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HomeMy WebLinkAbout2003-12-17 IFC Regular Meeting Agenda Packet I , • 6 COMMITTEE MEETING WORKSHEET - /idea Meeting Description Investment Committee Meeting Date 12/17/03 Time 2:00 p.m. Location North Wing Conference Room Mailed Agenda 12/10/03 Posted Agenda 12/10/03 Time Convene Adjournment 2AbCo p,m. Staff Members Attending Yes „No Others Attending Yes, fib 1 Paul Gibson, Chairperson / 11 Dennis Coleman 2 Council Member V e 12 Justin McCarthy 3 Council Member 13 Rodney Young 4 Dave Erwin, City Attorney l 14 Recording Secretary 5 Carlos Ortega, City Mgr. ✓ /6 Thomas Jeffrey ✓ Public Members Attending / Guests Attending 7 Russ Campbell ✓ ,/15 8 16 9 Bill Veazie 1 // 17 10 Everett Wood 11 18 19 20 Follow-UpsfGasks Assigned Person Responsible Due Date : err Inef' H't7 rf 3 )VikAPNIC 13S ; Q prv,4Qh 4 -TM 2J— ,CI- /Mt CS 6 Q m TJ( Yh�9 lei )-- 8 i 0 Do l , >i Trri, .Si li icliA �ti or yr 8U st__ w.e� C p 0H er+o p ' year • • Spoke Mtn (1) Mtn (2) MEETING NOTES 'CJ V� h A& At.(m h pM 0 r Ck1 J— ' 3a I 'ha c hl � Gar (/I/Ih' uon al it; aQy Q o/ 2�7 mac / U o Jar\ of)" 4 tett-% T, - `- # .4/n do 00 f `CuLlMSs 01 , . if f/l%L 719 4 r bffivin veceto 26 Y tr-rd 4-if e- 2-e-e 06? 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Jtt M &' itilati. unia, rno Tr' TPliti t .m an /-7-- 1 1 Li)? 19-P4-e vwv f#4,14/4/ oPit 44 m;cr 7 S �� a a Yee- r !b`r Spoke Mtn (1) Mtn (2) MEETING NOTES 5 7a- y�� 7 refried drihrf 1171) - *-7__ ift i i t .4Ary,, , Fie,q(11 , +iv/ „ r:Iii; iiti i ' ' 4 • or-i -c C r , ey. ice- Jf7 ra2- Cl d co! 41 4:tiaC l 6 TS J b6 ; .ire,/ v -NY c-6na f(gj&4r u.x., , - gb -7° \frgor 2LDc0-/- fror- a(4 7 z',! , et)) W (its /i LDY' c1 20� ��iP, Pin ct �j i lT1�/" ! / a i1 be rdSf sort/ ,byvipti,Lb Cam^ c -r �C r� e0 7:14-C?4 71fr , b> read-c-e p(49nu M; , Ail aiir, e_QC-?P seniors, rig e 41 ca i 440 - @Wit OUP.m Ali r5( ponce Spoke Mtn(1) Mtn (2) MEETING NOTES Spoke Mtn(1) Mtn(2) MEETING NOTES • • Spoke Mtn(1) Mtn (2) MEETING NOTES CALIFORNIA ASSET STATEMENT MANACT MMENT PROGRAM JOINT POWERS AUTHORITY 50 CA LIroRNI A srREl?r 230.1)PI.00R SAN FRANCISCO CALIFORNIA 941 I I FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 11/30/2003 PALM DESERT REDEVELOPMENT AGENCY ACCOUNT NUMBER: 553-02 GENERAL FUND ATTN: PAUL GIBSON FUND NAME: Cash Reserve Portfolio 73-510 FRED WARING DRIVE PALM DESERT,CA 92260-2578 Page 1 of 1 Accoun $ummaryasofR�i(3tFL2Q03 . - Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Pald Thls Year Owned Value 11/30/2003 $73,154.23 $0.00 31,658,154.230 $31,658,154.23 Tian actiq $ tmma fro 16/1,li/2U43 ' ,i,(3;0/ZOQ wM7 5 - Beginning Balance Purchases Reinvestments Redemptions Ending Balance $31,634,295.58 $0.00 $23,858.65 $0.00 $31,658,154.23 I y. t4 UAW os .�, ' 0 FANSA TIO I TR1 S CIA ON ;-, S ARESOWNED 11/01/03 Beginning Balance 31,634,295.580 11/30/03 12/1/2003 Accrual Income Div Reinvestment-DIV $23,858.65 $1.00 23,858.650 31,658,154.230 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.92%. THE ANNUALIZED YIELD IS 0.92%. • C AC A L.LIFORNIASSET' STATEMENT MANAGEMENT PROGRAM I DINT POWERS ALITHORI"1-Y 50 CA LIFPNNIA STREET 23RIS FLOOR SAN FRANCISCO CALIFORNIA 091 I I FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 11/30/2003 CITY OF PALM DESERT ACCOUNT NUMBER: 553-00 OPERATING FUND 73-510 FRED WARING DRIVE FUND NAME: Cash Reserve Portfolio PALM DESERT, CA 92260 Page 1 of 1 Account summa as of �1H30/2003- _-- c•s a , ___ Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 11/30/2003 $461,566.68 $0.00 20,317,471.660 $20,317,471.66 Transaction_Sumr$S11,p 111, 0.03WiltIOh2b03; . Beginning Balance Purchases Reinvestments Redemptions Ending Balance $21,301,859.84 $0.00 $15,611.82 $1,000,000.00 $20,317,471.66 ites-a' � ARES Tik11S TOT• '6-ANS oii La TR7 S TION PRO TRANSACTION SHARES OWNED I .-.�..._ .... __ . _ - •vim - �'a. as. .- . . . 11/01/03 Beginning Balance 21,301,859.840 11/13/03 11/13/2003 Redemption-Wire Red. $1,000,000.00- $1.00 1,000,000.000- 20,301,859.840 11/30/03 12/1/2003 Accrual Income Div Reinvestment-DIV $15,611.82 $1.00 15,611.820 20,317,471.660 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.92%. THE ANNUALIZED YIELD IS 0.92%. ..y '" "' •. CITY OF PALM DESERT :/r I INVESTMENT & FINANCE COMMITTEE ,j 2 AGENDA ballsechi December 17, 2003 2:00 p.m. dra ti°$Zy� ,j North Wing Conference Room Nfrt° 41E3,.°40 I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. COMMITTEE MEMBER REPORTS V. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE INVESTMENT & FINANCE COMMITTEE OR AUDIENCE REQUEST ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION V. CONSENT ITEMS HELD OVER, OF THE AGENDA. A. Approval of Minutes Rec: Approve minutes of the regular meeting of November 19, 2003, as submitted. Action: 1 121703 wp0 INVESTMENT & FINANCEOMMITTEE AGENDA December 17, 2003 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November 2003 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for November 2003. Action: B. State of California Local Agency Investment Fund Balance for the month of November 2003 Rec: Informational item for the Committee to review. No action required C. California Asset Management Program (CAMP) November 2003 Statements Rec: Informational item for the Committee to review. No action required D. City and Redevelopment Agency Monthly Financial Report for City Council for November 2003 Rec: Report and submit to City Council Action: E. Parkview Professional Office Buildings - Financial Report for November 2003 Rec: Review and file report Action: 2 121703.wpd INVESTMENT & FINANCE•MMITTEE • AGENDA December 17, 2003 F. Palm Desert Golf Course Facilities Corporation Financial Information for November 2003 Rec: Review and file report Action: VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status report on issuing new bonds Action: X. NEXT MEETING - To be discussed. Xl. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 101h d of December, 2003. Di a Lea , R ring ecretary 3 121703.wpd Finance Department !ln h p "` MEMORANDUM a �o�: To: Records Technician From: Diana Leal, Administrative Secret a(1) Subject: Investment and Finance Committee Meeting Date: December 26, 2003 Attached, for your records,is a copy of the December 17,2003 Investment and Finance Committee meeting attendance register. Thank you for your assistance. • Attachments (1) G:\Finance\Diana Leal\Wpdocs\Investment Committee\2002 Memos\City Clerk\2003\10-22-03attend.wpd • m z lit A la _ c = 00 w e a A _ IQ _ 1 . � � . \ � . 'IN ^ k - } . _ ( n . § \ 0 « $ � x �i _ki ,„ , 0 ; ,(0 � � \ � tlH\ ƒ ] �/ § ?I‘j / / } ƒ 7 a H 2 � � 7 ) e & \ 2 \ \ / § et E ? ) § ( n 3 �cio � / \ k z.. + , q § k ° g 2 ° % ( 2 } N 2 $ / \ E � » \ a E : et / # _ § Ren § ) ) e \ � \ til trl M o » % \ $ 0 0 ............. CITY OF PALM DESERT I "' I '� f' . INVESTMENT & FINANCE COMMITTEE .e d I AGENDA 1. t- r/ December 17, 2003 2:00 p.m. sot 3T�4°, North Wing Conference Room .•.arF�9 75J••• CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. COMMITTEE MEMBER REPORTS V. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE INVESTMENT & FINANCE COMMITTEE OR AUDIENCE REQUEST ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION V. CONSENT ITEMS HELD OVER, OF THE AGENDA. A. Approval of Minutes Rec: Approve minutes of the regular meeting of November 19, 2003, as submitted. Action: 1 121703.wpd INVESTMENT & FINANCE•MMITTEE • AGENDA December 17, 2003 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November 2003 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for November 2003. Action: B. State of California Local Agency Investment Fund Balance for the month of November 2003 Rec: Informational item for the Committee to review. No action required C. California Asset Management Program (CAMP) November 2003 Statements Rec: Informational item for the Committee to review. No action required D. City and Redevelopment Agency Monthly Financial Report for City Council for November 2003 Rec: Report and submit to City Council Action: E. Parkview Professional Office Buildings - Financial Report for November 2003 Rec: Review and file report Action: 2 121703.wpd • • INVESTMENT & FINANCE•MMITTEE AGENDA December 17, 2003 F. Palm Desert Golf Course Facilities Corporation Financial Information for November 2003 Rec: Review and file report Action: VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status report on issuing new bonds Action: X. NEXT MEETING - To be discussed. XI. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 10`h y of December, 2003. i a Leal ec rdi Secretary 3 121703.wpd • •"' CITY OF PALM DESERT ,k t INVESTMENT & FINANCE COMMITTEE ri� Minutes b` +h .�� __g•cr November 19, 2003, 2:00 p.m. �a t. ,,.r° North Wing Conference Room I. CALL TO ORDER A regular meeting was called to order by Assistant Finance Director on Wednesday, November 19, 2003 at 2:04 p.m. II. ROLL CALL Present: Absent: Paul S. Gibson, Finance Director Dave Erwin, City Attorney Jean Benson, Mayor Murray Magloff Bob Spiegel, Mayor Pro-Temp Russ Campbell Thomas Jeffrey, Deputy City Treasurer Carlos Ortega, City Manager Bill Veazie Everett Wood Also Present: Steve Aryan, Assistant to the City Manager Justin McCarthy, ACM/Director of Redevelopment Dennis Coleman, RDA Finance Manager Rodney Young, General Manager Desert Willow Diana Leal, Recording Secretary Guests: None III. ORAL COMMUNICATIONS None. IV. COMMITTEE MEMBER REPORTS None. 1 111903.wpd INVESTMENT & FINANCE•MMITTEE • MINUTES November 19, 2003 V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Spiegel and seconded by Ms. Benson to approve the Minutes of the October 22, 2003 meeting as submitted with Mr. Gibson abstaining. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for October 2003 Mr Jeffrey reported that, for the month ended October 31, 2003, the book value of the City Portfolio was approximately$174.1 million. The City earned approximately $175,000 in interest during that month. Portfolio yield-to- maturity was approximately 1.61%. For the month ended October 31, 2003, the book value of the RDA Portfolio was approximately $144.3 million. The RDA earned approximately $162,000 in interest during that month. Portfolio yield-to-maturity was approximately 1.30%. Mr. Spiegel asked for a status report on the financial condition of the Ford Motor Company. Mr. Jeffrey replied that Standard and Poor's (S&P) had recently downgraded Ford long-term debt from "BBB" to "BBB -", which is minimum investment grade. This downgrade was based upon Ford's projected performance over the next three to four years, taking into account Japanese competition and industry overcapacity. Previously, S&P had indicated that it would only downgrade Ford if it failed to breakeven in 2003. Somewhere in mid-stream, S&P changed its review criteria. S&P said that it would probably not review Ford again for another two years, unless something dramatic happens. Moody's is adhering to its earlier position that its year-end credit review of Ford will be based primarily on Ford's performance in 2003. There is a significant difference between S&P's and Moody's current Ford ratings. Moody's still rates Ford at "A3", which is equivalent to three notches above S&P's credit rating of "BBB -". 