available on the STO home page at www.treasurer.ca.gov. 47 Revised December 31,2001 REPORTING DOCUMENTS EACH MONTH YOU CAN EXPECT: 1) Your agency's statement of activity,which includes your beginning and ending balances and all transactions and or adjustments which took place for the previous month. 2) A"Summary of Investment Data"for the previous month(included in the LAIF monthly newsletter). This analysis ofthe Pooled Portfolio indicates the monthly changes for the portfolio in comparison to the previous year,and LAW deposit information for the previous month. 3) The"Market Valuation"ofthe Pooled Portfolio indicating the estimated market value for the previous month. The Market Valuation is available on the STO home page at www.treasurer.ca.gov. 4) The"Pooled Money Investment Report,"a summarization of the pool including investment data, portfolio composition,investment transactions,time deposits and Pooled Money Board designations. Since information for this report is gathered from several sources,it represents investment activity for the month prior to the statements. The Monthly Report is available on the STO home page at www.treasurer.ca.gov. • EACH QUARTER YOU WILL RECEIVE/EXPECT(IN ADDITION TO THE MONTHLY INFORMATION): 1) A"Maturity Schedule"for the Pooled Portfolio. This indicates the par values maturing by date and type and the percentages represented by maturity range. The Maturity Schedule is available on the STO home page at www.treasurer.ca.gov. 2) LAW"Answer Book"updates. The initial book was sent to all participating agencies in January, 1997,with updates following on a quarterly basis. This book is specific to the LAW and includes information such as how and when the fund was created,how interest is calculated,the percentage of fees charged and specific questions relating to the Pool and how it functions. The"Answer Book"is available upon request. 3) The remittance advice(interest statement). This indicates the quarterly distribution of earnings to each agency account and includes agency's interest earnings,total dollar day,the apportionment rate and the earnings ratio. The remittance advices are available on the STO home page at www.treasurer.ca.gov or through the State Controller's Office website at http://laif sco.ca.gov/laif/. ANNUALLY YOU WILL RECEIVE: • 1) The"Pooled Money Investment Board Annual Report." This report is a year in review of the previous fiscal year and includes information about the Pooled Money Investment Account(PMIA), Surplus Money Investment Fund(SMIF),and the LAIF. 51 Revised December 31,2001 • 2) Annual Information Updates. This form is sent to participating agencies to assist LAIF staff in maintaining the most current information possible about your account with LAIR. We ask each agency to have authorized person/s review,sign and return this form to LAIF as quickly as possible,whether or not changes are needed. 