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HomeMy WebLinkAbout2003-06-25 IFC Regular Meeting Agenda Packet COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 6125/03 Time 2:00 o.m. Location North Wing Conference Room Mailed Agenda 6/18/03 Posted Agenda 6/18/03 Time Convene Adjournment zoo .m . Staff Members Attending Yes No Others Attending Yes No r5 1 Paul Gibson, Chairperson 11 Dennis Coleman 2 Council Member 12 Justin McCarthy 3 Council Member S 13 Rodney Young 4 Dave Erwin, City Attorney 14 Recording Secretary Carlos Ortega, City Mgr. 6 Thomas Jeffrey 6 Public Members Attendinq Guests Attend 7 Russ Campbell 15 8 Murray Magloff 16 9 Bill Veazie 17 10 Everett Wood ✓ 18 19 20 Follow-Ups/Tasks Assigned Person Responsible Due Date 1 2 3 4 Q 5 6 7 8 aP I a I� cu�c,opisf Spoke Mtn (1) Mtn (2) MEETING NOTES !° � . \ / 90, PAI or-I Cw 0 s � r � . I s h Prw � Fw�_ L' MU FAM- rtll 'Al INIA FIVE ill NIOU41 ow— mw__�i:. iv mi Spoke Mtn (1) Mtn (2) MEETING NOTES Q bar n W L. L � -e dA i /D�J _ pa qo fir (I e a hAIRL C( r 7 xt- 14 ew. CO, e � S -�1 o O 14§dj=LIZ 4 1. °off rya 67' Spoke Mtn (1) Mtn (2) MEETING NOTES /'0 r lopray sGLf�- b r �a Z r !S f S O 2S- 4 CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE -AGENDA June 25, 2063,2;00 p.m. North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. 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 May 28, 2003, as submitted. Action: 1 62503,w d ` INVESTMENT & FINANCE41MMITTEE • AGENDA June 25, 2003 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for May 2003 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for May 2003. Action: B. State of California Local Agency Investment Fund Balance for the month of Ma2003 Rec: Informational item for the Committee to review. No action required C. California Asset Management Program (CAMP) May 2003 Statement Rec: Informational item for the Committee to review. No action required D. Reaualification of Existing Brokers: 1) Morgan Stanley 2) Merrill Lynch 3) Wells Fargo Institutional Securities 4) Citigroup Dismissal of Existing Broker: 1) Banc of America Securities Action: E. City and Redevelopment Agency Monthly Financial Reports for Citv Council for May 2003 Rec: Report and submit to City Council Action: 2 62503.w d INVESTMENT & FINANCEIRMMITTEE • AGENDA June 25, 2003 F. Parkview Professional Office Buildings - Financial Report for May 2003 Rec: Review and file report Action: G. Palm Desert Golf Course Facilities Corporation Financial Information for April 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 - Wednesday, July 23, 2003 at 2:00 p.m. 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 H II bulletin board not less than 72 hours prior to the meeting. Dated this 8`" day of June, 2003. �-41 ",or / - a s Leal, R r g ecretary 3 52503.wpd Finance Department MEMORANDUM To: Records Technician I From: Diana Leal, Administrative Secretary Subject: Investment and Finance Committee Meeting Date: June 25, 2003 Attached, for your records, is a copy of the June 25, 2003 Investment and Finance Committee meeting attendance register. Thank you for your assistance. Attachments (1) GdFinance0ana LeaMpdocsUnvestment Committee\2002 Memos\City C1erk\2003\5-28-03attend.wpd ( 2 ƒ k % } $ ) m » ■ ` \ c . @ � / \ \ sE do 77, vi / J � � _ m m - r- = a e = 2 m « & 5 2 00 v .,.f, Mnanee Department MEMORANDUM To: Rachelle Klassen, City Clerk From: Diana Leal, Administrative Secreta Subject: Investment and Finance Committee Date: June 25, 2003 Attached is a copy ofthe April 28,2003 minutes of the Investment and Finance Committee approved by the Committee on June 25, 2003. Please place on the next City Council agenda for approval thereof. Thank you for your assistance. Attachments (1) GAFinance\Diana LeaMpdocAnvestment Committee\2002 Memos\City Clerk\2003\5-28-03.wpd _ CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE Minutes May 28, 2003, 2:00 p.m. North Wing Conference Room I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, May 28, 2003 at 2:05 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Director of Finance Bob Spiegel, Mayor Pro-Temp Jean Benson, Mayor Thomas Jeffrey, Deputy City Treasurer David Erwin, City Attorney Carlos Ortega, City Manager Bill Veazie Murray Magloff Russ Campbell Everett Wood Also Present: Justin McCarthy, ACM Redevelopment Dennis Coleman, RDA Finance Manager Rodney Young, Desert Willow General Manager Diana Leal, Recording Secretary Guests: None III. ORAL COMMUNICATIONS None. IV. COMMITTEE MEMBER REPORTS None. 1 52803.E INVESTMENT & FINANCE�MITTEE • MINUTES May 28, 2003 V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Campbell and seconded by Mr. Veazie to approve the Minutes of the April 23, 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 April 2003 Mr Jeffrey reported that, for the month ended April 30, 2003, the book value of the City Portfolio was approximately $156.4 million. The City earned approximately $185,000 in interest. Portfolio yield-to-maturity was approximately 1.45%. For the month ended April 30, 2003, the book value of the RDA Portfolio was approximately $103.4 million. The RDA earned approximately $137,000 in interest. Portfolio yield-to-maturity was approximately 1.74%. Mr. Gibson has instructed Union Bank to close all of the City's sweep accounts since they are no longer profitable, based upon current yields (e.g., 0.15%). Mr. Jeffrey stated that if the Federal Reserve Open Market Committee reduces the Federal Funds Rate by 50 basis points at its next meeting, which is scheduled for June 24 and 25, many money market funds will be operating in the "red" unless they reduce fund expenses. Mr. Veazie noted that the City recently purchased $13.3 million of Ford Motor Credit Company medium-term notes (MTNs), amounting to 9% of the City portfolio. Approximately $5.5 million of this money was invested in four-year Ford MTNs that will mature in 2007. He asked if this maturity period was authorized under the City's Investment Policy. Mr. Gibson responded that the City Council had approved this exception to the three-year maturity limit in the City's Investment Policy, so that the Ford MTNs could fund the City's Retiree Health Program. Mr. Veazie also noted that the Ford MTNs were rated "A-3" by Moody's, but "BBB" by Standard and Poor's. He requested confirmation that the City was authorized to buy securities with a credit rating below "A". 2 52803.,pd INVESTMENT & FINANCEONMITTEE 011 MINUTES May 28, 2003 Mr. Jeffrey responded that both the California Government Code and the City's Investment Policy authorize staff to buy securities that are "split-rated", in terms of having both an "A" rating and a "BBB" rating. The "BBB" rating is the minimum "investment grade" credit rating. The City purchased Ford in order to get the best possible yield under depressed market conditions. Prior to making this purchase, however, Treasury staff had done an exhaustive study of Ford, and had concluded that the likelihood of bankruptcy or credit default was remote, based upon the company's asset base, government contracts, and family stock ownership. B. State of California Local Agency Investment Fund Balance for the Month of April 2003 Mr. Gibson said that LAIF continues to be maxed out. A new LAIF account has been added for the Housing Authority. C. California Asset Management Program (CAMP) April 2003 Mr. Gibson said that the CAMP account has $60,000,000. It was slightly reduced last month. It will be increased as $22,000,000 will be received today for tax increment. D. City and Redevelopment Agency Monthly Financial Reports for City Council for April 2003 Mr. Gibson said that sales tax is up about $400,000 over last year's sales tax year to date. Transient Occupancy Tax is slightly above, not including the Vacation Inn. Franchise fees were up due to time when monies are received. Expenditures are within the year to date budget of what was expected. Mr. Wood said that sales tax is paid based on what was due last year and is adjusted for actual amount. Mr. Gibson said that the City receives a monthly advance from the state based on last year's amount along with any adjustments such as an increase in sales tax, CPI, etc. Every three months the State provides the City with a final adjustment that shows the actual cash collection. Mr. Ortega said that businesses have approximately a month to report. It takes a few months by the time payment is processed through the State system to be included. Mr. Ortega asked how current the TOT was as it is collected by the City. Mr. Gibson said that it is typically a month behind as businesses have 30 days to pay. TOT is not late until the end of the following month. The 4.8 indicated on the report is as of March. Mr. Ortega said that the City is going to exceed the TOT because by March the City is at 95%. Mr. Gibson said that for this year's budget, if the City receives funds from Vacation Inn, the City will be close to 3 52803.wpd INVESTMENT & FINANCE`MMITTEE I. MINUTES May 28, 2003 $7.3 million. If money is not received from Vacation Inn, then the City will be at about $7,150,000. Vacation Inn owes $173,000. Mr. Ortega said that the City is doing better than anticipated with the licenses, permits and charges. Mr. Gibson said that staff survey's the builders at the beginning of the year. The builders' estimates are conservative. Mr. Ortega asked if the first distribution of property taxes were from the December collections. Mr. Gibson said that the December collections are received in January and the April collections are received in May. Final adjustments will be done in August. Mr. Ortega asked why there was a 0% indicated on the property tax line. Mr. Gibson said that zero is not correct and that the error is due to a formula problem. Mr. Campbell asked why the City of Palm Desert was going to front money to the City of Indian Wells for the new project on Hovley Lane. Mr. Gibson said that the street improvements were part of the negotiation. Mr. Ortega said that the funds are being provided to the