2 111903 wpd INVESTMENT & FINANCE OVIMITTEE IIMINUTES November 19, 2003 Mr. Jeffrey commented that he was not overly concerned about the S&P downgrade since Ford's cash position has increased from $16 billion to $28 billion over the last 12 months. Although Ford has lost some market share over that period, it is largely because Ford has stopped making less profitable automobile models. Furthermore, there is a substantial difference of opinion between Moody's and S&P on how to rate Ford. The City Treasury staff regards Moody's as the better of the two credit rating services. In seven months' time, most of the Ford medium-term notes that the City currently owns will have matured. The remaining outstanding Ford notes are being used to finance the City's Retiree Health Program. At this time, there are no indications that Ford is at risk, in terms of becoming insolvent. Quarterly Account Statements on Deferred Compensation Plans Mr. Jeffrey said that he was distributing the third quarter 2003 reports from ICMA and Nationwide on the City's 457 Plan, for information purposes only. Mr. Gibson said that it doesn't count as City cash and is therefore not shown on the City's investment schedules. State law requires that the City prepare a report. Mr. Wood asked if the City was responsible for providing accounting for the deferred compensation funds. Mr. Gibson said that the City collects the money from the employees and transmit it to the company. This goes back to federal law which stated that the employees could not have the funds in the employees' names so that they could avoid the tax. Recently, the law was changed and it was made into a trust. Even though the City has no control of the funds, State law requires that the City provide a report. B. State of California Local Agency Investment Fund Balance for the month of October 2003 Mr. Ortega commented that the City and the Redevelopment Agency have both invested the maximum amount that can be deposited in LAIF. C. California Asset Management Program (CAMP) October 2003 Statements There being no business issues to report, discussed shifted to the next agenda item. D. Revised 2003 Policies and Procedures Mr. Jeffrey said that the Investment Committee has reviewed, and the Council has approved, the Palm Desert Treasury Policies and Procedures for 2004. Mr. Jeffrey then distributed the policies and asked Committee members to insert the revised policies in their Treasury Policy and Procedure Manuals. Mr. 3 111903.wpd INVESTMENT & FINANCESIIMITTEE • MINUTES November 19, 2003 Wood asked if the new policies replaced the prior policies. Mr. Jeffrey replied that they did. E. City and Redevelopment Agency Monthly Financial Report for City Council for September 2003 Mr. Gibson said that the City received a hit through a CPA firm from a company called Interval International that is a timeshare company. This company transfers shares with other companies/development. An example would be if a person has a week in Palm Desert and wants to transfer their share to stay at the Marriott in Maui. This company provided the City with transient occupancy tax (TOT) for the last 3 years in the amount of$521,000. TOT will be collected from this company on a monthly basis from now on. Mr. Spiegel asked if this amount was shown in the report presented. Mr. Gibson said that it is not reflected as it was recently deposited after the Council accepted the provisions associated with the transaction. Ms. Benson asked how the City was made aware of the operation. Mr. Gibson said that he believes that there was a class action law suit against the company that triggered the payment to various entities of which the City was one. Ms. Benson asked if there were other companies that may be in the same situation. Mr. Gibson said that there is another company that is being looked at to see if they fall under the same category. The company that is paying the TOT is a company where a member pays $300/year for membership. Members can trade ownership in timeshares with other members. This company deals with approximately 90% of these type of exchanges. Mr. Spiegel asked what period the sales tax was based on and if the Westfield Shopping mall remained strong. Mr. Gibson said that the last quarter received was in September and it was for the 2nd quarter of the year. The mall remains strong. Mr. Gibson said that the audit changes for accruals for last year have been requested and the report presented has more realistic monies to compare last year to this year. Mr. Spiegel said that the City shows a decrease in the State's subvention. Mr. Gibson said that the State's subvention deals with the Department of Vehicles fee. The first three months they instituted the decrease but did not start collecting at the DMV. The state said that they would take the money away from the Cities and repay in three to five years once they get out of this bad financial situation. The City will lose $1.8 million in decreased fees. 4 111903.wpd INVESTMENT & FINANCE •IIMITTEE MINUTES November 19, 2003 Mr. Spiegel asked if the City has received any franchise fees. Mr. Gibson said that it is a matter of timing. Typically, what the City receives is from the Waste Management. Sometimes they send it on a monthly basis and at other times it is done on a quarterly basis. Bob Kohn is looking into why the City has not received any monies. Mr. Wood asked if the City regulates when Waste Management submits their payments. Mr. Gibson said that the agreement indicates that they can send their money on a quarterly basis. F. Parkview Professional Office Buildings - Financial Report for October 2003 Mr. Gibson said that the City received a notice from the State indicated that they may be revisiting all of the leases and may be rethinking how much space they have with the City and all other entities in the state that they rent from depending on how they cut back on their departments. The City expects to know what they will require by January. The State was trying increase their space to have more staff, however, they have kept it the same. The Department of Rehabilitation combined two offices by bringing in an office from Blythe. Mr. Gibson said that he gave Mike McConnell a report that shows what is currently being used by the Fire Marshall and what is available for the Fire Marshall to move into. If the Fire Marshall agrees to the move, the state will technically lose their conference room space, however, a small conference room can be used to make up for the lost space. Mr. Gibson expects that it will be March or April before he receives a response as they will not need to leave their current space until July or so. The space will be ready for move in by January or whenever they decide to do so. New carpeting and painting can be done prior to their move. G. Palm Desert Golf Course Facilities Corporation Financial Information for September 2003 Mr. Young said that the first quarter they did not do so well. The October was an excellent month where they picked up 25% of what they were down in September. He expects to pick up another 50% in November and slightly more in December. The net operating income will be down by $31,000 by the end of the second quarter. A lot of the variances that took place in the first quarter was due to overseeding and changing the golf courses along with additional revenues and additional expenses that were due early. There was an outside additional expenses that came early such as an additional fee delivery that is scheduled for November compared to budget. 5 111903 wpd INVESTMENT & FINANCESMMITTEE • MINUTES November 19, 2003 The revenues are getting back to where the budget should be. The food and beverage operation was $10,000 over in October and $31,000 over in revenues. Payroll was over budget in September and they received a majority of it back in October. The expenses, $78,000, was the November seed delivery that was received in October. They did well in October. November is doing well. They will be busy through the weekend. They have a group from the Marriott on Saturday that will be paying for 120 - 140 players at $30/player that will be playing. They are sold out through Thanksgiving for Friday and Saturday following Thanksgiving. They have 130 players on the sheet book. They will have one golf course that will accommodate 150-160 players. The warm weather is perfect. Firecliff should come out very well and Mountain View is coming along. December looks good for the Christmas party and there will only be a few days open. Mr. Ortega invited Mr. Veazie's band to play at the Committee/Commission's Christmas party on December 13`". Mr. Ortega said that Mr. Veazie's band was an excellent band that has played in New York. VIII. CONTINUED BUSINESS - None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that they are possibly going to go before the Council either in December or January for a refinancing opportunity for the 1998 Canyons of Bighorn Assesment District outstanding bonds. They are working out a few things. There is a separate JPA with the County and the Redevelopment Agency (RDA) working on the financing of the animal shelter. Once all the details are worked out, they will price the bonds on December 2. It looks like the closing will be on December 18. X. NEXT MEETING - Wednesday, December 17, 2003 at 2:00 p.m. 6 111903.wpd INVESTMENT & FINANCEirMITTEE MINUTES • November 19, 2003 XI. ADJOURNMENT There being no further business, the meeting was adjourned by Chairman Gibson at 2:39 p.m. Respectfully submitted, Diana Leal, Recording Secretary 7 111903.wpd City of Palm Desert ............ el % City and Redevelopment Agency Portfolios '. rem i:r F COMPLIANCE ANALYSIS AND INVESTMENT REPORT ' eel F - t-ef, November 2003 .". < Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The Federal Open Market Committee (FOMC) met on 9 December and left the Federal Funds Rate unchanged at 1%, a 45- year low. Although the FOMC repeated its commitment to kept interest rates low for a"considerable period," it indicated that it no longer views deflation as the predominant risk. This time, the FOMC presented a more optimistic view of the economy, citing a brisk expansion in output and a modest improvement in the labor market. The consensus among analysts is that the FOMC will probably not raise short-term interest rates until late 2004-early 2005. The presidential election year theory also supports a late-year rate hike by the FOMC. If so, then the City's investment portfolio yields will not significantly improve for another 12-15 months. Unlike previous economic cycles, the FOMC will be using rising inflation as a trigger for rate increases -- not economic growth. The FOMC is concerned that the current recovery may sputter out, like other economic recoveries over the last three years, since it is largely fueled by tax cuts and last summer's refinancing boom which has now slowed. After three years of false hopes,financial market scandals, and a loss of 2.5 million jobs (many permanent), an increasingly disillusioned and skeptical public must also be persuaded to spend money in order to sustain the recovery. U.S. economic growth prospects, however, appear to be good, with 2004 economic growth projected at 4.4%. Separately, Moody's downgraded California's General Obligation Bond rating from "A3"to"Baal", due principally to the VLF cut. Pcuc'S. Gitwn, C.C-,y r Treasurer PORTFOLIO STATISTICS Dollars in Thousands NOV-03 OCT-03 SEP-03 AUG-03 JUL-03 JUN-03 CITY Month-End Book Value*** $ 132,138 $ 134,142 $ 138,363 $ 185,209 $ 175,837 $ 178,187 Month-End Market Value*** $ 132,214 $ 134,231 $ 138,561 $ 185,222 $ 175,744 $ 178,198 Paper Gain (Loss) $ 76 $ 89 $ 198 $ 13 $ (93) $ 11 Prior Year Book Variance $ (10,382) $ (9,912) $ (32,060) $ 4,466 $ (13,531) $ (17,680) Interest Earnings $ 169 $ 175 $ 176 $ 211 $ 213 $ 225 Yield-To-Maturity 1.61% 1.61% 1.62% 1.43% 1.46% 1.58% Weighted Maturity(Days) 94 94 93 69 71 71 Effective Duration 0.17 0.17 0.19 0.14 0.15 0.16 RDA Month-End Book Value*** $ 144,184 $ 144,220 $ 152,893 $ 123,315 $ 100,551 $ 99,266 Month-End Market Value*** $ 146,322 $ 146,360 $ 155,033 $ 125,431 $ 102,881 $ 101,611 Paper Gain (Loss) $ 2,138 $ 2,140 $ 2,140 $ 2,116 $ 2,330 $ 2,345 Prior Year Book Variance $ 51,423 $ 49,336 $ 53,672 $ 23,190 $ (14,515) $ 6,618 Interest Earnings $ 155 $ 162 $ 161 $ 146 $ 136 $ 144 Yield-To-Maturity 1.29% 1.30% 1.28% 1.36% 1.56% 1.71% Weighted Maturity(Days) 87 87 82 102 139 140 Effective Duration 0.03 0.04 0.04 0.06 0.07 0.08 *** Omits SLGSs. Cite Palm Desert -- Portfolio Characteristic 30 November 2003 Dollars in Thousands Ageing Interval Market Value l 1 < 1M $ 63,335 General Fund Ageing <2M - <3M 5,349 100 <6M - 80 - 80 < 1YR 4,619 e <2YR - 0 60 - <3YR r 40 - <4YR 5,799 0 a < 5YR - 20 - 7 6 > 5YR - 0 . 