3) LAW calendar which indicates the dates the State of California(LAW)is open for business. The LAW calendar is available on the STO home page at www.treasurer.ca.gov. 4) Conference information. Approximately three months prior to the LAW conference you will receive a"save-the-date"notice,two months prior to the conference you will receive your registration packet. The conference registration information will be available on the STO website two months prior to the conference. CO' ' p AVAILABLE TARGETED DATE OF DESCRIPTION OF ITEM t. _FREQUENCY . , . . VIA • "`RELEASE LAW Monthly Statement Monthly Mail 20th of month LAW Newsletter which includes the PMIA Summary of Investment Data Monthly Website 20th of month PMIA Market Valuation available on the STO home page Monthly Website 20th of month • PMIA Monthly Report Monthly Website 20th of month PMIA Maturity Schedule Quarterly Website 20th of month LAIF Answer Book Updates Quarterly Mail 20th of month Quarterly Remittance Advice(Interest STO Website/ Statement) Quarterly SCO Website* interest posting date PMIA Annual Report Annually Mail 20th of month LAW Annual Information Updates Annually Mail January LAIF Calendar Annually Mail/Website December Two months prior to LAW Conference Material Annually Mail/Website conference We hope you will find this listing useful for your reporting requirements. If you do not receive any of the above mentioned documents,please call LAW at(916)653-3001. STO website address: www.treasurer.ca.gov • *SCO website:http://laifsco.ca.gov/laif/ 52 Revised December 31,2001 any or raim uesen Parkview Office Complex Financial Statement for Fiscal Year 2001-2002 January-02 January-02 # % YTD YTD # Budget Actual Variance Variance Budget Actual Variance Variance ...... ....... . Revenues Rental $ 68,500 $ 62,932 $ (5,568) 91 87% $ 479,500 $ 465,237 $ (14,263) 97.03% Dividends/Interest $ 4,500 $ 1,500 $ (3,000) 33.34% - $ 30,000 $ 18,562 $ (11,438) 61.87% Total Revenues $ 73,000 $ 64,432 $ (8,568) 88.26% _. $ 509,500 $ 483,799 $ (25,701) 94.96°/c Expenses Professional-Accounting&Auditing $ 5,800 $ 6,800 $ (1,000) 117.24% -- $ 46,600 $ 47,600 $ (1,000) 102.15% Professional-Consultants $ 6,000 $ 12,239 $ (6,239) 203.99% $ 42,000 $ 45,681 $ (3,681) 108.76% Tenant Improvements $ 2,500 $ 15,507 $ (13,007) 620.29% $ 17,500 $ 15,507 $ 1,993 88.61% Repairs&Maintenance Building $ 8,000 $ 12,672 $ (4,672) 158.39% $ 56,000 $ 74,137 $ (18,137) 132.39% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% $ 16,100 $ - $ 16,100 0.00% Utilities-Water $ 250 $ 109 $ 141 43.48% • $ 1,750 $ 689 $ 1,061 39.38% Utilities-Gas/Electric $ 5,000 $ 4,525 $ 475 90.51% ' '. $ 56,000 $ 61,114 $ (5,114) 109.13% Utilities-Trash $ 700 $ 526 $ 174 75.14% $ 4,900 $ 1,578 $ 3,322 32.20% Telephone $ 150 $ 306 $ (156) 204.21% : $ 1,050 $ 1,125 $ (75) 107.14% Insurance $ 521 $ - $ 521 0.00% $ 3,645 $ - $ 3,645 0.00% Total Expenses $ 31,221 $ 52,685 $ (21,464) 168.75% { $ 245,545 $ 247,431 $ (1,886) 100.77% • iOnerat ugrncotrrc- $__, 41,779' $ 11,74 7${30,1r32) 28.12% :$ 2633,955 $ 236,38$ $ (27;587).' 89,55%, Equipment Replacement Reserve $ 10,000 $ 12,618 $ (2,618) 126.18% $ 70,000 $ 88,324 $ (18,324) 126.18% Fet[ncome - . $ 3079 >$ j,8 `J. ${32,%6soir 474,14 ':$19393$ 1 BFQ4.4 $ 4$1,911) ' 76.33% • 2002 investment Reporl2002 Invest Report City of Palm Desert _ - Parkview Office Complex Vacancy Rate Schedule by Suite January 2002 Suite Square No. Tenant Feet • 73-710 Fred Waring Drive-Two(2)Story Building 100 Hanover 2,560 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Vacant(Lease terminated with JMS as of October 2001) 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 City Storage 604 203 Vacant 480 205 Coachella Valley Economic Partnership 700 208 Vacant 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 217 Joe B.McMillan,.Esq. 775 220 CA.State Dept.of Agriculture 1,607 777 Vacant 