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HomeMy WebLinkAboutMinutes Audit Investment and Finance Committee 11/24/09gz� 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 MEETING DATE /'/y-JC'(0 AVES:e)eInsco era 1IJ <<SA; J y /,( pES: A, )4c ABSENT: ti M t— ABSTAIN: t nii i`_ VFRIFIFD BY: k 1) bra Original on File with City Clerk 011ice 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, 2 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. i Niamh Ortega Recording Secretary 3