HomeMy WebLinkAbout2004-07-28 IFC Regular Meeting Agenda Packet CITY OF PALM DESERT
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INVESTMENT & FINANCE COMMITTEE
AGENDA
July 28, 2004, 10:30 a.m.
North Wing Conference Room
1. 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. A�roval of Minutes
Minutes
Rec: Approve minutes of the regular meeting of June 23, 2004, as
submitted.
Action:
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r INVESTMENT & FINANCE COMMITTEE
AGENDA July 28, 2004
VI. CONSENT ITEMS HELD OVER
None.
VII. NEW BUSINESS
A. 1. City and Redevelopment Agency Investment Schedules and
Summary of Cash Reports for May and June 2004
Rec: Review and submit for the next City Council agenda.
Review the presentation on the investment graphs.
Review the investment activity for May and
June 2004.
Action:
2. Securities Purchased July 2004
Rec: Informational item for the Committee to review. No
action required
3. Quarterly Account Statements on Deferred Compensation
Plans
Rec: Informational item for the Committee to review. No
action required.
B. State of California Local Agency Investment Fund Balance forthe
month of June 2004
Rec: Informational item for the Committee to review. No action
required
C. California Asset Management Program (CAMP) June 2004
Statements
Rec: Informational item for the Committee to review. No action
required
D. City and Redevelopment Agency Monthly Financial Report for City
Council for June 2004
Rec: Report and submit to City Council
Action:
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INVESTMENT & FINANCE COMMITTEE
AGENDA July 28, 2004
E. Parkview Professional Office Buildings - Financial Report for
June 2004
Rec: Review and file report
Action:
F. Palm Desert Golf Course Facilities Corporation Financial
Information for June 2004
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:
C. Reimbursement Policy for Staff Costs Associated with Land-Based
Financing Districts
Rec: Report and submit to City Council
Action:
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INVESTMENT & FINANCE COMMITTEE
AGENDA July 28, 2004
X. NEXT MIEETING - Meeting for August 25, 2004 cancelled due to Audit.
Next scheduled meeting is September 22, 2004.
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 21s' day of July, 2004.
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CITY OF PALM DESERT
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INVESTMENT & FINANCE COMMITTEE
Minutes
June 23, 2004, 10:30 a.m.
North Wing Conference Room
I. CALL TO ORDER
A regular meeting was called to order by Chairman Gibson on Wednesday, June 23,
2004 at 10:32 a.m.
II. ROLL CALL
Present: Absent:
Paul S. Gibson, Finance Director Buford Crites, Mayor Pro-Temp
Bob Spiegel, Mayor
Carlos Ortega, City Manager
Thomas Jeffrey, Deputy City Treasurer
Everett Wood
Bill Veazie
Russ Campbell
Thomas Wormley
Dave Erwin, City Attorney
Also Present:
Jose Luis Espinoza, Assistant Finance Director
Dennis Coleman, RDA Finance Manager
Rodney Young, General Manager Desert Willow
Diana Leal, Recording Secretary
Guests:
Mike Cavanaugh, Securities
III. ORAL COMMUNICATIONS
Mr. Mike Cavanaugh, Vice President of Redwood, Morgan Securities in the Public
Finance Department introduced himself to the Committee members. He said that he
was in attendance to ask that his company be placed on a bidders list for the
issuance and refinancing of municipal bonds. Mr. Gibson said that the City is in the
process of preparing a request for bids and he would be happy to include Mr.
Cavanaugh's company.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
Mr. Spiegel introduced the City Manager and Committee Members to Mr.
Cavanaugh. Mr. Spiegel asked staff about the recent refunding bond issue. Mr.
Gibson said that the last refunding bond was derived from a proposal provided by
Citigroup. It did not go through a request for qualifications process, however, in the
future, staff is proposing to create an RFQ where companies are qualified in the
same manner the broker/dealers are qualified where there is an approved list of
vendors. From that list, depending on the committee's determination, vendors will be
rotated or the vendors can bid on the jobs separately. September will probably be
the soonest they can have everything in place. At that time, they can bring the bid
back to the committee and make a final determination.
IV. COMMITTEE MEMBER REPORTS
None.
V. CONSENT CALENDAR
A. Approval of Minutes
Motion was made by Mr. Wood and seconded by Mr. Veazie to approve the
Minutes of the May 26, 2004 meeting as submitted with Mr. Spiegel and Mr.
Campbell abstaining.
VI. CONSENT ITEMS HELD OVER
None.
VII. NEW BUSINESS
A. 1. City and Redevelopment Agency Investment Schedules and Summary
of Cash Reports for May 2004
Mr. Gibson reported the City and RDA investment reports for May 2004
were not available for the meeting since the BONY data download had
failed, and no information had been received. The Bank of New York
("BONY") did not deliver hard copies of the missing trust data to the City
until June 22nd (the day before this meeting). Consequently, staff did
not have sufficient time to prepare the investment reports. If BONY did
not correct its system problems, then the City may have to retain
another trustee in the future.
Mr. Gibson asked if the Committee wished to receive the investment
reports with the previous month's trustee balances, or if they wanted to
wait until the data was updated. Mr. Wood said that it might be best to
wait for the updated information.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
Mr. Jeffrey reported that the City had purchased approximately $90
million of securities over the last 30 days, principally using property
taxes. Mr. Gibson commented that the securities would mature within a
nine-month period, in order to capitalize upon rising short-term interest
rates.
Mr. Wood asked if the property taxes could be invested over time so
that the City could receive a better return. Mr. Gibson responded that
property taxes are received as one lump payment, and are usually
matched with debt service, when invested.
Mr. Coleman added that RDA not only has to pay its debt service, it
also must pay pass-through obligations (e.g., agreements with other
taxing entities to mitigate the financial burden for the project areas). Mr.
Coleman stated that he had asked Mr. Jeffrey to invest a large portion
of the money on a short-term basis since the City was holding it in trust
for the County, and would need to make a payment to the County.
2. Certification of Palm Desert Investment Policy
Mr. Jeffrey reported that the Municipal Treasurer's Association of U.S.
and Canada ("MTA US&C") had recently certified the City's investment
policy. The policy had last been certified in 1996. MTA informed the
City that its investment policy was in the upper 10 percent of those
certified, in terms of thoroughness and quality.
3. Legal Opinion on Legality of CAMP Investment Program
Mr. Jeffrey said that the legality of the California Asset Management
Program ("CAMP") as a local agency investment option had been
questioned at a recent California Municipal Treasurer's Association
conference. CalTrust, a CAMP competitor, had tried to establish a local
agency investment pool, only to find that it was not authorized to do so
under the California Government Code. Consequently, CAMP's
authorization had come under question.
CAMP subsequently sent the City a legal opinion that CAMP's outside
counsel had prepared, citing the relevant statutory authorities for
CAMP's investment program. Bond counsel Bill Strausz reviewed the
opinion, and concurred that CAMP was authorized to offer an
investment pool for local agency operating monies and bond proceeds.
B. State of California Local Agency Investment Fund Balance for the month of
May 2004
The City continues to be maxed out in the LAIF accounts.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
C. California Asset Management Program (CAMP) May 2004 Statements
Mr. Gibson said that staff is monitoring the CAMP accounts.
D. City and Redevelopment Agency Monthly Financial Report for City Council for
May 2004
Mr. Gibson said that the City has received the latest figure from the state
which indicated that the City's current quarter (mid January through mid April)
had a 12% increase in sales tax. The City is well over budget as $13.5 million
was budgeted and his best guess will be that it will be at $14.8 million. The
state will take 25% of sales tax revenue effective July 1.
Mr. Spiegel believes that the City will be at about $16 million. Sears is due to
open and will add substantially to the City's revenue.
Mr. Wood asked if the license and permit fees were increased. Mr. Gibson
said that staff will be going to Council in July to review and take action on the
proposed rate increases.
E. Parkview Professional Office Buildings - Financial Report for May 2004
Mr. Gibson said that staff will be taking a lease agreement with Supervisor Roy
Wilson to City Council. The goal is to have them moved in sometime in
August. The fire marshall currently occupying space will be moving to another
space.
Mr. Wood said that he noticed that the City is accruing on the insurance and
he would like to know when it is paid. Mr. Gibson said that in this case the City
allocates the cost at the year end on June 30 and it would not appear on the
books until the end of the year.