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate-5,953/31,562= 18.86% 73-720 Fred Waring Drive-One Story Building 2002 Investment Report2002 Vacancy Report City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite January 2002 Suite Square No. Tenant Feet 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-5,953/51,191 11.63% Occupancy Rate-45,238/51,191 88.37% 2002 Investment Report2002 Vacancy Report City of Palm Desert Desert Willow Budget Vs Actual For the month of December 2001 Budgeted Actual Budgeted Actual December December S Percentage Year to Year to $ Percentage Revenue 2001 2001 Variance Variance Date Date Variance Variance Course&Ground $ 313,197 $ 269,809 $ (43,388) 86.15% $ 1,559,386 $ 1,460,165 S (99,221) 93 64% Carts $ 19,684 $ 21,560 $ 1,876 109.53% $ 121,371 $ 128,955 $ 7,584 106.25% Golf Shop $ 77,186 $ 69,547 $ (7,639) 90.10% $ 336,276 $ 284,756 $ (51,520) 84.68% Range $ 1,000 $ 6,196 $ 5,196 619.60% $ 5,150 $ 13,552 $ 8,402 263.15% Food&Beverage $ 98,526 $ 123,265 $ 24,739 125.11% $ 495,682 $ 531,732 $ 36,050 107.27% Interest Income $ 2,000 $ 391 $ (1,609) 19.55% $ 19,000 $ 4,316 $ (14,684) 2272% 1Total Revenues S 511.593 $ 490,768 S (20.825) 95.93% $ 2.536,865 $ 2,423.476 $ (113,389) 95.539 Payroll Proshop $ .8,410 $ 5,588 $ 2,822 66.44% $ 35,315 $ 23,202 $ 12,113 65.70% Can $ 18,970 $ 22,074 $ (3,104) 116.36% $ 102,818 $ 123.819 S (21,001) 120.43% Course&Ground $ 121,896 $ 107,630 $ 14,266 88.30% S 752,567 $ 728,028 $ 24539 96.74% Golf Operations $ 26,761 $ 22,198 $ 4,563 82.95% $ 138,982 $ 128,141 $ • 10,841 92.20% General&Administration $ 40,878 $ 26,411 $ 14,467 64.61% $ 240,278 $ 211,726 $ 28,552 88.12% Food&Beverage $ 60,684 $ 55,400 $ 5,284 91.29% $ 293,999 $ 289.982 $ 4.017 98 63% Total Payroll $ 277.599 S 239,301 $ 38.298 86.20% $ 1.563.959 S 1,504.898 $ 59,061 96.229 Other Expenditures Perimeter Landscaping $ - $ - $ - 0.00% $ - $ - $ - 0.00% Proshop $ 1,550 $ 4,723 $ (3,173) 304.71% $ 13,100 $ 18,206 $ (5.106) 138.98% Proshop-COGS $ 26,272 $ 32,031 $ (5,759) 121.92% $ 149,685 $ 173,200 $ (23,515) 115.71% Cart $ 13,600 $ 11,704 $ 1,896 86.06% $ 83200 $ 66,042 $ 17,158 79.38% Course&Ground-North Course $ 43,849 $ 45,157 $ (1,308) 102.98% $ 394,168 $ 459,397 $ (65,229) 116.55% Course&Ground-South Course $ 42,997 $ 63,465 $ (20,468) 147.60% $ 409,158 $ 357,613 $ 51,545 87.40% Course&Ground-Desert Pallet-N $ 1,450 $ 905 $ 545 62.41% $ 9,825 $ 5,335 $ 4,490 54.30% Course&Ground-Desert Pallet-S S 1440 $ 759 $ 681 52.71% $ 10,050 $ 4,808 $ 5,242 47.84% Golf Operations $ - $ 347 $ (347) 100 00% $ 10,500 $ 9,865 $ 635 93.95% General&Administration • $ 83,932 $ 52,513 $ 31,419 62.57% $ 424,993 $ 354,382 $ 70,611 83.39% Range $ 450 S (1,123) $ 1,573 -249.56% $ 11,450 $ 14.243 $ (2,793) 24.39% Food&Beverage $ 15,842 $ 24,448 $ (8,606) 154.32% $ 84,739 $ 116,699 $ (31,960) 37.72% Food&Beverage COGS $ 30,129 $ 39,939 $ (9,810) 132.56% $ 154,810 $ 175,863 $ (21.053) 13.60% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 150,000 $ 150,000 $ - 00.00% . Financing/Lease $ 4,250 $ 4,309 $ (59) 101.39% $ 17,019 $ 27,133 $ (10,114) 59.43% Total Other Expenditures S 290.761 S 304,177 $ (13,416) 104.61% $ 1,922.697 $ 1,932,786 S (10,089) 00.529 Desert Willow Golf Academy Desert Willow Golf Academy $ 15,100 $ 4,223 $ (10,877) 27.97% $ 82,250 $ 24,407 $ (57,843) 29.67% COGS-Merchandise $ (4.880) $ (3,164) $ 1,716 64.84% $ (26,839) $ (21.500) S 5.339 80 11% Other