0 rn 0 r1 0 Total: $ 79,102 <1M <2M <3M <6M <1YR <2YR Ratings* Market Value Credit Quality' Aaa Aaa $ 39,081 31°0 Unrated** 72,786 A 15,766 Al/P 1 - A Unrated" Total: $ 127,633 12% 57% K / Sector Market Value Asset Allocation' LAIF Money Market Funds $ 39,082 31% LAIF 40,000 RDA Loan 32,785 MTNs 15,766 Money Market U.S.Treasury - Funds , RDA Loan Federal Agency - 31% 26% Commercial Paper - Total: $ 127,633 I MTN K 12% / Month City Yield LAW Yield Variance Performance! Dec02 1.93 2.20 -0.27 • Jan03 1.63 2.10 -0.47 2.9 Feb 1.63 1.95 -0.32 ' Mar 1.48 1.90 -0.43 2.5 Apr 1.45 1.86 -0.41 ' May 1.62 1.77 -0.15 m 2.1 Jun 1.58 1.70 -0.12 • > Jul 1.46 1.65 -0.20i Aug 1.43 1.63 -0.20 1.3 , Sep 1.62 1.64 -0.01 Dec021an03 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Oct 1.61 1.60 0.01 Nov 1.61 1.57 0.03 Ia LAIF Yield OCity Yield C. / * Moody's Credit Ratings `* LAIF,and City Loan to RDA Page 2 of 6 City of Palm Desert Portfolio Holdings 30 November 2003 Market Ratings IPar Value I Issuer I Coupon I Maturity Cost YTM Price I Value Moody's Medium-Term Notes $ 3,300,000 FORD MOTOR 5.75 2/23/04 $ 3,324,159 2.48 100.98 $ 3,332,324 A3 $ 3,000,000 FORD MOTOR 7.20 •6/15/07 $ 3,135,292 5.75 105.43 $ 3,163,008 A3 $ 2,500,000 FORD MOTOR 7.20 6/15/07 $ 2,612,743 5.75 105.43 $ 2,635,840 A3 $ 2,500,000 FORD MOTOR 7.50 6/15/04 $ 2,561,354 2.84 102.57 $ 2,564,160 A3 $ 2,000,000 FORD MOTOR 6.70 7/16/04 $ 2,042,921 3.17 102.73 $ 2,054,670 A3 $ 2,000,000 GENERAL MOTORS 6.38 1/30/04 $ 2,014,062 2.04 100.82 $ 2,016,376 A3 I $ 15,300,000 Subtotals $ 15,690,532 3.77 $ 15,766,378 LGIP $ 40,000,000 L.A.I.F. 0.00 12/1/03 $ 40,000,000 1.57 100.00 $ 40,000,000 NR $ 40,000,000 Subtotals $ 40,000,000 1.57 $ 40,000,000 LGIP $ 20,317,472 C.A.M.P. 0.00 12/1/03 $ 20,317,472 0.92 100.00 $ 20,317,472 N/A • $ 20,317,472 Subtotals $ 20,317,472 0.92 $ 20,317,472 Pooled Funds --AIM $ 18,763,900 PRIME PORTFOLIO 0.00 12/1/03 $ 18,763,900 0.67 100.00 $ 18,763,900 Aaa $ 18,763,900 Subtotals $ 18,763,900 0.67 $ 18,763,900 City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 0.00 12/1/03 $ 32,785,480 1.57 100.00 $ 32,785,480 NR $ 32,785,480 Subtotals $ 32,785,480 1.57 $ 32,785,480 Total Investments $ 127,166,852 $ 127,557,384 $ 127,633,230 Cash $ 2,097,666 CITY MAIN CHKG 0.00 12/1/03 $ 2,097,666 N/A 100.00 $ 2,097,666 NR $ 1,833,969 OFFICE COMPLEX CHKG 0.00 12/1/03 $ 1,833,969 N/A 100.00 $ 1,833,969 NR $ 383,067 DESERT WILLOW CHKG 0.00 12/1/03 $ 383,067 N/A 100.00 $ 383,067 NR $ 243,345 RECREATIONAL FAC CHKG 0.00 12/1/03 $ 243,345 N/A 100.00 $ 243,345 NR $ 22,293 OFFICE COMPLEX TRUST 0.00 12/1/03 $ 22,293 N/A 100.00 $ 22,293 NR $ 4,580,338 Subtotals $ 4,580,338 N/A $ 4,580,338 Total Cash and Investments $ 131,747,190 $ 132,137,723 $ 132,213,568 NR=Not Rated Page 3 of 6 Palm Dese•development Agency-- Portfolio CharCeristics 30 November 2003 Dollars in Thousands Ageing Interval Market Value Portfolio Ageing w/o SLGssI < 1 M $ 89,386 <2M 92 < 3M 181 100 90 - - < 6M 80 - < 1YR 7,077 e 70 - <2YR - 0 60 - '0 50 - <3YR - r 40 - <4YR - o°, 30 - < 5YR - 20 - 7 > 5YR - 10 - 0 0 0 1-I 0 0 0 0 Total: $ 96,644 < 1M <2M <3M <6M < 1YR <2YR <3YR <4YR Quality* Market Value Credit Quality' Aaa $ 83,124 Unrated** 60,876 • Aaa 2 Aa - 58% A Unrated** Al/P1 - 42% Total: $ 144,000 `\ / Sector Market Value Asset Allocation) U.S. Treasury $ 7,258 - Money Market Funds 75,866 Money Market "*" - :, LAIF 60,876 Funds Federal Agency - 53% Commercial Paper - a Corporate Bonds - U.S.Treasury LAIF Total: $ 144,000 5% 42% K / Month RDA Yield LAIF Yield Variance Performance' Dec02 1.95 2.20 -0.25 Jan03 1.76 2.10 -0.34 Feb 1.66 1.95 -0.28 Mar 1.64 1.90 -0.26 2.2 Apr 1.74 1.86 -0.12 e May 1.71 1.77 -0.06 m ` • • - Jun 1.71 1.70 0.01 i 1.7 ?I r Jul 1.56 1.65 -0.09 li Aug 1.36 1.63 -0.27 1.2 :� _,� :® i® i■ Sep 1.28 1.64 -0.36 Dec02Jan03 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Oct 1.30 1.60 -0.30 Nov 1.29 1.57 -0.28 ®LAIF Yield ORDA Yield K J * Moody's Credit Ratings ** LAIF • Page 4 of 6 Palm Desert Redevelopment Agency Portfolio Holdings 30 November 2003 Market Ratings IPar Value j Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody's U.S.Treasury--Discount $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 99.79 $ 180,629 Aaa $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 99.08 $ 7,076,999 Aaa $ 7,324,000 Subtotals $ 5,119,839 5.54 $ 7,257,628 LGIPs $ 40,000,000 L.A.I.F. 0.00 12/1/03 $ 40,000,000 1.57 100.00 $ 40,000,000 NR $ 6,202,323 L.A.I.F. (HOUSING) 0.00 12/1/03 $ 6,202,323 1.57 100.00 $ 6,202,323 NR $ 9,684,507 L.A.I.F. BOND PROCEEDS 0.00 12/1/03 $ 9,684,507 1.57 100.00 $ 9,684,507 NR $ 4,989,445 L.A.I.F. BOND PROCEEDS 0.00 12/1/03 $ 4,989,445 1.57 100.00 $ 4,989,445 NR $ 60,876,276 Subtotals $ 60,876,276 1.57 $ 60,876,276 LGIP $ 31,658,154 C.A.M.P. 0.00 12/1/03 $ 31,658,154 0.92 100.00 $ 31,658,154 N/A $ 31,658,154 Subtotals $ 31,658,154 0.92 $ 31,658,154 Pooled Funds AIM $ 44,208,321 PRIME PORTFOLIO 0.00 12/1/03 $ 44,208,321 0.67 100.00 $ 44,208,321 Aaa $ 44,208,321 Subtotals $ 44,208,321 0.67 $ 44,208,321 Total Investments $ 144,066,751 $ 141,862,590 1.29 $ 144,000,379 Cash $ 2,002,308 HOUSING AUTH CHKG 0.00 12/1/03 $ 2,002,308 N/A 100.00 $ 2,002,308 NR $ 319,335 HOUSING AUTH TRUST 0.00 12/1/03 $ 319,335 N/A 100.00 $ 319,335 NR $ 2,321,643 Subtotals $ 2,321,643 $ 2,321,643 Total Cash and Investments $ 146,388,394 $ 144,184,234 $ 146,322,022 NR= Not Rated Page 5 of 6 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 30 November 2003,the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectfully submitted on 17 December 2003, Pcucls.. Edbaory C c.,y 7 City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS ICalifornia Government Code I City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality % of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized(1) 53601(b) U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 3.6% 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized 53601(e) Federal Agencies 5 Years No Limit 5 Years 30% 0.0% 0.0% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 & P-1 - - 53601(g) Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25% A-1+or P-1 0.0% 0.0% 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - - 53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - - 53601(i) Reverse Repos 92 Days 20% Not Authorized 53601(j) Medium-Term Notes 5 Years 30% A 5 Years 30% A 12.3% 0.0% 53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA&Aaa 30.6% 53.5% 53601(I) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA(Security) 16429 LAIF No Limit No Limit 31.4% 42.9% (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 74.3% 100.0% (2) Maximum limit for mutual funds, excluding bond proceeds. * Certified California Municipal Treasurer Page 6 of 6 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER . o Clfr SACRAMENTO f-I�`i 'i��'�F' lt i r _Lt Local Agency Investment Fund L f" RIME a;' " PO Box 942809 TUB E'`,�L Sacramento, CA 94209-0001 t Q IQ: 1/9 (916) 653-3001 November, 2003 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER • SACRAMENTO C!rY OF Fr L%ti ' St RT Local Agency Investment Fund ' 'MEW PO Box 942809 103 nEc n yi Sacramento, CA 94209-0001 ) If?: 4 7 (916) 653-3001 November, 2003 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER• • SACRAMENTO cifY•O,i PAI M 1v3c:gRT e Local Agency Investment Fund E DEl`'i ncNT PO Box 942809 211!3 O E -0 hij t0: Sacramento, CA 94209-0001 `+9 (916) 653-3001 November, 2003 Statement PALM DESERT HOUSING AUTHORITY Account Number : 25-33-003 Attn: DEPUTY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 99260-2578 Account Summary Total Deposit : 0.00 Beginning Balance : 6,202,323.45 Total Withdrawal : 0.00 Ending Balance : 6,202,323.45 Page : 1 of 1 r A CALIFORNIA ASSET STATEMENT MANAGEMENT PROGRAM JOINT POWERS AUTHORITY SO CALIFORNIA STREET 23RIJ FLOOR SAN FRANCISCO CALIFORNIA 941 I 1 FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 11/30/2003 PALM DESERT REDEVELOPMENT AGENCY ACCOUNT NUMBER: 553-02 GENERAL FUND ATTN: PAUL GIBSON FUND NAME: Cash Reserve Portfolio 73-510 FRED WARING DRIVE PALM DESERT,CA 92260-2578 Page 1 of 1 Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 11/30/2003 $73,154.23 $0.00 31,658,154.230 $31,658,154.23 nsactton D Q:41/1/ 0030 11 30/_, a c Beginning Balance Purchases Reinvestments Redemptions Ending Balance • $31,634,295.58 $0.00 $23,858.65 $0.00 $31,658,154.23 T- ^:5- eljr..g i...re tl0.G.itOU Il .j_ .1'a,7AL C IT:3 SY_51t asif.altelIlL°1u 7 IUC' SA L°U� G I` .SHARE o1T%L1J. 11/01/03 Beginning Balance 31,634,295.580 11/30/03 12/1/2003 Accrual Income Div Reinvestment-DIV $23,858.65 $1.00 23,858.650 31,658,154.230 • Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.92%. THE ANNUALIZED YIELD IS 0.92%. • CALIFORNIA ASSET STATEMENT MANAGEMENT PROGRAM IOINT POWERS AUTHORITY 50 CALIFORNIA sTrtei.T 23R13 FLOOR SAN FRANCISCO CALIFORNIA 94I I I FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 11/30/2003 CITY OF PALM DESERT ACCOUNT NUMBER: 553-00 OPERATING FUND 73-510 FRED WARING DRIVE FUND NAME: Cash Reserve Portfolio PALM DESERT,CA 92260 Page 1 of 1 _t.`. '-a.`u�vlJ.�-�co. 1.. *s>°Wcas '...�5r,..,...., aa� Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 11/30/2003 $461,566.68 $0.00 20,317,471.660 $20,317,471.66 •`Slt.ir 3 m a eV-1(T19ar O. i 1 t o a. Beginning Balance Purchases Reinvestments Redemptions Ending Balance $21,301,859.84 $0.00 $15,611.82 $1,000,000.00 $20,317,471.66 } cirs VIA69 ' o oAr (ol t ' o part - • SACTION ^' (^,Y1AA100 11/01/03 Beginning Balance 21,301,859.840 11/13/03 11/13/2003 Redemption-Wire Red. $1,000,000.00- $1.00 1,000,000.000- 20,301,859.840 11/30/03 12/1/2003 Accrual Income Div Reinvestment-DIV $15,611.82 $1.00 15,611.820 20,317,471.660 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.92%. THE ANNUALIZED YIELD IS 0.92%. • • 0 E en ra r C tn w a.) SE m O 2 CO G a v C ti y 0 C y 'L t/] o O CT • en G O Q C c- 0 ea c o x K K o DJ Z W U w z17 CD Z p�� d a o a o', o a o o a d o o a o 0 0 �' LILI ,. ` ,Q 7 V' M W T3 ^ h OL M co O M O Ih .� e®+ O .� N- .h. 01 Ov V' N O � O+ 01 ' ,•O 00 h 0 ® 2 m m 'a Q' 0 td 2 Q � 4 ' S Y p a 0 g a o N 7 n. o In off. 4N5 Q CO th+i vt In 00 O co O b ." WG ILL •a �n v. ry ,n a M oo- E„� h ... rn 0o O 0 o, o N O O O -- o h .-. 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Is c « rm. a o v o c F v z 0 cUrnF• Os I+ ., rnCp W a00. e• U -- O •w w City of Palm Desert • Parkview Office Complex • Financial Statement for Fiscal Year 2003-2004 November-03 November-03 # % YID YID # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues . 1 Rental $ 68,500 $ 71,588 $ 3,088 104.51V $ 342,500 $ 355,782 $ 13,282 103.88% Dividends/Interest $ 4,375 $ - $ (4,375) 0.00% $ 21,875 $ 216 $ (21,659) 0.99% Total Revenues $ 72,875 $ 71,588 $ (1,287) 98.23%J $ 364,375 $ 355,998 $ (8,377) 97.70% Expenses ): Professional-Accounting&Auditing $ 8,000 $ 8,000 $ - 100.00%1 j $ 40,000 $ 40,000 $ - 100.00% Professional-Consultants $ ., 6,000 $ 5,728 $ 272 95.46%; ; $ 30,000 $ 28,052 $ 1,948 93.51% Tenant Improvements $ 3,000 $ - $ 3,000 0.00% 1 $ 15,000 $ 7,120 $ 7,880 47.47% Repairs&Maintenance Building $ 8,000 $ 4,112 $ 3,888 51.40%i 1 $ 40,000 $ 42,936 $ (2,936) 107.34% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00%1 $ 11,500 $ - $ 11,500 0.00% Utilities-Water $ 150 $ 117 $ 33 78.10% $ 750 $ 542 $ 208 72.22% Utilities-Gas/Electric $ 8,000 $ 6,062 $ 1,938 75.77% - $ 40,000 $ 44,426 $ (4,426) 111.07% Utilities-Waste Disposal $ 700 $ 530 $ 170 75.77%1` $ 3,500 $ 2,652 $ 848 75.77% Telephone $ 200 $ 161 $ 39 80.62%) $ 1,000 $ 806 $ 194 80.58% Insurance $ 521 $ - $ 521 0.00%1 $ 2,603 $ - $ 2,603 0.00% Total Expenses $ 36,871 $ 24,710 $ 12,161 67.02%; $ 184,353 $ 166,534 $ 17,819 90.33% I I Operating Income $ 36,004 $ 46,878 $ 10,874 130.20% -$ 180,022 $ 189,464 $ 9,442 105.25% Equipment Replacement Reserve $ 14,000 $ 13,306 $ 694 95.04% $ 70,000 $ 66,530 $ 3,470 95.04% Net Income $ 22,004 $ 33,572 3 11,568 152.57%° $ 110,022 $ 122,934 $ 12,912 111.74%1 2004 Investment Reportlnv Report 2003 City of Palm Desert ` g ® Parkview Office Complex • Vacancy Rate Schedule by Suite November 2003 Suite Square No. Tenant Feet 73-710 Fred Waring Drive -Two (2) Story Building 100 Hanover 1,915 100A William Bonneheim 645 102 Bergren&Associates 1,360 103 National Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Coachella Valley Economic Partnership 928 108 - Assembly Rules Committee-Assemblyman Benoit 450 112 Senator Battin 1,741 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 • City/CVAG Conference Room 1,380 120 Duke Gerstal 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 University of California Riverside 604 203 Mountain Conservancy 480 205 Adopt-A-Class 700 208 Alzheimer's Association 960 210 Wilson,Pesota &Pichardo 3,040 2004 Investment ReportVacancy.Report 1 City of Palm Desert Parkview Office Complex • Vacancy Rate Schedule by Suite November 2003 - 211 State of California Department of Food &Agriculture 937 217 Joe B. McMillan,. Esq. 775 220 EPA-Moved From Suite 101A 1,607 222 Cove Commission-Fire Marshal 1,900 222 CITY Storage-Vacant 1,081 Total square footage(2 story Building) 31,562 Vacancy Rate-1,0S1/31,562= 3.43% 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--1,081/51,191 2.11% Occupancy Rate-50,110/51,191 97.89% • 2004 Investment ReportVacancy Report 2 t • City of Palm Desert Desert Willow Budget Vs Actual • For the month of October 2003 Budgeted Actual Budgeted Actual October October S Percentage Year to Year to S Percentage Revenue 2003 2003 Variance Variance Date Date Variance Variance Course Sr.Ground $ 349,735 $ 395,265 $ 45,530 113.02% $ 755,010 $ 728,991 $ (26,019) 96.55% Carts $ 23,395 $ 31445 $ 8,050 134,41% $ 80,987 $ 85.315 $ 4,328 105.34% Gott Shop $ 63,283 $ 75,027 S 11,744 118.56% $ 162,932 S 156,216 $ (6,7161 95.88% Range $ 2,750 $ 2,045 $ (705) 74.36% $ 4,385 $ 5,025 $ 640 114.60% Food&Beverage $ 114,984 $ 146,064 $ 31,080 127,03% $ 317,427 $ 324,187 $ 6,760 102.13% Interest Income $ 200 $ - $ (200) 0.00% $ 1,100 $ - $ (1,100) 0.00% Total Revenues $ 554.347 $ 649,846 S 95,499 117.23% $ 1,321,841 $ 1,299.734 S (22.107) 98.33$ -'"J Payroll Proshop $ 5,915 $ 6,666 $ (751) 112.70% $ ' 19,527 $ 23,115 $ (3,588) 118.37% Can $ 17,966 $ 18,132 $ (166) 100.92% $ 63,430 $ 63,044 $ 386 99.39% Course 8e Ground $ 138,441 $ 105,211 $ 33,230 76.00% $ 504,155 $ 517,063 $ (12,908) 102.56% Golf Operations $ 28,5.40 $ 19,484 S 9,056 68.27% $ 95,426 $ 81,538 $ 13,888 85.45% General&Administration $ 36,556 $ 37,468 $ (912) 102,49% $ 145,851 $ 153,353 $ (7,502) 105,14% Food&Beverage $ 63,050 $ 62,302 $ 748 98.81% $ 215,348 $ 224,638 $ (9,290) 104.31% Total Payroll S 290.* $ 249.263 S 41,205 85.81% $ 10437337 S 1,062751 $ (190141 101.82% Other Expenditures Perimeter Landscaping $ - $ - $ - 0.00% $ - $ - $ - 0.00% Proshop $ 3,650 $ 6,192 $ (2,542) 169.64% $ 7,730 $ 26,843 $ (19,113) 347.26% Proshop-COGS $ 26.736 $ 30,186 $ (3,450) 112.90% $ 82,146 $ 52,619 $ 29,527 6406% Can $ 14,540 $ 17,135 $ (2,595) 117,85% $ 50,450 $ 50,869 $ (419) 100.83% Course&Ground-North Course $ 66,934 $ 125,682 $ (58,748) 187,77% $ 356,661 $ 281,479 $ 75,182 78,92% Course&Ground-South Course $ 43,903 $ 60,673 S (16,770) 138.20% $ 194,266 $ 382,672 $ (188,406) 196,98% Course&Ground-Desert Pallet-N $ 1,005 $ 1,004 $ 1 99.90% $ 2,810 $ 2,219 $ 591 78.97% Course&Ground-Desert Pallet-S $ 405 $ 396 $ 9 97.78% $ 2,810 $ 1,817 $ 993 64.66% Golf Operations $ 2,425 $ 819 S 1,606 33.77% $ 3,265 $ 1,972 $ 1,293 60,40% General Sr Administration $ 67,337 $ 69,643 $ (2,306) 103.42% $ 239,485 $ 229,765 $ 9,720 95.94% Range $ 9,550 $ 9,198 $ 352 96.31% $ 9,750 $ 9,383 $ 367 96.24% Food&Beverage $ 21,612 $ 29,989 S (8,377) 138.76% $ 74,898 $ 76,951 $ (2,053) 102,74% Food&Beverage COGS $ 35,717 $ 45,926 $ (10,2091 128,58% $ 98,486 $ 105,430 $ (6,944) 107,05% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 100,000 $ 100,000 $ - 100.00% FinancinWLease $ 5,699 $ 5,581 $ 118 97.93% $ 22,860 $ 22,418 $ 442 98.07% (T .(Total Other Expenditures $ 324,513 $ 427,424 $ (102.911� 131.71% $ 1,245 617 $ 1,344 437 $ (98,820) 107 93%I Desert Willow Golf Academy Desert Willow Golf Academy $ 6,250 $ 7,786 $ 1,536 124.58% $ 23,250 $ 28,127 $ 4,877 120.98% COGS-Merchandise $ (5,715) $ (6,433) $ (718) 112,56% $ (22,439) $ (22,966) $ (527) 102.35% Other Expenditures $ (7,4251 $ (4,463) $ 1962 60,11% $ (17,525) $ (17,170) $ 355 97.97% Learning Center Income(Loss) $ (6,890) $ (3,110) $ 3,780 45.14% $ (16,714) $ (12,009) $ 4,705 71.85% Operating Income(Loss) $ (67,524) $ (29,951) $ 37,573 44.36% $ (984,227) $ (1,119,463) $ (135,236) 113.74% Equipment Reserve Replacement $ 71,955 $ 68,064 $ (3,8911 94,59% $ 287,820 $ 277,217 $ (10,6031 96 12% t Net Income Lass $ .139,477)n5� F%r' (1(98,0151 $ 41.464 70.27% $ .2 72047 $ (1,396480) $ 124 633) 10980%I ........ ta,ti. :varx^'a•••••bxf." o' resr:xs -s:wb,.. -wetvt t.•'a-.ai Snapshot of Golf Rounds Budgeted(mo) Actual(mo) Variance Variance% Budgeted(ytd) Actual(ytd) Variance Variance • Resident 1,640 1,898 258 116% 3,135 3,102 (33) 99% Non Resident 3,148 4,074 926 129% 13,025 13240 215 102% Other - II II 100% - 44 44 100% Complimentary 158 379 221 240% 913 1,376 463 151% Total 4,946 6,362 1,416 129% 17,073 17,762 689 104% • Folder:Desert Willow 2004:DW2004;Financial Statement Page 1 }! 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N 2 .8 " E 8 2 a >. m 'J ° 0 T to& ° L 8 T OO d ° L 8 T m & ° U . . • • o CO I > Ok' ilk'In / § •--. , - 2 , H kJ=I. alƒ . 61 0 \ � ` / m 2 \: \ w = : - } § $ . } / \ k } g3A /\\ \ 20 2 ? e . | % \ \_ \ \ 22 , . ; t on 0 zz \ { | §{ � t: N 0 LO TY N/ , • - / ° a , _ . -o 2 -\I 2 In / . < = " .E4 J 2 » d . , . : ! ) to \ CI .1a : } § 0 t )0 CO § { ! ; � § (\ 1 / \ & a f § k � k ° pi:# ; 3 a ¢: k4. j 00 ■ A co io 50 0 k `ro U IX \ § • • ® Desert Willow Breakdown of Rounds per point of sale system Desert Willow -Combined Analysis-October 2003 Resident 1,898 $ 85,410 $ 45.00 29.83% Non-Resident 4,074 $ 339,815 $ 83.41 64.04% Other ' 11 $ 110 $ - 0.17% Complimentary 379 $ 1,695 $ 4.47 5.96% 'Desert'Willow Totals 6,362 $ 427,030 $ 67.12 100.00% DW2004;POS AVG RD Page 9 • • • Desert Willow Breakdown of Rounds • per point of sale system FIRECLIFF COURSE- OCTOBER 2003 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee 1,554 $ 69,930 $ 45.00 28.65% Total Resident 1,554 $ 69,930 $ 45.00 28.65% Non Resident Advance Prime 465 $ 60,620 I $ 130.37 8.57% IROC Member/Guest 4 $ 240 $ 60.00 0.07% IROC Sunrise 35 $ 3,640 $ 104.00 0.65% IROC Prime 82 $ 8,528 $ 104.00 1.51% IROC Midday 16 $ 1,216 $ 76.00 0.29% Wholesale 1,125 $ 80,628 $ 71.67 20.74% Players Club 6 $ 330 $ 55.00 0.11% Sunrise 124 $ 16,120 $ 130.00 2.29% Midday 176 $ 16,720 $ 95.00 3.24% Sunset 524 $ 23,580 $ 45.00 9.66% Twilight 337 $ 22,655 $ 67.23 6.21% Fee Special Event Variable 783 $ 67,382 $ 86.06 14.44% Total Non Resident Rounds 3,677 $ 301,659 $ 82.04 67.79% Other Rounds Junior Walking 10 $ 100 $ - 0.18% Total Other 10 $ 100 $ - 0.18% Complimentary VIP 70 $ - $ - 1.29% PGA Member 60 $ 725 $ 12.08 1.11% PDHS/COD - $ - I 0.00% Employee 53 $ 50 $ 0.94 0.98% Total Complimentary 183 I $ 775 $ 4.24 3.37% Total Rounds (FireCliff) 5,424 $ 372,464 $ 68.67 100.00% DW2004;POS AVG RD Page 10 • Desert Willow Breakdown of Rounds • per point of sale system MOUNTAINVIEW COURSE- OCTOBER 2003 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee 344 $ 15,480 $ 45.00 36.67% Total Resident 344 $ 15,480 $ 45.00 36.67% Non Resident Posted Advance 4 $ 560 $ 140.00 0.43% IROC Member/Guest 4 $ 240 $ 60.00 0.43% IROC / Sunrise 2 $ 208 $ 104.00 0.21% IROC / Prime 19 $ 1,976 $ 104.00 2.03% IROC / Midday 2 $ 152 $ 76.00 0.21% Wholesale 82 $ 5,975 $ 72.87 8.74% Players Club 1 $ 60 $ 60.00 0.11% Prime 115 $ 14,950 $ 130.00 12.26% Sunrise 23 $ 2,990 $ 130.00 2.45% Midday 33 $ 3,135 $ 95.00 3.52% Sunset 30 $ 1,350 $ 45.00 3.20% Twilight 36 $ 2,520 $ 70.00 3.84% Fee Special Event Variable 46 $ 4,040 $ 87.83 4.90% Total Non Resident Rounds 397 $ 38,156 $ 96.11 42.32% Other Rounds Junior Walking 1 $ 10 $ - 0.11% Total Other 1 $ 10 $ - 0.11% Complimentary PGA Member 53 $ 805 $ 15.19 5.65% VIP 21 $ - $ - 2.24% COD / PDHS 85 $ - $ - 9.06% Champion Club 19 $ - $ - 2.03% Employee/ Guest 18 $ 115 $ 6.39 1.92% Total Complimentary 196 $ 920 $ 4.69 20.90% Total Round (Mountainview) 938 $ 54,566 $ 58.17 100% DW2004;POS AVG RD Page 11 • City of Palm Desert 411/ Desert Willow Cash Reserve Analysis for the month of October 2003 Cash Reserve Analysis One Month -Required Reserve $ 500,000.00 Cash on Hand $ 517,255.38 r variance- Favorable ( Unfavorable) ` $ 17,255.38 II • Page 12 Palnesert Recreation Facilities Corpoion Income Statement Oct-03 Oct-03 ft Budget Actual Variance Variance Food & Beverage Revenues $114,984 $146,064 $31,080 127.03% Total Revenues $114,984 $146,064 $31,080 127.03% Salaries $63,050 $62,302 $748 98.81% Cost of Goods Sold-F&B $35,717 $45,926 ($10,209) 128.58% Food & Beverage Expense $21,612 $29,989 ($8,377) 138.76% Total Expenses $120,379 $138,217 ($17,838) 114.82% Net Income (Loss) ($5,395) $7,847 $13,242 -145.45% Note: The above revenues and expenditures are also included in the Desert Willow analysis. DW2004,PDRFC Budget Page 1 • • ORDINANCE NO. 1017 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,AMENDING SECTIONS 2.20,2.34,2.60,AND 2.64 OF THE PALM DESERT MUNICIPAL CODE(AMENDING ORDINANCE NOS.99,390,553,861, 875, and 899), RELATIVE TO COMMITTEE/COMMISSION MEMBER REQUIREMENTS WHEREAS, the City Council adopted Ordinance No. 899 on January 14, 1999, establishing uniform criteria for members, including appointment dates, terms of office, and absences; and WHEREAS, the City Council has determined it is desirable to further define certain aspects of Committee or Commission Member service. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, that the following sections of the Palm Desert Municipal Code are hereby amended, as follows: Section 1. Planning Commission - Section 2.20 "Section 2.20.020 Terms of office. The Planning Commission shall consist of five (5) members to be appointed by the City Council by a minimum of three (3) affirmative votes, each of whom shall serve a term of four (4) years, or until his or her successor is appointed. The terms of appointment shall be as provided for in Section 2.34.010." Section 2. "Section 2.34,010 Terms of appointment— Residency requirement — Unexcused Absences — Term Length. A. The beginning date for all terms of appointment to any City Committee or Commission will be January 1 and the ending date will be December 31, with the exception of appointments made to fill unexpired terms of office, or appointments made to fill new positions created during the year, but which will all be ultimately based upon the calendar year thereafter. Following expiration of the term of office, each member shall continue to serve until either he or she is reappointed or his or her successor is qualified and appointed. B. All terms of office for City Committee and Commission members will be four years, unless otherwise specified in the establishing ordinance, resolution, or bylaws therefor. Each member of a Committee or Commission shall be eligible for reappointment at the discretion of the City Council, recognizing, however, that it is the • • ORDINANCE NO. 1017 City's goal to allow as many qualified and willing individuals as possible an opportunity to serve their community. • C. Residency within the City limits of Palm Desert shall be a requirement for appointment to a City Committee or Commission except in cases where the City Council deems it appropriate to appoint a nonresident to a board that has need of a specific expertise offered by a nonresident. D. Three unexcused absences from regular meetings in any one year (January 1 - December 31)shall constitute an automatic resignation of members holding office on boards that meet monthly. E. Six unexcused absences from regular meetings in any one year (January 1 - December 31) shall constitute an automatic resignation of members holding office on boards that meet twice monthly. F. Any or all members of any City Committee or Commission may be removed at any time, with or without cause, by a vote of the City Council." Section 3. "Section 2.34.020 Excused absence defined. An `excused absence' may be granted if the member is hospitalized due to illness, serving on jury duty, serving in the military, or has suffered a death in the family (spouse, parent/step-parent, grandparent, brother, sister, mother in-law, father in-law, child, grandchild, or any member of the immediate household)." Section 4. Public Safety Commission - Section 2.60 • "Section 2.60.030 Secretary to the public safety commission. The Assistant City Manager for Community Services shall be an ex-officio member of the Commission as well as the official secretary to said Commission for the maintenance of all records of their proceedings. In addition, staff members will be the Chief of Police, the Fire Chief, and the Risk Manager. Other ex-officio members shall be two members of the City Council, at least one of whom is a sitting member of the Cove Communities Services Commission." 2 ORDINANCE NO. 1017 Section 5. Housing Commission - Section 2.64 "Section 2.64.050 Term Each member of the Housing Commission shall serve a four-year term and shall otherwise be subject to the terms of membership pursuant to Section 2.34.010." Section 6. "Section 2.64.070 Absence from meetings. Absences from Housing Commission Meetings shall be recorded pursuant to.Sections 2.34.010(D) and 2.34.020." Section 7. The City Clerk shall certify to the passage and adoption of this ordinance and shall cause the same to be published once in the Desert Sun, a newspaper of general circulation, printed and published within the County of Riverside, and circulated within said City. BE IT FURTHER ORDAINED that adoption of this ordinance shall effectively supersede any provision for terms of office or policy for absences that may otherwise be currently in existence for any City Committee or Commission. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held this S`" day of May, 2003, by the following vote, to wit: AYES: CRITES, FERGUSON, KELLY, SPIEGEL, and BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ' i 4S.APYM. BENSON,AAYOR ATTEST: �JaCs RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 3 ............ • CITY OF PALM DART s INVESTMENT & FINANCE COMMITTEE I 11 1 tt Minutes 'A":� 14'h T December 17, 2003, 2:00 p.m. 'a Os is "e North Wing Conference Room "..=993 I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, December 17, 2003 at 2:06 p.m. II. ROLL CALL Present: Absent: Paul S. Gibson, Finance Director Dave Erwin, City Attorney Bob Spiegel, Mayor Buford Crites, Mayor Pro-Temp Thomas Jeffrey, Deputy City Treasurer Carlos Ortega, City Manager Russ Campbell Everett Wood Bill Veazie Also Present: Justin McCarthy, ACM/Director of Redevelopment Dennis Coleman, RDA Finance Manager Rodney Young, General Manager Desert Willow Diana Leal, Recording Secretary Guests: None III. ORAL COMMUNICATIONS Mr. Gibson mentioned that Mr. Murray Magloff announced his resignation from the Committee at the City of Palm Desert's holiday party. Mr. Veazie thanked the City and its staff for sending flowers to him while he was in the hospital. He also thanked Mr. Ortega for suggesting that Mr. Veazie's band play at the City's holiday party. Ordinance 1017 relative to committee/commission requirements was discussed. 1 1217o3•Pd INVESTMENT& FINANCE.MITTEE • MINUTES December 17, 2003 IV. COMMITTEE MEMBER REPORTS None. V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Spiegel and seconded by Mr. Veazie to approve the Minutes of the November 19, 2003 meeting as submitted. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November 2003 Mr Jeffrey reported that, for the month ended November 30, 2003, the book value of the City Portfolio was approximately $132.1 million. The City earned approximately $169,000 in interest during that month. Portfolio yield-to- maturity was approximately 1.61%. For the month ended November 30, 2003, the book value of the RDA Portfolio was approximately $144.2 million. The RDA earned approximately $165,000 in interest during that month. Portfolio yield-to-maturity was approximately 1.29%. The City's performance chart indicates has a slight edge over LAIF largely due to certain corporate investments the City has made. Mr. Spiegel asked Mr. Jeffrey if he thought that short-term interest rates would increase. Mr. Jeffrey responded that he expected the Federal Open Market Committee ("FOMC") to raise short-term interest rates towards the end of 2004, after the Presidential election. The FOMC will do so when they believe that inflation is beginning to revive. B. State of California Local Agency Investment Fund Balance for the month of November 2003 There being no business issues to report, discussion ensued to the next agenda item. 2 121703.wpd INVESTMENT & FINANCEOV1MITTEE • MINUTES December 17, 2003 C. California Asset Management Program (CAMP) November 2003 Statements There being no business issues to report, discussion ensued to the next agenda item. D. City and Redevelopment Agency Monthly Financial Report for City Council for November 2003 Mr. Wood asked what monthly amount would be collected from the company that recently submitted payment for occupancy tax for the past three years in a lump sum. Mr. Gibson said that he is unable to disclose this information as it is confidential. The City is pursuing another company and staff is drafting a letter that will be reviewed by the city attorney. Mr. Spiegel said that if the City is hit by the vehicle license fees and the sales tax, the City may be interested in raising the TOT as the City's TOT is the lowest in the valley. The raising of the TOT has to be voted upon by the people. Mr. Gibson said that a meeting with the hotels needs to be held prior to moving the item ahead and taking final action. Mr. Gibson said that the City has noticed a drop of 10% to 20% in how much the major hotels are collecting compared to last year. Mr. Campbell asked if the major hotels submit reports to the City on what they collect. Mr. Gibson said that the City audits the biggest hotel, the Marriott, on an annual basis. Mr. Ortega said that the projected amount is overstated and the City does not know if it will receive the funds back from the State. Mr. Gibson said that the City will receive all of the funds. The triple flip goes into effect on July of next year. Mr. Gibson said that the sales tax is doing well. It will be over the 13.575. The City's consultant MRC has indicated in their initial review that it will probably be $14 million this year. Staff has not seen the Christmas sales as yet. The mall is doing well, it was up 6% in the second quarter of the year. The State has announced that they will not be paying the City for January, February or March for the Department of Motor Vehicle fees due to the fact that they will reimburse those that overpaid higher fees. Public Works expenditure actuals are low as the slurry seal work has not been done. E. Parkview Professional Office Buildings - Financial Report for November 2003 Mr. Gibson said that in the past, funds for Parkview were transferred from the General Fund to the park fund for capital improvements. In light of the State taking the money they have been taking. They might reconsider that policy to 3 121703 wpd INVESTMENT & FINANCEOMMITTEE • MINUTES December 17, 2003 use for general fund purposes. This will be discussed in the council level. This is part of the consideration of looking at all the revenues. There is a $1.9 cut this year that will need to be taken into account. Mr. Spiegel said that there is a $1 million set aside for the tree that is being built at the park. Mr. Gibson said that the original $1 million was placed in that fund for the ampitheater. There is another $400,000 that needs to be transferred into the general fund. Mr. Gibson said that the Parkview Office building experienced its first rain after the roof was repaired. The two story had no leaks at all. There was a leak at the one story building where the plywood had to be renailed. It did have some leaks around the air conditioning unit. They did not mount their air conditioning properly which caused this problem. F. Palm Desert Golf Course Facilities Corporation Financial Information for November 2003 Mr. Young said that November was a good month. They are back in line. He forecasted that they would be within $30,000 net income to budget and they are about $15,000. They should regain most of this amount. By the end of the second quarter they should be back in line with the budget. Their average dollar is down. The rounds of golf year to date budget is $23,031 and actual is $24, 170 so they are little over 1,000 rounds over budget. The year to date actual versus the prior year, they are up $118,000 in revenues total between food and beverage and the golf operations. They are over budget on workers comp insurance by $55,000. The golf shop revenues is up over prior year by $14,000 and cost of goods is down by $1,000. They are well below industry average. Mr. Ortega said that the year to date at the end of October indicates $728,000 and as of the end of November it indicates $1,143,000. Was there a $415,000 increase for the month. Mr. Young said that November was a phenomenal month. There were over 6,000 rounds. Both golf courses were open in November for 9 days. Last year, this week, they only did $28,000 in green fees. One golf course is more than enough to use during this time of year. They are looking at resting Mountain View Course a day or two next week to allow the grass to be fertilized. This will help make it look better for the week after Christmas which is typically a busy week. They did good on Cost of goods for the month of September and October. Thanksgiving day was a $12,000 day. Payroll is doing well. Food and Beverage was over by about $6,000 in workers compensation. Mr. Young said that they begin serving breakfast in November, however, they don't expect