Mr. Wood asked if the insurance was paid for in advance. Mr. Gibson said
that the insurance is paid through the general fund then the costs are allocated
to the other appropriate funds at the beginning of the year.
Mr. Woods said that it was very conservative as the costs are not written off by
the life of the coverage but by anticipating. Mr. Gibson said that the premium is
billed this way by the Joint Powers Insurance Authority. Mr. Wood asked if it
was for future or for the past. Mr. Gibson said that the premium is for the
future.
Mr. Wood asked if the repair, maintenance and landscaping was handled in
the same way. Mr. Gibson said that costs have not been allocated. Costs are
always included in the budget, however, it has been removed for next year.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
Mr. Spiegel said that the revenues derived from the Parkview Office Complex
were to be used at the Civic Center Park. As the City is in the process of
replacing the stage with an expensive structure that resembles a tree, he
asked what funds were available. Mr. Gibson said that $2.4 million has been
budgeted for the tree project, however, $400,000 can be allocated.
F. Palm Desert Golf Course Facilities Corporation Financial Information for May
2004
Mr. Young said that the revenue was up. He said that Desert Willow will have
81,000 in rounds by the end of this fiscal year if the weather holds. He is very
optimistic. Revenues are close to $400,000 over. Their All Day Junior Camp
is doing well. The All Day Junior Camp offers golfing from about 9:00 a.m.
until 11:00 a.m. followed by snacks, a barbeque and swimming. They end
their day watching a movie at their mini movie theater. The cost for the All Day
Camp is $299/week.
Mr. Spiegel asked if the day camp is advertised. Mr. Young said that the camp
is promoted through the website. They have looked into distribution through
the Desert Sands Unified School District, however, they require that all
literature distributed be also in Spanish. Therefore, he has distributed the
information through people he knows to Washington School and Carter
School. It was well received.
Mr. Spiegel asked how many people can participate in the junior camp and
how long the camp lasted. Mr. Young said that at this time they are pushed to
the limit with 19 as he is short on professional staff to assist with the golf
instruction. Usually, the junior camp is held for 4 half day camps in the
summertime from 8:30 a.m. to 12:30 p.m. However, this year the camp was
held for 5 all day camp and 4 half day camps. Next year, they plan to do 6 all
day camps with no half day camps.
Vill. 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.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
B. Bond Issuance by Palm Desert Financing Authority
Mr. Coleman said that staff has been to the market with the refunding. He said
that at the last meeting he reported that a presentation was presented to four
insurers. As this project area was a 1.15% or rather for every $1 debt service
there must be a 1.15% in revenue. There are very few project areas in the
state that issue a 1.15% coverage. Staff was expecting three commitments
and received four. Ambac won the bidding and made a commitment. The
deal was priced June 9. Treasuries and the market had been taking a beating
at that time because one of the mixed signals from the Feds was that Federal
offices stated that they would repeal the measured increases to keep inflation
down.
They priced the bond during a bad market, however, they have generated
$792,000 in new funds for projects. They talked about not doing anything
under the 3% net present value. It was 3.2 of the new and 3.6 of the old
bonds that were obtained. The market has come back a little right now as
everyone is awaiting in anticipation that the Feds will raise rates. Most people
believe that the rate will be raised 25 basis points and some feel it will be
raised even more. No one knows what is going to happen. Tomorrow by 8:00
a.m. they close. A pre-pricing book will be provided to the Committee at a
later date. The Agency's pricing was on top of several deal bonds which were
full faith credit. One deal they did not price on top of was the competitive San
Francisco Redevelopment Agency as SF priced through several deal bonds.
The pre-pricing book has several of the deals that went out at the time and the
PDRDA priced on top. He will have a comparison available at the next
meeting. He went to Citigroup's offices to price and sat with their traders. The
arbitrage was 4.8 in terms of the restrictive yield and it will only go out 21
years. They did an excellent job of pricing. Once they had 213 of the deal sold
and committed to underwrite $8,405,000 of unsold bonds. The actual
structure of the coupon is contained in an after pricing book which will be
provided to the committee. Staff was concerned at the time they went out as
they were a little cheap in terms of some of the maturities. Citigroup explained
that even though they went out and bought a competitive and resold them,
they had $18 million in inventory from those years on hand, which meant they
were too aggressive in their pricing.
Mr. Spiegel asked about the tax free municipal bonds that the City of Palm
Springs is selling with a yield at a rate of 4.78. Mr. Coleman said that in terms
of yield it all depends on what matures. If that is on a 3ro year yield, it is awful.
However, if it is on a 20 year yield, it is better.
Mr. Cavanaugh said that Piper Jaffray who bought the bonds on the open
market and has nothing to do with the initial underwriting. It is a secondary
trade and he usually throws out a number that is enticing to people.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
Mr. Spiegel asked if other cities are informed of what the City of Palm Desert
does as well as other cities. Mr. Coleman said that it gets reported to the
California Debt and Investment Advisory Commission and it is published in the
Bond Buyer which is a national daily. He said that he is not sure it was
published in the Bond Buyer as they had the official statement done on a
Friday and mailed it out on a Monday.
Mr. Spiegel asked if it would be wise to invest in tax free bonds. Mr. Coleman
said that they would receive a better yield on the Palm Springs bond. The
Agency prices aggressively and this will result in a lower yield for some of the
other bonds. Some of the Agency's non-rated bonds will receive a better yield.
Mr. Spiegel asked if the City of Palm Desert is in the position of paying less
interest on the tax refunding than any other cities in the valley. Mr. Ortega
said that it has been the City's experience. Even if AAA insured bonds are
compared one needs to ask how much premium did the other entity pay. A
company can buy any insurance if you are willing to pay a premium. However,
the more premium paid, means that the insurer thought less of the bond than
other competing bonds. For this reason, an official statement is prepared to
show the risks even though you have insurance.
Mr. Veazie said that with higher risks there are higher yields and with lower
risks there are lower yields. Mr. Coleman said that it all depends on when you
enter the market as well.
Mr. Spiegel asked if there were any upcoming refinancing. Mr. Coleman said
that the Agency will have some refinancing opportunities perhaps in August of
2005 at which time staff will revisit Project Area #2 refunding, which was
dropped. This can be a current refunding as opposed to an advanced
refunding. If this is done a portion of the refunding does not need to be placed
in escrow securities. The closer you are to the calling of the bond the less
escrow costs you have to pay. The rest will be new money for 2006/2007
because if the Governor's deal goes. If this goes through, in terms of the
Redevelopment Agency, and there is no ERAF to contend with, the Agency
will have a lot of bonding capacity.
Mr. Gibson said that the list of transient occupancy tax audits was provided as
an informational item only. He said that companies audited are rotated.
Waste Management and Time Warner will also be audited.
X. NEXT MEETING - Wednesday, July 28, 2004 at 10:30 a.m.
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INVESTMENT & FINANCE COMMITTEE
MINUTES June 23, 2004
XI. ADJOURNMENT
There being no further business, the meeting was adjourned by Mr. Gibson at 11:18 a.m.
Respectfully submitted,
Diana Leal, Recording Secretary
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City of Palm Desert
City and Redevelopment Agency Portfolios
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
May 2004
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 29-30 June to review short-term interest rates. The market has
already priced in a 25 basis-point rate hike.
Chairman Greenspan recently made a statement that he continues to anticipate raising short-term interest rates at a
.'measured pace," although this could change if inflation were to surge. Greenspan's intention was to reassure the financial
markets that the FOMC would not be complacent in the face of inflation, although it is currently not viewed as a serious threat.
Chairman Greenspan did cite some areas of inflationary concern, however: a rise in energy prices; indications that wages are
rising faster than productivity; a significant increase in core consumer prices; and a recovery of corporate pricing power.
Greenspan was responding to a recent Labor Department report that showed that the Consumer Price Index had risen
0.6% in May--the biggest increase in three years. This was offset, however, by a meager increase of 0.2% in core inflation,
excluding volatile energy and food prices.
President Bush recently nominated Chairman Greenspan, age 78, to a fifth four-year term as FOMC Chairman, a position that
` he has held Since 1987. Chairman Greenspan is expected to win Senate approval with little opposition.