Expenditures $ (1,700) $ (1,183) $ 517 69.59% $ (12,015) $ (9,871) $ 2,144 82.16% Learning Center Income(Loss) $ 8,520 $ (124) $ (8.644) -1.46% $ 43.396 $ (6,964) $ (50,360) -16.05% Operating Income(Loss) $ (48,247) $ (52,834) $ (4,587) 109.51% $ (906,395) $ (1.021,172) S (114,777) 112.66% Equipment Reserve Replacement $ 71,955 $ 76,929 $ 4,974 106.91% $ 431,730 $ 460,565 $ 28.835 106.68% 1 Net Income(Loss) $ (120,202) $ (129,763) S • (9,561) 107.95% S (1.338,125) $ (1,481,737) S (143,612) 110.739 Snapshot of Golf Rounds Budgeted(mo Actual(mo) Variance Variance% Budgeted(vtd) Actual(vtd) Variance Variance Resident 1,145 1.554 409 . 136% 5,783 6,967 1,184 120% Non Resident 2,845 2.676 (169) 94% IS 440 17,757 (683) 96% Other - 60 60 100% - 455 455 100% Complimentary 130 350 220 269% 799 2.457 1,658 308% Total 4,120 4,640 520 113% 25,022 27,636 2,614 110% Folder:Desert Willow 2001:Dw2002;Financial Statement Page 1 if) LO @LOCO / $ /cCOi k k0 11N his] ) s ` ` / al ) \| k \ i; T) k \Mu }ƒ \ / E \ /! { k fl \ ) g el /\ )\ \ \ /} \ \ / n \ i 0 Qt { ! § ` L 7 § � # ® {� da \ ® Wu | . � - - a ° 1 \ m ( v � ! 1 : . ƒ! ; o e 11 � . | ! & ( 7 � C2 a \ ) ecl § w $ § 0 0 / ! \! ) 7 ) ƒ / ; t ; - a { ± k a a k \ N Y W e serve eetb& _ $ P8' eeeeta$ 8 - see e - r P - - _ - - rtP - - - 688e 8 000 2 - - i i ., .. g 2 _. _ _ ., ei ..,.,� ., .. .. .._ r, r. _- o r - m »»r»» » » »«rrrr » »»»»»»r.,»»»» » » »» » » » » 7. a h LL - -' rasp rrr »»» » »»r» »r » rrrrrrr»rrrr » rrr » » r » ma0 < = osa_mRFE2ag s = . _ » r _ - NN _° � - aLNF i - U 06 rr maw r rrrrrrrrrrrr r rrr r r r r a a a e d e N e e e e` & e e 8`.�,b e e s e e b e e d > > j rr» r » r r rr» rr» r rrr »rrr »r» »» r »rr » » r r 'o p` 7 rrrr »r r rrrr» r r rrrr»rrr »r»» r »»» 4, 4, 4, 4, a _ - - . __ tt o A• rr»rrr r rrrr«» 4, rrrr»«« «rrrr r »r» r r r r a E d a 3 E. 5 A. R V o , i 5 ' u a ' O 5 a m' o L t i. i' 8 U - - y. c` y ,y `uw� c` U y .`� . = o E� r O' E 5 g - _ „ J V O 5 u — F n V V U U 'C .. a .:U 4 U O C 'C - E 6 F . O O w z S 5 L O v 4 7 a NP k § = ! »g 7 ` § § �/ 2 ®\ a EA # | q \a 8 ! }e | 2 &§ ! | 2a | ' , ■ � a ; § 1...A ®t Q (° ! ° 2 &/ I2 g \j �} R asir k w} � � &§ $ it rt. ! / C ] ) } ° ° ) 0 | 4 1 in W a 8g CV g8 N N Q T _I L.6 a — G Z a N st Aaa� W �1 2 Ig8s m a 03 32IIy ' t0 $ W O. W of v vi • N ▪ 8 L co t•I ci W UT CD \ $ LL if: 1 Itfa ffi g' E Fa 1 I c es E m = a � m a M 0 d B f LL ToU E 3 a c Mobeieo 0 t V m 6 o M e m e m 0 be Ac ::: :: g A 0> a y O N > O w m v- L m L) o o N N K- h v r ca O o ee BQ BQ 6e ee ee ge M,Z. - m A N v n >" 0 _ _ o v v N n E c'9 m0 0 seeeeeeeeeee e o sv — _ n t ° w m r_ — m z o N _ n v, o e a i O F 00 01 O o „ --.. e n ee � e< sete< Be 6 2. O R O > 03 0 0 o mmeeeFBe ee ye u BR ee ee BR * g ye - p T, 0 m . mngan > E - � s $an R = & � � ea- o =_ _ - ce. = mRo S a 0 > > g _ _ _ 0� _ ag�, . a s - 06. .n R _ 9 Cr • R c F a > m3 U z m BR ee ee BQ 8e g° .v N u ?E - _ P2 3 - E K W r r r V >K.� oC co z °m F _< R • g ° r2 BF BF BF BVF m m eF e- . y z eF Be 0 0 o o e '^ P C_ P h ^ N �O OOP N m ❑R a 4 - ems- $ '.