developer and not the City. The street belongs to the City of Palm Desert. The City of Palm Desert is advancing the money to the developer and the developer will reimburse the City of Palm Desert once the street is developed. E. Parkview Professional Office Buildings - Financial Report for April 2003 Mr. Gibson said that the roof repairs are expected to be completed in about two weeks. Mr. Ortega asked if the air conditioners were in place. Mr. Gibson said that they were all on. The tenants were very upset because the units were off for about 3 hours due to a delay caused by a broken thermostat. F. Palm Desert Golf Course Facilities Corporation Financial Information for March 2003 Mr. Young said that March was a good month. There was exceptional weather. They had $1,150,000 in revenue which is the most they have done in one month. This amount is well ahead of prior year by over $100,000. In the last quarter of the year, their net operating income was up and they are ahead by $19,279. They are down in total revenues compared to budget, however, they are ahead in net operating income. On April 1, they hired a new head golf professional, Steve Lumas. He came from Virginia. He has done a great job. They are very fortunate. Mr. Wood asked if there was a relationship between the equipment reserve replacement and the net income line. Mr. Gibson said that for accounting purposes, depreciation is done. The City takes out the equipment replacement from a separate fund (241 fund) where revenue from IROC is placed and used to pay for equipment replacement. The operating income is 4 52803,-Pd INVESTMENT 8, FINANCE4WMITTEE . MINUTES May 28, 2003 the true line for Desert Willow because of how this is handled between the two funds. Mr. Wood said that sometimes companies separate funds to not show profit. Mr. Gibson said that the restaurant is not considered a non-profit where you don't have to pay taxes so you lose more. Because they have to pay taxes, they prefer to do depreciation to lower their income received. Ms. Benson said that income derived from banquets is not separated from income received for the restaurant. Mr. Young said that on the forms they provide to the committee the breakdown is not shown, however, they do prepare reports that show the banquets separate from the restaurant. The parties are good profit makers and the restaurant has been very busy. He will provide the committee with a breakdown for the income received from the restaurant and the banquets at the committee's meeting of July as he will not be attending the June meeting. Mr. Ortega said that the net operating income is strictly from operations. He said that the first thing he looks at are the year to date actuals. For accounting purposes, staff has to take into consideration the depreciation and amortization. These are not actual cash expenses. He looks at the positive cash to date. Mr. Young said that they are in good shape. In May they are ahead year to date, however, yesterday and today they were not very busy. Golfing usually drops after Memorial Day weekend, and the heat does not help. They have started 6:00 a.m. tee times and are following a heavy maintenance program. He expects to be ahead of budget in May. Vill. CONTINUED BUSINESS - None. IX. OLD BUSINESS A. Status of Public and Private Partnershios 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 last week he received an approval from the Financing Authority to do three bonds which will be sold as one bond. For the underwriting obligation of the individual assessment districts, they are issuing a not to exceed a $3 million bond for Silver Spur. Most of the money will be 5 52803.K'Gd I INVESTMENT & FINANCEOMMITTEE MINUTES May 28, 2003 used for improvements and for placing the underground electrical utilities in the Silver Spur Assessment District. In addition, staff proposed the refunding of the Merano Assessment District which is a bond issue not to exceed $1,155,000. There is approximately 4.36% net present value savings. The other assessment district they looked at was the Sunterrace. There is a 15.9% present value savings. The Redevelopment Agency packaged the three bonds together. The three bonds are being issued at the City level which will be sold to the Financing Authority. The Financing Authority will sell one bond not to exceed $5,165,000 to the general public. The monies will then go back into the limited obligation districts. Money will go from the Financing Authority to Silver Spur net reserves and the cost of issuance to pay for the undergrounding. The other monies will go to refunding the bonds for the two districts. They are looking to try to get this rated because of the fact that there is diverse ownership. The property is built out with the exception of Merano, there is one piece that is not built out that is located between Country Club and Monterey. It will be commercial. It is owned by the Mayer Family Trust. The reason that they can get the bond rated is due to the value of the property against the liens. When they did the Big Horn Assessment District where there was undeveloped land that was subdivided, they had a ratio of 7.61. The districts that they are looking at are all developed with houses with the exception of the one piece of property, they are looking at the Silver Spur Ranch to have a value ratio of 15.32 to 1. They are looking at Merano 22.86 to 1 and they are looking at 26.27 to 1. The importance of this for investors that for every dollar of bonds, they receive that much value of property backing them up. Staff is hoping to get a rating submitted to Standard and Poors and there is a chance they might be able to get this bond insured as well. There is a fourth bond insurer that is permitted to do bond insurance in California that is called Excel Capital (EC). EC is looking at the possibility of insuring the bond issue. If the City is given a high enough rating, they are not sure that they will receive higher that BBB rating for this, they might proceed without insurance. They will prepare an analysis to find out if insurance is worth while. They are thinking that a BBB will get the City in the neighborhood of 5.3; nonrated, 5.7. However, the rate for AAA insured paper is well under 5 at about 4.7. Of course, if the City can get the bond rated and/or insured, this will be the first time the City will have a rated and insured assessment district, and the savings will be tremendous in terms of the debt service to pay for it. Staff grouped the bonds together because they wanted to save money by having the bonds share in the issuance cost. The other bonds staff is looking at are the Project Area No. 1 and No. 3 bonds. They approached the Council a month ago and are schedule to proceed with the bonds. The only thing that we still have to deal with is that fact that the 6 52603.,vd INVESTMENT & FINANCEqPMMITTEE . MINUTES May 28, 2003 governor's budget still has a proposal to transfer $250,000,000 and increase it by $50,000,000 a year. Needless to say, if this goes through, which they are confident it won't, it could put most of the Redevelopment Agencies under water within 10 to 12 years. They have received notice from CRA the group of Redevelopment Agencies for the State that at a subcommittee level, the Senate Democrats are proposing a one time hit of $250,000,000. This funding will be given to the schools through the state. They have rejected this proposal however their budget subcommittee has recommended $250,000,000. The assembly democrats are proposing a $100,000,000 shift in one year. They are waiting for the results. One problem is that the governor's budget as he is resubmitting it indicates that this will occur next year. There will be an accumulated debt of$10.7 million. However, in the following year the budget is out of balance with estimates of 7.9 on the governor's side and $7 billion by the Legislative Analyst's office. The only thing this budget does is postpone the pain for one year. No one thinks that the economy will grow. An article in The Bond Buyer deals with those that issue bonds. They had a story on the front page on redevelopment funding, thus the PDRDA will need to deal with this issue. They are looking to close: 1) the tax allocation bond in the middle of July 2)the assessment district bonds on the 24th of June and on the 261h of June at the final meeting Pat Conlon will bring the contracts. X. NEXT MEETING - Wednesday, June 25 2003 at 2:00 p.m. XI. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 2:45 p.m. Resp ully submitted ceD na L al Secretary rdieng 7 52803.wpd _ CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE AGENDA June 25, 2003, 2:00 p.m. North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. 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 May 28, 2003, as submitted. Action: 1 fi25W.wpC INVESTMENT & FINANCE1MMITTEE • AGENDA June 25, 2003 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for May 2003 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for May 2003. Action: B. State of California Local Agency Investment Fund Balance for the month of May 2003 Rec: Informational item for the Committee to review. No action required C. California Asset Management Program (CAMP) May 2003 Statement Rec: Informational item for the Committee to review. No action required D. Regualification of Existing Brokers: 1) Morgan Stanley 2) Merrill Lynch 3) Wells Fargo Institutional Securities 4) Citigroup Dismissal of Existing Broker: 1) Banc of America Securities Action: E. City and Redevelopment Agency Monthly Financial Reports for City Council for May 2003 Rec: Report and submit to City Council Action: 2 62503.wpd INVESTMENT & FINANCEPMMITTEE • AGENDA June 25, 2003 F. Parkview Professional Office Buildings - Financial Report for May 2003 Rec: Review and file report Action: G. Palm Desert Golf Course Facilities Corporation Financial Information for April 2003 Rec: Review and file report Action: Vill. 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 - Wednesday, July 23, 2003 at 2:00 p.m. 