PaaLS. ii7awm C.C.A1. 7"
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
MAY-04 APR-04 MAR-04 FEB-04 JAN-04 DEC-03
CITY
Month-End Book Value*** $ 125,903 $ 130,340 $ 126,691 $ 124,938 $ 127,837 $ 132,836
Month-End Market Value*** $ 126,048 $ 130,530 $ 127,019 $ 125,243 $ 128,091 $ 133,087
Paper Gain(Loss) $ 145 $ 190 $ 328 $ 305 $ 254 $ 251
Prior Year Book Variance $ (55,318) $ (26,045) $ (28,114) $ (39,878) $ (46,315) $ (3,851)
Interest Earnings $ 159 $ 156 $ 161 $ 143 $ 168 $ 172
Yield-To-Maturity 1.53% 1.54% 1.56% 1.58% 1.58% 1.58%
Weighted Maturity(Days) 120 119 119 ill 100 92
Effective Duration 0.18 0.20 0.22 0.21 0.18 0.16
RDA
Month-End Book Value*** $ 179,643 $ 152,696 $ 163,515 $ 164,571 $ 163,130 $ 141,723
Month-End Market Value*** $ 181,819 $ 154,863 $ 165,671 $ 166,715 $ 165,294 $ 143,881
Paper Gain (Loss) $ 2,176 $ 2,167 $ 2,156 $ 2,144 $ 2,164 $ 2,158
Prior Year Book Variance $ 77,086 $ 49,309 $ 58,734 $ 60,901 $ 58,107 $ 48,936
Interest Earnings $ 161 $ 156 $ 174 $ 154 $ 151 $ 159
Yield-To-Maturity 1.17% 1.22% 1.20% 1.20% 1.24% 1.29%
Weighted Maturity(Days) 81 96 91 93 91 89
Effective Duration 0.02 0.03 0.04 0.06 0.06 0.03
Omits SLGSs.
City of Palm Desert--Portfolio Characteristics
31 May 2004
Dollars in Thousands
._"......._.............._ .
Ageing Interval Market Value
< 1M $ 61,829 General Fund Ageing
<2M 4,522
<3M 2,502 100
<6M 7,311 80 71
< 1YR 4,805 a
<2YR - a so
<3YR 40
<4YR 5,855 a°
<5YR - 20 5 3 8 6
>5YR - p 0
Total: $ 86,824 < 1M <2M <3M <6M <1YR <2YR
Ratings Market Value Credit Quality
Aga Aa
Ana $ , 25 0°/
72
Unrated'" 72,78785
Aa 7,147
A 10,373 Unrated"
A1/P1 5,014 9% 66%
Total: $ 122,990
Sector Market Value Asset Allocation
Money Market Funds $ , LAIF
40
LAIF 40,000 000 35%
RDA Loan 32,785
MTNS 19,985 RDA Loan
28%
U.S.Treasury - Money Market
Federal Agency 2,509 Fu ods
Commercial Paper 5,014 20%
Total: $ 122,990 MTNs
17%
Month City Yield LAW Yield Variance Performance
Jun03 1.58 1.70 -0.12
Jul 1.46 1.65 -0.20 1.8
Aug 1.43 1.63 -0.20
Sep 1.62 1.64 -0.01
Oct 1.61 1.60 0.01
Nov 1.61 1.57 0.03 m
Dec 1.58 1.55 0.03 }
Jan04 1.58 1.53 0.05 j
Feb 1.58 1.44 0.14 1.4
Mar 1.56 1.47 0.09 Jun03 Jul Aug Sep Oct Nov Dec Jan04Feb Mar Apr May
Apr 1.54 1.45 0.09
May 1.53 1.43 0.11 OLAIF Yield OCity Yield
Moody's Credit Ratings
" LAIF, and City Loan to RDA Page 2 of 8
City of Palm Desert
Portfolio Holdings
31 May 2004
Market I Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's
Medium•Term Notes
$ 2,355,000 CHEVRON-TEXACO 6.63 10/1/04 $ 2,397,841 1.13 101.70 $ 2,395,073 Aa2
$ 3,000,000 FORD 7.20 6/15/07 $ 3,116,177 5.75 106.45 $ 3,193,572 A3
$ 2,500,000 FORD 7.20 6/15/07 $ 2,596,814 5.75 106.45 $ 2,661,310 A3
$ 2,500,000 FORD 7.50 6/15/04 $ 2,504,428 2.84 100.21 $ 2,505,240 A3
$ 2,000,000 FORD 6.70 7/16/04 $ 2,008,584 3.17 100.63 $ 2,012,590 A3
$ 2,425,000 GENERAL ELECTRIC 4.25 1/28/05 $ 2,471,575 1.30 101.64 $ 2,464,857 Aaa
$ 2,360,000 NORTHERN TRUST 6.65 11/9104 $ 2,416,343 1.17 102.19 $ 2,411,689 Aa3
$ 1,270,000 PITNEY BOWES 5.95 2/1/05 $ 1,308,784 1.32 102.31 $ 1,299,309 Aa3
$ 1,000,000 WACHOVIA 7.70 2/15/05 $ 1,044,115 1.38 104.09 $ 1,040,880 Aa3
$ 19,410,000 Subtotal $ 19,864,661 2.93 $ 19,984,519
Commercial Paper--Discount
$ 2,510,000 CITIGROUP 1.05 8112/04 $ 2,498,140 1.07 99.79 $ 2,504,656 P-1
$ 2,517,000 GENERAL ELECTRIC 1.06 9115104 $ 2,499,880 1.10 99.68 $ 2,509,070 P-1
$ 5,027,000 Subtotal $ 4,998,020 1.08 $ 5,013,726
Federal Agencies--Discount
$ 2,513,000 FED NATIONAL MTG ASSOC 1.06 7/28104 $ 2,499,670 1.08 99.84 $ 2,508,979 Aaa
$ 2,513,000 Subtotal $ 2,499,670 1.08 $ 2,508,979
LGIP
$ 40,000,000 L.A.I.F. 0.00 6/1/04 $ 40,000,000 1.43 100.00 $ 40,000,000 NR
$ 40,000,000 Subtotal $ 40,000,000 1.43 $ 40,000,000
LGIP
$ 13,288,818 C.A.M.P. 0.00 6/1/04 $ 13,288,818 0.89 100.00 $ 13,288,818 NR
$ 13,288,818 Subtotal $ 13,288,818 0.89 $ 13,288,818
Pooled Funds --AIM
$ 9,408,141 PRIME PORTFOLIO 0.00 6/1/04 $ 9,408,141 0.63 100.00 $ 9,408,141 Aaa
$ 9,408,141 Subtotal $ 9,408,141 0.63 $ 9,408,141
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 5.18 - - $ 32,785,480 1.43 0.00 $ 32,785,480 NR
$ 32,785,480 Subtotal $ 32,785,480 1.43 $ 32,785,480
Total Investments
$ 122,432,439 $ 122,844,790 1.53 $ 122,989,663
NR= Not Rated Page 3 of 8
City of Palm Desert
Portfolio Holdings
31 May 2004
Market Ratings
Par Value Issuer I Coupon I Maturity Cost YTM Price I Value IlYloodYs
Cash
$ 2,031,835 CITY MAIN CHKG 0.00 6/1/04 $ 2,031,835 N/A 100.00 $ 2,031,835 NR
$ 612,926 DESERT WILLOW CHKG 0.00 611104 $ 612,926 N/A 100.00 $ 612,926 NR
$ 22,960 OFFICE COMPLEX TRUST 0.00 6/1/04 $ 22,960 N/A 100.00 $ 22,960 NR
$ 377,136 RECREATIONAL FAC CHKG 0.00 6/1/04 $ 377,136 N/A 100.00 $ 377,136 NR
$ 3,044,856 Subtotal $ 3,044,856 $ 3,044,856
Total Investments and Cash
$ 125,477,295 $ 125,889,646 $ 126,034,519
NR=Not Rated Page 4 of 8
Palm Desert Redevelopment Agency --Portfolio Characteristics
31 May 2004
Dollars in Thousands
Ageing Interval Market Value
< 1 M $ 119,004 Portfolio Ageing w/o SLGSsI
<2M
<3M 7,128 100
<6M 6,518 90
BO
< 1YR - e 70
<2YR - 0 60
p 50
<3YR - r 40
<4YR - a° 30
< 5YR - 20 10 0 5 5 0 0 0 0
>5YR 0
Total: $ 132,650 < 1M <2M <3M <6M <1YR <2YR <3YR <4YR
Quali * Market Value Credit Quality Aaa
Aoa $ 113,358 65%
Unrated** 61,036
Aa
A
A1/P1 5,017 Unrated"
Total: $ 179,411 35%
Sector Market Value Asset Allocation Money Market
U.S.Treasury $ 7,128 Funds
Money Market Funds 70,720 51%
LAW 61,036
Federal Agency 5,510
Commercial Paper 5,017 a
Repurchase Agreements 30,000 IAIF
Corporate Bonds - U.S.Treasury p
Total: $ 179,411 5% 44/o
Month RDAYield LAW Yield Variance Performance
Jun03 1.71 1.70 0.01
Jul 1.56 1.65 -0.09
Aug 1.36 1.63 -0.27
Sep 1.28 1.64 -0.36 1.7
Oct 1.30 1.60 -0.30
Nov 1.29 1.57 -0.28 y 14