that it will do well until January, February, March and April. They have many bookings for spring. Food and beverage is not doing well. 4 121703.wpd INVESTMENT & FINANCE•MMITTEE1111 MINUTES December 17, 2003 Mr. Ortega said that if one looks at the operating results, there was a turnaround of$121 ,000. Last month there was a negative of $29,000. Part of the $415,000 was due to the increase in sales. In October, there was a total revenue of$1,299,000. Total revenue was $1,971,000 making the difference $672,000. Mr. Wood asked if there was a report on the income from the timeshares. Mr. Gibson said that he will provide the committee with that report at the next meeting. These funds are used as payment for the necessary improvements. By law, Residence Inn and the Courtyard TOT cannot be disclosed. Mr. Spiegel asked what the city was receiving from Intrawest which is not TOT. Mr. Gibson said that the City can provide this information to the Committee. Mr. Ortega said that the information can be mailed to the committee members. He said that when he and Anthony Hernandez, Senior Financial Analyst added the Intrawest revenues, they came up with almost $700,000. Mr. Gibson said that this is done on June 30 only. The reason is that the fee collected from IROC is done once a year. This will be the last year the City receives a large contribution in accordance with the agreement. The fees collected will drop by about $1,500,000 next year. Mr. McCarthy said that the City has not received the statewide revenues as the City has not completed the interior parcels. This will contribute 50% more play. Mr. Young said that the report is looking better as these are the money making months. Mr. Gibson said that a recent newspaper article compared Desert Willow to Indian Wells courses. They have no depreciation included in their reports whereas the City does. There is a $900,000 difference on expenses. Mr. Wood asked why depreciation is reported. Mr. Gibson said that when staff researched the concepts of how to treat golf courses, staff selected the more conservative reporting procedures. VIII. CONTINUED BUSINESS - None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. 5 121703.wpd INVESTMENT& FINANCEOMITTEE • MINUTES December 17, 2003 B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that on December 3 they priced the bond issue for a JPA between Palm Desert Redevelopment Agency and the County of Riverside. The JPA was formed and bonds were issued on their behalf (the County). This is using their pass-through revenues from the RDA Project Area No. 1 and No. 3. The structure for this bond to obtain better rates and ratings was a pledge from the County's general fund. The bond was issued for three purposes: 1) raise money for the animal shelter, 2) raise money for a health clinic in Mecca, CA., and 3) to refund bonds that the Agency did on behalf of the County in 1996 to build facilities. In 1996, the County was having a hard time with their budget. They were facing a $48 million shortfall. The bond issue itself is $22.3 million. Staff priced early in the morning in a market that was strong, but at 10:00 a.m. the productivity figures came out and indicated that the productivity gain was the highest in 12 years. Everyone started shifting their money to the stock markets from the bond markets so the bond markets started retreating. Initial orders on the pricing were received. Staff asked the underwriters to go back and reprice based on some of the orders they received. Since the market started to retreat, staff wound up settling with what they had. Mr. Coleman said that the arbitrage yield that he usually reports to the Committee was 4.6722%. The all inclusive is 4.8%. The long end of the borrowing cost of this bond issue is 5%. One of the yields was 4.72% to yield 4.97%. More retail orders to go out to the street for those looking for yield. Those looking for (yield) protection bought 5% at 4.97%. This was insured and had underlying ratings. Staff obtained the insurance through XL capital Assurance Company. They are a new bond insurance company in California as of last year. They are AAA insured. There are four AAA bond insurers. They were aggressive with the insurance in terms of what it cost. They expected that the paper will trade at a 5 to 7 point basis difference. This bond issue raised almost $13. 8 million for two projects Mr. Coleman indicated earlier. It also saved money in the refunding in the prior Blythe issue. The usual rule of thumb is that a refunding is done and for savings purposes is to net present value at 3%. The present value savings on this dealing was 5.83%. This is an all around good deal for the County. Tomorrow is the closing date. Bond documents have been signed and everything has gone through. Mr. Ortega said that one of the things that one always wonders is that a City of the size of Palm Desert whether a good job of negotiating was done. The County has no complaints about using the City's team. Mr. Spiegel asked if there was a benefit to the City. Mr. Ortega said that the County would build it and not charge the City for the capital expense. This expense is about $6 million. The City is only going to pay for the operations. Mr. Gibson said that the City will save about $50,000 per year. It is staffs opinion that it is faster and easier to go through the City rather than the 6 121703.wpd INVESTMENT & FINANCEOMITTEE MINUTES • December 17, 2003 o MT-. Ortega said that it is a greater responsibility as all the documents need to be reviewed. Mr. Wood asked what the criteria was for insuring bonds and if it was competitive amongst the carriers. Mr. Coleman said that the bond insurance premium cost is based on the total debt service. A certain percentage of the total debt service. It is competitive and depends on the bond insurance company's comfort level to insure the deal. They haven't looked at XL. FSA will not insure RDA anymore as they have a seismic model that states that the City is destined to have an earthquake. Staff has had problems obtaining a commitment. They had Ambac and MBIA look at it. It really comes down to their comfort level with the JPA's credit. Ambac has given a commitment, however, it is always much higher than MBIA. X. NEXT MEETING - Wednesday, January 28, 2004 at 2:00 p.m. Xl. ADJOURNMENT There being no further business, the meeting was adjourned by Chairman Gibson at 2:51 p.m. Respectfully submitted, Diana Leal, Recording Secretary 7 121703.wpd �y� City of Palm Desert q1 i,� City and Redevelopment Agency Portfolios q) o '; ',ph, COMPLIANCE ANALYSIS AND INVESTMENT REPORT t !!7•, A December 2003 7 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The Federal Open Market Committee (FOMC)will meet on 27-28 January to review short-term interest rates. It is expected that the FOMC will not make any changes since inflation is quite low. Despite a 9% decline in the value of the U.S. dollar over the last nine months, there has been very little change in U.S. import prices. Excess capacity has discouraged foreign producers from trying to raise their prices in the U.S., even though their costs are rising in dollar terms. They are sacrificing profit in order to retain market share. Excess capacity will probably continue in most U.S. industries until 2005. Payroll employment was flat in December, interrupting a series of favorable economic reports. Firms remain conservative in their hiring outlook. Temporary hiring, for example, accounted for more than 50% of all second-half job gains. Overall, unemployment is 5.70%, down from a peak of 6.25%. J.P. Morgan Chase& Co. recently announced that it would acquire Bank One Corp. for$58 billion in stock, thereby forming the second largest bank in the U.S. after Citigoup Inc. The merged bank will be headquartered in New York City; will continue under the name of J.P. Morgan; and will have assets of$1.1 trillion. Pis `idaorz c.c.A1 r Treasurer PORTFOLIO STATISTICS Dollars in Thousands DEC-03 NOV-03 OCT-03 SEP-03 AUG-03 JUL-03 CITY Month-End Book Value*** $ 132,836 $ 132,138 $ 134,142 $ 138,363 $ 185,209 $ 175,837 Month-End Market Value*** $ 133,087 $ 132,214 $ 134,231 $ 138,561 $ 185,222 $ 175,744 Paper Gain (Loss) $ 251 $ 76 $ 89 $ 198 $ 13 $ (93) Prior Year Book Variance $ (3,851) $ (10,382) $ (9,912) $ (32,060) $ 4,466 $ (13,531) Interest Earnings $ 172 $ 169 $ 175 $ 176 $ 211 $ 213 Yield-To-Maturity 1.58% 1.61% 1.61% 1.62% 1.43% 1.46%u Weighted Maturity(Days) 92 94 94 93 69 71 Effective Duration 0.16 0.17 0.17 0.19 0.14 0.15 RDA Month-End Book Value*** $ 141,723 $ 144,184 $ 144,220 $ 152,893 $ 123,315 $ 100,551 Month-End Market Value*** $ 143,881 $ 146,322 $ 146,360 $ 155,033 $ 125,431 $ 102,881 Paper Gain (Loss) $ 2,158 $ 2,138 $ 2,140 $ 2,140 $ 2,116 $ 2,330 Prior Year Book Variance $ 48,936 $ 51,423 $ 49,336 $ 53,672 $ 23,190 $ (14,515) Interest Earnings $ 159 $ 155 $ 162 $ 161 $ 146 $ 136 Yield-To-Maturity 1.29% 1.29% 1.30% 1.28% 1.36% 1.56% Weighted Maturity(Days) 89 87 87 82 102 139 Effective Duration 0.03 0.03 0.04 0.04 0.06 0.07 • *** Omits SLGSs. City of Palm Desert -- Portfolio Characteristics 31 December 2003 Dollars in Thousands Ageing Interval Market Value l < 1 M $ 67,432 General Fund Ageing <2M - < 3M 3,332 100 83 <6M 2,564 80 _ - < 1YR 2,055 F. <2YR - 0 60 - <3YR - 2 40 - <4YR 5,799 a <5YR - 20 - 0 4 3 3 0 >5YR 0 n Total: $ 81,182 <1M c2M <3M <6M < 1YR <2YR Ratings` Market Value 1 Credit Quality` Aaa Aaa $ 42,162 I 1 32% Unrated** 72,785 A 15,905 Al/P1 - A D Unrated'• Total: $ 130,852 12% 56% K. / Sector Market Value Asset Allocation I LAIF Money Market Funds $ 42,162 /° cil):1) LAIF 40,000 RDA Loan 32,785 Money Market MTNs 15,905 Funds U.S.Treasury - 32% RDA Loan Federal Agency - 25% Commercial Paper - Total: $ 130,852 MTNs l 12% Month City Yield LAIF Yield Variance i Performance Jan03 1.63 2.10 -0.47 Feb 1.63 1.95 -0.32 i 2.9 Mar 1.48 1.90 -0.43 Apr 1.45 1.86 -0.41 2.5 - May 1.62 1.77 -0.15 I. Jun 1.58 1.70 -0.12 a 2.1 - - m Jul 1.46 1.65 -0.20 i- 1.7 Aug 1.43 1.63 -0.20 l i ii il II if 11 Sep 1.62 1.64 -0.01 1.3 . II Oct 1.61 1.60 0.01 1 Jan03 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov 1.61 1.57 0.03 Dec 1.58 1.55 0.03 OLAIF Yield OCity Yield K J Moody's Credit Ratings " LAIF, and City Loan to RDA Page 2 of 6 City of Palm Desert Portfolio Holdings 31 December 2003 Market Ratings IPar Value I Issuer I Coupon I Maturity I Cost I YTM Price I Value Moody's Medium-Term Notes $ 3,300,000 FORD MOTOR 5.75 2/23/04 $ 3,315,320 2.48 100.60 $ 3,319,774 A3 $ 3,000,000 FORD MOTOR 7.20 6/15/07 $ 3,132,106 5.75 108.57 $ 3,257,082 A3 $ 2,500,000 FORD MOTOR 7.20 6/15/07 $ 2,610,089 5.75 108,57 $ 2,714,235 A3 $ 2,500,000 FORD MOTOR 7.50 6/15/04 $ 2,551,867 2.84 102,23 $ 2,555,680 A3 $ 2,000,000 FORD MOTOR 6.70 7/16/04 $ 2,037,199 3.17 102,57 $ 2,051,386 A3 $ 2,000,000 GENERAL MOTORS 6.38 1/30/04 $ 2,006,912 2.04 100.36 $ 2,007,200 A3 $ 15,300,000 Subtotals $ 15,653,492 3.77 $ 15,905,357 LGIP $ 40,000,000 L.A.I.F. 0.00 1/1/04 $ 40,000,000 1.55 100.00 $ 40,000,000 NR $ 40,000,000 Subtotals $ 40,000,000 1.55 $ 40,000,000 LGIP $ 23,334,058 C.A.M.P. 0.00 1/1/04 $ 23,334,058 0.94 100.00 $ 23,334,058 N/A $ 23,334,058 Subtotals $ 23,334,058 0.94 $ 23,334,058 Pooled Funds --AIM $ 18,828,136 PRIME PORTFOLIO 0.00 1/1/04 $ 18,828,136 0.68 100.00 $ 18,828,136 Aaa $ 18,828,136 Subtotals $ 18,828,136 0.68 $ 18,828,136 City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 0.00 1/1/34 $ 32,785,480 1.55 100.00 $ 32,785,480 NR $ 32,785,480 Subtotals $ 32,785,480 1.55 $ 32,785,480 Total Investments $ 130,247,674 $130,601,166 1.58 $ 130,853,030 Cash $ 1,808,602 CITY MAIN CHKG 0.00 