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 H II bulletin board not less than 72 hours prior to the meeting. Dated this h day of June, 2003. 41 )Y1 ,"OJI/ a s eal, R r g ecretary 3 62503.E d Gi In Agency P tro ids r GOM ND IN1f -STMENT REPORT ' 2bU3 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The Fed Funds Futures Market has assigned a 100%probability to a 25 basis-point rate cut, and a 50% probability to a 50 basis-point rate cut by the Federal Open Market Committee at its next meeting (23-24 June). If a 50 basis-point rate cut is made,then many private sector money market funds will be "underwater" (unable to guarantee 100 cents to the dollar upon redemption) unless they reduce their fund expenses. A number of prominent business publications have recently been "bullish" on a stronger economic recovery during the second half of 2003. They cite a "stabilizing economy",the Bush tax cuts, and a recovering stock market. We are skeptical. Unemployment is currently at a nine-year high (6.1%), and further job losses are expected in June 2003. Businesses are reluctant to hire ahead of demand, and there is no pent-up demand. A recent Investors Business Daily poll showed that only 27%of Americans are planning to spend the tax cut. The tax cut will also be offset by a rise in state and local taxes due to state deficits. Household debt continues to climb due to new mortgage debt. Auto inventories are 20% above seasonal norms. Corporate insiders are selling stock at an intense pace. Energy prices may spike due to natural gas shortages. After the third round of Bush tax cuts, the 13th round of Fed rate cuts, and the sixth round of mortgage refinancings, the economy is struggling to grow at a 1%to 2%pace. Hardly a cause for optimism. Res 6ihsom c.c-M r. Treasurer PORTFOLIO STATISTICS Dollars in Thousands MAY-03 APR-03 MAR-03 FEB-03 JAN-03 DEC-02 CITY Month-End Book Value- $ 181,221 $ 156,385 $ 154,805 $ 165,188 $ 174,152 $ 136,687 Month-End Market Value- $ 181,196 $ 156,385 $ 154,805 $ 165,271 $ 174,276 $ 136,899 Paper Gain (Loss) $ (25) $ - $ - $ 83 $ 124 $ 212 Prior Year Book Variance $ (7,959) $ (8,227) $ (4,171) $ (117) $ (5,672) $ (26,850) Interest Earnings $ 199 $ 185 $ 208 $ 212 $ 212 $ 225 Yield-To-Maturity 1.62% 1.45% 1.48% 1.63% 1.63% 1.93% Weighted Maturity(Days) 69 1 1 28 29 49 Effective Duration 0.16 0.00 0.00 0.00 0.01 0.01 RDA Month-End Book Value"' $ 102,557 $ 103,387 $ 104,781 $ 103,760 $ 105,023 $ 92,787 Month-End Market Value $ 104,887 $ 105,700 $ 107,082 $ 106,053 $ 107,333 $ 95,022 Paper Gain (Loss) $ 2,330 $ 2,313 $ 2,301 $ 2,293 $ 2,310 $ 2,235 Prior Year Book Variance $ (1,091) $ (2,671) $ (24,885) $ (2,559) $ 19,541 $ 7,655 Interest Earnings $ 152 $ 137 $ 150 $ 139 $ 162 $ 153 Yield-To-Maturity 1.71% 1.74% 1.64% 1.67% 1.76% 1.95% Weighted Maturity(Days) 135 132 131 132 133 150 Effective Duration 0.08 0.09 0.09 0.10 0.10 0.12 "' Omits SLGSs. Cif•Palm Desert- Portfolio Characteristics 31 May 2003 Dollars in Thousands Acteina Interval Market Value General Fund Agei < 1 M $ 109,103ng <2M <3M 100 87 <6M 80 <1 YR 5,422 <2YR 4,662 0 <3YR 40 <4YR - a° <5YR 5,804 20 >SYR 0 0 0 0 4 4 Total: $ 124,991 <1M <2M <3M <6M <1YR <2YR Ratings• Market Value CredR t]uality AAA AAA $ 87,124 50% Unrated" 72,785 AA A AA A 15,888 9% . o% Al/Pt UnratGd 41% Total: $ 175,797 41% Sector Market Value Asset Allocation Money Market Funds 87,124 LAIF LAIF 40,000 ;$ 230/6 RDA Loan 32,785 Money Market MTNs 15,888 Funds ra U.S.Treasury 49% , Federal Agency RD Commercial Paper - MTNs D1 Loan 1gq, Total: $ 175,797 g% Month City Yield LAIF Yield Variance Performance Jun02 2.86 2.69 0.18 Jul 2.88 2.71 0.17 3.4 Aug 2.64 2.59 0.04 Sep 2.22 2.60 -0.38 _ Oct 2.15 2.49 -0.33 �? Nov 2.00 2.30 -0.31 2.4 Dec 1.93 2.20 -0.27 5: Jan03 1.63 2.10 -0.47 Feb 1.63 1.95 -0.32 1.4 Mar 1.48 1.90 -0.43 Jun02 Jul Aug Sep Oct Nov Dec Jan03 Feb Mar Apr May Apr 1.45 1.86 -0.41 May 1.62 1.77 -0.15 ■LAIF'field f]CityYield Standard and Poors Credit Ratings " LAIF, HighMark, and City Loan to RDA Page 2 of 7 City of Palm Desert Portfolio Holdings 31 May 2003 Market Ratings Par Value Issuer Coupon Maturity Cost I YTM I Price Value I Moody'sl 5& P Medium-Term Notes $ 3,300,000 FORD MOTOR 5.75 2/23/04 $ 3,377,190 2.48 101.95 $ 3,364,449 A3 BBB $ 3,000.000 FORD MOTOR 7.20 6/15/07 $ 3,164,407 5.75 105.53 $ 3,165,960 A3 BBB $ 2,500,000 FORD MOTOR 7.20 6/15/07 $ 2,628,673 5.75 105.53 $ 2,638,300 A3 BBB $ 2,500,000 FORD MOTOR 7.50 6/15/04 $ 2,618,281 2.84 103.66 $ 2,591,585 A3 BBB $ 2,000,000 GENERAL MOTORS 6.70 7/16/04 $ 2,077,259 3.17 103.53 $ 2,070,616 A2 BBB $ 2,000,000 GENERAL MOTORS 6.38 1/30/04 $ 2,056,965 2.04 102.88 $ 2,057,506 A2 BBB $ 15,300,000 Subtotal $ 15,912,774 3.761 $ 15,888,415 LGIP $ 68,561,423 C.A.M.P 0.00 6/1/03 $ 68,561,423 1.15 100.00 $ 68,561,423 N/A AAA $ 68,561,423 Subtotal $ 68,561,423 1.15 $ 68,561,423 LGIP $ 40,000,000 L.A.I.F. 0.00 6/1/03 $ 40,000,000 1.77 100.00 $ 40,000,000 NR NR $ 40,000,000 Subtotal $ 40,000,000 1.77 $ 40,000,000 Pooled Funds-AIM $ 18.562,271 PRIME PORTFOLIO 0.00 6/1/03 $ 18,562,271 0.90 100.00 $ 18,562,271 Aaa AAA $ 18,562,271 $ 18,562,271 0.90 $ 18,562,271 Pooled Funds-HighMark $ - CITY MAIN SWEEP 0.00 6/1/03 $ - 0.15 100.00 $ - NR NR $ - DESERT WILLOW SWEEP 0.00 6/1/03 $ - 0.15 100.00 $ - NR NR $ - GOLF COURSE SWEEP 0.00 6/1/03 $ - 0.15 100.00 $ - NR NR $ - OFFICE COMPLEX SWEEP 0.00 6/1/03 $ - 0.15 100.00 $ - NR NR $ - Subtotal $ - 0.15 $ - City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 0.00 6/1/33 $ 32,785,480 1.77 100.00 $ 32,785,480 NR NR $ 32,785,480 Subtotal $ 32,785,480 1.77 $ 32,785,480 Total Investments $ 175,209,174 $ 175,821,947 1.615 $ 175,797,588 Cash $ 1,911,967 OFFICE COMPLEX CHKG 0.00 6/1/03 $ 1,911,967 0.00 100.00 $ 1,911,967 NR NR $ 2,250,003 CITY MAIN CHKG 0.00 6/1/03 $ 2,250,003 0.00 100.00 $ 2,250,003 NR NR $ 722,373 DESERT WILLOW CHKG 0.00 6/l/03 $ 722,373 0.00 100.00 $ 722,373 NR NR $ - GPD GOLF COURSE 0.00 6/1103 $ - 0.00 100.00 $ - NR NR $ 30,181 OFFICE COMPLEX TRUST 0.00 6/1/03 $ 30,181 0.00 100.00 $ 30,181 NR NR NR=Not Rated Page 3 of 7 City of Palm Desert Portfolio Holdings 31 May 2003 Market Ratings Par Value Issuer Coupon Maturity Cost I YTM I Price I Value I Moody's S&P $ 135,213 RECREATIONAL FAC CHKG 0.00 6/1/03 $ 135,213 0.00 100.00 $ 135,213 NR NR $ - VACATION INN CHKG 0.00 6/1/03 $ - 0.00 100.00 $ - NR NR $ 5,049,737 Subtotal $ 5,049,737 0.00 $ 5,049,737 Total Cash and Investments $ 180,258,910 $ 180,871,684 $ 180,847,325 NR=Not Rated Page 4 of 7 Palm Desert ecievelopment Agency-Portfolio Char•ristics 31 May 2003 Dollars in Thousands Ageing g Interval Market Value Portfolio Ageing < 1 M $ 62,800 w/o SLGSs <2M - <3M 875 100 90 99 <6M 60 <1YR 180 70 <2YR 7,044 c 60 % 50 <3YR 1: 40 <4YR a° 30 <5YR 20 10 10 0 1 0 0 0 0 >5YR p Total: $ 70,899 <1M <2M <3M <6M <1YR <2YR <3YR <4YR Quality Market Value Credit Quality AAA $ 39,685 Unrated" 63,479 AAA AA - 38% A Unrated" 62% Al/P1 Total: $ 103,164 Sector Market Value Asset Allocation U.S.Treasury $ 8,099 Money Market Funds 31,586 Money Market LAIF 63,479 Funds 31% Federal Agency - Commercial Paper o LAW Corporate Bonds - U.S.Treasury 61% 8'/6 Total: $ 103,164 Month RDA Yield LAW Yield Variance Performance Jun02 2.37 2.69 -0.32 Jul 2.23 2.71 -0.48 Aug 2.27 2.59 -0.33 Sep 2.26 2.60 -0.35 2.5 Oct 2.23 2.49 -0.25 Nov 2.06 2.30 -0.25 Dec 1.95 2.20 -0.25 Jan03 1.76 2.10 -0.34 Feb 1.66 1.95 -0.28 1.5 Mar 1.64 1.90 -0.26 Jun02 Jul Aug Sep Oct Nov Dec Jan03 Feb Mar Apr May Apr 1.74 1.86 -0.12 May 1.71 1.77 -0.06 INLAIF Yield pRDAYield Standard and Poor's Credit Ratings LAIF and HighMark Sweep Page 5 of 7 C9t C3A,0 r, Palm Desert Redevelopment Agency Portfolio Holdings 31 May 2003 Market Ratings Par Value Issuer Coupon Maturi77r Cost YTM Price Value Moody's S&P U.S.Treasury-Discount $ 181,000 UNITED STATES TREASURY 4.63 2115/04 $ 130,168 5.51 99.20 $ 179,559 Aaa AAA $ 7,143,000 UNITED STATES TREASURY 4.59 8/15104 $ 4,989.671 5.54 98.62 $ 7,044,283 Aaa AAA $ 532,400 UNITED STATES TREASURY 4.66 8/15/03 $ 394,279 5.47 99.75 $ 531,074 Aaa AAA $ 344,600 UNITED STATES TREASURY 4.66 8/15103 $ 255,200 5.47 99.75 $ 343,742 Aaa AAA $ 8,201,000 Subtotals $ 5,769,319 5.53 $ 8,098,659 LGIPs $ 40,000,000 L.A.I.F. 0.00 6/1/03 $ 40,000,000 1.77 100.00 $ 40,000,000 NR NR $ 4,923,322 L.A.I.F. BOND PROCEEDS 0.00 6/1/03 $ 4,923,322 1.77 100.00 $ 4,923,322 NR NR $ 9,556,155 L.A.I.F. BOND PROCEEDS 0.00 6/1/03 $ 9,556,155 1.77 100.00 $ 9,556,155 NR NR $ 9,000,000 L.A.I.F. (HOUSING AUTH) 0.00 6/1/03 $ 9,000,000 1.77 100.00 $ 9,000,000 NR NR $ 63,479,478 Subtotals $ 63,479,478 1.77 $ 63,479,478 Pooled Funds-AIM $ 31,586,164 PRIME PORTFOLIO 0.00 6/1/03 $ 31,586,164 0.90 100.00 $ 31,586,164 Aaa AAA $ 31,586,164 Subtotals $ 31,586,164 0.90 $ 31,586,164 -Pooled Funds-HighMark $ - HOUSING AUTH CHK SWEEP 4.54 6/1/03 $ - 0.15 100.00 $ - NR NR $ - HOUSING AUTH TRT SWEEP 4.54 6/1/03 $ - 0.15 100.00 $ - NR NR $ - Subtotals $ - 0.15 $ 71 Total Investments $ 103,266,642 $ 100,834,961 1.712 $ 103,164,301 Cash $ 1,671,309 HOUSING AUTH CHKG 0.00 6/1/03 $ 1,671,309 0.00 100.00 $ 1,671,309 NR NR $ 51,108 HOUSING AUTH TRUST 0.00 6/1/03 $ 51,108 0.00 100.00 $ 51,108 NR NR $ 1,722,417 Subtotals $ 1,722,417 0.00 $ 1,722,417 Total Cash and Investments $ 104,989,058 $ 102,557,377 $ 104,886,717 NR=Not Rated Page 6 of 7 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 Treasurers'Statement of Investment Policy' is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 May 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 25 June 2003, PauLS. Gibson G G M.T. City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code 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% 5.70/o 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601 d CA Local Agency Debt 5 Years No Limit Not Authorized 53601 a Federal A encies 5 Years No Limit 5 Years 30% 0.0% 0.0% 53601 f Bankers's Acceptances 180 Days 40% 180 Da s 40% A-1 & P-1 I - - 53601 Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25* A-1+or P-1 0.0% 0.0% 53601(h Ne otiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - 53601 i Repos 1 Year No Limit 30 Days 20% AAA&Aaa 53601 Reverse Re os 92 Days 20% Not Authorized 53601 ' Medium-Term Notes 5 Years 30% A 3 Years 30% 1 A 19.1% 0.0% 53601 k Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% 1 AAA&Aaal 49.6% 31.3% 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% ;AASecuri er)& Not Authorized Securities 16429 LAIF No Limit No Limit 1 22.8% 63.0% 81.4% 100.0% 1 The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. Certified California Municipal Treasurer Page 7 of 7 CITY OF PALM DESERT OFFICE OF THE CITY TREASURER INTEROFFICE MEMORANDUM To: Carlos L. Ortega, City Manager From: Paul S. Gibson, C.C.M.T., City Treasurer Date: June 11, 2003 Subject: Palm Desert Exposure to Freddie Mac Derivative Securities Within the last two days, three of Freddie Mac's top executives have either been fired or forced to resign; the Securities and Exchange Commission ("SEC") and the Justice Department have announced separate criminal investigations of Freddie Mac's operations; and Congress has announced that it will hold hearings on the regulatory oversight of Freddie Mac. The Justice Department and the SEC are investigating Freddie Mac for obstruction of justice and questionable accounting practices with respect to derivative securities. Arthur Andersen was Freddie Mac's auditor during the time period being investigated. Moody's and Fitch's have both indicated that they may downgrade some of Freddie Mac's credit ratings. Ironically, Freddie Mac is considered more financially conservative than Fannie Mae. ►.am happy to report that the City of Palm Desert does not own aamU.S. Government Agency securities. The City Treasurer's Office has deliberately avoided buying these securities for the past two years, due to concerns about inadequate regulatory oversight of the issuing agencies; the illusory "implied guarantee" of the U.S. Government behind the securities; and the effect of a free fall in interest rates on the financial health of the issuing agencies. The City has, instead, elected to pursue "value investing" in terms of looking for fundamentally strong U.S. industrials that are experiencing short-term problems, but that are expected to survive and prosper. PSG:tj K9ge0re7AWold 2000NIEMORANDMCITY MANAGERTREDDIE MACAW STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO crly cP PALM DESERT FiraA\1CF DEPARTIiENT Local Agency Investment Fund 21103 JUN -9 All H- 07 PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 May, 2003 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITYTREASURER 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 PAI A i �_SFRT Local Agency Investment Fun51lqpJ1!CE DEPARTMENT PO Box 942809 Sacramento, CA 94209-0001� 3 J!>>F -Q AN il: ( 2 (916) 653-3001 May, 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 TREAER WU SACRAMEy y OF PALM DE ,_ FINANCE DEPARTMENT Local Agency Investment Fund 2@3 jUR -9 Ali 11: 07 PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 May, 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 : 9,000,000.00 Total Withdrawal : 0.00 Ending Balance : 9,000,000.00 Page : 1 of 1 CITY OF R A ?VI DESERT C A L 1 P O I2 N I A ASSET Fi?1?S ICE DEf l�f T?AEiVi STATEMENT MANAGEMENT PROGRAM JOINT POWERS AUTHORITY 1 t j�T 50VALIFORNIASTRRI:T 23RDFLOOR 2J1' v�?1i? I AN 0: 2J SAN FRANCISCO CALIFORNIA en 11 1 FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 5/3112003 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 5 mmaON of'S/31f/20Q3 I f� Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 5/31/2003 $255,519.96 $0.00 68,522,355.590 $68,522,355.59 ransaction Sun OWN%or /�1/2003 O/ imp ` Beginning Balance Purchases Reinvestments Redemptions Ending Balance $60,711,594.95 $25,000,000.00 $49,827.65 $17,239,067.01 $68,522,355.59 ADE -POS71 G ' OLL"AAIXMOUNT - SHAR SHARES THIS TOTAL AT DAT TR SgCTO,. O 7,F,i,NISAGOON PRIG. TjRANSAC11,wON SHARES OWNED o5/01/03 Beginning Balance 60,711,594.950 05/08/03 5/8/2003 Redemption-Wire Red. $1,200,000.00- $1.00 1,200,000.000- 59,511,594,950 05/12/03 5/12/2003 Redemption-Wire Red. $16,000,000.00- $1.00 16,000,000.000- 43,511,594.950 05/30/03 5/30/2003 Purchase-Wire Put. $25,000,000.00 $1.00 25,000,000.D00 68,511,594.950 05/$0/03 5/30/2003 CHK4 272 $7,046.97- $1.00 7,046.970- 68,504,547.980 05/30/03 5/30/2003 CHK#275 $32,020.04- $1.00 32,020.040- 68,472,527.940 05/31/03 6/1/2003 Accrual Income Div Reinvestment-DIV $49,827.65 $1.00 49,827.650 68,522,355.590 Message Line: THE DIVIDEND YIELD FOR THE MONTH IS 1.15% THE ANNUALIZED YIELD IS 1.15%. ti CITY OF PALM DESERT OFFICE OF THE CITY TREASURER STAFF REPORT REQUEST: Authorize broker-dealers who have requalified, to continue to do business with the City of Palm Desert. APPLICANT: N/A CASE NOS. N/A DATE: 25 June 2003 CONTENTS: None Recommendation: By Minute Motion: That the Finance Committee authorizes broker-dealers who have requalified, to continue to do business with the City of Palm Desert. Background: The City of Palm Desert's ("City") Statement of Investment Policy requires that Treasury staff annually solicit fully executed certifications and an annual report from each broker- dealer who is authorized to do business with the City. The following broker-dealers have fully complied with these requirements, and are recommended for re-authorization for another 12-month period: ➢ Wells Fargo Institutional Securities. ➢ Citigroup. ➢ Morgan Stanley. ➢ Merrill Lynch. Treasury staff did not solicit the required documents from Banc of America Securities, due to that institution's unsatisfactory performance (e.g., trade errors, staff turnover, and a failure to discuss the replacement of an account officer in advance). Consequently, pursuant to City of Palm Desert Treasury Policy No. 7, the City Treasurer has notified Banc of America Securities that the City has terminated the relationship. The City has not traded with Banc of America Securities for more than a year. Staff Report Annual Requalification of Brokers 25 June 2003 Page 2 of 2 Pursuant to City of Palm Desert Treasury Policy No. 7, the Office of the City Treasurer is providing the Finance Committee with formal notice of this termination. Submitted By: n t~1,.YI Thomas W. Jeffrey, ty ity Treasurer Approved By: �d y/— Paul S. Gibson, C.C.M.T., City Treasurer u v W M N M UU La O W c O ®^ I.- pq � 5 m v u v F \sd Z U1I ^� �n �' T I� W M N O 0➢ W �D Q\ OO M ,b W ® m ` DID L w id W�l a � ® p noo. o no noov, A ooM � � o rn ov 00UL p� } O� �n M N -- N O N � 1� �p 7 -• V' O N N T LU w Z LL a ® CQ Q O fn N N - - M O N Q m � h .-• vt fn rMi .-� y A ^ A A } } N 'O W O a,. 1p r r rr vt W W � } C CC CC CC cc cc CC � ttl a`i O O M fn O � M O tb O d b N 7 r •-- � b O C :E d o O N O O C U .. •� b M C U w e t o •,'�7 O m o i /i � � �`N i�J t Z •p w d > y o `b Zhi u :b Fu U) 0 o v `° m aaP Z' � .�„ °�.' � 0 3 � G � F s U :d � m O 'w 1 • • City of Palm Desert Parkview Office Complex Financial Statement • for Fiscal Year 2002-2003 May-03 May-03 k % YTD YTD ti % Budget Actual Variance Variance Budget Actual Variance Variance Revenues 0,, Rental $ 68,500 $ 69,298 $ 798 101.16% �_ ;.' $ 753,500 $ 776,513 $ 23,013 103,05% Dividends/Interest $ .,4,375 $ 228 $ (4,147) 5.21% $ 48,125 $ 71766 $ (40,359) 16.14% Total Revenues $ 72,875 $ 69,52.5 $ (3,350) 95.40%�.,�, �*' $ 801,625 $ 784,279 $ (17,346) 97.84% Expenses 1&fy c Professional-Accounting&Auditing $ 7,000 $ 7,000 $ - 100.00% At ' r $ 77,000 $ 77,000 $ - 100.00% Professional-Consultants $ 6,000 $ 51550 $ 450 92.50% )i�'^x;' $ 66,000 $ 63,183 $ 2,817 95.73% Tenant Improvements $ 2,500 $ - $ 2,5W 0.00% _ ,1"`i,^. $ 27,500 $ 322,103 $ (294,603) 1171.28% Repairs&Maintenance Building $ 8,000 $ 10,606 $ (2,606) 132.57% t �'+^',�,t9; $ 88,000 $ 101,655 $ (13,655) 115.52% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% i'i*ps,^ _ $ 25,300 $ - $ 25,300 0.00% Utilities-Water $ 250 $ 116 $ 134 46.49% _s ")' $ Z750 $ 1,106 $ 1,644 40.21% Utilities-Gas/Electric $ 5,000 $ 5,104 $ (104) 102.09% $ 76,000 $ 70,587 $ 5,413 92.88% Utilities-Trash $ 700 $ 1,052 $ (352) 150.28% $ 7,700 $ 5,260 $ 2,440 68.31% Telephone $ 150 $ 194 $ (44) 129.63%1r. k+, $ 1,650 $ 1,770 $ (120) 107.26% Insurance $ 521 $ - $ 521 0.00% g' :µ ,; $ 5,729 $ - $ 5,729 0.00% CF Total Expenses $ 32,421 $ 29,623 $ Z798 91.370/6�_'.,,,. t„'.. $ 377,629 $ 642,663 $ (265,034) 170.180/6 j t n $423r996`'S -141;616_.S (282;3W 133.40°"/0 Equipment Replacement Reserve $ 13,000 $ 13,000 $ - 100.00% $ 143,000 $ 143,000 $ - 100.00% iVet 1'ncorue "s: . ,_a, , .;; ,>$.,; .,27,454�: $� , 26,903S, ,y(551) ;97:9-„�91°, E ` �$280.99_ ',$ (1,&4.. $ (282;3 .0�49,�'/0� Note: During the month Parkview Office Complex also expensed$142,592 on the construction of a new roof system.(Sprayed Polyurethane Roof System) These expenditures will be capitalized and amortized over the useful life;recognized on a monthly basis as equipment replacement reserve. 