Loading...
HomeMy WebLinkAbout2001-09-19COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 9/19/01 Location North Wina Conference Room Mailed Agenda Posted Agenda 4,,6 Time Convene Adjournment /21e52�, Staff Members Attending 1 Paul Gibson, Chairperson 2 Council Member 3 Council��}}�nilMember}}yy�� 4 D'aC'erwirti`Ci ttor 5 Carlos Ortega, City Mgr. 6 I Thomas Jeffrey I Public Members Attending I 7 I Russ Campbell 8 I Murray Magloff 9 I Bill Veazie Follow-Ups/Tasks Assigned 1 hp `lip 2 l n/1/ l " LT) fie 5 an.P r Ca4n„ p4uV, N . (-I Yes No 10 11 12 13 14 15 16 17 Others Attending Dennis Coleman Recording Secretary Guests Attending 6 Time 12:00 p.m. Yes No Person Responsible Due Date Spoke Mtn (1) Mtn (2) r MEETING NOTES ��y� '/�/jf,�',),. �n� / er ,c l d " '� & ,i &C 7 "t 9 ffla tt±4 c_ � `�V JC(,c 3-o - cJ1pA4 v'P Efe If- �-el-(Yco 4A • p P Q if et '2* r‘i£pA d teh tie d t)i 1%eC(e0) �-, q* ,,sty-45 - a 7IY1..j, �u /.0 00 Ys3 % cos Ws f. (tea 'O 3 r( Mari 91�660,120- P" - "ir " dpieri %1"; 1:01/1-kmanD 11/ ,91.901-15 gPd tom-, vim _%x- (llt. hug.eret 00A, c.ityQ, i lg- Grey( ni4 c1c Ion? rhu,rt,1hc R l /', • • Spoke Mtn (1) Mtn (2) MEETING NOTES ' , ILO itUoh tog kfr 0( l.0' I cr'.r/f /! (vet 7rd f r -er o-rs/4/r r ta,rd 1 r !� W d Git e 9 lld�{,• 0A vfi i75araai r. (��/qi[�h o 4-L0/2-�. I lo_'rhSbQn2 b�Or4 r o ( k&ipot c � pacSP i ..a elhr7 "nor- 50 cars* t aril • r 444 ,1 -h a 1,71 Z/ UV? dvl cn.4l1/o.,2? t y 7h,VI r'/ems /tea d pm, tir Spoke Mtn (1) /� Mtn (2) MEETING NOTES 11) K r-9'nl kll //u 7 '7 4a4 Jt11 S frorANnc, ) ffut e o Gt,aAA ni f2Q lyII.hlA,rr�j7�r CerinA4 ; 7*f-4/4 °firth G fia Pre '1f44 it442 gagy 4 razz) l ".P cc±� s ate �n Q�/QI 9 �« . ,,,- '� • -eS V?QQ �2u pdto bre rTr 4o -71D 4 k 4 fO 6,6 ntoo fLosos, Pjr,icfr rip Ind le-em kre) ieinsoo ,Cuir, Iona o fr MEETING NOTES 7jcYY1if1 hnnv/9n P p y ennLWa`1 i f MRS L YA (S�Ps'l, r,2 � kar- rcivose e rk��- kl 1444 �cc�a roo rcd- 4 d �l� C/J. 4r1Vfll �pfrmhd if tor th7/ ` Y 7 { b r e i n- _ P IC/ ,Erbibat,j fr kylit444 Kee,/ 69tk1 o4a449AJ1 1 G c: , Og,4 �A ��e „xi/(l �6 =r�ij1 cv 4 e;_ r 5--fr 4-1- 4/04, owni I a' 11/1-14Pr i , I¢fr a 12-04-Q ib Ca/ O Cr l i `> ) 1_,00 -TYuirraM mato thcem-r/0 GAS CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE AGENDA September 19, 2001 North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. 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 July 18, 2001, as submitted 1 091201 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 Action: V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. City and Redevelooment Aaencv Investment Schedules and Summary of Cash Reports for Julv and Auaust 2001 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for July and August 2001. Review status of capital projects and cash -flow projections. Action: B. Review Short -Term Investments Maturing in September 2001 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and 3) agencies discount notes Action: C. Enactment of AB 609 Kelley Rec: Review and file report Action: D. Audit Report From Diehl. Evans & Company and Oscar Armiio Rec: Review and file report Action: 2 091201 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 E. State of California Local Agency Investment Fund Monthly Report for May. June and July 2001 Rec: Informational item for the Committee to review. No action required Action: F. City and Redevelopment Aaencv Monthly Financial Reports for City Council for July and August 2001 Rec: Report and submit to City Council Action: G. Parkview Professional Office Buildinas - Financial Report for July and Auaust 2001 Rec: Review and file report: Action: H. Desert Willow Golf Resort Financial Information for June and July 2001 Rec: Review and file report Action: I. Palm Desert Recreation Facilities Corporation Income Analysis for June and July 2001 Rec: Review and file report Action: J. Travel Expense Guidelines Rec: Review and file report Action: 3 091201 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 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, October 17th. 2001 at 12:00 noon. X. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior toe meeting. Dated this 12'h day of September, 2001. ordi$g Secretary 4 091201 wpd CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE MINUTES JULY 18, 2001 I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, July 18, 2001, at 12:10 p.m. II. ROLL CALL Present: Chairman Paul Gibson City Manager Carlos Ortega Investment Manager Thomas Jeffrey City Attorney David Erwin Murray Magloff Robert Spiegel William Veazie Also Present: Redevelopment Manager Dennis Coleman Desert Willow Manager Rodney Young Recording Secretary Megan Tomalak III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. Approval of Minutes Absent: Russell Campbell Mayor James Ferguson Richard Kelly Upon motion of Mr. Ortega, seconded by Mr. Erwin, and carried by majority vote, the minutes of the May 16, 2001 meeting were approved as submitted. Mr. Spiegel abstained. 1 G City ClerkWoreen BouctarUWoreenlStyle GudelSample Minutes W-O Marks Investment & Finance Committee i Minutes July 18, 2001 V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS A. City and Redevelopment Aaencv Investment Schedules and Summary of Cash Reports for Mav and June 2001 Upon motion of Mr. Erwin, seconded by Mr. Spiegel the 2001 Broker Requalification Recommendation was added to the Agenda. All were in favor of the motion. Mr. Spiegel motioned and it was seconded by Mr. Erwin for the Broker Requalification Recommendation to be forwarded to City Council. All were in favor of the motion. The Investment Schedules and Summary of Cash Reports for May and June 2001 were forwarded to City Council for their approval. B. Review Short -Term Investments Maturing in July 2001 Reviewed and Filed. C. State of California Local Aaencv Investment Fund Monthly Report for March and April 2001 Reviewed and Filed. D. City and Redevelopment Aaencv Monthly Financial Reports for Citv Council for Mav and June 2001 Reviewed and Filed. E. Parkview Professional Office Buildinas - Financial Report for Mav and June 2001 Reviewed and Filed. 2 G IGdy GerkWoreen BoucnardWoreentStyle Gwde\Sample Minutes W-O Marks 'Investment & Finance Committee Minutes July 18, 2001 F. Desert Willow Golf Resort Financial Information for April and Mav 2001 Reviewed and Filed. G. Palm Desert Recreation Facilities Corporation Income Analysis for April and Mav 2001 Reviewed and Filed. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks It was motioned by Mr. Erwin and seconded by Mr. Spiegel that the review and approval background check on Bernard Dervieux, dba Cuistot be moved ahead and forwarded to City Council. Recommendation was unanimous. B. Bond Issuance by Palm Desert Financina Authority No action. IX. REPORTS AND REMARKS A. Next Meetina It was motioned by Mr. Ortega and seconded by Mr. Erwin there will be no meeting scheduled for August. All were in favor. The next meeting will be held in September. B. Action Minutes of Meeting Due to the transferring out of the Finance's Administrative Secretary it was requested by the staff that only Action Minutes be taken until the position is filled. 3 G IGRy clerkWoreen Boud arthNoreenlStyle GudelSample Minutes W-O Marks I. Investment & Finance Committee Minutes July 18, 2001 X. ADJOURNMENT There being no further business, the meeting was adjourned by Chairman Gibson at 1:10 p.m. Respectfully submitted, MegaffTomalak, Recording Secretary 4 GJCRy ClerkWoreen BouchardWoreen\StNe GuMelSample Minutes W-O Marks CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM To: Rachelle Klassen, Deputy City Clerk From: Diana Leal, Administrative Secretary �Q1Ail Date: November 21, 2001 • Subject: Agenda Request for Approval of Investment & Finance Committee Minutes Attached is a copy of the September 19, 2001 minutes of the Investment and Finance Committee, approved by the Committee on November 21, 2001. Please place on the next City Council agenda for approval thereof. Additionally attached, is the attendance record of said Committee. Thank you for your assistance. Attachments (2) G\pouxetDiaa LalWpdoc,Vmemomt C®nmeVNVSTCOMWa 2COIGgeodareq-m^otes wpd CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE Minutes September 19, 2001 North Wing Conference Room 1. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, September 19, 2001, at 12:05 p.m. II. ROLL CALL Present: Absent: Chairman Paul Gibson Mayor Pro-Tempore Richard Kelly City Manager Carlos Ortega City Attorney Bob Hargraves Investment Manager Thomas Jeffrey Russ Campbell Murray Magloff Bill Veazie Also Present: Mayor Jim Ferguson Redevelopment Finance Manager Dennis Coleman Desert Willow Manager Rodney Young Recording Secretary Diana Leal III. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Campbell and seconded by Mr. Veazie to approve the Minutes of the July 18, 2001 meeting as submitted. Motion carried. 1 091701.wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. City and Redevelopment Aaencv Investment Schedules and Summary of Cash Reports for July and August 2001 Mr. Jeffrey gave a brief summary of the Cash Reports. For the month ended 31 July 2001, the book value of the City's Portfolio was approximately $173, 918,000. The City made approximately $691,000 in interest earnings during that period. The City Portfolio's yield -to -maturity was 4.53%. For the month ended 31 July 2001, the book value of the RDA portfolio was approximately $147,263,000. The RDA made approximately $624,000 in interest earnings during that period. The RDA Portfolio's yield -to -maturity was 4.08%. For the month ended 31 August 2001, the book value of the City Portfolio was approximately $173,791,000. The City made approximately $712,000 in interest earnings during that period. The City Portfolio's yield -to -maturity was 4.42%. For the month ended 31 August 2001, the book value of the RDA Portfolio was approximately $146,689,000. The RDA made approximately $604,000 in interest earnings during that period. The RDA Portfolio's yield -to -maturity was 3.96%. B. Review Short -Term Investments Maturina in September 2001 Mr. Jeffrey gave a brief overview of the maturing investments in September 2001 for the City and the Redevelopment Agency. C. Enactment of AB 609 (Kelley) Mr. Gibson said that the AB 609, which the City had sponsored, had been signed into law by Governor Davis, without opposition. The California Association of County Treasurers and Tax Collectors ("CACTTC") had served as the bill's co- sponsor. AB 609 will allow the City to increase the amount of commercial paper that it buys (increased from 15% to 25% of total investment portfolio). Commercial paper is the City's most profitable short-term investment. Report filed. 2 091701 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 D. Audit Report From Diehl. Evans & Company and Oscar Armiio Mr. Gibson noted that the outside auditor had made three minor findings in its audit of cash and investments, none of which related to the investment of City and RDA funds. All three findings had been resolved. Action: Motion made by R. Campbell and seconded by B. Veazie to forward Audit Report from Diehl, Evans & Company and Oscar Armijo to the City Council for review and approval. Motion carried. Report filed. E. State of California Local Aaencv Investment Fund Monthly Report for May. June and July 2001 Mr. Gibson stated that the LAIF interest rate for June 2001 was 4.95%, compared with last year's rate of 6.35%. He believes that it will drop within the next six months to a 2%-3% range, until consumers regain their confidence. F. City and Redevelopment Aaencv Monthly Financial Reports for City Council for June (Revised). July and August 2001 Mr. Ortega asked if the June report was for the close of the fiscal year. Mr. Gibson said that the June report included everything with the exception of audit adjustments made. In the past, the City would only accrue anything received in July and August on the books, however, because of GASB 34, anything that is related to the fiscal year is accrued. For example, Teeter, typically is not received from the County until late October or November. Now, we are required to book the adjustments on the books. Those figures will be obtained in late October. Mr. Ortega said that the General Fund indicated $30.9 million and the actual was amount was $37 million. $30 million was budgeted for expenditures and the actual expenditures were $31 million. Mr. Gibson said that it was correct and that there are encumbrances (made through contracts whereby the City has committed to pay for services or supplies) that need to be considered. Therefore, in reality $33 million has been spent. G. Parkview Professional Office Buildings - Financial Report for July and Auaust 2001 The financial reports for July and August 2001 were distributed and discussed. Mr. Gibson said that the tenants JMS Engineering Consultants have informed the City of their intent to leave the Parkview office complex. This matter will be discussed at the next Council meeting under closed session. 3 091 01 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 H. Desert Willow Golf Resort Financial Information for June and July 2001 Mr. Young said that they are close to finalizing the numbers for the end of the fiscal year. Mr. Gibson said that typically they run a month behind with the finalizing of the numbers. Mr. Ortega asked if Desert Willow was experiencing the same amount of cancellations on the pre -booked business scheduled for the upcoming fiscal year. Mr. Young said that to date there were 280 cancellations. Mr. Young said that business for the month of August was competitive. The Palm Springs Norte! Film Festival has been cancelled. Its cancellation will greatly affect the City of Palm Springs. Mr. Young said that Food and Beverage is doing much better in comparison to last year. The Grounds were up in July and slightly down in August. Palm Desert Recreation Facilities Corporation Income Analysis for June and Julv 2001 Mr. Gibson said that the City has filed for a new non-profit corporation in order to meet the requirements of the Internal Revenue Service on non-profit status and also meet Alcohol Beverage Control (ABC) license requirements. The new corporation will be called the City of Palm Desert Golf Course Facilities Corporation (PDGCFC) and will combine what is on the books as Desert Willow and the Recreation Facility Corporation into one set of books under a non-profit corporation. The City is in the process of setting up a checking account. In addition, the City is negotiating with Kemper on finalizing the management agreement under the new corporation contract. The first meeting of the PDGCFC is set for September 28. The Corporation board members will include two council members (Dick Kelly and Jim Ferguson), and two citizens -at -large (Russ Campbell and Dave Tschopp). The City Manager will review the PDGCFC operations on a monthly basis. In September or October, the books will be combined together and will have one statement. J. Travel Expense Guidelines Travel Expense Guidelines were distributed for review and approval. The purpose of the guidelines is to provide staff and committee members with a more defined procedure for travel. The resolution indicates that personnel can be reimbursed for certain expenses and that spouses can only attend certain meetings. Mr. Ortega asked if the travel Expense Guidelines presented were a re -draft of recommendations and/or comments made by executive management. 