-q1 en , - C ° o o >-- - nv eov d �, n n -v _ _ a No .naA_ R O _ _ N N ^ e - ` eeeeeeeee * Pgr, — u - g8oc S fl— . ^ o o? _ _ _ vNn N 8 = Ryy s > y c > -o U n o - - no o�., N h c N _ - �3 m - cE � vmh $� - `oy _ - _ _ - nN � mo� `oo _ _ vi _ C9 __N- N .7 �C - N n vv P a co m - m; K ' °m YZ Fcm R V _ _ _ _ en F - _ nn, Aa ; _ _ 1 F� `<z • o Fa a7 l OE j _ O R C E. F _ F 9 F cc o 0 0 Y - 0 } _ 0 i ❑ 0 Y A IK w a fW 2 <Ji0i U .', < °J,� zo V ga'v`, ozn 0 - < :% CzX V 9 r Y •Y > s F A. a o m5 888888 g o 5 g` c 8 ne � s 1 N > z v9 0 = mn -ro 4 K,. ry - N . t Q 0 O e - - e e o O b N 8 C Np . p > N > K Y' n m F°- om m 8 - eeeee * c 8mO� _ � m zA -_ a OC O GV! .0 - [- E<., o0 oxa 6 u "0 '57 eetett F' "ct. N 9EM - - — a e a5 > 9 .h ”** * * a eee t eeee Le — — - — a �z n8r $ m -. Cr, c P U !- t- n b ee _ - - n o 1 n' O > - >n J _ m =o n ry & moQ $ c 8� _ _ � . m e, -- _ n _ e m ao c a n o s` a _ ^m a > c z eeeee eat a e & ,r cOO C A W N _ N oi `o 7 rzo — , ,La tz °0 5 a z ceett & h ^c tte e e t* 8 _ N Pb N,A OOP - a? PbO Q . n P O _ n . m N _ _ _ _ _ 0a r Z - rscO V `c - - _ n n _ m PIa a! en N a m C . _ Ee y z >' y -c N ^ at5 orc' ,Z .5 ao Aqa — „� o a - m o - _ c a i- o F C z` `o= iz z z a taea p_ e 9 3 2 0 0 _ } t F F k } Y 0 G �`. c L - E g y _ c 18 E E c o t L m ; <' v? z` f U 3 ; tcx<fza ; dz8 U m < n zc U I \ * II us ; ; b ` a no § * \ ! ! v� }! � 3 . H ■ ) � § \ Co « Cl K , - !t ! ` 2 & � ! 1 § fa g § _ # , 0_ 2 Ili 2 H2 • \ " & |a i ! 22 — Cl1,7 i77 ¥ _ \ ■ a \ < ® I - cL gm 0 ; f o k $ % , s • ! k R. ) ■ va h ! < ` - . c) /t� \ jI q | /: & v ks ; ` t ! ! I ( Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- December 2001 Resident 1,554 $ 69,930 $ 45.00 33.49% Non-Resident 2,676 $ 219,796 $ 82.14 57.67% Other 60 $ 600 $ 10.00 1.29% Complimentary 350 $ 610 $ 1.74 7.54% Desert Willow Totals 4,640 $ 290,936 $ 62.70 100.00% Dw2002;POS AVG RD Page 9 _ Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- DECEMBER 2001 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 570 $ 25,650 $ 45.00 14.69% Resident Fee-Weekday 566 $ 25,470 $ 45.00 14.58% Resident -Twilight 128 5,760 $ 45.00 3.30% Total Resident 1,264 $ 56,880 $ 45.00 32.57% Non Resident Posted Weekend 151 $ 22,595 $ 149.64 3.89% Posted Weekday 116 $ 14,505 $ 125.04 2.99% IROC Des. PRTY - Weekday 149 $ 9,188 $ 61.66 3.84% IROC Mbr. Guest - Weekday 28 $ 2,772 $ 99.00 0.72% IROC Des. PRTY - Weekend 252 $ 18,600 $ 73.81 6.49% IROC Mbr. Guest - Weekend 41 $ 4,900 $ 119.51 1.06% Wholesale Weekend 341 $ 29,762 $ 87.28 8.79% Wholesale Weekday 546 $ 33,657 $ 61.64 14.07% I Twilight 229 $ 18,030 $ 78.73 5.90% Posted Replay 5 $ 410 $ 82.00 0.13% I Passbook - Weekday 14 $ 1,330 $ 95.00 0.36% Passbook - Weekend 17 $ 1,885 $ 110.88 0.44% Charity Event 82 $ 2,460 $ 30.00 2.11% 1 Fee Special Event Variable 286 $ 19,575 $ 68.44 7.37% Total Non Resident Rounds 2,257 $ 179,669 $ 79.61 58.16% Other Rounds Junior Walking 45 $ 450 $ 10.00 1.16% Total Other 45 $ 450 $ 10.00 1.31% Complimentary VIP 59 $ - $ - 1.52% PGA Member 53 $ 560 $ 10.57 1.37% Trade 24 $ - $ - 0.62% Donation 28 $ - $ - 0.72% Employee 151 $ - $ - 3.89% Total Complimentary 315 $ 560 $ 1.78 8.12% Total Round (FireCliff) 3,881 $ 237,559 $ 61.21 100.00% Dw2002;POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- DECEMBER 2001 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 125 $ 5,625 $ 45.00 16.47% Resident Fee-Weekday 137 $ 6,165 $ 45.00 18.05% Resident Twilight 28 $ 1,260 $ 45.00 3.69% Total Resident 290 $ 13,050 $ 45.00 38.21% Non Resident Posted Weekend 32 $ 5,280 $ 165.00 4.22% Posted Weekday 31 $ 4,140 $ 133.55 4.08% IROC Des. PRTY- Weekday 40 $ 2,640 $ 66.00 5.27% IROC Des. PRTY- Weekend 68 $ 5,590 $ 82.21 8.96% IROC Mbr / Guest -weekend 12 $ 1,584 $ 132.00 1.58% IROC Mbr / Guest -weekday 12 $ 1,296 $ 108.00 1.58% Wholesale