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MINUTES
REGULAR MEETING OF THE PALM DESERT
AUDIT, INVESTMENT, AND FINANCE COMMITTEE
Tuesday, November 24, 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:
Luis Espinoza, Asst. Finance Director
Thomas Jeffrey, Deputy City Treasurer
Robert A. Spiegel, Mayor
Cindy Finerty, Mayor Pro-Tempore
John Wohlmuth, City Manager
Justin McCarthy, ACM/Redevelopment
David Erwin, City Attorney
Stephanie Loog, Community Member
Everett Wood, Community Member
Also Present:
Anthony Hernandez, Senior Financial Anal
Niamh Ortega, Recording Secretary
Veronica Tapia, RDA Accountant
Derek White, Desert Willow
Jono Hildner, Public Member
III. ORAL COMMUNICATIONS
Absent:
Paul Gibson, Finance Director
James Walker, Community Member
CITY COUNCIL ACTION
APPROVED
RECEIVED
DENIED)
OTHER
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Mayor Spiegel reported that he had attended the most recent Chamber of Commerce
board meeting, and business owners reported that business was improving.
IV. APPROVAL OF MINUTES
A. MINUTES OF THE REGULAR MEETING OF OCTOBER 27. 2009
MOTION was made by Member Spiegel 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 October 27,
2009.
G:\Finance\Niamh Ortega\Investment Committee\2009\Minutes\Minutes 112209.docx
AUDIT, INVESTMENT, AND FINANCE COMMITTEE
MINUTES NOVEMBER 24. 2009
V. NEW BUSINESS
A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND
SUMMARY OF CASH REPORTS FOR OCTOBER 2009
Member Jeffrey presented the report highlighted the following points:
The book value of the City Portfolio for the period ended October 31, 2009 was
approximately $239.2 million. Interest earnings were approximately $326,000.
Yield -to -maturity was approximately 1.69%.
The book value of the Redevelopment Agency Portfolio for the period ended
October 31, 2009 was approximately $226 million. Interest earnings were
approximately $186,000. Yield -to -maturity was approximately 0.96%.
B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.I ACCOUNT STATEMENTS
FOR OCTOBER 2009
The report was received and filed.
C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.I ACCOUNT
STATEMENTS FOR OCTOBER 2009
The report was received and filed.
D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL
REPORTS FOR OCTOBER 2009
Responding to question, Mr. Espinoza reported that actual expenses were more
than budgeted due to the timing of resurfacing projects underway on Fred Waring
and Country Club. He also communicated that a report would be going to Council
at the December meeting discussing the projected revenues for the fiscal year. A
shortfall of approximately $2.5 million is expected for the current year. The
Committee discussed the funds expected from the State and County as well as
the potential shortfall at length, acknowledging that it is difficult to determine what
the true shortfall will be with so many variables involved.
Ms. Tapia reported that RDA revenues were $2.6 million and expenditures were
approximately $1.7 million. The majority of the revenues were catch-up tax
increment payments from the County from the prior year, and the expenditures
were pass -through payments that resulted from the tax increment.
E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR
OCTOBER 2009
Tenant improvements at the Department of Rehabilitation suite are almost
complete, and the State Water Resources Board remodeling will be going to
Council for approval in January 2010. Mr. Hernandez pointed out that the State
will reimburse for the tenant improvements. The complex is at 96% occupancy,
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AUDIT, INVESTMENT, AND FINANCE COMMITTEE
MINUTES NOVEMBER 24. 2009
and there has not been any interest from the community in leasing the available
space.
F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL
REPORTS FOR OCTOBER 2009
Mr. White reported that revenues for October were $752,000 versus a budget of
$819,000, compared to prior year of $763,000. Payroll was $342,000 versus a
budget of $352,000, compared to prior year of $348,000. Operating expenses
were $314,000 versus a budget of $381,000 and prior year of $365,000. Seed
costs were approximately $30,000 less than budgeted, and lower utility costs
were substantially lower. Overall, budget is ahead of pace by $122,000 for the
year to date.
VI. CONTINUED BUSINESS
None.
VII. OLD BUSINESS
A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE
Staff is working on the validation action for the loan program. The interest list for
the program is over 200 people, and a recent survey indicated that of 69
respondents, 32 people were interested in solar improvements and 29 were
interested in energy efficiency. Issues that were raised during the last process
regarding contractors submitting multiple applications are being addressed for
upcoming processes.
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 December 22, 2009.
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Niamh Ortega Recording Secretary
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