2003 Investment Reportlnv Report 2003 i City of Palm Desert ® Parkview Office Complex is Vacancy Rate Schedule by Suite May 2003 Suite Square No. Tenant Feet 73-710 Fred Waring Drive -Two (2) Story Building 100 Hanover 1,915 100A EPA 645 102 Bergren 1,360 103 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 Vacant 700 208 Alzheimer's Association 960 210 Wilson, Pesota & Pichardo 3,040 2003 Investment ReportVacancy Report City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite May 2003 211 State of California Department of Food &Agriculture 937 217 Joe B. McMillan,. Esq. 775 220 Vacant 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-3,388/31,562= 10.73% 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-3,388/51,191 6.62% Occupancy Rate-47,803131,191 93.38% 2003 Investment ReportVacancy Report ' City of Palm Desert • Desert Willow Budget Vs Actual For the month of April 2003 Budgeted Actual Budgeted Actual April April S Percentage Yearto Year to S Percentage Revenue 2003 2003 Variance Variance Date Date Variance Variance Course&Ground S 611,965 S 611,299 S (666) 99.89% S 3,990,606 $ 3,855,569 $ (135,037) 96.62% Carts S 45,659 S 50,980 $ 5,321 111.65% $ 325,284 $ 308,545 S (16,739) 94.85% Golf Shop $ 96,211 S 105,467 $ 9,256 109.62% S 669,962 S 682,816 S 12,854 101.92% Range $ 2,300 S 4,250 S 1,950 194.78% $ 32,150 S 36,459 S 4,309 113.40% Food&Beverage S 1921515 S 221,278 S 29,763 114.94% S 1,245,126 S 1,344,343 $ 99,217 107.97E Interest Income S Soo S 52 $ (448) 10.40% S 5,550 S 1,697 S (3,853) 30.58% Tot. Revenues S 949.150 S 993-326 S 44,176 104.657. S 6268678 S 6.229.429 S (39.24919 .J7° Payroll Proshop $ 6,535 S 5,095 S 1,440 77.96% S 46,758 $ 42,996 $ 3,762 91.95% Can S 31,998 S 28,691 S 3,307 89.66% $ 243,638 S 227,699 S 15,939 93.46% Course&Ground $ 123,743 S 121,140 S 2,603 97.90% S 1,264,015 S 1,235,990 S 28,035 97.78E Golf Operations S 32,463 S 29,995 S 2,468 92.40% $ 284,834 S 250,921 S 33,913 88.09% General&Administration S 41,267 S 36,752 S 4,515 89.06% S 409,428 S 359,921 S 49,507 87.91% Food&Beverage $ 69,000 S 77,190 $ (8,190) 111.87% S 569,237 S 638,769 $ (69,532) 112.21% Tot. P roll S 305.006 S 298.8636.143 97.99% S 2.817.910 S 2.756.286 61.624 ,11 ° Other Expenditures Perimeter Landscaping S - S - S - 0.00% S - $ - S 0,00% Proshop $ 5,955 $ 9,118 S (3,163) 153.12% $ 37,305 S 46,579 S (9,274) 124.86% Proshop-COGS S 52,897 S 56,067 S (3,170) 105.99% $ 365,618 S 306,775 S 58,843 83.91% Can $ 19,395 S 12,082 $ 7,313 62,29% $ 147,000 S 136,158 S 10,842 92.62% Course&Ground-North Course $ 32,682 S 43,341 S (10,659) 132.61% S 576,135 S 541,106 S 35,029 93.92% Course&Ground-South Course $ 35,234 $ 42,497 S (7,263) 120.61% S 535,982 $ 526,746 S 9,236 98.28% Course&Ground-Desert Pallet-N $ 1,500 S 1,395 $ 105 93.00% S 12,170 $ 10,376 $ 1,794 85,26% Course&Ground-Desert Pallet-S $ 890 S 902 S (12) 101.35% S 12,810 S 7,693 S 5,117 60.05E Golf Operations S 865 S 602 S 263 69.60% S 12,670 $ 13,695 S (1,025) 108.09% General&Administration S 78,528 S 75,502 S 3,026 96.15% S 702,044 S 769,474 S (66,430) 109.46% Range S 300 S 2,175 S (1,875) 725.00% S 14,300 S 11,934 $ 2,366 83.45% Food&Beverage S 16,110 S 23,290 S (7,180) 144.57% S 142,060 S 149,466 $ (7,406) 105.21% Food&Beverage COGS $ 60,060 S 71,670 S (11,610) 119.33% $ 390,613 S 423,962 S (33,349) 108.54% Management Fee $ 25,000 S 25,000 $ - 100.00% $ 250,000 S 250,000 $ - 100.00% Financing/Lease S 3,298 S 7,814 S (4,516) 236.93% S 19,473 S 43,547 S (24,074) 223.63% Total Other F,x enditure 332.714 S 371.455 (38.741) 111.64% S 3.218.180 S 3.216.511 (18.331) 1 0, 7° Desert Willow Golf Academy Desert Willow Golf Academy S 10,750 S 13,818 S 3,068 128.54% S 119,700 S 101,799 S (17,901) 85.05% COGS-Merchandise S (9,677) S (4,175) $ 5,502 43.14% $ (84,845) S (45,684) S 39,161 53.84% Other Expenditures $ (1,925) S (8,015) $ (6,090) 416.36% S (22,423) S (46,262) $ (23,839) 206.31% S Learning Center Income(Loss) S (852) S 1.628 S 2,480 -191.08% S 12,432 S 9.853 S (2,579) 79.26% Operating Income(LOSS) S 310,578 S 324,636 S 14,058 104.53% S 245,020 S 246,485 S 1,465 100.60% Equipment Reserve Replacement $ 71,955 S 66,734 S (5,221) 92.74% S 719,550 S 667,340 S (52,210) 92,74% N•t Income Loss 238.623 S 257902 S 19.279108.08% 4 4 30) S f420.8551 S 53675 Snapshot of Golf Rounds Budgeted(me) Actual mo Variance --Variance°/. Bud eted td Actual td Variance Variance% Resident 2,300 2,771 471 120% 16,680 18,009 1,329 108% Nan Resident 6,780 6,677 (103) 98% 41,194 39,486 (1,698) 960% Other - - 0% - 177 177 100% Cora limema 350 519 169 148°/ 3764 3269 495 97% Total 9,430 9,967 537 106% 61,628 60,941 (687) 99% Folder:Desert Willow 2001:Dw2003;Fimmcial Statement Page 1 COD O� - - - - - k - ` � 00 O v ) � � L / is § § § \ ) /\ � \ / § { k \ ) § /\ \ \ / \ \ ) \ /) ) \ / 0 A ) * § 2A k = s 0 ) a Cl) k ) � § k@ ig � � ! ) ( E &! f \ * ) OD ) < � \ ~ \ ! ! /% it i � D m 6 x ,xexge �x x xxxoxx � �gxxxxxxxN �� xxx x x x � � xQx � 6 y »»wNww NNww«» w»«---------w « www w w « v R n n y wN»wwN N«wN«w w w«Nwww«Nwwww Nww » « N < DD } � LLJ qw»»»w wNN»«» «NNNw»NNN»ww N»« w N U D 4 < � x � � xx � _ xxx$ xx _ � xxx,xoamxxo�x x & x x � x x mxax x e « a x a d > > n 6e w �eo > j w wNwww w Nwwwww « NwwwN»wwwNpNN w «wN « w » w f 6 e O V N n f < — a" N w N w N N w N N N N N N N«N M N w N w N M N N M w » N a ggEqE Jr UU V C ti. 5 F i V U(� Uw r° dCiuu° c�o` i' u'. 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'o$000vo$ � cececececececececew a ce cecececececececew d cece�cecececececece M ^m� - �_s��axa"_a z ce cecececececece�ce d' F' v _ nn - G o u - `C �9 �����F���a $ ��o ������F�a•- � .€ a^�r8�d""- off; &a�_:a:ae- - Fy � µµ bcc' �x yy2 � bQpQp' b02 - y4�gpp$EYpSLc E _i��a � " E .�.tA02 SI< 3 V2 1i 6 �< l$ZO LLE6 U �6 6Z0Yp ..EHL U a 0 z 9 R.9 s. gg N6rtNMNFNRNIR _ s [S gg p NN%iMMfe tEiN N NM%NMf VMWce N '� G N ce�NwMNN„a� ram M F�< Z Z B N.e NMMNNNN N �F L5 w F LLp y iG _ yip .�j i t!qqt!t±±t T$ / )| § k « f z « * ■ - | co : . a ) ■ /� ) 2 $ ■ § 7 \ cl �] ! ! ; f .00 � | 2 �10J ƒ ) J ! ] � k ! ) ! $ a ) } ) ® Desert Willow . Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- APRIL 2003 Resident 2,771 $ 124,695 $ 45.00 2TWX-6 Non-Resident 6,677 $ 533,660 $ 79.93 67.00% Other - $ - $ - 0.00% Complimentary 519 $ 2,695 $ 5.19 5.20% Desert Willow Totals 9,967 661,050 66.32 100.00% Dw2003;POS AVG RD Page 9 Desert Willow • Breakdown of Rounds per point of sale system FIRECLIFF COURSE- APRIL 2003 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee-Weekday 1,224 $ 55,080 $ 45.00 24.93% Resident -Twilight 3 $ 135.00 $ 45.00 0.06% Total Resident 1,227 55,215 45.00 24.99% Non Resident Posted Weekday 559 $ 74,820 $ 133.85 11.38% IROC Des. PRTY - Weekday 157 $ 10,205 $ 65.00 3.20% IROC Member Guest- Weekday 59 $ 6,136 $ 104.00 1.20% Wholesale Weekday 937 $ 74,236 $ 79.23 19.08% Twilight 562 $ 42,065 $ 44.85 11.45% Outing 876 $ 59,595 $ 68.03 17.84% Desert Willow Players Club 16 $ 1,295 $ 80.94 0.33% Fee Special Event Variable 219 $ 13,713 $ 62.62 4.46% Total Non Resident Rounds 3,385 282,065 83.33 68.94% Other Rounds Junior Walking $ $ 0.00% Total Other 0.00% Complimentary PGA Member 135 $ M1,1795 $ 13.3012.75% Champions Club 44 $ 0.90% Employee / Employee Guest 119 $ 50 $ 0.42 2.42% Total Complimentary 298 1,845 6.19 6.07% Total Round (FireCliff) 4,910 $ 339,125 $ 69.07 100.00% Dw2003;POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- APRIL 2003 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee-Weekday 1,544 $ 69,480 $ 45.00 30.53% Total Resident 1,544 69,480 45,00 30.28% Non Resident Posted Weekday 365 $ 48,740 $ 133.53 7.22% IROC Des. PRTY- Weekday 153 $ 9,945 $ 65.00 3.03% IROC Member Guest - Weekday 38 $ 3,952 $ 104.00 0.75% Wholesale Weekday 860 $ 65,905 $ 76.63 17.01% Desert Willow Players Club 23 $ 1,840 $ 80.00 0.45% Outing 1,117 $ 67,811 $ 60.71 22.09% Twilight 529 $ 39,550 $ 74.76 10.46% Fee Special Event Variable 207 $ 13,852 $ 66.92 4.09% Total Non Resident Rounds 3,292 251,595 76.43 65.1007 Other Rounds Junior Walking $ $ - 0.000/0 Total Other - 0.00% Complimentary PGA Member 43 $ 575 $ 13.37 0.85% Employee / Employee Guest 145 $ 275 $ 1.90 2.87% COD / PDHS 33 $ - $ - 0.65% Total Complimentary 221 850 3.85 4.377/6 Total Round (Mountainview) 5,057 $ 321,925 $ 63.66 100% Dw2003;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of April 2003 Cash Reserve Analysis One Month Required Reserve 1 $ 500,000.00 Cash on Hand $ 799,631 41 Variance- Favorable Unfavorable $ 299,635.43 Page 12 Palmosert Recreation Facilities Corpotion Income Statement Apr-03 Apr-03 # % Budget Actual Variance Variance Food &Beverage Revenues $192,515 $221,278 $28,763 114.94% Total Revenues $192,515 $221,278 $28,763 114,94% Salaries $69,000 $77,190 ($8,190) 111.87% Cost of Goods Sold-F&B $60,060 $71,670 ($11,610) 119.33% Food & Beverage Expense $16,110 $23,290 ($7,180) 144.57% Total Expenses $145,170 $172,150 ($26,980) 118.59% Net Income (Loss) $47,345 $49,128 $1,783 103.77% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2003;PDRFC Budget Page 1 N 'n o o (D O I o C\l(I� o M o 0] o o O 0 0) r O CO m OD V O O N OD N (A CO d' O Z 00 O -Itr- O �co O (D It co LO LO f` In N V Oc0 M N N IN N N (n O o 0 o OD C N I M o N o o O o CO tq 0 � C Ou o F N C` O M O M N M'6 co M � (n M )O N O N O r M M 6 O 0) d W M M M N � � co N N M N Cl) 00 - r In 0) (O to (O of N m N O) LO coN CA 0) O LO M N V w � ap ,O V' CA 7 M ,O N (A W N L V O N (A (D uD M tT LO O 0 Z N M Cl) Cl) co LO V O co Cl) w 0 Q d m _ __ L)i 2 N o 0 0 0 0 0 0 0 0 0 0 o e N LY o 0 0 0 O O 0 0 O o 0 o N LUM O N V (O 0 (O cor m N tO r C LL O V N CO h O CO m (D r M r R O Q N N N N M p 0 0 0 0 0 0 0 0 0 0 0 o N y (p o W o O o 00 o 0 0 lO o (D o O o )!7 0 .- o M o X Nr ODOON �- OMMM V r0) r� 0) 00 NOD e} w 7 cj r r c r Lu Nu LU LnQ ``, ui c v o Q 1 �CP N C O c U Q 6N r/' 1 o N o OR O y Z 1 J I- co co 00 C O LL w Z 1((1 l 0 O O r O O O = F 4P c V I V 00 co 7 -- ~ ~ CO) A�1VGJ JG I — M M r C Z _IFA" 1 > O C o I OO o OD o I- o O d u Jq� r () (0000 N O r (' lr //GYM' r O Q (C ���>.� I_✓ l- O r O d O m Q 1. YY�y I6 OD O L 9 ((: (A W d' `� d O o � o O o Q F t (O CA O M Z M 7 co0) M D 00 Z vi 1i pad b �/ '. � aa02 La N (A W m O LOO 0) 00 .