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Home My WebLink AboutMinutes - Audit Investment and Finance Committee 03/28/06IV. MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, March 28, 2006 CALL TO ORDER Mr. Gibson called to order a regular meeting of the Palm Desert Audit, Investment, and Finance Committee at ten o'clock in the morning. ROLL CALL Present: Dick Kelly, Mayor Pro-Tempore Bob Spiegel, Councilmember Paul Gibson, Finance Director/Treasurer Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Justin McCarthy, ACM/Redevelopment Russ Campbell, Community Member Dixie Proulx, Community Member Bill Veazie, Community Member Everett Wood, Community Member Also Present: Arla Scott, Financial Analyst Veronica Tapia, Redevelopment Accountant Rodney Young, Desert Willow Golf Resort Niamh Ortega, Recording Secretary ORAL COMMUNICATIONS None. APPROVAL OF MINUTES Absent: Jim Ferguson, Mayor Carlos Ortega, City Manager A. MINUTES OF THE REGULAR MEETING OF FEBRUARY 28, 2006 MOTION was made by Mr. Wood and seconded by Mr. Campbell to adopt and approve in their entirety the minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on February 28, 2006. Motion passed. AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MARCH 28. 2006 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JANUARY AND FEBRUARY 2006. Mr. Jeffrey highlighted the following points of the City and RDA investment reports for January and February 2006, respectively: The book value of the City Portfolio for January 2006 was approximately $147.7 million. Interest earnings were approximately $454,000. Yield -to -maturity was approximately 4.06%. The book value of the RDA Portfolio for January 2006 was approximately $151.8 million. Interest earnings were approximately $435,000. Yield -to -maturity was approximately 3.99%. The book value of the City Portfolio for February 2006 was approximately $147.0 million. Interest earnings were approximately $476,000. Yield -to -maturity was approximately 4.31 %. The book value of the RDA Portfolio for February 2006 was approximately $153.7 million. Interest earnings were approximately $494,000. Yield -to -maturity was approximately 4.26%. Mr. Jeffrey explained that the City had shifted to a longer maturity due to the economic forecast and staff's perceptions of the market. It is anticipated that there are a few interest rate hikes in the near future, then following a six-month period, it is expected that rates will be reduced. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR FEBRUARY 2006 The reports were reviewed and placed on file. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR FEBRUARY 2006 The reports were reviewed and placed on file. D. CITY AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR FEBRUARY 2006 Mr. Gibson presented the City's report. He pointed out that the City's general fund is approximately $4 million above last year. Expenditures are as expected. Ms. Tapia presented the RDA report. The primary expenditures were capital projects and debt service payments for several areas, including Falcon Crest in Project Area No. 3. 2 G:1Financeftamh Ortegaffpdocsllnvestment Committee 120061MinutesWinutes 032806.doc AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MARCH 28. 2006 E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR FEBRUARY 2006 The report was reviewed and placed on file. Mr. Gibson reported that the City is budgeting for the air conditioning units at the office complex in order to comply with energy requirements for offices leased by various State departments. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR FEBRUARY 2006 Mr. Young reported that February, like previous months, was a good month for Desert Willow. Golf rounds have increased 661 rounds over last year. The average rate per round increased $7.21 to $88.94. Food and beverage revenue also increased over prior year. A revised posted rate will be proposed, raising the rate from $165 to $175 for the following year. Wedding planning is being considered as a possible service offered at Desert Willow in the future. G. 2005 SINGLE AUDIT REPORT FOR THE CITY OF PALM DESERT The report was discussed. MOTION to recommend that the City Council accept and approve the 2005 Single Audit Report for the City of Palm Desert made by Member Campbell, seconded by Member Wood, unanimously approved. VI. CONTINUED BUSINESS A. 2005 PALM DESERT RECREATIONAL FACILITIES AUDIT The report was reviewed. MOTION to recommend that the City Council accept and approve the 2005 Palm Desert Recreational Facilities Audit made by Member Campbell, seconded by Member Erwin, unanimously approved. VII. OLD BUSINESS A. PUBLIC AND PRIVATE PARTNERSHIP BACKGROUND CHECKS No report. B. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE No report. 3 G:IFinanceWiamh Ortega\WpdocslInvestment CommittW2006VinuteslMinutes 032806.doc AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MARCH 28. 2006 C. REIMBURSEMENT POLICY FOR STAFF COSTS ASSOCIATED WITH LAND - BASED FINANCING DISTRICTS Ms. Tapia provided an overview of the staff report included in the agenda packet. The Committee had previously requested staff to have the policy reviewed by the City Attorney and Agency Counsel. The appropriate revisions have been made to the policy and included in the current draft. Mr. Veazie asked for clarification on some of the wording within the policy, and Mr. Erwin provided additional insight to legal phrasing within the document. MOTION to recommend that City Council adopt the Reimbursement Policy for Staff Costs associated with Land -based Financing Districts made by Member Campbell, seconded by Member Wood, unanimously approved. VII1. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded, and carried, was adjourned at 10:30 a.m. Niamh Ortega, Record'Recordirr& Secretary 112 G:IFinanceWlamh OrtegakftdocsVnvestment Committee120061MinuteslMinutes 032806.doc