1/1/04 $ 1,808,602 N/A 100.00 $ 1,808,602 NR $ 254,242 DESERT WILLOW CHKG 0.00 1/1/04 $ 254,242 N/A 100.00 $ 254,242 NR $ 23,003 OFFICE COMPLEX TRUST 0.00 1/1/04 $ 23,003 N/A 100.00 $ 23,003 NR $ 148,559 RECREATIONAL FAG CHKG 0.00 1/1/04 $ 148,559 N/A 100.00 $ 148,559 NR $ - OFFICE COMPLEX CHKG 0.00 1/1/04 $ - N/A 100.00 $ NR $ 2,234,405 Subtotals $ 2,234,405 N/A $ 2,234,405 Total Cash and Investments $ 132,482,079 $132,835,571 $ 133,087,436 NR=Not Rated Page 3 of 6 Palm Deseedevelopment Agency-- Portfolio Chara-L'teristics 31 December 2003 Dollars in Thousands Ageing In erval Market Value r < 1 M $ 89,103 Portfolio Ageing w/o SLGSs) <2M 181 92 <3M - 100 90 - - • < 6M 80 - < 1 YR 7,077 e 70 - <2YR - 0 60 - 50 - <3YR - r 40 - <4YR - a° 30 - <5YR - 20 - 7 >5YR - 10 - 0 0 0 n 0 0 0 Total: $ 96,361 <1M <2M <3M <6M <1YR <2YR <3YR <4YR \. J Quality* Market Value Credit Quality' Aaa $ 80,580 Unrated** 60,8762 Aa - Aaa 57% A Unrated** A1/P1 - 43% Total: $ 141,456 2 Sector Market Value Asset AllocationI U.S.Treasury $ 7,277 Money Market Funds 73,303 Money Market LAIF 60,876 Funds Federal Agency - 52% C Commercial Paper - Corporate Bonds - U.S.TreasuryLAIF Total: $ 141,456 5% 43° K J Month RDA Yield LAIF Yield Variance Performance' Jan03 1.76 2.10 -0.34 I Feb 1.66 1.95 -0.28 Mar 1.64 1.90 -0.26 Apr 1.74 1.86 -0.12 2.2 - May 1.71 1.77 -0.06 -Jun 1.71 1.70 0.01 ' - - _ Jul 1.56 1.65 -0.09 > 1'7 tl r � C _ ��]] Aug 1.36 1.63 -0.27 t Sep 1.28 1.64 -0.36 1.2 , Oct 1.30 1.60 -0.30 Jan03 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov 1.29 1.57 -0.28 Dec 1.29 1.55 -0.25 OLAIF Yield ORDA Yield K J * Moody's Credit Ratings ** LAW Page 4 of 6 Palm Desert Redevelopment Agency Portfolio Holdings 31 December 2003 Market Ratings I Par Value I Issuer I Coupon I Maturity! Cost I YTM Price I Value Moody's U.S.Treasury-- Discount $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 99.89 $ 180,792 Ma $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 99.34 $ 7,096,163 Aaa $ 7,324,000 Subtotals $ 5,119,839 5.54 $ 7,276,956 LGIPs $ 40,000,000 L.A.I.F. 0.00 1/1/04 $ 40,000,000 1.55 100.00 $ 40,000,000 NR $ 6,202,323 L.A.I.F. (HOUSING) 0.00 1/1/04 $ 6,202,323 1.55 100.00 $ 6,202,323 NR $ 9,684,507 L.A.I.F. BOND PROCEEDS 0.00 1/1/04 $ 9,684,507 1.55 100.00 $ 9,684,507 NR $ 4,989,445 L.A.I.F. BOND PROCEEDS 0.00 1/1/04 $ 4,989,445 1.55 100.00 $ 4,989,445 NR $ 60,876,276 Subtotals $ 60,876,276 1.55 $ 60,876,276 LGIP $ 29,767,754 C.A,M.P. 0.00 1/1/04 $ 29,767,754 0.94 100.00 $ 29,767,754 NR $ 29,767,754 Subtotals $ 29,767,754 0.94 $ 29,767,754 Pooled Funds--AIM $ 43,534,793 PRIME PORTFOLIO 0.00 1/1/04 $ 43,534,793 0.68 100.00 $ 43,534,793 Aaa $ 43,534,793 Subtotals $ 43,534,793 0.68 $ 43,534,793 Total Investments $141,502,822 $139,298,661 1.29 $ 141,455,777 Cash $ 2,097,638 HOUSING AUTH CHKG 0.00 1/1/04 $ 2,097,638 N/A 100.00 $ 2,097,638 NR $ 327,109 HOUSING AUTH TRUST 0.00 1/1/04 $ 327,109 N/A 100.00 $ 327,109 NR $ - COUNTRY CLUB CHKG 0.00 1/1/04 $ - N/A 100.00 $ - NR $ 2,424,747 Subtotals $ 2,424,747 $ 2,424,747 Total Cash and Investments $143,927,569 $141,723,408 $ 143,880,524 NR= Not Rated Page 5 of 6 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 Govemment Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 December 2003,the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield(in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectfully submitted on 28 January 2004, Pau&S. Q11 +, 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 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized(1) 53601(b) U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 3.7% 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized _ 53601(e) Federal Agencies 5 Years No Limit 5 Years 30% 0.0% 0.0% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 &P-1 - - 53601(g) Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25% A-1+or P-1 0.0% 0.0% 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - 53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - - 53601(i) Reverse Repos 92 Days 20% Not Authorized 53601 Q)_ Medium-Term Notes 5 Years 30% A 5 Years 30% A 12.0% 0.0% 53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA&Aaa 32.3% 52.6% 53601(1) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA(Security) 16429 LAIF No Limit No Limit 30.6% 43.7% (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 74.9% 100.0% (2) Maximum limit for mutual funds, excluding bond proceeds. * Certified California Municipal Treasurer Page 6 of 6 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER • • SACRAMENTO Uri�(,:F fi n DESERT Local Agency Investment Fund H d E DEEM_;WENT PO Box 942809 Sacramento, CA 94209-0001 Z'r'1 LJAN 12 MI 10: Oil (916) 653-3001 December, 2003 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer • OFFICE OF THE TREASURER• • SACRAMENTO CITY OF I I r. [DESERT. F r1ANCE DEPARTMENT `��- Local Agency Investment Fund �, PO Box 942809 Sacramento, CA 94209-0001 €'` 1 "' CA (916) 653-3001 December, 2003 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number: 65-33-015 Attn: TREASURER 73-5I0 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER • 0 SACRAMENTO ' k �- f_ �r.{�i c��rr �� I . Local Agency Investment Fund FINANCE E P 'N' W.EN 1 i y PO Box 942809 Sacramento, CA 94209-0001 2WJ; J A"! 4 2 MI ©LI (916) 653-3001 December, 2003 Statement PALM DESERT HOUSING AUTHORITY Account Number : 25-33-003 Attn: DEPUTY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 99260-2578 Account Summary Total Deposit : 0.00 Beginning Balance : 6,202,323.45 Total Withdrawal : 0.00 Ending Balance : 6,202,323.45 Page : 1 of 1 c CA 11 o RfN t ASSET Fro!�I.cE DEPARTMENT STATEMENT MANAGEMENT PROGRAM JOINT POWERS AUTHORITY 50 CALIFORNIA SrREPT 23RI5 FLOOR 2111 ,I II 12 ft t {O. 02 SAN FRANCISCO CALIFORNIA 041 I I FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 12/31/2003 CITY OF PALM DESERT ACCOUNT NUMBER: 553-00 OPERATING FUND 73-510 FRED WAKING DRIVE FUND NAME: Cash Reserve Portfolio PALM DESERT,CA 92260 Page 1 of 1 A0'00, t Suin',BR p of 140/2003;: ,. _ tlr _ "15 Statement Income Dividends Capital Gains Total Shares Account Date Pald This Year Paid This Year Owned Value 12/31/2003 $478,152.80 $0.00 23,334,057.780 $23,334,057.78 _,;, arc; a ri.aaa'x *'.'e: 1 -0."^ ? 2N;p9.»f 3 `""ri '?~ + Py a Td ansa coon Sugn> 2/1�/25 0„„ 014 2040 * - ;:G T7: ...u•-sxs . - ... cx.Ycqux, a .< 2.;-�Z�n a �.a. ,` r. Beginning Balance Purchases Reinvestments Redemptions Ending Balance $20,317,471.66 $3,000,000.00 $16,586.12 $0.00 $23,334,057.78 :-'D .SETVE "- " tcb - -r-= r k'.Sxa f1a ••LTI.AR iQiclQUNT ^t S R ' SHARES 11HIS TOT'' ' ' ij� oSAG °ij t o R. SANCTION . T IANSACTIO ""S ARESOWNED 12/01/03 Beginning Balance 20,317,471.660 12/09/03 12/9/2003 Purchase-Wire Pur. $600,000.00 $1.00 600,000.000 20,917,471.660 12/30/03 12/30/2003 Purchase-Wire Pur. $2,400,000.00 $1.00 2,400,000.000 23,317,471.660 12/31/03 1/1/2004 Accrual Income Div Reinvestment-DIV $16,586.12. $1.00 16,586.120 23,334,057.780 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.93%. THE ANNUALIZED YIELD IS 0.94%. • CALIFORNIA ASSET STATEMENT MANAGEMENT PROGRAM IOINT ROWERS AUTHORITY II SO CA LIFONIA STREET 23RD FLOOR SAN FRAN(-1S'CO CALIFORNIA 94111 FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 12/31/2003 PALM DESERT REDEVELOPMENT AGENCY ACCOUNT NUMBER: 553-02 GENERAL FUND ATTN:PAUL GIBSON FUND NAME: Cash Reserve Portfolio 73510 FRED WARING DRIVE PALM DESERT,CA 92260-2578 Page 1 of 1 ,t * ):;n 111m — s acc.... ar of 12/3I/20,03r � -*AC' Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 12/31/2003 $97,753.51 $0.00 29,767,753.510 $29,767,753.51 p a sact od • 200 -1W311'/J,003;1 `€:- 1� 33 ,," Beginning Balance Purchases Reinvestments Redemptions Ending Balance $31,658,154,23 $0.00 $24,599.28 $1,915,000.00 $29,767,753.51 - • e... t`.,q,^Rid Y.e` "*f`.^ mt'Y e• L'FV4.wLL�� A$ a .:_ .. v a 0i1 + A' �7 TOT D'T e i, + � tia =., , . -(e ,RNSAETIO� T ANSACTION SHARE30WNED;, 12/01/03 Beginning Balance 31,658,154.230 12/22/03 12/22/2003 Redemption-Wire Red. $1,915,000.00- $1.00 1,915,000.000- 29,743,154.230 12/31/03 1/1/2004 Accrual Income Div Reinvestment-DIV $24,599.28 $1.00 24,599.280 29,767,753.510 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 0.93%. 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C> — •L .'-.. s City of Palm Desert • • Parkview Office Complex Financial Statement -( for Fiscal Year 2003-2004 December-03 December-03 # % YID YTD p % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 68,500 $ 71,154 $ 2,654 103.87%; $411,000 $ 426,936 $ 15,936 103.88% Dividends/Interest . $ 4,375 $ - $ (4,375) 0.00%) $ 26,250 $ 216 $ (26,034) 0.82% Total Revenues $ 72,875 $ 71,154 $ (1,721) 97.64%1 < 4 $ 437,250 $ 427,15] $ (10,099) 97.69% Expenses Professional-Accounting&Auditing $ 8,000 $ 8,000 $ - 100.00% ., $ 48,000 $ 48,000 $ - 100.00% Professional-Consultants $ 6,000 $ 5,555 $ 445 92.58% $ 36,000 $ 33,609 $ 2,391 93.36% Tenant Improvements $ 3,000 $ - $ 3,000 0.00% $ 18,000 $ 7,120 $ 10,880 39 56% Repairs&Maintenance Building $ 8,000 $ 10,495 $ (2,495) 131.19%1 ' $ 48,000 $ 53,431 $ (5,431) 111.31% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00%I $ 13,800 $ - $ 13,800 0.00% Utilities-Water $ 150 $ 109 $ 41 72.37%E ` 1 $ 900 $ 650 $ 250 72.24% Utilities-Gas/Electric $ 8,000 $ 4,424 $ 3,576 55.30% $ 48,000 $ 48,850 $ (850) 101.77% Utilities-Waste Disposal $ 700 $ 530 $ 170 75.77%1 ' $ 4,200 $ 3,182 $ 1,018 75.77% Telephone $ 200 $ 127 $ 73 63.37% $ 1,200 $ 933 $ 267 77.71% Insurance $ 521 $ - $ 521 0.00% ,..;.; $ 3,124 $ - $ 3,124 0.00% Total Expenses $ 36,871 $ 29,240 $ 7,631 79.30%) i 5 221,224 $ 195,775 $ 25,449 88.50°/u 7 Opei'at nglncome „36,004 $ 41,914 $ 5;$!Q . 116,41b/u . $ 216 231,026 ,$ 376 ;$ 15,350 , i0?11%I Equipment Replacement Reserve $ 14,000 $ 13,306 $ 694 95.04% $ 84,000 $ 79,836 $ 4,164 95.04% Net Income $- 22,004.. $ < 28,608 $ 6604 130.Ot% ' ,$ 132,026 P$ 15],540....:$ 19,514 114.704 2004 Investment Reportlnv Report 2003 City of Palm Desert • Parkview Office Complex Vacancy Rate Schedule by Suite December 2003 Suite Square No. Tenant Feet 73-710 Fred Waring Drive -Two (2) Story Building 100 Hanover 1,915 100A William Bonneheim 645 102 Bergren& Associates 1,360 103 National Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Coachella Valley Economic Partnership 928 108 Assembly Rules Committee-Assemblyman Benoit 450 112 Senator Battin 1,741 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Duke Gerstal 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 University of California Riverside 604 203 Mountain Conservancy 480 205 Adopt-A-Class 700 208 Alzheimer's Association 960 210 Wilson, Pesota &Pichardo 3,040 2004 Investment ReportVacancy Report • 1 City of Palm Desert ® Parkview Office Complex • • Vacancy Rate Schedule by Suite December 2003 211 State of California Department of Food &Agriculture 937 217 Joe B.McMillan,.Esq. 775 220 EPA-Moved From Suite 101A 1,607 222 Cove Commission-Fire Marshal 1,900 222 CITY Storage-Vacant 1,081 Total square footage(2 story Building) 31,562 Vacancy Rate-1,081/31,562= 3.43% 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--1,081/51,191 2.11% Occupancy Rate-50,110/51,191 97.89% • 2004 Investment ReportVacancy Report 2 • r a • City of Palm Desert Desert Willow IIII Budget Vs Actual For the month of December 2003 Budgeted Actual Budgeted Actual December December $ Percentage Year to Year to $ Percentage Revenue 2003 2003 Variance Variance Date Date Variance Variance Course&Ground $ 258,865 $ 283,234 $ 24,369 109.41% $ 1,433,910 $ 1,426,645 $ (7.265) 99.49% Carts $ 19,038 $ 22,710 $ 3,672 119.29% $ 128,202 $ 