Weekend 63 $ 5,618 $ 89.17 8.30% Wholesale Weekday 47 $ 3,472 $ 73.87 6.19% Twilight 62 $ 5,540 $ 89.35 8.17% Super Twilight 4 $ 260 $ 65.00 0.53% Charity 2 $ 60 $ 30.00 0.26% 1 Fee Special Event Variable 46 $ 4,647 $ 101.02 6.06% Total Non Resident Rounds 419 $ 40,127 $ 95.77 55.20% Other Rounds Junior Walking 15 $ 150 $ 10.00 1.98% Total Other 15 $ 150 $ 10.00 1.98% Complimentary VIP 9 $ - $ - 1.19% PGA Member 11 $ 50 $ 4.55 1.45% Employee 15 $ - $ - 1.98% Total Complimentary 35 $ 50 $ 1.43 4.61% Total Round (Mountainview) 759 $ 53,377 $ 70:33 100% Dw2002;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of December 2001 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 534,320.40 I Variance- Favorable Unfavorable $ 34,320.40 Please note: Although the cash balance is over the $500,000 reserve requirement; Kemper Sports Management Inc. has transferred $273,463.49 to cover the cash shortfalls. To date Kemper has not been reimbursed. Page 12 \ . - PALM DESERT REDEVELOPMENT AGENCY MEMORANDUM t,, TO: Paul S. Gibson, Director of Finance David Yrigoyen, Director of Redevelopment FROM: Dennis M. Coleman, Redevelopment Finance Manager gv ' DATE: February 26, 2002 SUBJECT: Status of the Project Area No. 1, 2002, Series A Bond Issue This memo is intended to give you a quick recap of where we are with the bond issue. This will allowyou togive aquick report to the Finance and Investment Committee on p Wednesday, February 27, 2002. We are going to have a preliminary bond pricing conference call on Wednesday, February 27, 2002 to review the market and give the underwriting team permission to go price and sell the bonds. The total proposed bond issue is $21,900,000. This will refund the remaining 1992, Project Area No.1 bonds, and issue about $914,000 in new bond proceeds. The current structure has us selling two term bond, one for $10,850,000, maturing on April 1, 2025, and another term bond of$11,050,000 which matures on April 1, 2030. The structure was set this way to keep our debt service as level as possible, and enables us to issue the more new money, when we are ready to issue the new bonds. We are currently looking at issuing the $10,850,000 (4/1/25) bond at 5.00 coupon, discounted to yield 5.05%. The second term bond we are looking a par bond priced . with a 5.10% yield. We will see how the market receives our bond issue. MBIA has committed to insuring our bond issue and issuing a surety for our reserve fund. The cost of the insurance is 120 basis points (1.2%) of the debt service, and we will be able to issue new bonds at a 1.15 coverage rate. Staff and the underwriting team solicited Ambac for an insurance commitment for this issue. They declined to bid on this issue because the were concerned with our ability G\RDA\Den=Colvnmi\DATA\WNMEMOS\psg_pa 1bond200)a 022602wpd to pay debt under the most extreme scenario of a loss of 20% of revenue and no growth. The analysis revealed if this scenario happen we could only cover 99% of the debt service in the year 2023. Ambac also stated that they would have preferred a coverage ration of 1.25, and would have charged us 120 to 150 basis points for the insurance. Ambac stated since they now understand our credit that they would bid on a commitment when we issue bonds for our Project Area No.2. Staff feels that we will only be able to reduce the coverage from the current 1.6 to 1.25. This is a comfortable level