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Home My WebLink AboutMinutes Audit Investment and Fiance Committee 10/27/09 � .�„ .�. MINUTES � � REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, October 27, 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 Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Robert A. Spiegel, Mayor �1�'Y�"��I��Ae'r��F'°� � Cindy Finerty, Mayor Pro-Tempore �P�'ROV[�;[) - ._ �� '�";�� __. ___ -- John Wohlmuth, City Manager IZI;,Cf:IVED £ ��P r� �s: '. __.._. _..._ _._. .__ Justin McCarthy, ACM/Redevelopment _ �________�.__ --____. David Erwin, City Attorney 1l��F:ETt "G UATE �-�y�.��l��_____�..___._______ Stephanie Loog, Community Member AYES: �C, G1�� ,�- f'.f�ir�� James Walker, Community Member NOF:S: .1�L�� ✓ .__ �-- Everett Wood, Community Member pgSCNT• _N�;�� _ � A[3S't'AIN:-��- Also Present: VF.RIFIED BY: Anthony Hernandez, Senior Financial Analy�tjrigina!on File with City Cler ' Of°lice Richard Mogensen, Desert Willow Niamh Ortega, Recording Secretary Veronica Tapia, RDA Accountant Derek White, Desert Willow Jono Hildner, Public Member III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF SEPTEMBER 22, 2009 MOTION was made by Member Spiegel and seconded by Member Erwin to adopt and approve in their entirety the Minutes of the regu/ar meeting of the Pa/m Desert Audit, Investment and Finance Committee he/d on September 22, 2009. G:\Finance\Niamh Ortega\Investment Committee�2009\Minutes\Minutes �027�9.dOCX AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES OCTOBER 27. 2009 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR SEPTEMBER 2009 Member Jeffrey presented the report highlighted the following points: The book value of the City Portfolio for the period ended September 30, 2009 was approximately $232.4 million. Interest earnings were approximately $322,000. Yield-to-maturity was approximately 1.74%. The book value of the Redevelopment Agency Portfolio for the period ended September 30, 2009 was approximately $265.9 million. Interest earnings were approximately $227,000. Yield-to-maturity was approximately 0.95%. Mr. Gibson reported that the Request for Proposals for banking services is in process. It should be ready for review by the Committee in December. B. LOCAL AGENCY INVESTMENT FUND (L A I.F.) ACCOUNT STATEMENTS FOR SEPTEMBER 2009 The report was received and filed. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR SEPTEMBER 2009 The report was received and filed. D. CITY FINANCIAL REPORTS FOR AUGUST AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR SEPTEMBER 2009 Mr. Gibson, responding to questions posed at the last meeting, reported that $315,300 paid out for vacation and sick time for early retirements. There was a difference of$781,000 in expenditures between last year and this year. For the month of September 2009, TOT is slightly down due to lower occupancy at larger properties. $1.9 million was transferred in as a result of the Energy bond issuance. Expenditures are similar to last year, and the County is remaining current on their billing. Mr. Gibson also reported that the audit is expected to be complete in November, and will come before the Committee in January 2010 for review. Ms. Tapia reported that RDA revenues were $580,000 and expenditures were approximately $14 million. Tax increment typically is received in January, and revenues and expenses begin to balance out. Mr. McCarthy reviewed the recent developments surrounding the ERAF take at the state level and highlighted that Palm Desert's RDA is earmarking $30 million 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES OCTOBER 27 2009 that would be paid to the State over the next two years in the event that the State is successful in its current suit. RDA has also taken an action to allow the financing of approximately $18 million out of the Housing funds should we be required to pay the funds to the State. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR SEPTEMBER 2009 Staff will be advertising available space to non-profit organizations to determine if there is any interest. The State Water Resources Board remodeling is under review, and will be going to Council for approval in December 2009. Ms. Loog pointed out that the variance on utilities was quite high, and Mr. Espinoza indicated that it would be averaged out over the year. The budget indicates an average rate rather than a month-by-month budget. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR SEPTEMBER 2009 Mr. White reported that revenues for September were $315,000 versus a budget of $327,000, compared to prior year of $433,000. The Mountain View renovation is the main contributing factor to the decline as this occurred throughout the month of September. It is now complete and back in play. Payroll was $332,000 versus a budget of $333,000, and there was $25,000 savings over prior year levels. Operating expenses were $203,000 versus a budget of $258,000 and prior year of $223,000. Overall, budget is ahead of pace by $102,000. Catering is up for September, and will hopefully improve further in the future. Dining, however, is down substantially since people are simply not spending the same amount per person. G. QUARTERLY ACCOUNT STATEMENTS ON DEFERRED COMPENSATION PLANS AND RETIREMENT HEALTH SAVINGS PLAN The report was reviewed and placed on file. VI. CONTINUED BUSINESS None. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES OCTOBER 27. 2009 VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Staff is currently discussing options for Energy bonds, and Council has approved moving ahead with the validation process. VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:35 a.m. to the next regular meeting of November 24, 2009. �/ Niamh Ortega, R cording Secretary 4