Dec 1.29 1.55 -0.25
Jan04 1.24 1.53 -0.29
Feb 1.20 1.44 -0.24 1.1
Mar 1.20 1.47 -0.28 Jun03 Jul Aug Sep Oct Nov Dec Jan04Feb Mar Apr May
Apr 1.22 1.45 -0.23
May 1.17 1.43 -0.26 �LAIF Yield ORDA Yield
Moody's Credit Ratings
LAIF Page 5 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 May 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's
Repurchase Agreements
$ 30,000,000 WELLS FARGO BANK 0.92 6/1/04 $ 30,000,000 0.92 100.00 $ 30,000,000 Aaa
$ 30,000,000 Subtotal $ 30,000,000 0.92 $ 30,000,000
Commercial Paper--Discount
$ 3,021,000 GENERAL ELECTRIC 1.10 9/22/04 $ 2,999,215 1.122 99.65 $ 3,010,477 P-1
$ 2,008,000 TOYOTA 1.01 6123104 $ 1,999,831 1.014 99.94 $ 2,006,704 P-1
$ 5,029,000 Subtotal $ 4,999,047 1.09 $ 5,017,181
U.S.Treasury--Discount
$ 7,143,000 UNITED STATES TREASURY 4.59 8/15104 $ 4,989,671 5.54 99.79 $ 7,128,057 Aaa
$ 7,143,000 Subtotal $ 4,989,671 5.54 $ 7,128,057
Federal Agency-•Discount
$ 2,000,000 FED NATIONAL MTG ASSOC 1.02 6/23/04 $ 1,991,783 1.024 99.94 $ 1,998,800 Aaa
$ 3,523,000 FED NATIONAL MTG ASSOC 1.10 9/3/04 $ 3,499,963 1.121 99.69 $ 3,512,079 Aaa
$ 5,523,000 Subtotal $ 5,491,747 1.10 $ 5,510,879
LGIPs
$ 40,000,000 L.A.I.F. 0.00 6/1/04 $ 40,000,000 1.426 100.00 $ 40,000,000 NR
$ 6,249,493 L.A.I.F. (HOUSING) 0.00 6/1/04 $ 6,249,493 1,426 100.00 $ 6,249,493 NR
$ 5,027,390 L.A.I.F. BOND PROCEEDS 0.00 6/1/04 $ 5,027,390 1.426 100.00 $ 5,027,390 NR
$ 9,758,158 L.A.I.F. BOND PROCEEDS 0.00 6/1/04 $ 9,758,158 1.426 100.00 $ 9,758,158 NR
$ 61,035,041 Subtotal $ 61,035,041 1.43 $ 61,035,041
LGIP
$ 29,529,261 C.A.M.P. 0.90 6/1/04 $ 29,529,261 0.89 100.00 $ 29,529,261 NR
$ 29,529,261 Subtotal $ 29,529,261 0.89 $ 29,529,261
Pooled Funds--AIM
$ 41,190,292 PRIME PORTFOLIO 0.00 6/1/04 $ 41,190,292 0.64 100.00 $ 41,190,292 Aaa
$ 41,190,292 Subtotal $ 41,190,292 0.64 $ 41,190,292
Total Investments
$ 179,449,593 $ 177,235,058 1.17 $ 179,410,710
Cash
$ 2,088,253 HOUSING AUTH CHKG 0.00 6/1/04 $ 2,088,253 N/A 100.00 $ 2,088,253 NR
$ 320,027 HOUSING AUTH TRUST 0.00 6/1/04 $ 320,027 N/A 100.00 $ 320,027 NR
$ 2,408,280 Subtotal $ 2,408,280 $ 2,408,280
NR= Not Rated Page 6 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 May 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's
Total Investments and Cash
$ 181,857,873 $ 179,643,338 $ 181,818,990
NR= Not Rated Page 7 of 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert("City")and the Palm Desert Redevelopment Agency("RDA")are
governed by federal, state, and local law. The City Treasurer's"Statement of Investment Policy"is more restrictive than the
California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the
Statement of Investment Policy annually.
For the month ended 31 May 2004,the City and the RDA investment portfolios were in compliance with all applicable
federal, state,and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority).
Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities
are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances.
Respectfully submitted on 24 June 2004,
;Pau4s 67dWrrs C..C..M r.
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 I r 0.0% 2.8%
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 Agencies 5 Years No Limit 5 Years 30% 2.0% 3.1%
53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% 1 A-1 & P-1 I - -
53601(g) Commercial Paper 270 Days 25% A-1+or P-1M3ODays
25% A-1+or P-1 4.1% 2.8%
53601(h) Negotiable CDs 5 Years 30% 30% AA-or Aaa -
53601(i) Repos 1 Year No Limit 1 20% lAAA&Aaa - 16.9%
53601(i) Reverse Repos 92 Days 20% Not Authorized
536010) Medium-Term Notes 5 Years 30% A 5 Years 30% 1 A 1 16.2% 0.0%
53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) 1 AAA&Aaa 1 7.7% 23.2%
53601(I) Trust Indenture Debt Not Authorized
53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA&Aaa AAA&Aaa
Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) 1 or Advisor 1 10.8% 16.7%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized
Securities I AA(Security)
16429 LAIF L No Limit No Limit 32.6% 34.4%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 73.3% 100.0%
(2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds.
Certified California Municipal Treasurer Page 8 of 8
City of Palm Desert
City and Redevelopment Agency Portfolios
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
June 2004
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)raised the Federal Funds Rate by 25 basis points (b.p.)to 1.25 percent at the
June 30th meeting. The FOMC indicated that it would continue to raise rates at a "measured pace" (25 b.p.), although it would
retain the option of making more dramatic rate hikes if inflation accelerated.
Merrill Lynch is forecasting a 25 b.p. hike at the August 10th FOMC meeting, and then another 25 b.p. hike by year-end. Wells
Fargo is advising its institutional clients to keep portfolio maturities short, and to wait for the Federal Reserve to complete its
tightening cycle. Wells Fargo is also recommending that its clients buy Corporates since many companies currently have
robust earnings and a strong cash position. These factors diminish default risk.
Although consumer spending is slowing, it is expected to accelerate again, due to increasing employment, income, and rising
consumer confidence. Business spending has been robust, rising at a double-digit rate. Inventory-sales ratios are at a historic
low. The economy appears to be settling into a sustainable growth pattern,which should help to control inflation.
While the pace of job creation has not been bad, nearly 90% of the new jobs have been low-wage jobs in the service sector.
. This is not good news in the long run, since the the sustainability of the business cycle is affected by the rate at which
incomes rise.