for Ambac and they should be competitive. I have attached a copy of the structure, the comparisons and the cost of issuance schedule. Thank you for all of your assistance and expertise on this matter. DMC Attachments (as noted) C VLDA\Dmne Coleman\DATA\WPMEMOS\ysyyal bond2002a 022602.wyd Palm Desert Financing Authority Tax Allocation Revenue Bonds, Series 2002 A (Project Area 1 as Amended) Refunding of Tax Allocation Revenue Bonds, 1992 Series A 1992 Series A Par Amount of Bonds 21,900,000.00 Accrued Interest - Total Sources 21,900,000.00 Cost of Escrow Securities 19,944,577.97 Beginning Escrow Cash Balance New Bond Proceeds 914,868.53 Reserve Surety Premium (1) 45,000.00 Underwriter's Discount (2) 240,900.00 Costs of Issuance (3) - 162,653.50 Insurance Premium (4) 592,000.00 OID / (OIP) Accrued Interest - Total Uses 21,900,000.00 Adjustment 0.00 Assumptions (1) 4.00% of the Parity Reserve Fund Requirement (2) 1.10% of the Par Amount of Bonds (3) See Attached Schedule (4) 120bp or 1.20% of Total Principal and Interest Run Date February 20, 2002 Run Time 9:14 AM Prepared By MuniSoft 2/20/2002.9:15 AM • Palm Desert Financing Authority Tax Allocation Revenue Bonds,Series 2002 A (Project Area 1 as Amended) Refunding of Tax Allocation Revenue Bonds, 1992 Series A Proposed Costs of Issuance _ Bond Counsel 45,000.00 Bond Counsel Expenses 1,500.00 Disclosure Counsel 25,000.00 Financial Advisor 43,000.00 Fiscal Consultant 20,000.00 Trustee/Paying/Escrow Agent 3,153.50 Trustee Counsel 1,500.00 Rating Fee(S&P) 9,000.00 Printing/Miscellaneous 10,000.00 Escrow Verification 4,500.00 Total 162,653.50 Prepared By MuniSoft 212012002,9:15 AM Gross Debt Service on New Issue (Series 92 Refunding) Period Fiscal Date principal Rate Interest Total Total 3/13/2002 4/1/2002 10/1/2002 617,333.75 617,333.75 4/1/2003 - 0.000 561,212.50 561,212.50 1,176,546.25 10/1/2003 561,212.50 561,212.50 4/1/2004 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2004 561,212.50 561,212.50 4/1/2005 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2005 561,212.50 561,212.50 4/1/2006 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2006 561,212.50 561,212.50 4/1/2007 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2007 561,212.50 561,212.50 4/1/2008 - 0.000 561,212.50 561,212.50 1,122,425.00 • 10/1/2008 561,212.50 561,212.50 4/1/2009 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2009 561,212.50 561,212.50 4/1/2010 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2010 561,212.50 561,212.50 I 4/1/2011 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2011 561,212.50 561,212.50 4/1/2012 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2012 561,212.50 561,212.50 4/1/2013 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2013 561,212.50 561,212.50 4/1/2014 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2014 561,212.50 561,212.50 4/1/2015 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2015 561,212.50 561,212.50 4/1/2016 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2016 561,212.50 561,212.50 4/1/2017 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2017 561,212.50 561,212.50 4/1/2018 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2018 561,212.50 561,212.50 4/1/2019 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2019 561,212.50 561,212.50 4/1/2020 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2020 561,212.50 561,212.50 4/1/2021 - 0.000 