� > N M It N V �(D I- (D It (D O p Y V — LU M Q M N n D. O m O 00 1 0) 7 LJ.L 0) (O N V LO 00 LO OD N 1, r M O o CA Cl) IT N N (O N O) O V V m L Z a) O) ,O co M N CA V N CA W C LU co (n r Cl) co O OO Cn O 7 V LO (V O > (O '7 0) N 0 (O (O N N (O M LU L1! m() Cl) (D m ItN Ix 0 1 h (O It O 07 (n CO N N co 00 00 m 0 a0 Il) W V O co O 0C9 Q N co V V ,O Cl) to co O CA CO N O C � � O CLI LL G 7 N V O O) O N hm `d N Q C A ~ � u) O z o LL Q O CIIY Of PR9M OESERI 73-5io FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346—o6i I FAX: 760 340-0574 info®palm-descrt.org 20 June 2003 Banc of America Securities, LLC Attention: J. Stephen Huntley Managing Director 300 South Grand Avenue Los Angeles, CA 90071 Re: Removal from City Approved Broker-Dealer List Dear Mr. Huntley: As you may be aware, there has been no trading activity between the City of Palm Desert ("City") and your firm for more than 16 months. To some extent, this has reflected our dissatisfaction with certain aspects of the relationship between our two institutions (e.g., trade errors, account officer turnover, relationship management, etc.). Consequently, we do not foresee any need to continue a formal relationship since it is not profitable to either party. Therefore, please be advised that, effective immediately, Banc of America Securities LLC will no longer be eligible to do business with the City of Palm Desert. Sincerely, Paul S. Gibson City Treasurer ��.,nmex noam r.rt. 4 00 8nnmv m c 8 SS � N O b O O m O N M O O O O O O tN`I p K b O O OO G m Om O O d g m � m N N ' N •• N N p pm pO P vOi 4 bNOb' O YO1 O Yi 8 M O O O O O O 9 eF a', O aQ O Q m E S n $ mo o O o vOOi m g O Q m 6 J l u m $ n � 9 N B N N uEi � Q m � t C m O J EO 02 a E h E 2 0 4 Palm Desert Financing Authority Assessment Revenue Bonds,Series 2003 Sunterrace and Marano(Reassessments).Silver Spur Ranch Summary Statistics Dated Date 06/25/03 Delivery Date 0625I03 First Coupon 03/02/04 First Maturity 09/02/04 Final Maturity 09/02/28 Assessment Revenue Bonds,Series 2003 Arbitrage Yield 4.91292 % True Interest Cost(TIC) 5.05839 % "All-In"True Interest Cost(AIC) 5.42728 % Average Coupon 4.97084 % Net Interest Cost(LID) 5.08040 % Average Life 12.376 Years Sunlerrace(Local Obligation) Arbitrage Yield 4.05824 % Average Coupon 4.23364 % Net Interest Cost(UD) 4.42334 % Average Life 6.589 Years Prior Issue(Avg.Coupon) 8.14925 % Prior issue(Avg.Life) 6,896 Years Marano(Local Obligation) Arbitrage Yield 4.73767 % Average Coupon 4.80330 % Net Interest Cost(UD) 4.92449 % Average Life 10.314 Years Prior Issue(Avg.Coupon) 6.76446 % Prior Issue(Avg.Life) 10.782 Years Silver Spur Ranch(Local Obligation) Arbitrage Yield 5.15767 % Average Coupon 5.14813 % Net Interest Cost(LID) 522778 % Average Life 15.693 Years Prior Issue(Avg.Coupon) NIA% Prior Issue(Avg.Life) N/A Years Palm Desert Financing Authority Assessment Revenue Bonds,Series 2003 Suntemace and Marano(Reassessments),Silver Spur Ranch Costs of Issuance(Common) Bond Counsel 10,000.00 Financial Advisor 10,000.00 Disclosure Counsel 20,000.00 Trustee I Escrow Agent 5.000.00 Printing/Misc. 12,500.00 Total 57,500.00 Formation Costs of Issuance(Silver Spur) Bond Counsel 25,000.00 Formation Legal Fees 15,000.00 Financial Advisor 25,000.00 Total 65,000.00 Refunding Costs of Issuance(Sunterrace and Marano) Reassessment Engineer 10,000.00 Verification Report 3,000.00 Total 13,000.00 Total Costs of Issuance 135.500.00 DID/DIP/Production Calculation(Combined Series) Date Coupon Yield Price Principal (OID)/OIP 06125/03 09/02/03 03/02/04 09102104 2.000 2.000 100.000 143,000 0.00 03/02/05 09/02/05 2.750 2.200 101.165 180.000 2,097.00 03/02106 09ID2106 3.250 2.600 iD1.972 185,000 3.648.20 03/02/07 09/02/07 3.625 2.900 102.835 185.000 5.244.75 03/02/08 09/02/08 3.750 3.300 102.125 195,000 4,143.75 03/02/09 09/02/09 4.000 3.700 101.640 205,000 3.362.00 03/02/10 09/02/10 4,000 4.000 100.000 215,000 0.00 03/02/11 09/02/11 4.200 4.200 100.000 225,000 0.00 03102112 09/02/12 4.500 4.500 100.000 235,000 0.00 03/02/13 09/02/13 4.700 4.700 100.000 245,000 0.00 03/02/14 09/02/14 4.800 4.800 100.000 255,000 0.00 03/02/15 09/02/15 4.900 4.900 100.000 160,000 0.00 03/02/16 09/02/16 5.000 5.000 100.000 165.000 0.00 03/02/17 09102/17 5,100 5.100 100-000 175,000 0.00 03/02/18 09/02/18 5.100 5,200 98.951 185,000 (1,940.65) 03/02/19 09/02/19 5.200 5.300 98.914 195,000 (2,117.70) 03/02/20 09/02/20 5.250 5.372 98.500 195,000 (2,925.00) 03/02/21 09/02/21 5.250 5.372 98.500 110,000 (1,650.00) 03/02/22 09/02122 5.250 5.372 98.500 120,000 (1,800,00) 03/02/23 09/02/23 5.250 5.372 98.500 125,000 (1,875.00) 03/02/24 09/02/24 5,375 5.485 98.500 130,000 (1,950.00) 03/02/25 09/02/25 5.375 5.485 98.500 135,000 (2,025.00) 03/02/26 09/02/26 5.375 5.485 98.500 145,000 (2,175.00) 03)02127 09/02/27 5.375 5.485 98.500 155,000 (2,325.00) 03/02/28 09/02/28 5.375 5.485 98.500 160,000 (2,400.00) 4.423,000 (4,687.65) Gross Debt Service Schedule(Combined Series) Period Annual Date Principal Rate Interest Total Total 6/25/2003 91212003 3/2/2004 137,808.85 137,808.85 912/2004 143,000 2.000 100,427.50 243,427.50 381,236.35 312/2005 98,997.50 98,997.50 9/2/2005 180,000 2.750 98,997.50 278,997.50 377.995.00 3/2/2006 96,522.50 96,522.50 9/2/2006 185,000 3.250 96,522.50 281,522.50 378,045.00 3/2/2007 93,516.25 93,516.25 9l2/2007 185,000 3,625 93,516.25 278.516.25 372,032.50 3/2/2008 90,163.13 90,163.13 9/2/2008 195.000 3.750 90,163.13 285,163.13 375,326.25 3/2/2009 86,506.88 86,506.88 9/2/2009 205,000 4.000 86.506.88 291.506.88 378,013.75 3/2/2010 82,406.88 82.406.88 9/2/2010 215,000 4.000 82,406.88 297,406.88 379,813.75 3/2/2011 78,106.88 78,106.88 9/2/2011 225.000 4.200 78,106.88 303.106.88 381,213.75 3/2/2012 73,381.88 73,381.88 9/2/2012 235,000 4.500 73,381.88 308,381.88 381,763.75 3/2/2013 68,094.38 68.094.38 9/2/2013 245,000 4.700 68,094.38 313,094.38 381,188.75 3/2/2014 62,336.88 62,336.88 9/2/2014 255,000 4.800 62,336.88 317,336.88 379,673,75 3/2/2015 56,216.88 56,216.88 912/2015 160,000 4.900 56,216.88 216,216.88 272.433.75 3/2/2016 52,296.88 52,296.88 9/2/2016 165,000 5.000 52,296.88 217,296.88 269,593.75 3/2/2017 48.171.88 48,171.88 9/2/2017 175,000 5.100 48.171.88 223.171.88 271.343.75 3/2/2018 43,709.38 43.709.38 9/2/2018 185,000 5.100 43,709.38 228.709.38 272,418.75 3/2/2019 38,991.88 38.991.88 9/2/2019 195,000 5.200 38,991.88 233.991.88 272,983.75 3/2/2020 33,921.88 33.921.68 9/2/2020 195,000 5.250 33.921.88 228,921.88 262,843.75 3/2/2021 28,803.13 28,803.13 9/2/2021 110,000 5.250 28,803.13 138,803.13 167,606.25 3/2/2022 25,915.63 25,915.63 9/2/2022 120,000 5.250 25,915.63 145,915.63 171,831.25 3/2/2023 22,765.63 22.765.63 9/2/2023 125.000 5.250 22,765.63 147.765.63 170,531.25 3/2/2024 19,484.38 19,484.38 9/2/2024 130,000 5.375 19.484.38 149,484.38 168,968.75 3/2/2025 15.990.63 15,990.63 9/2/2025 135,000 5.375 15,990.63 150.990.63 166,981.25 3/2/2026 12,362.50 12,362.50 9/2/2026 145,000 5.375 12,362.50 157,362,50 169,725.00 3/212027 8,465.63 8,465.63 9/2/2027 155,000 5.375 8,465.63 163,465.63 171,931.25 3/2/2028 4,300.00 4.300.00 9/2/2028 160,000 5.376 4,300.00 164,300.00 168,600.00 4.423.000 2,721,095.10 7.144.095.10 7,144,095.10 OIDIOIP/PotlWimc41od (eualdm4re) om, Cam Yield Nw Btiltlpel (OID)701P OV45M osozm o3cm O9U204 2000 2.000 100.000 am 0.00 o3am MGM 2750 22 O 101.165 75.000 81375 03cm omen 32 2600 101.9n 75= 1.479.00 0347L07 o902Q7 3.625 2900 102935 75," 212525 03am osom 3750 3= 1OL125 B0,000 1,700.00 o3O209 090209 4000 3700 101.640 K5 1,994.00 0302/10 0901/10 4000 4000 100.000 9Oa00 OM 030P1tl 0902/11 4200 4200 100.000 90,000 000 03W2 OaM12 4.500 4.500 100.000 95.0DO 0.00 o302/13 0902/13 4.700 4.700 imM 10M ow 0302/14 090-d14 4,0 4.800 lw0 100.000 000 0392115 09=15 OM 0.000 100.000 0 0.00 0302me O902116 0000 0.000 IW.000 0 0.00 03wil? 0902'l7 a." 0000 loomo 0 0..00 0MV18 o9we 00aa O DO 100000 0 0,00 o?A219 0902/19 0000 0000 lm.= 0 am oao7 a90NN 0.a O0o0 100m 0 OM 039 R1 oauwi 0." 0000 lw0 0 000 0307n2 09O= O.M 00a0 lw,A 0 coo 03WM ORM3 a." 0.000 lw,0 0 0.00 a30224 09M4 0,000 OOOO 100.000 0 O.00 a3mn5 090225 oo00 O.ow 100." 0 OM a3a2n6 m226 O.000 0.0 100.000 a 0.00 O30D27 099]27 0.000 a." loo.a a am 040228 0902128 oo00 0000 1N.000 0 0.00 Cuss DeM Sesw StlndeeaM Ssvr3s Ce1d9aoon-NPV bass(Svtlenere) Prim Issue Poor Issue 4m824 Period lvnel Period An4d AnW Platen DM Piepp Root kaeea Total Total TORT Total Semite VB4e 6'26Lm3 B21dlm 98,73?50 96.7Mi() (0673250) (96m1.91) YYADa 24,750.SD 24,75080 39,6a250 (14.487.01) Wy 650m 2000 1&0" B3,R16S8 1a7.787.48 9964250 139165Oa (31,49752) (1583287) IMM!i 17;38689 1738688 W.13250 (1987923) 9/27dm5 750DD 2750 17,38688 92,386M 10977d75 1OZ33ZM 13q%500 (29,89125) (9,1m37) 3272Om 16A%m 1835553 34,79750 (16,55530) 9M)w 75.m0 3250 161y6m 91,% M 107.71125 104,797-5) 13959Sm (3158375) 01526.81) 3'YXN 15.1M.68 15,13658 32,W250 (14,5mH1) 92/NO7 75,0m 3625 15,13688 m,136S6 10527375 1o2o3250 lot=m (28.79125) (10,054.18) 3211008 13.m30 13,77750 2923ZF1 (12m278) 92rM W.000 3.750 13,M50 90MM 107,SYDo 10923250 13946500 (30.910.00) (12548.16) 3D2om 122"m 122nS0 25,99250 (10,9139T/ 922m9 nom 4.000 122ns0 972 m 109.55sm 110)9250 M%5M (27,4m.m) (10,6 ,M) 3IM510 10.5TTSO iris 0 2Z.55a00 (9.15216) 9=10 9Q000 4m0 10577.50 100,5n.5o 111,15500 117,550.00 14Qtm.m (M.M..00) (1;71629) 32 11 8,M.50 HMSO 186551M (7253.33) 9?2Ott m,ma 42m 8,M.50 96.Mm 107,SSSm 118,1 500 137,310 O (29,755.m) (14.306.32) 3=12 6,697.50 68875a 14,555a0 (5,40674) 9=12 95.000 000 6.887.50 101.887.50 /08MOD 124,SSSm 1M,110.00 (33,335.00) 05,671.90) 3=13 g75am 4,75am 10.Ot5.W W%8.05) 9211013 100,000 4.700 4.750.00 104,75am 1a9500.00 130,NSa0 14amaDD (30,590M) (16,799.81) 37J 14 2.400A0 24m.m 5125.m (1,73.83) 9M)14 tmm0 4S(10 2,400A0 102400.m 104,8m.m 134112Sm 1352MOD (30,450.00) (17,68B-%) YM)15 Om Om am 0.00 SW 15 0 0000 am am am am am am am 32w16 000 am 0.00 Om 9M)16 0 am am am am 0.00 0.00 am am YZM17 0.00 am 0.00 O.m SOM17 a 000 am Om 0.00 O.m 000 a.m am YM)18 Om am 0.00 0.00 WM)18 0 0,000 Om 0.00 am Om am 0.00 O.m a2R019 0.00 am O.m O.m 9 19 0 O.mO am am am am am O.m Om 321mm 0.00 am am am 921= a 0.000 Om 0m am 0.00 am O.m am 32=1 000 am 0.00 am 9212011 0 a.ODD 0.00 0.00 0.00 Om am 000 am 32/1022 0.00 000 a0D Om 9=22 0 0.000 Om am 0.00 0.00 am 0.00 am 30M 0m am Om Om %=1 0 am am 0m Om Om 0.00 am Om 321N24 Om Om am am 92/N24 0 0000 Om COD am 0.00 000 O.m am 3211025 Om 0.00 am am WZ?