;Pa"bs C.c.M r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
JUN-04 MAY-04 APR-04 MAR-04 FEB-04 JAN-04
CITY
Month-End Book Value*** $ 142,417 $ 125,903 $ 130,340 $ 126,691 $ 124,938 $ 127,837
Month-End Market Value*** $ 142,542 $ 126,048 $ 130,530 $ 127,019 $ 125,243 $ 128,091
Paper Gain (Loss) $ 125 $ 145 $ 190 $ 328 $ 305 $ 254
Prior Year Book Variance $ (35,770) $ (55,318) $ (26,045) $ (28,114) $ (39,878) $ (46,315)
Interest Earnings $ 174 $ 159 $ 156 $ 161 $ 143 $ 168
Yield-To-Maturity 1.58% 1.53% 1.54% 1.56% 1.58% 1.58%
Weighted Maturity(Days) 133 120 119 119 111 100
Effective Duration 0.23 0.18 0.20 0.22 0.21 0.18
RDA
Month-End Book Value*** $ 184,909 $ 179,643 $ 152,696 $ 163,515 $ 164,571 $ 163,130
Month-End Market Value*** $ 187,083 $ 181,819 $ 154,863 $ 165,671 $ 166,715 $ 165,294
Paper Gain (LOSS) $ 2,174 $ 2,176 $ 2,167 $ 2,156 $ 2,144 $ 2,164
Prior Year Book Variance $ 85,643 $ 77,086 $ 49,309 $ 58,734 $ 60,901 $ 58,107
Interest Earnings $ 183 $ 161 $ 156 $ 174 $ 154 $ 151
Yield-To-Maturity 1.37% 1.17% 1.22% 1.20% 1.20% 1.24%
Weighted Maturity(Days) 128 81 96 91 93 91
Effective Duration 0.15 0.02 0.03 0.04 0.06 0.06
Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
30 June 2004
Dollars in Thousands
Ageing Interval Market Value
< 1 M $ 57,842 General Fund Ageing
<2M 2,505
<3M 2,509 100
<6M 7,806 80
< 1YR 17,301 0 62
<2YR - 0 60
<3YR - °
0° 40
<4YR 5,855 a 18
<5YR - 20 3 3 8
>5YR 0
0
Total: $ 93,818 <1M <2M <3M <6M <1YR <2YR
Rat_ ings* Market Value Credit Quality
Aaa $ 21,294 Aaa Aa
Unrated" 84,084 0%
Aa 7,109 Unrated"
A 10,340 A 73%
P1 11,025 9%
Total: $ 133,852
Sector Market Value Asset Allocation
Money Market Funds $ 20,639 LAIF
RDALAIF 32,785 35%O
RDA Loan 32,785
RDA Loan
MTNs 19,904
29%
U.S.Treasury -
Federal Agency 9,499 Money Market
Funds �"I;,
Commercial Paper 11,025 18%
Total: $ 133,852 MTNs
18%
Month City Yield LAW Yield Variance 1 Performance
JU103 1.46 1.65 -0.20
Aug 1.43 1.63 -0.20 1.8
Sep 1.62 1.64 -0.01
Oct 1.61 1.60 0.01
Nov 1.61 1.57 0.03 1
Dec 1.58 1.55 0.03 �
Jan04 1.58 1.53 0.05 Y
Feb 1.58 1.44 0.14
Mar 1.56 1.47 0.09 1.4 .
Apr 1.54 1.45 0.09 Ju103 Aug Sep Oct Nov Dec Jan04Feb Mar Apr May Jun
May 1.53 1.43 0.11
Jun 1.58 1.47 0.11 0LAIF Yield ❑City Yield
Moody's Credit Ratings
" LAIF,and City Loan to RDA Page 2 of 8
City of Palm Desert
Portfolio Holdings
30 June 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value I Moodys
Medium-Term Notes
$ 2,406,000 ABBOTT LABS 6.80 5/15/05 $ 2,503,549 2.08 103.45 $ 2,489,065 Al
$ 2,355,000 CHEVRON-TEXACO 6.63 10/1/04 $ 2,387,130 1.13 101.18 $ 2,382,707 Aa2
$ 3,000,000 FORD 7.20 6115/07 $ 3,112,991 5.75 106.33 $ 3,190,017 A3
$ 2,500,000 FORD 7.20 6/15/07 $ 2,594,159 5.75 106.33 $ 2,658,347 A3
$ 2,000,000 FORD 6.70 7/16/04 $ 2,002,861 3.17 100.14 $ 2,002,856 A3
$ 2,425,000 GENERAL ELECTRIC 4.25 1128/05 $ 2,465,680 1.30 101.26 $ 2,455,451 Aaa
$ 2,360,000 NORTHERN TRUST 6.65 11/9/04 $ 2,405,645 1.17 101.66 $ 2,399,152 Aa3
$ 1,270,000 PITNEYBOWES 5.95 2/1/05 $ 1,303,936 1.32 101.83 $ 1,293,228 Aa3
$ 1,000,000 WACHOVIA 7.70 2/15/05 $ 1,038,904 1.38 103.38 $ 1,033,826 Aa3
$ 19,316,000 Subtotal $ 19,814,856 2.84 $ 19,904,649
Commercial Paper--Discount
$ 2,510,000 CITIGROUP 1.05 8/12/04 $ 2,498,140 1.07 99.87 $ 2,506,852 P-1
$ 3,025,000 GENERAL ELECTRIC 1.55 12/15/04 $ 2,999,603 1.61 99.28 $ 3,003,119 P-1
$ 3,031,000 GENERAL ELECTRIC 1.64 1/14/05 $ 2,999,932 1.70, 99.10 $ 3,003,660 P-1
$ 2,517,000 GENERAL ELECTRIC 1.06 9115/04 $ 2,499,880 1.10 99.77 $ 2,511,293 P-1
is 11,083,000 Subtotal $ 10,997,555 1.40 $ 11,024,925
Federal Agencies --Discount
$ 2,513,000 FED NATIONAL MTG ASSOC 1.06 7/28/04 $ 2,499,670 1.08 99.91 $ 2,510,738 Aaa
$ 1,015,000 FED NATIONAL MTG ASSOC 1.92 5/2/05 $ 997,021 2.00 98.25 $ 997,238 Aaa
$ 3,035,000 FED NATIONAL MTG ASSOC 1.71 3/3/05 $ 2,995,644 1.78 98.65 $ 2,994,027 Aaa
$ 3,045,000 FED NATIONAL MTG ASSOC 1.79 411/05 $ 2,999,427 1.86 98.43 $ 2,997,193 Aaa
$ 9,608,000 Subtotal $ 9,491,762 1.64 $ 9,499,196
LGIP
$ 40,000,000 L.A.I.F. 0.00 7/1/04 $ 40,000,000 1.47 100.00 $ 40,000,000 NR
$ 40,000,000 Subtotal $ 40,000,000 1.47 $ 40,000,000
LGIP
$ 11,297,994 C.A.M.P. 0.00 7/1/04 $ 11,297,994 0.98 100.00 $ 11,297,994 NR
$ 11,297,994 Subtotal $ 11,297,994 0.98 $ 11,297,994
Pooled Funds--AIM
$ 9,339,716 PRIME PORTFOLIO 0.00 7/1/04 $ 9,339,716 0.69 100.00 $ 9,339,716 Aaa
$ 9,339,716 Subtotal $ 9,339,716 0.69 $ 9,339,716
City Loan to RDA
$ 32,786,480 CITY OF PALM DESERT 0.00 711/04 $ 32,785,480 1.47 100.00 $ 32,785,480 NR
$ 32,786,480 Subtotal $ 32,785,480 1.47 $ 32,785,480
NR= Not Rated Page 3 of 8
City of Palm Desert
Portfolio Holdings
30 June 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moodys
Total Investments
$ 133,430,189 $ 133,727,363 1.58 $ 133,851,960
Cash
$ 7,724,984 CITY MAIN CHKG 0.00 7/1/04 $ 7,724,984 N/A 100.00 $ 7,724,984 NR
$ 512,907 DESERT WILLOW CHKG 0.00 7/1/04 $ 512,907 N/A 100.00 $ 512,907 NR
$ 22,960 OFFICE COMPLEX TRUST 0.00 7/1/04 $ 22,960 N/A 100.00 $ 22,960 NR
$ 404,448 RECREATIONAL FAC CHKG 0.00 7/1/04 $ 404,448 N/A 100.00 $ 404,448 NR
$ 8,665,299 Subtotal $ 8,665,299 $ 8,665,299
Total Investments and Cash
$ 142,095,488 $ 142,392,661 $ 142,517,258
NR= Not Rated Page 4 of 8
Palm Desert Redevelopment Agency --Portfolio Characteristics
30 June 2004
Dollars in Thousands
Aaeino Interval Market Value Portfolio Ageing wlo SLGSs
< 1 M $ 90,781
<2M 7,128
<3M 6,523 100
<6M 2,000 80 77
< 1YR 10,985 0 70
<2YR o 60
0 50
<3YR 1_ 40
<4YR 0 30
<5YR 50 6 6 2 9 0 0 0
>5YR - 0
Total: $ 117,417 <1M <2M <3M <6M <1YR <2YR <3YR <4YR
Quality* Market Value Credit Quality
Aaa $ 83,921
Unrated"" 90,588 Aaa
Aa - 48% Unrated"
52%
A
P1 10,019
Total: $ 184,528
Sector Market Value Asset Allocation
U.S.Treasury $ 30,664 Money Market
71
Money Market Funds 71,313313 ' Funds
LAIF 61,035 44%
Federal Agency 11,497 U.S.Treasury
Commercial Paper 10,019 19%
Corporate Bonds - LAW
Total: $ 184,528 037%
Month RDA Yield LAIF Yield Variance Performance
Ju103 1.56 1.65 -0.09
Aug 1.36 1.63 -0.27
Sep 1.28 1.64 -0.36
Oct 1.30 1.60 -0.30 1.7
Nov 1.29 1.57 -0.28
Dec 1.29 1.55 -0.25 a
Jan04 1.24 1.53 -0.29 > 1.4
