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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee May 24, 2011�T--� MINUTES REGULAR MEETING OF THE PALM DESERT _ AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, May 24, 2011 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:02 a.m. II. ROLL CALL Present - IT! Absent: Jean Benson, Mayor Patricia Kent, Committee Member David Erwin, City Attorney Luis Espinoza, Asst. Finance Director Paul Gibson, Finance Director Thomas Jeffrey, Deputy City Treasurer Justin McCarthy, ACM/Redevelopment Robert A. Spiegel, Mayor Pro Tempore Susan Marie Weber, Committee Member (10:04 a.m.) John Wohlmuth, City Manager (10:06 a.m.) Also Present: Anthony Hernandez, Senior Financial Analyst Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary Veronica Tapia, Redevelopment Accountant Derek White, Desert Willow Golf Resort ORAL COMMUNICATIONS None. APPROVAL OF MINUTES CITY COUNCIL ACTION APPROVED _ IF, DEND RECEIVED 7UTOTHER, MEETIN.0 DATE AYES: NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with City A. MINUTES OF THE REGULAR MEETING OF APRIL 26. 2011 's Office MOTION was made by Member Spiegel and seconded by Member Erwin 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 26, 2011. Motion unanimously approved. G:TinanceWiamh Ortega\Investment Committee\201 1 Winutes 052411.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 24, 2011 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR APRIL 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended April 30, 2011 was approximately $199 million. Interest earnings were approximately $109,000. Yield -to -maturity was approximately 0.76%. The book value of the Redevelopment Agency Portfolio for the period ended April 30, 2011 was approximately $225.9 million. Interest earnings were approximately $167,000. Yield -to -maturity was approximately 0.73%. Mr. Jeffrey highlighted that the third chart on Page 2 of the report reflects that the County pool is 40% of the portfolio, and clarified that this was within the context of the City only, and that the pool was 19% of the overall portfolio. MOTION was made by Member Spiegel and seconded by Member Erwin to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for April 2011 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR APRIL 2011 MOTION was made by Member Erwin seconded by Member Wohlmuth to receive and file the Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), Riverside County Investment Pool, and Rabobank Investment Pool statements for April 2011 as presented. Motion unanimously approved. C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR APRIL 2011 Chairman Gibson presented the City's report. He indicated that transient occupancy tax and sales tax is up, and property tax and interest earnings are down over last year. He also highlighted that the City received approximately $6,000 in franchise fees from Verizon for ROS service installed in a portion of the city. The fees were determined under the State Franchise Agreement, and this was the first payment received. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 24, 2011 MOTION was made by Member Erwin and seconded by Member Spiegel to receive and file the City financial report for April 2011 as presented. Motion unanimously approved. Ms. Tapia reviewed the revenues and expenses for the Redevelopment Agency. Cumulative revenue for April 2011 was $672,000, and expenditures were $2.8 million, mostly in the form of payments for the aquatic center. Year-to-date revenues were $58.6 million, and expenditures were $80.9 million. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Redevelopment Agency financial report for April 2011 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR APRIL 2011 The Water Resources Control Board tenant improvements are 100% complete. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Parkview Professional Office Buildings financial reports for April 2011 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR APRIL 2011 Mr. Mogensen reported that April was a successful month for Desert Willow. Approximately 500 rounds were lost due to high winds, and similar issues are being experienced for the current month; however, other clubs in the area have suffered much greater losses for the same period, so Desert Willow is doing relatively well considering the circumstances. Mr. Mogensen reviewed the reports that were distributed as part of the agenda packet, and summarized that overall year-to-date figures were $692,000 compared to a budget of $389,000. He concluded that May will be a more challenging month than April, but he remains optimistic for a successful month. MOTION was made by Member Erwin and seconded by Member Wohimuth to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for April 2011 as presented. Motion unanimously approved. VI. CONTINUED BUSINESS None. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 24. 2011 VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. Vill. INFORMATIONAL ITEMS Mr. Gibson informed the Committee that there would be some changes made to fund assignments based on revisions to GASB 54. He highlighted those funds and explained how the funds will be designated based on the revised definitions. It will be presented for Council action prior to June 30, 2011. There was some discussion relative to meeting on an alternative date in September. If this is necessary, it will be presented to the Committee at the July meeting for approval. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:23 a.m. to the next scheduled meeting of June 28, 2011. 0" Q � i Niamh Ortega, Rec ding Secretary 2