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HomeMy WebLinkAboutAudit, Invstmnt & Finance Cmte - 06/23 & 07/28/09 .---�--. MINUTES f f , REGULAR MEETING OF THE PALM DESERT \ � AUDIT, INVESTMENT, AND FINANCE COMMITTEE 1 �,.J u � Tuesday, June 23, 2009 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:00 a.m. II. ROLL CALL Present: Absent: Paul Gibson, Finance Director Thomas Jeffrey, Deputy City Treasurer Luis Espinoza, Asst. Finance Director Robert A. Spiegel, Mayor Cindy Finerty, Mayor Pro-Tempore John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment CITY COUNC[LACTION David Erwin, City Attomey APYROVF,D DF.NIEn Stephanie Loog, Community Member RF.CF.IVI;D : �� �- OTF1�:R James Walker;Community Member Everett Wood, Community Member � MEETING DATE - � a-C Also Present: AYES: �n r i e � e Anthony Hernandez, Senior Financial Analyst NOES: J�lt';n� Richard Mogensen, Desert Willow A13SENT: N�'h�- Niamh Ortega, Recording Secretary ABS'�A[N: � � Veronica Tapia, RDA Accountant VF.RIFIFD I3Y: �" Original on File with City Clerk s Of�cc III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF MAY 26, 2009 MOTION was made by Member Wohlmuth and seconded by Member Wood to adopt and approve in their entirety the minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on April 28, 2009. Motion passed with Member Spiegel abstaining. V. NEW BUSINESS G:\Finance\Niamh Ortega\Investment Committee\2009\Minutes\Minutes 062309.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 23. 2009 A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR MAY 2009 Member Gibson reported that rates would begin to increase at the beginning of next year. RDA book values have increased because funds were moved from Wells Fargo to LAIF, earning a higher rate. Staff transferred funds to take advantage of yields. There was extensive discussion surrounding the risk-adjusted energy loan pricing. Ms. Loog clarified that in the third paragraph, those customers that are a higher risk should have a higher rate than the 7 percent rate that was discussed. Ms. Loog suggested that loans should start at a premium rate, and then be discounted for customers who were less of a risk to the City. Mr. Walker indicated that loans should be restructured every three to five years rather than a fixed rate for twenty years, and Ms. Loog agreed that this was a good idea. Member McCarthy cautioned that while it was in the City's interest to protect itself, staff should be conscious of how much administrative complexity is involved with the program. Mr. Gibson indicated that he would bring back a legal opinion on the program to the September meeting. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR MAY 2009 The report was received and filed. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR MAY 2009 The report was received and filed. D. CITY FINANCIAL REPORTS FOR AUGUST AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR MAY 2009 Chairman Gibson reported that TOT is down approximately $1.2 million primarily due to a lack of convention business. Final numbers for year-end will be available in August. Ms. Tapia reported that RDA revenues were $54.713 million. The second portion of tax increment was received, resulting in higher revenue totals than average. Expenditures $30.7 million, the bulk of which were transfers to pass-trhough agencies from the tax increment. This year's tax increment is ahead of last year. The State, however, plans to take funds from the City in an amount of $5-8 million per year for the next three years. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR APRIL 2009 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 23. 2009 Staff is currently negotiating with the State to renew the Water Resources Board lease for an additional eight years. Mr. Gibson pointed out that part of the Energy bonds are lease revenue bonds, and the Parkview building is the asset on the bonds. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR APRIL 2009 The month of May saw the downward trend continue for Desert Willow, with revenues down in the amount of $282,000. The month was down almost 50% in outings, and golf shop revenue was down 30%. Food and beverage was down $112,000 and cost of goods sold was down $37,000. Food and beverage costs were also above budget. Overall the month of May was $189,000 under budget, and June is expected to be the same. The Mountain View course is expected to be complete by November 2, ahead of the opening of the new timeshares. G. PALM DESERT GOLF COURSE FACI�ITIES CORPORATION FINANCIAL REPORTS FOR JUNE 2009 The proposed budget for Desert Willow was reviewed by the Committee. It was agreed by the Committee and Desert Willow representatives that the budget is optimistic, but that the opening of the timeshares should help increase revenue. Shoulder rates have also been introduced to take advantage of shoulder season play at a higher rate than the traditional off-season rates. This addition should increase revenue by approximately $30,000 to $40,000. MOTION to recommend that the proposed budget be approved by the City Council made by Member Finerty, seconded by Member Wohlmuth, and unanimously approved. H. IDENTITY THEFT PROTECTION PROGRAM Mr. Gibson highlighted that part of the program indicates that stricter practices will be in place at the City in order to secure the identities of participants in various programs such as low-income and self-help housing, home improvement programs and others where an individual's identifying information is recorded by the City. MOTION to recommend that the City Council adopt the Identity Theft Protection Program as it pertains to the City of Palm Desert and its entities made by Member Spiegel, seconded by member Finerty, and unanimously approved. VI. CONTINUED BUSINESS None. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JUNE 23. 2009 VII. OLD BUSINESS A. PUBLIC AND PRIVATE PARTNERSHIP BACKGROUND CHECKS No report. B. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Staff is moving ahead with the bond issuance through Welis Fargo, and if Council approves the issuance at its upcoming meeting, funds will be available on July 23, 2009. VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:55 a.m. to the next regular meeting of July 28, 2009. � Niamh Ortega, Re rding Secretary 4