Feb 1.20 1.44 -0.24
Mar 1.20 1.47 -0.28 1.1
Apr 1.22 1.45 -0.23 Ju103 Aug Sep Oct Nov Dec Jan04 Feb Mar Apr May Jun
May 1.17 1.43 -0.26
Jun 1.37 1.47 -0.10 ❑LAIF Yield ORDA Yield
* Moody's Credit Ratings
** LAIF Page 5 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
30 June 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moodys
Commercial Paper--Discount
$ 2,002,000 CITIGROUP 1.10 7115104 $ 1,999,431 1.12 99.95 $ 2,001,082 P-1
$ 3,021,000 GENERAL ELECTRIC 1.10 9/22/04 $ 2,999,215 1.14 99.74 $ 3,013,246 P-1
$ 2,009,000 GENERAL ELECTRIC 1.35 10/4/04 $ 1,999,733 1.38 99.64 $ 2,001,768 P-1
$ 3,039,000 GENERAL ELECTRIC 1.73 3/1105 $ 2,999,569 1.80 98.83 $ 3,003,366 P-1
$ 10,071,000 Subtotal $ 9,997,948 1.38 $ 10,019,462
U.S.Treasury--Coupon
$ 23,107,000 UNITED STATES TREASURY 1.63 3/31/05 $ 23,066,518 1.86 99.81 $ 23,063,674 Aaa
$ 23,107,000 $ 23,066,518 1.86 $ 23,063,674
U.S.Treasury--Discount
$ 7,143,00D UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 99.87 $ 7,133,407 Aaa
$ 469,000 UNITED STATES TREASURY 1.26 9/30/04 $ 467,391 1.28 99.66 $ 467,388 Aaa
$ 7,612,000 Subtotal $ 5,457,063 5.18 $ 7,600,795
Federal Agency--Coupon
$ 1,983,000 FED HOME LOAN MORTGAGE 1.88 1115/05 $ 1,984,837 1.70 100.06 $ 1,984,239 Aaa
$ 1,983,000 Subtotal $ 1,984,837 1.70 $ 1,984,239
Federal Agency--Discount
$ 3,523,000 FED NATIONAL MTG ASSOC 0.00 9/3/04 $ 3,499,963 1.14 99.76 $ 3,514,545 Aaa
$ 3,040,000 FED NATIONAL MTG ASSOC 0.00 3/4/05 $ 2,999,509 1.82 98.65 $ 2,998,960 Aaa
$ 3,040,000 FED NATIONAL MTG ASSOC 0.00 3/1/05 $ 3,001,012 1.78 98.66 $ 2,999,264 Aaa
$ 9,603,000 Subtotal $ 9,500,484 1.56 $ 9,512,769
LGIPs
$ 40,000,000 L.A.I.F. 0.00 711/04 $ 40,000,000 1.47 100.00 $ 40,000,000 NR
$ 6,249,493 L.A.I.F. (HOUSING) 0.00 711104 $ 6,249,493 1.47 100.00 $ 6,249,493 NR
$ 5,027,390 L.A.I.F. BOND PROCEEDS 0.00 711/04 $ 5,027,390 1.47 100.00 $ 5,027,390 NR
$ 9,758,158 L.A.I.F. BOND PROCEEDS 0.00 7/1/04 $ 9,758,158 1.47 100.00 $ 9,758,158 NR
$ 61,035,041 Subtotal $ 61,035,041 1.47 $ 61,035,041
LGIP
$ 29,552,996 C.A.M.P. 0.00 7/1/04 $ 29,552,996 0.98 100.00 $ 29,552.996 NR
$ 29,552,996 Subtotal $ 29,552,996 0.98 $ 29,552,996
Pooled Funds--AIM
$ 41,759,261 PRIME PORTFOLIO 0.00 7/1/04 $ 41,759,251 0.69 100.00 $ 41,759,251 Aaa
$ 41,759,251 Subtotal $ 41,759,251 0.69 $ 41,759,251
NR= Not Rated Page 6 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
30 June 2004
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's
Total Investments
$ 184,723,289 $ 182,354,139 1.37 $ 184,528,229
Cash
$ 2,133,681 HOUSING AUTH CHKG 0.00 711/04 $ 2,133,681 0.00 100.00 $ 2,133,681 NR
$ 319,567 HOUSING AUTH TRUST 0.00 7/1/04 $ 319,567 0.00 100.00 $ 319,567 NR
$ 2,453,248 Subtotal $ 2,453,248 $ 2,453,248
Total Investments and Cash
$ 187,176,537 $ 184,807,387 $ 186,981,477
NR= Not Rated Page 7 of 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert("City")and the Palm Desert Redevelopment Agency("RDA")are
governed by federal, state, and local law. The City Treasurer's"Statement of Investment Policy"is more restrictive than the
California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the
Statement of Investment Policy annually.
For the month ended 30 June 2004,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 July 2004,
Pis. C.C.M.r.
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 I T-0.0% 15.6%
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% 1 7.10/6 6.3%
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 8.2% 5.5%
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
536010) Reverse Repos 92 Days 20% Not Authorized
536010) Medium-Term Notes 5 Years 30% A 5 Years 30% A 14.8% 0.0%
53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA&Aaal 7.0% 22.9%
53601(I) Trust Indenture Debt Not Authorized
53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA&Aaa I AAA&Aaa 1 8.5% 16.2%
Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized
Securities AA(Security)
LAIF No Limit No Limit 29.9%
(1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. 75.
(2) Maximum limit for mutual funds and local government investment pools,excluding bond proceeds.
Certified California Municipal Treasurer
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CITY OF PALM DESERT
OFFICE OF THE CITY TREASURER
INTEROFFICE MEMORANDUM
To: Members of the Investment and Finance Committ e
From: Paul S. Gibson, C.C.M.T., City Treasurer
Date: 28 July 2004
Subject: Quarterly Account Statements on Deferred Compensation Plans
Enclosed are quarterly account statements from Nationwide Retirement Solutions
and from 1CMA Retirement Corporation on the 457 Deferred Compensation Plans that
they are administering on behalf of the City of Palm Desert ("City"). They are for the
quarter ending 30 June 2004. 1 am providing these statements to you for your review
and information.
The State Treasurer of California, Philip Angelides, has issued an opinion which states
that local agencies should provide their governing bodies with periodic disclosure
reports on all 457 Plan assets that are held in trust for employees.
Although City employees determine: (1) how many of their cafeteria credits, if any, are
to be applied to a 457 Plan; (2) who the plan administrator shall be; and (3) the
investment option(s) to be selected, 457 Plan assets are technically considered to be
City assets since they are held in the City's name. While this affords 457 Plan assets
favorable tax treatment under the Internal Revenue Code, it also triggers a reporting
requirement for the City.
Attachments: 1-) ICMA 457 Deferred Compensation Report
2) Nationwide Deferred Compensation Program (457) Report
WMEFFRMWORD 2000IMEMORANDATINANCE COMMITTEEW57 PLAN ACCOUNT STATEMENTSAOC
1< P.latlos-swide CITY OF PALM DESERT
Retirement Solutions Deferred Compensation Program (457)
a NatioAM Fwd.]Company
t Statement of Account
PAUL GIBSON ee Page: 1 of 3
FINANCE DIRECTOR Entity: 0516
73510 FRED WARING DR
PALM DESERT CA 92260-2524
Please review your statement carefully. Corrections may not be accepted
more than 30 days after the closing date of the statement.