4 091701.wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 Mr. Gibson confirmed that they were the final notations made. Mr. Ortega suggested that the Travel Expense Guidelines be continued for further review. Action: Item continued to meeting of October 17, 2001 for action. VII. CONTINUED BUSINESS None. VIII. OLD BUSINESS A. Status of Public and Private Partnerships Backaround Checks There being no business issues to report, discussion ensued to the next agenda item. B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that staff will be presenting an agenda item to Council regarding Project Area #4. There has been an average of 15% assessed valuation growth for the last 3 years. In that period, escrow bonds were issued. The schedule for 1998 indicated that the escrow bonds would be released by 2002. Because of the growth, the marks were hit, consequently, bonds were released this year. There are some identified projects on the Redevelopment plans that still need to be accomplished such as drainage and the Fred Waring Drive Improvements. The interest rates are very appealing at this time. Staff is looking at the issuance of more bonds based upon the strength of th'e current income. When the project was adopted in 1993, the assessed valuation of the project area that was frozen was $587 million. Today, it is at $1.2 billion which is the growth that has been sustained. This project is the in the area of Indian Ridge and Oasis Country Club. One of the major projects which is being undertaken and being paid for at this time is the Regional Park. Based on the current increment, the City is looking at a $9 to $10 million bond depending on when the rates fall out. Staff, based upon previous estimates of growth, thinks that perhaps another $10 million in escrow bonds is necessary. A financing team has been assembled with one exception. The exception deals with how the official statement is produced. In the past, the underwriters were allowed to have their attorneys handle the document. However, this document is more the City's document. Staff looked at other firms; Fulbright and Jawarsky and Best, Best and Krieger who have a bonding department. The 5 091701.wptl INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 recommendation was to use Best, Best & Krieger for this particular bond issue. Richards, Watson and Gershon, bond counsel, has prepared resolutions. The underwriting team is Kinsell, Newcomb and De Dios. In addition, a new firm called Stinson Securities which just started and is operated by Lonnie Odom formerly employed by Redwood Securities. Staff is looking at escrow bonds structure and will make sure that there is enough money to take care of other obligations that are on subordinate basis (i.e. the Regional Access Program) and administration costs. Based upon the current increment, there is approximately $1.6 to $1.8 million available for debt service. The current bonds have a maximum annual debt service of about $883,000. Staff wants to be able to go out and be able to accomplish more projects as per the Redevelopment Agency. Staff is looking at a payment structure whereby the City pays a premium if the firm is called rather than pay an interest rate premium. In the past when milestones have been met and the bonds are released, an interest premium over 30 years was paid. Mr. Veazie asked if the official statement needs to be approved by the City Attorney. Mr. Coleman said that the official statement is approved by Disclosure Counsel which provides their legal opinion. Mr. Veazie was concerned that it might be a conflict of interest if the City Attorney's office was in charge of obtaining bonding. Mr. Coleman said that they have a group that does public finance. Mr. Ortega said that there is undisclosed information, ultimately, the liability falls on their firm. Mr. Kelly asked about his responsibility when informing the public of the City's bond buying practices. Mr. Gibson said that Council can speak to the public of general bond buying information, however, specific information needs to be obtained by the bond buying underwriter. Mr. Ortega said that the best thing a council member can do if asked for information is to provide the public with a copy of the official statement. As soon as an official statement is available it can be provided. Mr. Gibson said that the council will be briefed on the information that can be disclosed to the public. Mr. Magloff inquired about the money that was donated to the McCallum Theater. Mr. Gibson said that the money went into a trust fund whereby the McCallum Theater cannot withdraw under the current agreement other than interest earnings (1/48th over 48 years). IX. NEXT MEETING - Wednesday, October 17th. 2001 at 12:00 noon. 6 091701 wpd INVESTMENT & FINANCE COMMITTEE AGENDA SEPTEMBER 19TH, 2001 X. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 1:05 p.m. Respectfully submitted, Di na Leal, = ord ng Secretary 7 091701 wp0 or rof01M se. # ` Gi, till Bede elo mended yaPo ! s �PyryCOM1}P�SLWANGr ANALYSI.i AND INVESzTMENIvBE ii- i Q� it � .. Cw nyYVi "he.'u+Y Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Investment Manager Treasurer's Commentary Fed Chairman Alan Greenspan indicated, in his 18 July semiannual testimony to Congress on monetary policy, that it is likely that the Federal Open Markets Committee ("FOMC") has not finished with rate cuts. In July, the economy continued to show widespread weakness, particularly in the manufacturing sector, although energy prices receded to their lowest level since the second quarter of 2000. Notwithstanding OPEC's pledge to reduce cartel petroleum production by one million barrels a day, energy prices have probably peaked for the next year. The yield on a two-year U.S. Treasury Note fell to its lowest level in eight years. The Treasury yield curve flattened on the short end (less then one year) and then rose steeply on the intermediate -to -long end. This suggests that the market does not believe that there will be a significant economic recovery until the middle of 2002. Accordingly, many portfolio managers are shortening the average maturity of their portfolios so that they will be able to reinvest at higher rates next year. It is widely believed that there will be another rate cut at the 21 August FOMC meeting. Dollars in Thousands Patti S. Qibsons C.C.M. r Treasurer PORTFOLIO STATISTICS JUL-01 JUN-01 MAY-01 APR-01 MAR-01 FEB-01 CITY Month -End Book Value $ 173,918 $ 180,988 $ 191,248 $ 167,410 $ 160,826 $ 176,507 Month -End Market Value $ 176,067 $ 182,946 $ 193,211 $ 169,128 $ 162,839 $ 178,451 Paper Gain (Loss) $ 2,149 $ 1,958 $ 1,963 $ 1,718 $ 2,013 $ 1,944 Interest Earnings $ 691 $ 751 $ 744 $ 746 $ 795 $ 823 Yield -To -Maturity 4.53% 4.71% 4.91% 5.46% 5.72% 5.86% Weighted Maturity (Days) 354 356 341 383 404 379 Effective Duration 0.29 0.30 0.30 0.33 0.37 0.36 RDA Month -End Book Value $ 147,263 $ 159,400 $ 147,250 $ 154,800 $ 150,027 $ 153,331 Month -End Market Value $ 148,842 $ 160,838 $ 148,678 $ 156,229 $ 151,398 $ 154,624 Paper Gain (Loss) $ 1,579 $ 1,438 $ 1,428 $ 1,429 $ 1,371 $ 1,293 Interest Earnings $ 624 $ 659 $ 679 $ 741 $ 668 $ 698 Yield -To -Maturity 4.08% 4.44% 4.74% 5.20% 5.44% 5.73% Weighted Maturity (Days) 902 853 922 913 972 952 Effective Duration 0.45 0.50 0.58 0.58 0.65 0.67 City Treasurer's Office 73-510 Fred Waring Drive Palm Desert, CA 92502-2205 760.346.0611 Dollars in Thousands Aaeina Interval <1M <2M c 3M <6M <1YR <2YR < 3YR <4YR < 5YR > 5YR Total: City of Palm Desert - Portfolio Characteristics 31 July 2001 Market Value $ 40,736 5,053 as 10,921 14,311 0 30 15- $ 71,021 patinas • Market Value AAA $ 70,957 AA 7,068 A 6,092 Al/P1 - Unrated ** 91,486 Total: $ 175,603 Sector Market Value U.S. Treasury $ 24,426 Federal Agency 20,094 Money Market Funds 51,820 Commercial Paper - Corporate Bonds 18,260 LAIF 30,000 RDA Loan 31,003 Total: $ 175,603 Month City Yield LAIF Yield Variance Aug00 6.05 6.51 -0.46 Sep 6.14 6.50 -0.36 Oct 6.15 6.52 -0.37 Nov 6.20 6.54 -0.34 Dec 6.22 6.54 -0.32 Jan01 6.10 6.37 -0.27 Feb 5.86 6.17 -0.31 Mar 5.72 5.98 -0.26 Apr 5.46 5.76 -0.30 May 4.91 5.33 -0.42 Jun 4.71 4.96 -0.25 Jul 4.53 4.64 -0.11 'General Fund Ageing$ 60 57 rd�= 0 0. <1M <2M 'Credit Quality, AAA 40% 'Asset Allocation' Al/P1 0% Unrated'" 53% Money Market Funds 30°l, Federal Agency 11% U.S. Treasury 14% 20 15 IIr. 7 <3M <6M <1YR <2YR 4% A 3% Commercial Paper 0°4 Corporate Bonds 10% LAIF 17% RDA Loan 18% • 'Performance 7.0 6.5 16.0- 0 5.5 . 5.0 - 4.5 Aug00 Sep Oct Nov Dec Jan01 Feb Ma Ap May Jun Jul ©LAIF Yield DCity Yield i * Standard and Poor's Credit Ratings ** LAIF, HighMark Sweep, and City Loan to RDA Page 2 of 8 I$ City of Palm Desert Portfolio Holdings 31 July 2001 Par Value I Issuer I Coupon I Maturity 1 Medium -Term Notes $ 1,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 1,000,000 $ 2,000,000 $ 4,000,000 $ 1,000,000 $ 2,970,000 17,970,000 ASSOCIATES DU PONT GENERAL ELECTRIC GENERAL ELECTRIC GENERAL ELECTRIC GENERAL MOTORS GENERAL MOTORS MERRILL LYNCH WAL-MART Subtotals Agencies - Callable $ 2,000,000 FED HOME LOAN BANK - I $ 2,000,000 Subtotals 6.50 8/15/02 6.75 10/15/02 5.18 2/1/02 6.52 10/8/02 6.65 9/3/02 6.45 8/27/01 5.95 3/14/03 5.71 1/15/02 6.15 8/10/01 Market I Ratings Cost 1 YTM I Price I Value Moody's(S & P $ 1,021,156 $ 1,998,546 $ 1,997,267 $ 1,993,919 $ 1,023,957 $ 1,999,506 $ 3,999,755 $ 1,007,436 $ 2,970,024 $ 18,011,566 4.38 102.68 6.81 102.99 5.48 100.76 6.80 102.86 4.36 102.81 6.81 100.17 5.94 102.20 4.03 100.96 6.11 100.05 5.92 $ 1,026,817 $ 2,059,870 $ 2,015,224 $ 2,057,282 $ 1,028,129 $ 2,003,454 $ 4,088,116 $ 1,009,633 $ 2,971,592 $ 18,260,116 AA- Aa3 Aa3 AA- Aaa AAA Aaa AAA Aaa AAA A2 A A2 A Aa3 AA- Aa2 AA 1 5.56 11/26/01 $ 2,000,000 5.56 100.59 $ 2,011,875 Aaa AAA $ 2,000,000 5.56 $ 2,011,875 Agencies - Coupon $ 2,000,000 FED HOME LOAN BANK 5.13 2/26/02 $ 1,983,401 6.68 100.84 $ 2,016,875 Aaa AAA I$ 3,000,000 965,000 2,000,000 2,000,000 2,000,000 2,000,000 13,965,000 FED HOME LOAN BANK FED HOME LOAN BANK FED HOME LOAN MTG CORP FED NATIONAL MTG ASSOC FED NATIONAL MTG ASSOC FED NATIONAL MTG ASSOC Subtotals Agencies - Discount $ 4,000,000 FED HOME LOAN MTG CORP I $ 4,000,000 Subtotals U.S. Treasury - Coupon 1,340,000 UNITED STATES TREASURY 103,000 UNITED STATES TREASURY 13,000 UNITED STATES TREASURY 300,000 UNITED STATES TREASURY 15,194,000 UNITED STATES TREASURY 911,000 UNITED STATES TREASURY 17,861,000 Subtotals 6.63 8/23/01 $ 2,999,854 6.71 100.19 $ 3,005,625 Aaa AAA 6.75 2/15/02 $ 978,901 3.98 101.66 $ 980,983 Aaa AAA 6.63 8/15/02 $ 1,998,178 6.72 103.00 $ 2,060,000 Aaa AAA 6.63 1/15/02 $ 1,999,312 6.70 101.34 $ 2,026,875 Aaa AAA 5.38 3/15/02 $ 2,016,279 3.99 101.06 $ 2,021,250 Aaa AAA 6.75 8/15/02 $ 2,049,012 4.29 103.13 $ 2,062,500 Aaa AAA $ 14,024,938 5.77 $ 14,174,108 3.77 3/28/02 $ 3,873,914 3.98 97.69 $ 3,907,600 Aaa AAA $ 3,873,914 3.98 $ 3,907,600 6.25 8/31/02 6.50 8/31/01 6.25 2/28/02 6.63 3/31/02 5.88 9/30/02 6.38 9/30/01 U.S. Treasury - Discount $ 166,000 UNITED STATES TREASURY 5.08 $ 6,170,000 UNITED STATES TREASURY 5.03 $ 6,336,000 Subtotals $ 1,345,085 $ 103,050 $ 13,027 $ 301,343 $ 15,198,602 $ 911,707 $ 17,872,814 5/15/02 $ 128,677 8/15/02 $ 4,718,446 $ 4,847,122 5.84 5.83 5.84 5.85 5.84 5.84 5.84 102.84 100.22 101.59 102.06 102.66 100.44 $ 1,378,106 $ 103,225 $ 13,207 $ 306,188 $ 15,597,591 $ 914,986 $ 18,313,303 Aaa AAA Aaa AAA Aaa AAA Aaa AAA Aaa AAA Aaa AAA 5.84 97.35 $ 161,598 Aaa AAA 5.82 96.45 $ 5,950,965 Aaa AAA 5.82 $ 6,112,562 1 1 NR = Not Rated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 July 2001 I Market I Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody'sl S & P LGIPs $ 30,000,000 L.A.I.F. 0.00 8/1/01 $ 30,000,000 4.64 100.00 $ 30,000,000 NR NR $ 30,000,000 Subtotals $ 30,000,000 4.64 $ 30,000,000 Pooled Funds - AIM $ 21,336,742 PRIME PORTFOLIO 0.00 8/1/01 $ 21,336,742 3.46 100.00 $ 21,336,742 Aaa AAA $ 21,336,742 Subtotals $ 21,336,742 3.46 $ 21,336,742 Pooled Funds - HighMark $ 28,958,745 CITY MAIN SWEEP 0.00 8/1/01 $ 28,958,745 2.79 100.00 $ 28,958,745 NR NR $ 391,086 DESERT WILLOW SWEEP 0.00 8/1/01 $ 391,086 2.79 100.00 $ 391,086 NR NR $ 1,133,020 OFFICE COMPLEX SWEEP 0.00 8/1/01 $ 1,133,020 2.79 100.00 $ 1,133,020 NR NR $ 30,482,851 Subtotals $ 30,482,851 2.79 $ 30,482,851 City Loan to RDA $ 31,002,917 CITY OF PALM DESERT 0.00 7/31/31 $ 31,002,917 4.64 100.00 $ 31,002,917 NR NR $ 31,002,917 Subtotals $ 31,002,917 4.64 $ 31,002,917 SLGSs - Time $ 430,000 UNITED STATES TREASURY 0.00 10/1/02 $ 430,000 0.00 100.00 $ 430,000 Aaa AAA $ 35,000 UNITED STATES TREASURY 0.00 9/2/02 $ 35,000 0.00 100.00 $ 35,000 Aaa AAA $ 465,000 Subtotals $ 465,000 0.00 $ 465,000 Total Investments $ 175,419,510 $ 173,917,864 4.53 $ 176,067,074 Cash $ 120,518 CITY MAIN CHKG 0.00 8/1/01 $ 120,518 0.00 100.00 $ 120,518 NR NR $ 139,057 DESERT WILLOW CHKG 0.00 8/1/01 $ 139,057 0.00 100.00 $ 139,057 NR NR $ 50,344 OFFICE COMPLEX CHKG 0.00 8/1/01 $ 50,344 0.00 100.00 $ 50,344 NR NR $ 28,949 OFFICE COMPLEX TRUST 0.00 8/1/01 $ 28,949 0.00 100.00 $ 28,949 NR NR $ 121,793 RECREATIONAL FAC CHKG 0.00 8/1/01 $ 121,793 0.00 100.00 $ 121,793 NR NR $ 460,662 Subtotals I $ 460,662 0.00 I $ 460,662 Total Cash and Investments $175,880,172 $ 174,378,526 $ 176,527,736 NR = Not Rated Page 4 of 8 • Dollars in Thousands Aaeina Interval <1M <2M < 3M <6M < 1YR <2YR <3YR <4YR <5YR > 5YR Total: Palm Desert Redevelopment Agency - Portfolio Characteristics 31 July 2001 Market Value $ 72,190 177 1,557 184 1,043 961 6,186 $ 82,298 Quality * Market Value AAA $ 47,449 AA - A Al/P1 Unrated " 34,849 Total: $ 82,298 Sector Market Value U.S. Treasury $ 10,249 Federal Agency Money Market Funds 42,049 LAIF 30,000 Commercial Paper Corporate Bonds - Total: $ 82,298 Month RDA Yield LAIF Yield Variance Aug00 6.09 6.51 -0.42 Sep 6.04 6.50 -0.46 Oct 6.03 6.52 -0.49 Nov 6.02 6.54 -0.52 Dec 6.08 6.54 -0.46 Jan01 5.97 6.37 -0.40 Feb 5.73 6.17 -0.44 Mar 5.44 5.98 -0.54 Apr 5.20 5.76 -0.56 May 4.74 5.33 -0.59 Jun 4.44 4.96 -0.52 Jul 4.08 4.64 -0.56 (Portfolio Ageing w/o SLGSsI as 90 80- 70 - e60 O 50 40 o • 30 - a 20 10- 0. Tx 8 0 2 0 0 1 1 <1M <2M <3M <6M <1YR <2YR <3YR <4YR i ICredit Quality \ (Asset Allocation' Federal Agency 0% U.S. Treasury 12% IPerformance I AA A 0% 0% Al/P1 0% Unrated 42% Money Market Funds 52% Aug00 Sep Oct Nov Dec Jan01 Feb Mar Ap May un Jul D LAIF Yield © RDA Yield i • Standard and Poor's Credit Ratings • LAIF and HighMark Sweep Page 5 of 8 • Palm Desert Redevelopment Agency Portfolio Holdings 31 July 2001 Par Value I Issuer U.S. Treasury - Coupon $ 176,000 UNITED STATES TREASURY $ 181,000 UNITED STATES TREASURY $ 422,700 UNITED STATES TREASURY $ 405,200 UNITED STATES TREASURY $ 9,100 UNITED STATES TREASURY $ 1,547,000 UNITED STATES TREASURY $ 2,741,000 Subtotals U.S. Treasury - Discount $ 198,000 UNITED STATES TREASURY 181,000 UNITED STATES TREASURY 7,143,000 UNITED STATES TREASURY 532,400 UNITED STATES TREASURY 344,600 UNITED STATES TREASURY 8,399,000 Subtotals LGIPs $ 30,000,000 L.A.I.F. I $ 30,000,000 Subtotals Pooled Funds - AIM $ 37,200,138 PRIME PORTFOLIO $ 37,200,138 Subtotals Pooled Funds - HighMark $ 4,655,168 HOUSING AUTH CHK SWEEP $ 194,143 HOUSING AUTH TRT SWEEP $ 4,849,310 Subtotals SLGs-Coupon $ 5,686,827 UNITED STATES TREASURY $ 60,742,835 UNITED STATES TREASURY $ 66,429,662 Subtotals Market Ratings I Coupon I MaturityI Cost I YTM Price I Value Moody'sl S & P 6.50 8/31/01 6.25 2/28/02 6.25 8/31/02 6.25 8/31/02 6.25 8/31/02 6.38 9/30/01 4.70 2/15/03 4.63 2/15/04 4.59 8/15/04 4.66 8/15/03 4.66 8/15/03 $ 176,142 $ 181,757 $ 425,965 $ 408,330 $ 9,170 $ 1,548,623 5.40 100.22 $ 176,385 Aaa AAA 5.43 101.59 $ 183,885 Aaa AAA 5.43 102.84 $ 434,721 Aaa AAA 5.43 102.84 $ 416,723 Aaa AAA 5.43 102.84 $ 9,359 Aaa AAA 5.66 100.44 $ 1,553,768 Aaa AAA I $ 2,749,987 5.56 I $ 2,774,840 $ 150,793 $ 130,168 $ 4,989,671 $ 394,279 $ 255,200 5.45 5.51 5.54 5.47 5.47 I $ 5,920,112 5.53 94.60 90.46 88.34 92.61 92.61 $ 187,310 $ 163,727 $ 6,310,482 $ 493,072 $ 319,144 I $ 7,473,735 Aaa Aaa Aaa Aaa Aaa 0.00 8/1/01 $ 30,000,000 4.64 100.00 $ 30,000,000 NR $ 30,000,000 4.64 $ 30,000,000 0.00 8/1/01 $ 37,200,138 3.46 100.00 $ 37,200,138 Aaa $ 37,200,138 3.46 $ 37,200,138 0.00 8/1/01 $ 4,655,168 2.79 100.00 $ 4,655,168 0.00 8/1/01 $ 194,143 2.79 100.00 $ 194,143 $ 4,849,310 2.79 $ 4,849,310 3.17 4/1/02 $ 5,686,827 3.17 100.00 $ 5,686,827 6.09 4/18/02 $ 60,742,835 6.09 100.00 $ 60,742,835 $ 66,429,662 5.84 $ 66,429,662 NR NR Aaa Aaa AAA MA AAA AAA MA NR NR NR AAA AAA NR = Not Rated Page 6 of 8 • Palm Desert Redevelopment Agency Portfolio Holdings 31 July 2001 Market 1 Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price 1 Value + Moody's! S & P SLGSs - Time $ 12,656 UNITED STATES TREASURY 0.00 9/20/01 $ 12,656 0.00 100.00 $ 12,656 Aaa AAA $ 88,827 UNITED STATES TREASURY 0.00 10/1/01 $ 88,827 0.00 100.00 $ 88,827 Aaa AAA $ 12,656 UNITED STATES TREASURY 0.00 3/14/02 $ 12,656 0.00 100.00 $ 12,656 Aaa AAA I $ 114,139 Subtotals $ 114,139 0.00 $ 114,139 Total Investments $ 149,733,249 $ 147,263,349 $ 148,841,825 Cash $ 31,248 HOUSING AUTH CHECKING 0.00 8/1/01 $ 31,248 0.00 100.00 $ 31,248 NR NR $ 51,725 HOUSING AUTH TRUST 0.00 8/1/01 $ 51,725 0.00 100,00 $ 51,725 NR NR $ 82,973 Subtotals $ 82,973 0.00 $ 82,973 Total Cash and Investments $ 149,816,222 $ 147,346,322 4.87 $ 148,924,798 NR = Not Rated Page 7 of 8 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert ('City') and the Palm Desert Redevelopment Agency ('RDA') are governed by federal, state, and local law. The City Treasurer's 'Statement of Investment Policy" is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 July 2001, the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority). Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectully submitted on 13 August 2001, PauLS. 6(4sons c.c.M-r. " City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS I California Government Code I City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality % of City % of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 13601(e); Fede&rat`Agehdiesr ; <<5 Years" '153601(fy-;;Bankerss Acceptances 18O;oayi '53601(0), .- ^Commeicial;Paeet :'- 270Zaye 53601'(h)). "'_L`Negotiable.CDs ::r :15';Yeaisa 53601(i) Repos 1 Year 53601(i) ) Reverse Repos 92 Days i53601-(j).; "''Mediri'm-,TeimN&tis,1 `5Yeais; i53601(k).');' .:Mutual Funds,;,:,;._ :_90 Days;, 53601(1) j Trust Indenture Debt 53601(m) Secured Bank Deposits I 5 Years 53601(n) Mortgage -Backed Il 5 Years Securities 16429 ,^ " . ,. LAIF ` „ 53601(a). Palm Desert Bonds 5 Years No Limit Not Authorized p) 53601(b)i',- ,U:S'.,Treasuriee:.) ;, "-S:Y,eats" ;No"L`iniit, F • ;: "°5`Nears:;;{ NaLimit'�":- <;j, 13.,1,°Io". {; r:5'.9%^, 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized No'L'imit; xy1. ,q"•.;, : _5'Years " , '30%;r: y ::': j,a,:11.4go: ": 0:0%L w", -, 180'Days ;?•40%, { A t&P-ti ,vr0.0%.k'i ; 0:0% V?-j 270;Days ,15/30% A.1,or P-1 I r� 0:0%:ea 1,; ;30%:g"` ''l€: `: ' . 'i 5,Y,ear§ „ r•'•: 30%;-i4l'1 AAA&:Aa:l'° ;0:0%nn °';F0:0130.1 No Limit Not Authorized 20% Not Authorized ,a;u:30%Sec :'AAAT&°Aaal f'90,Days4,',, ;20%i'A.''AAA &-Aaa .a 29 8% iCr',t28:6%T*{ Not Authorized No Limit Not Authorized 20% A (Issuer) & Not Authorized AA (Security)! ,No'Lithe, 1 81.5% 1 54.8% (1) The Ci y loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. * Certified California Municipal Treasurer Page 8 of 8 600PLitiffi, SS • 472.1 C+tyaand^Re%rlevelopmerit;Agen' "12 toe: .wxtt * .f^3 4't r F , ..�^ W:X a P u• it �& s"`. COMPL'1„remh►NCL ANALYSIS AND)INVESTMENT:74. 4C August2002 - M."tz rs s4 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Investment Manager Treasurer's Commentary In August, the Federal Open Market Committee ("FOMC") reduced the Federal Funds Rate and the Discount Rate by 25 basis points ("bp") to 3.50% and 3.00%, respectively. This was the seventh rate cut this year. Over the last eight months, the Federal Funds Rate has been reduced by 300bp. The FOMC continues to view recession as the primary threat, based upon a slowing global economy and weakening U.S. profits and capital spending. The Dow Jones Industrial Average fell below 10,000 following the release of statistical data that showed a decline in consumer spending, a rise in unemployment benefits, and weakness in the manufacturing sector. On the technology -weighted Nasdaq Exchange, losses over the last four quarters have erased five years's worth of profits. S&P and Moody's put Ford and GM on negative credit watch fora possible downgrade, based upon concems over long-term • profit erosion due to competitive pressures. Ford and GM may receive a one -notch credit downgrade in November if their third-quarter earnings are lower than expected. Fifty-six major corporations have been downgraded since January. Bond yields were depressed due to capital flight from stocks to bonds. The Treasury Yield Curve has been mildly downward - sloping until early Fall 2002, when it becomes sharply upward -sloping. Separately, Japan has refused to allow the International Monetary Fund to inspect Japanese banks. The next FOMC meeting will be on 2 October. Dollars in Thousands rotes Qilvort5 C..C..At r. Treasurer PORTFOLIO STATISTICS AUG-01 JUL-01 JUN-01 MAY-01 APR-01 MAR-01 CITY Month -End Book Value $ 173,791 $ 173,918 $ 180,988 $ 191,248 $ 167,410 $ 160,826 Month -End Market Value $ 176,049 $ 176,067 $ 182,946 $ 193,211 $ 169,128 $ 162,839 Paper Gain (Loss) $ 2,258 $ 2,149 $ 1,958 $ 1,963 $ 1,718 $ 2,013 Interest Earnings $ 712 $ 691 $ 751 $ 744 $ 746 $ 795 Yield -To -Maturity 4.42% 4.53% 4.71% 4.91% 5.46% 5.72% Weighted Maturity (Days) 354 354 356 341 383 404 Effective Duration 0.31 0.29 0.30 0.30 0.33 0.37 RDA Month -End Book Value $ 146,689 $ 147,263 $ 159,400 $ 147,250 $ 154,800 $ 150,027 Month -End Market Value $ 148,327 $ 148,842 $ 160,838 $ 148,678 $ 156,229 $ 151,398 Paper Gain (Loss) $ 1,638 $ 1,579 $ 1,438 $ 1,428 $ 1,429 $ 1,371 Interest Earnings $ 604 $ 624 $ 659 $ 679 $ 741 $ 668 Yield -To -Maturity 3.96% 4.08% 4.44% 4.74% 5.20% 5.44% Weighted Maturity (Days) 904 902 853 922 913 972 Effective Duration 0.41 0.45 0.50 0.58 0.58 0.65 Dollars in Thousands Aaeina interval <1M <2M < 3M <6M <1YR <2YR <3YR <4YR <5YR >5YR Total: City of Palm Desert - Portfolio Characteristics 31 August 2001 Market Value $ 36,112 5,957 4,987 10,143 19,072 9,234 $ 85,505 Ratings' Market Value AAA $ 81,218 AA 4,099 A 4,091 Al/P1 15,059 Unrated " 71,118 Total: $ 175,585 Sector Market Value U.S. Treasury $ 24,356 Federal Agency 27,110 Money Market Funds 34,765 Commercial Paper 15,059 Corporate Bonds 13,292 LAIF 30,000 RDA Loan 31,003 Total: $ 175,585 1 'General Fund Ageing! 60 45 - 0 a - t 15- 0 42 < 1M 12 7 6 n c2M <3M <6M 'Credit Quality, AAA 11 46% Unrated" 41% 'Asset Allocation, Money Market Funds 19°h Federal Agency 15% Month City Yield LAIF Yield Variance 'Pertormancel Sep00 6.14 6.50 -0.36 Oct 6.15 6.52 -0.37 Nov 6.20 6.54 -0.34 Dec 6.22 6.54 -0.32 Jan01 6.10 6.37 -0.27 -e 6.0 - Is Feb 5.86 6.17 -0.31 B 5.5 - Mar 5.72 5.98 -0.26 5.0 - Apr 5.46 5.76 -0.30 4.5 - May 4,91 5.33 -0.42 4.0 - Jun 4.71 4.96 -0.25 Sep00 Oct Nov Dec Jan01 Feb Mar Ap May J n Jul Aug U.S. Treasury 14% AA 2% A 2% Al/Pi 9% 22 < 1 YR Commercial Paper Corporate Bonds 8% LAIF 17% RDA Loan 18% 11 <2YR Jul 4.53 4.64 -0.11 Aug 4.42 4.50 -0.08 7.0 6.5 - I D LAIF Yield © City Yield Standard and Poor's Credit Ratings LAIF, HighMark Sweep, and City Loan to RDA Page 2 of 8 City of Palm Desert Portfolio Holdings 31 August 2001 Market Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody'si S & P Medium -Term Notes $ 1,000,000 ASSOCIATES 6.50 8/15/02 $ 1,019,459 4.38 102.71 $ 1,027,068 Aa3 AA- $ 2,000,000 DU PONT 6.75 10/15/02 $ 1,998,646 6.81 103.20 $ 2,063,982 Aa3 AA- $ 2,000,000 GENERAL ELECTRIC 5.18 2/1/02 $ 1,997,723 5.48 100.72 $ 2,014,416 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.52 10/8/02 $ 1,994,347 6.80 102.94 $ 2,058,782 Aaa AAA $ 1,000,000 GENERAL ELECTRIC 6.65 9/3/02 $ 1,022,123 4.36 102.86 $ 1,028,623 Aaa AAA '$ 4,000,000 GENERAL MOTORS 5.95 3/14/03 $ 3,999,768 5.94 102.26 $ 4,090,596 A2 A $ 1,000,000 MERRILL LYNCH 5.71 1/15/02 $ 1,006,075 4.03 100.80 $ 1,008,045 Aa3 AA- $ 13,000,000 Subtotals $ 13,038,141 5.74 $ 13,291,511 Commercial Paper - Discount $ 2,000,000 CIT GROUP 3.52 10/15/01 $ 1,985,529 3.59 99.56 $ 1,991,250 P-1 A-1 $ 2,000,000 COCA -COLA 3.54 10/12/01 $ 1,986,037 3.61 99.59 $ 1,991,833 P-1 A-1 $ 2,115,000 FORD 3.45 12/7/01 $ 2,093,312 3.53 99.09 $ 2,095,655 P-1 A-1 $ 4,014,000 GENERAL ELECTRIC 3.64 9/7/01 $ 3,999,389 3.70 99.93 $ 4,011,245 P-1 A1+ $ 2,000,000 GOLDMAN SACHS 3.74 10/12/01 $ 1,985,248 3.82 99.59 $ 1,991,833 P-1 A-1+ $ 3,000,000 HARVARD UNIVERSITY 3.34 11/20/01 $ 2,974,950 3.41 99.24 $ 2,977,320 P-1 A-1+ $ 15,129,000 Subtotals $ 15,024,465 3.61 $ 15,059,136 Agencies - Callable $ 2,000,000 FEDERAL HOME LOAN BANK 5.56 11/26/01 $ 2,000,000 5.56 100.47 $ 2,009,375 $ 2,000,000 Subtotals $ 2,000,000 5.56 $ 2,009,375 Agencies - Coupon $ 2,000,000 FED HOME LOAN BANK 5.13 2/26/02 $ 1,985,831 6.68 100.81 $ 965,000 FED HOME LOAN BANK 6.75 2/15/02 $ 976,751 3.98 101.47 $ 4,000,000 FED HOME LOAN BANK 3.50 8/6/02 $ 3,994,305 3.66 100.03 $ 2,000,000 FED HOME LOAN MTG CORP 6.63 8/15/02 $ 1,998,324 6.72 102.91 $ 2,000,000 FED NATIONAL MTG ASSOC 6.63 1/15/02 $ 1,999,438 6.70 101.16 $ 2,000,000 FED NATIONAL MTG ASSOC 5.38 3/15/02 $ 2,014,099 3.99 101.03 $ 2,000,000 FED NATIONAL MTG ASSOC 6.75 8/15/02 $ 2,045,081 4.29 103.03 $ 14,965,000 Subtotals $ 15,013,828 5.02 1 Aaa AAA 1 $ 2,016,250 Aaa AAA $ 979,173 Aaa AAA $ 4,001,250 Aaa AAA $ 2,058,125 Aaa AAA $ 2,023,125 Aaa AAA $ 2,020,625 Aaa AAA $ 2,060,625 Aaa AAA $ 15,159,173 Agencies - Discount $ 2,071,000 FED HOME LOAN BANK 3.46 7/30/02 $ 1,999,741 3.65 96.99 $ 2,008,663 Aaa AAA $ 4,000,000 FED HOME LOAN MTG CORP 3.77 3/28/02 $ 3,873,914 3.98 98.13 $ 3,925,200 Aaa AAA $ 2,000,000 FED MTG DISCOUNT NOTE 3.56 9/13/01 $ 1,992,484 3.62 99.91 $ 1,998,200 Aaa AAA $ 2,064,000 FED MTG DISCOUNT NOTE 3.51 6/20/02 $ 2,000,006 3.70 97.37 $ 2,009,717 Aaa AAA $ 10,135,000 Subtotals $ 9,866,146 3.79 $ 9,941,780 U.S. Treasury - Coupon $ 1,340,000 UNITED STATES TREASURY 6.25 8/31/02 $ 1,344,686 5.84 102.84 $ 1,378,106 Aaa AAA $ 13,000 UNITED STATES TREASURY 6.25 2/28/02 $ 13,023 5.84 101.44 $ 13,187 Aaa AAA $ 300,000 UNITED STATES TREASURY 6.63 3/31/02 $ 301,171 5.85 101.88 $ 305,625 Aaa AAA $ 15,194,000 UNITED STATES TREASURY 5.88 9/30/02 $ 15,198,266 5.84 102.66 $ 15,597,591 Aaa AAA $ 911,000 UNITED STATES TREASURY 6.38 9/30/01 $ 911,342 5.84 100.19 $ 912,708 Aaa AAA I $ 17,758,000 Subtotals $ 17,768,488 5.84 $ 18,207,217 1 I I NR = Not Rated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 August 2001 Market I Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM I Price I Value I Moody'sl S & P U.S. Treasury - Discount $ 166,000 UNITED STATES TREASURY 5.08 5/15/02 $ 128,677 5.84 97.81 $ 162,363 Aaa AAA $ 6,170,000 UNITED STATES TREASURY 5.03 8/15/02 $ 4,718,446 5.82 97.02 $ 5,986,380 Aaa AAA $ 6,336,000 Subtotals $ 4,847,122 5.82 $ 6,148,743 LGIPs $ 30,000,000 L.A.I.F. 0.00 9/1/01 $ 30,000,000 4.50 100.00 $ 30,000,000 NR NR $ 30,000,000 Subtotals $ 30,000,000 4.50 $ 30,000,000 Pooled Funds - AIM $ 24,649,850 PRIME PORTFOLIO 0.00 9/1/01 $ 24,649,850 3.32 100.00 $ 24,649,850 Aaa AAA $ 24,649,850 Subtotals $ 24,649,850 3.32 $ 24,649,850 Pooled Funds - HighMark $ 8,770,626 CITY MAIN SWEEP 0.00 9/1/01 $ 8,770,626 2.66 100.00 $ 8,770,626 NR NR $ 158,244 DESERT WILLOW SWEEP 0.00 9/1/01 $ 158,244 2.66 100.00 $ 158,244 NR NR $ 1,185,866 OFFICE COMPLEX SWEEP 0.00 9/1/01 $ 1,185,866 2.66 100.00 $ 1,185,866 NR NR $ 10,114,736 Subtotals $ 10,114,736 2.66 $ 10,114,736 City Loan to RDA $ 31,002,917 CITY OF PALM DESERT 0.00 8/31/31 $ 31,002,917 4.50 100.00 $ 31,002,917 NR NR $ 31,002,917 Subtotals $ 31,002,917 4.50 $ 31,002,917 SLGSs - Time $ 430,000 UNITED STATES TREASURY 0.00 10/1/02 $ 430,000 0.00 100.00 $ 430,000 Aaa AAA $ 35,000 UNITED STATES TREASURY 0.00 9/2/02 $ 35,000 0.00 100.00 $ 35,000 Aaa AAA $ 465,000 Subtotals $ 465,000 $ 465,000 Total Investments $ 175,555,503 $ 173,790,693 4.42 $ 176,049,438 Cash $ 86,824 CITY MAIN CHKG 0.00 9/1/01 $ 86,824 0.00 100.00 $ 86,824 NR NR $ 122,896 DESERT WILLOW CHKG 0.00 9/1/01 $ 122,896 0.00 100.00 $ 122,896 NR NR $ 51,259 OFFICECOMPLEXCHKG 0.00 9/1/01 $ 51,259 0.00 100.00 $ 51,259 NR NR $ 28,949 OFFICE COMPLEX TRUST 0.00 9/1/01 $ 28,949 0.00 100.00 $ 28,949 NR NR $ 48,330 RECREATIONAL FAC CHKG 0.00 9/1/01 $ 48,330 0.00 100.00 $ 48,330 NR NR $ 338,259 Subtotals $ 338,259 $ 338,259 I Accrued Interest at Purchase $ 37,288 $ 37,288 Total Cash and Investments $ 175,893,762 $ 174,166,240 $ 176,424,985 NR = Not Rated Page 4 of 8 Dollars in Thousands Aaeina Interval <1M <2M <3M c 6M <1YR < 2YR < 3YR <4YR < 5YR >5YR Total: Palm Desert Redevelopment Agency - Portfolio Characteristics 31 August 2001 Market Value $ 73,267 • 'Portfolio Ageing w/o SLGSsI 100 90 90 Yi 80• a" 1,045 70 999 _o 60 - 6,474 ° 5o 40- - a 30' 9r 208 10 - , 0 0 0 1 1 0 $ 81,785 <1M <2M <3M <6M <1YR <2YR <3YR <4YR Quality * Market Value AAA $ 46,818 AA A - A1/P1 Unrated " 71,652 Total: $ 118,470 Sector Market Value U.S. Treasury $ 10,131 Federal Agency - Money Market Funds 41,654 LAIF 30,000 Commercial Paper - Corporate Bonds Total: $ 81,785 Month RDA Yield LAIF Yield Variance Sep00 6.04 6.50 -0.46 Oct 6.03 6.52 -0.49 Nov 6.02 6.54 -0.52 Dec 6.08 6.54 -0.46 Jan01 5.97 6.37 -0.40 Feb 5.73 6.17 -0.44 Mar 5.44 5.98 -0.54 Apr 5.20 5.76 -0.56 May 4.74 5.33 -0.59 Jun 4.44 4.96 -0.52 Jul 4.08 4.64 -0.56 Aug 3.96 4.50 -0.54 'Credit Qualityl 'Asset Allocation` Federal Agency 0% U.S. Treasury 12% 'Performance, 7.0 6.5 - 6.0- 5.5- '3 5.0 - S 4.5 - 4.0 3.5 Unrated ** 60% Money Market Funds 51% 37% Sep00 Oct Nov Dec Jan01 Feb Mar Ap May Jun Jul Aug I O IAIF Yield O FtDA Yield Standard and Poor's Credit Ratings ** LAW and HighMark Sweep Page 5 of 8 Par Value I Issuer Palm Desert Redevelopment Agency Portfolio Holdings 31 August 2001 I Coupon I Maturity I Cost U.S. Treasury - Coupon $ 181,000 UNITED STATES TREASURY 6.25 2/28/02 $ 422,700 UNITED STATES TREASURY 6.25 8/31/02 $ 405,200 UNITED STATES TREASURY 6.25 8/31/02 $ 9,100 UNITED STATES TREASURY 6.25 8/31/02 $ 1,547,000 UNITED STATES TREASURY 6.38 9/30/01 $ 2,565,000 Subtotals U.S. Treasury - Discount $ 198,000 UNITED STATES TREASURY $ 181,000 $ 7,143,000 $ 532,400 $ 344,600 8,399,000 LGIPs $ 30,000,000 • $ 30,000,000 UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY Subtotals L.A.I.F. Subtotals Pooled Funds - AIM $ 36,687,162 PRIME PORTFOLIO $ 36,687,162 Subtotals Pooled Funds - HighMark $ 4,765,512 HOUSING AUTH CHK SWEEP $ 199,634 HOUSING AUTH TRT SWEEP $ 4,965,146 Subtotals SLGSs - Coupon $ 5,686,827 UNITED STATES TREASURY' $ 60,742,835 UNITED STATES TREASURY $ 66,429,662 Subtotals 4.70 4.63 4.59 4.66 4.66 2/15/03 2/15/04 8/15/04 8/15/03 8/15/03 $ 181,646 $ 425,709 $ 408,084 $ 9,165 $ 1,547,785 $ 2,572,388 $ 150,793 $ 130,168 $ 4,989,671 $ 394,279 $ 255,200 Market I YTM I Price I Value Ratings Moody's! S & P 5.43 101.44 $ 183,602 Aaa 5.43 102.84 $ 434,721 Aaa 5.43 102.84 $ 416,723 Aaa 5.43 102.84 $ 9,359 Aaa 5.66 100.19 $ 1,549,901 Aaa 5.57 $ 2,594,305 5.45 5.51 5.54 5.47 5.47 $ 5,920,112 5.53 0.00 9/1/01 $ 30,000,000 0.00 95.08 91.20 89.12 93.20 93.20 $ 188,260 $ 165,081 $ 6,365,627 $ 496,218 $ 321,181 $ 7,536,367 Aaa Aaa Aaa Aaa Aaa MA AAA AAA AAA AAA AAA MA AAA AM AAA 1 4.50 100.00 $ 30,000,000 NR NR $ 30,000,000 4.50 $ 36,687,162 $ 30,000,000 3.32 100.00 $ 36,687,162 Aaa AAA $ 36,687,162 3.32 0.00 9/1/01 $ 4,765,512 0.00 9/1/01 $ 199,634 $ 36,687,162 2.66 100.00 $ 4,765,512 2.66 100.00 $ 199,634 $ 4,965,146 2.66 3.17 4/1/02 $ 5,686,827 6.09 4/18/02 $ 60,742,835 $ 4,965,146 3.17 100.00 $ 5,686,827 6.09 100.00 $ 60,742,835 $ 66,429,662 5.84 $ 66,429,662 NR NR Aaa Aaa 1 NR NR 1 AAA AAA NR = Not Rated Page 6 of 8 I Par Value I Issuer Palm Desert Redevelopment Agency Portfolio Holdings 31 August 2001 SLGSs - Time $ 12,656 UNITED STATES TREASURY $ 88,827 UNITED STATES TREASURY $ 12,656 UNITED STATES TREASURY I 114,139 Total Investments $149,160,108 Subtotals Cash $ 57,353 HOUSING AUTH CHECKING $ 53,268 HOUSING AUTH TRUST I 110,621 Subtotals Total Cash and Investments $ 149,270,729 Market I Ratings I Coupon I Maturity I Cost I YTM I Price I Value I Moody's' S & P 0.00 0.00 0.00 9/20/01 $ 10/1/01 $ 3/14/02 $ 12,656 0.00 100.00 $ 88,827 0.00 100.00 $ 12,656 0.00 100.00 $ $ 114,139 $146,688,608 3.96 0.00 9/1/01 $ 57,353 0.00 0.00 9/1/01 $ 53,268 0.00 $ 110,621 $ 146,799,229 12,656 88,827 12,656 $ 114,139 $148,326,780 100.00 $ 57,353 100.00 $ 53,268 $ 110,621 $ 148,437,401 Aaa Aaa Aaa NR NR AAA AAA AAA NR NR NR = Not Rated Page 7 of 8 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert ("City') and the Palm Desert Redevelopment Agency ('RDA') are governed by federal, state, and local law. The City Treasurer's 'Statement of Investment Policy' is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 August 2001, the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority). Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectully submitted on 13 September 2001, >a s Q c.c.M r. City Treasurer CA Govt Code Investment Category 53601(a) ji Palm Desert Bonds ;53601'(b) a >_^;U:SFrTreasuries -""' 53601(c) CA State Debt 53601(d) CA Local Agency Debt ;53601(e)r ;;t:Fe'deral-A ehoie"s'4"r'" •53601(f)" ;Barikeis'e'Aaeoptand`ei; 53601.0) ;4;;;Coiriii erciaf Paper ', c .,53601(h)'; -T: 4Negotiable 53601(i) Repos 53601(i) Reverse Repos SUMMARY OF AUTHORIZED INVESTMENTS II California Government Code Maximum Maximum Quality Maturity Limit S&P/Mdys 5 Years No Limit 'S Yearsr `Notiiriit: 5 Years No Limit 5 Years No Limit City Investment Policy Maximum Maximum Quality % of City % of RDA Maturity Limit S&P/Mdys Portfolio Portfolio „,51Years ;; :`'No Lihtitu ° r':1 <st. ': 'i5'_Years;1, :180.Da i, ; ''40%.;'t'a: °;(,0te, i- P180'Dayi. ;270„Days ;:.15/30%'i, , At1 or P,-1 2701Days' 15::Year"s 30%`i?