139,900 $ 11,698 109.12% Golf Shop $ 65,660 $ 82,611 $ 16,951 125.82% $ 299,147 $ 321,716 $ 22,569 107.54% Range $ 5,000 $ 5,150 $ 150 103,00% $ 14,385 $ 15,490 $ 1,105 107,68% Food&Beverage $ 142,301 $ 131,510 $ (10.791) 92,42% $ 594,068 $ 593,353 $ (715) 99.88% Interest Income $ 200 $ - $ (200) 0.00% $ 1,500 $ - $ (1,500) 0.00% Total Revenues $ 491 064 $ 525 215 $ 34 151 106.95% $ 2 471 212 $ 2 497 104 S 25 892 101.05 Payroll Proshop $ 5,915 $ 5,135 $ 780 86.81% $ 31,283 $ 34,787 $ (3,504) 111.20% Can $ 20,671 $ 21,387 $ (716) 103.46% $ 104,906 $ 107.321 $ (2,415) 102,30% Course&Ground $ 123,792 $ 113,217 $ 10,575 91.46% $ 764,300 $ 754,592 $ 9,708 98.73% Golf Operations $ 28,602 $ 27,154 $ 1,448 94.94% $ 152,433 $ 131,633 $ 20,800 86.35% General&Administration $ 36,698 $ 42,704 $ (6,006) 116.37% $ 218,732 $ 233.971 $ (15,239) 106,97% Food&Beverage $ 72,836 $ 68,582 S 4,254 94.16% $ 353,895 $ 358,892 $ (4,997) 101.41% Oars-limit $ 288,514 $ 278,179 S 10,335 96.42% $ 1,625,549 $ 1,621,196 $ 4,353 99.73%1 Other Expenditures Perimeter Landscaping $ - $ - $ - 0.00% $ - $ - $ - 0.00% Proshop $ 3,600 $ 6,229 $ (2.629) 173.03% $ 14,830 $ 37,761 $ (22,931) 254.63% Proshop-COGS $ 21,944 $ 31,142 $ (9,198) 141.92% $ 134,667 $ 114,585 $ 20,082 85,09% Can $ 11,720 $ 12,290 $ (570) 104.86% $ 76,710 $ 75,437 $ 1,273 98.34% Course&Ground-Nonh Course $ 41,069 $ 45,283 $ (4,214) 110.26E $ 430,140 $ 377,762 $ 52,378 87,82% Course&Ground-South Course $ 34.371 $ 33,654 $ 717 97.91% $ 376,189 $ 453,810 $ (77,621) 120.63% Course&Ground-Desert Pallet-N $ 1,005 $ 311 $ 694 30.95% $ 4,255 $ 2,937 S 1,318 69.02% Course&Ground-Desert Pallet-S $ 405 $ 1,518 $ (1,113) 374.81% $ 4,255 $ 4,295 $ (40) 100.94% Gnl I Operations $ 540 $ 432 $ 108 80.00% $ 4,280 $ 3521 $ 759 82.27% General&Administration $ 66,582 $ 55,721 $ 10,861 83.69% $ 375,838 $ 342,588 $ 33.250 91.15% Range $ 175 $ 161 $ 14 92.00% $ 10,050 $ 8,846 $ 1,204 88.02% Food&Beverage $ 25,662 $ 23,587 $ 2,075 91.91% $ 133,441 $ 132,179 $ 1,262 99.05% Food&Beverage COGS $ 43,424 $ 42,134 $ 1,290 97.03% $ 183,731 $ 194,847 $ (11,116) 106 05% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 150,000 $ 150,000 $ - 100,00% Financing/Lease $ 5,683 $ 5,549 $ 134 97.64% $ 34,228 $ 33.531 $ 697 97.96% !Total Other Expenditures $ 281,180 S 283,011 $ (1,831) 100.65% S 1.932,614 $ 1,932,099 S 515 99.97%4 Desert Willow Golf Academy .. Desen Willow Golf Academy $ 9,950 $ 9,550 $ (400) 95.98% $ 46,500 $ 55.515 $ 9,015 119,39% COGS-Merchandise $ (6,796) $ (7,556) $ (760) 111.18% $ (35,882) $ (37,760) $ (1,878) 105.23% Other Expenditures $ (3,300) $ (4,617) $ (1,317) 139.91% $ (24,150) $ (27,110) $ (2,960) 112.26% $ Learning Center Income(Loss)_ $ (146) $ (2623) $ (2,477) 1796.58% $ (13,532) $ (9,355) $ 4,177 69.13% Operating Income(Loss) $ (78.776) $ (38,598) $ 40,178 49,00% $ (1,100,483) $ (1,065,546) $ 34,937 96.83% Equipment Reserve Replacement $ 71,955 $ 68.110 $ (3,845) 94.66% $ 431,730 $ 413,383 $ (18,347) 95.75% C., In come Net (Loss) $ (150.731) $ (106.708) S 44,023 70 79/ $ (1 532,213) $ (1,478,9291 $ 53,284 9652%I Snapshot of Golf Rounds Budgeted(mo) Actual Lmo) Variance Variance% Budgeted(yid) Actual(yttl) Variance Variance% Resident 1,440 1,777 337 123% 6,375 6,713 338 105% Non Resident 2,329 2,601 272 112% 19,312 20.097 785 104% Other - 346 346 100% - 107 107 100% Complimentary 256 42 (214) 16% 1,369 2,070 701 151% Total 4,025 4,766 741 118% 27,056 28,987 1,931 107% Folder:Desert Willow 2004:DW2004;Financial Statement Page 1 , . j •eCCC'4 // . \ § ! \\\0\CO \ , ! c - , ; � I:. & £ o k ± ) o § V ) ) &t Le } \ E ) $ ; e C la «rl { � i ) r � } OOO O 61 \ k o 1.0 a < otZ \ \ ) o \ / ai u 0a : H _ 3 § { § _ a � 0 / R f§ A ` Ga < coA0 \ 00 / Air }§ { , \/ j!ina) in > `! ) ct A]a� q [ | 2 ° / ! • 2• ); 00f 7 i rr 75\ o co m k E , o ( ( §:j ) / / // /a.1-1 ) F. / « co _ / 3 ( 1 CO411 1 W of P. v exee _g e- eegeee e- eeeveveeeeSe et t t r e tt n a - w o m - - w 2 o _ _ _ o 0. _ _ - C. r400N B? m rn' ' _ _ _ ; _ _ _ _ ry _ _ _ _ ry _ _ ,a a. > E2. _ c d >' > w N w N M N N w .w w» w »w» w w w w w N w w N wy w w w P d ',awa $ • q OO $ n ep n _ _ _ N OPavY _ n _ rvn _ m O m _ a s p: _ n - y ^ a0 „ H wwwwww wwwwww w wwwwwwwwwwww NwN w N w 0 $• - - mom ^ - - - S -v Ba gin - m w 114 N N a A 2« - 0 u Y GG «QN wwwwww » wwwwww w, wwwwwNwwwwww w www w N » w^ Q F v ae e v e em E 42 $ 24o - v evev e X- - era & = X44444444444 it' tee \ e e- sitsSno r •, - - - - - - " 2 _ _ iame2e < 1ge a) 3 = N F _ e : G - - - i > > CaN rq.. d.: n n P ww »www 4s wee44N w wwwww»wwwwww m re; 42 , 2 P e 4 rv - 'O _ 2 0 _ = n e _ _ _ a 4mmieJ n _ a ry N N - c E E d m wwwwww ww»www w»»»wwww »w» w a wa n 2R8 2222 ,18 _ - _ _ e .. a• :- m w ge .. . g a m a rvqeE _ El i d A 0 wwwww» wwwwww wwwNwwwwwwww wi� www w N w 6 E a a ffi; a a a g m g o - 3 ' •�' v z° o O E: O 6 5 0 U b ' e 4 u U U a U x _ al a m _ a .y .°`, .4 m F. 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H k /{ii . ± \� ~ � § lir" � k ] a ) i � � / )a \ f(z • Desert Willow • Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- December 2003 Resident 1,777 $ 79,965 $ 45.00 37.28% Non-Resident 2,601 $ 224,445 I $ 86.29 54.57% Other 42 $ 420 $ - 1 0.88% Complimentary 346 $ 1,105J_t $ 3.19 7.26% Desert Willow Totals I 4,766 I $ 305,935 $ 64.19 100.00% DW2004;POS AVG RD Page 9 - • •Desert Willow • Breakdown of Rounds per point of sale system FIRECLIFF COURSE- DECEMBER 2003 Description ., No. Of Revenue ' Avg. Per ' Pct to Rounds Per POS Round i Total Resident Rounds Resident Fee 302 $ 13,590 $ 45.00 40.43% Total Resident 302 $ 13,590 $ 45.00 40.43% Non Resident Posted 73 $ 12,045 $ 165.00 9.77% IROC Des. PRTY 10 $ 825 $ 82.50 1.34% IROC Mbr. Guest 9 $ 1,188 $ 132.00 1.20% Winter-Sunrise 15 $ 1,875 $ 125.00 2.01% Winter- Midday 21 $ 2,625 $ 125.00 I 2.81% Twilight 42 $ 3,903 $ 92.92 5.62% Winter Sunset 9 $ 585 $ 65.00 1.20% Wholesale 155 $ 13,756 $ 88,75 1 20.75% Outing 6 $ 336 $ 56.00 0.80% Fee Special Event Variable 13 $ 1,129 $ 86.85 1.74% Total Non Resident Rounds 353 I $ 38,267 $ 108.40 I 47.26% Other Rounds Junior Walking 12 $ 120 $ 10.00 1.61% Total Other 12 I $ 120 $ 108.93 1.61% Complimentary VIP 5 $ - $ - 0.67% PGA Member 15 I $ $ - 2.01% Champions Club 25 $ - $ - 3.35% Employee/Employee Guest 35 $ 530 $ 15.14 4.69% Total Complimentary 80 I $ 530 I $ 6.63 10.71% Total Round (FireCliff) 747 $ 52,507 p $ 70.29 100.00% DW2004;POS AVG RD Page 10 • Desert Willow • Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- DECEMBER 2003 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee 1,475 $ 66,375 $ 45.00 36.70% Total Resident 1,475 $ 66,375 $ 45.00 36.70% Non Resident Posted 265 $ 36,485 $ 137.68 6.59% Fall Sunrise 35 $ 4,550 $ 130.00 0.87% IROC Des. PRTY 37 $ 2,668 $ 72.09 0.92% IROC Mbr / Guest 58 $ 5,892 $ 101.59 1.44% Fall/Winter Midday _ 124 $ 12,440 $ 100.32 3.09% Twlight 149 $ 11,510 $ 77.25 3.71% Fall/Winter Sunset 127 $ 6,015 $ 47.36 3.16% Winter Sunrise 15 $ 1,875 $ 125.00 0.37% Wholesale 836 $ 64,250 $ 76.85 20.80% Players Club 2 $ 120 $ 60.00 0.05% Outing 511 $ 33,765 $ 66.08 12.71% Fee Special Event Variable 89 $ 6,610 $ 74.26 2.21% Total Non Resident Rounds 2,248 I $ 186,179 1 $ 82.82 55.93% Other Rounds F Junior Walking 30 $ 300 I $ 10.00 0.75% • I Total Other 30 $ 300 $ 10.00 0.75% Complimentary VIP 80 $ - $ - 1.99% PGA Member 8 $ - $ - 0.20% Champions Club 77 1.92% Employee/Employee Guest 101 $ 575 $ 5.69 2.51% Total Complimentary 266 I $ 575 $ 2.16 1 6.62% Total Round (Mountainview) 4,019 $ 253,429 $ 63.06 100% DW2004;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of December 2003 Cash Reserve Analysis One Month (Required Reserve J $ 500,000.00 Cash on Hand $ 504,780.11 Variance- Favorable( Unfavorable) $ 4,780.11 Page 12 Palm'"lert Recreation Facilities Corpo•on Income Statement Dec-03 Dec-03 It % Budget Actual Variance Variance Food & Beverage Revenues $142,301 $131,510 ($10,791) 92.42% Total Revenues $142,301 $131,510 ($10,791) 92.42% Salaries $72,836 $68,582 $4,254 94.16% Cost of Goods Sold-F&B $43,424 $42,134 $1,290 97.03% Food & Beverage Expense $25,662 $23,587 $2,075 91.91% Total Expenses $141,922 $134,303 $7,619 94.63% Net Income (Loss) .. $379 ($2,793) ($3,172) -736.94% Note: The above revenues and expenditures are also included in the Desert Willow analysis. DW2004;PDRFC Budget Page 1 ® • H. Palm Desert Golf Course Facilities Corporation Financial Information for December 2003 40 • - : CITY OF PALM DESERT (( 1 FINANCE DEPARTMENT b • tit A' 7 MEMORANDUM TO: INVESTMENT AND FINANCE COMMITTEE • FROM: PAUL S. GIBSON, DIRECTOR OF FINANCE DATE: JANUARY 14, 2004 SUBJECT: INFORMATIONAL REPORT At the Investment and Finance Committee meeting of December 17, 2003 the committee requested a report that shows revenues received from Intrawest. The attached report includes said information. The next Investment and Finance Committee meeting is scheduled for January 28, 2004 at 9:30 a.m. in the North Wing Conference Room. Sincerely,adi% PAUL S. GIBSON Director of Finance PSG:dcl G:\Finance\Diana Leal\Wpdocs\Investment Committee\Memos\Members2.wpd DesertFinancialG Willow olfD Pata roject • for Fiscal Year 2002-2003 Budgeted Actual Year to Year to $ Percentage Revenue Date Date Variance Variance Course&Ground' $ 5,395,247 $5,154,811 $ (240,436) 95.54% Carts $ 385,964 $ 384,110 $ (1,854) 99.52% Golf Shop $ 812,173 $ 797,821 $ (14,352) 98.23% Range $ 34,650 $ 42,219 $ 7,569 121.84% Food&Beverage $ 1,484,512 $ 1,618,452 $ 133,940 109.02% Interest Income $ 7,050 $ 3,735 $ (3,315) 52.98% �Total Revenues $ 8,119 596 $8,001,148 $ 118,448 98.54% _�.2++ .tt m,t ,..�r,..v�dmwxm ry vwr ttib.' Payroll Proshop $ 51,065 $ 55,759 $ (4,694) 109.19% Cart $ 300,646 $ 271,984 $ 28,662 90.47% Course&Ground $ 1,514,282 $ 1,472,689 $ 41,593 97,25% Golf Operations $ 338,056 $ 300,232 $ 37,824 88.81% General&Administration $ 491,929 $ 434,053 $ 57,876 88.23% Desert Willow Golf Academy $ 100,694 $ 56,038 $ 44,656 55.65% Food&Beverage $ 693,915 $ 776,135 $ (82,220) 111.85% Total Pa roll $ 3.490587 $3,366,890 $ 123 697 96.46% Other Expenditures Proshop $ 38,655 $ 51,668 $ (13,013) 133.66% Proshop-COGS $ 444,735 $ 372,967 $ 71,768 83.86% Cart $ 174,790 $ 161,548 $ 13,242 92.42% Course&Ground-North Course $ 674,849 $ 631,746 $ 43,103 93.61% Course&Ground-South Course $ 620,759 $ 644,261 $ (23,502) 103.79% Course&Ground-Desert Pallet-N $ 14,670 $ 12,055 $ 2,615 82.17% Course&Ground-Desert Pallet-S $ 15,290 $ 9,372 $ 5,918 61.29% Golf Operations $ 13,960 $ 17,577 $ (3,617) 125.91% General&Administration $ 834,593 $ 917,603 $ (83,010) 109.95% Range $ 14,625 $ 12,017 $ 2,608 82.17% Food&Beverage $ 164,430 $ 171,891 $ (7,461) 104.54% Food&Beverage COGS $ 464,865 $ 521,069 $ (56,204) 112.09% Management Fee $ 300,000 $ 365,454 $ (65,454) 121.82% Financing/Lease • $ 25,982 $ 52,948 $ (26,966) 203.79% �+Total Other Ependitures $ 3,802,203 $3,942,176 $ (139,973) 103.68% :x�ft t,,�. .: _.,,:. ...ouegr, +xaaxnax - i Desert Willow Golf Academy Desert Willow Golf Academy $ 133,700 $ 127,054 $ (6,646) 95.03% Other Expenditures $ (26,048) $ (62,268) $ (36,220) 239.05% Learning Center Income(Loss) $ 107,652 $ 64,786 $ (42,866) 60.18% Operating Income(Loss) $ 934,458 $ 756,868 $ (177,590) 81.00% Equipment Replacement Reserve $ 863,460 $ 832,577 $ 30,883 96.42% Net Project Income(Loss) $ 70,998 $ (75,709) $ (208,473) -106.64% Snapshot of Golf Rounds Budgeted(ytd) Actual(ytd) Variance Variance% Resident 18,195 20,174 1,979 111% Non Resident .• 51,611 51,254 (357) 99% Other - 177 177 0% Complimentary 4,404 4,251 (153) 97% Total 74,210 75,856 1,646 102% a-includes Intrawest Revenue received during the fiscal year-Total : $681,865