561,212.50 561,212.50 • 1,122,425.00 10/1/2021 561,212.50 561,212.50 4/1/2022 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2022 561,212.50 561,212.50 4/1/2023 - 0.000 561,212.50 561,212.50 1,122,425.00 10/1/2023 561,212.50 561,212.50 4/1/2024 4,750,000 5.100 561,212.50 5,311,212.50 5,672,425.00 10/1/2024 440,087.50 440,087.50 4/1/2025 6,100,000 5.100 440,087.50 6,540,087.50 6,980,175.00 10/1/2025 284,537.50 284,537.50 4/1/2026 1,995,000 5.150 264,537.50 2,279,537.50 2,564,075.00 10/1/2026 233,166.25 233,166.25 4/1/2027 2,095,000 5.150 233,166.25 2,228,166.25 2,561,332.50 10/1/2027 179,220.00 179,220.00 4/1/2028 2,205,000 5.150 179,220.00 2,384,220.00 2,563,440.00 10/1/2026 122,441.25 122,441.25 4/1/2029 2,320,000 5.150 122,441.25 2,442,441.25 2,564,882.50 10/1/2029 62,101.25 62,701.25 4/1/2030 2,435,000 5.150 62,701.25 2,497,701.25 2,560,402.50 10/1/2030 - - 4/1/2031 - 0.000 - - - 21,900,000 27,393,778.75 49,293,778.75 49,293,778.75 E 1e . / ~ L ¢ �F raammm “:“.; ammmmmmmmnr- rnnnnn n ..7 v ma Im q F g� m .42 Ad tQn „ .. nnnnnnnnnnnnnnnnnnnn � . . . . . k P ] z E € :. . m . em _ . _ . ammmmo . / mmn i M & ytl '4 " nnnnnnnnnnnmm � nnnnnnnnn . ,- . . . .- 14g A : 3 9 ` ' , nnnnnnnnnnnnn . nn . nnnnnnnnn , n E I' i : a 8 / y 5 e,g: tr 5 ^ iE F: is . . . pU b " S: z ° gm is is _ . . a s " ^ x z i ca '. s: jai , " 54 :5z z _ in % y & 888888888888E 888 p3 a8 /15 11 in 88888888888888E 8 al glal. 83 z i,ryvm*,4erg.n-3'r,,..al.nmr, ".'°8 ." - - . , " rn_..8 1 8788888888888988888E9.8 8 8 im III d n I 8;8888888E881E88888888 8 8 N 558 d 4 NNu:::ii:u:i::u««SSS S : II] ■$ i lli HI 1 rz yr Im x ,. sA:s3'Aw.=-.r8 8 ' "8 8 8 8 8 E ..8 2 8 d^Ef2rss'"'ut2r. iI gg 888888888888888888288889 8 8 ! j € g' § e g88888888888888888888888 8 1 ti; E 8+ . . is :i Iii I 3 a "s-��T".-gym_g Jc."i.-.r.., ".:�'".��Pt.'rz g;..n an*,;;+rvra,. 1 3 888888888888888888E 8 N : :: 3 I II; 7 n 88888s8888E88g88888 a g ; . . 3'E 99 :.3: .: n iff N is i in III sy^ {': 9 88888588�8R8��S88888 98 ai y {{ C �N«nnnN6 :::..:::nn n n i� [ in 8 88888888888881888898 8 88 3 s 2 If i 22 H. i s n 3: § a ii. F W i f1+�{8 8 g i F8i 3`SI .ia 8 d 8 yxs d E i y O Ili- i i• 8 8 i Ili< t a 8 01 el Ili i f if 1141 E 7, E i 08SiS86SS EFEE2EEAEEBE9 s gip a,'! . j CEEEEEEEEEE EEEB Y.EEEEEEEEEEEEEBEEE 1 L s I e $ s ! a a e Si a € ; I 8 a 8 + 's a ; i + d3pg $2 e88288888893828a illI eRa;9RR8 a3t 1 a 8 foJA!dasa!3I•as:E=$irm§sese8es, II aJ s �NN.f.T iA♦t�f.iS' e Cdui N i 8 .r.x#'w4rtaflu i,..-+q,,v.„, l w_r. _mNa ::.uS'rammasum"S�nlai%' ± 7 7 i 3 5 ii li i i g 7 a e e al HN 8 V"` .i.'Tuta!`"9krrTk '�..""y�tr�.�.._!sie .a i w. :J.'yvaia viL .semen 3 8 2 : 3 a § a a e41 3 i Si 8 a a 8 9 8 1 R I r 7 iir.w^r.: ad,: -I—u-s 'll.'lv3xi"e"".c ",c...+�..rtT.., ._r",�;:3:n :1a:; “8888882222 2 a a F F444;4, 44444 i e n I I g� a €�8288a8F988 8 0 e 11 S«NNNMnMn n :In ii L a i t g H I 8 ' i 9 I I ili< a II s I al 38 11 a 3ii f 1141 11 , a vita l i WI oaaa88saa azraaaasUaeaza ; 101 i : 1¢ :8828222222822828882282222222882 1 dS E 2 'WA] 'WA2 '1211A1 �a m '11/1A1 y L C } l 1 '1WA1 O y M C g" -p O C N WA/ . !LO C I r 3 paF a 1 'Wit m C � N 'WA1I >- YIAI -10 C MO •moot slid 111A1 n a d A $ PIRA wm • 1W1nt fill mn1 I r nu y 171 )1 ID .,1ml M = +�/ wno 3 c w I R O , P e Q C' H - i m�u o e d ' it m m C VIM 41 � 0 C r ) Inn e >0 } �`. tonne.1110111 R `/ co co . V F mn. CI ir: 11:11 7 wne 3 F .0 vim O 11u1n1 m 7 mn> ididi 1111197 wnT g al 9 9 PRA