`: !1,->`';;;;;, ;',0 !t?,5,.Yeais 5 1 Year No Limit 92 Days 20% `53601(j):1-14Mediti'rit Tetm''Notis,, f5,Yeaies .»: 30%e;z ;. r.' . Ai ti% _;;SXYeati.".y30%t "s«A"t' '"I -� 75%0:0%. 53601ffiy : Mufual,Furids I :90 Days: '90/Dayikl,.. ;20%;%-AAA &Aaa'20.0%7L52814% . 53601(1) I Trust lndenture Debt Not Authorized 53601(m) I Secured Bank Deposits 1 5 Years No Limit Not Authorized 53601(n) I Mortgage -Backed 15 Years Securities 20% A (Issuer) & Not Authorized AA (Security .a,LAIFrfr\-^ ram.:.'+ �.:�s�'.,R:, a,No,Liinit:M,�'AUte>IF:a;;+ru'+2'I1No'Limih'I?a"Tql.A7'3%s I_.20i5%'.;:. 72.1% 54.6% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. Not Authorized (V Not Authorized Not Authorized ,."14:39o"'1,J 93:0criV, 0:O% (J'.11,10:0%sr; ':15/30%'LA�1,;orP=1 ;[=0.o%.;J:r0.0°/ua,: << :':AA''VAa `:1Y0.0%1I°-'"'-0:0%d., Not Authorized Not Authorized Certified California Municipal Treasurer Page 8 of 8 CITY OF PALM DESERT SECURITIES PURCHASED -- AUGUST 2001 }p 1- 1 Z U- 0 0 0 0 0 0 0 0 U m K W O K MORGAN STANLEY WELLS FARGO MERRILL LYNCH MORGAN STANLEY SMITH BARNEY BANK OF AMERICA MORGAN STANLEY SMITH BARNEY WELLS FARGO BANK OF AMERICA O N (NI O O O O 0O 9 NO 9 9 t' i- C U t U a • U a c I-- Q Z 0 0 O co 0 (n ' 7 < 6 n O 6 O 2 N CDM O N 2o 0 o 0 0 0 0 0 ( 0 } M (f) h N CD a (NO 0 (00 o M M (h M fl (+) M M M M o ID M • a CO g V 0 CO CO ( 0) N O. N M M • h c0 0 N J V LO (O W M N O) M O O Q y (- co co coO) O) O) O) 0) 0 I- O 0) a) 0) o) W 0 0) at 0) O O OO U N - - . M N. 0)(V 16 N 69 EA EA EA EA 69 EA EA EA EA IA ( i co MO N (CD CD(NO (OIt) CO ▪ (7) a 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0 0 0 0 0 0 0 0 0 0 W o O O O 0 O 0 O. 0 0 6 6 6 O e{ u O O o O co0 0 h 0 (o Qa Q o O 0 0 0 0 0 0 0 M N N N aT N N N V' N. EA EA EA 69 EA 69 69 EA EA EC, m m r r r N (0 co co o z a a a a a — co co ca co mOF K W N to - o a — m • a a a a a a a O O o O 0 0 0 0 U U Z Z Z Z 0 0 O 0 HARVARD UNIVERSITY CIT GROUP COCA -COLA GOLDMAN SACHS GENERAL ELECTRIC FORD MOTOR FED MORTG CORP FED HOME LOAN BANK FED HOME LOAN BANK FED MORTG CORP $ 25,264,000 0 0 a 0 Z d azz E m c c H e a o E U) 0 0 J_ .1. E 00 d F p 11 U N N II II d Z Z H O 0 0 2 N M V (o co O O 0 it t3 \\{ o 0 0 q a> N O CO N N (O O O N 2 obi" N 1po• Cl a.f N N N u E nz =° c do L 0 0. `u 0 U m a 0 C 0 0 Investment # September 2001 Subtotal 3 Run Date 09/052001 -15 13 CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM To: Investment and Finance Committee From: Paul S. Gibson, C.C.M.T., City Treasurer Date: September 5, 2001 Subject: ENACTMENT OF AB 609 (KELLEY) On 13 July, Governor Davis signed AB 609 into law (Chapter 57, Statutes of 2001). The City of Palm Desert originated and sponsored this legislation. Assemblyman David Kelley introduced it. Through an unprecedented alliance between Palm Desert and the County Treasurers Association, AB 609 evolved into a landmark reform bill. AB 609 passed through the committees and the floors of both houses without a single opposition vote. The voting record was as follows: ➢ Assembly Committee on Banking and Finance 11-0 (Pass) ➢ Assembly Committee on Local Government 11-0 (Pass) ➢ Assembly Floor 75-0 (Pass) ➢ Senate Committee on Local Government 5-0 (Pass) ➢ Senate Floor 37-0 (Pass) Thomas Jeffrey travelled to Sacramento to testify on behalf of the City at all committee hearings. Lobbyist Anthony Gonsalves provided critical assistance in moving the bill through the committees. The registered support for AB 609 was as follows: ➢ Sponsor: City of Palm Desert ➢ Co -Sponsor: California Association of County Treasurers & Tax Collectors ➢ Support: Association of California Water Agencies California Bankers Association California Credit Union League East Bay Municipal Utility District Orange County Sanitation District Orange County Treasurer -Tax Collector There was no registered opposition. AB 609 had bipartisan support. Senator Tom Torlakson (D-Antioch), Chairman of the Senate Committee on Local Government, carried the bill on the Senate Floor. H:14effrey\Word 2000\MEMORANDA\FINANCE COMMITTEEIAB 609 ENACTMENT.dot Effective 1 January 2002, AB 609 will change the California Government Code ("Code") in the following ways: ➢ Commercial paper will have a maximum portfolio concentration limit of 25 percent. The current system of dual, sliding maximum concentration limits (15% or 30% if a portfolio weighted -average maturity requirement of 31 days or less is met) will be eliminated. This will align California with the other 49 states. ➢ Commercial paper and bankers's acceptances will have maximum maturities of 270 days and 180 days, respectively. Previously, the maximum maturities of these securities had been reversed due to a drafting error in the Code. As a result of AB 609, local agencies will invest hundreds of millions of additional dollars in commercial paper in order to take advantage of the 90 days that has been added to the commercial paper maturity limit. ➢ The City of San Francisco will be reclassified as a county for purposes of commercial paper purchases. ➢ Only one list of authorized investments for local agencies will be in the Code. A second conflicting list will be eliminated. ➢ Local agencies will be able to do reverse repurchase agreements with banks that are not primary securities dealers. Current law limits such transactions to banks that are primary securities dealers (one of 31 world -class investment firms that are authorized to buy securities directly from the U.S. Treasury). ➢ Local agency investment pools (the 58 counties and the cities of Los Angeles and San Francisco) will have a Code section that is dedicated exclusively to regulations pertaining to their operation. ➢ School districts will no longer need to declare "surplus funds" in order to move their funds from county investment pools to private money market funds. ➢ Local agencies will be prohibited from buying certificates of deposit from a credit union if an official of the local agency sits on the credit union's board of directors. ➢ Various duplicate and/or inconsistent Code sections will be eliminated. I have enclosed a copy of the chaptered bill and of the bill analysis that the Senate Committee on Local Government did (Palm Desert received favorable mention). PSG:tj Enclosures: (1) Exhibit "A" (Bill Analysis by Senate Committee on Local Government) (2) Exhibit "B" (AB 609 Chaptered) cc: City Council H \qef rey9Nord 2000\MEMORANDA\FINANCE COMMITTEE\AB 609 ENACTMENTAot AB 609 Assembly Bill - Bill Analysis Page 1 of 4 EXHIBIT "A" SENATE LOC'AT, GOVERNMENT COMMITTEE Senator Tom Torlakson, Chair BILL NO: AB 609 AUTHOR: Kelley VERSION: 6/12/01 HEARING: 6/20/01 FISCAL: No CONSULTANT: Swenson LOCAL AGENCY INVESTMENTS Background and Existing Law Since 1913, state law has authorized local officials to invest a portion of their temporarily idle funds in a variety of financial instruments. Originally, state law limited the instruments to government bonds, but over time legislators expanded the list to include the more sophisticated instruments of modern financial times. As part of its oversight function, the Legislature limits the maturity lengths on many of these newer instruments, as well as the percentage of funds that a local agency can invest in a particular type of instrument. In 1978, lawmakers added commercial paper to the list of authorized instruments. Currently, cities and special districts may invest up to 15% of their surplus fund in commercial paper or up to 30% if all of the commercial paper in their portfolio has a dollar -weighted average maturity of 31 days or less. California is the only state to use this method. California counties abandoned this method with 1999 legislation and instead may invest up to 40% in commercial paper. Over time, the laws governing local agency investments have been amended to keep pace with changing investment opportunities and current market offerings. However amendments to the law have also introduced complexities and duplications that unnecessarily complicate public investing in California. The City of Palm Desert wants to update and condense the statutes on commercial paper as well as remove unnecessary duplications in the law regarding public investments. Proposed Law Assembly Bill 609 updates, cleans up, and eliminates AB 609 -- 6/12/01 -- Page 2 http:Mnfo.sen.ca.gov/pub/bill/asmiab_0601-0650/ab_609 cfa_20010614_161747_sen_comm... 7/18/01 AB 609 Assembly Bill - Bill Analysis Page 2 of 4 duplications in the Government Code sections addressing public investments. Specifically, AB 609: Changes the authorization for local agency investments from surplus money to money in the treasury not required for the immediate needs of the local agency. Revises the guidelines for investing in commercial paper for local agencies other than counties by eliminating the current dual percentage system and instead capping the total amount that a local agency other than a county invested in commercial paper at 25% of their money. Prohibits the legislative body of a local agency and the treasurer or other official having custody of the money from investing in negotiable certificates of deposit of a state or federal credit union if a member of the legislative body or other official or employee with decision making authority also serves on the board of directors or a committee of that credit union. Regarding negotiable certificates of deposit, adds those issued by savings associations and state or federal credit unions to the list of financial institutions in which local agencies may invest. Regarding repurchase agreements, changes the definition of eligible banks from a nationally or state -chartered bank that has a long-term, full service banking relationship with a local agency to one that has or has had a "significant banking relationship" with a local agency. AB 609 defines this relationship as any of the following activities of a bank: * Involvement in the creation, sale, purchase or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. * Financing of a local agency's activities. * Acceptance of a local agency's securities or funds as deposits. Deletes several obsolete provisions, repeals three duplicative code sections, and revises parallel provisions to incorporate cross references. AB 609 -- 6/12/01 -- Page 3 Comments 1. Update and clarify . The laws governing local agency investing need updating nearly every year to keep pace with http://info.sen.ca.gov/pub/bill/asm/ab_0601-0650/ab_609_cfa_20010614_ 161747_sen_comm... 7/18/01 AB 609 Assembly Bill - Bill Analysis Page 3 of 4 changing investment opportunities and current market offerings. Over time, these constant changes have introduced complexities and duplications that unnecessarily complicate public investing in California. AB 609 condenses, clarifies, and simplifies the code regarding both commercial paper and local agency investing in general. 2. Avoid chattering out AB 609 amends some of the same code sections that appear in both SB 66 (Battin) and SB 210 (Senate Local Government Committee). The author may wish to consider amendments to avoid chaptering out any conflicting provisions. AB 609 -- 6/12/01 -- Page 4 Assembly Actions Assembly Banking and Finance Committee:11-0 Assembly Local Government Committee:11-0 Assembly Floor: 75-0 Support and Opposition (6/14/) http://info.sen. ca.gov/pub/bill/asm/ab_0601-0650/ab_609_cfa_20010614_ 161747_sen_comm... 7/18/01 EXHIBIT "B" Assembly Bill No. 609 CHAPTER 57 An act to amend Sections 53601, 53601.5, 53601.6, and 53635 of, to repeal Sections 53601.2, 53631.5, and 53635.5 of, and to repeal and add Section 53635.2 of, the Government Code, relating to local agency funds. [Approved by Governor July 13, 2001. Filed with Secretary of State July 16, 2001 ] LEGISLATIVE COUNSEL'S DIGEST AB 609, Kelley. Local agency investments. Existing law authorizes the legislative body of a local agency having money in a sinking fund of, or surplus money in, its treasury not required for the immediate needs of the local agency to invest any portion of the money that it deems wise or expedient in specified securities and financial instruments. One of the types of eligible securities is commercial paper of prime quality as described. Existing law establishes essentially parallel provisions concerning the investment of local agency funds that belong to, or are in the custody of, the local agency. One of the authorized investments is negotiable certificates of deposit issued by a state or federal credit union. This bill instead would authorize the investment of a local agency's money in a sinking fund or money, rather than surplus money, in its treasury not required for its immediate needs. The bill would revise the definition of commercial paper. The bill would revise these parallel provisions to incorporate references to the other provisions, consolidate duplicate provisions, delete obsolete provisions, and make conforming changes. This bill would prohibit the legislative body of a local agency and the treasurer or other official having custody of the money from investing in negotiable certificates of deposit of a state or federal credit union if a member of the legislative body or any other specified city officer or employee also serves on the board of directors or certain committees of that credit union. The people of the State of Califonua do enact as follows: SECTION 1. Section 53601 of the Government Code is amended to read: 93 P Ch. 57 53601. This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having money in a sinking fund or money in its treasury not required for the immediate needs of the local agency may invest any portion of the money that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third -party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery. For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment: (a) Bonds issued by the local agency. including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the local agency or by a department, board. agency, or authority of the local agency. (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. 93 — 3 — Ch. 57 (d) Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (e) Federal agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States govemment-sponsored enterprises. (f) Bankers acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers acceptances may not exceed 180 days maturity or 40 percent of the agency's money that may be invested pursuant to this section. However, no more than 30 percent of the agency's money may be invested in the bankers acceptances of any one commercial bank pursuant to this section. This subdivision does not preclude a municipal utility district from investing any money in its treasury in any manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code). (g) Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by Moody's Investors Service, Inc. (Moody's), Standard and Poor's (S&P), or Fitch Financial Services, Inc. (Fitch). The corporation that issues the commercial paper shall be organized and operating within the United States, shall have total assets in excess of five hundred million dollars ($500,000,000), and shall issue debt. other than commercial paper, if any, that is rated "A" or higher by Moody's, S&P, or Fitch. Eligible commercial paper shall have a maximum maturity of 270 days or Tess. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their money in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single corporate issue. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. (h) Negotiable certificates of deposit issued by a nationally or state -chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state -licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the agency's money which may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come 93 Ch. 57 within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the money are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or any person with investment decision making authority in the administrative office manager's office, budget office, auditor -controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. (i) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of any securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. (2) Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: (A) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty by way of a 93 P — 5 — Ch. 57 reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security, may only be made upon prior approval of the governing body of the local agency and shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state -chartered bank that has or has had a significant banking relationship with a local agency. (B) For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank: (i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities. (iii) Acceptance of a local agency's securities or funds as deposits. (5) (A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third -party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book -entry account may be used for book -entry delivery. (B) "Securities," for purpose of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. (D) "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. 93 P Ch. 57 (E) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods. (F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (j) Medium -term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by a nationally recognized rating service. Purchases of medium -term notes shall not include other instruments authorized by this section and may not exceed 30 percent of the agency's surplus money which may be invested pursuant to this section. (k) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily. (2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations 93 — 7 — Ch. 57 authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) and with assets under management in excess of five hundred million dollars ($500,000,000). (4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge and shall not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. However, no more than 10 percent of the agency's surplus funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1). (/) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements. may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (m) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. (n) Any mortgage passthrough security, collateralized mortgage obligation, mortgage -backed or other pay -through bond, equipment 93 Ch. 57 lease -backed certificate, consumer receivable passthrough certificate, or consumer receivable -backed bond of a maximum of five years maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by a nationally recognized rating service and rated in a rating category of "AA" or its equivalent or better by a nationally recognized rating service. Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. SEC. 2. Section 53601.5 of the Government Code is amended to read: 53601.5. The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker -dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state -chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. SEC. 3. Section 53601.2 of the Government Code is repealed. SEC. 4. Section 53601.6 of the Government Code is amended to read 53601.6. (a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgage -derived, interest -only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (k) of Section 53601. SEC. 5. Section 53631.5 of the Government Code is repealed. SEC. 6. Section 53635 of the Govemment Code is amended to read: 53635. This section shall apply to a local agency that is a county, a city and a county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all 93 P Ch. 57 local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body. This section shall be interpreted in a manner that recognizes the distinct characteristics of investment pools and the distinct administrative burdens on managing and investing funds on a pooled basis pursuant to Article 6 (commencing with Section 27130) of Chapter 5 of Division 2 of Title 3. A local agency that is a county or a city and county may invest in commercial paper pursuant to subdivision (g) of Section 53601, except that the local agency shall be subject to the following concentration limits: (a) No more than 40 percent of the local agency's money may be invested in eligible commercial paper. (b) No more than 10 percent of the local agency's money that may be invested pursuant to this section may be invested in the outstanding commercial paper of any single corporate issuer. (c) No more than 10 percent of the outstanding commercial paper of any single corporate issuer may be purchased by the local agency. SEC. 7. Section 53635.2 of the Government Code is repealed. SEC. 8. Section 53635.2 is added to the Government Code, to read: 53635.2. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the treasurer or other official having legal custody of the money; or may be invested in the investments set forth in Section 53601. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate -income neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. Sections 53601.5 and 53601.6 shall apply to all investments that are acquired pursuant to this section. SEC. 9. Section 53635.5 of the Government Code is repealed. 0 93 P CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: Review the report on Agreed -Upon Procedures of Cash & Investments for the fiscal year June 30, 2001. Date: September 19, 2001 CONTENTS: Audit Report from Diehl, Evans & Company and Oscar Armijo. Recommendation: Staff recommends that the committee review the findings and file the report. Secondly, we recommend the report be forwarded to the City Council. Background: In March 2001 the Committee approve having a audit review of the cash and investments for the City, Redevelopment Agency and Housing Authority. Staff decided to have the auditor's perform the work at the same time as the regular audit. Attached is the report prepared by the audit firm showing each item they reviewed, their findings and City's response to each finding. Out of the 13 items reviewed 8 were with no findings and none of the findings were significant. The following is a summary of their findings: 1. One wire transfer was not listed in our wire transfer log. All the necessary approvals were done. 2. No copies of the Bank signature cards were on file for the most current change in City Council. Unfortunately, when we give the cards out to be signed they were sent directly to the bank and not back to Finance. In future, finance will sign after everyone else signs. Received a copy from the bank the day the auditors notice this missing. 3. No guidelines for handling the "Broker -Dealer re -qualifications in the Investment Policy. In the next re -draft of the policy we will insert language to deal with this item. Staff Report May , 2001 Page 2 4. Did not perform the test on 'safe harbor" for bond proceeds. Did not have any bond proceeds that require this testing. 5. Could not locate a file showing information on a money market account. File was located after auditor left and has since been shown to auditor. As you can see there were no material findings by the auditors. Staff will be available to answer any questions on this review. Submitted By: Paul S. Gibson Director of Finance/City Treasurer CITY OF PALM DESERT REPORT ON AGREED -UPON PROCEDURES REVIEW OF CASH AND INVESTMENTS AS OF, AND FOR THE YEAR ENDED, JUNE 30, 2001 Diehl , Faaum d &un panuj, ,L of CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 2121 ALTON PARKWAY, SUITE 100 IRVINE, CALIFORNIA 92606-4906 (949) 399-0600 CERTIFIED PUBLIC ACCOUNTANT a joint venture July 16, 2001 74-133 EL PASEO, SUITE 8 PALM DESERT, CALIFORNIA 92260 (760) 773-4078 INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES REVIEW OF CASH AND INVESTMENTS City Council City of Palm Desert Palm Desert, California We have performed the procedures enumerated herein, which were agreed to by the management of the City of Palm Desert (the City), solely to assist the City in assessing the adequacy of systems and procedures related to cash and investments as of, and for the year ended, June 30, 2001. This agreed -upon procedures engagement was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the management of the City of Palm Desert. Consequently, we make no representation regarding the sufficiency of the procedures described herein, either for the purpose for which this report has been requested or for any other purpose. We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the adequacy of systems and procedures related to cash and investments. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the City and is not intended to be and should not be used by anyone other than the City. Although defalcation and similar irregularities may occasionally be disclosed by this type of engagement, it is not designed for such purpose, and should not be relied upon to disclose fraud, should any exist. C�r+,y� , L V° -1- SUMMARY OF PROCEDURES AND FINDINGS Noted below is a summary of the procedures that we performed on the City's cash and investments as of, and for the year ended, June 30, 2001, together with our findings: 1. We reviewed all the investment transactions for the fiscal year, as listed in the "Trades" binder provided by the City, to verify that all transactions were in conformity with legal restrictions imposed by law, contract and the City's investment policy, including the limits on security types and concentrations. Findings: No exceptions were noted. 2. We reviewed all the investment transactions for the fiscal year, as listed in the "Trades" binder provided by the City, to determine if there was any evidence of questionable transactions related to the "churning" of investments, the use of a particular broker or any excessive premiums Findings: No exceptions were noted. 3. We reviewed the bank wire activity, based on 24 wires haphazardly selected from bank statements and a review of the outgoing wire log, to determine if both repetitive and nonrepetitive wires were initiated either by a City employee or by an authorized third party and verified by a second City employee. Findings: During our review, we noted that one wire transfer was not listed in the bank wire transactions log, but was listed on the City's check register and was properly approved. In addition, we noted two repetitive wire transfers that were not approved by someone independent of the initiator and were not verified independently by the bank. City Treasurer's Response: a. Out of 131 outgoing bank wires during the review period, one was inadvertently not recorded in the Outgoing Wire Log. This wire, however, was reported in the City's Check Register and subsequently reviewed by both Finance Department management and the City Council, attesting to the strength of the City's internal controls. b. With regard to the two repetitive wire transfers, the City had instructed Union Bank of California ("UBOC") that all outgoing wires were to be verified by a second, independent City management employee in the Finance Department. Apparently, UBOC's internal policy was to apply this verification procedure only to non -repetitive (one-time) bank wires. Consequently, when the City initiated two repetitive bank wires, UBOC failed to call the City for verification. Finance Department staff discovered this omission the next day when they received the UBOC Team Report on prior -day banking transactions. Finance Department management immediately notified UBOC, by telephone and in writing, that the verification policy applied to repetitive wires as well, and that if UBOC failed to comply with this policy, then the City would hold it legally accountable for any subsequent losses. Since that incident, there have been no further problems with verification of repetitive bank wires. -2- SUMMARY OF PROCEDURES AND FINDINGS (CONTINUED) 4. We reviewed all the investment transactions for the fiscal year, as listed in the "Trades" binder provided by the City, to determine if all executed trades were properly documented and that an independent third party cleared all trades. Findings: No exceptions were noted. 5. We reviewed all the investment transactions for the fiscal year, as listed in the "Trades" binder provided by the City, to verify that trades were authorized by an employee other than the City Investment Manager, and we reviewed the recording of amounts in the accounting records for fifteen trades by someone independent of the investment purchase function. Findings: No exceptions were noted. 6. We reviewed the sale of investments to determine if proper authorization was made in order to authorize a sale for any loss, and that the loss, if any, was reported to the Finance Committee. Findings: No exceptions were noted. 7. We reviewed to determine if all investment reports for the fiscal year were filed with the Finance Committee and the City Council. Findings: No exceptions were noted. 8. We reviewed the signature cards and the signatures made available by the City to verify if all bank cards were kept current and two signatures were required for each bank account. Findings: We noted that bank signature cards were not copied and maintained on file at the City after signatures were recorded. In connection with our review, the City requested and received copies of the signature cards from the bank. City Treasurer's Response: In November 2000, new bank signature cards were executed by account signers. These cards, however, were subsequently not returned to the Finance Department for photocopying, but were, instead, mailed directly to Union Bank. This is the first time that this has happened. This omission was not detected until this review because the only time that bank signature cards are referenced internally is when an account signer changes, and this did not happen during the period between the execution of the bank cards and the initiation of the review. In the future, the Finance Department will maintain a checklist for bank signature cards in order to ensure that they are returned for photocopying prior to mailing. The City uses Positive Pay to report on all checks that it issues, which helps to prevent any unauthorized checks from being processed. SUMMARY OF PROCEDURES AND FINDINGS (CONTINUED) 9. We reviewed to determine whether competitive offerings were conducted in a manner consistent with the City's Investment Policy and whether the policy conforms with IRS requirements that must be met in order to ensure a "safe harbor". Findings: During our review period, there were no bond proceeds. Thus, we did not perform this test. 10. We reviewed the qualifying information for the new broker added during the fiscal year and reviewed information submitted for five brokers who required re -qualification. Findings: Although the City treasurer has a "Broker Dealer Re -qualification Questionnaire", we noted that there was no guidance in the investment policy itself as to the annual items required for the re -certification of the brokers. We recommend the City update its investment policy to specify what broker re -qualification information is required. City Treasurer's Response: The City's "Statement of Investment Policy" will be amended this year to reflect the inclusion of required items. 11. We reviewed to determine if all cash and investments for all debt issues (based on a list compiled by City staff) was properly transferred during the transfer of trust assets from U. S. Bank to the Bank of New York. Findings: No exceptions were noted. 12. We reviewed the charges under the Bank of New York agreement for each debt issue and the Union Bank agreement to determine that administrative fees were properly charged for four applicable quarters. Findings: No exceptions were noted. 