$2,811,577.06
`attG Coal; ete gals -C (sfie�rM1s ln�"sTt�rtL3,at {u, ';w,l i,,o�; 5x $2,954=8.77
ntxu, Ta �z[" fttt� aralniaiisrl arsfrs 'y,EIt4Tal0at { a,3 ,fiR' � „ ; - $1,061,823.59
i 'atai�Tctafx5c� �Its�TCi �te ( ,u k �� y�" � 4 ; . - $422.00
:��qurt:�'f-aalr:,E~�a(n�,�asS:�T. $919493.88
„�:, idgq�la�,
.., fig.... . -: I:_�„fit.
The amount shown above in Total Charges/Credits To Date is the total amount of charges
or credits since you have joined the plan.
If applicable, 'Total Gain/Loss To Date'includes-asset fees charged
against core accounts and/or asset fees associated with Self Directed Option (SDO).
For information about asset fees, contact your customer service center.
Report Period: April 01, 2004 Thru June 30, 2004
N
O
a y
03/31/2004 Deferrals/ wltW6W4'ls/ charges/ 66/30/2004
Fund Name value Transfers Exchanges Transfers Credits Gain/Lots Value
e�
� Am Cent value It 19.384.16 695.10 0.00 -287.20 0100 563.09 20,335.15
~- Bunn Cap Mgmt Sml Co Fd It 12.726.87 348.00 0.00 - 0.00 0.00 -526.28 12,547.39
Dray Appreclatlon Fnd lne 8,854.89 342.30 0.00 -565.95 0.00 108.98 8.738.20
Drey Prem Mdcapstk Cis A 3.152.39 125.00 0.00 0.00 0:00 -8.52 3,268.87
Drey S&P 500 Index Fund 45,891.56 1,142.40 0.00 -2,705.63 0:00 655.00 45,083.33
Fid Asset Manager 38.158.29 553.08 0.00 - 10.626.42 0.00 -312.02 21,773.53
v Rd Contrafund 100,792.15 1,618.14 0.00 -695.75 0.00 2.169.14 103,884.28
Fid Equity interne Fnd 62,604.81 1,016.64 0.00 -8,176.22 0.00 414.05 55,759.28
Fed US Wise Fnd 2-5 Ys Is 9,213.50 525.00 0.00 0.00 0.00 -245.68 9,492.82
v�
CUSTOMER SERVICE (877)677-3678
(ESPANOL) (800)649-9494
TDD: (800)848-0833
Web Site: WWW.NRSFORU.COM
If you have any questions or concerns about your account, please call the
Customer Service number, or write to the following address:
NATIONWIDE RETIREMENT SOLUTIONS
PO BOX 182797
COLUMBUS OH 43218-2797
92987995P00000uss
quarterly Financial Report for
ICMA RETIREMENT CORPORATIONYour 457 Deferred Compensation Plan
04/01/2004 through 06/30/2004 Page I of 7
*MWk~QMiW 0 4:j 71TVIT11 21
Save time and energy by using our new On-Line PAUL S GIBSON 001-0367
withdrawal feature. Once Implemented, participants CITY OF PALM DESERT
can request withdrawals when they separate from 73 510 FRED WARING DRIVE
service an Account Access. Call Employer Services at PALM DESERT CA 92260-2564
800-3216-7272 to request this new service.
--plarL sum I"
Ending Fund Balance 3,685,021.48 Plan No 302129
Contributory 3,493,659.44
Rollover 191,362.04 Total Contributions this Period $73,574.30
Pro-Tax 191,362.04 Contributory $73,574.30
Total Plan Assets $3,685,021.48
p ............... ...... ...................
,
................. ............
Beginning Balance $3j53853t73zf #1616t03428'.} $250,86314 $96,996.63 $62,990.00
8,906.97 3.981.88 3,515.87
0.00 0.60 11.19
0.00 0.00 0.00
�o
Adjustments 0.00 0,00 0.00
Fund-to-Fund Transfers 0.00 0.00 0.00
Earnings 1,031.01 260.71 67.45
Ending Balance $260,801.12 $101,239.22 $66,584.51
Percentage Invested 7% 3% 20/6
a Ca ......... .
v .
MW
...WO
Beginning Balance $22,339.29 $90,667.35 $1,365,574.98 $28,210.17 $37,672.62
Contributions 1,773.74 5,261.56 20,112.09 4,312.00 728.35
Roll-ins 0.00 0.00 712.62 0.00 0.00
Distributions 0.00 0.00 12,600.21- 0.00 0.00
Adjustments 0.00 0.00 0.00 0.00 0.00
Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00
Earnings 88.22- 160.32 11,367.39 0-01 1,01B.57-
Ending Balance $24,024.811 $96,089.23 $1,385,166.87 $32,522.18 $37,382.40
Percentage Invested 1% 3% 38% 1% 1%
Please review your statement carefully. If you believe there is an error due to a transaction not previously confirmed,please notify ZCMA.Rc at
800-326-7272 fen Espanol 800-669-8216)within 90 days of quarter end. Failure to do so may prevent ICBM-RC from adjusting your account.
777 North Capitol Street, NE-Washington, DC-20002-4240-www.icmarc.org
ICMA-RC Services, LLC.is a broker/dealer affiliate of the ICMA Retirement Corporation,member NASD and SIPC.
STATE OF CALIFORNIA PHILIP ANGELI DES, Treasurer
OFFICE OF THE TREASURER
SACRAMENTO -
Local Agency Investment Fund
PO Box 942809
Sacramento, CA 94209-0001;
(916) 653-3001
June, 2004 Statement
CITY OF PALM DESERT
Account Number : 98-33-621
Attn: CITY TREASURER
735I0 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 _ _ _ - - �•••••
Local Agency Investment Fund
PO Box 942809
Sacramento, CA 94209-0001 L`'J '�` i :)7
(916) 653-3001
June, 2004 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 ---i
1. ti
Local Agency Investment Fund i .. : -
PO Box 942809
Sacramento, CA 94209-0001 1pivi ,illL I ii i ri 3: 57
(916) 653-3001
June, 2004 Statement
PALM DESERT HOUSING AUTHORITY Account Number : 25-33-003
Ann: DEPUTY CITY TREASURER
73-510 FRED WARING DRIVE
PALM DESERT CA 99260-2579
Account Summary
Total Deposit : 0.00 Beginning Balance : 6,249,492.52
Total Withdrawal : 0.00 Ending Balance : 6,249,492.52
Page : 1 of 1
CALIFORNIA ASSET STATEMENT
MANAGEMENT PROGRAM '
JOINT POWERS AUTHORITY
SO CALIFORMA STREPT 23RO FLOOR
SAN FRANCISCO CALIFORNIA 94111 FOR ACCOUNT
INFORMATION: 800-729-7665
STATEMENT DATE: 6130/2004
MR.THOMAS JEFFREY ACCOUNT NUMBER: 563-00
FINANCE DEPARTMENT
CITY OF PALM DESERT FUND NAME: Cash Reserve Portfolio
OPERATING FUND
PALM DESERT, CA 92260-2578
Page 1 of 1
Acco n Summary as of 6/30/2�
Statement Income Dividends Capital Gains Total Shares Account
Date Paid This Year Paid This Year Owned Value
6/30PZ004 $63,936.10 $0.00 11,297,993.880 $11,297,993.88
Tr sa lion Su a fot 6J1l20 6/30/2`,
Beginning Balance Purchases Reinvestments Redemptions Ending Balance
$13,288,818.19 $0.00 $9,175.69 $2,000,000.00 $11,297,993.88
AD S L OUNT HARE S THISOPAL ES
SACTIO PRICE TRANSgCTION SHARES OWN D
06/01/04 Beginning Balance 13,288,818.190
06/02/04 6/2/2004 Redemption-Wire Red. $1,000,000.00- $1.00 1,000,000.000- 12,288,818.190
06/04/04 6/4/2004 Redemption-Wire Red. $1,000,000.00- $1.00 1,000,000.000- 11,288,818.190
06/30/04 1 7/1/2004 Accrual Income Div Reinvestment-DIV $9,175.69 $1,00 9,175,690 11,297,993.880
Message Line: The Monthly Distribution Yield is 0.98%.
The Monthly Effective Annual Yield is 0.98%.
'CA I D , 1
CALIFORNIA ASSET STATEMENT
MANAGEMENT PROGRAM -. ..
IOINT YOWERS AU'fH ORITY '
50 C:ALIFORMA S'ritrr-r 231ip FLOOR
SAN FRANCISCO CAUIFORNIA 941 I 1 FOR ACCOUNT
INFORMATION: 800-729-7665
STATEMENT DATE: 6/30/2004
MR.THOMAS JEFFREY ACCOUNT NUMBER: 553-02
FINANCE DEPARTMENT
PALM DESERT REDVLPMT AGENCY FUND NAME: Cash Reserve Portfolio
GENERALFUND
73-510 FRED WARING DRIVE
PALM DESERT,CA 92260-2578
Page 1 of 1
`Account Summa a of 6%30/2004 - . ,.
Statement Income Dividends Capital Gains Total Shares Account
Date Paid This Year Paid This Year Owned Value
6/30/2004 $135,242.95 $0.00 29,552,996.460 $29,552,996.46
rlfta cti Sum n:ffly,for 6/1/20 630/20$
Beginning Balance Purchases Reinvestments Redemptions Ending Balance
$29,529,260.81 $0.00 $23,735.65 $0.00 $29,552,996.46
'fRAU 77/1/2004
E SHARES THIS TOTALATE7Accrualincome
TR SA O7DIV
O SACTIO C 06/01/04nce 29,529,260.810
06/30/04 Div Reinvest $23,735.65 $1.00 23,735.650 29,552,996.460
Message Line: The Monthly Distribution Yield is 0.98%.
The Monthly Effective Annual Yield is 0 98%.
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City of Palm Desert
Parkview Office Complex
Financial Statement
for Fiscal Year 2003-2004
June-04 June-04 # % YTD YTD # %
Budget Actual Variance Variance Budget Actual Variance Variance
i
? E
Revenues
Rental $ 68,500 $ 71,535 $ 3,035 104.43% $ 822,000 $ 855,452 $ 33,452 104.07%
Dividends/Interest $ 4,375 $ - $ (4,375) 0.00% $ 52,500 $ 216 $ (52,284) 0.41%
Total Revenues $ 72,875 $ 71,535 $ (1,340) 98.16%1 i $ 874,500 $ 855,667 $ (18,833) 97.85%
Expenses
Professional-Accounting&Auditing $ 8,000 $ 8,000 $ 100.00% $ 96,000 $ 96 000 $ 100.00%
g - -
Professional-Consultants $ 6,000 $ 5,598 $ 402 93.30% $ 72,000 $ 67,400 $ 4,6W 93,61%
Tenant Improvements $ 3,000 $ - $ 3,000 0.00% ` $ 36,000 $ 7,120 $ 28,880 19.78%
Repairs&Maintenance Building $ 8,000 $ 13,232 $ (5,232) 165.39% $ 96,000 $ 130,434 $ (34,434) 135.87%
Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% - $ 27,600 $ - $ 27,600 0.00%
Utilities-Water $ 150 $ 211 $ (61) 140.71% $ 1,800 $ 1,394 $ 406 77.46%
Utilities-Gas/Electric $ 8,000 $ 10,887 $ (2,887) 136.09%IIIIII , $ 96,000 $ 81,197 $ 14,803 84.58%
Utilities-Waste Disposal $ 700 $ - $ 700 0.001 $ 8,400 $ 6,011 $ 2,389 71.56%
Telephone $ 200 $ 326 $ (126) 163.11% $ 2,400 $ 2,356 $ 44 98.16%
Insurance $ 521 $ - $ 521 0.00% '• ;; $ 6,250 $ - $ 6,250 0,00%
d i)(
Total Expenses $ 36,871 $ 38,254 $ (1,383) 103.750l0j. . 1 $ 442,450 $ 391,912 $ 50,538 88.58%
Operating Inyome, $;- 34:OD4-: $ •33,281 $ (2,73,3}p +, �249? g,
Equipment Replacement Reserve $ 14,000 $ 11306 $ 694 95.04% $ 168,000 $ 159,672 $ 8,328 95.04%
Net Income = $ 22,004. $ 1%,975 $ (2i029} „- -.90.78p/o -.$264,DSD:-$ -304,084--"$ 40,034 115.16%n,
Please note that this report may not include all expenditures or revenues that may have accrued as of June 30,2004.As a result the ending balances may
change,therefore,a revised report for June 30,2004 may be issued once the audit of the City's financial statements is completed.
2004 Investment Reportlnv Report 2004
City of Palm Desert
Parkview Office Complex
Vacancy Rate Schedule by Suite
June 2004
73-710 Fred Waring Drive-Two (2) Story Building
100 Hanover 1,915
100A WilliamBonneheim 645
102 Fire Marshal (Moved from Suite 222) 1,360
103 National Multiple Sclerosis 488
104 Arthritis Foundation 960
106 Coachella Valley Economic Partnership 929
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 11750
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
211 State of California Department of Food &Agriculture 937
217 Joe B. McMillan,. Esq. 775
220 EPA-Moved From Suite 101A 1,607
222 County of Riverside-Roy Wilson (Lease Begins September 1,2004) 2,981
2004 Investment ReportVacancy Report
City of Palm Desert
Parkview Office Complex
Vacancy Rate Schedule by Suite
June 2004
Total square footage(2 story Building) 31,562
Vacancy Rate-0.00% 0.00%
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--0.00% 2.11%
Occupancy Rate-51,191/51,191 100.00%
2004 Investment ReportVacancy Report 2
f
F. Palm Desert Golf Course Facilities Corporation Financial
Information for June 2004
The above mentioned item will be distributed at the meeting.
v
CITY OF PALM DESERT
REIMBURSEMENT POLICY FOR STAFF COSTS
ASSOCIATED WITH LAND-BASED FINANCING DISTRICTS
INTRODUCTION
The City of Palm Desert will consider developer or property owner initiated applications
requesting the formation of community facilities or assessment districts and the issuance
of bonds to finance eligible public facilities. The City Council has expressed a desire that
staff ensures that the time that is spent by City personnel in connection with the formation
of any financing district is recovered on a revenue neutral basis.
OBJECTIVE
The objective of this policy is to set parameters to reimburse the City for personnel costs
associated with the formation of assessment districts, as well as the issuance of bonds.
In addition, the initial fee will cover the City's first year administration costs until such costs
can be recovered through the propertytax rolls.The policy will also address reimbursement
for any refunding of outstanding bond issues as well. In addition, the policy will address
reimbursement for any personnel costs associated with the management of the
construction projects financed by the districts.
CITY ADMINISTRATIVE REIMBURSEMENT
New Bond Issues:
The City shall receive an administrative fee to reimburse the City's cost in both the
formation of the financing districts and the issuance of the bonds. The City's
Administration Fee for a new bond issue is based on the following scale: three-quarters
(.75) of one percent up to the first$5 million of the par amount of the bond issue; one-half
(50) of one percent of the paramount of the bond issue over $5 million up to $10 million;
and one-quarter(.25) of one percent of the par amount of the bond issue over$10 million.
The City's Administration fee will be considered a component of the cost of issuance and
will be paid from bond proceeds.
Refinanced Bond Issues:
The City shall be reimbursed for refinanced bond issues based on a time and materials
basis for City personnel time spent on the issuance of the refunded bonds. Staff will
calculate an estimate and refine the estimate at the time of the pricing of the bonds. These
costs will be disclosed to any developer prior to the agreement by the City to refinance the
outstanding bonds. If the assessments are all residential, then the disclosure shall be
GARDAVennis Coleman\DATA\WP\REPORTSVe,mursemeni for Staff Costs!a Plnancinga,w d 1
made to the City Council in the staff report to the City Council for adoption.
Construction Management for the Assessment Districts:
The City shall charge any assessment district, including districts formed to place utilities
underground,for any personnel costs for managing the construction projects of the district.
Staff will calculate an estimate and refine the estimate prior to the pricing of the bonds.
Waivers and Exceptions:
The City Council shall have the discretion to waive the administrative fees for the issuance
of bonds orthe personnel costs for managing the construction projects for the assessment
districts.
Modifications:
The City Council has the right to modify and/or repeal this policy at their discretion. This
policy shall be reviewed by staff periodically to ensure that it is consistent with state and
federal laws.
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