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HomeMy WebLinkAboutMinutes - Investment & Finance - 11/24/2004CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY��t`� DATE: JANUARY 26, 2005 SUBJECT: APPROVED MINUTES OF THE NOVEMBER 24, 2004 INVESTMENT & FINANCE COMMITTEE MEETING Please find attached the Minutes of the Investment & Finance Committee meeting which took place on Wednesday, November 24, 2004, and were approved by the Committee at the meeting of January 26, 2005. Please include on the upcoming agenda for review and acceptance by City Council. Please feel free to contact me at Ext. 382 if you have any questions. Thank you. nmo Attachment (as noted) G:\Finance\Niamh Ortega\Wpdocs1Investment Committee\Memos\rklassen012605.wpd I. CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE Minutes November 24, 2004, 11:30 a.m. Desert Willow Golf Resort Conference Room CALL TO ORDER A regular meeting was called to order by Acting Chairman Jeffrey on Wednesday, November 24, 2004 at 11:31 a.m. II. ROLL CALL Present: Absent: Thomas Jeffrey, Deputy Treasurer Bob Spiegel, Mayor Buford Crites, Mayor Pro-Tempore Carlos Ortega, City Manager David Erwin, City Attorney Russ Campbell Bill. Veazie Everett Wood Thomas Wormley Also Present: Dennis Coleman, RDA/Housing Finance Manager Niamh Ortega, Recording Secretary Rodney Young, General Manager, Desert Willow Paul Cavanaugh, Guest III. ORAL COMMUNICATIONS Mr. Jeffrey indicated that he would act in the capacity of Chair in the absence of Mr. Gibson. He also congratulated Mr. Veazie on his recent birthday. IV. COMMITTEE MEMBER REPORTS None. G:\Finance\Niamh ortegaMpdocsllnvestment Committee120041Minutes\Minutes 112404.doc INVESTMENT & FINANCE COMMITTEE MINUTES Page 2 of 4 November 24, 2004 V. CONSENT CALENDAR A. Approval of Minutes MOTION was made by Councilman Crites and seconded by Mr. Campbell to approve the Minutes of the September 22, 2004 meeting as submitted. Motion passed with Mr. Jeffrey abstaining. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for October 2004 Mr. Gibson reported that the City had received the October 2004 trust statements from the Bank of New York. For the month ended October 31, 2004, Mr. Gibson reported that the book value of the City Portfolio was approximately $130.6 million. Interest earnings were approximately $200,000, and portfolio yield -to -maturity was approximately 1.96%. For the month ended October 31, 2004, Mr. Gibson reported that the book value of the RDA Portfolio was approximately $149.1 million. Interest earnings were approximately $216,000, and portfolio yield -to -maturity was approximately 1.73%. Mayor Spiegel questioned the status of interest rates. Chairman Jeffrey responded that should interest rates increase, they should be about 3% by the end of 2005. Sustainable growth is approximately 3 — 5 %. Beginning January 2005, the City will begin investing for longer terms. MOTION that the reports be submitted to the City Council with a recommendation for approval made by Member Veazie, seconded by Member Campbell, unanimously carried. B. State of California Local Agency Investment Fund Balance for the month of October 2004 The report was received and placed on file. INVESTMENT & FINANCE COMMITTEE MINUTES Page 3 of 4 November 24, 2004 C. California Asset Management Program (CAMP) October 2004 Statements The report was received and placed on file. D. City and Redevelopment Agency Monthly Financial Report for City Council for October 2004 The YTD versus actual budget is ahead of target. Approximately $102,000 was added to overall revenue when a business license fee error was corrected. Payments to Riverside County Sheriff's Department was discussed, as the billing period seems to be irregular, resulting in two periods being billed in one month at times. Mr. Coleman presented a report on behalf of the Redevelopment Agency and communicated that a written report would be issued to the Investment & Finance Committee each month by the Redevelopment Agency. He explained that the cash flow for the Redevelopment Agency is different from the City, with funding not being received on a regular basis, but rather primarily in January and May each year. Supplemental tax increment is periodically received, although this is not normally projected. Mayor Spiegel asked if money was available to assist the Cal State University's third building. Mr. Ortega responded that the Council would need to move funding from other projects in order to make funds available for the university. E. Parkview Professional Office Buildings - Financial Report for October 2004 Mr. Jeffrey reported that both buildings are 100% occupied, with no upcoming vacancies for the next eighteen months. F. Palm Desert Golf Course Facilities Corporation Financial Information for October 2004 October's revenue was down approximately $26,000, with almost $15,000 lost on two days of rain. November should perform at approximately $5,000 over budget. Payroll is $25,000 over the budgeted amount, and utilities are over budget also. For the first four months, revenues are approximately $199,000 better than the prior year. Likewise, the net operating income is $270,000 better than the prior year. Overall, Mr. Young reported that he is happy with the overall figures. Page 4 of 4 INVESTMENT & FINANCE COMMITTEE MINUTES November 24, 2004 G. 2004 Certification of Brokers Mr. Jeffrey referred to the memorandum requesting the committee to re- authorize Wells Fargo Bank, Citigroup, Morgan Stanley and Merrill Lynch to do business with the City as investment brokers for another year based upon the fact that they have submitted the required annual certification. MOTION to re -authorize Wells Fargo Bank, Citigroup, Morgan Stanley and Merrill Lynch to do business with the City for another year as investment brokers based upon their compliance with the City's re- certification requirements made by Member Veazie, seconded by Member Campbell, unanimously carried. 3Q2004 Deferred Compensation Statements Quarterly reports have been received from ICMA and Nationwide on the current compensation plans. Employees determine how much should be invested in these plans, and the report is being presented as a formality and will be placed on file. VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS None. X. NEXT MEETING The next meeting will take place on Wednesday, January 27, 2005, at 10:30 a.m. in the North Wing Conference Room. XI. ADJOURNMENT There being no further business, Mr. Jeffrey adjourned the meeting at 12:18 p.m. Respectfully submitted, Niamh Ortega, Recording Secretary