13. We reviewed the information maintained on file by the Investment Manager with respect to the qualification of three money market mutual funds. Findings: During our review, we noted that the Investment Manager could not locate a written record of qualifying information for the Federated Government Fund. City Treasurer's Response: This information was subsequently located in the City's files by Finance Department Personnel. -4- POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JUNE 2001 WITH JUNE 2000 (DOLLARS IN THOUSANDS) JUNE 2001 I I JUNE 2000 I I CHANGE I Average Daily Portfolio $ 49,609,736 $ 41,903,367 +7,706,369 Accrued Earnings $ 202,164 $ 218,070 -15,906 Effective Yield 4.958 6.349 -1.391 Average Life -Month End (In Days) 180 201 -21 Total Security Transactions Amount $ 31,683,048 $ 26,387,241 +5,295,807 Number 666 573 +93 Total Time Deposit Transactions Amount $ 1,771,300 $ 785,440 +985,860 Number 157 98 +59 Average Workday Investment Activity $ 1,593,064 $ 1,235,122 +357,942 Prescribed Demand Account Balances For Services $ 268,013 $ 176,368 +91,645 For Uncollected Funds $ 249,517 $ 336,764 -87,247 1 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) TYPE OF SECURITY Government Bills Bonds Notes Strips Total Government Federal Agency Coupons Certificates of Deposit Bank Notes Bankers' Acceptances Repurchases Federal Agency Discount Notes Time Deposits GNMAs Commercial Paper FHLMC Corporate Bonds Pooled Loans GF Loans Reversed Repurchases Total (All Types) AMOUNT 1,812,142 0 3,508,657 0 5,320,799 4,621,708 8,185,098 1,650,015 0 0 10,147,132 4,865,145 977 14,470,048 9,978 2,496,230 2,729,138 0 0 JUNE 30, 2001 PERCENTAGE CHANGE FROM PERCENT PRIOR MONTH 3.32 0.00 6.44 0.00 9.76 8.48 15.02 3.03 0.00 0.00 18.62 8.93 0.00 26.55 0.02 4.58 5.01 0.00 0 54,496,268 100.00 -.48 0.00 -.49 0.00 -.97 +1.48 -1.12 -1.20 0.00 0.00 -.22 -1.09 0.00 +2.85 0.00 -.34 +.20 0.00 0 J INVESTMENT ACTIVITY Pooled Money Other Time Deposits Totals JUNE 2001 NUMBER 666 38 157 AMOUNT $ 31,683,048 317,097 1,771,300 861 $ 33,771,445 PMIA Monthly Average Effective Yield 4.958 Year to Date Yield Last Day of Month 6.104 MAY 2001 NUMBER 477 33 149 AMOUNT $ 22,507,059 309,751 2,612,800 659 $ 25,429,610 5.328 6.222 2 W re 0 CW Ct W a. a o'� EL W� L O L. 000000000 00000 0 ✓ h m m h o0 00 m O u v 00 7 t-... ... S O O .-- Cl O 10 - 1D O 9 01 01 h CN 01 01 C O 9 CV E. 30 0] 2 .�. y a e M 00 01 00 00 rnN .-+ 10 O 00 O0 O 0 N 0 N e1' N M CO N N O' [� N o0 h a0 N �O O-- 0 N N "I' N CO 1/40 O N N h 10 .. O� 01 10 O� [� yA F ,M. N 7 fV -. N N N M Q 00 7 vl -. 7 1p M — 0 o >4 >4 an a a 0 CDa a b CI a e - N .O. 0 7 0 .-. C ovcrop o o -: O o o NI C 7 Cl a .g.4 W a m HI M 10 10 .. 01 H 0--O H 10 N HO 00 y p M 00 10 D\ a v) l� Cr) ,- co N O vl O v1 0 00 >-. CQ `D M O M D\ N O l� h r N T 10 10 • 3 M h 'ch N -. N N M h �. v5 vl N v1 N . O h u • .-. M M .. 0. O tb o CI '. 0 v) N 01 0 l- 10 ? CO CO vl 00 N 0 ten O M ilo 60 O 00 0\ N 10 01 10 D\ • O 10 10 N H N 7 U 00 M C 0 Q w H O 1.4 0 03 -al O O H 0 0 01 0 01 0, vl .-. 7 00 00 �0 N 0000100 N M vl O N b M h N O U • M N 01 C 10 N N v7 C< C O CO 00 00 0 N 10 01 N 0 0) b0 N 10 N N -. r ^1 4 .I COb0 vt vl N vt O N E y 'O ^ M b0 9 el (0) d - CA • - G_ `0 0 U i.. C a `aJ O m 0 U T 0 U ty C ti M U ac o x y 'j Pi _0 .- O <C y (s� O 76 G Q C o>,r_i H O L7 A a, mtai No yM• 3c3z O w cto o so .4j o 2 d o N O • 1 y y y o 0 ,n W +' p '� N. p 17 y U is V. 0 'C Oiiiic s H y C> Z L p O 0 H iZ E 'LJ H co0 7 F 0 IA N yS a 11 ran e v a s m 3 0 0 , °' it 0 > m w" �°.. i d y E. co a ro o a F" z 0.'�Fi-7aw..V)�0 W a.0a.a.V-• 101 wv 2000/2 • 0 0 0 0 0 d in t0 O00 M CO N 01 7 N r M N 0.0 •. 7 b YTD v o o v o d r Vo rn - c o\ Y 9m ^^ N N d' N 0 v01 o tJ e e 7 b .O O o1 -O ' co 1: co- 'e .-. r M Vl Ol 0 h O O - O-.o,0:��oo o�-o-S00o op AOOoo0o0000 Yi x o 0 N Vl lea 00 l O O O 4 01 \0 00 'Cr M O N >. N 0 7 0 anq C 0 ^^ O C O Ni o co rd' 3 03 - " O SO lo''O O, tin- ^! a N N 00 O ON O O r 0 v 0 700 O O en 'a O 0,M 00 N N 0 r 0 T O 1/40• N ,O O N:'^4, O enO .-. O N O an O h U O O o O 0 .O' O O .=-" C 0 0 0 0 0 0 0 .0 dt. 0. y 7 - N 0 V>� Vl O 0o O p 00 413 -, r 7 N 7 0 OCi O 7 0 o o 0 0 o— O o CG 0 A O O . .p C O a a` O Cf '. .--i CA-'00 Pa O O O O O 0 U el M O O r 0Ol M. O • O O O O o O O .� W' O .O 'Cr .00' I--- .a st" an0 0. 0 0 0 0 0 0 0 0 c0 pO an 'r en N' -^--—.-+.-, re)r" E O C O O O C O 0 'C "'� M. R! o. co .0 pa ., 'd Q V N •' l .-. O W o0 O N O O CAN N .-+ to O .-+ r• o. o � taro 0.00 1n .to N -O O r 0 • 7 0 t \O •N 0 O O .-• O,O O O 0 0 0 O .O O 0 0 O, A . 'e enO O - O ' CaO 0,.O O OaO C O. O aninb 'n Vl N 0 03 .. E ES N .~ b b N Vl ^+ en r+1 rn 0 _ bU 0 U _ = O to >. O0 o - r W �aLLr‘ao ..E �.,�: 11...a❑ a m NLco PP-. Z O G>w Q T o o � y ., p � a 0. m o G Ci.� 'W. w F� w C 0 o E'"'K N.'.d u-.m. .mo.ifo .i°. c`"' O o o d' A. I. s, s.• n .3 0 roe. o 0 a '� 0� 0 L Z cov GG to E r7•Pe' W N co-OO, W a 0 a a U F W —. ncil Members 0 0 000 ▪ 00 0 0 - 00 = 0 l not posted SIB 0 a 0 N 0 0 <Y . N N 0O O �O CN O V7 t-- ON 0O r. CN N tel 0 0 M N O VD A ▪ O C C O O C C C e4 0 2a 2g - N v F o N o Dom. O 0 Oj _R N �O to O 00 d; et d; - O C O O O O O M c 0 10 10 0. \0 M 1-- Vl O, 0 0 M N Ln r 0 e a; 0 -+ O O 0 .NM 0 q w 00 VD 7 7 In O N 0 CO 0 CO 0 0 0 00 0 fA O O N OO O N O Z O -- -- O O O M O N lV is 1+ cn CO N 0\ N 0 Q\ 0 p 00 en 7 0000 7 i-. CV 0 0 0 �. O O -- O O F 0 7 0 U Pa 0 A V-. F o It y000'000. aCO 00000 0 0 0 M 0 M O O N T O\ M q •00000 0 0 O ++ 00 O O 11' 00 T V t�1 O d 0 0 0 0 0 0 0 v qp en t-en ev-+ -- en L E ddd dd d d Q en 7 O. 04 d d N in -- 0 00 00 0 N 0 w d. O 00 •n - in ‘.0 In On N y 0 q h. .-- b b N Vl re; re; y O a a> enin O - 41 U m 1 .. >.c c, O Pa 'C U H C O X , P. 'O inLLO 4C a> O w n 0 V f G d O CO• \ cr‘ q'a 0 N O N aa74 • a 0 9 ? ._ 0 d O -d vwAi u C W o q O C m w c0i ye W w X Ca F v 0 0 m • roe p7. F y H .G Z �' y O 0 .d w t d �LL�o 0 07 a h q °' c7 = a c7TF: a= 0] a N t� ao .q gMI ct G q L d O a q • 0 0 .c) co E A O pp y �' _ R C ate. a0+ F N z .ti 6Y� W Email" • Y L q .� F a 0 0 7 w 0 G 6 .-. N G4 zn F �l W W .� 1d F W a. O a. a. U —, FO 6 ♦+ O O -+ 0 0 M N d' h 0 0 0 In O WI 0 O+ 0 0 ,d O O NI 0 N N 0 g 0 0 0 C O C O C- Q� CAPITAL PROJECT FUNDS H 0a m 2 o' a`a t co O 2 a 4 UN C 0 0 4 °m a 0 m a0 s U Z W y Q -J z:� Z C o. Q W o. 0 w v >al 0 G d ce CO W 0 co W 0 - y t d CO LL E 0 c E 2 y > ` u Wa V o nE K Z X N76 �'Q K 00000 0 0 r0000 0 0 0 0 0 r 0 00000000r 000 O O O O O 0 0 N 0 0 0 0 0 0 0 0 O CO O 0 I- 0 0 0 0 0 U 0 O CO 0 0 0 0 O O O O d 0 0 0 0 O O o O O S O 00 N 0 0 0 0 0 0 N 60S o0j 009 N N CO O r- n N 0 o c‘ie S N IO N- n N 0 0 O 0 O O O. O O o cc O. 6 0 0 0 0 • m o o co_ V 0. of Or O 0; M, 0 O O N S CO CO m N N O 0 07 0 1- co 0 0 O N 0 N N 0 0 0 0 O O M' 0 0 0 0 0 0. co o coda o 11 Ny M: N; • O 0' O O' M 111 0 0 N N' N co. 0 r N O O 0 0 N yn o r N 00 .._. ._ .....-..-._.... ......_, 0 0 r r - 0,0 0 0 0, 0 0000000 0 00 ' 0000.0 0 O o O O O O O"r O O O r. Doi rr0Oo0 10 0 oo0000 o0 o 0 - o o o O o o.0 0 o O COd 0 W 0. 0 CO..r0 0 0 0 0 O 0 0 Cl_ 0 0 0 0. 0 0 0' h' O 0 0-0 0 0 0 1` O co m .`- N� S O N O 0 co O O S O O. co O '- co N O. N O^ -0 V O O' N N rd a v E `0 E d .c n 0 C C 2 m'm E o 0 o rn v ��2 > m 0, ,"y a a W YI VI N �p O 0 ate. '� C e d d UUS NnC 0 )a.'-' so W .WZ., a ff a, 2 YE E nd c E_ c- o o c. c' E 0 N a >WWWy ndmy v2 ewUmd d »g-.o Va >>> cN ELd°Q d WmN >.WCr e' a 2, W W�C Utto o n 0.-c 00 o U o � o0WNa a oe``0 :2at'� c Q IT '- p FT k1.1 ,"yv0 13 O0 ojc c a 2. m m e O o L. m m n 0 N e 0 0 wat c YoOO»jWaaLL1mOO-.naRZKOnamoUK Z o 0 d a a a 0 n W o TOTAL REVE 0{ 0 TOTAL EXPENDITURES i DEBT SERVICE FUNDS 00000 0 0 1 0 0 0 0 0 0 0 0 0 0 7 vi N O O r 0 0 O d' , 00000000 O O V 0; C 0 0 r 0 0 0 t6 ' 0 6 0 0 0 0 0 0 O O W r I CO M mI CO v r, n co CO co rI in M 'rn; O N1 H 0; O, M' CO U V m ▪ E a`¢ xr v VE on o N-: 0 0' (O NO of IN (0 O 00 V 0 ▪ CCOi 'o o r N.1 v t� �' a a` M M ; 4 (D! N (0 xi: (O N 0 ON)_ M N-j a O 0. (0 a ¢ 1 o') 0. O 00000 0 000000'00 ✓ 00000 r`; O ci NO 040000 NO 0 Ni 0 t. N NO NN XI' CO CO NO r LL0 CO CO 0 'CS _ 0) M - O) CO CO I •M a) 'U c 1) U) U ¢ C a a y a N -o a E co L C > C 0 a) m (0 > (0 E .mac to c0i y 0 (3 U 2 0 'Z o •c 0 m to • C a) E N (�% N L U V01 0 aa)▪ ) o f o 0) > X o c >' 92 a y a)(0 - d m o~ rn = ti Q d To N U y 0 D W a) r a y N iT a) = in O. ar C m m E `C c .p E d a E '0 0 0 'a C X O L 0 0 C O O C C d C • w 00 ap O M. CO-; CO: M Total Expenditures/Transfers 0 co C a) V 0 • e N 0 N g O C E d 3 in O C • co _C N a) 3 L U co m 3 • 10 C o > a d u PALM DESERT REDEVELOPMENT AGENCY Schedule of Revenue and Expenditures 2 REVENUES 2 Transfer in of 20% Set -Aside 3 Interest Rental Income Sales of Property 1 Reimbursement From Other Agencies 2 Housing Mitigation Fees Other Revenue TOTAL REVENUES EXPENDITURES Administrative Costs Professional Services Property Tax Administrative Fee Cost of Inventory Sold 6 Interest And Fiscal Charges 6 Principal Payments Office Equipment Acquisition Rehab/Resale #7 Home Improvement Program 1-6 Palm Village Apartments 4 Property Purchases 5 Desert Rose 5 Portola Palms Mobilehome Park Fred Waring Improvements Multi -Family Improvmt Program Housing Development Transfers Transfer (In)/Out Administrative Costs Transfer (In)/Out Capital Exp Reimb TOTAL EXPENDITURES Notes: 1 2 3 4 5 6 YTD Budget Budget 7,685,200.00 20,000.00 48,000.00 31-Aug-01 HOUSING FUND Actual (FAV)UNFAV YTD Variance 1,280,866.67 _' ';';36;938i¢4: 1,244,428.22 3,333.33 2,741.68 591.65 8,000.00 4,365.56 3,634.44 127,500.00 (127,500.00) 7,753,200.00 1,292,200.00 171,045.68 3,952,598.00 305,000.00 658,766.33 50,833.33 5,000:00 833.33 780,000.00 130,000.00 10,000.00 1,666.67 170,000.00 28,333.33 200,000.00 3,812,447.00 635,407.83 50,000.00 1,121,154,32 FAV(UNFAV) 38,708.39 620,057.94 23,303.80 27,529.53 141.77 21.47 144,084.26 137,043.00 9,235,045100 1,505,840.83 . 393,302.69 833.33 130,000.00 (141.77) (21.47) 1,666.67 (115,750.93) 585,407.83 1,249,581.14 This transfer is done once a year only. (This is an based on actual $ rcvd) Interest is posted with investment maturities or dividend payments Includes re -purchases and re -sales Debt Service is due 10/1 and 4/1 of each year Housing 20% Financial Report, J. Moore 9/5/01 Revenues Rental Dividends/Interest Total Revenues Expenses Lity or raim uesert Parkview Office Complex Financial Statement for Fiscal Year 2001- 2002 July-01 July-01 # % YTD YTD 8 Budget Actual Variance Variance $ 68,500 $ 68,723 $ 223 100.33% $ 4,200 $ 5,190 $ 990 123.58% Budget Actual Variance Variance $ 68,500 $ 68,723 $ 223 100.33% $ 4,200 $ 5,190 $ 990 123.58% $ 72,700 $ 73,914 $ 1,214 101.67% $ 72,700 $ 73,914 $ 1,214 101.67% Professional -Accounting & Auditing $ 6,800 $ 6,800 $ - 100.00% $ 6,800 $ 6,800 $ - 100.00% Professional- Consultants $ 6,000 $ 5,545 $ 455 92.42% $ 6,000 $ 5,545 $ 455 92.42% a; r Tenant Improvements $ 2,500 $ - $ 2,500 0.00% � ; r $ 2,500 $ - $ 2,500 0.00% Repairs & Maintenance Building $ 8,000 $ 7,390 $ 610 92.38% -''tit' $ 8,000 $ 7,390 $ 610 92.38% Repairs & Maintenance - Landscaping $ 2,300 $ - $ 2,300 0.00%$ 2,300 $ - $ 2,300 0.00% Utilities -Water $ 250 $ 104 $ 146 41.57% " $ 250 $ 104 $ 146 41.57% Utilities-Gas/Electric $ 10,000 $ 9,413 $ 587 94.13% $ 10,000 $ 9,413 $ 587 94.13% Utilities -Trash $ 700 $ - $ 700 0.00% $ 700 $ - $ 700 0.00% Telephone A" p $ 150 $ 150 $ 0 99.82%ri=_r:#t;''`. $ 150 $ 150 $ 0 99.82% Insurance $ 520 $ - $ 520 0.00%'.:i , -a $ 520 $ - $ 520 0.00% Total Expenses $ 37,220 $ 29,402 $ 7,818 78.99%1,;;' " $ 37,220 $ 29,402 $ 7,818 78.99% 'Operatinglnconte Equipment Replacement Reserve Net -Income • $ _ 35,480., $, 44,512 .$ 9,032 125:46%., $$A$0,. $.40 512 s‘$; 9 032 tin 125:46Did $ 10,000 $ 12,618 $ (2,618) 126.18% $ 10,000 $ 12,618 $ (2,618) 126.18% $ 25,480E ' $; 31,894 $ ; 6,414 - 125.17% 25,480 1 31;894 ' $ 6;414 (r12q,1T,i: 2002 Investment Report2002 Invest Report Suite No. City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite July 2001 Tenant 73-710 Fred Waring Drive - Two (2) Story Building 100 Hanover 102 Bergren 103 Multiple Sclerosis 104 Arthritis Foundation 106 JMS Consulting 108 Senator Kelly 112 Assemblyman Battin 114 Chamber of Commerce 118 Good willlndustries 119 City/CVAG Conference Room 120 Golf Dimensions Square Feet 2,560 1,360 488 960 928 785 1,406 1,478 1,250 1,380 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 City Storage 604 203 Vacant ( Tenant vacated building -Accounting Services) 480 205 Coachella Valley Economic Partnership 700 208 Vacant ( Desert Springs Did not Extend Lease agreement) 960 210 Wilson , Pesota & Pichardo 3,040 211 Alzheimer's Association 937 2002 Investment Report2002 Vacancy Report Suite No. City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite July 2001 Tenant Square Feet 217 Joe B. McMillan,. Esq. 775 220 CA. State Dept. of Agriculture 1,607 222 WMA Securities 2,981 Total square footage (2 story Building) 31,562 Vacancy Rate-604/31,562= 6.48% 73-720 Fred Waring Drive- One Story Building 100 State of California - Water Resources 15,233 102 State of California - Rehabilitation Department 4,396 Total Square Footage 19,629 Vacancy Rate--0.00% 0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate--2,044/51,191 3.99°/o Occupancy Rate - 49,147/51191 96.01% 2002 Investment Report2002 Vacancy Report Revenue City of Palm Desert Desert Willow Budget Vs Actual For the month of June 2001 Budgeted Actual Budgeted Actual June June $ Percentage Year to Year to $ Percentage 2001 2001 Variance Variance Date Date Variance Variance Course & Ground $ 276,850 $ 227,090 $ (49,760) 82.03% $ 5,207,361 $ 4,437,305 $ (770,056) 85 21% Carts $ 17,050 $ 29,086 $ 12,036 170.59% $ 331,960 $ 344,219 $ 12,259 103 69% Golf Shop $ 52,288 $ 51,388 $ (900) 98.28% S 956,532 $ 874,813 $ (81,719) 91.46% Range $ 600 $ 862 $ 262 143.67% S 32,440 $ 18,455 $ (13,985) 56 89% Food & Beverage $ 108,000 $ 88,935 $ (19,065) 82 35% $ 1,476,400 $ 1,344,823 $ (131577) 91 09% Interest Income $ 1,500 $ 2,031 $ 531 135.40% $ 18,000 $ 20,481 $ 2,481 113 78% Total Revenues S 456.288 $ 399 392 8 L61896� 87.53% $ 8.022 693 7 040.096 8 982 5971 87.75%.664 Payroll Proshop $ 8,801 $ 7,090 $ 1,711 80.56% $ 120,956 $ 105,004 $ 15,952 Cart $ 19,906 $ 23,423 $ (3,517) 117.67% $ 296,963 $ 277,727 $ 19,236 Course & Ground $ 121,681 $ 107,064 $ 14,617 87 99% $ 1,408,708 $ 1,365,136 $ 43,572 Golf Operations $ 16,433 $ 17,217 $ (784) 104.77% $ 225,304 $ 242,610 $ (17,306) General & Administration $ 39,163 $ 37,311 $ 1,852 95 27% $ 476,185 $ 445,876 $ 30,309 Desert Willow Golf Academy $ 21,485 $ 2,818 $ 18,667 13 12% $ 156,760 $ 152,440 $ 4,320 Food & Beverage $ 53,053 $ 46,887 $ 6,166 88 38% $ 645,339 $ 675,529 $ (30,190) (Total Payroll $ 280j522 241 ,8$ 383712 86.20% $ 3 330 215 3 264 322 $ 65 893 Other Expenditures Perimeter Landscaping Proshop Proshop-COGS Cart Course & Ground -North Course Course & Ground -South Course Course & Ground -Desert Pallet-N Course & Ground -Desert Pallet-S Golf Operations General & Administration Range Food & Beverage Food & Beverage COGS Management Fee Financing/Lease 86 81% 93 52% 9691% 107,68% 93 64% 97 24% 104 68% $ 1,208 $ - S 1,208 0.00% $ 14,496 $ - $ 14,496 0 00% $ 1,371 $ 2,094 $ (723) 152 74% $ 53,035 $ 68,913 $ (15,878) 129 94% $ 26,730 $ 42,373 $ (15,643) 15852% $ 438,940 $ 519,618 $ (80,678) 118.38% $ 14,310 $ 16,680 $ (2,370) 116 56% $ 228,095 $ 229,075 $ (980) 100 43% $ 55,149 $ 56,171 $ (1,022) 101 85% $ 704,179 $ 613,054 $ 91,125 87.06% $ 38,745 $ 40,822 $ (2,077) 105 36% $ 682,667 $ 518,933 $ 163,734 76.02% $ 1,100 $ 1,135 $ (35) 103.18% $ 23,600 $ 20,859 $ 2,741 88.39% $ 1,225 $ 162 S 1,063 13.22% $ 22,117 $ 22,905 $ (788) 103.56% $ 130 $ 389 $ (259) 299.23% $ 19,758 $ 16,658 $ 3,100 84.31% $ 49,783 $ 78,229 $ (28,446) 157.14% $ 726,708 $ 852,452 $ (125,744) 117 30% $ 350 $ 138 $ 212 3943% $ 24,800 $ 17,745 $ 7,055 71.55% $ 17,534 $ 28,006 $ (10,472) 159.72% $ 180,339 $ 343,170 $ (162,831) 19029% $ 34,268 $ 29,491 S 4,777 8606% $ 469,905 $ 458,788 $ 11,117 9763% $ 25,000 $ 73,913 $ (48,913) 295.65% $ 300,000 $ 347,169 $ (47,169) 11572% $ 8,260 $ 13,694 $ (5,434) 16579% $ 183,018 $ 107,108 $ 75,910 58.52% l Total Other Ex enditures 2 275 163 383.297 (108.134 139.30% $ 4071.657 1 4.136.447 $ /64,790) I01.59°4 Desert Willow Golf Academy Desert Willow Golf Academy $ 29,750 $ 4,520 $ (25,230) 15.19% $ 216,650 $ 170,230 $ (46,420) 78 57% COGS - Merchandise $ (150) $ - $ 150 0 00% $ (19,350) $ (7,502) $ 11,848 38 77% Other Expenditures $ (1,350) $ (2,073) $ (723) 153.56% $ (20,375) $ (33,348) $ (12,973) 163 67% Learning Center Income (Loss) $ 28,250 $ 2,447 $ (25.803) 8 66% $ 176,925 $ 129.380 $ (47.545) 73 13 Operating Income (Loss) $ (71,147) $ (223,268) $ (152,121) 313 81% $ 797,746 $ (231,293) $ (1,029,039) -28.99% Equipment Reserve Replacement $ 78,912 $ 124,547 $ 45,635 157 83% $ 680,314 $ 900,362 $ 220,048 132 35% I Netlncome(Loss) $ 3(150 0591 $h (34738151S J197756)231.79% 2 111.432 $ O(13165 1249087)-963.67°4 Snapshot of Golf Rounds Budgeted (mo Actual (mol Variance