= 0 O.mO Om am am 0.00 0.00 Om am 312026 000 Om am am 921426 0 O0W am Om 0m Om am Om am 312m27 003 am am am 92=, 0 am O.m am am Om O.m Om Om Yb2028 0m am 0m am 92r2m 0 oom 0m am am am Om 0.00 0m mama 259,441,23 1,189,m1.23 1.189.44123 1.616,6525a 1.616.65250 (427211.27) (356.4I,Ab) NET FUNDS 171,527.22 171,527.22 NET TOTAL (255664.05) (186,M.23) Savnp%New tam% Savings%Old 1806% Palm aeh inenGn9A.O.Ily M.a W R.venu6 BenOa,Sane M2 Sunlwnw(R.uucsmen0 bpa WO aKWalpn vla6d 4.05U.Wex 0al Dab B( 3 . P.1 AIIIWnt N 8o . ow.mm Plus:AttNa6l ..' O w Lw:UrosnMisfa Dewum O.w LUu:Coro of laau.nu 0 w Lm:Bond lnaunnw Pnmhm 0.00 Lut Sul.ty Bono Premium OW (OD)I ON 9.533.W Total Tamtt 9 .5 DATE FUTURE VALUE PRESENT VALUE 51 003 (937.5710) 1 Q=W3 0w 0w 3=rz 29,2ww 24,032.66 BRROOa "Am," 39,12266 3=005 17.385.M 16,246,07 MW5 92.3WN U,610 TO 31b2w6 16.355.63 14 SU 47 OM20a5 91.36563 80.379.09 3R 033 1$,1wm 13.053.29 9Z2w3 Win 36,183.60 3=W0 13,223.W 11,113.16 9== 93,]3].W 26.139K 3=M 12222.w 9,7700.5 9QRW9 97.277W 75.070.91 302010 10.522.w 6,06030 91molo 1w,53250 25.35550 3 011 8.7]).50 6,N5.52 9=011 80,222.w 21,U9250 3 012 607w aA50.52 912/1012 101,W.W 70.443.37 VM013 4,350.00 3216]5 M013 1M750.W 60,57027 31M014 2.40000 1,%222 9=014 102400.W 65331.30 3R2015 000 G.w 9R12015 0.w om 3 16 0w Ow 9=016 0 w 000 302012 a 000 902017 ow 0w 3IV2016 0,w 0w 9=016 0.w 0.w 3WO19 0w 0w 912/2019 O.w 0.06 31V2020 0.w 0.w 91=020 0.0a O.W 31V2021 0 00 OM 91=021 om o00 3 022 0.w 0w 9WU2 0.w 0.w 3RR023 0w OW 9RR023 000 Ow 31M024 000 0.00 91212024 000 0.w 31=025 0.w 0.w 9=025 0w 0w 3 .20 Ow 0.w 9M2026 a w 0 w 3a2027 0.w 0.w VV202t aw 6w 302016 O.w 0 w 9IM028 0.w 0w 251.866.23 0.w ' OIDIdP/PmGuceon CeM4Yaean(Msain) Dine Capin Yi Pna Pii CPW (OID)/dP MOM mom 030 M ON264 2= 21D0 100.000 43000 000 030205 OMM 2750 22DO 101.165 50.000 582M 03wM 0902A6 3250 2600 101.92 50000 98800 03D207 049TM 3.625 2900 lam 50000 1.41750 MMM o90208 3.750 3300 IM125 550M 1,168.75 030M OKM 4000 3](D 101.640 M= 9o2o0 0302710 0 10 4.000 4.000 100.= MODO O.OD 03mil 080211 42DO 4200 100.000 M= 000 03W 2 DaW2 45 4ZM IOD.00D 65(:00 0.03 O 13 O9 13 4,700 4.700 IM." 70000 O.00 03W14 09M14 4800 4M 100.000 75,ODO O.w 03WJ15 OaW15 4.900 4.900 IM..000 75,000 OM 03W6 0902716 5,= 50DO MODO BO,ODO 0.00 OW 17 091)?/17 5100 5100 100.000 MM) 0.00 03MM8 0902718 5.100 5200 %%1 90,000 (944.10) 0302719 0902/19 5200 5" 98.914 95.000 (1,031,70) 010220 ON= 5250 5.372 %5DO 90000 (1.35000) 030221 09,=1 0000 0000 100DOO 0 O.00 o3wM OMM 0000 0000 100.000 0 OM 030223 o9W23 O(M 0000 100.090 0 ow 03=4 O9@24 O.ODD O.ODO 10D000 0 0.00 0302'5 090225 MOO 0.000 IMM D o00 CM0 O99Z26 0.000 0000 100000 0 0.00 oawx 09022] 0000 o000 f000O0 0 000 03ttV26 0902128 0.000 0.000 100.000 0 0.00 1,153.000 1,730.95 Gmas Gehl S"d1 ShcaOule end 5awSs Call cn-NlV Belie(Meraio) I'm Issue Prig Issue 4.73167 Period Al W Period A s A.W Pre D44e p-mw Rom hdaa Topl T44e1 Tdal Tp sftvm yako 6¢52003 VIUM 74,88500 7458500 (74585.00) (7423525) yy20D4 38091.15 38091.15 38500.00 (358159) 9272004 43000 2000 m5725o 635MM 1o3,66365 7850300 117,60a00 (W%135) (9574.9fi) aom 25,14250 414250 37,54000 (11.456.35) SWUM 50.000 2750 M142M 75.14250 10026500 77540A0 11808a00 (14,795,00) (216423) 32,2306 24.455.00 24,45500 3626000 (10.409.80) 922Do6 50,000 3250 24,455A0 74,45500 gwo.00 76.2WJCO 11252a00 (13610.00) (1,55184) 392007 23542W 23,64250 34,950.00 (9,52339) vhw 50,000 3625 2354250 73,64250 9728500 79,9W..00 114,92000 (17,63500) (5,19300) 3/U1o0B 22736Z 22]3625 33,475.00 (852302) W2rM 55,000 3750 2273625 77,13625 10047250 83,476..00 1189%W (16.477.50) (4,501.48) 322009 21170500 21,70500 31,91250 (7,7"M) B22009 560oo 4.000 21,70500 76,7a500 98A10.00 81,81250 113,625.00 (15215.00) (382306) =10 20,605M 20,60500 30,150.00 (6,97928) 922010 60,000 4.000 20.606M 80,605.00 10121000 85.150.00 11530100 (14,090.00) (324639) =11 19,40500 19,405.00 2Bd0750 (6211.71) 9%N11 65,000 4" 19,4a500 84.4a500 103,810,00 8830750 118615o0 (12.80500) (2659.95) =12 18,040.00 18.040.00 2629750 (5.4M.09) 922012 65.000 4.500 18,040.00 83.04000 10i.m..00 91297M 117,595.00 (16.51500) (5,3]0.87) =13 16577m 16,57750 24,103.75 (4,781.97) 9W013 70,000 4.700 1657750 8657750 10315500 94,103.75 118207.50 (15.052.50) (4,91.31) 3?7m14 14,,-, . 14,93250 21,74125 14,128.19) 922014 75000 4.800 1493250 8893250 104,86600 9874125 1184a2-M (13,617.50) (4,03266) =15 13,13250 13,13250 1921000 (3,51627) 9 15 75030 4900 13,13250 8813250 19126503 %210.00 118420.00 (17,155 W) (62W.62) 3=16 11295.00 11295.00 16A90.00 (2868.18) 9=16 80.000 5.000 11295.00 91295.00 102590.00 101,490.00 117,9900a (15.�000) (5.4%.46) 321dt17 9,225,00 9295.00 138a000 (2253.afl) 9=17 85.000 5.100 9.r'9. oo 91295.00 103,690.00 1036mm 117,20000 (13,610.00) (4,788.89) 3=18 7,127.50 7.127.50 10540.00 (1,71563) WMD18 90,000 SAW 7.127.50 97.127.50 104255.00 110.W..00 121,080.00 (16,92500) (6,587.07) =19 4,83250 4.842.50 7,140.00 (1,10702) 92=9 95.000 5200 4.M50 99.83250 104,66 w 112140.00 119.280.00 (14,61500) (5,767M) 3=020 2.36250 2xOm 3,570.00 (55280) 8?2020 90.000 5250 2,36250 9236250 94,72500 10EWO00 112.140.00 (17415.00) (7.24816) 312021 000 0.00 0.00 Coo 9=1 0 0000 000 000 am 0.00 0.00 000 0,00 32r= 0,00 0.00 0,00 0.00 94220V 0 0." 0m 0.00 0.00 00O 000 OOo 0,00 3?2w 0.00 0.00 000 0.00 92=3 0 0.000 O.00 o00 000 000 0.00 00o 0.00 3=24 000 0.00 000 o00 M2024 0 o.aoo 000 a00 000 0,00 000 0.00 0.00 3IL2025 O.00 O.W 000 O.00 942=5 0 0000 0.0o 0.00 0.00 000 0.00 0.00 o0o 3?2026 0.00 000 00a 000 30fm 0 o.ow 000 0.03 0.103 OW O.D3 000 0.00 3?2027 O.M 0M 000 0.00 S=7 0 0000 am 00a 000 0.00 000 000 000 321d]26 0.00 000 a.a0 0.03 9'U2028 0 0000 0.00 am 000 000 OM O00 000 1153.W0 571,236.15 1.72423673 1,7242WAS 2057,880.00 2,057,88000 (333,64385) (248255.51) NETFIINOS 14l0 55 145,054.51 NET TOTAL (188.589.27) (103200.93) Sa.i %New 8.95% Sadngs%Old B.67% Palm Uaaa F1lunom9Aumomy Asistu enl Revenue BonBe,SeOe•MI MemW(Rassaaa•mentl NN•Qe YW S=IMRIM D•IMry O•b BR52W] n•la 4.73]0] PerMnunlol BOn. 11531.M.00 Plus Arousal Iniemt 0.00 Le••:Uod..leYe Dumunl OM Leu:Do•U W I•su•nos O.W Ln•:90nB Ineunn.Pnmlum OM Less:Surety Bono Pmau m 000 taD)r ow 1?30.95 Total TaMe1 DATE FMREVRLUE PRESERTVRLUE BUS/ I1,31.] I 1,1 .51 9U/2003 000 0.W 3U/200/ 35,091.15 33,9111.71 9M!W4 58,57250 B•,116I.90 3=005 25.1<2.50 23,233.81 902005 75,142.50 67,031.27 =006 2405500 21,58,114 9/02W8 71,155,W fi#.,M.2 =!O07 23,8e2.W 19,899.50 9/2U007 73633.50 645363• 3UU08 22,736.25 18.256.79 912UW8 ]]?3825 60,9763• 3=009 21,705,00 10631 M 9=009 TET05.00 5],4150] 3UR010 20.605.00 15,DW.32 9=010 8000500 57,57431 302011 19.405 00 13.539 81 W=011 80,*zm 57,530.67 1=012 10W0 W. 12.012.58 91MO11 83,040.W 54,011.t0 312/2013 16.577.50 10,532.8B 9UU013 86.577.SO 53.13599 312 014 1<,932 S0 9,053.68 9=014 89'm 50 53,268.93 3U/2015 13,132.50 7,59809 902015 08.132.50 49,011.0 3IV2016 11.29500 6,23602 WV2DIS 91.295.W a9.2W0 3U12017 9,295.00 4297.06 9=17 U295.W 48,529,61 31W2018 7.127.50 3583.0 9U/9010 97,127.50 :7,I0011 31272019 4032.59 2,318 39 9/V2019 99,832,50 46,185,34 3/2/2020 236250 1,001.56 902020 92.36250 41,305 m 302021 000 a.W 9/2/2021 0.W 0W 31V2022 0.W 0.W 21=022 000 0.W 31V2023 000 0.W 9/L2023 O.W O.W 3W2024 0 W 0.W OM024 000 0W 31=025 0 W 0.W 902025 a00 0.00 3/2/1026 OW 000 WZ2026 O.W O.W 302027 0W 0.W 902027 U.W goo 3IV2028 ON 0W 91212020 coo O W s 9.W5.20 0.00 DID/OIP/Production Calculation(Silver Spur) Date Coupon Yield Price Principal (OID)I OIP O6/25/03 09/02/03 03/02/04 09/02/04 2.000 2.000 100.000 35,000 0.00 03/02/05 09/02/05 2.750 2.200 101.165 55,000 640.75 03/02/06 09/02/06 3.250 2.600 101.972 60,000 1,183.20 03/02/07 09/02/07 3.625 2.900 102.835 60,000 1,701.00 03/02/08 09/02/08 3.750 3.300 102.125 60,000 1.275.00 03/02/09 09/02/09 4.000 3.700 101.640 65,000 1,066.00 03/02/10 09/02/10 4.000 4.000 100.000 65,000 0.00 03/02/11 09/02/11 4.200 4,200 100.000 70.000 0.00 03/02/12 09102112 4.500 4,500 100.000 75,000 0.00 03/02/13 09/02/13 4.700 4.700 100.000 75,000 0.00 03)02114 09/02/14 4.800 4.800 100.000 80,000 0.00 03/02/15 09102/15 4.900 4.900 100.000 85,000 0.00 03/02/16 09/02/16 5.000 5,000 100.000 85,000 0.00 03/02/17 09/02/17 5.100 5.100 100.000 90,000 0.00 03/02/18 09/02/18 5.100 5.200 98.951 95,000 (996.55) 03/02/19 09/02/19 5.200 5.300 98.914 100,000 (1,086.00) 03/02l20 09102120 5.250 5.372 98.500 105.000 (1,575.00) 03/02/21 09102121 5.250 5.372 98.500 110,000 (1,650.00) 03/02/22 09/02/22 5.250 5.372 98.500 120,000 (1,800.00) 03/02/23 09/02/23 5.250 5.372 98.500 125,000 (1,875.00) 03/02/24 09/02/24 5,375 5.485 98.500 130,000 (1,950.00) 03/02/25 09/02/25 5,375 5.485 98.500 135,000 (2,025.00) 03/02/26 09/02/26 5.375 5.485 98.500 145.000 (2,175.00) 03/02/27 09/02/27 5.375 5.485 98.500 155,000 (2,325.00) 03/02/28 09/02/28 5,375 5.485 98.500 160,000 (2,400.00) 2,340,000 (13.991.60) Gross Debt Service Schedule(Silver Spur) Period Annual Date Principal Rate Interest Total Total 6/25/2003 9/2/2003 3/2/2004 77,967.09 77,967.09 9/2/2004 35,000 2.000 56,818.13 91,818.13 169.785.22 3/2/2005 56,468.13 56,468.13 9/2/2005 55,000 2.750 56,468.13 111,468.13 167,936.25 3/2/2006 55,711.88 55,711.86 9/2/2006 60,000 3.250 55,711.88 115.711.88 171,423.75 3/2/2007 54,736.88 54,736.88 912/2007 60,000 3.625 54,736.88 114,736.88 169,473.75 3/2/2008 53,649.38 53.649.38 9/2/2008 60,000 3.750 53,649.38 113,649.38 167.298.75 3/2/2009 52,524.38 52.524.38 912/2009 65.000 4.000 52.524.38 117,524.38 170,048.75 3/2/2010 51,224.38 51,224.38 9/2/2010 65.000 4.000 51,224.38 116,224.38 167,448.75 3/2/2011 49,924.38 49.924.38 91212011 70,000 4.200 49,924.38 119,924.38 169,848.75 3/2/2012 48,454.38 48.454.38 9/2/2012 75,000 4.500 48,454.38 123,454.38 171,908.75 3/2/2013 46.766.88 46,766.88 9/212013 75,000 4.700 46.766.86 121,766.96 168,533.75 3/2/2014 45,004.38 45,004.36 9/2/2014 80,000 4.800 45,004.38 125,004.38 170,008.75 3/2/2015 43,084.38 43,084.38 9/2/2015 85,000 4.900 43,084.38 128,084.38 171,168.75 3/2/2016 41,001.88 41,001.88 9/2/2016 85.000 5.000 41,001.88 126,001.88 167,003.75 31212017 38,676.88 38,876.88 9/2/2017 90,000 5.100 38,876.88 128,876.88 167,753.75 3/2/2018 36,581.88 36,581.88 9/2/2018 95,000 5.100 36,581.88 131,581.88 168,163.75 3/2/2019 34,159.38 34.159.38 9/2/2019 100,000 5.200 34,159.38 134,159.38 168,318.75 31212020 31.559.38 31,559.38 9/2/2020 105,000 5.250 31,559.38 136,559.38 168,118.75 3/2/2021 28,803.13 28,803.13 9/2/2021 110.000 5.250 28,803.13 138,803.13 167,606.25 3/2/2022 25,915.63 25,915.63 9/2/2022 120,000 5.250 25.915.63 145,915.63 171.83125 3/2/2023 22,765.63 22,765.63 9/2/2023 125,000 5.250 22,765.63 147.765.63 170.531.25 3/2/2024 19,484.38 19.484.38 9/2/2024 130.000 5.375 19,484.38 149.484.38 168.968.75 3/2/2025 15,990.63 15.990.63 9/2/2025 136.000 5.375 15,990.63 150,990.63 166.981.25 31212026 12,362.50 12.362.50 9/2/2026 145,000 5,375 12,362.50 157,362.50 169,725.00 3/2/2027 8,465.63 8,465.63 9/2/2027 155,000 5.375 8,465.63 163.465.63 171.931.25 3/212028 4.300.00 4,300.00 9/2/2028 160,000 5.375 4.300.00 164.300.00 168,600.00 2,340,000 1,890,417.72 4,230,417.72 4,230,417.72 Palm pe ."re, "I Fmencin9 AumOmy Aaeesamer Revenue Banda,9edes 2m3 Smr Rents AN11ra9e leb mcu aLon DNIva3 Dad, 8(2512m] Yield 5.15767 Par Amour Of Banda 2,N0.000.00 Plus:A¢Ned Interest 0m Less:UrveMmtaes Demure O.m Lees:Coabatasu.nu O.m Leas:Bond Insurance Premium OM Lua:Surety Bond Premium O.m (00)1 OF (13,99169) TOM Taryel �,!2 DATE FUTURE VALUE PRESENTVALUE 6 5l 3 (2.326.00840) Qmm= 9MOW3 Om 0.00 302m4 77,967.09 15,290 06 92004 91.818,13 08.43645 31=005 56,468A3 5162199 9=005 111,468.13 99,724,92 31212m6 55,71L88 48,589.56 91=06 115.711.06 98301.94 31M007 54.73688 45.36905 M2007 114,13688 92.70 a 31=008 53649,00 42,25993 snum6 113.649.36 67,271.70 302m9 52,524.30 39,31964 9021109 117,524.38 85,766.72 3=010 51,224.38 36.44263 9=010 118,2&.38 11O,606.96 3=011 49.924.38 33,954.30 902011 119.92cm 79,O .70 3IZ2012 40.451.38 31,13401 9/=012 123454.38 27.3M48 31=013 46766,68 28,59.80 91mon 121,766.IN 12,480.5E 302014 45.004M 26,A17.14 9IZ2014 125,m4.38 70.119,37 31MOI5 43.084.30 23.161,57 9/ 015 128,084,30 60,064.24 3IZ2016 41.001.88 21 4m.35 9IV2016 126,m1.08 64,30121 31Z201J 38,016.00 19,364.92 902017 128876,88 62,680.IN 302018 36,581.08 17.317.0 91Z2018 131.581.88 60J22.14 31Z2019 34,15938 15.36750 9=019 134,15938 56,83781 31Z2020 31559.38 13,492.93 912 020 136,559.38 56,916,93 31Z2021 20 803,13 11,703,12 91V2021 130.803.13 54.979,86 3IZ2022 25,915.63 10,001.10 91Z2022 1.5.915,63 54,921.61 3IM023 22,765.63 8354,31 912/2023 1p,765.63 52,862.39 31Z2024 19684.38 6,79520 902024 149,404.38 50,822.22 3122025 15,99063 5299.87 91Z2025 1w 990.63 46805.67 Sn2026 12.362.50 3,893.95 902026 157.36250 48,32012 31Z2027 0?6563 253412 9IM027 163465.63 47J02.12 3102028 4,300.00 l,V3.27 9IZ2026 164,300.00 45,565.M 1,904,409.32 0,00 LP Im Daun In nmn9 A owy NNM{manl Revenue BOnEL 266 Senae 3 SunlamwendM .(Reeesue.),&.5wr R AM 'vaQe"OW ualculatlm Y1.1d De1e B/4.91M Ylsld 4D1292 Per Ameunl of Bwde 4,423,ODO.W PIUL AC W Inbreal 0 w Lua:UMed W.D'RwuM Dw Len:C..0 Pl leuanc. 0 w leers dImunnw Pnmlum 000 Lau:S.w,Bend Premium O60 (DID)/OIP (4.66165) Total Ter9e1 4 TM 1l_5 DATE FUTURE VALUE PRESEW VALUE SI 00 (4. 1 2. 5) (4,41F12.5) 9/2 M3 0.00 0.00 3l2(1004 131,006.W 133.29520 9IZW04 243,422.W MOW 49 312Y29D5 98,993.W 91.216.W 9=w5 228,993.50 250,911.14 3Y ma 96,5n.W 04.72447 9WW6 28l.W2.M 241,183,09 302W2 93,516.25 28.196.25 902W2 274,516.25 222.W6.99 31Z2W8 90,163.13 71,821.07 9( 000 285,163,13 221,705.73 =009 86,506.a 6S.BgID 91MM9 391,W6.86 216W0.51 31M010 82,406.N 69,57D.19 9wolo 292,406.88 209.8U.& 31=011 78,1D6.08 53.708.05 9woll 303,ID68B 203.724.W 3WO12 33,3816E 48,1MN 902012 308,381.08 192.4W.22 302013 88AMM 42,554U3 9=613 313A94.W 1W.92069 31Z2014 62.33668 37.11041 912 014 317,336,88 164.382J0 31Z2015 56,218.08 31.881,50 9=15 216 21B 88 119,680.20 3IZ2015 52,296.88 28,253.29 9W2016 217,296.88 114,57965 3IP2012 48,171.88 24291,81 9=017 223,171,88 112,102.37 3IZ2018 43,709.38 21429.43 9/&2010 228,709,38 109,U1.14 302019 38,991.68 1821O.W OW2019 233,991,88 106,664,21 3/WO20 33,921.88 15,092.40 91212020 220,921,88 99.409.19 31Z2021 29,803.13 12.207W 9IZ2021 138.803.13 57.419,55 302022 25,915.63 10a63.64 902022 145,915.63 52,502.09 31V2023 2276563 8.75633 91=023 147,765.0 55,47235 3=u2 1940430 7.13921 91=024 .9,484,38 53.458.93 31Z2025 15.9W63 5,58160 902025 150.WO.63 61.439.08 302026 12,362W <,110.67 9IZ2026 157,362.50 51070.29 302022 6p65.63 2681,56 9/2/2027 16346563 50.537,63 3IV2020 4,300.00 1,29Z53 902020 1W,39000 40,389,07 2,2578215 000 Flm wn Financing AuNanty taemenl Revenue B ,Sense 2003 9-new eM Mrew(RessssesmenR).Sivr Spur Raran rve menqCn.t ) worry Dar 8(lL2fgl role 5.05639 ParAnountot6r18s 4,123,00000 Plus:Apruw Intelset 0.an Less:uMan Wes Dlsomm (55.357.50) laaa'.Dow w is. am bn:I)ond Insunnw P.1um 0.00 Lses:Surety Sand Pamlum 0 DO (OID)I OIP (4.002.85) Total Taryat DATE FIMREVALUE PRESEWVALUE 612 03 (<, Fa. ) (4,30.Us) 9W003 0.00 DOD 3,20oa 137,808,85 109165.9R 90200a 243,427,50 2211,4n.9a 3f ors %'997m 9100052 9WW5 228,999.50 250.133.82 1 006 96.522.w 84602.08 *,2006 281,522.50 240.08.80 3I 007 93,51625 71]66.)1 902001 218,51625 225,96042 3,2008 90,10.13 21,3aa.93 9I212D00 285,163.13 no 079.01 L212O09 06,505.88 65,116.33 9,2009 391.506.83 214,013,19 3Y2l2010 82.4M 88 59,001.56 *,Mato 297.406U 207,10533 312/2011 78AW.88 53,203.27 9I0@011 303.105.88 201,37L19 3=012 73,381.88 47.6A9.15 9=012 308381 BB 194,892.M 9212013 68.1)"38 41,073.01 9,2013 313,014M 188,M290a 3,2014 62.336.80 36.551.81 9,2014 317.33680 181ne136 3I M015 56216.80 31,347,07 9121015 216216.88 117.628.01 3IZ2016 522%" 27,149.13 902016 217,29688 112.455.20 302017 48,171.00 24,314.00 902017 223,171.BB 109,867.00 3,2018 13,20930 20,987.37 91=018 228.709.38 107.10249 31=019 38,991.88 12,809.99 902019 233,99188 104241.72 LZ2020 33,921.88 14,939,17 9IM020 228,921.88 97013.60 3,2021 28,803.13 11.905 23 902021 138,803.13 55,956.41 302022 25,915.63 1D1B998 902022 145.915.63 55,957 37 3ID2023 22,76563 8,51506 91Z2023 142.765.63 53,905.59 3,2024 19 40a.39 6,932,65 91MO2a 149 481.38 51 V536 31V2025 15,990 fi3 5912.32 902025 15000.63 49,8<4.84 302026 12,36250 3,0042 9,2026 167,362,50 49 417 DO 3IM022 8,46563 2,592,90 9,2027 163A6563 .8,032.22 322020 4,300.00 1,252.86 902028 161300.DO .6,689.85 2701.010,25 000 Pelm Oesen Pinancln9 Pulnonry Nsseumant Revenue Banc,&ones 2W3 Sunbmw an Maano IReaaeesarmmb),60vx SWr Ranch ul n T.tressed .I ) DwNs,Dm 8Y L00] Yield 5.42T28 Party ntal Bona 4,433.M.W Ploc:M eE Inbred 0 w L.Und.lerc Dl.ss (55383.W) Lasc Dom of lvoanw OXW.W) Les..Bon Inaurenw pnnoW O.W Lxs:Sulsty Bon Phnom O W (01D)I OIP (4.M1 ) Total Tagel A.3 62415 ORTE FO RE VALVE PRESERTVALOE rz51 OJ (4, ,2.5) 4, ) 912RW3 Ow Ow L Ws 133,808.85 132.837.51 9R W4 243,427.50 228,445.83 L 2W5 98.993.W 90,45083 9MW5 230,997.So 248,125.w 8r M w,52250 83,50t.03 9WW6 281.522.60 237,W4.67 32 W) 83,515.25 28764.16 9=002 21B,516.25 222.585.69 3I21300 90,163.13 70.153.21 9R/2w0 205,163.13 216.014.95 302W9 685wa 63.298.W 9Z 09 291,W6.0 2W,3w.63 L 2010 82,40680 53.6w.24 9Z2010 297,406.88 202,400.59 3=011 38.1w.80 51.253.42 91mal l 303.106 88 195.531.82 ] 012 73,381.08 46.007,41 91=012 3w,381.80 Iw,w303 3MO13 BB,09s.38 40,53671 9=013 313.094.38 181461,46 3M014 62,336,88 35,174,35 902014 313,33B.0 174,330.53 X02015 56,21608 wW.09 902015 2164216.88 112,54647 302016 52.29688 26,512.11 91Z2016 217,29688 107.249.15 3M209 4B,171.88 23.14759 91212012 2234171,88 IN 40585 3=018 43.109 38 19 908.13 9IV2016 228,709.38 101417.25 31V2019 38,991.88 16,03348 9/2rz019 233,991,88 98,349.55 3=020 33.921,88 1380100 9IV2020 228921,89 91,201.63 31Z2021 28,803.13 11.131.89 902021 138,W3.13 52,415.33 3R12022 25.91563 9.S2380 902022 145,915.63 52,228.14 31V2023 22.765.63 2,93331 91Z2023 14),]6563 w.132.52 31V2024 19 464,5 643583 9IM024 149484]0 4B,671,32 31=025 15.990,63 5,W6 42 9/Z2025 150,990.63 46,023% 302025 12.362.50 3.668.70 9=6 157.30,50 45465.19 302027 846563 2,341.27 912/2027 163465.63 44,765.% 3RI2020 4,30000 1,14642 9112028 16 3000 42,64B 41 2,916,570.25 0w ! | ] § « - § ! | ! ! ! # § ! ! ! ! ! ! ! ! ! § ! ! ! ! ! ! ! ! ! ! ■ / § ! , ! ! l • , 1 . 888a8e8888s � ! ! � ; - � ! a « « , . � . � � lka � . ■ a . a � . ae , aaa � aa , aa . � , ! ■ a . aa , a . ale , . \ ! ! ! ! ! ! ! ! ! ! § § ! § ! § ! ! § ! ! § ! ! ! ! ! § ! ° ° ° ° ° ° ° ° ° ° ° _\ | § � § § § ] § § § | § § § § § § ( § § ) § ) § ( § § ( § ( § § § ) ) § § § ) ) ) § § \ § § § § § § ) § § ] § ) 8 8 8 8 8 8 8 8 8 8 8 8. 8. 8 8 8 8 8 8 8 8 8. 8 8. 8 8 k .9 s 9 s o a o 8 8 8 8 8 8 8 8 8 8 63 S Q 8 8 8 8 F 8 8 8 8 8. 8 8 8 18. 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 K 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8. 8 RKN3 'r° A �2 9Smm R 99 S B e. � 8 B m 8888a88888888888888 �, r 8rS a 88888888888888888888888888 8 M 9 A R R 8 S m R R n B 9 fi U F g d 8 S 8 S A 8 8 8 8 R 8 8 & S 9 9 & f - N@ a Clly of Palm Desan,California Assessment District No.94-2(Suntermce) SLGs Purchase and Escrow Cash Flow Schedule Delivery Date 6/2 512 0 0 3 0.41 Escrow Total Periodic Cash Type Date Requirement Principal Rate Interest Receipts Difference Balance Con 9/2/2003 1.076.732.50 1,074,78200 0.96 1,945.19 1,076,732.19 (0.31) 0.10 Totals 1,076,732M 1,074,767.00 1,945.19 1,076,732.19 (0.3Q City of Palm Desert,California Assessment DistrIct No.943(Marano) SLGs Purchase and Escrow Cash Flow Schedule Delivery Data 6/25/2003 0.54 Escrow Total Penodic Cash Type Data Requirement Principsl Rate Interest Receipts Difference Balance, Geri 9/2/2003 1,264,535.00 1,262,250.00 0.96 2,284.46 1,264,534.46 (0.54) - Totals 1,264,535.00 1,262,250.00 2,284.46 1,264,534.46 (0.54) City of Palm Desert,California Combined Series(Suntarraca and Moreno) SLGs Purchase and Escrow Case Flow Schedule Delivery Date 6/2 512 0 0 3 0.95 Esrmw Tool Periodic Cash Type Date Requirement Principal Rate Interest Receipts Dilterenca Balance Can 902003 2,341,267.50 2,337,037.00 0.96 4.229.65 2.341.266.65 (0.65) 0.10 Totals 2,341,267.50 2,337,037.00 4,229.65 2.341.266.66 (0.65) City of Palm Desert,Catifomia Combined Series(Suntenece and Moreno) Escrow Yield Calculation Delivery Date 6/25/2003 Yield 0.973933 Purchase Price of Securities 2,337,037.00 DATE FUTURE VALUE PRESENT VALUE 6/25/2003 (2,337,037.00) (2.337,037.00) 9/2/2003 2,341,266.65 2,337,037.00 4,229.65 0.00 Palm Desert Financing Authority Assessment Revenue Bonds,Series 2003 Silver Spur Ranch Project Fund Balances Series 2003 Bond Proceeds 2,033,076.84 Plus:Cash Payoffs 505,239.90 Plus:Agency Contribution 924,756.00 Total Project Proceeds 3,463,072.74 Initial Project Cost Estimates(1) 3,954,756.00 Less:Estimated Bond Costs(1) (464,359.00) Less:Opt Out of$3,000 Contractor Fee (78,000,00) Net Project Requirements 3,412,397.00 Balance 50,675.74 Notes (1)Based on Initial Engineer's Cost Estimates Dated 2111103