Variance % Budgeted (vtd) Actual (vtd) Variance Variance % Resident 2,087 406 (1,681) 19% 22,895 19,112 (3,783) 83% Non Resident 2,975 5,087 2,112 171% 45,196 48,067 2,871 106% Other 136 72 (64) 53% 1,186 845 (341) 71% Comnlimentary 202 198 (4) 98% 4.166 2.984 (1.182) 72% Total 5,400 5,763 363 107 % 73,443 71,008 (2,435) 97% Folder: Desert Willow 2001:Dw2001:Financial Statement Page 1 CO N CO di GO N L2 ; co et ,2 ; @@! » 2 /q\§\\ \ § 2 , § : § ■ / | : ■ to fa f )\k ! (ƒ�\\/!) § (/}#)}\ ! (&\//))] 2 u =§a=. a aa;l;lIZ a )! $ ) )*/ ]k )± ) ` ° { to al C C 1- V V a o e o o o> e o o 0000 0 0c v 00,m00 -0 'r e e e N O O d N- d O O 0 O P O N V1 m n O O N- O O ' N N m N 0 0 n'0 N N N P b b o O 0 P M d N P d N n d d N 00 P 0 P P D 0 N d N n ut N O O N O O 00 w n 0- P 0\ 0 N 0 m - O N n O W O M- m C O N d P N 0 d 0 m 0 N ritoVD v01ein00 CO VD 00 N V1 1 0 C d l7 V b U b N N N OJ N b00 m N O P N- C O d m N d d N n y ` 0 e. a> C O � C cC � EA ER EA) WI Ein NO N O et 0,N N o A. b o r- d 00 N O N n d 00 N wN en PO ON N b 44 K iR i9 Vf H 44 vo P n in n - b en N 0 d N d O r<d00 o 0 A m '- n (V it 0, d• en - N » w r9 w w w n a= e CO 0 e e ENO m d et el d b 00N d P P P O1 d 01 P P N N d N CO n 1O 'dn N eni b N 4-, � et 00 6944 w ww V1 VI O inin en N 0 01 N dOi, N. 0, in d N N d 0 N enON CC < W K W K 69 W 44 O O 000 01 O ee In1 n N P - 0 N P N EN in 0 m 4, V N K VI W 01 1/40 N I--ONN V1 CO 0 N 1Cri bp 01 N O0 01 O N 10 O Q n V O N P - 0 0 b^ `- EN m a m ON in ENd N 0,o cob d v N00'0 01 O O O O 1D v nt d 4, 44 V> fA €4 Vf W 44 ] M K Vi K V F9 W 69 f9 W W N 44 8 M 44 W (R 44 44 d en P 0 d 00 b O in O vi b N 0l N w1 N m - O d m 0 d N 0-0 N 0 '0 d Od 0 P N 10 N 10 10 M. N 10 d N ' 00 O N n 0 d d d d n 0 N 1: 00 n d N n b r1 00 P b d ro [� t1 10 b Vt 41' N b b 01/4P P d O- et en b N r, d- 0 co v1 0 P O N in N co N en N n d N d N n1 r- N M n P n ten.. v N d N - n Vf (9 N 44 44 V 44 44 Vf Vf (9 H (9 (9 Vf W Vf 69 Vl Vi f9'1 H 44 V1 VI N 19 d N 10 O b O Cr, N n 00 vo - 0 N in 0 0 P 00 N 0 0 N M 00 eV O N n 0 el N 01I--VIVI VI et N EO' 1O O d= RI d 01/4rbn O M. b d re)01 b O N b d N A'N r, re,(V I--iVM- d P P 'n b N N 0. N mt 01 - O� m O 0 I-- b 'Tr d V N b VDelN W- et in 9-0 _ I_ 4- (N4 v N 0 n el et N in N- end en n y= 44 44 w w 44 w 44 eft 44 44 44 w 44 44 w EA 44 44 44 44 4A 44 w e9 t4 44 w e o o a e e o 0 o e= o e o a o e o o = e e a e e O d N h en O N 0 ON EA d 0 enetA- in - V1 0 0 n ^ O en 0 et- O ,0O V1 b m- tel - atO1 ,00 10 01 - 01 10 - O CO N O- N n n m 41 m m w m - d O O 00 61 N O P- b ON N O- - 00 10 ry ON ,0 ON'n N ON0 o n r-NW< nOP-it en V1 PO en en0 N 00N O P CC N0 Po 'O en b el VD CV O ^ t 0 V1 - 0 N N. b- d N E- R0J d D1 n N v N = c W P n 44 W W 4944 4444 ER j 4444 44444444 44to 4444 44 44 N (-- N d - N - m m N CV 0 en in P A)N ON b et01/4O 00 0, N ^ Po N N n 00n01 Nb 'd 01 'PNMN d10 d m= CO - P O1 -- en 0 "itN el enN ON- en 00 N - d N b Po co d O (A en 0 N. in N ^ N N 10 (AO n d V) 0 Vi Vi V. 49 f9 fA W V) E m 9 E 3 0 a41 y:5 014 0 m ti 0 o o v 3 g 0 a�i u c' (5 2 a o al o' m= v dl m^'1 -m L 4 113 �i 0' 0 q0 Q V (7 C5 O V a F a V uoon TO oo in b r.0 CV VI in O. 1100 CO I-- V1 10 v N n V N CO W VI EA ER ER (9 F9 f9 (R fR Vf EA EA 44 (9 Vf W N N d en 00 0 0 ON 00 `O n et I--0 W 01 I--0000 N n O P- P ON N N et VD N ' 0 M. b N n N_ - O. d0 P_ CI 0 N- ' 0 d N N N 10 e 0 en ('4 V N• N d- ON I-- N EN I"- CC n O N - W W iR Vf M ER K ER K K H W EA ® (A K ER 44 44 44 c o 01 6 p_p w mcc V L a 0 g c E ro 1a a 0 p c ci)( O o v a O v m¢ 0 0 0 v m m E O' 0 O O O O `a oa a Ed L N W G 'W-' E o o o o g c o o m c F as a` V VevoaLt°.ue. i u: 0 Learning Center Income (Loss) Operating Income (Los Equipment Replacement Reserve S 01 cv 0 w 0, 69 vl 0 e e eee ▪ aaa0 Variance m W Actual June. 00 Actual June. 01 Snapshot of Golf Rounds 0 n N 00 YI O O ON env 00 rfl vl 0 W f - 0 rfl r P n e o r 0' 0 6 e .- h r _'<00 0 O CO P 0 0 00 N — a It- e o e e a N Ol Nr 0 • T r1 N N O C N1 N `. tel 00 O b — N CA en en b N r1 0 T V D r N ro I'1 a O r P r a u E 0 U a i 1 N • 0 y B2 Be BR 6$ BR SR B2 BR B° BE Be BR N N CA 1e0 cn 7 ON 1/40 r 00 M M M M_ O O -. p .-r .� -. 1/40 t--1 in r CA 00 ) • inde' en CT,0`00 O_ - \O b BR B° 6R 60 BR BQ B° BR BR BE BR BR N 7 N b O0 n b O cmel 7 N M O h M N M 00 V Vl VS O b M vl N N h mi cc '0 .�-. N �'a. N . O .N. N .-, ...N. o a E 0 U BR BR BR Be BR BF Be BE BR BE BE BE t 0 ON Vl 00 O 00 COCN N 'VP 01 M O yV) oD O N t` VD )O Vl in AD b N 00 00 O tt O O VD ;Si0a00 a Co h m v ttl 41 v, CO000 h CO cn C. y b� S Be BR BF B8 Be B' B4 BF B° B$ y3 CO w -� M O t� 00 CO N t� N N o0 N r .U. ONO co M pO r b 00 0 creel 0 GI r ^. gO .. .. N N N N M M .-i N VD B° .� O r-. .N-y-' O N± O' O N� O z > - BESB2SQBeBEBBBEBQeSQSQ c m ID'o Cr 071- e} vvl a m 00 ,N+ Owl N N ON CO V) Owl M N N .-i b 7 N ti ti 00 7 - w0 -, -e. ---• N N creel en Mcri O cmn co — "O 0 -" .� 6° y N .w a CV > ON M V Cr, CO 1D 01 O� e �O N 7 N r- N 10 10 N M M N n O O�p p p pp w N M N R N O -: cr.- .--' b N C. y l- n Cr,' O co 000 tel ON tel b N M O 20 O^ o y 7-1N vl M M V) enM 7>; U 1-1 a,sk M CG o0.1 Vl O M b M O r h r CO ty Vl O M b b M O .tea vl l� CO v7 M M ON CO d' N N 0 e 0 en cn ON .--I W N N 0 7 N at 'O N. r VO 7 M V O M N VI711 Ol O •-• .--� N .-. 7 M V V V1 V) N l+1 .. •O .-e .--1 N --• 7 7 mi' V) V7 N M v^ U c Ha M Faa 01 a, a co co b 0 O C •'J a O C 0 o W y o v ,,,, .•` v v y W a d o O y r' c, � P. cry o T p, o o 7 p i. M .°.dvIOZ1M--,LL4Q4., U U ,<v)Ozfa [1.• < 4 CI Uo S 9 0 2a 0 0 04 m- m 05e mBe 5e 6e 6e m P O p 5p,� p\. O p N P nyy W m O O O N O= p�� 0 0 0 0 0 0 N b tN d d O O p N '0 P W^ N `O IP.1 N O 0 �l O t.Oln '0 � d�11 N ^ N d N o] O Nl n W.^ N N N P W N 01 N N m N m [NM1 Vdi rmNl N 0 01 N N `O W P O O N O Current F/Y Total 0 U 1 h > %) C ; 8m aa da ba 0 tat?: 5 N O • a9 Om U a U 0 4 > U� 0 '0 Y H; dm —1Pm ata IdR- r. r. *_*S8O0'0*01**101 00 m en 0 o P N n .n. .d. yry^ N H nvar..N�PNN� 5 .. 8 it) vri rN�=v°Oi aura w add v cececep0p0nne**ce N OO, '0 0 NNNO d N m P S `N.' t1 1� P ^ (� O N N N WNWWeOW 0 N ti, N n IW1 O^ H N .N. n 01 n< N 01 N 100 **cewce�oceceq�cece* - P Q O 8 W O P P OI ^ Q P y .di P N 1- N W el O� V W O�l r m-' N r N N NN cep ceceryepecere�ecey�cepcepcecea� ;R O W N O P N d P O O M N :T N O h r b< P Vml M_ N ,0 d N N d '' NW in P'0 P N b O N p Pp m N Iml ^ O .. n N .O t- " m U CINMtPW O rON d N g O N d N O O G 3 0 S 0 y$ w 0 m o 0 E g E u= C ,▪ 61nOzn L4 W U B °0 v w RI 4 AU a �0O BE BE S° BE BpE BE BE 6R BE BE 6R BE F 1.. .-. co t 7 , N h N eMn O N O 00 'a OOOOO -+OO O •.6. C Oin B\ 1- N O co N �-. .M. ,-. -4" N N 00 �1 4) - 0 v' BE BE BE BE BE BE BE BE BE BE BE BE S 'O N Tr CO 0o d' o in NI-- .1- ON r y. 04 r VI 10 t` M O M Co 0, in ON b 00 p -. .. h V M N N M F -• N N 0 ri UO V1 O1 0o I- 7 M 00 en enI- ON r 4 2 N en N en .-. 10 N. 00 � O 1 N g IT W y O a O o t : U N H a' My BE BE 6E BE BE BE BE BE BE BE BE BE S ci gmM 0o N M 0 10 0 0 `D 1 en ^� 1y h Vl V) in ut O r -S N I` O 00 H 0 O W M N V 00 l0 O \O N o0 0\ a 0\ Ts() O 00 00 00 V'1 vl 7 1/40 i/'� b r- m a �g 1/440 Ts .. 0 z w5 1 -O• oorn 04 oOMro cn 00 BE BE BE BE BE BE BE BE 6E BE BE BE S° �f y O .. 4\ N N O Vl N N co y O O\ r- M p V 00 M 00 N O \D In w �y �y N O v1 M V'1 M N N 7 00 \D M V h t- ,D ppO T VD CO O\ V1 N N t- U W w0 a .-. .-+ .. M .-• N N N N N .�. N �' O c!1 N ea M vi q' ,- Gi 0 N z t BE BE BE BE BE 6$ BR -BR BE BE BE BE e F co rn 0 r 6 .4 N N Vt N N 00 N In O 00 b N 0\ v 01 O b O 00 CT .fi \O O r v M N In 7 b r O M 'I- .. q .4tn r b O Led O 00 Ori 00 N .--I o '"' "" 4-. o . N 7 7 in N M N N r 0 O,O N *.,1 't 6� N co“. C4 >co pp p p p p M 0 N M eM t--N(n N O\ ,t 00 ..+ 'C O O O O V�i O ,I, O 8 '" Ci N Co rn --. en 7 N to C\ b r b 0 5 � VOi N' 00 0o 7 N ON V I' „Ny W N ,_. ,.. ..� 70 N .. -. N VI -. M 4 Vl M M N a •° oo 4-4 M w� 04 O pa w p CO GO h mr en a co M 0011 t� in 00 coc'b h h M rn M rn .M. in W W N •r D\ O ,0 Vt M N O In I!1 ▪ 'a �y 'O �. Cl. N Cr, O b in M N O V1 ul m y YO .-� 7 -• N M 7 d' M N in is o O -• m -• N en 7 t to N �„ I 'T E• ap. M F F• d 124 M cd d� cos ctl 11 , 0 O O 4- 0 a •0 w a • .• 5 t In 4 4 1_, I--1 0 0 C '�'I N N N ei (� G >, a p, 3 E E a 2" ro a 7 y 6'u R s0 E a ct '� �Qrn62ei4,w ¢igii U QrnOZA w Q' u 0 O O vO in N V N NO ON N 0 1` N in p n co O coco O b V N N N BR A . yy nW W W W co to W CO W W W 00 m O N. eec Ni v 00 4. et . m vi O O N `O g N m lb'1 H Cr) gg o y aON e a a o'q Nm�yar '^ EN) °°i N N NgIQ et V t-b O. Ne ONM N M 0 h W _ b O O N e1 < 0 0 O. O. - 7i Q O V Yry 8 m 0 vi N N r- 1-- O N vl T m O Po t R Pi .: N n N hDSO. .. n ba N N 0 O ah. en qq -< C O en'n C W V k0 1.1m W NNW�Ot.O en n W Q O .. N m V b W F. r Current F/Y Total (looted for Re gi be be tie be be be be eR be be be be e• �m628n8�&°l<GO 0 a ... o�onoa s�NI�Na N R'� N a-. > u Nme m ''mm.r.s a m g • .. e 0. N P< b N-. d In °° b Ch b E O� N O Qi Z N __ M^ O N N l.a U U 0 Q O N BR BRBRBR b O BR BR N. yR Op BR 8 tbJ r- V1 pO1- N O N Q < ONiy W N^ r O m vNl b m t� >N 8 �O < n P v ceL.4f L`. > 'G N c0 U ti < N N N n In.1 P O F i%° N o i, V Sae �amrm ����5� a E° Ea 0 V 0 6Fbe be be mBe se pGON B2 BQ emm N ibe be EIR mp Olm 8b_ 0\F. NO W O. r^ O N L°9l f&z; r d a O > O N ^ $ NW r P .- 00Rr , s'r,o'n = �J' o _+ _ N N N m - Oaty N F W 0 z °u rc'=&KrvS C��m8 In q N O v•l N� S j O] m•.:NNNNN sN p 0 z cececececececececebebePR •0 4=rbje8 r.4 .ro8n * .� < on N me O W r O N N' c4uVitqr,..te6lef,P.-oi A' N aNnNg ' vm'e qO0 N F"aw' m b N n 1- a N en y N O. m % N N .n- m< N n P V N b 1�/1 W HaQ t E g E E n Ern 0z o` �ti�ai' Current F/Y Total a Y a a rn co ,6 4.44 c; cr sN Q n Crt S. o cp ri 1 p it, d Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- June 2001 Resident 406 $ 16,225 $ 39.96 7.00% Non -Resident 5,087 $ 234,589 $ 46.12 88.30% Other 72 $ 720 $ 10.00 1.30% Complimentary 198 $ 1,345 $ 6.79 3.40% Desert Willow Totals 5,763 $ 252,879 $ 43.88 100.00% Dw2001;POS AVG RD Page 11 • • Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- JUNE 2001 Description Resident Rounds No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Fee- Weekend 116 $ 4,630 $ 39.91 3.65% Resident Fee -Weekday 103 $ 4,115 $ 39.95 3.24% Resident -Twilight 3 120 $ 40.00 0.09% Total Resident Non Resident 222 $ 8,865 $ 39.93 6.99% Posted Weekend 272 $ 18,805 $ 69.14 8.56% Posted Weekday 251 $ 15,107 $ 60.19 7.90% IROC Des. PRTY - Weekday 21 $ 683 $ 32.52 0.66% IROC Des. PRTY - Weekend 26 $ 975 $ 37.50 0.82% Wholesale Weekend 43 $ 2,402 $ 55.86 1.35% Wholesale Weekday 29 $ 1,305 $ 45.00 0.91% Twilight 650 $ 26,000 $ 40.00 20.45% Passbook- Weekday 195 $ 8,420 $ 43.18 6.14% Passbook- Weekend 105 $ 155 $ 1.48 3.30% Posted Replay 52 $ 1,230 $ 23.65 1.64% Fee Pass Fire - Card 73 $ 2,404 $ 32.93 2.30% Fee Special Event Variable 1,066 $ 48,802 $ 45.78 33.54% Total Non Resident Rounds Other Rounds Junior Walking Total Other Complimentary 2,783 $ 126,288 $ 45.38 87.57% 44 $ 44 $ 440 $ 10.00 1.38% 440 $ 10.00 1.38% VIP 20 $ $ - 0.63% PGA Member 51 $ 695 $ 13.63 1.60% Donation 21 $ $ - 0.66% Employee / Employee Guest 37 $ $ - 1.16% Total Complimentary 129 $ 695 $ 5.39 4.06%1. Total Round (FireCliff) 3,178 $ 136,288 $ 42.88 100.00% Dw2001;POS AVG RD Page 12 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- JUNE 2001 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend Resident Fee -Weekday Total Resident Non Resident 97 $ 3,880 $ 40.00 3.75% 87 $ 3,480 $ 40.00 3.37% 184 $ 7,360 $ 40.00 7.12% Posted Weekend 281 $ 19,850 $ 70.64 10.87% Posted Weekday 121 $ 6,731 $ 55.63 4.68% IROC Des. PRTY- Weekday 61 $ 1,983 $ 32.51 2.36% IROC Des. PRTY- Weekend 96 $ 3,635 $ 37.86 3.71% IROC Member - Weekend 4 $ 240 $ 60.00 0.15% IROC Member Guest - Weekend 2 $ 70 $ 35.00 0.08% Wholesale Weekend 69 $ 3,905 $ 56.59 2.67% Wholesale Weekday 14 $ 630 $ 45.00 0.54% Passbook- Weekday 95 $ 4,205 $ 44.26 3.68% Passbook- Weekend 58 $ 3,480 $ 60.00 2.24% Fee Pass - Card 94 $ 3,179 $ 33.82 3.64% Replay 73 $ 910 $ 12.47 2.82% Twilight 549 $ 21,960 $ 40.00 21.24% Fee Special Event Variable 787 $ 37,523 $ 47.68 30.44% Total Non Resident Rounds 2,304 $ 108,301 $ 47.01 89.13% Other Rounds Junior Walking 28 $ 280 $ 10.00 1.08% Total Other 28 $ Complimentary 280 $ 10.00 1.08%: VIP 3 $ - $ - 0.12% PGA Member 27 $ 650 $ 24.07 1.04% Donation 32 $ - $ - 1.24% Employee / Employee Guest 7 $ - $ - 0.27% Total Complimentary 69 $ 650 $ 9.42 2.67% Total Round (Mountainview) 2,585 $ 116,591 $ 45.10 100% Dw2001;POS AVG RD Page 13 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of May 2001 Cash Reserve Analysis 'Required Reserve Cash on Hand Variance- Favorable ( Unfavorable) 1 M 1 One Month I $ 500,000.00 I $ 750,896.80 1 I $ 250,896.80 Page 14 Course & Ground Carts Golf Shop Range Food & Beverage Interest Income !Total Revenues Revenue Payroll Proshop Cart Course & Ground Golf Operations General & Administration Food & Beverage City of Palm Desert Desert Willow Budget Vs Actual For the month of July 2001 Budgeted Actual Budgeted Actual July July $ Percentage Year to Year to $ Percentage 2001 2001 Variance Variance Date Date Variance Variance $ 107,308 $ 113,282 $ 5,974 105 57% $ 107,308 $ 113,282 $ 5,974 105 57% $ 14,495 $ 15,985 $ 1,490 11028% $ 14,495 $ 15,985 $ 1,490 11028% $ 26,278 $ 24,575 $ (1,703) 93 52% $ 26,278 $ 24,575 $ (1,703) 93 52% $ 500 $ 470 $ (30) 9400% $ 500 $ 470 $ (30) 9400% $ 50,636 $ 48,486 $ (2,150) 95 75% $ 50,636 $ 48,486 $ (2,150) 95 75% $ 4,000 $ 1,623 $ (2,377) 40 58% $ 4,000 $ 1,623 $ (2,377) 40 58% 203,217 $ 204.421 $ 1.204 100.59% $ 203.217 $ 204.421 $ 1,204 100.59%4 $ 2,094 $ 2,795 $ (701) 133 48% $ 2,094 $ 2,795 $ (701) 133 48% $ 15,400 $ 18,662 $ (3,262) 121 18% $ 15,400 $ 18,662 $ (3,262) 121 18% $ 120,149 $ 119,354 $ 795 9934% $ 120,149 $ 119,354 $ 795 9934% $ 18,201 $ 18,176 $ 25 99 86% $ 18,201 $ 18,176 $ 25 99 86% $ 39,229 $ 37,848 $ 1,381 96 48% $ 39,229 $ 37,848 $ 1,381 96 48% $ 38,894 $ 41,464 $ (2,570) 10661% $ 38,894 $ 41,464 $ (2,570) 106 61% ITntal Payroll 233 967 $ 238.299 $ (4,332) 101.135% 233 967 238.299 S (4.332 101.85V Other Expenditures Perimeter Landscaping $ - $ - $ - 0 00% $ - $ - $ - 0 00% Proshop $ 875 $ 1,856 $ (981) 212 11% $ 875 $ 1,856 $ (981) 212 11% Proshop-COGS $ 14,866 $ 17,351 $ (2,485) 116 72% $ 14,866 $ 17,351 $ (2,485) 116.72% Cart $ 12,600 $ 10,045 $ 2,555 79 72% $ 12,600 $ 10,045 $ 2,555 79 72% Course & Ground -North Course $ 51,230 $ 51,770 $ (540) 101 05% $ 51,230 $ 51,770 $ (540) 101 05% Course & Ground -South Course $ 55,945 $ 33,116 $ 22,829 59 19% $ 55,945 $ 33,116 $ 22,829 59 19% Course & Ground -Desert Pallet-N $ 1,510 $ 970 $ 540 64 24% $ 1,510 $ 970 $ 540 64 24% Course & Ground -Desert Pallet-S $ 1,500 $ 1,027 $ 473 68 47% $ 1,500 $ 1,027 $ 473 68.47% Golf Operations $ 7,250 $ 295 $ 6,955 407% $ 7,250 $ 295 $ 6,955 4 07% General & Administration $ 47,600 $ 49,648 $ (2,048) 104.30% $ 47,600 $ 49,648 $ (2,048) 104 30% Range $ 150 $ 276 $ (126) 184.00% $ 150 $ 276 $ (126) 184 00% Food & Beverage $ 15,331 $ 17,419 $ (2,088) 113 62% $ 15,331 $ 17,419 $ (2,088) 113 62 % Food & Beverage COGS $ 15,908 $ 17,792 $ (1,884) 111 84% $ 15,908 $ 17,792 $ (1,884) 1!!84% Management Fee $ 25,000 $ 25,000 $ - 100 00% $ 25,000 $ 25,000 $ - 100 00% Financing/Lease $ 1,866 $ 4,889 $ (3,023) 262 00% $ 1,866 $ 4,889 $ (3,023) 262 00% I Total Other Expenditures $ 251.631 S 231.454 20177 9L98% S 251.631 231,454 $ 20.177 91.98%1 puw ,., ' ,�n,.,w., u.,..rtw w»:, r,,..m...«..._....-tw.e .=,;,r.............K;.,..-,....,............... :..-... __.. .. ............ ....... _� _.. ... Desert Willow Golf Academy Desert Willow Golf Academy $ 12,100 $ 5,234 $ (6,866) 43 26% $ 12,100 $ 5,234 $ (6,866) 43 26% COGS - Merchandise $ (4,790) $ (4,398) $ 392 91 82% $ (4,790) $ (4,398) $ 392 91.82% Other Expenditures $ (2,045) $ (2,495) $ (450) 122 00% $ (2,045) $ (2,495) $ (450) 122.00% Learning Center Income (Loss) $ 5265 $ (1.659) $ (6,924) -31 51% $ 5,265 $ (1,6591 $ (6,924) -31 51% Operating Income(Loss) $ (277,116) $ (266,991) $ 10,125 96 35% $ (277,116) $ (266,991) $ 10,125 9635% Equipment Reserve Replacement $ 76,593 $ 76,593 $ 100.00% $ 76,593 $ 76,593 $ 100 00% l Net Income Loss) -...,.,...._... ..a�„y $ .,,$ 3,709)S �(343,584)v$ 10125�� 97.14% $ (353�709) S® (343.51W4, L 10125 9714V !Snapshot of Golf Rounds Budgeted (mo Actual (mix) Variance Variance % Budeeted (vtd) Actual (vtd) Variance Variance )Resident 565 444 (121) 79% 565 444 (121) 79% Non Resident 2,239 2,478 239 111 % 2,239 2,478 239 1 11 Other 83 83 100% 83 83 100% Complimentary 104 338 234 325% 104 338 234 325% 32 Total 2,908 3,343 435 115 % 2,908 3,343 435 5% Folder Desert Willow 2001.Dw2002,Financial Statement Page 1 Y M 1 is N w in O CD CI 10 roCONNCOCr) N 10 N m N d' d' N CD (o .M..Oi N o O — W N Y aw+ t is N d' O CO O W CD N oo d' c O N N 10 10 N a m u lc it a o r E o o o u v ggE$ v 2 c� �Ea „ a °'� o a Co a C$ ,� 0'O ,oE, to, �° u .3� a� ¢ coi F �i u� N6 Ix Coo e4 ci cte E. WW o0<0 C.. a.ee EA co co O mth A' a o y�C 9 a o 0O w 0 1q u i o 'O M 0 M C 0 l V a 0 e 0 0 fi N 0 , g V y In u o 0 1 7 .E O to 0 e� a g 5e a S 41 Nm a City of Palm Desert Desert Willow Two (2) Year Comparison ACTUAL to ACTUAL Course & Ground Carts Golf Shop Range Food & Beverage Interest Income Total Revenues Revenue Payroll Proshop Cart Course & Ground Golf Operations General & Administration Food & Beverage Total Payroll Other Expenditures Perimeter Landscaping Proshop Proshop-COGS Cart Course & Ground Golf Operations General & Administration Range Food & Beverage Food & Beverage COGS Management Fee Financing/Lease Month of Month of $ Percentage Jul-01 Jul-00 Variance Variance 113,282 $ 15,985 $ 24,575 $ 470 $ 48,486 $ 1,623 $ 204,421 $ 2,795 $ 18,662 $ 119,354 $ 18,176 $ 37,848 $ 41,464 $ 238,299 $ - $ 1,856 $ 17,351 $ 10,045 $ 86,883 $ 295 $ 49,648 $ 276 $ 17,419 $ 17,792 $ 25,000 $ 4,889 $ 97,816 $ 15,466 115.81 % 16,078 $ (93) 9942% 31,081 $ (6,506) 7907% 519 $ (49) 90 56% 51,756 $ (3,270) 93 68% 4,247 $ (2,624) 38 22% 201,497 $ 2,924 101 45% 10,483 $ (7,688) 2666% 18,745 $ (83) 9956% 103,589 $ 15,765 11522% 18,822 $ (646) 96 57% 34,217 $ 3,631 11061% 59,550 $ (18,086) 69 63% 245,406 $ (7,107,) 9710%1 $ - 000% 4,384 $ (2,528) 42 34% 18,406 $ (1,055) 9427% 11,133 $ (1,088) 9023% 114,561 $ (27,678) 75 84% 5,177 $ (4,882) 5.70% 51,595 $ (1,947) 9623% $ 276 100 00% 25.430 $ (8,011) 68 50% 20,620 $ (2,828) 86 29% 25,000 $ - 10000% 18,999 $ (14,110) 25 73% d Total Other Ex enditures $ 231,454 $ _.. 295,305 $ 63,851) 78.38%1 David Leadbetter Academy Learning Center Revenues $ Learning Center Payroll $ Otther Expenditures $ Learning Center Income (Loss) $ (1,659) $ (6,294) $ 4,635 26 36% Operating Income (Loss) $ (266,991) $ (345,508) $ 78,517 77 27% Equipment Replacement Reserve $ 76,593 $ 40,822 $ 35,771 187 63% Net Income Loss $ (343,584) $ (386,330) $ 42746 88.94% 5,234 $ 1,200 $ 4,034 436 17% (4,398) $ - $ (4,398) 100 00% (2,495) $ (7,494) $ 4,999 33 29% (Snapshot of Golf Rounds Actual July. 01 Actual July. 00 Variance Variance % Resident 444 552 (108) 80% Non Resident 2,478 2,405 73 103% Other 83 58 25 143% Complimentary 338 177 161 191% Total 3,343 3,192 151 105% Page 3 Dw2002,2yr Comparison d Y V W Interest Ince cc en o �f^ 14 h U 2 S 0 c7 ot e 0 8 U s 1 P /\ ° ba of P. c. kr, in • \ : .ta ER 34 to In ~� ti \ BR ' / ! to In 7 `\° $- .- ;\ /)y;a K `} t i �00 J\ «: - A. }»&\- o r• `� - to 2 4 - » `i \ ` ,▪ el e $)) 3} ` > ` ; -Aa , , . § ; tc » 4 +\ > u cc-- » "A` J$ - } II 0. $00 ® - ƒ® , !\ en co m 24 . ,% § , }$} ; . /\ \ 4 \ ) \ - \ \} . ei* \ { ,\ (\ _ > e ( 0 5 0 g , , \ 0 { t t 0 «ƒ tri Id ,;1 ; ; ! \! en cn pi • % S °> \ \ } 41 \ £ \ I. a \ Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis -July 2001 Resident 444 $ 17,755 $ 39.99 13.28% Non -Resident 2,478 $ 109,280 $ 44.10 74.13% Other 83 $ 830 $ 10.00 2.48% Complimentary 338 $ 1,325 $ 3.92 10.11% Desert Willow Totals 3,343 $ 129,190 $ 38.64 100.00% Dw2002;POS AVG RD Page 9 Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- JULY 2001 Description Resident Rounds Resident Fee- Weekend Resident Fee -Weekday Total Resident Non Resident No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total 194 $ 7,750 $ 39.95 9.97% 99 $ 3,960 $ 40.00 5.09% 293 $ 11,710 $ 39.97 15.06% Posted Weekend 164 $ 10,920 $ 66.59 8.43% Posted Weekday 72 $ 4,179 $ 58.04 3.70% IROC Des. PRTY Wknd 52 $ 1,950 $ 37.50 2.67% IROC Des. PRTY - Weekday 21 $ 683 $ 32.52 1.08% Wholesale Weekend 4 $ 228 $ 57.00 0.21% Wholesale Weekday 23 $ 1,035 $ 45.00 1.18% Twilight 387 $ 15,480 $ 40.00 19.90% Posted Replay 14 $ 160 $ 11.43 0.72% Passbook Weekday 78 $ 3,510 $ 45.00 4.01% Passbook Weekend 40 $ 2,400 $ 60.00 2.06% Fee Fire Pass 61 $ 2,109 $ 34.57 3.14% Stampbook 68 $ 3,025 $ 44.49 3.50% Fee Special Event Variable 407 $ 17,149 $ 42.14 20.93% Total Non Resident Rounds 1,391 $ 62,828 $ 45.17 71.52% Other Rounds Junior Walking 55 550 $ 10.00 2.83% Total Other 55 550 $ 10.00 2.83% Complimentary VIP 7 0 $ - 0.36% PGA Member 95 625 $ 6.58 4.88% Donation 8 0 $ - 0.41% COD/PDHS 4 0 $ - 0.21% Employee 89 0 $ - 4.58% Employee Guest 3 0 $ - 0.15% Total Complimentary 206 625 $ 3.03 10.59% Total Round (FireCliff( 1,945 75,713 $ 38.93 100.00% Dw2002,POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- JULY 2001 Description Resident Rounds Resident Fee- Weekend Resident Fee -Weekday Resident Twilight Total Resident Non Resident No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total 79 $ 3,160 $ 40.00 5.65% 71 $ 2,845 $ 40.07 5.08% 1 $ 40 $ 40.00 0.07% 151 $ 6,045 $ 40.03 10.80% Posted Weekend 99 $ 6,380 $ 64.44 7.08% Posted Weekday 56 $ 3,271 $ 58.41 4.01% IROC Des. PRTY Wkdy 50 $ 1,625 $ 32.50 3.58% IROC Des. PRTY-Weekend 118 $ 4,425 $ 37.50 8.44% Wholesale Weekend 4 $ 228 $ 57.00 0.29% Wholesale Weekday 7 $ 315 $ 45.00 0.50% Wholesale Replay 5 $ 200 $ 40.00 0.36% Twilight 272 $ 10,880 $ 40.00 19.46% Passbook Weekday 71 $ 3,195 $ 45.00 5.08% Passbook Weekend 18 $ 1,080 $ 60.00 1.29% Fee MV Pass 59 $ 2,101 $ 35.61 4.22% Stampbook 49 $ 2,170 $ 44.29 3.51% Fee Special Event Variable 279 $ 10,582 $ 37.93 19.96% Total Non Resident Rounds 1,087 $ 46,452 $ 42.73 77.75% Other Rounds Junior Walking 28 $ 280 $ 10.00 2.00% Total Other 28 $ 280 $ 10.00 2.00% Complimentary VIP 12 $ - $ - 0.86% PGA Member 27 $ 650 $ 24.07 1.93% COD / PDHS 70 $ $ - 5.01% Donation 5 $ - $ - 0.36% Employee / Employee Guest 18 $ 50 $ 2.78 1.29% Total Complimentary 132 $ 700 $ 5.30 9.44% Total Round (Mountainview) 1,398 $ 53,477 $ 38.25 100% Dw2002;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of July 2001 Cash Reserve Analysis Required Reserve Cash on Hand I Variance- Favorable ( Unfavorable) One Month I $ 500,000.00 I I $ 590,587.09 I $ 90,587.09 Page 12 Food & Beverage Revenues Total Revenues PalmDesert Recreation Facilities Corporation Income Statement Jun-01 Jun-01 # % Budget Actual Variance Variance $108,000 $88,935 ($19,065) 82.35% $108,000 $88,935 ($19,065) 82.35% Salaries $53,053 $46,887 $6,166 88.38% Cost of Goods Sold-F&B $34,268 $29,491 $4,777 86.06% Food & Beverage Expense $17,534 $28,006 ($10,472) 159.72% Total Expenses $104,855 $104,384 $471 99.55% Net Income (Loss) $3,145 ($15,449) $18,594 -491.22% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2001;PDRFC Budget Page 1 Food & Beverage Revenues Total Revenues PalmDesert Recreation Facilities Corporation Income Statement Jul-01 Jul-01 k % Budget Actual Variance Variance $50,636 $48,486 ($2,150) 95.75% $50,636 $48,486 ($2,150) 95.75% Salaries $39,229 $41,464 ($2,235) 105.70% Cost of Goods Sold-F&B $15,908 $17,792 ($1,884) 111.84% Food & Beverage Expense $15,331 $17,419 ($2,088) 113.62% Total Expenses $70,468 $76,675 ($6,207) 108.81%n Net Income (Loss) ($19,832) ($28,189) $8,357 142.14% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2002;PDRFC Budget Page 1 TRAVEL EXPENSE GUIDELINES ALLOWABLE EXPENSES Following any seminar/conference all original, detailed receipts will need to be submitted to Finance for reimbursement. Expenses must be related to the seminar/conference and reasonable. Guidelines are as follows: Meals: One day seminars allow for lunches to be comped by the City. Two days or more, allow for breakfast, lunch and dinner. Detailed receipts are required for reimbursement. Alcohol is not a reimbursable expense. Employees are only reimbursed for the portion of the receipt which applies to them. Any conference related guests must be pre -approved by your Department Head. Tips: Tips in excess of 15% will be the responsibility of the employee. Hotel: Hotel receipts must be submitted for reimbursement of any expenses, especially if the hotel room was prepaid by the City. Movie rentals are not reimbursable. City allows employee's to stay the night before the seminar starts and the night after the seminar ends if necessary due to the earliness/lateness of meeting. Airfare: Similar to registration fees, airfare should be paid directly by the City of Palm Desert. Airfare will be reimbursed for the equivalent of coach airfare. You may use any travel agent or internet service to purchase your ticket. If you use the League of California Cities airline pass, you may use Antelope Travel Service which knows how to process these Southwest airline tickets at a $10 service fee. Parking: Parking is reimbursable when a personal or city vehicle is used while attending a conference/seminar. Mileage: Mileage is reimbursable for personal vehicle usage at a rate of $.345/mile. Mileage is calculated by the lesser of the Civic Center to conference destination or employee's home to conference destination. Mileage will only be reimbursed at a rate equal to that of alternative means of transportation. (i.e. If you chose to drive to Sacramento instead of flying, the max mileage reimbursement you can receive is equal to that of the airfare + rental car/taxi). If a city or rental vehicle is used, gas receipts will be necessary for reimbursement. All mileage is verified by the Finance Department using Mapquest.com. Phone: All business related phone calls are reimbursable (including one reasonably brief (10 minutes or less), non -emergency, personal call home per day, if desired). Registration: Registration should be paid directly by the City prior to the conference/seminar deadline. (This does not include college/continued education course work which is paid directly by the employee and then upon completion and passing the course, the City reimburses the employee.) Testing: Any class/licensing course which involves testing, must be paid by the employee and reimbursed following the employees passing the test. Proof of payment and test score must be attached. Miscellaneous: Miscellaneous expenses which are reimbursable include: i. reference materials, ii. xerographic or typewriting services iii. rental of office machines in connection with preparation of official reports or correspondence iv. purchase of materials and supplies, when normal purchasing procedures cannot be followed; and v. rental of a room or other facility for the transaction of official business On occasion there are special circumstances in which a person will be reimbursed for items not included above. In such cases, each expense will need to be approved by the Department Head prior to consideration. FORM USED Travelers shall report travel expenses and account for travel advances by submitting a Travel Expense Voucher. You can download the Excel 7.0 version of the Travel Expense Voucher from the G: Everyone drive on the Network. OUT OF STATE TRAVEL All out of state travel isallowed if authorized by City Council prior to the trip or advances. Please attached backup showing the authorization for the out of state trip. TIME LIMIT FOR SUBMISSION A Travel Expense Voucher must be submitted to the Finance Department within 10 days after completion of the trip unless there is recurring local travel, in which case vouchers may be submitted monthly. • % REOUIRED INFORMATION The traveler shall provide all information requested on the Travel Expense Voucher, along with an explanation of unusual items, copies of any written authorizations, and any other information required in travel policies. All expenses for a trip should be reported on ONE Travel Expense Voucher. Supplemental vouchers may be submitted if necessary, but they must be clearly marked "supplemental" and must be accompanied by a photocopy of the original voucher. The Travel Expense Voucher must show the inclusive dates of each trip for which allowances are claimed and the times of departure and return. DOCUMENTATION Receipts: The original of the following items must be submitted with the Travel Expense Voucher: (1) Stubs or carrier's copy of transportation tickets. (2) Receipts for local transportation. (3) Receipts for each miscellaneous expense. (4) Receipts for all lodging. (5) Please tape all receipts to a full sheet of paper and attach them to the travel voucher in the same sequence as the entry of their totals on the voucher. Identify or clearly reference attachments. Please indicate the exchange rate used for each receipt when applicable. ORIGINAL RECEIPTS NOT AVAILABLE In cases where original receipts have been lost or are otherwise unavailable, a traveler can submit a "Declaration of Missing Receipt" located on Attachment A (at the end of this policy) with his/her Travel Expense Voucher in place of a missing original receipt. The completed form will be accepted by the Finance Department as adequate documentation. It is intended that the form will be used only in unusual situations when either an original receipt is unavailable or lost. Acceptance of the form is subject to the frequency of its use and the explanation for the unavailable receipt. APPROVAL AND CERTIFICATION OF TRAVEL EXPENSES The traveler and the person approving payment should sign the typed travel voucher after the traveler claiming reimbursement reviews it. The voucher must be approved for payment by the department head or a person to whom such authority has been delegated, as evidenced by a Signature Authorization Form on file with the Finance Department. a ADVANCE CASH OR CHECK Requests for advances should be submitted on the Request for Payment -Travel or Cash Advance. The Finance Department requires seven (7) business days to process these requests PRIOR to the date it is needed. Advance requests must be approved by the Department Head or his/her authorized representative. Such approval will constitute not only approval as to reasonableness of amount, but also verification that such travel will be on official City business. Hotel: Anytime a hotel is required for seminar/conference attendance, the full hotel fees and bed tax should be advanced to the hotel prior to the date of the event. Upon return from the seminar/conference an original receipt is required in order to clear the advance. Any expenses incurred by the employee attending the seminar/conference shall not be paid until a receipt is provided. Cash: Cash advances may be taken by an employee prior to the seminar/conference in order to cover any expenses they should incur. Generally, cash is advanced at a rate of $100.00/day, unless otherwise authorized by the Department Head. Upon return from the seminar/conference, all original receipts must be attached to a Travel Expense Form and turned into Finance in order to clear the advance. All receipts are audited and filed with the original advance request. Any money remaining shall be given to the Finance Department for receipting. Failure To Clear Advances in a Timely Manner If outstanding advances have not been recovered within 30 days from the date the accounting for the trip was due, the Finance Technician shall, in the absence of extenuating circumstances, forward a list of those who are late to the City Manager. City Manager will determine what actions is required. Internal Revenue Service (I.R.S.) requires us to clear advances quickly or risk having all advances treated as wages to employees. ATTACHMENT A DECLARATION OF MISSING ORIGINAL RECEIPTS AND/OR PAYMENTS MADE ON BEHALF OF "CITY OF PALM DESERT. Individual Receipts of $50 or less. Instructions: Copy this form as needed. Attach this completed form to the Travel Expense Voucher in place of a missing original receipt. Complete this form for missing original receipt(s). Also, only complete the appropriate section that applies to the type of payment made. 1, , declare that: (Name) 1. I disbursed personal monies on behalf of the City of Palm Desert as follows: (A) Date: Vendor Name: Vendor Address: Description of Payment: (8) Date: Vendor Name: Vendor Address: Description of Payment: ( C) Date: Vendor Name: Vendor Address: Description of Payment: Amount Paid: $ Amount Paid: $ Amount Paid: $ Total $ 2. The original receipt is not available. The reason (Le. Could not be obtained, lost, etc.) is as follows: I hereby certify that the above information is true to the best of my knowledge. Date: Department Head Approval: Date: Signature: Signature: